China Manufacturing Begins To Rebound as COVID-19 Restrictions Ease

Manufacturing in China started to improve in May after the country lifted coronavirus lockdowns that shut down China’s richest and most populous city of Shanghai, as well as other industrial areas, according to an official survey released Tuesday.

The Purchasing Managers’ Index of the National Bureau of Statistics of China’s manufacturing industry jumped from 47.4% in April to 49.6% this month on a 100-point scale. Numbers below 50 reveal activity contracting.

New orders, exports and employment all improved during the month of May. More businesses in Shanghai are allowed to reopen this week after COVID-19 outbreaks were considered by the government as under control.Other industrial centers like Shenzhen and Changchun were also forced to shut down this spring due to the coronavirus, which disrupted the cities’ manufacturing and trade.

Tuesday’s data shows that “activity has started to rebound as containment measures were rolled back,” Capital Economics’ Sheana Yue said in a report, adding that the recovery “is likely to remain tepid amid weak external demand and labor market strains.”

More businesses in Shanghai, China’s most populous city, are being allowed to reopen this week after outbreaks were deemed to be under control. Other industrial centers including Shenzhen in the south and Changchun in the northeast also were temporarily shut down, disrupting manufacturing and trade.

Chinese President Xi Jinping is zeroing in on the ties that China’s state banks and other financial stalwarts have developed with big private-sector players, expanding his push to curb capitalist forces in the economy.

Source: China manufacturing begins to rebound as COVID-19 restrictions ease | Fox Business

In April, China’s industrial groups posted their biggest profit decline in two years, the latest sign of economic and corporate woes caused by a wave of coronavirus lockdowns. Industrial profits fell 8.5% in April from the same period a year earlier, the biggest drop since March 2020, when China was also engulfed in restrictions to deal with the initial outbreak of the virus.

The cutbacks are increasing pressure on the government, which is pushing to maintain its zero-Covid policy to eliminate infections through mass testing, lockdowns and quarantines. The strategy is a priority for President Xi Jinping this year as he seeks an unprecedented third term in office, but its rising economic costs pose a serious threat to the country’s 5.5% growth goal by 2022.

Official data last week showed a drop in overall activity in April at a time when Shanghai, China’s financial center, was closed and residents were chained to their homes. Retail sales, an important indicator of consumption, fell 11%, while industrial production also fell. Unemployment hit 6.1 percent, the highest level in two years. The lockdowns are estimated to have affected dozens of cities and hundreds of millions of people. Restrictions are also being put in place in Beijing, which reports dozens of cases daily.

The latest outbreak in China was centered mainly in Shanghai, where about 63,000 infections have been reported and where many residents are still staying at home. Officials stressed the need for a rapid citywide response to the highly contagious Omicron variant. Zhu Hong, senior statistician at the National Bureau of Statistics, said the outbreak “had a big impact on the production and operation of industrial enterprises” in April, adding that profits fell by 22% for manufacturing companies in particular.

The authorities, which had already eased monetary policy in response to last year’s real estate liquidity crunch, have taken other steps to support the economy. Last week, China’s mortgage lending rate was cut for the second time this year. Analysts at Goldman Sachs pointed to the impact of “high raw material costs” on industrial profits, in addition to supply chain disruptions caused by Covid lockdowns at manufacturing centers.

“We expect further policy easing on the fiscal front to stimulate demand, given the downward pressure on growth and the uncertainty of the pace of recovery from the Covid disruption,” they said.

Opinion: If We Want To Solve Climate Change, Businesses Need To Invest In Our Planet 

Kathleen Rogers is President of EARTHDAY.ORG, a global year-round policy and activist organization with programs around the world. She has been at the vanguard of developing campaigns focused on expanding and diversifying the environmental movement. The views expressed in this commentary are her own.

(CNN)Environmentalists’ traditional role is to hold governments and corporations accountable and to inform, motivate and engage the broader public of the dangers posed by government inaction or corporate malfeasance. And our relationships with both government and business have often been uneasy.

On the government side, pro-environment leaders come and go. Some have passed forward leaning environmental laws and regulations, others have reversed this progress. Environmentalists have brought innumerable lawsuits against governments for their failure to uphold their own laws yet often we work cooperatively with governments and legislatures to pass critical legislation and regulatory action.

