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Sick of high gas prices? Then it’s time to talk climate action

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Sick of high gas prices? Then it’s time to talk climate action

Let’s begin by getting one thing out of the way in which: The skyrocketing fuel costs plaguing Californians will not be brought on by local weather coverage.

Sure, the state has clamped down on hydraulic fracking, raised the fuel tax and required fossil gasoline firms to pay for his or her planet-warming air pollution. And sure, President Biden has labored to restrict oil and pure fuel leasing on federal lands.

However whereas the petroleum worth surge has been brought on by Russia’s invasion of Ukraine — and a seamless financial restoration from the COVID-19 pandemic — it may very well be a key second for efforts to battle the local weather disaster, in California and nationwide.

Excessive fuel costs might speed up the shift to electrical automobiles, slashing emissions whereas additionally dealing a blow to Russian President Vladimir Putin. Congress might provide beneficiant monetary help to be sure that low-income households can afford to go electrical and don’t get caught paying for ever-pricier gasoline.

And the Golden State might take steps to make sure that electrical energy — more and more generated by photo voltaic panels and wind generators — doesn’t get so costly that residents decline to make the change from oil.

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Will any of that really occur? It’s laborious to say, however disaster creates alternative. If there have been ever a second for America to interrupt by means of its political logjam on local weather and begin taking dramatic steps to section out fossil fuels, this may be it, specialists say.

“For the primary time, there may be an possibility for individuals who must drive that’s not depending on the cooperation of the Saudi regime and the Russian authorities,” mentioned Michael Wara, director of the local weather and vitality coverage program at Stanford College’s Woods Institute for the Setting. “We have to get that possibility into as many individuals’s fingers as doable.”

Half a century after the Arab oil embargo spurred requires vitality independence, the US is the world’s largest producer of oil and pure fuel. However American shoppers are nonetheless very a lot topic to the whims of world markets and geopolitics.

Look no additional than President Biden’s resolution this week to strain Putin by reducing off imports of Russian oil, pure fuel and coal. The transfer was anticipated to additional drive up gasoline costs — which had been already averaging $4.25 a gallon nationwide and $5.57 in California on Wednesday.

“The one strategy to not be weak to the value of oil is to purchase much less oil,” Wara mentioned.

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The Russian pipe-laying vessel Fortuna will get into place at a German port in January 2021, throughout building of the Nord Stream 2 pure fuel pipeline beneath the Baltic Sea.

(Jens Buettner / Related Press)

The U.S. gained’t be capable of shut off the spigot in a single day — and within the quick time period, extra oil and pure fuel manufacturing might cut back European demand for Russian exports and assist maintain costs from rising additional. A report this week from analysis agency Rhodium Group discovered that the local weather penalties can be small, with a short lived enhance in world emissions of lower than 0.1%.

In California, in the meantime, Gov. Gavin Newsom used his State of the State speech Tuesday night to ask lawmakers to approve fuel tax rebates for Golden State residents to blunt the influence of rising costs. However he held quick to his local weather commitments, which embody ending the sale of oil-powered automobiles by 2035 and spending billions of {dollars} to assist Californians ditch gasoline.

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“We gained’t be ramping up [oil] manufacturing, however moderately doing all the pieces we are able to to speed up on the clear vitality and clear fuels facet,” mentioned Lauren Sanchez, Newsom’s senior local weather advisor. “The geopolitical state of affairs has solely made that extra pressing.”

Trying past California, too, the celebrities look like aligning for a dramatic vitality transformation.

The auto business has begun to speculate tens of billions of {dollars} in cleaner automobiles, with Common Motors planning 30 electrical automobile fashions by 2025 and Ford staking a lot of its future on the F-150 Lightning electrical pickup truck. The bipartisan infrastructure invoice signed by Biden in November included $7.5 billion to assist construct out a nationwide community of half 1,000,000 electrical automobile chargers.

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None of that will likely be sufficient to chop world carbon emissions practically in half by 2030, which scientists say is required to keep away from the worst penalties of a warming planet — penalties that already embody deadlier and extra damaging fires, warmth waves and droughts.

