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Chinese electric car company Nio hikes prices, suspends production

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Chinese electric car company Nio said over the weekend it is raising prices and suspending production as the latest Covid wave added to supply chain challenges.

The company’s Hong Kong-listed shares fell nearly 9% in Monday morning trading.

Nio announced Sunday it would raise the prices for its three SUVs — the ES8, ES6 and EC6 — by 10,000 yuan ($1,572), effective May 10. Prices for the recently launched ET7 and ET5 sedans would remain the same, according to CNBC.

Raw material prices, particularly those for batteries, have risen “too much” this year with no downward trend in sight for the near term, CEO William Li said as part of the announcement, according to a CNBC translation of the Chinese statement.

Volkswagen said Thursday its factories in Anting on the outskirts of Shanghai and Changchun in the northern province of Jilin remained closed through Friday, April 8.

China’s producer price index rose by 1.1% in March from a month earlier and gained 8.3% from a year ago, according to official figures released Monday. The year-on-year increase topped expectations for a 7.9% increase forecast by a Reuters poll.

“Originally [we] thought we could bear it, but now with this pandemic it’s even harder to bear,” he said. “We have no alternative but to raise prices. Please be understanding.”

A day earlier, on Saturday, Nio said it suspended production due to Covid-related restrictions in the last several weeks that halted production at suppliers’ factories.

“Due to the impact of Covid on Changchun and Hebei, the supply of some of our auto parts has been cut off since mid-March,” Li said. The company’s production “managed to rely on auto parts inventory until last week.”

He added that as a result of recent Covid outbreaks in Shanghai and Jiangsu province, many suppliers can’t provide parts either.

The company began deliveries of its first sedan, the ET7, in late March. A second sedan, the ET5, is set to begin deliveries in September.

In terms of monthly deliveries, Nio has lagged behind those of rival start-ups Xpeng — whose cars sell in a lower price range — and Li Auto — whose only model on the market comes with a fuel tank for charging the battery. All three companies delivered more cars in March than February despite supply chain challenges.

Nio was the last of the three start-ups to raise prices.

In March, Xpeng hiked prices for its cars by 10,100 yuan to 20,000 yuan, while Li Auto raised prices by 11,800 yuan. The moves follow Tesla and other electric car companies in the country that have raised prices in the last several weeks.

Covid-related disruptions have hit traditional automakers as well.

Twitter says Musk not joining its board, warns of ‘distractions ahead’

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Twitter Inc (TWTR.N) said on Sunday that Elon Musk rejected its offer to join the social media firm’s board, a dramatic turn in a week when the billionaire became its biggest shareholder, and it warned of more drama with “distractions ahead”.

Twitter Chief Executive Parag Agrawal said in a note posted to Twitter that the company’s board held many discussions with Musk, but he did not state the reason for the Tesla (TSLA.O) CEO’s decision, according to Reuters.

Agrawal said the planned appointment was due to become effective on Saturday, which would have prevented the world’s wealthiest person from becoming a beneficial owner of more than 14.9% of Twitter’s common stock.

Musk, a prolific user of Twitter, has made announcements about his company and a variety of issues to his more than 80 million followers on the social media platform.

Before taking a stake, Musk ran a Twitter poll asking users if they believed Twitter adheres to the principle of free speech.

“I believe this is for the best,” Agrawal said in the note. (https://bit.ly/3usFqhe) “There will be distractions ahead, but our goals and priorities remain unchanged.”

The announcement was so abrupt that Musk was still listed on Twitter’s board of directors on its website as of early Monday.

Twitter shares were down about 4% in premarket trading on Monday. They soared 27% on April 4 after Musk disclosed his stake but have since lost 7.5%.

Musk, whose net worth is pegged at $274 billion by Forbes, responded only with a face-with-hand-over-mouth emoticon on Twitter. Tesla did not immediately respond to an email sent to the company seeking a comment from the CEO.

