title,url,timestamp,content,source,clean_date,clean_content,arti_score,pos_sent,neg_sent,rnn_arti_score,rnn_pos_sent,rnn_neg_sent,date_extracted
"U.S. investors, Big Pharma race to find new medicines in China",https://www.cnbc.com/2025/02/13/china-biopharma-deals-rise-with-summit-merck.html,2025-02-13T13:45:01+0000,"A little-known biotech company stunned the biopharmaceutical industry last spring when it declared an ""unprecedented"" achievement: its experimental cancer drug looked more effective than Merck's Keytruda in a clinical trial. The company, Summit Therapeutics, licensed the drug from Chinese company Akeso Inc. In October, a group of life science investors announced they were putting $400 million into creating a company called Kailera Therapeutics that would develop experimental obesity drugs it bought from Chinese company Jiangsu Hengrui Pharmaceuticals.Then in a matter of days in December, Merck disclosed it would license a potential competitor to Summit's drug and a separate experimental obesity pill – both from Chinese companies. Suddenly, U.S. companies are racing to find medicines in China. Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma. ""That's stunning to me,"" said Chen Yu, founder and managing partner at crossover fund TCGX. ""That's stunning."" Yu said 20 years ago, few biopharma companies were interested in China because they considered it a small market. His former firm, Vivo Capital, pioneered the concept of bringing U.S. medicines to the Chinese market.Today, the movement is going in the opposite direction. He never imagined the proliferation that's taking place now. Investors and industry insiders offer a few reasons for the trend: Chinese companies are creating better molecules than ever before – and more of them. They can start testing those compounds in humans sooner and at a lower price than in the U.S. Buyers have figured out a business model to essentially import the drugs through licensing deals. Venture funding in China has also dried up, forcing biotech companies to do deals. One thing all of those people in the industry agree on? This trend isn't going away.What's less clear is what the development means for the U.S. biotech sector. Some people contend it's terrible for American startups if large pharmaceutical companies can find a promising drug in China for a fraction of the price. Others argue competition makes everyone better, and American companies will ultimately reap the rewards of bringing medicines to the market. Either way, the influx could reshape the landscape of the U.S. biopharma industry. ""It's kind of a watershed moment where the pharma industry is like, 'We don't really need to buy U.S. biotechs necessarily,'"" said Tim Opler, a managing director in Stifel's global health-care group. ""We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies."" Bain Capital Life Sciences started making China a priority around 2018, said Adam Koppel, a partner at the fund. The private equity firm saw the Chinese government and the life sciences industry making a deliberate effort to evolve from its historical focus on copycat and fast-follower drugs that mimicked leading drugs to creating new chemical matter that China could export to the rest of the world. Since then, Bain has struck six biopharma deals in China. It bought an experimental asthma drug from Hengrui in 2023 and co-launched a company called Aiolos with a $245 million series A funding round. GSK acquired the company three months later for up to $1.4 billion. Koppel sees more large pharmaceutical companies growing comfortable with drugs coming out of China as they work with more of them and see their outcomes, he said. Buyers had held back in part because they worried data from China wasn't representative of a global population and U.S. regulators wouldn't accept it. ""As they're seeing assets then come out, they're seeing things that are having success, and eventually, as things get approved and used on the market, I think that that concern will become lessened,"" he said. That narrative was on display when Summit Therapeutics last year said its experimental cancer drug beat Merck's mega-blockbuster Keytruda in a head-to-head study, a feat no other drug has accomplished. Summit's trial was conducted exclusively in China, making people question if the results would hold up elsewhere. When Summit's leaders were shopping for a drug they could develop, they made it a point to look in China because co-CEO Bob Duggan had read more new medicines were coming from the country. But it was late 2022, and the U.S. Food and Drug Administration had just rejected a few applications for drugs that were studied only in China, including one from Eli Lilly.When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh.""And suddenly after us, a lot of people opened their eyes,"" she said.Ivonescimab had already undergone early studies and was in late-stage trials in China when Summit struck the licensing deal. Summit is now running three global phase 3 trials to satisfy the FDA's desire for drugs to be studied in diverse groups of people. Summit's strategy could become more common. Investors and other industry insiders said one of the draws about doing deals with Chinese biotech companies is they can find molecules that have already undergone early studies at a lower price than in the U.S. So the U.S. businesses know what they're getting, and they can probably get it for less.  