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    Travel search site Trivago pivots amid the pandemic to cut costs while expanding its horizons

    In this articleTVAG-FFAxel Hefer, CEO of TrivagoTrivagoIt’s been said there’s no gain without pain and that what doesn’t kill you makes you stronger.Online travel search firm Trivago seem to have taken the sentiment to heart amid an ongoing pandemic that’s put its industry through the wringer for some 14 months.First-quarter revenue at the Dusseldorf, Germany-based company, which is majority owned by Expedia Group, was down 73% compared to the same period in 2020 and qualified referrals plunged 55%.Despite that, CEO Axel Hefer is upbeat about Trivago’s prospects.His team made strategic cuts, while mapping out ways to expand in an altered travel marketplace.More from Personal Finance:Hotel rates on the rise as travel demand ticks upMemorial Day travel to soar 60% even as gas hits $3 a gallonCould a vaccine passport be your ticket to a quarantine-free vacation?”We realized very early that this wouldn’t be just a few months, but something that would last longer,” said Hefer, adding that firm restructured in April 2020 and reduced its cost base, which he said stabilized the firm and and improved cash flow.Indeed, Trivago shrank its first-quarter operating loss to 8.9 million euros (about $10.76 million) from 215.3 million a year before — a 96% improvement.”On the cash side, we are in a very good position,” Hefer said. Because of that, he said Trivago doesn’t need to generate a lot of profit immediately and instead can concentrate on the strategic projects it wants to push.Trivago has functioned primarily as an online hotel booking search tool that compiles rate and other accommodations information from sites like Hotels.com and Priceline, as well as hotels chains and online travel agencies, for comparison shopping by users.Trivago launched Trivago Weekend in the U.S. and U.K. in April.TrivagoBut in April, it announced a partnership with TUI Group’s Musement division to power a new activities booking feature on its site. The arrangement offers access to 55,000 excursions, activities and attractions to users in the U.S., U.K., Russia and 11 European countries.The company then followed up with Trivago Weekend in the U.S. and U.K. The new product offers accommodations and experience content close to users’ homes, “in direct response to the travel restrictions caused by the pandemic,” according to the company.As an example, Hefer said customers in England might be shown travel product in places like Oxford and Bath, rather than much-visited London or farther-flung destinations in Europe, Asia or America. The launch follows Trivago’s acquisition of Weekend.com in January.”This local travel trend will linger,” he said. “In the long term, over five to 10 years, these things tend to even out and go back to normal, but it will take quite some time.”The one key strategic opportunity for travel companies is to stay relevant at the time when customers are not traveling.Axel HeferCEO of TrivagoTrivago is anticipating a very strong summer but that international travel will trail a quicker recovery in the rest of the industry, according to Hefer.Meanwhile, there’s a chance the firm can help build a new market — and profit from it — as less-visited destinations adapt to meet new demand.”It’s a big opportunity because, once you actually improve that new offering with additional volume, you might even be able to permanently capture more demand,” said Hefer, pointing to the classic chicken-or-the-egg dilemma facing smaller destinations.”If you don’t have great hotels to stay in, and great attractions, you don’t get the visitors, but now at least you are getting a tailwind of some volume,” he said. “The destinations that use that opportunity well can improve their competitiveness.”Trivago has more innovations in the pipeline. Hefer said he wants to increase the number of “touch points” with users, engage them more through additional site features and try out new marketing ideas.”The basic direction we are taking is that the one key strategic opportunity for travel companies is to stay relevant at the time when customers are not traveling,” he said. “We want to be relevant 12 months a year and, for that, you need more features and a broader set of communication channels.”The key focus in the pandemic, for us, has been to prepare for a push in that direction.” More

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    Chip shortage expected to cost auto industry $110 billion in revenue in 2021