However further federal insurance policies — such because the clear vitality provisions of Biden’s “Construct Again Higher” laws — might pace the transition away from fossil fuels, whereas serving to low-income households change their petroleum-powered automobiles with electrical automobiles.

Rhodium Group’s report famous that formidable local weather measures — together with federal grants and tax credit reminiscent of these in Construct Again Higher — might cut back the quantity that American houses and companies spend on oil merchandise by as a lot as 24% by 2030.

It’s a method that revolves round making photo voltaic and wind energy, electrical automobiles and different climate-friendly applied sciences extra inexpensive, moderately than elevating the price of fossil fuels, mentioned Trevor Houser, who leads Rhodium’s vitality and local weather follow.

“Whereas it isn’t a panacea for the present [geopolitical] disaster, making these investments in clear vitality right this moment will make each the U.S. and Europe extra protected over the medium time period, and guarantee we’re not within the place once more,” Houser mentioned.

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The 192-megawatt Rosamond Central solar farm in California's Kern County.

The 192-megawatt Rosamond Central photo voltaic farm in California’s Kern County.

(Gary Coronado / Los Angeles Instances)

The president made an analogous case Tuesday, whereas saying the ban on Russian oil imports.

“Loosening environmental laws or pulling again clear vitality funding gained’t decrease vitality costs,” Biden mentioned. “However remodeling our financial system to run on electrical automobiles powered by clear vitality, with tax credit to assist American households winterize their houses and use much less vitality? That may assist … It can imply that nobody has to fret in regards to the worth of the fuel pump.”

Automobiles and vans are America’s largest supply of emissions, with transportation accounting for practically 40% of local weather air pollution in California and 28% nationwide.

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However filling up on the fuel tank isn’t the one place that vitality costs and local weather coverage collide for a lot of Individuals. About half of U.S. houses use one other fossil gasoline, pure fuel, for house heating, water heating and cooking.

Dozens of California cities have banned or discouraged fuel hookups in new buildings, hoping to spur building of all-electric houses with electrical warmth pumps and induction stoves. State officers are pursuing an analogous technique — as is the European Union, which set a goal this week of rolling out 10 million warmth pumps within the subsequent 5 years, to cut back dependence on Russian fuel.

However to make all of it work — a future dominated by electrical automobiles and electrical heating, powered by photo voltaic panels and wind generators — electrical energy will must be inexpensive. And for the previous couple of years, California has been shifting within the unsuitable path.

Electrical charges are rising quicker than inflation, and state officers have projected they’ll maintain rising — by round 4% yearly — as utility firms spend billions extra to cease their gear from sparking fires. It’s an issue that would derail California’s local weather plans, in accordance with Matthew Freedman, a employees legal professional on the Utility Reform Community, a ratepayer watchdog group.

“We need to make it actually low-cost and engaging for individuals to affect, as a result of essentially it is a customer-level resolution,” Freedman mentioned. “It’s laborious to pressure anyone to affect their dwelling. You may’t pressure anyone to purchase an electrical automobile.”

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Though photo voltaic and wind are actually a few of the world’s least expensive energy sources, the electrical charges paid by Californians cowl all kinds of prices past simply the value of energy. For purchasers of the state’s three massive monopoly utility firms — Southern California Edison, Pacific Gasoline & Electrical and San Diego Gasoline & Electrical — electrical charges cowl rooftop photo voltaic incentives, reductions for low-income houses, electrical automobile charging infrastructure and the prices of hardening the facility grid to decrease the danger of wildfire ignitions.

Power transmission lines crest a hilltop above Camp Creek Road, the point of origin of the Camp fire, in 2018.

Energy transmission traces crest a hilltop above Camp Creek Street, the purpose of origin of the Camp hearth, in 2018.

(Carolyn Cole / Los Angeles Instances)

The Legislature might assist maintain electrical energy payments inexpensive by eradicating a few of these expenditures from utility charges and as an alternative paying for them immediately out of the state funds, with tax {dollars}. Along with supporting the clear vitality transition, that would ease the monetary burden of local weather coverage on low-income houses, who can least afford to pay greater electrical energy payments.

“It won’t be charges happening, however it could be charges going up by a smaller quantity,” Freedman mentioned.