Gilead spends a lot of time in China looking for assets like it does in the U.S. and Europe, the company's chief financial officer, Andrew Dickinson, told CNBC. Gilead has seen a ""substantial shift"" in the quality and quantity of assets being developed in China and being offered to U.S. biopharma companies.""The transformation over the last five years is real and impressive,"" Dickinson said. It helps that more Chinese companies need to do deals now. The amount of venture funds raised by the Chinese biotech industry cratered to just $1 billion last year from a peak of $6.3 billion in 2021, according to data provided by TCGX's Yu. ""Why would we do any early-stage development in the U.S. anymore?"" Yu said. ""Why wouldn't we just get clinical proof of concept in China and then bring it over to the U.S. for the expensive clinical development when we actually know the drug works? And I think that could be a very revolutionary new way for our industry to become more efficient.""That's an opportunity – or risk – for the U.S. biopharma industry, depending on who you ask. Some, like Yu, see it as a way to bring down the price of prescription drugs. Others worry it could hobble U.S. companies if Merck and other large pharmaceutical companies pass on acquiring American startups in favor of licensing assets from China.The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%. Viking is seen as an acquisition target since it's developing drugs in the red-hot obesity space, and suddenly it looked like one possible suitor had chosen to spend its money elsewhere. People see parallels to what happened in the artificial intelligence space when China's DeepSeek declared it had created a model that was just as good as U.S. models for much less than American companies are spending. President Donald Trump or U.S. policymakers could see the similar trend in biotech as a threat and intervene to stop these deals, what Yu calls the ""stroke of a pen"" risk. Lawmakers last year floated the Biosecure Act that would have restricted U.S. companies from working with Chinese contract manufacturers. Washington has already embraced protectionist policies in other competitive areas like artificial intelligence and semiconductors. It's possible that could extend to life sciences. ""The deeper message from DeepSeek is that we have competition in the high sciences in general, and moreover that China is making major investments to develop scientific assets,"" said Stifel's Opler.Put another way: the race in biopharma is on.",CNBC,13/02/2025,"['A little-known biotech company stunned the biopharmaceutical industry last spring when it declared an ""unprecedented"" achievement: its experimental cancer drug looked more effective than Merck\'s Keytruda in a clinical trial.', 'The company, Summit Therapeutics, licensed the drug from Chinese company Akeso Inc.In October, a group of life science investors announced they were putting $400 million into creating a company called Kailera Therapeutics that would develop experimental obesity drugs it bought from Chinese company Jiangsu Hengrui Pharmaceuticals.', ""Then in a matter of days in December, Merck disclosed it would license a potential competitor to Summit's drug and a separate experimental obesity pill – both from Chinese companies."", 'Suddenly, U.S. companies are racing to find medicines in China.', 'Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma.', '""That\'s stunning to me,"" said Chen Yu, founder and managing partner at crossover fund TCGX. ""', ""That's stunning."", '""Yu said 20 years ago, few biopharma companies were interested in China because they considered it a small market.', 'His former firm, Vivo Capital, pioneered the concept of bringing U.S. medicines to the Chinese market.', 'Today, the movement is going in the opposite direction.', ""He never imagined the proliferation that's taking place now."", 'Investors and industry insiders offer a few reasons for the trend: Chinese companies are creating better molecules than ever before – and more of them.', 'They can start testing those compounds in humans sooner and at a lower price than in the U.S. Buyers have figured out a business model to essentially import the drugs through licensing deals.', 'Venture funding in China has also dried up, forcing biotech companies to do deals.', 'One thing all of those people in the industry agree on?', ""This trend isn't going away."", ""What's less clear is what the development means for the U.S. biotech sector."", ""Some people contend it's terrible for American startups if large pharmaceutical companies can find a promising drug in China for a fraction of the price."", 'Others argue competition makes everyone better, and American companies will ultimately reap the rewards of bringing medicines to the market.', 'Either way, the influx could reshape the landscape of the U.S. biopharma industry.', '""It\'s kind of a watershed moment where the pharma industry is like, \'We don\'t really need to buy U.S. biotechs necessarily,\'"" said Tim Opler, a managing director in Stifel\'s global health-care group. ""', 'We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies.', '""Bain