April 27, 2024

Archives for March 2022

Biden Invokes Defense Production Act to Boost Critical Mineral Supply

The United States imported more than half its supply of at least 46 minerals in 2020, and all of its supply of 17 of them, according to the U.S. Geological Survey. Many of the materials come from China, which leads the world in lithium ion battery manufacturing and has been known to shut off exports of certain products in times of political tensions, including rare earth minerals.

The Biden administration has warned that a dependence on foreign materials poses a threat to America’s security, and promised to expand domestic supplies of semiconductors, batteries and pharmaceuticals, among other goods. While the United States does have some unexplored deposits of nickel, cobalt and other crucial minerals and metals, developing mines and processing sites can take many years. Two-thirds of the world’s entire production of cobalt is in the Democratic Republic of Congo, where Chinese companies owned or financed 15 of the 19 largest mines as of 2020.

But bipartisan support for expanding American mining and processing of battery components has grown in recent years. In a March 11 letter to Mr. Biden, senators including Lisa Murkowski, a Republican of Alaska, and Joe Manchin III, a Democrat of West Virginia, proposed invoking the Defense Production Act to accelerate domestic production of the components of lithium-ion battery materials, particularly graphite, manganese, cobalt, nickel and lithium.

Todd M. Malan, the head of climate strategy for Talon Metals, which is developing a nickel mine in Minnesota, said Washington had reached a bipartisan consensus around providing more support for the domestic mining of electric vehicle battery minerals “driven by concern about reliance on Russia and China for battery materials as well as the energy transition imperative.”

But some domestic developments may face opposition from environmentalists in Mr. Biden’s own party.

Representative Raúl M. Grijalva, an Arizona Democrat who chairs the Natural Resources Committee, said in a statement Wednesday that mining companies were “making opportunistic pleas to advance a decades-old mining agenda that lets polluters off the hook and leaves Americans suffering the consequences.”

“Fast-tracking mining under antiquated standards that put our public health, wilderness, and sacred sites at risk of permanent damage just isn’t the answer,” he added.

Dionne Searcey contributed reporting.

Article source: https://www.nytimes.com/2022/03/31/business/economy/biden-minerals-defense-production-act.html

The Personal Consumption Expenditure Index Climbed 6.4 Percent in February

Companies are trying to navigate the complicated moment, gauging whether input cost increases will continue for a second year — and whether and how to pass them on to consumers.

Chewy, the pet goods retailer, recently signed a new freight contract that will cost it more this year, and in the final quarter of 2021 it also faced higher labor costs. But it is hoping that those trends do not last, or that it can offset the climbing expenses through efficiencies.

“As we close the book on 2021 and move forward in 2022, we are already seeing improvements in labor availability, inbound shipping costs and pricing, while out-of-stock levels and outbound shipping costs remain elevated,” Sumit Singh, Chewy’s chief executive, said on an earnings call this week. “Ultimately, we believe most of these challenges are not permanent in nature.”

Other companies have been expecting consumer demand to face some challenges this year, as households get past the government stimulus checks that boosted their spending ability in 2021.

“For our business in the industry we’re in, the stimulus checks are a short-term impact from last year,” Jon Barker, chief executive at Sportsman’s Warehouse, said on an earnings call this week. “And while fuel costs and inflation will certainly have an impact on disposable income for our consumer, we actually believe and are confident that our industry is more — is able to weather those changes better than most.”

Thursday’s report showed that consumer spending fell in February when adjusted for inflation, pulling back by 0.4 percent from January, a slightly bigger decline than economists expected. It is still rising before price increases are accounted for, though. Personal income also continued to rise before being adjusted for inflation, as wage growth takes over where government help is leaving off.

Household balance sheets are still in decent shape even as some support payments lapse. Many people paid down debt during the pandemic, and others are seeing pay gains that could help them sustain spending in the months ahead. Households across the income spectrum built up savings during the pandemic, partly thanks to the government relief payments.

Article source: https://www.nytimes.com/2022/03/31/business/economy/pce-inflation-february.html

Soaring Cost of Diesel Ripples Through the Global Economy

“It’s not just the fuel we put into pickups, tractors, combines,” said Chris Edgington, an Iowa corn farmer. “It’s a cost of transporting those goods to the farm, it’s a cost of transporting them away.”

