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Floods in Europe and China disrupt international delivery, provide chains

The floods in China and Europe are another “body blow” for global supply chains, the CEO of a shipping company told CNBC on Monday.

“Seldom goes a week without something new,” says Tim Huxley, CEO of Mandarin Shipping.

Shipping has already experienced massive disruptions this year. As parts of the world recovered from the pandemic, increased spending resulted in a shortage of containers, causing delays and driving up prices.

In April one of the largest container ships in the world got wedged in the Suez Canal and stopped traffic for almost a week. The waterway is one of the busiest in the world, carrying about 12% of all trade.

In June, a spike in COVID cases in southern China caused further delays in the region’s ports, pushing shipping prices soaring again.

“Broken railway connections” due to floods in Europe

Heavy rains and floods have devastated parts of Western Europe. Some of the worst floods occurred in Germany and Belgium. Parts of Switzerland, Luxembourg and the Netherlands are also affected.

“This will really disrupt the supply chain because the rail links have all been cut,” Huxley told CNBC’s Squawk Box Asia.

These include railways from the Czech Republic and Slovakia to the German ports of Rotterdam and Hamburg, which are “seriously disrupted”.

“And that will delay freight movements back and forth,” he said. “This is going to really mess up the industry.”

Huxley pointed to Thyssenkrupp and stated that the German steel giant could not get any raw materials because of the flooding.

“That will ultimately affect industries like automotive, home appliances and the like,” he said.

S&P Global Platts reported, citing a customer letter, that Thyssenkrupp had declared force majeure on July 16. A force majeure event occurs when unforeseeable circumstances, such as natural disasters, prevent a party from fulfilling its contractual obligations and release it from sanctions.

A source at the company’s plants told S&P Global Platts that parts of the railroad in Hagen were “missing”, adding that it was even more difficult than before to get trucks for delivery. Hagen is a city in western Germany that has been hardest hit by the floods.

Floods in inland Henan cut the supply of wheat and coal

The disruption caused by the floods in China’s Henan Province, meanwhile, is made worse by the province’s being inland, Huxley said.

Read more about China from CNBC Pro

The interruption of the railway will again have “great effects”, he said.

“Of course that will affect the shipping, that will increase the shipping costs,” said Huxley.

The distribution of wheat and coal is affected, said Huxley, who pointed out that Henan is China’s “bread basket” and has produced 38 million tons of wheat this summer.

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N.Y.C. to Require Metropolis Staff to Be Vaccinated by Mid-September

Attempts to get Americans vaccinated accelerated on Monday when the most populous state and largest city in the United States announced it would require its employees to be vaccinated against the coronavirus or have frequent testing.

All New York City urban workers, including police officers and teachers, as well as all state and local public and private health workers in California, must be vaccinated or tested at least weekly.

The Department of Veterans Affairs also became the first federal agency to order some of its employees vaccinated on Monday.

The mandates are the most dramatic response yet to the sluggish pace of vaccination across the country given the highly contagious Delta variant ripping through communities with low vaccination rates and one by federal health officials as a “pandemic of the unvaccinated.”

According to federal data, only 49 percent of people in the United States are fully vaccinated.

Misinformation and skepticism have haunted the launch of the vaccine, and in recent weeks coronavirus infections and hospital admissions have risen, with the number of new cases per day quadrupling in the past month.

Yet all three indicators are well below last winter’s devastating winter peaks, and vaccines have proven to be very effective protection against the coronavirus. Cities, private employers and other institutions are increasingly turning to mandates to ensure that more people are vaccinated.

Hospitals and health systems like New York-Presbyterian and Trinity Health have announced vaccination mandates and in some cases sparked union protests. The National Football League announced that it would punish teams with players who fail to be vaccinated. Delta Air Lines requires that new employees be vaccinated, but not current employees. And last week, a federal judge ruled that Indiana University could require vaccinations for students and staff.

New York City will require its approximately 340,000 urban workers to be vaccinated against the coronavirus or undergo weekly tests until schools reopen in mid-September, Mayor Bill de Blasio said.

The new California requirement, which will apply to approximately 246,000 state workers and many more healthcare workers, will be implemented by Aug. 23, Governor Gavin Newsom said.

At the VA, one of the largest federal employers and the largest integrated health system in the country, government officials said 115,000 frontline health workers will have to get vaccinated over the next two months. “I’m doing this because it’s the best way to protect our veterans, period,” said Denis McDonough, the veterans affairs secretary, in a telephone interview on Monday.