Capital Life Sciences started making China a priority around 2018, said Adam Koppel, a partner at the fund.', 'The private equity firm saw the Chinese government and the life sciences industry making a deliberate effort to evolve from its historical focus on copycat and fast-follower drugs that mimicked leading drugs to creating new chemical matter that China could export to the rest of the world.', 'Since then, Bain has struck six biopharma deals in China.', 'It bought an experimental asthma drug from Hengrui in 2023 and co-launched a company called Aiolos with a $245 million series A funding round.', 'GSK acquired the company three months later for up to $1.4 billion.', 'Koppel sees more large pharmaceutical companies growing comfortable with drugs coming out of China as they work with more of them and see their outcomes, he said.', ""Buyers had held back in part because they worried data from China wasn't representative of a global population and U.S. regulators wouldn't accept it."", '""As they\'re seeing assets then come out, they\'re seeing things that are having success, and eventually, as things get approved and used on the market, I think that that concern will become lessened,"" he said.', ""That narrative was on display when Summit Therapeutics last year said its experimental cancer drug beat Merck's mega-blockbuster Keytruda in a head-to-head study, a feat no other drug has accomplished."", ""Summit's trial was conducted exclusively in China, making people question if the results would hold up elsewhere."", ""When Summit's leaders were shopping for a drug they could develop, they made it a point to look in China because co-CEO Bob Duggan had read more new medicines were coming from the country."", 'But it was late 2022, and the U.S. Food and Drug Administration had just rejected a few applications for drugs that were studied only in China, including one from Eli Lilly.', ""When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh."", '""And suddenly after us, a lot of people opened their eyes,"" she said.', 'Ivonescimab had already undergone early studies and was in late-stage trials in China when Summit struck the licensing deal.', ""Summit is now running three global phase 3 trials to satisfy the FDA's desire for drugs to be studied in diverse groups of people."", ""Summit's strategy could become more common."", ""Investors and other industry insiders said one of the draws about doing deals with Chinese biotech companies is they can find molecules that have already undergone early studies at a lower price than in the U.S. So the U.S. businesses know what they're getting, and they can probably get it for less."", ""Gilead spends a lot of time in China looking for assets like it does in the U.S. and Europe, the company's chief financial officer, Andrew Dickinson, told CNBC."", 'Gilead has seen a ""substantial shift"" in the quality and quantity of assets being developed in China and being offered to U.S. biopharma companies.', '""The transformation over the last five years is real and impressive,"" Dickinson said.', 'It helps that more Chinese companies need to do deals now.', ""The amount of venture funds raised by the Chinese biotech industry cratered to just $1 billion last year from a peak of $6.3 billion in 2021, according to data provided by TCGX's Yu."", '""Why would we do any early-stage development in the U.S. anymore?""', 'Yu said. ""', ""Why wouldn't we just get clinical proof of concept in China and then bring it over to the U.S. for the expensive clinical development when we actually know the drug works?"", 'And I think that could be a very revolutionary new way for our industry to become more efficient.', '""That\'s an opportunity – or risk – for the U.S. biopharma industry, depending on who you ask.', 'Some, like Yu, see it as a way to bring down the price of prescription drugs.', 'Others worry it could hobble U.S. companies if Merck and other large pharmaceutical companies pass on acquiring American startups in favor of licensing assets from China.', ""The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%."", ""Viking is seen as an acquisition target since it's developing drugs in the red-hot obesity space, and suddenly it looked like one possible suitor had chosen to spend its money elsewhere."", ""People see parallels to what happened in the artificial intelligence space when China's DeepSeek declared it had created a model that was just as good as U.S. models for much less than American companies are spending."", 'President Donald Trump or U.S. policymakers could see the similar trend in biotech as a threat and intervene to stop these deals, what Yu calls the ""stroke of a pen"" risk.', 'Lawmakers last year floated the Biosecure Act that would have restricted U.S. companies from working with Chinese contract manufacturers.', 'Washington has already embraced protectionist policies in other competitive areas like artificial intelligence and semiconductors.', ""It's possible that could extend to life sciences."", '""The deeper message from DeepSeek is that we have competition in the high sciences in general, and moreover that China is making major investments to develop scientific assets,"" said Stifel\'s Opler.', 'Put another way: the race in biopharma is on.']",0.1501168131928939,"We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies.","When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh.",0.3858429810096477,"Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma.","The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%.",2025-02-16
