law firms, consultants, insurance agents and accountants specializes in helping clients jump through regulatory hoops. A listing service that is the industry’s answer to Zillow offers a wide range of real estate, from $65,000 lots in an industrial park in Lexington, Okla., to a $109 million, 45,000-square-foot grow house in San Bernardino, Calif.

The brick-and-mortar side of cannabis real estate has also evolved.

As cultivation of marijuana has become more sophisticated, grow houses have expanded — they can be 150,000 square feet or more, with high ceilings, heavy-duty ventilation, lighting and security. Processing typically occurs in separate buildings with high-tech machinery.

dispensaries are increasingly stylish, offering a rarefied retail experience. Accomplished architecture and design firms have gotten into the act. There are even companies that specialize in kitting out dispensaries and other cannabis real estate.

And as marijuana gains broader public acceptance — and some celebrity glamour, with Jay-Z’s Monogram and Seth Rogen’s Houseplant — stores are opening in prominent locations near traditional retailers.

“We’re next to Starbucks in downtown Chicago,” Mr. Rutherford said. “In Philadelphia, the store we’re opening is a half block from Shake Shack and down the block from Macy’s.”

“We are building a portfolio of sites that would be enviable by any retail organization,” he added.

The New York State law also provides for licenses for “consumption sites,” and this is expected to give rise to clublike lounges and cannabis cafes. The prospect of such convivial settings has led to predictions that New York City may become the next Amsterdam.

These new storefront uses would appear to be a godsend for New York’s retail real estate market, where availability has increased and rents have fallen.

“A few years ago, when the market was stronger, it was harder to find landlords willing to play ball,” said Benjamin S. Birnbaum, a broker at the real estate services firm Newmark. “What’s changed, because of the pandemic, is that every landlord is willing to talk about it.”

in a recent CNBC interview.

Regardless of size, opening a dispensary can be complicated and expensive, in part because states have required that would-be retailers have control of a site, through a lease or option to lease, before they can apply for a license. But the number of licenses in some states is limited, with no guarantee a business will get one.

In Oregon, some applicants had to wait so long — one or two years, said Andrew DeWeese, a lawyer with Green Light Law Group in Portland — they eventually gave up and essentially sold their place in line.

“It’s a Catch-22,” said Kristin Jordan, a cannabis lawyer in New York City. “You want to secure real estate, but you don’t want to jump the gun.”

Still, the prospect of operating in New York, a state with more than 19 million residents and a major tourist destination, is so enticing that cannabis companies are getting their ducks in row.

Companies that have medical dispensaries, which have been operating since 2016, are in an enviable position because it is believed they will have an advantage in securing additional licenses.

Cresco Labs has four medical dispensaries in New York, including one in the Williamsburg neighborhood of Brooklyn. It is unclear whether the state will allow recreational marijuana to be sold at those locations, but Mr. Rutherford is hedging his bets, adding parking and in some cases expanding by leasing a storefront next door to an existing space.

“We are making sure those stores are ready for the future adult use market,” he said.

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Europe’s Economy Shrank in First Quarter, Revealing a Recession: Live Updates

United States disclosed that its economy expanded 1.6 percent over the same period, the European downturn presented a contrast of fortunes on opposite sides of the Atlantic.

Propelled by dramatic public expenditures to stimulate growth, as well as swift increases in vaccination rates, the United States — the world’s largest economy — expanded rapidly during the first months of 2021. At the same time, the 19 nations that share the euro currency were caught in the second part of a so-called double-dip recession, reflecting far less aggressive stimulus spending and a botched effort to secure vaccines.

But figures for gross domestic product represent a snapshot of the past, and recent weeks have produced encouraging signs that Europe is on the mend. The alarming spread of Covid-19 in major economies like Germany and France has begun to trend downward, factories have revived production, while growing numbers of people are on the move in cities.