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Excessive oil costs might additionally derail California’s local weather plans, whilst they underscore the urgency of phasing out fossil fuels.

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Local weather initiatives play a comparatively small function in California’s gasoline costs. The state’s cap-and-trade program — which requires oil refineries and different polluters to pay for his or her emissions — at present provides about 22 cents a gallon, with the Low Carbon Gasoline Commonplace program including one other 15 cents, in accordance with Severin Borenstein, an vitality economist at UC Berkeley.

The latest fuel tax enhance — which was accredited by voters in 2018 and pays for transportation tasks reminiscent of highway and bridge repairs — means Californians pay one other 28 cents greater than drivers in different states, per Borenstein’s calculations. One other 10-cent enhance comes from a requirement that refineries produce a particular fuel mix that reduces smog-forming air pollution.

Nevertheless it’s straightforward for sad drivers accountable local weather — and sticker shock on the pump “tends to have this outsize impact on what individuals understand as their lifestyle,” Borenstein mentioned. Although housing and medical prices are far costlier for many households, “the political actuality is that top fuel costs are — I hate to say unacceptable, however politically extraordinarily unpopular.”

Meaning conserving fuel costs beneath management is vital to avoiding a political backlash that would derail California’s local weather agenda, Borenstein mentioned.

With little management over world oil costs, state officers ought to examine a “thriller gasoline surcharge” that he’s been writing about for a number of years, Borenstein mentioned. By his calculation, Californians paid 31 cents extra per gallon than drivers in different states final 12 months, even after accounting for greater taxes, environmental charges and the state’s cleaner-burning fuel formulation.

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But when Californians need to keep away from actually dramatic worth shocks? There’s just one good long-term possibility, Borenstein mentioned.

“Getting off oil won’t solely save us publicity to those kinds of worth spikes, however it is going to assist to undermine the funds of not simply Russia however Saudi Arabia, Iran, Venezuela and all kinds of autocratic regimes,” he mentioned. “It’s moral within the local weather change sense. Nevertheless it’s additionally extra moral within the democracy and freedom and human welfare sense.”

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After court loss, Albertsons and Kroger trade accusations over demise of mega-grocery-chain deal

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After court loss, Albertsons and Kroger trade accusations over demise of mega-grocery-chain deal

When Kroger and Albertsons announced plans in 2022 to team up on what would be the largest supermarket merger in U.S. history, the two grocery store chains highlighted their shared values.

Now their relationship has turned sour, with each side blaming the other for the demise of what would have been a landmark deal.

A day after a federal judge temporarily halted the merger, Albertsons said Wednesday that it’s scrapping the controversial pairing and suing Kroger, alleging that the chain failed to do enough to win over regulators.

Once partners, the grocery chains are now accusing each other of breaching the merger agreement and acting in their own interests.

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The fallout between Kroger and Albertsons and the failed merger raise fresh questions about the future of their businesses and the effect on people who shop at their stores. The companies, which have a big presence in California and nationwide, banked heavily on the benefits of joining forces to better compete with the likes of Walmart, Costco and Amazon.

“Anytime you get these two companies fighting with each other, that’s money that could be used for innovation and to better position themselves in the market,” said Christine Bartholomew, a law professor at the University at Buffalo.

The legal battle between the major grocery chains is the latest development in what has been a tumultuous two years for Albertsons and Kroger as they tried to win government approval for their megamerger. In February, the Federal Trade Commission sued to block Kroger’s proposed $24.6-billion acquisition of Albertsons because of concerns that it would eliminate competition, drive up food prices and harm workers.

If the merger had been approved, the two supermarket chains would have run more than 5,000 stores in 48 states, according to the FTC’s lawsuit. Albertsons owns the well-known brands Pavilions, Safeway and Vons. Ohio-based Kroger operates Ralphs, Food4Less, Fred Meyer, Fry’s, Quality Food Centers and other popular grocery stores.

The FTC’s lawsuit set the stage for a three-week trial that kicked off in a federal courtroom in Oregon over the summer. The trial featured testimony from the grocery store chains’ executives, FTC lawyers, union leaders and antitrust experts.