    In this article6723.T-JPFGM8TI-FFNXPIThe ongoing semiconductor chip shortage is now expected to cost the global automotive industry $110 billion in revenue in 2021, according to consulting firm AlixPartners.The forecast is up by 81.5% from an initial forecast of $60.6 billion, which the New York-based firm released in late January when the parts problem started causing automakers to cut production at plants.Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, said a number of factors have contributed to the increase, including a fire at a plant near Tokyo for chip supplier Renesas and weather-related kinks in the automotive supply chain.”The pandemic-induced chip crisis has been exacerbated by events that are normally just bumps in the road for the auto industry, such as a fire in a key chip-making fabrication plant, severe weather in Texas and a drought in Taiwan,” he said in a press release. “But all these things are now major issues for the industry — which, in turn, has driven home the need to build supply-chain resiliency for the long term.”AlixPartners is forecasting that production of 3.9 million vehicles will be lost this year as a result of the shortage. That’s up from January’s forecast that estimated the shortage would cut production of 2.2 million vehicles.In the U.S., the shortage has caused the Biden administration to order a 100-day review of U.S. supply chains. About $50 billion of President Joe Biden’s $2 trillion infrastructure proposal also is earmarked for the American semiconductor industry.Automakers such as Ford Motor and General Motors expect the chip shortage to cut billions of their earnings this year. Ford said the situation will lower its earnings by about $2.5 billion in 2021. GM expects the chip shortage will cut its earnings by $1.5 billion to $2 billion.Semiconductor chips are extremely important components of new vehicles for areas like infotainment systems and more basic parts such as power steering and brakes. Depending on the vehicle and its options, experts say a vehicle could have hundreds of semiconductors, if not more. Higher-priced vehicles with advanced safety and infotainment systems have far more than a base model, including different types of chips.”There are up to 1,400 chips in a typical vehicle today, and that number is only going to increases as the industry continues its march toward electric vehicles, ever-more connected vehicles and, eventually, autonomous vehicles,” Dan Hearsch, a managing director in AlixPartners’ automotive and industrial practice, said in a statement. “So, this really is a critical issue for the industry.”AlixPartners expects the largest impact to production in the second quarter and then progressively get better during the second half of the year and into 2022, Hearsch told CNBC.”By Q3, there’s enough to get everybody back up and running for the most part,” he said. “And then in Q4, we should get humming again and then next year get back to normal, hopefully.”That doesn’t mean supply constraints will be completely solved next year, but Hearsch said automakers should have enough semiconductors to produce as many vehicles as they want.The global automotive industry is an extremely complex system of retailers, automakers and suppliers. The last group includes larger suppliers such as Robert Bosch or Continental AG that source chips for their products from smaller, more-focused chip manufacturers such as Renesas or NXP Semiconductors.Much of the problem begins at the bottom of the supply chain involving wafers. The wafers are used with the small semiconductor to create a chip that’s then put into modules for things like steering, brakes and infotainment systems.The origin of the shortage dates to early last year when Covid caused rolling shutdowns of vehicle assembly plants. As the facilities closed, the wafer and chip suppliers diverted the parts to other sectors such as consumer electronics, which weren’t expected to be as hurt by stay-at-home orders.Hearsch said the top priority for companies right now is “mitigating the best they can the short-term effects of this disruption,” which may include everything from renegotiating contracts to managing the expectations of lenders and investors.Stellantis CEO Carlos Tavares said the automaker, which was formed in January through a merger between Fiat Chrysler and French automaker PSA Groupe, isn’t ruling out ways to be repaid by suppliers for the parts problem.”It’s too soon to say. We don’t know yet the total of the financial impact … It’s going to be massive,” he said Wednesday during the during the Financial Times Future of the Car Digital Summit. “But it’s clear that it’s a competitive game … we will not exclude that possibility.” More

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    China is concerned about inflation – but it’s not the top priority right now