Even as the German economy diminished by 1.7 percent from January to March, Italy and Spain slipped by much smaller magnitudes — 0.4 percent and 0.5 percent respectively. The French economy grew by a modest 0.4 percent, though its prospects face a fresh challenge in the form of new pandemic restrictions imposed this month by the government.

The initial lockdowns last year punished Europe’s economies, bringing large swaths of commercial life to a halt. But the current restrictions are calibrated to reflect improved understanding of how the virus spreads. Rather than closing their doors altogether, restaurants in some countries are serving meals on patios and dispensing takeout orders. Roofers, carpenters and other skilled trades have resumed work, so long as they can stay outside.

“We have sort of learned to live with the pandemic,” said Dhaval Joshi, chief strategist at BCA Research in London. “We are adapting to it.”

Vaccination rates are increasing throughout Europe, a trend likely to be advanced by the European Union’s recent deal to secure doses from Pfizer.

Most economists and the European Central Bank expect the eurozone to expand at a blistering pace over the rest of 2021, yielding growth of more than 4 percent for the full year.

Still, even in the most hopeful scenario, Europe’s recovery is running behind the United States, a reflection of their differing approaches to economic trauma.

Since last year, the United States has unleashed additional public spending worth 25 percent of its national economic output for pandemic-related stimulus and relief programs, according to the International Monetary Fund. That compares to 10 percent in Germany.

But Europe also began the crisis with far more comprehensive social safety net programs. While the United States directed cash to those set back by the pandemic, Europe limited a surge in unemployment.

“Europe has more insurance schemes,” said Kjersti Haugland, chief economist at DNB Markets, an investment bank in Oslo. “You don’t fall as hard, but you don’t rebound that sharply either.”

Exxon reported a $2.7 billion profit in the first three months of the year, thanks to rising production and higher chemical prices.
Credit…Lee Celano/Reuters

Exxon Mobil and Chevron, the two biggest oil companies in the United States, on Friday reported their first quarterly profits after several quarters of losses, signaling that the energy industry is rebounding from the coronavirus pandemic.

Oil prices have climbed in recent months and are now roughly where they were before the pandemic’s full force was felt. As a result, Exxon reported a $2.7 billion profit in the first three months of the year, compared with a loss of $610 million in the same period a year ago. Chevron said its profit was $1.4 billion, down from $3.6 billion a year earlier. Chevron this week raised its dividend by nearly 4 percent.

The American oil benchmark price, now around $64 a barrel, has tripled since last April. Natural gas prices have also strengthened during the recovery.

“The strong first quarter results reflect the benefits of higher commodity prices and our focus on structural cost reductions,” Darren Woods, Exxon’s chief executive, said in a statement.

Only six months ago, many analysts warned that Exxon would have to cut its dividend, but now the shareholder payout appears safe because of rising production and higher chemical prices. Exxon this month reported yet another in a string of big oil discoveries off the coast of Guyana, one of its most important growth areas.

At Chevron, sales and other revenue in the quarter increased to $31 billion, $1 billion more than the year-ago quarter.

“Earnings strengthened primarily due to higher oil prices as the economy recovers,” said Mike Wirth, Chevron’s chief executive.

Both companies suffered losses from the severe Texas freeze in February. Exxon reported that lost sales and repairs cost the company nearly $600 million. Chevron said its results were weakened by $300 million in lost oil and refining production and repairs.

Volkswagen wanted to have a little fun when it introduced the all-electric ID.4 to the United States in March. The Securities and Exchange Commission wasn’t laughing.
Credit…Bryan Derballa for The New York Times

Volkswagen’s American unit was only kidding when it put out the word late in March that it was changing its name to “Voltswagen” to show its commitment to electric vehicles. To say the April Fool’s joke didn’t land is an understatement. Now the misfired marketing gag has prompted an inquiry by the Securities and Exchange Commission.

Volkswagen did not dispute reports in Der Spiegel and other German media that the S.E.C. was looking into whether the carmaker misled shareholders with the faux rebranding. Volkswagen in Germany declined to comment Friday.