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To address concerns about reducing competition, Kroger and Albertsons said they would sell more than 570 stores to C&S Wholesale Grocers. That plan included offloading 63 California stores, including some in Los Angeles and Huntington Beach.

The fate of those stores is unclear. Albertsons didn’t respond to questions about whether they planned to keep or close the California stores. During the trial, Albertsons said it might have to lay off workers and shutter stores if the merger didn’t go through.

The grocery chains, though, failed to convince U.S. District Court Judge Adrienne Nelson, who on Tuesday issued a preliminary injunction blocking the merger, finding that it would quash competition and leave consumers in many parts of the country without meaningful choices when shopping for food. Kroger and Albertsons also faced legal battles in other states, including in Washington, where a judge also blocked the deal Tuesday because of competition concerns.

Noting that Kroger and Albertsons are rivals, the federal government contended that reducing competition between the two would drive up grocery prices.

Kroger and Albertsons vowed to invest in lowering grocery prices if the merger went through, but the judge said in her ruling that courts should be skeptical of promises that can’t be enforced and “business realities” might force the grocery chains to alter these plans.

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She also said in her ruling that the grocery chains might end up abandoning the merger because of the court order but it doesn’t force them to do so. “Any harms defendants experience as a result of the injunction do not overcome the strong public interest in the enforcement of antitrust law,” she said.

The judge’s decision to block the merger garnered praise from the FTC, the White House and United Food and Commercial Workers locals, which noted that Kroger and Albertsons have “wasted” billions of dollars on what is now a failed merger.

“Now is the time for Kroger and Albertsons executives to honor their promises to consumers and workers under oath during the trials by investing in lower prices, higher wages, and other investments to improve competitiveness,” UFCW local unions, which represent more than 100,000 workers at Albertsons- and Kroger-owned stores, said in a statement.

A variety of factors including competition and worker wages can affect food prices. Tuesday’s ruling, though, suggested that the judge, who cited economic analysis from the federal government’s expert in her 71-page decision, “didn’t really buy the arguments that Kroger and Albertsons were making, that this would be good for consumers,” Bartholomew said.

The legal blows made it more risky for Kroger and Albertsons to continue the merger plan.

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Shortly after the ruling, the grocery chains turned on each other.

“Kroger’s self-serving conduct, taken at the expense of Albertsons and the agreed transaction, has harmed Albertsons’ shareholders, associates and consumers,” Tom Moriarty, Albertsons’ general counsel and chief policy officer, said in a statement.

Erin Rolfes, a spokeswoman for Kroger, disputed Albertsons’ claims, calling them “baseless and without merit.”

“This is clearly an attempt to deflect responsibility following Kroger’s written notification of Albertsons’ multiple breaches of the agreement, and to seek payment of the merger’s break fee, to which they are not entitled,” she said in a statement.

Albertsons’ lawsuit filed in the Delaware Court of Chancery is temporarily under seal, according to a statement.

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The Boise, Idaho-based company is seeking a $600-million termination fee and billions of dollars in damages from Kroger as part of the lawsuit.

On Wednesday, Kroger’s stock closed up nearly 1% at $61.33, while Albertsons’ stock fell more than 1% to $18.23. Albertsons’ shares have dropped about 20% this year.

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On a quest for global domination, Chinese EV makers are upending Thailand's auto industry

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On a quest for global domination, Chinese EV makers are upending Thailand's auto industry

Japanese car factories in Thailand — which for decades has been the premiere hub of auto manufacturing in Southeast Asia — are shutting down or scaling back.

Subaru said it will stop producing cars at its plant this month. Suzuki plans to cease operations by the end of 2025. And Honda and Nissan say they are reducing production.

The primary culprit: Chinese electric vehicles.

As the world embraces zero-emission vehicles, Thailand has been courting Chinese automakers, which in their quest for global dominance have spent more than $1.4 billion here as of last year to build EV factories.

“Japanese automakers are under significant pressure to cut costs to compete with Chinese brands,” said Larey Yoopensuk, chairman of the Federation of Thailand Automobile Workers. “They are now questioning whether staying in Thailand is still worthwhile.”