Musk, who calls himself a free-speech absolutist and has been critical of Twitter, disclosed a 9.1% stake on April 4 and said he planned to bring about significant improvements at the social media platform.

The disclosure of the stake stoked widespread speculation on his intentions, ranging from a full takeover of the platform to taking an active role in corporate decisions.

News of Musk taking a board seat had some Twitter employees panicking over the future of the social media firm’s ability to moderate content, company sources told Reuters.

A day after becoming the largest shareholder, he launched another poll asking users if they wanted an edit button, a long-awaited feature on which Twitter has been working.

The Tesla boss also asked users in a poll if Twitter’s headquarters should be converted into a homeless shelter, a plan backed by Amazon.com Inc’s (AMZN.O) founder Jeff Bezos.

On Saturday, Musk suggested changes to the Twitter Blue premium subscription service, including slashing its price, banning advertising and giving an option to pay in the cryptocurrency dogecoin. 

BTS Take Over Las Vegas

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Fresh off their instant-classic Grammys performance, BTS took over Las Vegas’ Allegiant Stadium this weekend, the K-pop superstars’ first U.S. concerts of 2022. The shows were a continuation of BTS’ Permission to Dance On Stage residency in Los Angeles that filled up SoFi Stadium in November and December 2021, reported by Rolling Stone.

The group’s Sin City celebration will continue next weekend for two more sold-out gigs at Allegiant Stadium on April 15 and 16, currently the only two shows remaining on BTS’ North American touring schedule.

“Tonight is a very special night,” according to Billboard, said BTS member RM, addressing the crowd during the April 9 night encore. “Of course, we have a BTS concert with 50,000 ARMYs … I had my first American trip when I was 15. It was 2009 and the last stop was Las Vegas. But what caught my mind was the neon, the lights and the people’s faces, they all looked happy. So I was like, when I grow up, and if I earn some money, I’ll definitely come back and enjoy Las Vegas.”

He continued, “It feels really strange, because at 15 I was thinking about giving up the music and going back to studying again. I never thought that I would come back and [have] these amazing stays with all of my lovely friends. Thank you for my coming back to Las Vegas — making this, tonight, very special. And I want to tell the little RM from 15 years old, your life and your next Las Vegas will be amazing.”

Food prices soar to record levels on Ukraine war disruptions

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Prices for food commodities like grains and vegetable oils reached their highest levels ever last month largely because of Russia’s war in Ukraine and the “massive supply disruptions” it is causing, threatening millions of people in Africa, the Middle East and elsewhere with hunger and malnourishment, the United Nations said Friday.

The U.N. Food and Agriculture Organization said its Food Price Index, which tracks monthly changes in international prices for a basket of commodities, averaged 159.3 points last month, up 12.6% from February. As it is, the February index was the highest level since its inception in 1990.

FAO said the war in Ukraine was largely responsible for the 17.1% rise in the price of grains, including wheat and others like oats, barley and corn. Together, Russia and Ukraine account for around 30% and 20% of global wheat and corn exports, respectively.

While predictable given February’s steep rise, “this is really remarkable,” said Josef Schmidhuber, deputy director of FAO’s markets and trade division. “Clearly, these very high prices for food require urgent action.”

The biggest price increases were for vegetable oils: that price index rose 23.2%, driven by higher quotations for sunflower seed oil that is used for cooking. Ukraine is the world’s leading exporter of sunflower oil, and Russia is No. 2.

“There is, of course, a massive supply disruption, and that massive supply disruption from the Black Sea region has fueled prices for vegetable oil,” Schmidhuber told reporters in Geneva.

He said he couldn’t calculate how much the war was to blame for the record food prices, noting that poor weather conditions in the United States and China also were blamed for crop concerns. But he said “logistical factors” were playing a big role.

“Essentially, there are no exports through the Black Sea, and exports through the Baltics is practically also coming to an end,” he said.

In the Sahel region of Central and West Africa, the disruptions from the war have added to an already precarious food situation caused by COVID-19, conflicts, poor weather and other structural problems, said Sib Ollo, senior researcher for the World Food Program for West and Central Africa in Dakar, Senegal.

