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    What a work-from-home revolution means for commercial property

    OFFICES THESE days are promising to be temples of indulgence as much as places of work. One Vanderbilt, a new skyscraper in Manhattan, has unveiled a restaurant run by Daniel Boulud, a Michelin-starred chef. Amazon’s second headquarters in Arlington, Virginia, will include an amphitheatre for outdoor concerts. In London, 22 Bishopsgate is so dog-friendly that its receptionists issue passes to pets. The recently opened glass tower, which dominates the City of London’s skyline, also houses a climbing wall and a spa. As companies try to tempt workers back to the office, developers and investors are bullish, betting on new, green buildings with alluring amenities. But a huge uncertainty hangs over them: will enough people come? Even as vaccinations progress, workers have been slow to return. In early May only one in 20 buildings in America had occupancy levels above 10%, compared with a third in Europe and Africa, and roughly half of buildings in Asia, according to Freespace, a property-tech firm. With the return to work only just beginning, stimulus still in place and long leases yet to expire, the extent of any losses is worryingly hazy.Covid-19 has sharpened the demand for newer buildings with better facilities. JPMorgan Chase, a bank, will reduce its overall office space even as it is building the second-tallest skyscraper in Manhattan for its new headquarters. Across New York City, more than half of tours by prospective tenants are of high-quality “Grade A” offices, compared with 38% before the pandemic. This shift is happening alongside another disruption: the tilt towards greener workspaces. Energy efficiency and air-filtration systems are now seen as essential. Asset managers including BlackRock and Brookfield have pledged to get their assets to net-zero emissions by 2050 or sooner. A growing number of property firms, including British Land, are pledging that all new buildings will be net-zero carbon. The shift towards wellness and sustainability is no fad, insists James Goldsmith of AXA, an insurer. “This isn’t a social experiment. We’re investment managers—pension money is at stake.” Few in the industry, however, will be drawn on the reckoning they may face. The flight to quality is leaving older buildings looking undesirable just as remote working reduces the total demand for office space. Start with the risk that older buildings become stranded assets. Around half of Hong Kong’s premium stock and nearly two-thirds of commercial property in London were built more than 20 years ago. SL Green, Manhattan’s largest office landlord, says rents at its older properties are down by as much as 10%. Without substantially lower rents or improved ventilation, access to outdoor space or natural light, many will struggle to sell or attract tenants.Some dated offices are getting facelifts. Fabrix, a developer, is upgrading a 1960s building in London to include a rooftop forest and a glass-floored infinity pool. Others will be converted into lab and research space, or houses. When AIG, an insurer, moves to a recently renovated skyscraper in midtown Manhattan, part of its old headquarters, a tower block built in the 1980s, will be converted into flats. The City of London Corporation, which oversees the Square Mile, plans to turn vacant space into at least 1,500 new homes by 2030. Yet none of this can mask the fact that as remote working sticks, demand for office space should fall. Companies are beginning to rethink their property needs, with many downsizing or delaying new leases. Globally, more than 103m square feet of office space has already been vacated since the pandemic began, according to Cushman and Wakefield, a brokerage. That is 18% more lost floor space than during the financial crisis of 2007-09. Vacancy rates rose steeply over the past year, reaching 18% in the spring in America (see chart 1). The forecasts are gloomy. Roughly one in five offices in America will be empty in 2022, according to Moody’s Analytics, a consultancy. Rents in America are projected to fall 7.5% this year; those in San Francisco, by 15%.Puzzlingly, the gloom has not yet made its way into conventional measures of price and credit. Rent-collection rates for properties run by real-estate investment trusts (REITs) in North America remained above 90% for most of last year, according to S&P, a rating agency. They may have risen since then. The Economist has examined the collection rates for half a dozen of the world’s big listed office landlords: the average stands at 98% for the most recent quarter. Delinquency rates on commercial-mortgage-backed securities linked to shops and lodgings spiked last summer, and are still high, according to Trepp, a data provider. But those for offices have been unperturbed by the pandemic, at around 2%. The price paid for office space in a number of cities has also held up so far (see chart 2).A number of obfuscating factors cloud the picture, however. Generous stimulus might have postponed increases in delinquencies and distressed sales. And many firms have not made up their mind yet. No one yet knows how many workers will stay home, and for how many days of the week. For the most part, investors are avoiding rash transactions: buyers are wary of overpaying, while sellers are unwilling to take a loss in case the crisis turns out to be a blip. The volume of sales has shrunk, making