On the other hand, environmentalists and corporations have often been adversaries. In the five-plus decades since the first Earth Day, the global environmental community has filed tens of thousands of lawsuits against corporations and corporations have sued back to block environmental regulations.

And if they aren’t actively blocking environmental laws and regulations, corporations are lobbying to prevent those laws from being passed in the first place. In the United States alone, more than $2 billion was spent on lobbying climate change legislation between 2000 to 2016, according to one analysis, outspending environmentalists by 10 to 1.

Yet compromises have often been possible, and environmentalists also work collaboratively with both corporations and governments to transform industries where there are mutual environmental and economic benefits such as the transformation of the lighting industry to LEDs, supporting renewable energy incentives, and forest certification standards.

Overall, that ebb and flow of the “wins” by governments, environmentalists, and corporations has led to a two steps forward, one step back process for decades, and overall progress on solving or reducing environmental damage and risk has been glacial.

In the meantime, over 1 million species are at risk of extinction, plastics are in our bloodstream, oceans, and food, and chemical toxins still plague the planet. Now climate change has dramatically altered this back and forth and solving the world’s largest environmental disaster has become an imperative, requiring a radical new strategy.

Simply put, it is going to take a lot more than governments, environmentalists, and individuals can provide to solve the climate problem. After decades of treating business leaders as the enemy (and often rightly so), many environmentalists have come to the realization that if we want to save the planet, we cannot do it without them.

“The largest market in the history of the world”

The notion that businesses, innovators, and investors might play a larger role than governments was on full display at the recent Glasgow COP climate summit. Instead of stepped-up ambition to solve climate, most countries did nothing, even stepping backwards.

Environmentalists lobbied vigorously to no avail and if we had all been honest, a sense of despair was growing. On the corporate side, however, there was palpable enthusiasm around deal making, new technologies, and opportunities to make money.

Recently, more than 450 companies with more than $130 trillion in assets, more than the global GDP, pledged deep investments in a net zero transition. US Special Presidential Envoy for Climate John Kerry described it “the creation of the largest market in the history of the world,” bigger than the industrial revolution. And bankers and investors are saying the same thing.

How do we invest in our planet?

First, governments have long taken the lead in research and development and every economic revolution since the 1800s witnessed massive government investment in technology. Unfortunately, government investments in environmental and climate research, subsidies, and incentives have ebbed and flowed depending on who’s in charge.

Governments must invest, build infrastructure for the transition to renewables and the green economy in general, and regulators must provide some certainty in the marketplace, along with carrots (subsidies and incentives) and sticks (ending fossil fuel subsidies and requiring disclosures from all businesses).

Second, with this extraordinary funding, businesses could create extraordinary chaos and damage. They must agree to complete transparency on their environmental and climate impacts and without the phony net-zero claims.

Many major global companies have chosen to obfuscate and overstate the reality of their net zero promises, undercutting their credibility with both governments and environmentalists. And while we are waiting for national and international bodies to finalize climate risks and impacts’ requirements, more companies must choose to follow a net positive for climate and nature even if profits are impacted.

Environmentalists must acknowledge that as the frenzy of green investment accelerates, we must be better financed to expand our watchdog role, while also keeping accountable those who hide behind greenwashed smokescreens. We must partner with governments and business to build a reliable green consumer movement.

And lastly, given there is ample opportunity to produce future environmental disasters as we redesign the planet — and more likely than not at the expense of the Global South and its very valuable green tech resources — equity and justice have to become a central part of the mission for all three players.

Even if all these steps are taken, proofing the planet against climate change and other environmental woes will be a long and expensive journey that will require investments and new ways of thinking from all sides. Unless all the planet’s stakeholders change their behavior, the causes of climate change will further entrench themselves into the world economy, increasing scarcity, draining profits, and cutting job prospects. That is a recipe for all of us to end up in the red.


Source: Opinion: If we want to solve climate change, businesses need to invest in our planet  – CNN


United Nations Environment Programme 2021Weart

“The Public and Climate Change: The Summer of 19882020).

“Heat stored in the Earth system: where does the energy goNASA.

“The Causes of Climate ChangeACS.

“What Is the Greenhouse Effect?