Publicly listed companies are not supposed to fool their shareholders, even in jest. Some media reported the purported name change as fact until Volkswagen of America admitted it was all a joke.

German law also requires companies to be honest with their shareholders, but a spokeswoman for the stock market regulator, known as Bafin, said the agency saw no basis to investigate the Voltswagen issue.

It is unlikely that Volkswagen will face a serious penalty if the S.E.C. finds a violation, at least not compared to the tens of billions of dollars that an emissions scandal has cost the company since 2015. The gag does not appear to have had any influence on the price of Volkswagen shares, which rose for several days even after the company admitted it was all a ruse.

Like a comedian bombing onstage, the most painful consequence may be the humiliation.

Comments from Marin. J. Wash, the labor secretary, on gig workers sent shares of Uber, Lyft, Fiverr and DoorDash down sharply.
Credit…Pool photo by Pat Greenhouse/EPA, via Shutterstock

Martin J. Walsh, the labor secretary, said on Thursday that “in a lot of cases” gig workers in the United States should be classified as employees, not independent contractors. “In some cases they are treated respectfully and in some cases they are not, and I think it has to be consistent across the board,” he told Reuters.

Shares of Uber, Lyft, Fiverr and DoorDash fell sharply on the news. These companies’ business models depend on classifying workers as independent contractors, who are not entitled to labor protections like a minimum wage or overtime pay.

But how much control does Mr. Walsh have over how companies classify their employees?

There’s no single law that makes workers employees or contractors. The Labor Department can enforce the Fair Labor Standards Act, which establishes the federal minimum wage and overtime pay. This law applies only to employees, and who should fall into that category has been the subject of a long-running debate.

In 2015, the Obama administration issued guidance that many interpreted to mean that app-based workers should be considered employees. It was rescinded by the Trump administration.

In 2021, the Trump administration issued a rule that would have made it easier for the same companies to classify workers as contractors. It was nixed by the Biden administration. Mr. Walsh’s comments suggest his interpretation will be similar to the Obama administration’s. And David Weil, reportedly President Biden’s nominee to lead the Labor Department’s wage and hour division, wrote the 2015 guidance.

New guidance wouldn’t change the law, but it could change how the Labor Department decides whether to bring lawsuits against gig economy companies. “It’s implicitly a sign to employers that you should comply with this interpretation or there’s a risk of enforcement,” Brian Chen, a staff attorney at the National Employment Law Project, told the DealBook newsletter.

Although such guidance is nonbinding, Benjamin Sachs, a professor at Harvard Law School, said courts “tend to give it deference” when making decisions. “I wouldn’t be surprised if we saw specific action coming from the department sometime this year,” said William Gould, a Stanford law professor and the former chairman of the National Labor Relations Board.

Ari Emanuel, the chief executive of the entertainment conglomerate Endeavor. “We’re platform agnostic, and we serve all parties,” he said of the streaming wars.
Credit…Shannon Stapleton/Reuters

The Endeavor Group, the entertainment conglomerate run by the Hollywood mogul Ari Emanuel, pulled its initial public offering at the last minute in 2019, amid lukewarm interest from investors. Last year posed its own difficulties, with a pandemic that hurt its live events business as well as its talent agency.

But Endeavor finally made its market debut on Thursday, closing the day with a market cap of more than $10 billion. Mr. Emanuel spoke with the DealBook newsletter about what changed — and what comes next.

On why the I.P.O. went ahead this time:

“There was confusion with regard to the U.F.C., so we cleaned that up,” Mr. Emanuel said about the mixed-martial arts league that Endeavor is acquiring full control of with proceeds from the offering. Debt was also a worry before, and the company’s leverage will be reduced with help from a $1.7 billion private placement, with Third Point and Elliot Management among the investors. S&P Global upgraded the company’s credit rating on Thursday.