prices a less reliable gauge of health.One way to penetrate the uncertainty is to look at more forward-looking measures of valuations. These suggest that office property has been dealt a blow by covid-19. A price index based on appraisals, calculated by Green Street, a research firm, is 9% below its pre-pandemic peak in America. The share prices of REITs that invest in offices remain around 15% below their level in early 2020 (see chart 3). Central banks are on the alert. The reliance of commercial property on debt financing means a downturn could have nasty reverberations across the financial system. Banks’ exposures are sizeable: the stock of loans made to the sector by American banks exceeds $2trn, or about a fifth of their total lending. In its latest Financial Stability Review the European Central Bank warned that subdued activity could be masking deeper trouble, and deemed financial-stability risks from property to be “elevated”. Many pension funds around the world have loaded up on commercial property in recent years as lower interest rates have forced them to seek returns from less liquid assets.The fate of the sector could well rest on vacancy rates. If they stay high, things could get hairy. In April the imf reckoned that a lasting increase in the vacancy rate of five percentage points would dent commercial-property valuations by 15% over five years. Fitch, another rating agency, estimates that the value of workplaces in America could fall by more than half if workers continue to work from home for three days a week. The long-term nature of property leases and availability of debt means that losses from the pandemic may not materialise for several years. But if the reckoning comes, it will be painful. More

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    'A Quiet Place' sequel nabs highest opening weekend box office of the pandemic

    In this articleVIACDISEmily Blunt, Millicent Simmonds and Noah Jupe star in “A Quiet Place Part II.”ParamountThe box office was anything but quiet over the weekend.John Krasinski’s “A Quiet Place Part II,” the sequel to his 2018 directorial debut, garnered $48.4 million over the weekend so far, the highest of any film release during the pandemic. The haul was just shy of the $50 million “A Quiet Place” tallied in 2018.The Paramount film is currently on pace to pick up around $58 million for the four-day Memorial Day weekend.”This is the start of the second act in movie-going’s rebound and the kind of performance that seemed unimaginable just a few months ago,” said Shawn Robbins, chief analyst at Boxoffice.com. “For ‘A Quiet Place Part II’ to open near the level of its pre-pandemic predecessor despite ongoing capacity limits and other regional restrictions speaks volumes about not just interest in the sequel itself, but also the power of moviegoing.””Audiences are increasingly eager to reintegrate that shared theatrical experience back into their daily lives,” he said.The sequel has been widely praised by critics and earmarked as a must-see film, especially in theaters. In reviews, critics touted how seeing the film in a theater heightened the experience because sounds — whether on the screen or in the seats nearby — made the thriller more suspenseful.Heading into the holiday weekend, more than 70% of theaters were open. As vaccination rates continue to rise and the number of coronavirus cases decline consumer confidence in returning to movie theaters has spiked. Not to mention, studios are finally releasing new content.Analysts are optimistic that this could be the first weekend the domestic box office could top $100 million since the pandemic began. The last time the box office reached that figure over a weekend was March 6, 2020.”The momentous success of ‘A Quiet Place Part II’ delivered a knockout punch to those who had figured that the pandemic would accelerate the oft-predicted downward spiral and eventual demise of the movie theater,” said Paul Dergarabedian, senior media analyst at Comscore.The strong performance of “A Quiet Place Part II” was aided by Disney’s “Cruella” which took in an estimated $37.4 million for Friday, Saturday and Sunday. The film is expected to garner around $42.6 million for the four-day Memorial Day Weekend. More

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    With theme parks set to rebound this summer, travel advisors share trip tips

    Social media personalities Dixie D’Amelio and Noah Beck at Disney California Adventure Park at the Disneyland Resort on May 2, 2021 in Anaheim, California.Handout | Getty Images Entertainment | Getty ImagesThe Covid pandemic made the past 14 months a literal roller coaster of a ride for both theme parks and their fans.Parks shut down or didn’t open at all last spring, and although some did reopen by summer, it was with strict capacity limits and stringent health and safety measures that put off some customers and definitely dented the fun factor for others.Here’s a look at how things are shaping up in 2021 for this part of the travel and tourism sector, and how prospective visitors can make the most out a theme park vacation as the pandemic winds down.Pre-pandemic, things had been going well for the sector. The top 20 North American theme parks drew 159,108,000 visitors in 2019, 1% more than the year before, according to the 2019 TEA/AECOM Theme Index and Museum Index.To draw even more visitors, park operators were rolling profits back into much-hyped, big-budget new attractions