Is the Sun causing global warming?

The study of Earth as an integrated system

Hurricanes and Climate Change”.

Poleward expansion of tropical cyclone latitudes in warming climates


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What The Outcome Of COP26 Means For The Fight Against Climate Change

British Columbia declared a state of emergency following record rainfall that resulted in widespread flooding of farms, landslides and the evacuation of residents. Justin Sullivan/Getty Images

While addressing the 26th UN Climate Change conference in Glasgow, Scotland, during the final hours of the event, COP26 President Alok Sharma was overcome with emotion. China and India had just proposed a last-minute change to the final text of the agreement, known as the Glasgow Climate Pact, so that the call to “phase out” unabated coal power and inefficient fossil fuel subsidies was watered down to “phase down.”

Delegates from other countries, from Switzerland to Cuba, deplored the move, but ultimately adopted the text in the interest of time, as the conference was running more than 24 hours late by that point.

“I apologize for the way this process has unfolded and I am deeply sorry” said Sharma, who earlier in the week had told reporters he was sometimes called “No-drama Sharma.” He then added: “I also understand the disappointment, but, as you’ve noted, it is vital we protect this package,” his voice quivering towards the end of the sentence.

Specific mentions of fossil fuels had eluded previous UN climate agreements, and the Glasgow Climate Pact was meant to mark a landmark achievement despite two rounds of revision diluting and complicating the simple “phase out of coal and fossil fuel subsidies” sentence featured in the document’s first draft. Sharma and the U.K. government had a clear goal for COP26—to keep the spirit of 1.5 alive, a reference to COP21’s milestone Paris agreement, which called for global action to prevent temperatures from rising above 2 degrees Celsius, and preferably 1.5 degrees Celsius, above pre-industrial levels by the end of the century.

To do so, it’s crucial to reach net zero emissions by 2050—meaning that for every amount of greenhouse gas emissions, an equal number is removed from the atmosphere—and, to be on track to reach that goal, scientists think global emissions should be halved by 2030. Earlier this year, a report from the UN-backed Intergovernmental Panel on Climate Change indicated that global temperatures have already risen by 1.1 degree Celsius on pre-industrial levels.

“We have kept 1.5 degrees alive. But, its pulse is weak and it will only survive if we keep our promises and translate commitments into rapid action,” Sharma said. It’s a statement that doesn’t hide the disappointment the conference organizers must have felt as the event that was dubbed the “most important COP since Paris” just couldn’t fully deliver on its ambition. COP26 was neither success nor failure—absolute concepts that don’t reflect the complexities of high-level international negotiations—but a mixed bag of progress on some issues, disappointment on others, and a whole lot of pledges.

COP26’s Key Agreements And Pledges

The U.K. Presidency had four key objectives summarized as “coal, cash, cars, and trees”—in other words, ending coal power generation (a pledge now endorsed by 46 countries with a deadline set at 2040), providing the long promised $100 billion annual support towards developing countries’ green transition (a goal that was meant to cover the period 2020-2025 but not materializing until 2023 at least, and whose future beyond 2025), supporting electric vehicles and a phase out of gasoline and diesel-powered motor vehicles by 2040, and reversing deforestation in an attempt to protect existing nature-based solutions to capturing emissions.

The bilateral agreement between the U.S. and China on climate change action, including a cut in methane emissions—the subject of a multilateral agreement produced at COP26 to which China refused to take part—was also a remarkable development.

Some of these agreements are imperfect—the one about deforestation, for instance, pledged to “halt and reverse forest loss and land degradation by 2030.” It appeared a success as it involved Brazil, home to the world’s largest rainforest who’s been losing trees at record pace this year, but Brazilian senators soon clarified that their commitment would only extend to illegal deforestation. Campaigners have long indicated that the line between legal and illegal deforestation in the country is often blurred due to amnesties affecting illegally deforested areas.

Others are deprived of key players. A campaign to phase out oil and gas in the next 30 years promoted by Denmark and Costa Rica, for instance, lacked the support of COP26’s host country, the U.K., which is considering the development of a new coal mine and an offshore oil field.