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Thailand’s government — which wants 30% of the cars it produces to be electric by 2030 — sees Chinese investment as a crucial piece of the future of its auto industry, which now accounts for 800,000 jobs and 10% of the country’s GDP.

The paradigm shift has become a source of anxiety for Thai auto workers, who have long helped produce Japanese cars and the parts that go into them, including exhaust pipes, brakes and doors. Even if Chinese factories replace Japanese ones, Yoopensuk worried that there may not be a place for him or his colleagues in the new order.

One reason is that Chinese companies in Thailand have historically been intolerant of labor unions.

“Over the past decade, this industry has been booming, with unionized workers achieving better living conditions and high incomes,” said Yoopensuk, who has worked in auto manufacturing for 35 years. “If forced out, many workers — particularly older ones — may struggle to find jobs elsewhere.”

He was also concerned that Chinese EV manufacturers would use more automation and favor immigrants from China and Vietnam over Thai workers when hiring.

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“This is an issue we’re pushing back against, encouraging these companies to also create employment opportunities here,” he said.

China’s foray into Thailand’s auto industry could herald what’s to come in other parts of the world, as EV adoption grows and Chinese brands go global. Last year, the Chinese behemoth BYD, which opened a factory in Thailand this summer, briefly surpassed Tesla in global sales.

“I don’t think there is any real precedent where those Chinese EV manufacturers are reshaping the industrial landscape in another country,” said David Williams, an expert on labor standards and supply chains in Asia for the International Labor Organization.

Thailand exports just over two-thirds of the cars it makes, with the biggest share going to Australia followed by Saudi Arabia, the Philippines and Vietnam.

Its most important market is domestic, and the news has been dismal. Total passenger car sales in Thailand fell 23% through September compared to the same period last year. Experts blamed rising household debt and increasingly stringent rules for securing auto loans.

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Electric cars — nearly all of them Chinese — were the one bright spot, with sales up 11%.

Gasoline-powered cars still make up more than 90% of all sales in Thailand, but that is expected to fall as the government continues its push for EVs with subsidies for buyers and manufacturers.

BYD said its new plant would eventually generate about 10,000 jobs and produce 150,000 vehicles a year. When the company launched in Thailand, its distributor offered steep discounts on several models, bringing the cheapest models below $25,000.

That has intensified a price war that further threatens Japanese brands, which are fighting to keep up with cleaner cars of their own.

According to the Thai government, they have committed to investing more in local production of hybrids — which run on both battery motors and internal combustion engines — and electric pickup trucks. Honda started producing EVs in Thailand last December.

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As gas-powered cars fall out of favor, some auto parts will be rendered obsolete, such as hydraulic-based steering systems and alternators.

The Thai Auto Parts Manufacturers Assn. has reportedly estimated that only about a dozen of the more than 600 auto parts makers in Thailand will be able to supply Chinese EVs.

Those that can transition to making parts for electric cars may still struggle to compete with Chinese rivals. Some auto parts suppliers have already shuttered as business has contracted.

Supat Ratanasirivilai, managing director of Thai Metal Aluminum, which produces aluminum-made parts for Japanese and American cars, said he has been negotiating with Chinese automakers since the start of the year.

But those talks have stalled since Chinese companies told him that his prices are 30-40% too high.

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“We were hoping that when the Japanese carmakers’ production dropped, we may get some benefit from the Chinese carmakers,” he said. “But obviously they are not buying from the Thai suppliers.”

His company is pushing the Thai government to implement more protective measures for local workers, such as requiring EVs to be built with more locally sourced parts.

“The Thai government is really opening up everything for the Chinese carmakers. It has been very difficult for us,” he said. “I don’t know what’s to come next.”

Special correspondent Poypiti Amatatham in Bangkok contributed to this report.

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'Squid Game' was a surprise global smash. Will Season 2 be even bigger for Netflix?

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'Squid Game' was a surprise global smash. Will Season 2 be even bigger for Netflix?

It’s been more than three years since college student Justin Lin binge-watched the first season of Netflix’s “Squid Game” in two days. Now, he can’t wait until Season 2 launches on Netflix on Dec. 26.