Endeavor also used the pandemic period to restructure and consolidate, shifting further away from its talent agency roots. And Mr. Emanuel expects its events business, entertainment relationships and intellectual property will help feed a demand for “content in all forms” after the pandemic: “We’re the story about coming out.”

On Endeavor’s role in the streaming wars:

“We’re platform agnostic, and we serve all parties,” Mr. Emanuel said. The broadcasters are spending “huge” amounts to build out their streaming platforms. “I don’t have to do that,” he said. “I just have to supply it.”

On how he met Elon Musk, who is joining Endeavor’s board:

“I definitely cold called. That’s kind of in my nature,” Mr. Emanuel said. “We’ve represented him in some of his endeavors. And then over time, he and I became friendly.”

“He’s also a great entrepreneur, meaning he knows how hard it is to build and run a company,” he added, noting that they often call each other for advice.

On whether he has any concerns about putting Mr. Musk on the board given the Tesla chief’s run-ins with securities regulators:

“No.”

Receiving the AstraZeneca vaccine in Budapest.
Credit…Akos Stiller for The New York Times

The vaccine developed by AstraZeneca and the University of Oxford brought in $275 million in sales from about 68 million doses delivered in the first three months of this year, AstraZeneca reported on Friday.

AstraZeneca disclosed the figure, most of which came from sales in Europe, as it reported its first-quarter financial results. It offers the clearest view to date of how much money is being brought in by one of the leading Covid vaccines.

AstraZeneca, which has pledged not to profit on its vaccine during the pandemic, has been selling the shot to governments for several dollars per dose, less expensive than the other leading vaccines. The vaccine has won authorization in at least 78 countries since December but is not approved for use in the United States.

The vaccine represented just under 4 percent of AstraZeneca’s revenue for the quarter; it was nowhere near the company’s biggest revenue generator. By comparison, the company’s best-selling product, the cancer drug Tagrisso, brought in more than $1.1 billion in sales in the quarter.

AstraZeneca has said it is planning to seek emergency authorization for its vaccine to be used in the United States, even as it has become clear that the doses are not needed. The Biden administration said this week that it would make available to the rest of the world up to 60 million doses of its supply of AstraZeneca shots, pending a review of their quality.

If the company does win authorization from the U.S. Food and Drug Administration, it could help shore up confidence in a vaccine whose reputation been hit by concerns about a rare but serious side effect involving blood clotting. The F.D.A.’s evaluation process is considered the gold standard globally.

Johnson & Johnson, whose vaccine was authorized for emergency use at the end of February, reported last week that its vaccine generated $100 million in sales in the United States in the first three months of the year. The federal government is paying the company $10 a dose. Like AstraZeneca, Johnson & Johnson has pledged to sell its vaccine “at cost” — meaning it won’t profit on the sales — during the pandemic.

Vaccines from Pfizer and Moderna cost more, and neither company has said that it will forego profits. Pfizer has said that it expects its vaccine to bring in about $15 billion in revenue this year; Moderna said it anticipates $18.4 billion in sales.

Both companies are scheduled to report their first-quarter results next week.


By: Ella Koeze·Data delayed at least 15 minutes·Source: FactSet

U.S. stocks fell in early trading on Friday, with the S&P 500 pulling back from a record high reached the day before, as traders closed positions for the end of the month and continued to react to company earnings.

Despite Friday’s decline, the S&P 500 is still on track for a gain of about 5 percent for April, its best monthly showing since November — when stocks rallied nearly 11 percent in the wake of the U.S. presidential election.

The benchmark stock index had hit a record after data showed the American economy grew strongly at the start of the year. Forecasters predict the economy will be back to its prepandemic size by the summer and will help drive global economic growth.

Oil prices fell, with futures on West Texas Intermediate, the U.S. benchmark, dropping more than 2 percent to $63.50 a barrel.