    A man wearing a mask walks past the headquarters of the People’s Bank of China, the central bank, in Beijing, China, as the country is hit by an outbreak of the new coronavirus, February 3, 2020.Jason Lee | ReutersBEIJING — While investors around the world fret over inflation, China’s central bank has more problems than rising prices to worry about.Central banks worldwide have kept monetary policies easy and interest rates lower in a bid to support growth in the wake of the coronavirus pandemic last year, and China is no exception.Now as consumer and producer prices climb, investors are on edge as they try to discern if central banks will be raising interest rates.But the People’s Bank of China — and economists parsing its statements — are not as worried about inflation, or expecting much monetary policy change as the country faces more pressing risks.In its report on first quarter monetary policy released late Tuesday, the central bank focused on how the foundation for China’s economic recovery is not solid.”Residents’ consumption is still constrained and investment growth is insufficient,” the report said, according to a CNBC translation of the Chinese text. The PBOC added that smaller, privately run businesses still face difficulties, and ensuring employment remains a great challenge.The report talked at length about an increase in inflation globally, and forecast China’s producer prices would rise later this year as commodity prices climb worldwide. The central bank also noted that rising inflation in major economies has increased the pressure of currency depreciation and capital flows for some emerging economies.Data out this week showed U.S. consumer prices posted their fastest increase since September 2008, at 4.2% in April, and producer prices rose 6.2% in their fastest increase in the PPI’s roughly one-decade history.The S&P 500 has fallen more than 2% this week, while the 10-year Treasury briefly hit a one-month high of nearly 1.69%. It’s not clear if the latest rise in U.S. inflation will be a negative for stocks in the long term.China keeps rates steadyThe Chinese 10-year government bond yield has held above 3.1%, while the Shanghai Composite has climbed 2% this week. China said Tuesday its producer prices rose in April by their fastest rate in more than three years — up 6.8%. But consumer prices edged up just 0.9% as pork prices fell.”If we have prices rising in China, it’s not demand overheating domestically, which could warrant change of monetary policy to slow that,” said Francoise Huang, senior economist at Euler Hermes, a subsidiary of Allianz, in a phone interview Wednesday. “I continue to think the policy rates will not be changed this year.”The Chinese central bank has kept its benchmark lending rate, the loan prime rate, unchanged for a year. The next monthly announcement on the rate is due May 20.In its quarterly report this week, the central bank added that “prudent” monetary policy would be flexible, targeted and appropriate.High employment pressureZong Liang, chief researcher at the Bank of China, doesn’t expect China’s monetary policy to change until the second half of the year, at the earliest. He noted the central bank kept policy relatively tighter in the last two years versus that of other countries.Although he expects Chinese consumers will pick up their spending in the second quarter, especially as China steps up local vaccinations, he said consumption is still in a period of recovery.In a sign of Beijing’s caution on the economy, authorities said at a meeting Wednesday that pressure to support employment remains high. The central government decided at the meeting to extend pandemic-era support for unemployment until the end of this year.However, the level of support was scaled back from what it was last year. China’s economy grew 18.3% in the first quarter, from a contraction last year amid the height of the pandemic.We think a hasty withdrawal of stimulus policies will also bring about new financial risks.Li-Gang Liuchief China economist, Citi ResearchSeparately, data out Wednesday showed loan growth slowed more than expected in April, which some economists said reflected credit tightening.”We think monetary conditions have likely tightened, but overall credit policy remains supportive for a more balanced recovery of the real economy, considering the relatively robust medium-term and long-term loan growth,” said Bruce Pang, head of macro and strategy research at China Renaissance.”The sharper-than-expected slowdown in short-term loan issuance in April may also (be) due in part to regulators’ increased scrutiny on the illegal use of business and consumption loans for property financing,” he said.Risks in real estateReal estate is one of the primary areas of investment — and speculation — in China. In an attempt to keep price gains from getting out of hand, authorities have tried to act cautiously.The People’s Bank of China said in its first quarter monetary policy report that house prices must be kept stable, and emphasized that houses are for living, not speculation.Although markets appear to believe China will accelerate its exit from policies implemented in the wake of the coronavirus pandemic, there isn’t a strong case right now for the central bank to do so, said Li-Gang Liu, chief China economist at Citi Research.”Financial fragility has increased, represented by the enlarged property bubble, elevated debt level, and enhanced default risk,” Liu said. “We think a hasty withdrawal of stimulus policies will also bring about new financial risks.” More

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    How a chip shortage is battering the automotive industry