Lin was so excited that he drove from the San Gabriel Valley to Hollywood to don a green tracksuit and compete against other fans for a seat at the U.S. premiere.

“It was really exciting — we were all on our heels. We were all on our toes,” Lin said after he watched the first episode of the new season.

The show, about debt-ridden people so desperate for money that they compete in deadly games, remains the most popular program on Netflix with more than 330 million views to date of its first season. In the Korean drama’s first 91 days on Netflix, “Squid Game” Season 1 captured 265.2 million views — the largest amount ever on the platform for any program.

Tom Nunan, a former network and studio executive who teaches at UCLA, thinks the second season could be even bigger.

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“The first season was so beloved,” Nunan said. “Now you have something that’s an established title. People don’t have to rely on word of mouth. You’re going to deal with the existing fan base worldwide, along with everybody who wants to check it out for the first time.”

Netflix’s audience is also bigger compared to when “Squid Game” launched in September 2021. Back then, Netflix’s subscribers were nearly 214 million members in the third quarter of 2021. It has since grown 32% to more than 282 million globally.

“I have a lot of confidence that our members who watched Season 1 will definitely love Season 2, and those who actually have not been introduced will find Season 2 will also resonate with them as well,” said Minyoung Kim, Netflix’s vice president of content for Asia Pacific (not including India) in an interview last month.

Costumed “Squid Game” guards watch over the crowd at the premiere of the second season of the Netflix series.

(Chris Pizzello / Chris Pizzello/invision/ap)

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The second season, a Golden Globe nominee, starts where “Squid Game” left off, with the main character on a mission to end the deadly games.

Netflix has leaned into its international programming, taking big bets on local stories that resonate in specific countries and regions. Sometimes those narratives become global hits, like “Squid Game.”

“Squid Game broke records and became our most popular show ever, proving that great stories can come from anywhere,” said Bela Bajaria, Netflix’s chief content officer, on stage at the “Squid Game” U.S. premiere earlier this month at the Egyptian Theatre in Hollywood. “The cultural impact was massive globally.”

The first season had a budget of $21.4 million or about $2.4 million an episode, according to Bloomberg. Netflix declined to comment on the budgets for either season, but it’s clear the filmmakers had more resources for the new one. Creator Hwang Dong-hyuk told the Hollywood Reporter: “This time, I was able to fully realize my creative vision, whether it was the set building or CGI. We didn’t have to compromise.”

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Netflix has put significant marketing dollars behind the show, hosting fan events in cities that included Sydney and Paris. The streamer also has partnerships with major brands, including Puma, which created the tracksuits the contestants wear in Season 2 and are selling a version of it to fans. Other items include “Squid Game”-themed Crocs and a limited edition “Red Light: Green Light” beef jerky from Jack Link’s.

The company also rolled out a multiplayer game, “Squid Game: Unleashed,” which is available to non-Netflix subscribers for a limited period of time. Netflix announced Monday that it will reward gamers who also tune in to the show, giving them cash or wild tokens in the game based on the number of episodes they watch of Season 2.

And of course, there are the legions of “Squid Game” fans sharing the hype.

“They’ve built a lot of anticipation for it and everyone’s ready for it,” said Jacqueline Yang, a 28-year-old content creator based in downtown L.A. who watched all of Season 1 in one day.

Earlier this month, 1,700 fans, including Yang, participated in a 4.56K run (a reference to Season 1’s main character, Player 456) that started at L.A. City College. They were given tracksuits similar to the ones on the show.

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During the event, fans were asked to choose to run through one of three large shapes — a circle, a triangle or a square (the symbols that cover the faces of the masked guards overseeing the show’s games). Participants who chose the correct symbol could attend the screening.

Lin and a friend chose the triangle — the right choice, it turned out.

Yang also chose the triangle, but her mother was not so lucky. The family was separated as Yang’s mother competed in two subsequent games — “Red Light, Green Light” and the scratching of a lottery ticket — but failed.

And even though her mother left the premiere early (Yang’s boyfriend picked her up), she didn’t leave empty-handed; she took home the tracksuit.

“My mom is like, ‘I guess we have our Halloween costumes for this next year,’” Yang said.

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