like the Jurassic World Velocicoaster at Universal Orlando Resort’s Islands of Adventure in Florida and the Marvel-themed Avengers Campus at Disney California Adventure Park in Anaheim.More from Personal Finance:What visiting a theme park was like amid the pandemicHow travelers could benefit from hotel industry strugglesWhat to expect as live music events take to the stage againPeople haven’t forgotten those debuts were in the pipeline.”A lot of families are opting into going to theme parks this year,” said Trish Smith, a Kansas City, Missouri-based travel advisor affiliated with the InteleTravel network of home-based agents. “I’ve actually had more bookings at this point this year than I did in 2019.”There are so many new attractions coming that a lot of people are like, ‘Yeah, I don’t want to miss out on that, and I want to be the first,'” she added.Demand is especially pent-up in California, where parks didn’t reopen until this April.In fact, Michael Erstad, senior analyst, consumer for research firm M Science, said theme parks could see a return to former attendance levels as soon as next year. “I certainly think it’s a possibility,” he said. “It will all depend how things go with the virus for the rest of the year.”I wouldn’t count [a rebound] out.”Consumer data insights firm Cardify has found, unsurprisingly, that theme parks saw a big drop in consumer spending last year but “were able to recover a bit” by last summer by reopening with capacity restrictions. Now that cities and states are relaxing pandemic restrictions, parks are seeing what Cardify terms the “silver lining” for park operators — a new “sharp increase” in spending.Zoom In IconArrows pointing outwardsCardify also found in a survey of 1,044 consumers that 72% are excited to return to amusement parks after the pandemic, more so than movie theaters (68%) or bars and clubs (67%). Only in-person concerts (79%) and sporting events (74%) are more eagerly awaited.Theme parks “are in a much better spot” relative to cinemas, cruises, air travel, hotels and other entertainment options, said Erstad at M Science.As at ski resorts, at theme parks “a lot of the experience is outdoors,” he said, and therefore less risky in terms of exposure. “You do queue up for rides, but over the last year they’ve made enhancements to improve the purchasing decisions for food and beverage so you do a lot of things electronically.”So, where are thrill-seekers headed?There are essentially two theme park markets in the U.S., although there is some crossover between them. Large destination parks — such as Walt Disney World, Universal Orlando Resort and SeaWorld Orlando, clustered together in central Florida — draw both domestic and international visitors for longer vacations, while regional parks, sometimes smaller and less heavily themed, attract more of a drive-in, day tripper demographic from nearby areas.Examples of the latter type of park would include the 27 theme and water park properties operated in North America by Grand Prairie, Texas-based Six Flags Entertainment Corp. Some smaller yet highly themed parks, such as Dollywood in Pigeon Forge, Tennessee, straddle the line between the two categories.(Interestingly, Disneyland boasts a global destination park profile but effectively operates as a regional park, drawing most visitors from its local southern California market. That said, the park — currently restricted to Californians — reopens to all visitors in full on June 15.)Don’t have any plans set in concrete; you’ve got to be a little flexible right now.Trish SmithInteleTravel-affiliated travel advisorConsumer spending at Orlando parks has been recovering from last year’s crash for months, with out-of-state visitors opening their wallets more than Florida residents, Erstad explained.”I think it is a healthy sign for Disney and the destination-focused operators, as well as overall consumer appeal for theme parks in general this summer, [and] indicative of consumers seeking out this type of [mostly outdoor] entertainment,” he said.Florida’s been among the least restrictive states when it comes to pandemic-related regulation, and Orlando area Disney, Universal and SeaWorld parks have all been open since last July. Temporary interstate travel restrictions and quarantine requirements tamped down on long-distance demand for a few months but were eventually eased by year-end.While interest in Disney’s Orlando parks is strong, “road trips close to home will be very popular this summer for regional theme parks like [Cedar Fair’s] Kings Dominion [and] Cedar Point, Six Flags, Sesame Place, Busch Gardens and Dollywood,” said Carolyn Moody, an InteleTravel advisor in Durham, North Carolina.The jury’s actually still out on how regional parks will fare, with a lack of real data for climate-related and corporate reasons at some venues, Erstad said.Cedar Fair Entertainment Co., for example, took four of its 11 theme parks in the U.S. and Canada completely offline for most of 2020, even in jurisdictions that allowed limited opening with restricted capacity, and cut the operating season short in the rest. It had just 487 total operating days in 2020, compared to 2,224 in 2019.”Cedar Fair has taken more of a conservative approach to things; they were the first to announce they’d honor 2020 pass holders into 20201 and took a cognizant decision to take a more cautious approach,” Erstad said. “It’s a little too early to look at some of your colder weather parks, although we’ve