Eliza Shapiro, Dan Levin and Shawn Hubler contributed to the coverage.

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Ryanair Q1 2022 earnings

LONDON — Low-cost airline Ryanair said Monday that it’s still facing a “challenging” environment and that it might finish the fiscal year “somewhere between a small loss and breakeven” as Covid-19 restrictions linger.

The Irish firm reported a 273 million euro ($322 million) loss for the period between April and June, as lockdowns meant most flights over the Easter period were canceled and with European nations being cautious over the easing of travel restrictions. The figure beat a forecast from analysts which was compiled by the company.

In comparison, the airline posted a 185 million euro loss over the same first-quarter period a year ago.

“Covid-19 continued to wreak havoc on our business,” Ryanair CEO Michael O’Leary said in a statement Monday.

At the same time, operating costs also increased, deteriorating the company’s balance sheet. Over the year to June, costs rose by 116%, driven mostly by fuel, airport and route charges.

However, O’Leary expects traffic to pick up in the coming weeks.

“We expect traffic to rise from over 5 million in June to almost 9 million in July, and over 10 million in August, as long as there are no further Covid setbacks in Europe,” he said.

However, the outlook is highly dependent on the pandemic and successful vaccination campaigns. According to Our World in Data, in the European Union 46% of the adult population is fully vaccinated against Covid-19. In the U.K., that number is 54.4%.

Ryanair shares are up 42% from a year ago. They traded 2.5% higher in early European deals Monday on the back of the results.

“Ryanair is still at the mercy of the virus and, although a recovery is materializing, the group noted that travel within Europe will be depressed for the foreseeable future,” Laura Hoy, equity analyst at Hargreaves Lansdown, said via email.

“We’re encouraged by the group’s progress, but it may have to toe the precarious line between low fares and high costs for some time.”

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Broadcaster Apologizes for ‘Inappropriate’ Photos Aired Throughout Olympic Parade

For television broadcasters worldwide, the Parade of Nations during the opening of the Olympics can be an exercise in diplomacy and global awareness, with the media resorting to trivia nuggets, athlete profiles, and geopolitical considerations to fill airtime.

However, a South Korean broadcaster has apologized for its selection of “inappropriate” images that appeared alongside the names of several countries during its coverage of the opening ceremony on Friday.

The images were criticized by viewers who said they were offensive or perpetuated stereotypes.

When the contingent of Olympic athletes from Italy entered the Tokyo Olympic Stadium for the Parade of Nations, the broadcaster MBC broadcast a photo of a pizza.

For Norway? A piece of salmon.

Then there was Ukraine, which the station reminded viewers of where the 1986 Chernobyl nuclear disaster occurred, complete with a photo of the doomed power plant.

“The pictures and captions should make it easier for viewers to quickly understand the countries of entry during the opening ceremony,” said MBC in a statement published on Twitter on Saturday. “However, we admit that there has been a lack of consideration for the affected countries and the inspection has not been thorough enough. It is an unforgivable mistake. “

Raphael Rashid, a freelance journalist from Seoul, shared the pictures on Twitter.

“When Haitian athletes entered the stadium, the screen said, ‘The political situation is obscured by the assassination of the president,'” Rashid wrote. “When Syrian athletes walked in, it was said, ‘Rich underground resources; a civil war that has been going on for 10 years. ‘”

For Romania, the station used a picture of Count Dracula. And for the Marshall Islands, it found that it had once been a nuclear test site for the United States.

When it was Malaysia’s turn in the Parade of Nations, MBC showed a graph showing that country’s coronavirus vaccination rate along with its gross domestic product.

In its statement, MBC said it would look into the process of how the images and their accompanying captions were selected and verified.

“We will also thoroughly review the production system of sports programs in order to avoid similar accidents in the future,” said the broadcaster.

The Korea Herald reported that this was not the first time MBC went wrong during the Olympics.

In 2008, according to the news website, the station was fined by the Korea Communications Commission for using its captions to belittle countries participating in the Beijing Olympics. The station described Sudan as an unstable country with a long civil war and Zimbabwe as a country with deadly inflation.

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Inventory futures maintain regular forward of an enormous week of Large Tech earnings

Traders working on the New York Stock Exchange (NYSE) today, Wednesday, April 21, 2021.