    A shortage of semiconductors is inflicting pain on the automotive industry, forcing companies to cut production and leaving dealers with reduced inventory.Industry analysts estimate the shortage could cost the entire industry $60 billion. That includes automakers, suppliers and dealers, among others. In early 2020, automakers were reeling from production slowdowns due to Covid-19 pandemic lockdowns and safety measures.In the meantime, the semiconductor industry was flooded with demand for chips from the consumer electronics industry. Homebound consumers were buying new entertainment systems, video game consoles and other gadgets to help them pass the time.Then, car factories hummed back to life. But the semiconductors automakers need for infotainment systems, engine control systems, and countless other functions, weren’t there.Automakers are now scrambling to get the chips they need. The ordeal has also forced them to face a fragile semiconductor supply chain that analysts say has been a looming threat for years. More

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    Shirley Chung of 'Top Chef' pivoted her business and became a voice against anti-Asian hate

    Shirley Chung prepares a dish at the Michael Muller’s HEAVEN, presented by The Art of Elysium, event on Jan. 5, 2019 in Los Angeles.Phillip Faraone | Getty Images Entertainment | Getty ImagesWhen the pandemic hit, chef and reality TV star Shirley Chung quickly pivoted her restaurant business to manage through the crisis.Dealing with anti-Asian hate was another matter.As she heard about alarming racist incidents and hate crimes happening around the country recently, including the killing of six women of Asian descent near Atlanta in March, Chung felt a need to speak out.”Everything that was happening was hitting so close to our hearts,” the 44-year-old said of herself and the chef community in Los Angeles.More from Invest in You:Covid and racism is hurting many Asian-owned small businessesAs small businesses slowly recover, financial help becomes more targeted’Huge’ opportunities await women entrepreneurs, VC says. Here’s what to doChung, who was a finalist on Bravo’s reality show “Top Chef,” also endured incidents at the Culver City, California-restaurant, Ms Chi Cafe, that she co-owns with her husband. Her non-regular diners began to question its cleanliness, despite seeing tables sanitized in front of them. The back door was graffitied. In response, Chung added extra cleaning services and installed security cameras so that her customers and staff felt safe.More recently, someone stole a to-go order right off the counter, threatened her husband, Jimmy Lee, and screamed racist remarks.”That actually made me want to be even more vocal and really share my experience,” said Chung, who was born in Beijing and immigrated to the U.S. at age 17.While the couple’s parents wanted them to stay quiet in fear for their safety, Chung said making noise will help call attention to the plight of the Asian-American and Pacific Islander (AAPI) community and the impact of hate on their businesses.”We don’t want to be silent anymore,” she said. “We want to lead by example and let our parents see it is OK. Now is our time.”Paying it forwardWhen Covid first hit, Chung quickly made adjustments to her business.”That was the only way to survive,” she said.As she opened back up, she restarted shipments of her frozen dumplings to Goldbelly, a gourmet food delivery company. Within the first week, her orders tripled and she knew she was onto something. She increased her offerings and now has a full-blown store. She also started doing digital cooking demonstrations.Zoom In IconArrows pointing outwardsSource: Shirley ChungWhile trying to come up with solutions, she started talking to other area chefs to exchange ideas.”From those conversations, I realized many AAPI owners and chefs didn’t have the access to many things ‘mainstream’ restaurants and chefs are used to, from government grants and updated policies to social media platforms to promote their business,” said Chung, author of “Chinese Heritage Cooking From My American Kitchen.”She began to help her fellow AAPI business owners by sharing new policies, and suggesting they join the Independent Restaurant Coalition. She also helped less well-known restaurants get onto platforms like Goldbelly to expand their income, she said.In March, Chung took part in the LA Food Gang fundraiser, Let’s Eat Together, which raised almost $60,000 for struggling AAPI restaurants.This Sunday, Chung will also be a part of a week-long event called Pop Off LA, in which select Los Angeles restaurants will collaborate one one-of-a-kind creations. A portion of the proceeds will go to nonprofit Off Their Plate, which will then engage struggling Asian restaurants to make meals for AAPI organizations.Hopeful about the futureChung is extremely hopeful for 2021. One blessing in disguise has been the changes she’s made to her business that she plans on keeping.”There were some digital business innovations happening during the pandemic,” she said. “This live cooking experience via the internet is here to stay.”The pandemic also made her community more connected. Now she’s hoping that Asian-Americans can become more visible. That means getting involved in politics and on mainstream media and pop culture.”Representation matters,” Chung said.SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.CHECK OUT: Millennial with 6-figure side hustle: ‘I’ve made more in the past year than I ever made at my full-time job’ via Grow with Acorns+CNBC via Grow with Acorns+CNBC.Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns. More