Pledges submitted by countries to reduce their emissions remain insufficient to achieve the 1.5 degrees Celsius target. The most optimistic scenario drafted by the International Energy Agency (IEA), in which all nations follow through with their pledges, puts the world on course for a 1.8 degrees Celsius increase in global temperatures by 2100. The non-profit group Climate Action Tracker confirmed the IEA calculation, but indicated that a more realistic outcome for those pledges is a 2.4 degrees temperature rise—and a 2.7 degrees on the basis of current policies.

A report this week by the Paris Reinforce consortium, which comprises 18 research institutions, adds nuance to those figures, finding that current policies put the world on course for between 2.3 to 2.9 degrees Celsius of warming by 2100, while climate pledges lead to warming of 2.2 to 2.7 degrees over the same period.

Some countries are already feeling the impact of rising global temperatures and several developing countries, some of which are already facing rising sea levels eating into their territories and extreme weather events devastating lives and livelihoods, branded a rise of 2 degrees Celsius in global temperatures as a “death sentence.” Developing countries and civil society campaigners were disappointed with the failure to create a robust mechanism to disburse financial aid towards loss and damage in the face of climate change.

Sir David King, chair of Climate Crisis Advisory Group (CCAG), an independent group of 15 experts from 11 countries that released their own assessment of COP26’s outcome this week, called the failure to reach an agreement on that front a “fundamental breach of trust.” He said in a press statement: “What we have at hand is a fundamental breach of trust between rich and poor nations, with catastrophic consequences for the world. Without a recalibration from developed nations on how they approach their relations with poorer countries, change at the scale and pace required to ensure global warming to 1.5 degrees Celsius is nigh on impossible.”

The Path Ahead

On a positive note, delegates were able to finalize a deal around carbon markets that was left unfinished in Article 6 of the Paris Agreement, paving the way for building a system to price and trade carbon globally. COP26 also saw unprecedented commitments from the private sector to reaching net zero goals and supplying the trillions of dollars needed to fund the transition.

“All actors in the financial sector have stepped on board to redirect the standards on where investments go. It sends a signal,” Johan Rockström, director of the Potsdam Institute for Climate Impact Research, told Forbes during COP26.

Another sign of progress Rockström witnessed in Glasgow is an overall agreement that limiting emissions in line with the goals of the Paris Agreement is a must. “This is the first COP where we do not debate any longer the direction we’re moving at, we’re debating the speed,” he said.

It’s not just the speed—the way to achieve those emissions reduction remains under discussion. Nuclear power and hydrogen—which can be “green” when produced via renewable energy, but is dubbed “blue” if derived from fossil fuels—were offered big platforms at COP26 in the form of pavilions and participation at keynote speeches and panel sessions, more so than producers of solar and wind energy.

Forms of transportation that don’t traditionally feature fuel engine combustion, such as trains or bicycles, weren’t even considered in the program, which instead focused on electric vehicles, airplanes, and shipping—sectors that present huge decarbonization challenges, which nonetheless shouldn’t detract from discussing existing low-carbon modes of transportation. 

Overall, lacking from the discussions at COP26 was the understanding that reaching net zero emissions requires more than just a switch from one energy source to another, but a reinvention of current modes of production and consumption. This was noted by Guy Grainger, global head of sustainability services at real estate services company JLL, who would have liked more focus on the circular economy, at least in his sector. “The circular economy has got a huge role to play in the built environment, but [it] actually hasn’t been talked about enough yet. I’m hoping that that will come,” he told Forbes.

One of the few people who addressed the need for more radical change was fashion designer Stella McCartney. “Fast-fashion [brands] obviously need to reduce what they produce,” she told Forbes. She explained that she, too, has gone through the process of reducing her product range, adding: “I want to show my industry that you can have a business model in working in a cleaner, more sustainable way.”

COP26 is now over, but the mission to prevent the worst consequences of climate change continues. No doubt the issues that created disappointment in Glasgow will be discussed with even more urgency next November, at COP27 in Egypt.

I am an assistant editor based in London, from where I oversee coverage of sustainability and curate the Daily Dozen newsletter. I have worked as a reporter for Newsweek and PinkNews,

Source: What The Outcome Of COP26 Means For The Fight Against Climate Change


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Reopening Stocks Lead The Market Higher After Strong Jobs Report, Pfizer Announcement

The stock market rallied to record levels yet again on Friday after a better than expected October jobs report, a big announcement from Pfizer and a slew of strong corporate earnings results all helped boost investor optimism about America’s economic recovery.