Source: NYSE

Stock futures opened little changed after major averages closed the previous session with record closing highs and a busy week ago with earnings reports from the tech’s biggest hits.

The Dow Jones Industrial Average was down 5 points, or 0.01%. S&P 500 and Nasdaq 100 futures were down 0.03% and 0.01%, respectively.

In the previous session, the Dow rose 238.20 points, or 0.68%, to 35,061.55. The S&P 500 gained 1.01% to 4,411.79 and the Nasdaq Composite rose 1.04% to 14,836.99.

All three major averages closed at record highs last week after markets slumped earlier in the week on concerns about the spread of the Delta variant of Covid and the potential hindrance to economic recovery. Uncertainty caused bond yields to decline briefly and investors moved into tech stocks. Both bonds and stocks rallied quickly by the end of the week.

Tech stocks rose last week on better-than-expected earnings reports for the second quarter as well as the continued proliferation of the Delta variant. Twitter and Snap both rose Thursday after better-than-expected earnings reports for the second quarter. Twitter finished 3% higher on Friday while Snap shot up 24%.

One of the busiest weeks with results reports is on deck next week, and Tesla is kicking off after the closing bell. Last week, CEO Elon Musk said the automaker would likely accept bitcoin for vehicle purchases again.

Big tech giants Apple, Alphabet and Microsoft will be reporting on Tuesday, and Google, Facebook and Amazon will be reporting later in the week as well.

Investors will follow the Fed’s two-day monetary policy meeting starting Tuesday. The Federal Reserve Open Market Committee and Board of Governors are expected to issue a policy statement on Wednesday. On Thursday the Ministry of Commerce will publish the GDP data for the second quarter.

On Monday morning, the US Department of Housing and Urban Development will release new data on home sales and the Federal Reserve Bank of Dallas will release its monthly business activity index for Texas manufacturing.

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Disinformation for Rent, a Shadow Trade, Is Quietly Booming

In May, several French and German social media influencers received a strange proposal.

A London-based public relations agency wanted to pay them to promote messages on behalf of a client. A polished three-page document detailed what to say and on which platforms to say it.

But it asked the influencers to push not beauty products or vacation packages, as is typical, but falsehoods tarring Pfizer-BioNTech’s Covid-19 vaccine. Stranger still, the agency, Fazze, claimed a London address where there is no evidence any such company exists.

Some recipients posted screenshots of the offer. Exposed, Fazze scrubbed its social media accounts. That same week, Brazilian and Indian influencers posted videos echoing Fazze’s script to hundreds of thousands of viewers.

The scheme appears to be part of a secretive industry that security analysts and American officials say is exploding in scale: disinformation for hire.

Private firms, straddling traditional marketing and the shadow world of geopolitical influence operations, are selling services once conducted principally by intelligence agencies.

They sow discord, meddle in elections, seed false narratives and push viral conspiracies, mostly on social media. And they offer clients something precious: deniability.

“Disinfo-for-hire actors being employed by government or government-adjacent actors is growing and serious,” said Graham Brookie, director of the Atlantic Council’s Digital Forensic Research Lab, calling it “a boom industry.”

Similar campaigns have been recently found promoting India’s ruling party, Egyptian foreign policy aims and political figures in Bolivia and Venezuela.

Mr. Brookie’s organization tracked one operating amid a mayoral race in Serra, a small city in Brazil. An ideologically promiscuous Ukrainian firm boosted several competing political parties.

In the Central African Republic, two separate operations flooded social media with dueling pro-French and pro-Russian disinformation. Both powers are vying for influence in the country.

A wave of anti-American posts in Iraq, seemingly organic, were tracked to a public relations company that was separately accused of faking anti-government sentiment in Israel.

Most trace to back-alley firms whose legitimate services resemble those of a bottom-rate marketer or email spammer.

Job postings and employee LinkedIn profiles associated with Fazze describe it as a subsidiary of a Moscow-based company called Adnow. Some Fazze web domains are registered as owned by Adnow, as first reported by the German outlets Netzpolitik and ARD Kontraste. Third-party reviews portray Adnow as a struggling ad service provider.

European officials say they are investigating who hired Adnow. Sections of Fazze’s anti-Pfizer talking points resemble promotional materials for Russia’s Sputnik-V vaccine.

For-hire disinformation, though only sometimes effective, is growing more sophisticated as practitioners iterate and learn. Experts say it is becoming more common in every part of the world, outpacing operations conducted directly by governments.

