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📝 Good afternoon and welcome to Notes on the News. Here’s what you should know today, May 27: The Ukraine war further snarls the U.S.’s baby-formula shortage, Americans spent more in April but drew heavily on savings, and a Chinese investor sees “Top Gun: Maverick” as the danger zone. Notes on the News is getting a new name and look later this month. We’ll still land in your inbox at the same time to catch you up on the biggest headlines—and help you make sense of them. We’ll also bring you more ways to connect with our journalism, advice for making better decisions, an easier-to-read format and a surprise or two. We can’t wait to hear what you think! |
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| A Uvalde police commander incorrectly thought no children were at risk in the Robb Elementary classroom where the gunman had locked himself, according to the director of the Texas Department of Public Safety. PHOTO: MARCO BELLO/REUTERS |
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2. The war in Ukraine is limiting supplies of a key baby-formula ingredient. Russia’s blockade of Ukrainian ports has curbed shipments of sunflower-seed oil, hampering efforts to boost production to alleviate the U.S. infant-formula shortage. Many formula manufacturers use sunflower-seed oil to add critical fats to products. Ukraine has been the No. 1 exporter of the oil, according to the USDA. Finding alternative sources or rewriting recipes to replace sunflower oil will take time, industry experts said. Enfamil maker Reckitt shops its baby-formula unit amid the shortage. |
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4. Uber and Lyft are making changes, due to pressures from investors unhappy about hefty losses, fewer riders and a driver shortage. The ride-hailing giants are cutting costs, bringing back cheaper rides and looking for new ways to woo drivers. To deepen its pool of on-demand drivers, Uber has joined forces with its once-sworn enemy—taxis—while Lyft said it would hand out bigger bonuses. |
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| Firefighters at a factory in Bakhmut, a city hit by shelling in eastern Ukraine. PHOTO: ARIS MESSINIS/AGENCE FRANCE-PRESSE/GETTY IMAGES |
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Follow the latest developments here. The Russian military made fresh gains in fierce fighting in eastern Ukraine’s Donbas region, engaging in street battles in the city of Severodonetsk. Ukrainian troops have withdrawn from Lyman, the latest city to fall to Russian forces in recent days, Ukrainian officials said. The Russian advances, if they continue, could encircle a large grouping of Ukrainian forces, which would be a major defeat for Kyiv. Meanwhile, Ukraine is calling on Western allies to urgently supply longer-range multiple-launch rocket systems, or MLRS batteries, to help defend Donbas against Moscow’s firepower. Little-known commodity traders help Russia sell oil. The ruble’s rally stumbles after an interest-rate cut. This is how Misha, a 19-year-old with Down syndrome, escaped Ukraine. Summits involving the U.S. and Russia are getting awkward. |
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25+ — The number of companies that merged with SPACs between 2020 and 2021 and are now warning they may go bust, out of 232, according to research firm Audit Analytics. The percentage is roughly double that for companies that listed through more-traditional IPOs. 51% — The increase in the average price for a gallon of regular unleaded gas in the U.S. between yesterday and a year ago. $4.60 is a new all-time high. Meanwhile, demand for gasoline in mid-May fell to one of its lowest levels for this time of year in nearly a decade, according to the U.S. Energy Information Administration. Some Americans are changing their driving habits ahead of Memorial Day weekend and what’s typically the peak summer driving season. |
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| What Everyone Wants To Know |
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| The filmmakers behind ‘Top Gun: Maverick’ sought to avoid political themes, sending Tom Cruise’s fighter-pilot character on a combat mission over an unnamed country. PHOTO: PARAMOUNT PICTURES |
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“Top Gun: Maverick” feels the need, the need for speed—but not for Tencent Holdings. The Chinese tech firm backed out of a 2019 deal to co-finance the $170 million Paramount Pictures production after growing concern that Communist Party officials in Beijing would be angry about the company’s affiliation with a movie celebrating the American military, according to people familiar with the matter. The sequel to the 1986 Tom Cruise classic “Top Gun” once symbolized deepening ties between China and Hollywood. But more recently, as U.S.-Chinese relations have deteriorated, Tencent’s association with a pro-American story became radioactive. The new movie hits theaters this weekend. |
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The stock market moved higher today. The S&P 500 rose, extending a recent stretch of gains and snapping a weekslong losing streak. The broad-market benchmark was up 2.5%. The Dow Jones Industrial Average added 576 points, or about 1.8%, and the Nasdaq Composite climbed 3.3%, with gains accelerating through the afternoon. The rally builds on days of gains and marks a sharp reversal from a run of weekly losses that had the S&P 500 teetering on the edge of bear-market territory. A string of earnings reports and economic data, including signs of strong consumer spending and a slightly eased April inflation reading, lifted investors’ optimism. Bets against U.S. Treasurys rake in gains as the Fed raises rates. This is how to weather this stock market storm. |
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| Two Chrysler Town & Country minivans on a road trip in North Dakota. PHOTO: TAMMY CAREY |
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Go check out today’s hottest set of wheels—the minivan: No, not Mini Coopers and not the camper conversions beloved by #vanlife enthusiasts. We’re talking about what the dad-jokes-and-applesauce-pouches set likes to drive. The multipurpose family vehicle is en vogue again (Even Kim Kardashian has rolled up in one.), and prices are through the sunroof. Kid-free folks like the flexibility of the seating set-up, sliding doors and ample space for hauling anything from camping equipment to tools. And for drivers looking to trim surging expenses at the pump, some minivans now come in hybrid-electric models. |
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Today's newsletter was curated by Zlati Meyer in collaboration with publishing editor Rich Bellis in New York. We hope you’re enjoying Notes on the News. If you would prefer to receive a different newsletter, please check out all your options to keep up with the latest on markets, economics, politics and more. For members, we recommend The 10-Point. |
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