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When it comes to the Capitol riots, we see things differently

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When it comes to the Capitol riots, we see things differently


President Trump has left. A new administration is beginning. But if you’re a leader struggling with the backlash from the “candid conversations” you may have had about the January 6 riots at the U.S. Capitol and the events that led up to them, you may still be in the thick of things.

You’re not alone. 

“We have hit a nerve here,” says Michael Bush, CEO of Great Place To Work, and the author of a blog post about the riots called Don’t Call Yourself A For-All Leader if You Don’t Do These Things Today. In it, he offered good advice about how to discuss the riot with employees with an important framing: “To be honest, I’m still processing what I saw, but I’m certain of one thing: Now is not the time for leaders to be silent.” 

Evidently, people spoke right up.

His blog post saw record traffic, but also a record number of unsubscribes and angry e-mails—followed by phone calls—which were far more negative than the usual back-and-forth he receives around addressing systemic racism at the corporate level. He suspects the reaction was due to leadersin this case, mostly white and Republicanbeing asked to reevaluate the way they identify in a political context. “In my experience, they can say things about social justice… that you’re going to increase representation… and say all those things that seem bold and courageous at the time,” says Bush. “But really, you, your team, and your board have never actually had to do anything much differently. That makes this a third rail moment.”

He stands by his post and his advice but adds an important reminder. When talking about the riot and the events that led up to it, “describe what you saw on the Capitol steps and talk about the fact that you know that other people saw it differently.” Acknowledging that different perspective can lower the temperature and reestablish an element of empathy, even in a divided workplace.

“Transformational leaders are looking at how to influence others,” he says. “Unfortunately, many of them are trying to change other people’s minds, which, you know, is a tall order.” But the job now is to encourage people to stay in relationship with leadership, their peers, and the values that govern your work together. While this moment may be uniquely fraught because (mostly) white people are upset, the path forward is the same. Find ways to encourage deep introspection as a leadership practice. “Are you willing for a moment to question what you believe and why you believe it?” he says. “Are you willing to see how your lived experiences affect what you see and what you believe?” Then, the empathy piece. “Are you willing to think about the fact that other people you work with, based on their lived experiences, see the exact same thing differently?”

For leaders under siege: don’t give up, says Bush, but do think about ways you can continue to use the “see it differently” framing to stay the course. 

“You know, CEOs are magicians, all of them,” he says. “This is a gift they have. That’s why they’re in that seat. They can get people to believe in something that doesn’t even exist yet. No product or code has been created or written and they can talk about a vision and people believe it.”

The reasons why people believe the U.S. election was stolen is hard for him to parse, he says. Very hard. “I do know that they certainly believe it with no facts and data.” But, he says, lots of other things people believe are hard to parse and it’s time we dig back in. “Some people believe what they believe about women, people of color, and particularly Black people—that they’re lowering the bar in terms of talent in the workplace, that the achievement gaps are personal shortcomings, and some [people of color] feel like we have to accept this. We need to find a way to talk about all of this.” 

This is where a little executive magic can really help. “What is your vision for a workplace where people can examine what they believe and why they believe it with openness, curiosity, and respect?” he asks. “It’s a gift we all need right about now.”

Ellen McGirt
@ellmcgirt
Ellen.McGirt@fortune.com



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Coinbase’s near-term outlook is ‘still grim’, JPMorgan says, while BofA is more positive about firm’s ability to face crypto winter

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Coinbase's near-term outlook is 'still grim', JPMorgan says, while BofA is more positive about firm's ability to face crypto winter

Coinbase is well positioned to successfully navigate this crypto winter and take market share, Bank of America said in a research report Tuesday. It maintained its buy recommendation following the exchange’s second-quarter results.

The results warrant “a muted stock reaction,” the report said. Net revenue of $803 million was below the bank’s and consensus estimates, while its adjusted $151 million loss before interest, tax, depreciation and amortization was better than the street expected. Importantly, the company remains “cautiously optimistic” it can reach its goal of no more than $500 million of adjusted EBITDA loss for the full year, the report added.

Coinbase shares fell almost 8% in premarket trading to $80.74.

Bank of America notes that Coinbase had no counterparty exposure to the crypto insolvencies witnessed in the second quarter. The company also has a “history of no credit losses from financing activities, holds customer assets 1:1, and any lending activity of customer crypto is at the discretion of the customer, with 100%+ collateral required.” These rigorous risk-management practices will be a “positive long-term differentiator” for the stock, the bank said.

JPMorgan said Coinbase had endured another challenging quarter, while noting some positives.

Trading volume and revenue were down materially. Subscription revenue was also lower, but would have been much worse were it not for higher interest rates, it said in a research report Wednesday.

The company is taking steps on expense management, and in addition to the June headcount reductions, is scaling back marketing and pausing some product investments, the note said.

The bank says the company’s near-term outlook is “still grim,” noting that the exchange expects a continued decline in 3Q 2022 monthly transacting users (MTUs) and trading volumes, but says Coinbase could take more “cost actions” if crypto prices fall further.