The result is an accelerating rise in polarizing conspiracies, phony citizen groups and fabricated public sentiment, deteriorating our shared reality beyond even the depths of recent years.

The trend emerged after the Cambridge Analytica scandal in 2018, experts say. Cambridge, a political consulting firm linked to members of Donald J. Trump’s 2016 presidential campaign, was found to have harvested data on millions of Facebook users.

The controversy drew attention to methods common among social media marketers. Cambridge used its data to target hyper-specific audiences with tailored messages. It tested what resonated by tracking likes and shares.

The episode taught a generation of consultants and opportunists that there was big money in social media marketing for political causes, all disguised as organic activity.

Some newcomers eventually reached the same conclusion as Russian operatives had in 2016: Disinformation performs especially well on social platforms.

At the same time, backlash to Russia’s influence-peddling appeared to have left governments wary of being caught — while also demonstrating the power of such operations.

“There is, unfortunately, a huge market demand for disinformation,” Mr. Brookie said, “and a lot of places across the ecosystem that are more than willing to fill that demand.”

Commercial firms conducted for-hire disinformation in at least 48 countries last year — nearly double from the year before, according to an Oxford University study. The researchers identified 65 companies offering such services.

Last summer, Facebook removed a network of Bolivian citizen groups and journalistic fact-checking organizations. It said the pages, which had promoted falsehoods supporting the country’s right-wing government, were fake.

Stanford University researchers traced the content to CLS Strategies, a Washington-based communications firm that had registered as a consultant with the Bolivian government. The firm had done similar work in Venezuela and Mexico.

A spokesman referred to the company’s statement last year saying its regional chief had been placed on leave but disputed Facebook’s accusation that the work qualified as foreign interference.

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New technology enables nearly anyone to get involved. Programs batch generate fake accounts with hard-to-trace profile photos. Instant metrics help to hone effective messaging. So does access to users’ personal data, which is easily purchased in bulk.

The campaigns are rarely as sophisticated as those by government hackers or specialized firms like the Kremlin-backed Internet Research Agency.

But they appear to be cheap. In countries that mandate campaign finance transparency, firms report billing tens of thousands of dollars for campaigns that also include traditional consulting services.

The layer of deniability frees governments to sow disinformation more aggressively, at home and abroad, than might otherwise be worth the risk. Some contractors, when caught, have claimed they acted without their client’s knowledge or only to win future business.

Platforms have stepped up efforts to root out coordinated disinformation. Analysts especially credit Facebook, which publishes detailed reports on campaigns it disrupts.

Still, some argue that social media companies also play a role in worsening the threat. Engagement-boosting algorithms and design elements, research finds, often privilege divisive and conspiratorial content.

Political norms have also shifted. A generation of populist leaders, like Rodrigo Duterte of the Philippines, has risen in part through social media manipulation. Once in office, many institutionalize those methods as tools of governance and foreign relations.

In India, dozens of government-run Twitter accounts have shared posts from India Vs Disinformation, a website and set of social media feeds that purport to fact-check news stories on India.

India Vs Disinformation is, in reality, the product of a Canadian communications firm called Press Monitor.

Nearly all the posts seek to discredit or muddy reports unfavorable to Prime Minister Narendra Modi’s government, including on the country’s severe Covid-19 toll. An associated site promotes pro-Modi narratives under the guise of news articles.

A Digital Forensic Research Lab report investigating the network called it “an important case study” in the rise of “disinformation campaigns in democracies.”

A representative of Press Monitor, who would identify himself only as Abhay, called the report completely false.

He specified only that it incorrectly identified his firm as Canada-based. Asked why the company lists a Toronto address, a Canadian tax registration and identifies as “part of Toronto’s thriving tech ecosystem,” or why he had been reached on a Toronto phone number, he said that he had business in many countries. He did not respond to an email asking for clarification.

A LinkedIn profile for Abhay Aggarwal identifies him as the Toronto-based chief executive of Press Monitor and says that the company’s services are used by the Indian government.

A set of pro-Beijing operations hint at the field’s capacity for rapid evolution.

Since 2019, Graphika, a digital research firm, has tracked a network it nicknamed “Spamouflage” for its early reliance on spamming social platforms with content echoing Beijing’s line on geopolitical issues. Most posts received little or no engagement.

In recent months, however, the network has developed hundreds of accounts with elaborate personas. Each has its own profile and posting history that can seem authentic. They appeared to come from many different countries and walks of life.