Tesla has been losing market share even as demand for rooftop solar power has grown.
Credit…Caleb Kenna for The New York Times

Tesla’s solar ambitions date to 2015 when it announced that it would sell panels and home batteries alongside its electric cars. A year later, Elon Musk, the company’s chief executive, promised that Tesla’s new shingles would turbocharge installations by attracting homeowners who found solar panels ugly.

After delays, Tesla began rolling out the shingles in a big way this year, but it is already encountering a major problem, Ivan Penn reports for The New York Times.

The company is hitting some customers with price increases before installation that are tens of thousands of dollars higher than earlier quotes, angering early adopters and raising big questions about how Tesla, which is better known for its electric cars, is running its once dominant rooftop solar business.

The shingles remain such a tiny segment of the solar market that few industry groups and analysts bother to track installations.

Tesla is not the only company to pursue the idea of embedding solar cells, which convert sunlight into electricity, in shingles. Dow Chemical, CertainTeed, Suntegra and Luma, among others, have offered similar products with limited success.

But given Mr. Musk’s success with Tesla’s electric cars and SpaceX’s rockets, Tesla’s glass shingles attracted outsize attention. He promised that they would be much better than anything anybody else had come up with and come in a variety of styles so they could resemble asphalt, slate and Spanish barrel tiles to fit the aesthetic of each home.

During a quarterly earnings call on Monday, Mr. Musk insisted that demand for Tesla’s solar roofs “remains strong” even though the company had raised prices substantially. He described the last-minute increases as a teething problem.

Customers are unhappy with the growing pains. Dr. Peter Quint was eager to install Tesla’s solar shingles on his 4,000-square-foot home in Portland, Ore., until the company raised the price to $112,000, from $75,000, in a terse email. When he called Tesla for an explanation, he was put on hold for more than three hours.

“I said, ‘This isn’t real, right?’” said Dr. Quint, whose specialty is pediatric critical care. “The price started inching up. We could deal with that. Then this. At that price, in our opinion, it’s highway robbery.”

The average selling price of Ford models rose 8 percent in the first three months of 2021 compared with a year ago, to $47,858, according to the auto-sales data provider Edmunds.com.
Credit…Mohamed Sadek for The New York Times

In the first months of 2021, what was good for the auto industry was decidedly good for the American economy.

Spending on motor vehicles and parts rose almost 13 percent in the first quarter, making a big contribution to the increase in gross domestic product, the Commerce Department reported Thursday. Strong sales of new and used vehicles were propelled by consumers who had delayed purchases earlier in the pandemic and by others who — because of the virus — wanted to rely less on public transit or shared transportation services like Uber.

Two rounds of stimulus payments since late December were a big factor. Low interest rates, readily available credit, rising home values and stock prices, and strong trade-in values for used models also eased the path for consumers.

In fact, demand in the first quarter was robust enough that the auto industry was able to post healthy results despite a shortage of computer chips that forced temporary shutdowns of many auto plants.

The number of new cars and light trucks sold increased 11 percent from the comparable period a year earlier, to 3.9 million, according to the auto-sales data provider Edmunds.com.

On Wednesday, Ford Motor reported it made a $3.3 billion profit in the quarter, its highest total since 2011. While it produced 200,000 fewer vehicles in the quarter than it had planned, the average selling price of Ford models rose to $47,858, 8 percent higher than in the first quarter a year ago, Edmunds reported.

The combination of strong consumer demand and tight inventories — partly a result of the chip shortage — has produced something of a dream scenario for auto retailers. At AutoNation, the country’s largest chain of dealerships, many vehicles are being sold near or at sticker price even before they arrive from the factory.

“I’ve never seen so much preselling of shipments,” said Mike Jackson, the chief executive. “These vehicles are coming in and going right out.”

In the first quarter, AutoNation’s revenue jumped 27 percent, to $5.9 billion, and the company reported $239 million in profit. That was a turnaround from a loss a year ago, when the pandemic crimped sales and forced AutoNation to close stores.

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‘It’s highway robbery’: Tesla’s price increases on solar shingles irk customers.