been seeing pretty healthy demand at the parks that are open.”This year, Sandusky, Ohio-based Cedar Fair plans on opening all its U.S. parks — such as Knott’s Berry Farm in Buena Point, California, and Carowinds in Charlotte, North Carolina — by Memorial Day, although Canada’s Wonderland, outside Toronto, Ontario, will remain closed. The company plans to debut attractions originally planned for 2020 and to spend an additional $100 million on new upgrades this year, said president and CEO Richard A. Zimmerman, in a May 5 statement, in anticipation of “strong pent-up consumer demand for closer-to-home, outdoor entertainment, particularly in the year’s second half.””We are pleased with the early leading indicators we have seen thus far, and our 2021 operating strategy is focused on maximizing performance during our seasonally weighted second half of the year,” he added. “With our park openings right around the corner, we are once again seeing a lift in season pass sales.”Erstad, meanwhile, pointed to Six Flags Great Adventure & Safari in Jackson, New Jersey, as a regional park that opened early in the pandemic and did “extremely well last summer.””That was just attributable to the fact they have the safari attraction, where you can be in your car with your family and socially distant from others,” he noted.The park, near New York City and Philadelphia, reopened its safari last May 30 to drivers with reservations, and then reopened its theme park portion at 25% capacity on July 3. The good response points to a lot of “pent-up demand,” Erstad said.Parks like those of Cedar Fair’s that weren’t open at all last year may see an initial spurt of visits but “I don’t know that they’re going to see a surge in demand the way Disney and some of the other larger parks have experienced,” said Summer Hull, director of travel content at website The Points Guy.”But I think that for some of the people who typically enjoy going to those spots, this may be the summer they do get back to them,” she added.Theme park tips and pivotsSo, if you’ve decided to visit a theme park, what tips do travel advisors have?Moody, a Disney specialist, said families considering theme parks this year should consult a travel advisor, “who can update clients on the latest CDC regulations, answer any questions, find the best deals, book everything from start to finish. and be a single point of contact throughout your trip.”She also recommends booking travel as early as possible, visiting parks early or late in the day to avoid crowds, buying tickets and remembering to make any required entry reservations, too.Smith also stressed that last point. While Universal Orlando never required reservations and Six Flags scrapped them at its parks nationwide this month, visitors to Walt Disney World parks still need them — as does anyone visiting any of the newly reopened theme parks in California.”Even if you buy the ticket, you’re not guaranteed to get into the park that you want to go to, because that park may be booked up with reservations,” she said.Once in the park, follow any rules on masking and social distancing still in place — the situation is fluid and can change rapidly — but don’t worry too much. There have not been any reports of Orlando-area parks becoming Covid hotspots since reopening.”The theme parks have done a great job of keeping people safe,” said Smith. “Even with more people being vaccinated, they’re still taking safety into account …so I don’t think there’s going to be a big uptick in cases or anything.”The Points Guy’s Hull has been to Walt Disney World three times since it reopened and said “it’s been a blast.””It’s largely outdoors and they’ve done a great job of making it feel fun and at the same time safe in your own little ‘Disney bubble,'” she said.Also be open to change. “That’s the biggest thing,” Smith said. “Don’t have any plans set in concrete; you’ve got to be a little flexible right now.”Hull agreed and said theme park guests who do their homework will have a great time this summer. “But those who assume it’s just business as usual are going to have a few surprises awaiting them,” she said, noting that many parts of larger destination parks — from hotels to restaurants to rides — are still not online or operating at normal capacities.”You’ve got to line some stuff up in a way you might not have before and still go in with tempered expectations for things around dining, housekeeping and other elements that are still sort of pandemic-era and haven’t gotten back to normal yet.” (Disclosure: CNBC and Universal Parks & Resorts are both subsidiaries of NBCUniversal, owned by parent Comcast.) 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    U.S. Covid cases near pandemic low as travel picks up for Memorial Day weekend