Graphika traced the accounts back to a Bangladeshi content farm that created them in bulk and probably sold them to a third party.

The network pushes strident criticism of Hong Kong democracy activists and American foreign policy. By coordinating without seeming to, it created an appearance of organic shifts in public opinion — and often won attention.

The accounts were amplified by a major media network in Panama, prominent politicians in Pakistan and Chile, Chinese-language YouTube pages, the left-wing British commentator George Galloway and a number of Chinese diplomatic accounts.

A separate pro-Beijing network, uncovered by a Taiwanese investigative outlet called The Reporter, operated hundreds of Chinese-language websites and social media accounts.

Disguised as news sites and citizen groups, they promoted Taiwanese reunification with mainland China and denigrated Hong Kong’s protesters. The report found links between the pages and a Malaysia-based start-up that offered web users Singapore dollars to promote the content.

But governments may find that outsourcing such shadowy work also carries risks, Mr. Brookie said. For one, the firms are harder to control and might veer into undesired messages or tactics.

For another, firms organized around deceit may be just as likely to turn those energies toward their clients, bloating budgets and billing for work that never gets done.

“The bottom line is that grifters are going to grift online,” he said.

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Air-con and local weather change: Begin-ups making an attempt to assist

This June was the hottest in American history. The 116-degree heat melted power cables in Portland, Oregon, and smashed previous temperature records. Seattle recorded an all-time high of 108 degrees, as did the Canadian province of British Columbia, at a whopping 121 degrees.

As the world warms, more people are installing air conditioning. Global energy demand for cooling has more than tripled since 1990 and could more than double between now and 2040 without stricter efficiency standards.

But air conditioning itself is a major contributor to global warming. Altogether, building operations that include heating, cooling and lighting account for 28% of the world’s total greenhouse gas emissions. That’s more than the entire global transportation sector.

But SkyCool, Gradient and a number of other companies are working on the problem. They’re trying to apply new technologies to the traditionally inflexible heating and cooling industry, finance the upfront costs, communicate the value to property owners and make sure it’s all done equitably. 

Watch the video to learn more.

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Tokyo Olympics Open to a Sea of Empty Seats

TOKYO – The athletes marched into the arena masked and waving exuberantly. Dancers in pastel costumes and hats clapped and raised their arms in the air to create excitement. But there were no fans and no cheering audience – just row after row of mostly empty seats that stretched into the vastness of the huge Olympic Stadium in central Tokyo.

A year after initial planning, the opening ceremony of the 32nd Summer Olympics took place amid a persistent pandemic, with attendance limited to fewer than 1,000 dignitaries and other invited guests in a 68,000-seat stadium.

The Japanese public is exhausted from the pandemic and has widely spoken out against the Games. But the ceremony attempted to project a world that continued after more than a year of battling the virus when confetti pigeons fell from the sky and a rendition of “Imagine” on jumbotrons with performances by Angélique Kidjo, John. Legend and Keith Urban echoed through the huge stadium.

The organizers sprinkled traditional Japanese culture through the celebrations and staged a typical summer festival with lanterns and a taiko drum soundtrack as well as an excerpt from a famous kabuki piece.

In a different way, they took a more modern perspective, choosing Naomi Osaka, Japan’s most famous athlete to light the Olympic cauldron, and Rui Hachimura, the basketball star who plays for the Washington Wizards, as one of the standard bearers for Japan. They are just two of several mixed race athletes who represent a largely homogeneous Japan at the Olympics.

Although some competitions began earlier this week, the ceremony on Friday marked the official start of the Olympic Games. More than 11,000 athletes from 205 countries are expected to compete in 33 sports over the next two weeks.

Almost all events, such as the opening ceremony, take place without spectators and the athletes compete according to strict protocols that restrict their freedom of movement.

Usually it is the Olympians who face significant odds, but this time it was the organizers who fought an uphill battle to get that moment. What was intended as a showcase for Japan’s brilliant efficiency, superior service culture and attractiveness as a tourist destination has instead been inundated by fears of infection and scandals by the host committee.

The opening ceremony is often the host country’s chance to showcase itself – think Beijing’s regulated drummers in 2008 or London’s National Health Service dancing nurses four years later. But the Tokyo organizers put on a darker show.

In a moment of silence, a spokesman urged viewers around the world to remember the Covid-19 losers and athletes who died in previous Olympics, including the Israeli athletes who died in a terrorist attack at the 1972 Munich Games were killed.