Coca-Cola sales easily top estimates as global demand rises,https://www.cnbc.com/2025/02/11/coca-cola-ko-q4-2024-earnings.html,2025-02-11T21:36:12+0000,"In this articleCoca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations, as global demand for its drinks rose.Shares of the company climbed nearly 5% for the day.Here's what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier.Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.Net sales rose 6% to $11.54 billion.Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices. Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation. The rest came from price hikes and ""favorable mix,"" meaning that customers bought products that were more expensive.While most of Coke's organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo.Coke's unit case volume grew 2%, reversing last quarter's decline. The metric strips out the impact of pricing and foreign currency to reflect demand. The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter. Trademark Coca-Cola and Fairlife remain leaders in at home retail sales growth,"" Coke CEO James Quincey said on the company's conference call.The company's sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter. Coke Zero Sugar's volume climbed 13% during the period.Coke's water, sports, coffee and tea division reported 2% volume growth. Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.Coke's juice, value-added dairy and plant-based beverages division saw volume shrink 1%. The company said declines in Europe, the Middle East and Africa offset growth in North America.Looking to 2025, Coke projects organic revenue will grow 5% to 6%. The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.""It seems more likely in '25, there'll be a little more price and a little less volume, but there will be volume growth,"" Quincey told analysts.Coke could also face some rising costs in 2025. For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said. ""For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.""",CNBC,11/02/2025,"[""In this articleCoca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations, as global demand for its drinks rose."", 'Shares of the company climbed nearly 5% for the day.', ""Here's what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier."", 'Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.', 'Net sales rose 6% to $11.54 billion.', 'Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices.', ""Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation."", 'The rest came from price hikes and ""favorable mix,"" meaning that customers bought products that were more expensive.', ""While most of Coke's organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo."", ""Coke's unit case volume grew 2%, reversing last quarter's decline."", 'The metric strips out the impact of pricing and foreign currency to reflect demand.', 'The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter.', 'Trademark Coca-Cola and Fairlife remain leaders in at home retail sales growth,"" Coke CEO James Quincey said on the company\'s conference call.', ""The company's sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter."", ""Coke Zero Sugar's volume climbed 13% during the period."", ""Coke's water, sports, coffee and tea division reported 2% volume growth."", 'Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.', ""Coke's juice, value-added dairy and plant-based beverages division saw volume shrink 1%."", 'The company said declines in Europe, the Middle East and Africa offset growth in North America.', 'Looking to 2025, Coke projects organic revenue will grow 5% to 6%.', 'The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.', '""It seems more likely in \'25, there\'ll be a little more price and a little less volume, but there will be volume growth,"" Quincey told analysts.', 'Coke could also face some rising costs in 2025.', 'For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.', '""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said. ""', 'For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.""']",0.2105670486122989,"The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter.",,0.5848126022712045,"Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation.","Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.",2025-02-16