    A crowd of travelers check in for their flights at LAX on Friday, May 28, 2021.Allen J. Schaben | Los Angeles Times | Getty ImagesThe U.S. has reported the lowest number of Covid-19 cases in more than a year, as the nation’s airports over Memorial Day weekend experienced the largest number of travelers since the pandemic began.The 11,976 new cases reported on May 29 were the lowest since March 23, 2020, when 11,238 new cases were reported, according to data from Johns Hopkins University.The seven-day average of 21,007 is the lowest since March 31 of last year, when it was 19,363.Friday also saw the TSA report the highest number of travelers since the pandemic began, with more than 1.9 million people taking to the skies for the long weekend. At the same point last year, the TSA counted just 327,000 passengers at its checkpoints.The World Health Organization officially declared Covid-19 a global pandemic on March 11, 2020. The U.S. reported 1,147 Covid cases that day. The pandemic would go on to infect more than 33 million people in the U.S. and kill nearly 600,000 people. Within a week of the WHO declaration, daily TSA travel numbers dropped from 1.7 million to 620,000. By March 25, the number was at 203,000. Since March 11, 2021, the daily number of fliers has remained above 1 million.More than 60% of U.S. adults have at least one dose of a Covid vaccine, while 40.5% of adults are fully vaccinated, according to Centers for Disease Control and Prevention data. President Biden announced earlier this month that his administration is aiming to increase the number of adults with at least one dose to 70% by July 4. He also said he wants 160 million American adults fully vaccinated by the same date.”If we succeed in this effort,” Biden said during his announcement, “then Americans will have taken a serious step toward a return to normal.”The CDC recently said fully vaccinated people do not need to wear masks in most settings, though masks are still required on airplanes, buses, trains and public transportation. Cities across the country are lifting restrictions on indoor dining and gatherings as cases fall and vaccinations increase.White House chief medical advisor Dr. Anthony Fauci has repeatedly said that he wants to see daily case numbers drop below 10,000 before a broad relaxation of safety measures takes place. More

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    Marvel's 'Shang-Chi' could be the next 'Black Panther' at the box office

    In this articleDISSimu Liu stars as Shang-Chi in Marvel’s “Shang-Chi and the Legend of the Ten Rings.”DisneyIf Hollywood needed a sign that diverse content sells, it got one in 2018.It started with the blockbuster “Black Panther,” which smashed box office records and went on to win three of the six Academy Awards for which it was nominated. The superhero flick, which had a predominantly Black cast, rang up more than $1.34 billion in ticket sales at the global box office.Six months later, Jon Chu’s “Crazy Rich Asians” shattered expectations. The film tallied more than $238 million in ticket sales on a budget of $30 million, making it one of the highest-grossing romantic comedies ever.It was a wake-up call to an industry that had largely been reluctant to stray from tried-and-true Hollywood formulas. Studios quickly discovered that more diversity means more money.Three years later, Marvel is introducing its first Asian superhero, the legendary Shang-Chi, and the film has the chance to become the next “Black Panther” at the box office.”It’s not only the right thing to do,” said Rolando Rodriguez, chairman, president and CEO of Marcus Theaters of the pushes for more inclusivity in Hollywood. “Frankly, it’s important to do from a business perspective.”Rodriguez, who is also the chairman of the National Association of Theatre Owners, said that together minorities make up a large chunk of the moviegoing public.For example, while Hispanics represent around 18% of the population, they make up about 24% of the attendance at movie theaters, he said. Add African American and Asian audiences, which represent 17% and 7% of audiences, and that’s nearly 50% of business.And films like “Black Panther,” which features a predominately Black cast, don’t just resonate with Black audiences. Other minorities turned out in droves to see the film, Rodriguez said. The same is expected to happen with “Shang-Chi” in September, as well as other films like “In the Heights” and “Eternals,” which feature diverse casts.’Create inspiration and drive aspiration’When Disney released “Black Panther” in 2018, it had the highest opening weekend of any Marvel film up until that point. Domestically, the film hauled in $292 million over its first seven days in theaters, $22 million more than the team-up film “Avengers” garnered during its first week in 2012.It was the first time Marvel featured a Black superhero as the lead. According to Comscore, 37% of the opening weekend audience was African American, more than double what that demographic usually represents for other Marvel films.A similar result was seen from audiences that went to see “Crazy Rich Asians” in theaters.”Black Panther” also benefited by being a critically well-received film. It garnered a 96% “Fresh” rating from Rotten Tomatoes and won three Academy Awards.Led by the late Chadwick Boseman, “Black Panther” told a deeply emotional story of a man coming to terms with the death of his father. Not only must he take on the mantle of king, but he must face the mistakes that were made by the man he idolized and protect his family and his people. This narrative was woven into the context of a superhero film, making the feature more than just an action flick, but an emotionally resonant piece of popular culture.”Black Panther” paved the way for Marvel to produce other inclusive stories, including the recent launch of “The Falcon and the Winter Soldier” in which Sam Wilson (Anthony Mackie) must grapple with what it means for a Black man to be Captain America.Rodriguez noted that “Shang-Chi” will do for the Asian community what “Black Panther” did for the Black community.”These films create inspiration and drive aspiration,” he said.A long path