Although it was first mentioned in the organizers’ speeches, the ceremony relied on the original version of Tokyo’s Olympic bid as a symbol of the country’s recovery from the devastating earthquake, tsunami and nuclear disaster in Fukushima in 2011. A single figure dressed in white and ghostly make-up danced on a platform in the middle of the field, while waves of light swept through the stadium.

And with illuminated drones over the stadium forming a giant spinning globe, the organizers were clearly trying to divert the Games’ message from the pandemic and scandals and towards the more anodyne issues of peace and global harmony.

But that message may have little resonance from the Japanese public as coronavirus infections in Tokyo have soared to a six-month high and domestic vaccine adoption is slow.

In quieter moments during the ceremony, demonstrators could be heard outside the stadium shouting “Stop the Olympics” through megaphones.

“I can’t really think of any real meaning or significance as to why we’re doing all of this,” said Kaori Hayashi, professor of sociology and media studies at Tokyo University. “We started recovering Fukushima, but that has been completely forgotten. And now we want to show the world that we have overcome Covid-19, but we have not yet overcome it. “

Updated

July 24, 2021, 8:42 p.m. ET

While the pandemic has presented the organizers of the Games with an unprecedented challenge, it was far from the only one.

Just a day before the opening ceremonies, the organizing committee sacked the ceremony’s creative director after it was discovered that he joked about the Holocaust during a television comedy years ago.

His discharge came just days after a composer resigned for the ceremony – and organizers withdrew a four-minute piece he had written – in response to a loud social media campaign criticizing him for being during had bullied severely disabled classmates during his school days.

And these were just the latest in a long line of setbacks.

Two years after the award, the government decided against an elegant stadium design by the famous architect Zaha Hadid for reasons of cost. The organizers had to abolish their first logo after allegations of plagiarism. The French public prosecutor’s office has charged the President of the Japanese Olympic Committee with allegations of corruption in connection with the application process. For fear of extreme heat in Tokyo, the International Olympic Committee moved the marathon to Sapporo on the North Island of Japan, 500 miles from the Olympic Stadium. And the president of the Tokyo Organizing Committee had to resign after sexist statements.

While the decision to move the Games forward amid a pandemic has drawn attention to the billions of dollars at stake for the International Olympic Committee, the international spotlight has been tough for Japan at times.

The year-long delay in the games exposed social issues such as sexism in a country where almost all top jobs are held by older men, as well as the conservative government’s opposition to gay and transgender rights.

But now that the Games are finally here, the sheer spectacle of the world’s greatest sporting event began to brush these issues aside.

Basics of the Summer Olympics

The night before the opening ceremony, Aya Kitamura, 37, a traditional Japanese musician, cycled to the Olympic Stadium to stake out the best vantage point from outside the venue.

“Of course, I understand that there are many opinions about the Olympics,” said Ms. Kitamura, who said her parents often shared stories about the 1964 Tokyo Olympics. “But as the games get closer, I think everyone gets a little more excited every day.”

The near absence of spectators disappointed some who said they did not understand why the Olympic Games are different from other recent sporting events with large crowds in Europe, where infection rates are still higher than in Japan.

“It’s kind of unfair that only a limited number of people can see the opening ceremony,” said Hinako Tamai, 19, an Olympic volunteer who took the media to the stadium on Friday night. “But there’s not much we can do about Covid.”

Among the hundreds of people seated in the $ 1.4 billion Olympic Stadium at the opening ceremony on Friday was Japan’s Emperor Naruhito, who officially opened the Games; the American first lady Jill Biden; President Emmanuel Macron of France, whose capital Paris will host the next Summer Games in 2024; and Tedros Adhanom Ghebreyesus, the director general of the World Health Organization.

But several high profile potential attendees said they would not be in attendance, including Akio Toyoda, the executive director of Toyota, a prominent Olympic sponsor who had voted against Olympic television advertising in Japan. Shinzo Abe, the former prime minister who helped Tokyo secure the application for the Games, also decided to stay away.

Several foreign dignitaries, including Princess Anne of England and the United Nations Secretary-General António Guterres, chose not to come, citing coronavirus restrictions. South Korean President Moon Jae-in canceled a planned visit after being insulted by a Japanese diplomat.

Even if the Olympics doesn’t turn out to be a superspread event, it will be difficult for them to escape the shadow of the pandemic as the Delta variant spreads and the daily numbers of new cases in the Olympic Village add to the fear.