“There is a sharp deterioration of the food and nutrition security in the region,” he told reporters, saying 6 million children are malnourished and nearly 16 million people in urban areas are at risk of food insecurity.

Farmers, he said, were particularly worried that they would not be able to access fertilizers produced in the Black Sea region. Russia is a leading global exporter.

“The cost of fertilizers has increased by almost 30% in many places of this region due to the supply disruption that we see provoked by a crisis in Ukraine,” he said.

The World Food Program has appealed for $777 million to meet the needs of 22 million people in the Sahel region and Nigeria over six months, he said.

To address the needs of food-importing countries, the FAO was developing a proposal for a mechanism to alleviate the import costs for the poorest countries, Schmidhuber said. The proposal calls for eligible countries to commit to added investments in their own agricultural productivity to obtain import credits to help soften the blow.

Soaring food prices and disruption to supplies coming from Russia and Ukraine have threatened food shortages in countries in the Middle East, Africa and parts of Asia where many people already were not getting enough to eat.

Those nations rely on affordable supplies of wheat and other grains from the Black Sea region to feed millions of people who subsist on subsidized bread and bargain noodles, and they now face the possibility of further political instability.

Other large grain producers like the United States, Canada, France, Australia and Argentina are being closely watched to see if they can quickly ramp up production to fill in the gaps, but farmers face issues like climbing fuel and fertilizer costs exacerbated by the war, drought and supply chain disruptions.

Muslim students in Gwinnett ask for religious holiday off from school

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Noor Ali will face a choice on May 2. She can go to school or celebrate a religious holiday with her family and friends.

It’s a choice she wishes Muslim students in Georgia’s largest school district didn’t have to make.

Ali, a freshman in Gwinnett County Public Schools, is leading an effort to make Eid al-Fitr a districtwide day off beginning with the 2023-2024 calendar. The holiday marks the end of Ramadan, the Muslim holy month of fasting. It’s celebrated one to three days and marked by feasting, gifts and prayer, according to AJC.

Eid al-Fitr is expected to begin at sunset on May 1. Islamfollows a lunar calendar so the holiday doesn’t fall on the same date each year. Students may take the day off as an excused absence, but Ali said if the day coincides with a test or exam, many students will go to school.

She said she’s knowledgeable about Christian holidays and exchanges gifts with friends at Christmas. But there’s not as much awareness at school about Muslim days of significance.

“I feel so special when one of my friends tells me, ‘Eid Mubarak’ or ‘happy Eid,’” she said.

“I owe it to my friends, my little cousins, my school and the coming generation of Muslims all over the nation to at least try,” said Ali, a student at the Gwinnett School of Mathematics, Science, and Technology. She’s spoken to the school board and started an online petition, which has more than 8,000 signatures.

District staff will likely finalize that calendar later this year. Superintendent Calvin Watts said in an email the district tries to arrange the 180 days of school so the first semester ends before winter break and the second ends before Memorial Day.

“Any consideration of adding additional holidays to the calendar must be balanced with the knowledge that this action would result in days being added to the school calendar,” he said.

“To our knowledge, this is the first request in Georgia,” said Azka Mahmood, vice president of the Georgia Council on American-Islamic Relations. “This is the best way to go about this change — for it to be student led.

In recent years, school districts Detroit, New York City and elsewhere made Eid al-Fitr a holiday in response to appeals by the Muslim community.

“Whether or not schools have the capacity to give the days off for all minority religious holidays, they need to think about how to recognize these holidays in some way so teachers are aware and the community is aware,” said Linda K. Wertheimer, the Boston-area author of “Faith Ed: Teaching About Religion in an Age of Intolerance.”

Changing demographics are a factor. With an enrollment of 180,000 students, Gwinnett is one of the most diversedistricts in the state. “Our students come from 133 countries and speak 110 different languages,” the district’s website says.