At the start of the pandemic, diesel prices dropped steeply as the global economy slowed, factories shut down and stores closed. But beginning in early 2021 there was a sharp rebound as truck and rail traffic resumed. Prices, which increased pretty steadily last year, picked up momentum in January as Russia massed troops near Ukraine and then invaded. Low stockpiles of the fuel, particularly in Europe, have added to the price pressures.

“Diesel is the most sensitive, the most cyclical product in the oil industry,” said Hendrik Mahlkow, a researcher at the Kiel Institute for the World Economy in Germany who has studied commodity prices. “Rising prices will distribute through the whole value chain.”

Refineries, which turn crude oil into fuels that can be used in cars and trucks, have tried to play catch-up on both sides of the Atlantic in recent months. But they have not been able to make more diesel, gasoline and jet fuel fast enough. That is in part because refineries have closed in Europe and North America in recent years and more of the world’s fuels are being refined in Asia and the Middle East.

Since January 2019, refinery capacity has declined 5 percent in the United States and 6 percent in Europe, according to Turner, Mason Company, a consulting firm in Dallas.

Europe is particularly vulnerable because it relies on Russia for as much as 10 percent of its diesel. Europe’s own diesel production is also dependent on Russia, which is a big supplier of crude oil to the continent. Some analysts say Europe may have to begin rationing diesel as early as next month unless the shortage eases.

Article source: https://www.nytimes.com/2022/03/31/business/economy/diesel-economy-russia-ukraine.html

High Inflation Could Persist as Wages Continue to Rise

Outright declines in goods prices are not guaranteed. Take cars: Rapid price growth in new and used autos was a big driver of inflation last year, and many economists expect those prices to dip in 2022. But Jonathan Smoke, the chief economist at Cox Automotive, said continued shortages mean prices for new cars are likely to continue rising, and issues with new car supply could spill over to blunt the expected decline in used car costs.

And services inflation is now also coming in fast. It ran at 4.6 percent in the year through January, the quickest pace since 1989, and it has been posting large monthly gains since autumn. That is enough to keep inflation above the Federal Reserve’s 2 percent goal even if product prices stop accelerating.

While goods have taken up a bigger chunk of household budgets in recent months than they did before the pandemic, Americans still spend nearly twice as much on services as on goods overall.

“You don’t need a lot of extra services inflation to make up for your lost goods inflation,” Mr. Furman said.

Restaurants, hotels and other discretionary services aren’t the only places where persistent demand could run up against limited supply, Mr. Furman argued. Many nonurgent health care services saw a decline in demand during the pandemic and are now experiencing a rebound amid a shortage of nurses and other skilled workers.

Rent — which is the biggest monthly expense for many families and plays a big role in determining inflation overall — has also been rising at a rapid clip. In cities such as Tampa, Fla., Spokane, Wash., and Knoxville, Tenn., listed rents were up by 30 percent or more in the fall from a year earlier, according to data from Apartment List.

Igor Popov, the chief economist at Apartment List, said the breakneck pace of new rent increases is unlikely to repeat itself this year. But many rents will be resetting at higher market rates this spring and summer, he said, adding that they were likely to continue rising as long as wages did the same.

Article source: https://www.nytimes.com/2022/03/31/business/economy/inflation-rising-wages.html

Cheng Lei, Australian Journalist, Is Tried by China

Despite their economic interdependence, the two countries have been at loggerheads over regional security, Australia’s ban on the use of Chinese technology for 5G telephone networks, and Australian legislation aimed at curbing China’s efforts to influence the country’s domestic politics.

China has frozen high-level government contacts with Australia and put informal sanctions on some of the country’s goods, including wine and barley. Australia’s center-right prime minister, Scott Morrison, who faces an election within months, has accused opposition politicians of selling out to Beijing, drawing rebukes from former and current Australian intelligence officials.

In June 2020, officers from the Australian Security Intelligence Organization searched the homes of four Chinese journalists based in Australia. Two Australian journalists who were working in China left there in haste a few months later after state security officers questioned them, including about Ms. Cheng.