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    Stocks making the biggest moves in the premarket: Disney, DoorDash, Snowflake, Fisker & more

    Take a look at some of the biggest movers in the premarket:Walt Disney (DIS) – Disney shares dropped 3.9% in premarket trading after growth figures for the Disney+ streaming service fell short of Wall Street predictions. Disney reported better-than-expected profit for the first quarter, but revenue was short of analysts’ forecasts.DoorDash (DASH) – DoorDash surged 8.2% in the premarket after first-quarter revenue came in above analysts’ forecasts, and the food delivery service raised its annual forecast for order value. First-quarter results got a boost from stimulus checks, although the company said those same checks were responsible for drivers working fewer hours.Snowflake (SNOW) – The cloud computing company was upgraded to “buy” from “neutral” at Goldman Sachs, which notes the Snowflake’s strong competitive position, as well as a drop from recent highs that is much larger than its peers have experienced. Snowflake jumped 5.7% in premarket trading.Airbnb (ABNB) – Airbnb posted a first-quarter loss, but it also reported better-than-expected revenue as well a 52% jump in gross bookings as more Americans received Covid-19 vaccinations and travel restrictions eased.Coinbase (COIN) – Coinbase reported record profit during the first quarter, as the cryptocurrency exchange benefited from a significant rally in bitcoin and other digital currencies. Coinbase shares rose 2.3% in premarket action.Kansas City Southern (KSU) – The U.S.-based rail operator accepted Canadian National Railway’s (CNI) $33.6 billion takeover bid, casting aside the $29 billion deal it had previously agreed to with Canadian Pacific Railway (CP). Canadian Pacific has five business days to make a counter-offer for Kansas City Southern. Canadian National added 2.9% in premarket trading, while Canadian Pacific rose 1.6%.Tyson Foods (TSN) – The beef and poultry producer sold its pet treats business to General Mills (GIS) for $1.2 billion. The sale includes the Nudges, Top Chews and True Chews brands as well as an Iowa production facility.General Electric (GE) – Citi reinstated coverage of GE with a “buy” rating, based on a “sum of the parts” valuation and better execution across GE’s portfolio of businesses. GE shares added 1.1% in premarket trading.Aurora Cannabis (ACB) – Aurora Cannabis tumbled 8.7% in premarket action after it reported lower-than-expected fiscal third-quarter revenue, hit by pandemic-related restrictions in Canada. Separately, the cannabis producer announced a move in its U.S. stock listing to Nasdaq from the New York Stock Exchange, citing lower costs.Fisker (FSR) – Fisker soared 14.5% in premarket trading after the electric car maker signed a deal with contract manufacturer Foxconn to co-develop electric vehicles. Plans include opening a new U.S. manufacturing plant in 2023, although a location has not yet been finalized.Poly (PLT) – Poly tumbled 19.5% in the premarket after the maker of audio and video products issued a weaker than expected outlook. The company formerly known as Plantronics said it expected the global semiconductor shortage to negatively impact its supply chain. It did, however, report better-than-expected profit and revenue for its latest quarter.Unity Software (U) – The 3D content creation platform company rose 3.2% in the premarket after Oppenheimer upgraded the stock to “outperform” from “perform.” Oppenheimer said the current price is an attractive entry point given Unity’s growth prospects. More

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    UK prepares surge vaccinations to tackle Covid variant from India