to ‘Shang-Chi’Due out on Sept. 3, “Shang-Chi and the Legend of the Ten Rings” follows the titular Shang-Chi, a skilled martial artist who was trained at a young age to be an assassin by his father, but walked away to live a normal life. However, Shang-Chi can only run from his past for so long.The film stars Simu Liu, a Canadian television star, as part of a predominantly Asian cast that includes Awkwafina, Michelle Yeoh, Ronny Chieng and Florian Munteanu.Tony Leung has been confirmed as The Mandarin, the villainous leader of the Ten Rings terrorist organization. Fans of the Marvel Cinematic Universe will remember Ben Kingsley portrayed a fake version of this character in “Iron Man 3.”Behind the camera is director Destin Daniel Cretton (“Just Mercy”) and Chinese-American screenwriter Dave Callaham. Cretton and Andrew Lanham are also credited as writers on the film.President of Marvel Studios Kevin Feige, Director Destin Daniel Cretton and Simu Liu of Marvel Studios’ ‘Shang-Chi and the Legend of the Ten Rings’ at the San Diego Comic-Con International 2019 Marvel Studios Panel in Hall H on July 20, 2019 in San Diego, California.Alberto E. Rodriguez | Getty Images Entertainment | Getty ImagesThe character of Shang-Chi was conceived in 1972 after Marvel failed to acquire the rights to adapt the “Kung Fu” television program. So, the company created its own.In the ’80s, Stan Lee reportedly met with Brandon Lee, the son of Bruce Lee, who had been used as a model for Shang-Chi, about the possibility of a Shang-Chi television series. However, Lee’s death on the set of “The Crow” put a halt to these plans.Twenty years later in 2002, “Blade” director Stephen Norrington was reportedly attached to a Shang-Chi feature film. However, he retired after making “The League of Extraordinary Gentlemen,” an infamous box office flop.A handful of other directors were connected with the project over the next decade but nothing solidified until 2018 when Marvel announced it had tapped Callaham to write the script.”Films like ‘Shang-Chi’ can have enormous influence,” Paul Dergarabedian, senior media analyst at Comscore said. “It can open the minds of moviegoers. [The] preconceived notions of what constitutes a superhero can be redefined, challenged and reevaluated.””Cultures and peoples that have traditionally been left out of the superhero equation can find much to celebrate in the fact that they too are being represented as iconic heroes on the big screen,” he said.Disney is already touting its confidence in the film, as well as the movie theater industry as a whole, by committing to a 45-day exclusive theatrical window for the new superhero film. The studio has been using a variety of release strategies over the last year due to the ongoing coronavirus pandemic. In some cases, Disney has placed films that would have gone to theaters in a pre-Covid time directly on its streaming service for free. In others, it has offered films for a $30 rental charge as part of Disney+ Premier Access. More recently, the company has decided to release blockbusters in theaters and on Disney+ Premier Access on the same day.That won’t be the case for “Shang-Chi.” The superhero film will only be available at cinemas. The decision stems from a recently loosening of pandemic restrictions around the country, a rise in vaccination rates and a decline in the number of Covid-19 cases.Notably, the Centers for Disease Control and Prevention said Thursday that fully vaccinated people don’t need to wear face masks in most settings. That recommendation should help give the public more confidence about returning to normal activities and allow states to lift capacity restrictions at movie theaters.Hard-won inclusivityMarvel Studios head Kevin Feige has long discussed a desire to increase representation in the MCU, not just in front of the camera, but behind it. The Phase 4 slate of Marvel films and shows has more diverse voices and stories than ever before.In fact, according to the Incredible Hulk himself, Mark Ruffalo, Feige was willing to lay down his job to boost diversity in the MCU.”When we did the first ‘Avengers,’ Kevin Feige told me, ‘Listen, I might not be here tomorrow,'” Ruffalo said in an interview with the Independent last year. “And he’s like, ‘Ike [Perlmutter] does not believe that anyone will go to a female-starring super movie.’ So if I am still here tomorrow you will know that I won that battle.'”Perlmutter is the chairman and CEO Emeritus of Marvel Entertainment and has long had a reputation for frugality.Ruffalo added that Feige wanted Black superheroes, female superheroes and LGBT superheroes in the MCU. And he’s gotten his hard-won wish.After the events of “The Falcon and the Winter Soldier” series on Disney+, the MCU now has a Black Captain America. A second “Black Panther film” arrives next year and a series based on a young Black superhero named Riri Williams, who takes the mantle of Ironheart, is slated for Disney+.”Black Widow,” which arrives in theaters in July, will be Marvel’s second female-led feature. Its third will arrive Nov. 11, 2022, with “The Marvels,” a sequel to “Captain Marvel” that will feature Carol Danvers aka Captain Marvel, a newly powered-up Monica Rambeau, and Kamala Khan, who is Muslim, as Ms. Marvel.Behind the camera, Marvel has hired Anna Boden to co-direct “Captain Marvel” alongside partner Ryan Fleck; Academy Award-winning director Chloe Zhao helmed “The Eternals,” which is due out in November; Cate Shortland directed “Black Widow;” and Ryan Coogler is returning to direct the sequel to “Black Panther.””‘Shang-Chi and the Legend of the Ten Rings’ is truly an important film,” Dergarabedian said. “And like the trailblazing ‘Black Panther’ before it, should further the idea that diverse characters indeed have broad appeal to global audiences.” More