Tesla’s solar ambitions date to 2015 when it announced that it would sell panels and home batteries alongside its electric cars. A year later, Elon Musk, the company’s chief executive, promised that Tesla’s new shingles would turbocharge installations by attracting homeowners who found solar panels ugly.

After delays, Tesla began rolling out the shingles in a big way this year, but it is already encountering a major problem, Ivan Penn reports for The New York Times.

The company is hitting some customers with price increases before installation that are tens of thousands of dollars higher than earlier quotes, angering early adopters and raising big questions about how Tesla, which is better known for its electric cars, is running its once dominant rooftop solar business.

The shingles remain such a tiny segment of the solar market that few industry groups and analysts bother to track installations.

Tesla’s electric cars and SpaceX’s rockets, Tesla’s glass shingles attracted outsize attention. He promised that they would be much better than anything anybody else had come up with and come in a variety of styles so they could resemble asphalt, slate and Spanish barrel tiles to fit the aesthetic of each home.

During a quarterly earnings call on Monday, Mr. Musk insisted that demand for Tesla’s solar roofs “remains strong” even though the company had raised prices substantially. He described the last-minute increases as a teething problem.

Customers are unhappy with the growing pains. Dr. Peter Quint was eager to install Tesla’s solar shingles on his 4,000-square-foot home in Portland, Ore., until the company raised the price to $112,000, from $75,000, in a terse email. When he called Tesla for an explanation, he was put on hold for more than three hours.

“I said, ‘This isn’t real, right?’” said Dr. Quint, whose specialty is pediatric critical care. “The price started inching up. We could deal with that. Then this. At that price, in our opinion, it’s highway robbery.”

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Tesla’s Latest Solar Stumble: Big Price Increases

On an October evening five years ago, Elon Musk used a former set for “Desperate Housewives” to show off Tesla’s latest innovation: roof shingles that can generate electricity from the sun without unsightly solar panels.

After delays, Tesla began rolling out the shingles in a big way this year, but it is already encountering a major problem. The company is hitting some customers with price increases before installation that are tens of thousands of dollars higher than earlier quotes, angering early adopters and raising big questions about how Tesla, which is better known for its electric cars, is running its once dominant rooftop solar business.

Dr. Peter Quint was eager to install Tesla’s solar shingles on his 4,000-square-foot home in Portland, Ore., until the company raised the price to $112,000, from $75,000, in a terse email. When he called Tesla for an explanation, he was put on hold for more than three hours.

“I said, ‘This isn’t real, right?’” said Dr. Quint, whose specialty is pediatric critical care. “The price started inching up. We could deal with that. Then this. At that price, in our opinion, it’s highway robbery.”

slashing the price of panels in 2019 has done little to stem the slide.

At the “Housewives” set at Universal Studios in 2016, Mr. Musk, the company’s chief executive, promised that Tesla’s new shingles would turbocharge installations by attracting homeowners who found solar panels ugly. But shingles remain such a tiny segment of the solar market that few industry groups and analysts bother to track installations.

Tesla is not the only company to pursue the idea of embedding solar cells, which covert sunlight into electricity, in shingles. Dow Chemical, CertainTeed, Suntegra and Luma, among others, have offered similar products with limited success.

Tesla’s electric cars and SpaceX’s rockets, Tesla’s glass shingles attracted outsize attention. He promised that they would be much better than anything anybody else had come up with and come in a variety of styles so they could resemble asphalt, slate and Spanish barrel tiles to fit the aesthetic of each home.

solar ambitions date to 2015 when it announced that it would sell panels and home batteries alongside its electric cars. A year later, the company acquired SolarCity, a company run by Mr. Musk’s cousin Lyndon Rive. SolarCity was the leading rooftop solar installer in the United States, but in the last five years Tesla has fallen far behind Sunrun, which became even bigger last year after buying another installer, Vivint.