"Biogen beats estimates on cost cuts and new drugs like Leqembi, but profit outlook falls short",https://www.cnbc.com/2025/02/12/biogen-biib-earnings-q4-2024.html,2025-02-12T16:20:04+0000,"In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth. But the biotech company's guidance for the current year missed Wall Street's expectations. Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell short of the $16.34 per share that analysts were anticipating, according to LSEG. That reflects a foreign exchange headwind of 35 cents per share, Biogen said.  Biogen expects revenue to decline by a ""mid-single digit"" percentage in 2025 compared with 2024, as sales of its multiple sclerosis products fall. That portion of the business has declined for several quarters as some of those therapies face generic competition. But Biogen expects Leqembi, along with its new rare disease and depression treatments, to help offset that sliding revenue this year. Leqembi generated $87 million in revenue for the fourth quarter, including $50 million in the U.S. Analysts had expected the drug to book $67 million in sales, according to estimates from StreetAccount. Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023. The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, the need for regular brain scans and the difficulty of finding neurologists, among other issues. Here's what Biogen reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Biogen booked sales of $2.46 billion for the quarter, which is up around 3% from the year-earlier period. The drugmaker posted net income of $266.8 million, or $1.83 per share, for the quarter. That compares with net income of $249.7 million, or $1.71 per share, for the same period a year ago. Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $3.44 per share.Biogen first initiated a cost-cutting program in 2023. The company expects to generate $1 billion in gross savings, or $800 million net savings, by the end of 2025. Also on Wednesday, Royalty Pharma announced an agreement to provide $250 million in research and development funding to Biogen for litifilimab, a key drug in its pipeline that is being studied to treat lupus. Royalty Pharma, a leading funder of the biotech and pharmaceutical industry, will be eligible for regulatory milestones and certain royalties.Another new drug, Skyclarys, booked $102 million in sales for the fourth quarter, almost double what it reported in the year-earlier period.Analysts had expected sales of around $112 million for the quarter, according to StreetAccount. Skyclarys came from Biogen's acquisition of Reata Pharmaceuticals in July 2023. The Food and Drug Administration greenlit Skyclarys in 2023, making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5. Zurzuvae, the first pill for postpartum depression, generated fourth-quarter sales of $22.9 million. Analysts had expected it to post $26 million in sales, StreetAccount estimates said.Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion.Correction: Biogen's fourth-quarter sales from multiple sclerosis treatments fell to $1.07 billion. An earlier version misstated the period.",CNBC,12/02/2025,"[""In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth."", ""But the biotech company's guidance for the current year missed Wall Street's expectations."", 'Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell short of the $16.34 per share that analysts were anticipating, according to LSEG.', 'That reflects a foreign exchange headwind of 35 cents per share, Biogen said.', 'Biogen expects revenue to decline by a ""mid-single digit"" percentage in 2025 compared with 2024, as sales of its multiple sclerosis products fall.', 'That portion of the business has declined for several quarters as some of those therapies face generic competition.', 'But Biogen expects Leqembi, along with its new rare disease and depression treatments, to help offset that sliding revenue this year.', 'Leqembi generated $87 million in revenue for the fourth quarter, including $50 million in the U.S. Analysts had expected the drug to book $67 million in sales, according to estimates from StreetAccount.', ""Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023."", ""The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, the need for regular brain scans and the difficulty of finding neurologists, among other issues."", ""Here's what Biogen reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Biogen booked sales of $2.46 billion for the quarter, which is up around 3% from the year-earlier period."", 'The drugmaker posted net income of $266.8 million, or $1.83 per share, for the quarter.', 'That compares with net income of $249.7 million, or $1.71 per share, for the same period a year ago.', 'Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $3.44 per share.', 'Biogen first initiated a cost-cutting program in 2023.', 'The company expects to generate $1 billion in gross savings, or $800 million net savings, by the end of 2025.Also on Wednesday, Royalty Pharma announced an agreement to provide $250 million in research and development funding to Biogen for litifilimab, a key drug in its pipeline that is being studied to treat lupus.', 'Royalty Pharma, a leading funder of the biotech and pharmaceutical industry, will be eligible for regulatory milestones and certain royalties.', 'Another new drug, Skyclarys, booked $102 million in sales for the fourth quarter, almost double what it reported in the year-earlier period.', 'Analysts had expected sales of around $112 million for the quarter, according to StreetAccount.', ""Skyclarys came from Biogen's acquisition of Reata Pharmaceuticals in July 2023."", ""The Food and Drug Administration greenlit Skyclarys in 2023,making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5.Zurzuvae, the first pill for postpartum depression, generated fourth-quarter sales of $22.9 million."", 'Analysts had expected it to post $26 million in sales, StreetAccount estimates said.', ""Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion."", ""Correction: Biogen's fourth-quarter sales from multiple sclerosis treatments fell to $1.07 billion."", 'An earlier version misstated the period.']",0.105757228271201,"Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023.",But the biotech company's guidance for the current year missed Wall Street's expectations.,0.0696674717797173,"In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth.","Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion.",2025-02-16