Key Facts

All three major averages touched new highs: The Dow Jones Industrial Average rose 0.6%, over 200 points, while the S&P 500 gained 0.4% and the tech heavy Nasdaq Composite increased 0.2%.

The United States added back 531,000 jobs in October—better than the 450,000 expected by economists, according to data released by the Labor Department on Friday.

The long-struggling labor market is showing signs of improvement, notching its best monthly showing since July, while the unemployment rate ticked down to 4.6%—its lowest level in more than a year.

A major announcement on Friday from vaccine maker Pfizer also helped boost stocks tied to the reopening of the economy: The company said it will seek FDA approval for its antiviral pill, which reduces the risk of hospitalization and death from Covid-19 by 89%.

Although the Pfizer announcement caused shares of other vaccine makers such as Moderna, BioNTech and Merck to plunge, travel and leisure stocks widely rallied on the news and led the market’s gains on Friday.

Solid earnings also helped drive optimism, including from the likes of Uber, which reported its first-ever adjusted quarterly profit as demand for ride-sharing recovered, and Airbnb, which had its “strongest quarter ever” as travel continued to rebound.

What To Watch For:

While reopening stocks have performed well recently, several pandemic favorites have struggled. Shares of at-home fitness equipment maker Peloton plunged over 30% on Friday after reporting dismal quarterly earnings—making CEO John Foley no longer a billionaire. Other companies have also seen their businesses take a hit from the reopening of the economy: Smart TV company Roku and online education company Chegg both reported lackluster earnings this week.


The Federal Reserve said on Wednesday that despite labor shortages, supply chain constraints and inflation fears, the U.S. economy was recovering well. The central bank announced that it would begin reducing the historic level of stimulus it has been providing markets since the Covid-19 pandemic began. Fed chairman Jerome Powell also clarified his stance on high inflation, saying it was “expected to be transitory.” Markets have since rallied on the news.

Key Background:

The stock market has continued to hit fresh highs in recent weeks: The S&P 500 rose over 5% in October for its best month so far in 2021 and is up nearly 2% so far in November. Optimism around the reopening of the U.S. economy has grown, in large part thanks to third-quarter corporate earnings that have proved resilient despite higher costs and inflation fears. Of the 445 companies in the S&P 500 that have reported results so far, nearly 81% have beaten expectations, according to Refinitiv.

Further Reading:

Peloton Shares Plunge Over 30%—And CEO John Foley Is No Longer A Billionaire (Forbes)

Stocks Hit Fresh Records After Fed Says It Will Taper Pandemic Stimulus (Forbes)

U.S. Economy Added 531,000 Jobs Last Month—But 7.4 Million Americans Are Still Unemployed (Forbes)

Billions Wiped From Covid Pharma Heavyweights—Including Moderna, Regeneron, Merck—As Pfizer’s Antiviral Pill Triggers Selloff (Forbes)

Follow me on Twitter or LinkedIn. Send me a secure tip.

I am a New York-based reporter covering billionaires and their wealth for Forbes. Previously, I worked on the breaking news team at Forbes covering money and markets.

Source: Reopening Stocks Lead The Market Higher After Strong Jobs Report, Pfizer Announcement

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“History of the NY Stock Exchange”. Library of Congress. May 2004.

Investors Buy Oil on Inflation Fears, Pushing Prices Even Higher

Luc Filip doesn’t work at a big energy company or an industrial manufacturer. He isn’t a day trader or an OPEC official. But he is still helping drive the surge in oil prices.

Mr. Filip is head of investments at SYZ Private Banking in Switzerland, and his big concern is inflation taking a bite out of the $28.5 billion of clients’ investments he manages. So he has been buying oil.

Fund managers like Mr. Filip are contributing to a rally that has pushed oil prices to their highest level since the 2014 energy bust. While energy-futures markets are more typically the province of producers and commodities-focused hedge funds, an oil rally that shows no signs of slowing is now exerting a pull on traditional money managers who run portfolios of stocks and bonds.