Tesla has been losing market share even as demand for rooftop solar has increased sharply as panels have become more affordable. In terms of energy-generating capacity, annual installations are about 13 times as great as they were a decade ago, according to the Solar Energy Industries Association.

battery system would cost $63,000. But two weeks before installers were scheduled to show up, an email from the company raised the price to $85,000.

She wanted the system to protect her family from losing electricity when her utility, Pacific Gas & Electric, shuts off power to prevent its equipment from setting off wildfires. She also hoped to lower her electricity bills, which have jumped from about $200 a month to as much as $400 in the four years since her family moved to California from New York.

She sought out Tesla’s shingles because contractors had told her that they could not attach conventional solar panels to her composite roof.

Tesla never offered an adequate explanation for the price change, Ms. Bianchi said, so she canceled the job: “It’s just outrageous.”

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As Economy Rebounds, Manufacturers Face New Hurdles

Matt Guse would hire a dozen machinists — if only he could find them.

The owner of MRS Machining, a maker of precision metal parts in rural Augusta, Wis., Mr. Guse finds business is rebounding so quickly as the pandemic’s effect eases that his 47-worker shop is short-handed.

“I’ve turned down a million dollars’ worth of work in the last two weeks,” he said. “Doing that, it’s hard to go to bed at night when you put your head to the pillow. I have open capacity, but I need more people.”

After a sharp downturn when the pandemic hit last year, factories are humming again. But the recovery’s speed has left employers scrambling. Despite huge layoffs — manufacturing employment initially dropped by 1.4 million — some companies find themselves desperate for workers.

In other cases, shortages of parts like semiconductors and supply chain disruptions have made orders hard to fill and created fresh uncertainty.

orders for durable goods — like cars and appliances — rose half a percentage point in March, prompting Barclays to lift its tracking estimate of economic growth for the first quarter to 1.4 percent, or 5.6 percent at an annualized rate.

On Thursday, the government will release its initial reading on economic growth in the first three months of the year, and manufacturing is expected to be among the bright spots. The consensus of analysts polled by Bloomberg is that the report will show gross domestic product expanded by 1.7 percent, up from 1.3 percent.

At one point, factory production was down substantially because of the pandemic, but it should return to pre-Covid-19 levels by the third quarter of this year, according to Chad Moutray, chief economist for the National Association of Manufacturers.

work in factories. Two decades ago, that figure stood at just over 17 million.

average hourly wage of manufacturing workers is $29.15, while workers in leisure and hospitality, another field that draws people with less education, earn $17.67 an hour.

Mr. Paul hopes that Mr. Biden’s plan to revitalize American manufacturing as part of his larger infrastructure effort will bear fruit.

“He’s pretty serious about some form of industrial policy,” Mr. Paul said, citing the administration’s call for action in making products like semiconductors and electric vehicles. “It may be possible for Biden to do what no president has since manufacturing began its job decline and reverse the losses.”

spending to advance electric vehicles.

The $2 trillion plan, with its focus on rebuilding roads and bridges as well as the electric grid, could help companies like Auburn Manufacturing of Maine, said its chief executive, Kathie Leonard.

“We feed the companies whose products go into infrastructure,” said Ms. Leonard, describing the heat- and fire-resistant fabrics Auburn makes at two factories in central Maine, about a half-hour from Portland. “The infrastructure plan holds promise for companies like us.”

“You have to work at being an optimist,” she said. “We’re not going to hire 25 people, but maybe five. We need to hire a technical director, fabricators, and we need staff to help with e-commerce.”

The semiconductor shortages are a headache for Christie Wong Barrett, chief executive of MacArthur Corporation, a maker of labels and decals outside Flint, Mich. She said orders had been delayed by car companies — her major customers — that couldn’t find enough of the chips they needed to keep cars coming off the assembly lines.

“Customers are struggling to meet launch timelines and production targets,” she said. “Orders are either reduced in volume or delayed. It trickles down to different suppliers, and we’re just getting a haircut across the board.”