"GM expects to mitigate up to 50% of potential North American tariffs, which Ford describes as 'chaos'",https://www.cnbc.com/2025/02/11/ford-ceo-says-trumps-tariffs-are-causing-chaos-in-auto-industry.html,2025-02-12T12:19:23+0000,"In this articleDETROIT — General Motors believes it can mitigate up to 50% of potential tariffs President Donald Trump is threatening to impose on imports from Canada and Mexico, CEO Mary Barra said Tuesday.The chief executive said the Detroit automaker has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the U.S. from the two neighboring countries. That includes potentially avoiding short-term impacts of between 30% and 50% of the additional costs ""without deploying any capital.""""We are prepared,"" Barra said Tuesday during a Wolfe Research investment conference. ""When we know exactly what's going to happen and/or even have an indication of what's going to happen, we know the steps we could take.""GM CFO Paul Jacobson, who appeared with Barra, added that if tariffs were prolonged, the company could take additional measures such as shifting production or parts or vehicles.The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico. That includes many of its lower-priced electric vehicles as well as its highly profitable full-size pickup trucks.Barra's comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump's tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.Farley described this week's 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding ""a lot of cost, and a lot of chaos"" to the industry.""President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""So far what we're seeing is a lot of cost, and a lot of chaos.""Farley and incoming Ford CFO Sherry House said a majority of the company's steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.Barra noted GM is ""evaluating"" the impact of the steel and aluminum tariffs on its business, but said the company sources a ""significant"" amount of both from the U.S. In the short term, she said GM also has fixed pricing on such purchases.Both GM and Ford contributed $1 million each, along with vehicles, to Trump's inauguration. Executives with both also have confirmed they've talked with Trump about the auto industry.House on Tuesday said the biggest concern for Ford is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker's business.""We'll have to deal with it. That's what I'm talking about cost of chaos. A little here, a little there. … This is what we're dealing with right now,"" Farley said.Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying a long-term 25% tariff that could go into effect as soon as March 1 would be ""devastating"" and ""blow a hole in the U.S. industry that we've never seen.""Ford has previously said it believes short-term tariffs are manageable. House on Tuesday said the automaker is ""not making a lot of large decisions at this point, as it awaits the potential impacts.The White House did not immediately respond for comment about Farley's remarks.Farley said he is traveling Wednesday to Washington, D.C., for the second time in three weeks to meet with government officials, including members of Congress, to stress how the policy uncertainty is impacting the industry.Last week Farley also said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries.Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively, that have little to no duties compared with the 25% tariff Trump plans to impose on Canada and Mexico.Ford regularly touts its American business, including in ad campaigns. The company is the No. 1 auto producer in the U.S., with the most vehicles domestically assembled as well as exported to other countries.Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada. An earlier version misstated one of the countries.",CNBC,12/02/2025,"['In this articleDETROIT — General Motors believes it can mitigate up to 50% of potential tariffs President Donald Trump is threatening to impose on imports from Canada and Mexico, CEO Mary Barra said Tuesday.', 'The chief executive said the Detroit automaker has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the U.S. from the two neighboring countries.', 'That includes potentially avoiding short-term impacts of between 30% and 50% of the additional costs ""without deploying any capital.', '""""We are prepared,"" Barra said Tuesday during a Wolfe Research investment conference. ""', ""When we know exactly what's going to happen and/or even have an indication of what's going to happen, we know the steps we could take."", '""GM CFO Paul Jacobson, who appeared with Barra, added that if tariffs were prolonged, the company could take additional measures such as shifting production or parts or vehicles.', ""The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico."", 