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    American, Southwest put off plans to serve alcohol after passenger disruptions, assault on board

    A bird flies by in the foreground as a Southwest Airlines jet comes in for a landing at McCarran International Airport on May 25, 2020 in Las Vegas, Nevada.Ethan Miller | Getty ImagesSouthwest Airlines and American Airlines said they are holding off on resuming alcoholic beverage services, after a flight attendant was assaulted and the industry grapples with a surge of other passenger incidents on board.   A Southwest flight attendant suffered injuries to her face and lost two teeth after she was assaulted by a passenger, according to a May 24 letter from Southwest flight attendants’ union president Lyn Montgomery to CEO Gary Kelly. Between April 8 to May 15, there were 477 passenger misconduct incidents on Southwest flights, Montgomery wrote.Airlines have been slowly bringing back some meal snack and beverage service that they had paused early in the pandemic.American Airlines said it won’t sell alcoholic beverages in the main cabin through Sept. 13, when the federal mask mandate is set to expire. It will still offer alcohol beverages in first and business class but only in flight.”Over the past week we’ve seen some of these stressors create deeply disturbing situations on board aircraft,” Brady Byrnes, managing director of flight service at American, said in note to flight attendants. “Let me be clear: American Airlines will not tolerate assault or mistreatment of our crews.”Dallas-based Southwest had planned to resume alcohol sales in June for Hawaii flights, and in July for longer domestic flights in the continental United States. A Southwest spokesman said there is currently “no timetable” for the alcohol sales to resume. “As alcohol sales are added back into this already volatile environment, you can surely understand our concern,” Montgomery wrote in the letter. On Monday, a day after the incident on board the Sacramento to San Diego flight, the Federal Aviation Administration said it has received approximately 2,500 reports of unruly passenger behavior this year, approximately 1,900 of those cases involving travelers who refused to follow the federal mask mandate during air travel.The Biden administration still requires that people wear face masks on planes, at the airport, and on buses and trains through Sept. 13, though the Centers for Disease Control and Prevention has loosened guidelines for vaccinated individuals in other settings.”We also recognize that alcohol can contribute to atypical behavior from customers onboard and we owe it to our crew not to potentially exacerbate what can already be a new and stressful situation for our customers,” Byrnes said. More

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    Americans are expected to spend about $4.7 billion on gas over Memorial Day weekend

    Americans are expected to spend roughly $4.7 billion on gas during the Friday through Monday of Memorial Day weekend, according to GasBuddy, an app and website focused on finding real-time fuel prices.That breaks down to about $1.18 billion spent on gas each day, give or take $1 million, Patrick De Haan, head of petroleum analysis at GasBuddy, tells CNBC Make It. GasBuddy predicts the national average price of gasoline will be $2.98 per gallon during Memorial Day weekend, the highest price on record for the May holiday weekend since 2014 when gas hit $3.66 per gallon. (AAA is reporting slightly higher averages at $3.04 per gallon, as of Thursday.) “Gas prices have been increasing for months due to the continued rise in gasoline demand as a myriad of destinations reopen ahead of the summer driving season. The Colonial Pipeline shutdown only highlighted how much more reliant consumers have become on gasoline since the pandemic hit,” De Haan says. Gas prices should start to ease up after Memorial Day, but De Haan warns that a rebound may happen and gasoline prices could rise again around the middle of summer. If you are planning a road trip this summer, here are a few tips to help you save at the pump. 1. Compare pricesWhether it’s through GasBuddy or other driving apps that show local gas costs, such as the AAA Mobile app or Waze, it’s worth looking around for the best price. A small difference can add up.The average summer road trip is 568 miles round trip, according to the Bureau of Transportation Statistics. Assuming you have a car with an average 12-gallon gas tank, you’d be saving over $20 if you shave off just 5 cents per fill-up. You should also be aware that fuel prices can fluctuate by location. AAA recommends getting gas before you arrive at your destination because many popular beach and vacation locations tend to have more expensive gas prices. 2. Make sure your car maintenance is up-to-date3. Drive calmlyBeing a zen driver can not only reduce your stress, but it may also help you save on gas. That’s because driving aggressively with lots of lane-changing, braking and rapid acceleration can increase fuel consumption by 30% on the highway.Driving over 50 miles per hour can also have an impact because it increases the vehicle’s wind resistance. For every five miles per hour you drive over 50, you’re likely paying an additional $0.21 for gas. 4. Take advantage of loyalty programs More