The Public Religion Research Institute found that Gwinnett County has more religious diversity than average. In 2020, it estimated that 2% of the county’s more than 900,000 residents are Muslim.

Gwinnett school board chair Tarece Johnson, who is Jewish, said she’s supportive of efforts to promote equity and inclusion in the district calendar. She acknowledged that the constraints of the school calendar can make it difficult to add days off.

“New Year’s, Easter, Thanksgiving and Christmas are all holidays that are embedded in the American calendar,” Johnson said in a written statement. But Jewish, Hindu, Muslim and other holidays are not equally recognized.

“To truly achieve equity, we must meet the needs of our diverse population and also respect their major holidays,” she said.

Zoos across N. America are moving birds indoors to protect them from avian flu

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According to AP, Zoos across North America are moving their birds indoors and away from people and wildlife as they try to protect them from the highly contagious and potentially deadly avian influenza.

Penguins may be the only birds visitors to many zoos can see right now, because they already are kept inside and usually protected behind glass in their exhibits, making it harder for the bird flu to reach them.

Nearly 23 million chickens and turkeys have already been killed across the United States to limit the spread of the virus, and zoos are working hard to prevent any of their birds from meeting the same fate. It would be especially upsetting for zoos to have to kill any of the endangered or threatened species in their care.

The National Aviary in Pittsburgh — the nation’s largest —- is providing individual health checks for each of its roughly 500 birds. Many already live in large glass enclosures or outdoor habitats where they don’t have direct exposure to wildlife, said Dr. Pilar Fish, the aviary’s senior director of veterinary medicine and zoological advancement.

Kansas City Zoo CEO Sean Putney said he’s heard a few complaints from visitors, but most people seem OK with not getting to see some birds. “I think our guests understand that we have what’s in the best interests of the animals in mind when we make these decisions even though they can’t get to see them,” Putney said.

Officials emphasize that bird flu doesn’t jeopardize the safety of meat or eggs or represent a significant risk to human health. No infected birds are allowed into the food supply, and properly cooking poultry and eggs kills bacteria and viruses. No human cases have been found in the U.S., according to the Centers for Disease Control and Prevention.

“It would be extremely devastating,” said Maria Franke, who is the manager of welfare science at Toronto Zoo, which has less than two dozen Loggerhead Shrike songbirds that it’s breeding with the hope of reintroducing them into the wild. “We take amazing care and the welfare and well being of our animals is the utmost importance. There’s a lot of staff that has close connections with the animals that they care for here at the zoo.”

Toronto Zoo workers are adding roofs to some outdoor bird exhibits and double-checking the mesh surrounding enclosures to ensure it will keep wild birds out.

Birds shed the virus through their droppings and nasal discharge. Experts say it can be spread through contaminated equipment, clothing, boots and vehicles carrying supplies. Research has shown that small birds that squeeze into zoo exhibits or buildings can also spread the flu, and that mice can even track it inside.

So far, no outbreaks have been reported at zoos, but there have been wild birds found dead that had the flu. For example, a wild duck that died in a behind-the-scenes area of the Blank Park Zoo in Des Moines, Iowa, after tornadoes last month tested positive, zoo spokesman Ryan Bickel said.

Most of the steps zoos are taking are designed to prevent contact between wild birds and zoo animals. In some places, officials are requiring employees to change into clean boots and don protective gear before entering bird areas.

When bird flu cases are found in poultry, officials order the entire flock to be killed because the virus is so contagious. However, the U.S. Department of Agriculture has indicated that zoos might be able to avoid that by isolating infected birds and possibly euthanizing a small number of them.

Sarah Woodhouse, director of animal health at Omaha’s Henry Doorly Zoo and Aquarium, said she is optimistic after talking with state and federal regulators.

“They all agree that ordering us to depopulate a large part of our collection would be the absolute last-ditch effort. So they’re really interested in working with us to see what we can do to make sure that we’re not going to spread the disease while also being able to take care of our birds and not have to euthanize,” Woodhouse said.