'That includes many of its lower-priced electric vehicles as well as its highly profitable full-size pickup trucks.', 'Barra\'s comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump\'s tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.', 'Farley described this week\'s 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding ""a lot of cost, and a lot of chaos"" to the industry.', '""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""', ""So far what we're seeing is a lot of cost, and a lot of chaos."", '""Farley and incoming Ford CFO Sherry House said a majority of the company\'s steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.', 'Barra noted GM is ""evaluating"" the impact of the steel and aluminum tariffs on its business, but said the company sources a ""significant"" amount of both from the U.S. In the short term, she said GM also has fixed pricing on such purchases.', ""Both GM and Ford contributed $1 million each, along with vehicles, to Trump's inauguration."", ""Executives with both also have confirmed they've talked with Trump about the auto industry."", ""House on Tuesday said the biggest concern for Ford is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker's business."", '""We\'ll have to deal with it.', ""That's what I'm talking about cost of chaos."", 'A little here, a little there. …', 'This is what we\'re dealing with right now,"" Farley said.', 'Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying a long-term 25% tariff that could go into effect as soon as March 1 would be ""devastating"" and ""blow a hole in the U.S. industry that we\'ve never seen.', '""Ford has previously said it believes short-term tariffs aremanageable.', 'House on Tuesday said the automaker is ""not making a lot of large decisions at this point, as it awaits the potential impacts.', ""The White House did not immediately respond for comment about Farley's remarks."", 'Farley said he is traveling Wednesday to Washington, D.C., for the second time in three weeks to meet with government officials, including members of Congress, to stress how the policy uncertainty is impacting the industry.', 'Last week Farley also said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries.', 'Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan andSouth Korea, respectively, that have little to no duties compared with the 25% tariff Trumpplans to impose on Canada and Mexico.', 'Ford regularly touts its American business, including in ad campaigns.', 'The company is the No.', '1 auto producer in the U.S., with the most vehicles domestically assembled as well as exported to other countries.', 'Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada.', 'An earlier version misstated one of the countries.']",-0.0759660477189732,"""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""","Barra's comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump's tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.",-0.3969160795211792,"""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""","The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico.",2025-02-16
"Restaurant Brands reports 2.5% same-store sales growth, fueled by Burger King and Popeyes",https://www.cnbc.com/2025/02/12/restaurant-brands-international-qsr-q4-2024-earnings.html,2025-02-12T15:39:49+0000,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.Shares of the company were roughly flat in morning trading.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier.Excluding corporate restructuring fees and other items, Restaurant Brands earned 81 cents per share.Net sales climbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year.Still, the company saw better-than-expected sales across all of its segments during the quarter.""If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,"" Restaurant Brands CEO Josh Kobza told CNBC.In the fourth quarter, McDonald's U.S. same-store sales fell 1.4%, hurt by an E. coli outbreak linked to its Quarter Pounder burgers. And Popeyes' rival KFC, which is owned by Yum Brands, reported same-store sales declines of 5% for its U.S. restaurants.Burger King, meanwhile, posted U.S. same-store sales growth of 1.5%, beating StreetAccount estimates of 0.8%.Burger King U.S. President Tom Curtis credited its Addams Family menu, timed for Halloween, and its Million Dollar Whopper promotion, which sold 1 million Whopper burgers for just $1. While the burger chain has been in turnaround mode for more than two years, its quarterly results have shown signs that the strategy has won back customers.This year, Restaurant Brands also plans to start selling off some of the restaurants it acquired through its purchase of Carrols Restaurant Group. The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines.""I think we got some really compelling value offerings into the market in [the fourth quarter], and that helped our performance, both on sales and traffic,"" Kobza said.Tim Hortons reported domestic same-store sales growth of 2.5%. The Canadian coffee chain accounts for more than 40% of Restaurant Brands' quarterly revenue.In particular, Tims saw morning sales accelerate, thanks to stronger demand for its breakfast sandwiches and wraps. Unusually warm temperatures in the fourth quarter also led to 6% growth in cold