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    Hard seltzer's popularity propels the rise of another summer drink—the canned cocktail

    Close-up of discounted cans and cases of packaged cocktails on Safeway store shelves in Lafayette, California, December 31, 2020.Smith Collection/Gado | Archive Photos | Getty ImagesThis summer’s hottest cocktail comes in a can.Between 2019 and 2020, the premixed cocktail category grew by 50% in the United States, according to industry tracker IWSR. The segment is still relatively small, accounting for only 3% of U.S. spirits volume, based on data from the Distilled Spirits Council of the United States. But companies and industry experts expect huge growth after its pandemic boom. Bank of America Securities is forecasting that the category will reach $3 billion to $4 billion in revenue over the next few years.The rise of hard seltzer has fueled the growing popularity of canned cocktails. Ready-to-drink vodka sodas or gin and tonics appealed to consumers looking for a stronger taste or more alcoholic drink, and the category has expanded with greater variety.Like hard seltzer, canned cocktails appeal to consumers who choose their alcoholic drinks based on convenience and taste. However, ready-to-drink cocktails are usually more premium because their base is made from real spirits, not the sugar or malt found in hard seltzer or lemonade. A six-pack of hard seltzers usually sets consumers back about $10, which is also the starting price for a four-pack of canned cocktails. Canned cocktails can also be harder to find outside of liquor stores because states regulate them differently than flavored malt beverages.In a March report to clients, Bank of America beverage analysts picked Anheuser-Busch InBev and Diageo as two companies that will emerge as key players. For now, some of the standout brands are E. & J. Gallo’s High Noon, Monaco, AB InBev’s Cutwater Spirits and Beam Suntory’s On the Rocks, according to analysts.Alcohol giant AB InBev entered the segment in 2019 through its purchase of Cutwater, a San Diego-based craft distillery. Cutwater is the second-bestselling canned cocktail brand in dollar sales with a 10% share of the ready-to-drink cocktail space, based on IRI data from the 13 weeks ended May 9.For the Budweiser brewer, the acquisition was a way to move into new categories as consumption of beer has been trending downward in recent years. Fabricio Zonzini, president of the company’s beyond beer unit, said that his division’s first priority is ready-to-drink beverages.”I think that Covid was somewhat a propeller for ready to drink because it brought the convenience of the bar to your home,” he said. “And we saw that growth. Thank God we had Cutwater.”Beyond Cutwater, AB InBev has also partnered with a Canadian distiller on Nutrl, a line of vodka drinks. Zonzini said that the company will test the beverages in the U.S. to appeal to consumers who want a more light and refreshing cocktail, similar to the flavor profile of a hard seltzer. Last year, the company released flavored vodka under its Natural Light brand, which could mean canned vodka cocktails from the brewer if the liquor sells well.”If we see the results, if it connects the way that we believe, it opens up another door,” Zonzini said.Johnnie Walker owner Diageo is making its own push into the segment now. In April, it bought Loyal 9, which mixes vodka and lemonade together in a can. Before the purchase, it had already launched canned cocktail offshoots of Crown Royal, Ketel One Botanical and Tanqueray.”The category has been doing really well. It’s the fastest growing part of [total beverage alcohol] and is just accelerating fast,” said Jay Sethi, senior vice president Diageo’s North American convenience category.Sethi said that consumers are starting to look for more premium canned cocktails, which means that they’re willing to spend more as well. It’s not just the alcohol giants that are looking to gain from the growth of canned cocktails. Smaller upstarts like craft distillery Cardinal Spirits have put out versions as well. Zing Zang, which has a cult following for its Bloody Mary mix, entered the alcoholic beverage market last year with its first line of canned cocktails. The move took several years as it perfected the recipes and found distributors that could easily transport alcohol, but the drinks are doing well so far, according to CEO Brent Albertson.Albertson, who spent three decades at Diageo before joining Zing Zang, said that the company’s market research found that 25 to 37 year olds were the target market for the drinks.”They’re not drinking it to get drunk,” Albertson said. “They want to do it on boats, on golf courses. They want that convenience and portability.”Even as consumers flock back to their favorite bars, the canned cocktail trend isn’t expected to fade away. Brandy Rand, chief operating officer of the Americas at IWSR Drinks Market Analysis, said that she’s expecting more ready-to-drink beverages to show up on menus.”Consumers like them and they also provide on-premise operators a profitable option when faced with capacity and staffing issues, tighter margins, and slimmer menus,” Rand said. “Canned cocktails are also a great option for drinks-to-go in states where legal.” More