Among the precautions zoos are taking is to keep birds in smaller groups so that if a case is found, only a few would be affected. The USDA and state veterinarians would make the final decision about which birds had to be killed.

“Euthanasia is really the only way to keep it from spreading,” said Luis Padilla, who is vice president of animal collections at the Saint Louis Zoo. “That’s why we have so many of these very proactive measures in place.”

Buying a home has become a lot more expensive. “Mortgage rates just hit 5%”

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Here’s a not-so-fun fact: The monthly mortgage payment it takes to buy the typical home in the U.S. is now up by a staggering 55% compared with the start of last year. That’s because of the dramatic rise in mortgage rates in recent weeks on top of price gains in the hot housing market.

The price shock is already having an effect on homebuyers.

Already, online searches for homes for sale are down 10% year over year, according to Daryl Fairweather, chief economist at real estate brokerage firm Redfin. The number of people going to look at homes is down a bit too.

“So we’re seeing some very early signs that buyers are responding to these higher mortgage rates,” Fairweather says.

“It’s pretty insane,” says Nick Cacciatore, who’s looking to buy a house in Tampa, Fla. “It’s very demoralizing.”

Back when Cacciatore was looking last summer, mortgage rates were under 3%. This week they’ve risen to over 5%. While that may not sound like much, it makes a huge difference when you’re buying something as costly as a house. And Cacciatore was looking for homes in the price range of $600,000.

“It added like $700 a month in monthly payments,” he says. “I mean, a ridiculous amount just from the interest rates.” And that doesn’t even factor in the big gain in prices over the past year as he’s been trying to buy a home.

Cacciatore is a lawyer starting a family practice. His fiancé is a veterinarian. So they have good jobs and some savings.

But in this superheated housing market, they kept getting outbid. Now with the higher mortgage rates, they’re looking at smaller, less expensive condos.

Some first-time buyers are giving up completely.

“It’s pretty much gotten them out of the market,” says Gabriela Raimander, a real estate agent in St. Petersburg, Fla. She says she was just talking to a client the other day. “She told me with watery eyes,” Raimander says, ” ‘I just can’t compete in this market. My dream of owning a house will have to be postponed or shelved altogether.’ “

Here’s how the numbers look for the typical home in the U.S.: The median price for a home has risen from $309,200 in December 2020 to $357,300.

Over that same period, interest rates rose from 2.67% to 5.08% this week. With a 10% down payment, that has pushed the monthly payment up from $1,124 to $1,742 — a whopping 55% increase. That’s upwards of $600 a month on that $357,000 home. That’s the impact of higher prices together with rising rates.

If you look at interest rates alone – the 2% rise in interest rates we’ve seen so far adds $115 to the monthly payment for every $100,000 you borrow on a 3o year loan.

It might not be a bad thing. Finally, the overheated housing market might cool down, bringing an end to the frenzied buying and bidding wars.

A slowdown in demand could help give homebuilders time to catch up. A record low supply of homes is a big reason prices have risen so much during the COVID-19 pandemic.

“I think home price appreciation will significantly cool off,” says Fairweather. “We’re going to have a year of pretty flat home price gains in real terms.”

That’s, of course, exactly what the Federal Reserve is trying to do for the broader economy by raising interest rates. The Fed wants to cool off rising prices and inflation by making it more expensive to borrow money.

Still, it’s unclear how much higher mortgage rates are going to go. Unlike rates on credit cards or other types of loans, mortgage rates move early and dramatically in anticipation of what the market expects, for example, the Federal Reserve to do with rates and its bond purchases over the next year. So mortgages could top out around this point, or they could keep rising.

Nike is planning to open a new technology center in Atlanta

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Global footwear brand Nike is planning to open a new technology center in Atlanta next year, officials announced Thursday.

According to AJC, the hub will be located in the West Midtown area and is set to open early next year, Nike’s Global Chief Digital Information Officer Ratnakar Lavu wrote in a post on LinkedIn.