Ms. Cheng’s friends have doubted that she was detained because of these broader issues, though the tensions may now weaken Australia’s leverage over her fate.

As a business news host for CGTN, or China Global Television News, China’s main international broadcaster, she promoted herself as a bridge between the two countries and was uninterested in gossiping about politics, said Rowan Callick, an Australian journalist formerly based in Beijing.

Article source: https://www.nytimes.com/2022/03/31/world/asia/china-cheng-lei-australia.html

Australian Journalist Who Worked for Chinese Media Stands Trial in Beijing

Despite their economic interdependence, the two countries have been at loggerheads over regional security, Australia’s ban on the use of Chinese technology for 5G telephone networks, and Australian legislation aimed at curbing China’s efforts to influence the country’s domestic politics.

China has frozen high-level government contacts with Australia and put informal sanctions on some of the country’s goods, including wine and barley. Australia’s center-right prime minister, Scott Morrison, who faces an election within months, has accused opposition politicians of selling out to Beijing, drawing rebukes from former and current Australian intelligence officials.

In June 2020, officers from the Australian Security Intelligence Organization searched the homes of four Chinese journalists based in Australia. Two Australian journalists who were working in China left there in haste a few months later after state security officers questioned them, including about Ms. Cheng.

Ms. Cheng’s friends have doubted that she was detained because of these broader issues, though the tensions may now weaken Australia’s leverage over her fate.

As a business news host for CGTN, or China Global Television News, China’s main international broadcaster, she promoted herself as a bridge between the two countries and was uninterested in gossiping about politics, said Rowan Callick, an Australian journalist formerly based in Beijing.

Article source: https://www.nytimes.com/2022/03/31/world/asia/china-cheng-lei-australia.html

Bruce Willis Has Aphasia and Is ‘Stepping Away’ From His Career

In response to Rumer Willis’s Instagram post, Sarah Paulson, who worked with Bruce Willis in “Glass,” Shyamalan’s 2019 sci-fi thriller, said: “He was such an incredible acting partner to me, and is the loveliest, most gentle hilarious man. He reigns supreme in my book.” (In her Times review of “Glass,” Manohla Dargis wrote, “[Samuel L.] Jackson and especially Willis remind you again of how fine they can be when asked for more than booming shtick and smirk.”)

In response to Moore’s Instagram post, Jamie Lee Curtis wrote: “Grace and guts! Love to you all!”; and Rita Wilson wrote: “My heart goes out to Bruce, and all of the family. So thankful you shared this with us. Keeping you all in our prayers.”

On Twitter, Gabrielle Giffords, a gun control advocate and former congresswoman, wrote: “I’m thinking of Bruce Willis and his family today. Aphasia makes it hard for me to find the right words. It can be lonely and isolating.”

The actor Seth Green tweeted, “I have so much love for Bruce Willis, and am grateful for every character he’s given us.”

And the actor-director Kevin Smith wrote, “Long before any of the ‘Cop Out’ stuff, I was a big Bruce Willis fan — so this is really heartbreaking to read,” referring to his 2010 movie that Willis starred in. “He loved to act and sing and the loss of that has to be devastating for him,” Smith said. He said he felt badly about his “petty complaints from 2010.” In 2011, on the Marc Maron podcast, Smith had complained openly about working with Willis, saying that working with the action star was “soul crushing.”

Thought of primarily as a movie star, Willis has received more accolades for his work on television: For his role as the private detective David Addison (played opposite Cybill Shepherd) in “Moonlighting” — an ABC comedy-drama-romance that ran from 1985 to 1989 — he earned three Golden Globe nominations, winning one, and two lead actor Emmy nominations, winning one.

Article source: https://www.nytimes.com/2022/03/30/movies/bruce-willis-aphasia.html

L.G.B.T.Q. Romance Is Booming

The cover of another, “The Perks of Loving a Wallflower,” looks very much like a typical historical romance novel — period outfits, elaborate hairstyles — until it doesn’t. The two people wrapped in each other’s arms are women.

Photographs for the cover were taken in New York City in December 2020, a difficult time to take pictures of models cuddling, but executives at Forever, the book’s publisher, felt they had to find a way.