Because commodities prices tend to rise alongside inflation, they can protect investment portfolios against its erosive effects. When combined with other commodities like copper and gold, energy is “quite a decent hedge,” said Mr. Filip, who has been buying energy futures and selling longer-dated bonds that will lose value if inflation turns out to be high for longer than expected.

To be sure, inflation fears aren’t the main driver of the West Texas benchmark’s run from $62 a barrel in August to $85 this week. The Organization of the Petroleum Exporting Countries has stuck to its plan to increase production in small increments. A shortage of natural gas has caused some industrial manufacturers to switch to diesel, which is refined from oil.

Untangling these inputs is hard. But traders and analysts say that some of the recent oil gains could be explained by inflation worries, especially on days with no news about supply that might drive trading by the usual players such as commodities brokers and oil producers.

What the Inflation of the 1970s Can Teach Us Today. The U.S. inflation rate reached a 13-year high recently, triggering a debate about whether the country is entering an inflationary period similar to the 1970s.

In one sign of investors’ interest, money has been pouring into funds that buy energy futures and stocks, accelerating just as inflation fears took center stage this fall. These funds have experienced four straight weeks of inflows for the first time since the spring, with last week’s $753 million the highest weekly total in five months, according to data provider EPFR.

Data from the Commodity Futures Trading Commission showed a rise in speculative buying of crude-oil futures and options in the week to Oct. 19. Bets on $100-a-barrel oil—a price last seen seven years ago—surged earlier this summer. This month, investors have put wagers on $200.

These investors, especially those that are newcomers or buying for ancillary reasons like inflation fears, are taking the risk that a sudden shock could send oil prices plummeting. That happened in the spring of 2020, when demand collapsed due to the Covid-19 pandemic just as Saudi Arabia ramped up production.

What is more, energy is a major contributor to the consumer-price index, the broadest measure of inflation. That means that investing in energy as a hedge against rising prices can be a self-reinforcing cycle: As oil prices rise, so does inflation, which sends money managers like Mr. Filip back to the energy market to reup their protection.

“People buy oil, that boosts inflation expectations, and that can feed on itself,” said Evan Brown, head of asset allocation at UBS Asset Management.

Inflation has gone from an expected and natural consequence of economies emerging from lockdowns to a major source of investor angst. Higher prices eat into yields on fixed-rate bonds and loans. Stocks of companies that can’t as easily pass on higher costs to customers tend to take a hit, too.

Some investors have bet that oil prices could rise to $200 a barrel.

U.S. consumer prices in September rose at a 5.4% annual rate, faster than in August and just below a 30-year high. Germany’s 4.5% annual rate in October was the biggest year-to-year increase since 1993.

Central bankers in the U.S. and Europe say higher prices are likely temporary and will ease as supply-chain delays are resolved and economies work through restart creaks. But investors aren’t so sure. In addition to more traditional inflation hedges, such as bonds whose yields are linked to consumer prices, they are flocking to commodities.


How concerned are you about inflation? Join the conversation below.

Mr. Brown, who helps devise portfolios for some $1.2 trillion of client assets at UBS, is recommending commodity futures, energy stocks and currencies of oil-rich countries such as Russia and Canada. John Roe, head of multiasset funds at Legal & General Investment Management, said he is protecting his investments against runaway prices with Chilean pesos, which are linked to copper prices, and shares in gold miners.

So far the strategy appears to be working. Inflation is rising but so are the prices of energy and many metals. Paul O’Connor, head of multiasset at Janus Henderson, warned that might not last.

Today’s inflation is being driven by gummed-up supply chains that have created shortages of nearly everything, pushing the prices of raw materials higher. But he expects future inflation to be driven more by rising wages, and it is less clear if that would have the same effect on commodity prices. “Quite questionable,” he said of the strategy.

By: Anna Hirtenstein

Anna Hirtenstein is a reporter at The Wall Street Journal in London, covering financial markets. She was previously a reporter at Bloomberg in London, an investment banker at Greentech Capital Advisors in Zurich and has also worked as a field correspondent with a focus on oil in Northern Iraq and West Africa. 

Source: Investors Buy Oil on Inflation Fears, Pushing Prices Even Higher – WSJ


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Ng, Abigail (14 October 2021). “Goldman Sachs says oil prices could be higher for much longer”. CNBC. Retrieved 18 October 2021.

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