MacArthur’s business had already been damaged when auto plants closed a year ago amid the pandemic lockdowns, cutting off demand for labels and decals like those showing tire pressure or indicating vehicle identification numbers.

Ms. Barrett was able to pivot and supply products for medical customers, averting all but a handful of layoffs for her work force of 50. She remains optimistic, despite the current logistical backups.

“It’s a horrible disruption right now, but I’m anticipating a strong recovery,” she said. “We never made major cuts, and as automotive production starts to recover more, I expect to hire several more people in the coming months.”

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Europe Proposes Strict Rules for Artificial Intelligence

The European Union unveiled strict regulations on Wednesday to govern the use of artificial intelligence, a first-of-its-kind policy that outlines how companies and governments can use a technology seen as one of the most significant, but ethically fraught, scientific breakthroughs in recent memory.

The draft rules would set limits around the use of artificial intelligence in a range of activities, from self-driving cars to hiring decisions, bank lending, school enrollment selections and the scoring of exams. It would also cover the use of artificial intelligence by law enforcement and court systems — areas considered “high risk” because they could threaten people’s safety or fundamental rights.

Some uses would be banned altogether, including live facial recognition in public spaces, though there would be several exemptions for national security and other purposes.

The 108-page policy is an attempt to regulate an emerging technology before it becomes mainstream. The rules have far-reaching implications for major technology companies including Amazon, Google, Facebook and Microsoft that have poured resources into developing artificial intelligence, but also scores of other companies that use the software to develop medicine, underwrite insurance policies, and judge credit worthiness. Governments have used versions of the technology in criminal justice and allocating public services like income support.

“deepfakes” would have to make clear to users that what they are seeing is computer generated.

For the past decade, the European Union has been the world’s most aggressive watchdog of the technology industry, with its policies often used as blueprints by other nations. The bloc has already enacted the world’s most far-reaching data-privacy regulations, and is debating additional antitrust and content-moderation laws.

governments around the world, each with their own political and policy motivations, to crimp the industry’s power.

In the United States, President Biden has filled his administration with industry critics. Britain is creating a tech regulator to police the industry. India is tightening oversight of social media. China has taken aim at domestic tech giants like Alibaba and Tencent.

The outcomes in the coming years could reshape how the global internet works and how new technologies are used, with people having access to different content, digital services or online freedoms based on where they are located.

Artificial intelligence — where machines are trained to perform jobs and make decisions on their own by studying huge volumes of data — is seen by technologists, business leaders and government officials as one of the world’s most transformative technologies, promising major gains in productivity.

But as the systems become more sophisticated it can be harder to understand why the software is making a decision, a problem that could get worse as computers become more powerful. Researchers have raised ethical questions about its use, suggesting that it could perpetuate existing biases in society, invade privacy, or result in more jobs being automated.

Release of the draft law by the European Commission, the bloc’s executive body, drew a mixed reaction. Many industry groups expressed relief the regulations were not more stringent, while civil society groups said they should have gone further.

“There has been a lot of discussion over the last few years about what it would mean to regulate A.I., and the fallback option to date has been to do nothing and wait and see what happens,” said Carly Kind, director of the Ada Lovelace Institute in London, which studies the ethical use of artificial intelligence. “This is the first time any country or regional bloc has tried.”

ethical uses of the software said she was fired for criticizing the company’s lack of diversity and the biases built into modern artificial intelligence software. Debates have raged inside Google and other companies about selling the cutting-edge software to governments for military use.

In the United States, the risks of artificial intelligence are also being considered by government authorities.

This week, the Federal Trade Commission warned against the sale of artificial intelligence systems that use racially biased algorithms, or ones that could “deny people employment, housing, credit, insurance, or other benefits.”

Elsewhere, in Massachusetts, and in cities like Oakland, Calif.; Portland, Ore.; and San Francisco, governments have taken steps to restrict police use of facial recognition.

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