“There’s not a lot of stock, believe it or not, for lesbian regency romance,” said Leah Hultenschmidt, the book’s editor.

Forever hired two models who were a couple in real life so they could nuzzle for the camera without violating Covid safety protocols. The book was sold widely, not only in bookstores but also in pharmacies, grocery stores and Walmart.

One book that is often cited by booksellers and publishing executives as a turning point for the genre is “Red, White Royal Blue,” by Casey McQuiston. A love story about the Prince of Wales and the American president’s son, it was published in 2019 by St. Martin’s Griffin, with an initial print run of 15,000 copies. Its publisher said it now has more than 1.3 million copies in print across formats.

McQuiston, who uses they/them pronouns, said their books are written for and about queer people, but they have also heard a lot of, “Oh, my mom and her book club are reading that.”

“When a book has the ability to cross over and be embraced by mainstream readers and be more pop culture-friendly, I think that is really important,” they said. “It’s sad to say, but there is still this level of humanization that we need.”

Article source: https://www.nytimes.com/2022/03/30/books/lgbtq-romance-novels.html

Long Relegated to Back Shelves, L.G.B.T.Q. Romance Is Booming

The cover of another, “The Perks of Loving a Wallflower,” looks very much like a typical historical romance novel — period outfits, elaborate hairstyles — until it doesn’t. The two people wrapped in each other’s arms are women.

Photographs for the cover were taken in New York City in December 2020, a difficult time to take pictures of models cuddling, but executives at Forever, the book’s publisher, felt they had to find a way.

“There’s not a lot of stock, believe it or not, for lesbian regency romance,” said Leah Hultenschmidt, the book’s editor.

Forever hired two models who were a couple in real life so they could nuzzle for the camera without violating Covid safety protocols. The book was sold widely, not only in bookstores but also in pharmacies, grocery stores and Walmart.

One book that is often cited by booksellers and publishing executives as a turning point for the genre is “Red, White Royal Blue,” by Casey McQuiston. A love story about the Prince of Wales and the American president’s son, it was published in 2019 by St. Martin’s Griffin, with an initial print run of 15,000 copies. Its publisher said it now has more than 1.3 million copies in print across formats.

McQuiston, who uses they/them pronouns, said their books are written for and about queer people, but they have also heard a lot of, “Oh, my mom and her book club are reading that.”

“When a book has the ability to cross over and be embraced by mainstream readers and be more pop culture-friendly, I think that is really important,” they said. “It’s sad to say, but there is still this level of humanization that we need.”

Article source: https://www.nytimes.com/2022/03/30/books/lgbtq-romance-novels.html

How War in Ukraine Roiled Facebook and Instagram

This month, Reuters reported on Meta’s shifts with a headline that suggested that posts calling for violence against all Russians would be tolerated. In response, Russian authorities labeled Meta’s activities as “extremist.”

Shortly thereafter, Meta reversed course and said it would not let its users call for the deaths of heads of state.

“Circumstances in Ukraine are fast moving,” Mr. Clegg wrote in an internal memo that was reviewed by The Times and first reported by Bloomberg. “We try to think through all the consequences, and we keep our guidance under constant review because the context is always evolving.”

Meta amended other policies. This month, it made a temporary exception to its hate speech guidelines so users could post about the “removal of Russians” and “explicit exclusion against Russians” in 12 Eastern European countries, according to internal documents. But within a week, Meta tweaked the rule to note that it should be applied only to users in Ukraine.

The constant adjustments left moderators who oversee users in Central and Eastern European countries confused, the six people with knowledge of the situation said.

The policy changes were onerous because moderators were generally given less than 90 seconds to decide on whether images of dead bodies, videos of limbs being blown off, or outright calls to violence violated Meta’s rules, they said. In some instances, they added, moderators were shown posts about the war in Chechen, Kazakh or Kyrgyz, despite not knowing those languages.

Ms. Lever declined to comment on whether Meta had hired content moderators who specialize in those languages.

Article source: https://www.nytimes.com/2022/03/30/technology/ukraine-russia-facebook-instagram.html