“I really feel that no matter what, the pandemic is creating the impression that money is putting money above public health,” said Jessamyn R. Abel, Associate Professor of Asian Studies at Pennsylvania State University.

And the fanfare of the games can only go so far with a cautious audience. Kentaro Tanaka, 28, an adviser in Tokyo who was walking his dog near the Olympic Stadium the night before it opened, said he likes football and plans to watch the Games but questioned authorities’ priorities.

“Aren’t there other things the government needs to work on?” said Mr Tanaka, before wondering aloud when he could finally get a vaccination appointment.

Hikari Hida contributed to the coverage.

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The U.S. is deciding how to reply to China’s digital yuan

China is beating the U.S. when it comes to innovation in online money, posing challenges to the U.S. dollar’s status as the de facto monetary reserve. Nearly 80 countries — including China and the U.S. — are in the process of developing a CBDC, or Central Bank Digital Currency. It’s a form of money that’s regulated but exists entirely online. China has already launched its digital yuan to more than a million Chinese citizens, while the U.S. is still largely focused on research.

The two groups tasked with this research in the U.S., MIT’s Digital Currency Initiative and the Federal Reserve Bank of Boston, are parsing out what a digital currency might look like for Americans. Privacy is a major concern, so researchers and analysts are observing China’s digital yuan rollout.

“I think that if there is a digital dollar, privacy is going to be a very, very important part of that,” said Neha Narula, director of the Digital Currency Initiative at the MIT Media Lab. “The United States is pretty different than China.”

Another concern is access. According to the Pew Research Center, 7% of Americans say they don’t use the internet. For Black Americans, that rises to 9%, and for Americans over the age of 65, that rises to 25%. Americans with a disability are about three times as likely as those without a disability to say they never go online. That is part of what MIT is researching.

“Most of the work that we’re doing assumes that CBDC will coexist with physical cash and that users will still be able to use physical cash if they want to,” Narula said.

The idea of a CBDC in the U.S. is aimed, in part, at making sure the dollar stays the monetary leader in the world economy.

“The United States should not rest on its current leadership in this area. It should push ahead and develop a clear strategy for how to remain very strong and take advantage of the strength of the dollar,” said Darrell Duffie, professor of finance at Stanford University’s Graduate School of Business.

Others see the digital yuan as insidious.

“The digital yuan is the largest threat to the West that we’ve faced in the last 30, 40 years. It allows China to get their claws into everyone in the West and allows them to export their digital authoritarianism,” said Kyle Bass of Hayman Capital Management.

Watch CNBC’s deep dive video into CDBCs to learn more.

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Japan’s Various Olympic Stars Mirror a Nation That’s Altering (Slowly)

But Tokyo itself remains remarkably monochromatic. According to the city government, only about 4 percent of residents were born outside Japan – about twice as many as in the country. (In contrast, more than 35 percent of London and New York residents were born abroad.)

Marie Nakagawa, a former Senegalese-Japanese model, said she felt like a “foreigner” who grew up in Japan. Even today, she regularly endures shouts from men saying she is a doorbell for Ms. Osaka, whose advocacy for racial justice has forced the country to confront a problem that many here think does not apply to her.

Basics of the Summer Olympics

“I hear experts say all the time that things have changed since Naomi Osaka, but the tyrants are still the same,” Ms. Nakagawa said. “You weren’t reeducated.”

In 2019, when Ms. Osaka won her second Grand Slam at the Australian Open, Nissin featured her pale skin and brown hair in a marketing cartoon, leading to whitewash allegations.

“It’s obvious that I’m tanned,” Ms. Osaka replied. Nissin apologized.

Takeshi Fujiwara, a sprinter who specializes in the 400 meters, grew up in El Salvador, where his Japanese name raised his eyebrows. His mother is from there and his father is Japanese. Even after Mr. Fujiwara took part in the Olympic Games in Athens for El Salvador, the whispers about his nationality continued.

In 2013 he switched his loyalty to Japan and moved to his father’s homeland. The greeting was not immediate, he said, even if people commented positively on his “macho-macho” muscles.

“When I came to Japan, I thought, ‘Hey, I’m here in my country.’ They said, ‘Hey, where are you from?’ ”Said Mr. Fujiwara. “It’s gotten better, but we’re still a long way from a place where multiracial Japanese are considered normal.”