JPMorgan is less optimistic than Bank of America about the company in the near term, saying pressure on revenue from falling crypto markets will have a negative impact on the stock price. Still, it sees positives including higher interest rates, from which the firm will generate revenue. It also sees opportunities for the exchange to grow its user base, leveraging almost $6 billion of cash. The surge in crypto prices in July, and the forthcoming Ethereum Merge are also seen as positive catalysts, it added.

The bank maintained its neutral rating on the stock and raised its price target to $64 from $61.

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Elon Musk sold $6.9B in Tesla stock in case he’s forced to buy Twitter

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Elon Musk sold $6.9B in Tesla stock in case he's forced to buy Twitter

Elon Musk sold $6.9 billion of his shares in Tesla Inc., the billionaire’s biggest sale on record, saying he needed cash in case he is forced to go ahead with his aborted deal to buy Twitter Inc.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk tweeted late Tuesday after the sales were disclosed in a series of regulatory filings. 

Asked by followers if he was done selling and would buy Tesla stock again if the $44 billion deal doesn’t close, Musk responded: “Yes.”

Tesla’s chief executive officer offloaded about 7.92 million shares on Aug. 5, according to the new filings. The sale comes just four months after the world’s richest person said he had no further plans to sell Tesla shares after disposing of $8.5 billion of stock in the wake of his initial offer to buy Twitter.  

Musk last month said he was terminating the agreement to buy the social network where he has more than 102 million followers and take it private, claiming the company has made “misleading representations” over the number of spam bots on the service. Twitter has since sued to force Musk to consummate the deal, and a trial in the Delaware Chancery Court has been set for October. 

In May, Musk dropped plans to partially fund the purchase with a margin loan tied to his Tesla stake and increased the size of the equity component of the deal to $33.5 billion. He had previously announced that he secured $7.1 billion of equity commitments from investors including billionaire Larry Ellison, Sequoia Capital, and Binance. 

“I’ll put the odds at 75% that he’s buying Twitter. I’m shocked,” said Gene Munster, a former technology analyst who’s now a managing partner at venture-capital firm Loup Ventures. “This is going to be a headwind for Tesla in the near term. In the long term, all that matters is deliveries and gross margin.”

At the weekend, Musk tweeted that if Twitter provided its method of sampling accounts to determine the number of bots and how they are confirmed to be real, “the deal should proceed on original terms.” 

Musk, 51, has now sold around $32 billion worth of stock in Tesla over the past 10 months. The disposals started in November after Musk, a prolific Twitter user, polled users of the platform on whether he should trim his stake. The purpose of the latest sales wasn’t immediately clear.  

Tesla shares have risen about 35% from recent lows reached in May, though are still down about 20% this year. 

With a $250.2 billion fortune, Musk is the world’s richest person, according to the Bloomberg Billionaires Index, but his wealth has fallen around $20 billion this year as Tesla shares declined.    

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The rent is too d*mn high for Gen Z: Younger generations are ‘squeezed the most’ by higher rents, BofA says

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The rent is too d*mn high for Gen Z: Younger generations are 'squeezed the most' by higher rents, BofA says

Most of Gen Z is too young to remember the 2010 New York gubernatorial candidate Jimmy McMillan.

But over a decade later, they would probably agree with his signature issue (and catchphrase): the rent is too damn high.

This July, median rent payments were 7.4% higher than during the same period last year, according to a Bank of America report released Tuesday. 

The national median price for a one-bedroom apartment has been hitting new highs nearly every month this summer. It was $1,450 for July, according to rental platform Zumper. In the country’s largest city, New York, average rent exceeded a shocking $5,000 a month for the first time ever in June. 

But inflation in the rental market hasn’t hit each generation equally, and no one is getting squeezed harder by the higher monthly payments as Gen Z. Those born after 1996 have seen their median rent payment go up 16% since last July, compared to just a 3% increase for Baby Boomers, BofA internal data shows. 
“Younger consumers are getting squeezed the most by higher rent inflation,” BofA wrote.

The great rent comeback

Early in the pandemic, landlords slashed rents and gave significant COVID discounts to entice tenants to stay instead of leaving urban areas. Once those deals started expiring in 2021, many landlords suddenly raised payments once again, sometimes asking for over double their pandemic value. 

Young people across the board have been hit hard, and rent burdens compared to age can be seen even within a single generation. Younger millennials had their median rent payment grow 11% from last year, while the median payment for older millennials rose 7%. Gen X experienced a 5% median rent increase, according to BofA. 

It’s not a surprise, then, that Gen Z feels so strapped for cash. The majority of young people, 61%, said they want to receive their wages daily instead of twice a week, a practice typically reserved for workers living paycheck to paycheck, according to a report from the Center for Generational Kinetics, which specializes in research across the generations. Rising rent inflation has even priced nearly a third of Gen Zers out of the apartment search altogether. Around 29% of them have resorted to living at home as a “long-term housing solution,” according to a June survey from personal finance company Credit Karma.

It’s no wonder—the rent really is too high.

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