Just last month, Walmart and Capitol One announced new tech hubs in Atlanta. West Coast tech giants like Microsoft and Airbnb have also announced expansion plans here in recent years.

Nike said its tech center will focus on logistics and supply chain, cybersecurity and artificial intelligence and machine learning.

Nike joins a growing list of international corporations bringing tech jobs to thecity. Lavu said Nike chose Atlanta because of its skilled and diverse tech talent, the region’s universities and “its strong connection to sport.”

The exact location of the office and the number of people it will employ have not yet been released. Some Atlanta-based job listings have already been posted, with employees slated to work remotely until the new center opens. Dr. Mona-Lisa Pinkney, a senior technology leader in Nike’s Corporate Information Security division, will lead the center.

South Korea’s incoming president faces backlash from BTS fans

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Unhappy fans of South Korean boy group BTS accused President-elect Yoon Suk-yeol of trying to use their idols to boost his ratings after his transition team hinted the group could be booked to perform at the inauguration ceremony next month, reported by Reuters.

As of Thursday, there were more than 1,800 posts on the transition committee’s website, all decrying the possibility of mixing pop with politics.

“Please do not politically exploit BTS. They do not exist to raise your approval ratings. They are global artists who promote Korean culture,” said one post.

A separate online petition with the presidential Blue House had garnered some 6,000 signatures since its launch on Wednesday. Many fans also took to the Weverse fandom platform posting comments under the hashtag “#NoBTSforInauguration.”

Yoon, a political novice, won the March 9 election by a record low margin of 0.7% of the votes, following a bitterly fought race that played out against a backcloth of deepening voter disillusion with South Korea’s polarised politics, growing inequality and runaway home prices.

With just a month to go before he takes office, Yoon’s low approval ratings could be a sign of troubles to come.

Despite losing the presidential election, the opposition Democrats will keep a solid majority in parliament until parliamentary elections in 2024, and Yoon must work with them to pass new legislation, budgets and appoint ministers.

A Realmeter survey released on Monday showed 48.8% of Koreans said Yoon would perform his presidential duties smoothly, while 47.6% said he would not do well. A Gallup poll last Friday put optimistic respondents much ahead with 55% to 41%, whereas other recent incoming presidents had ratings around 80%.

Yoon’s transition team said it was undecided over whether to invite BTS to play, having initial denied there was any such plan. The possibility of involving BTS was first disclosed during a radio interview on Tuesday with the official in charge of preparations for inauguration on May 10.

The seven-member group’s management, Bit Hit Music, said it has not formally received an invitation from Yoon’s office.

The outgoing president, Moon Jae-in took office in 2017 without a public ceremony, but popular singers and actors have provided entertainment at past presidential inaugurations.

In 2013, rapper Psy showed off his quirky horse-riding dance with his 2012 global smash hit “Gangnam Style” in front of some 70,000 spectators at Park Geun-hye’s swearing-in, and Michael Jackson attended the inauguration of Kim Dae-jung in 1998.

Russia: “It would have to ‘rebalance'” if Finland and Sweden join NATO

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Kremlin spokesperson Dmitry Peskov said on Thursday that if Finland and Sweden joined NATO then Russia would have to “rebalance the situation” with its own measures.

Russia’s invasion of Ukraine on Feb. 24 and the resulting fighting has caused the deaths of thousands of civilians and soldiers and the devastation of towns and settlements, as well as triggering an unprecedented barrage of coordinated Western sanctions.

According to Reuters, Moscow’s invasion of Ukraine, which it says aims among other things to degrade Ukraine’s military potential and prevent it becoming a bridgehead for a NATO attack, has prompted the two Nordic countries to consider joining the U.S.-led alliance.

If the two countries join, “we’ll have to make our western flank more sophisticated in terms of ensuring our security,” Peskov told Britain’s Sky News.

However, he said Russia would not see such a move as an existential threat, of the kind that might prompt it to consider using nuclear weapons.