    Caroline Nicolls receives an injection of the Moderna Covid-19 vaccine administered by nurse Amy Nash, at the Madejski Stadium in Reading, west of London on April 13, 2021.STEVE PARSONS | AFP | Getty ImagesLONDON — The U.K. is preparing to deliver surge vaccinations and testing in areas where the new Covid-19 variant first detected in India is spreading.Vaccines Minister Nadhim Zahawi told BBC TV on Friday that the government would “flex” its inoculation program to direct more doses to the most affected areas, while second doses could be brought forward.In a statement late on Thursday, the U.K.’s Department of Health and Social Care announced that a new “surge rapid response” team of 100 nurses, public health advisers and environmental health officers would be deployed to Bolton, a town on the outskirts of Manchester, where the B1.617.2 variant is spreading rapidly.”While there is no firm evidence yet to show this variant has any greater impact on severity of disease or evades the vaccine, the speed of growth is concerning and the government is considering additional action if deemed necessary, including how to best utilize the vaccine roll-out to best protect the most vulnerable in the context of the current epidemiology,” the Department said in the statement.Surge testing will also be expanded to other areas across the country, along with increased genomic sequencing and enhanced contact tracing.Data on the new variant published Thursday by Public Health England showed that the number of cases across the U.K. had risen from 520 last week to 1,313 this week, with most cases concentrated in the north west of England and a few clusters in London.’Cannot rule out’ new restrictionsThe U.K.’s vaccine rollout has been one of the fastest in the world, with almost 70% of the adult population having received at least one shot so far. Vaccines are currently available to anyone over the age of 38, but the government has said they could be made available to younger people living in multi-generational households.The next phase of England’s exit from lockdown is scheduled for Monday, when indoor socializing, hospitality and entertainment will recommence.However, Health and Social Care Secretary Matt Hancock said in a statement Thursday that the government is “monitoring the situation very carefully and will not hesitate to take further action if necessary.”Along with the specialist unit in Bolton, surge testing has already been deployed in 15 areas across England, with more than 800,000 tests distributed.”As set out in the roadmap, we cannot rule out re-imposing economic and social restrictions at a local or regional level if evidence suggests they are necessary to contain or suppress a variant which escapes the vaccine,” the DHSC said. More

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    Dogecoin rallies on Elon Musk tweet, anticipated Coinbase listing

    In this articleDOGE.CM=Yuriko Nakao | Getty Images News | Getty ImagesDogecoin soared early Friday after a tweet from supporter Elon Musk, and as Coinbase said it would list the meme-inspired cryptocurrency.The price of dogecoin rose to an intraday high of around 56 cents at 3 a.m. ET, according to data from Coin Metrics. As of 4:30 a.m., dogecoin was up 36% at 52 cents per coin. It’s still down about 20% from a record high of nearly 67 cents only a week ago.Musk tweeted Thursday that he was working with dogecoin developers to improve the efficiency of transactions.On Wednesday, the Tesla CEO made a surprise announcement that his electric car firm would stop accepting bitcoin as payment due to concerns over its environmental impact.That led to a brutal sell-off in cryptocurrencies, including dogecoin. Dogecoin had already fallen significantly after Musk’s appearance on Saturday Night Live, in which he called the digital coin a “hustle.”Meanwhile, crypto exchange platform Coinbase said Thursday it would offer dogecoin support in the next six to eight weeks. Many crypto traders have flocked to the zero-fee investing app Robinhood to trade the meme token; now Coinbase’s move could lead to more trading activity.Dogecoin isn’t taken very seriously by loyal bitcoin supporters. It started in 2013 as a joke, inspired by the “Doge” meme, but has since found a growing community online. Dogecoin is now the fourth-largest crypto by market value on CoinMarketCap, worth over $68 billion.Financial experts warn that dogecoin is a highly speculative asset. It has stoked worries over a potential bubble in crypto markets — though some economists would say all cryptocurrencies are in a bubble.Last week, Bank of England Governor Andrew Bailey warned crypto investors should be “prepared to lose all your money,” echoing a similar warning from the U.K.’s Financial Conduct Authority.Bitcoin was slightly higher Friday, with the world’s biggest digital asset up 2.7% at a price of $50,205. Ether, the second-biggest cryptocurrency, rose 5.5%, to $3,877. More