drinks, driving sales of its Iced Capps and cold brew beverages.In 2025, Restaurant Brands expects Tims to return to net unit growth, driven in part by expansion in underpenetrated rural areas and western Canada.Restaurant Brands' international restaurants saw same-store sales growth of 4.7%, beating StreetAccount estimates of 2.7%. The company credited its Burger King and Popeyes locations for fueling higher sales.The company also increased its footprint by 3.4%, adding 1,055 new restaurants from the same period a year ago.Looking to 2025, Restaurant Brands plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives.",CNBC,12/02/2025,"[""In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants."", 'Shares of the company were roughly flat in morning trading.', ""Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier."", 'Excluding corporate restructuring fees and other items, Restaurant Brands earned 81 cents per share.', 'Net salesclimbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year.', 'Still, the company saw better-than-expected sales across all of its segments during the quarter.', '""If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,"" Restaurant Brands CEO Josh Kobza told CNBC.In the fourth quarter, McDonald\'s U.S. same-store sales fell 1.4%, hurt by an E. coli outbreak linked to its Quarter Pounder burgers.', ""And Popeyes' rival KFC, which is owned by Yum Brands, reported same-store sales declines of 5% for its U.S. restaurants."", 'Burger King, meanwhile, posted U.S. same-store sales growth of 1.5%, beating StreetAccount estimates of 0.8%.Burger King U.S. President Tom Curtis credited its Addams Family menu, timed for Halloween, and its Million Dollar Whopper promotion, which sold 1 million Whopper burgers for just $1.', 'While the burger chain has been in turnaround mode for more than two years, its quarterly results have shown signs that the strategy has won back customers.', 'This year, Restaurant Brands also plans to start selling off some of the restaurants it acquired through its purchase of Carrols Restaurant Group.', ""The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines."", '""I think we got some really compelling value offerings into the market in [the fourth quarter], and that helped our performance, both on sales and traffic,"" Kobza said.', 'Tim Hortons reported domestic same-store sales growth of 2.5%.', ""The Canadian coffee chain accounts for more than 40% of Restaurant Brands' quarterly revenue."", 'In particular, Tims saw morning sales accelerate, thanks to stronger demand for its breakfast sandwiches and wraps.', 'Unusually warm temperatures in the fourth quarter also led to 6% growth in cold drinks, driving sales of its Iced Capps and cold brew beverages.', 'In 2025, Restaurant Brands expects Tims to return to net unit growth, driven in part by expansion in underpenetrated rural areas and western Canada.', ""Restaurant Brands' international restaurants saw same-store sales growth of 4.7%, beating StreetAccount estimates of 2.7%."", 'The company credited its Burger King and Popeyes locations for fueling higher sales.', 'The company also increased its footprint by 3.4%, adding 1,055 new restaurants from the same period a year ago.', 'Looking to 2025, Restaurant Brands plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives.']",0.284929572244848,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.","The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines.",0.6721012459860908,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.","Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier.",2025-02-16
ESPN host Stephen A. Smith says he would be U.S. president as long as he doesn't have to campaign,https://www.cnbc.com/2025/02/12/espn-host-stephen-a-smith-wouldnt-mind-being-us-president.html,2025-02-13T20:53:35+0000,"Outspoken ESPN personality Stephen A. Smith is not ruling out a presidential run in his future.In an interview with CNBC Sport, Smith said, ""I wouldn't mind being in office.""Yet, the popular television host said it is the campaigning and being a politician that turns him off.""I'm not one of those dudes that's great at shaking hands and kissing babies, per se, and currying favor with politicians and donors. I'm not a beggar. That's not who I am,"" Smith told CNBC Sport.The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.Subscribe here to get access today.However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.""If you tell me that I could catapult to the White House, and I could be in a position to affect millions upon millions of lives, not just in America, but the world over, yeah, that's something that I would entertain,"" he said.The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.In a recent poll by McLaughlin & Associates, 2% of voters said they would vote for Smith in the 2028 presidential election.Watch CNBC Sport's full interview with Smith.",CNBC,13/02/2025,"['Outspoken ESPN personality Stephen A. Smith is not ruling out a presidential run in his future.', 'In an interview with CNBC Sport, Smith said, ""I wouldn\'t mind being in office.', '""Yet, the popular television host said it is the campaigning and being a politician that turns him off.', '""I\'m not one of those dudes that\'s great at shaking hands and kissing babies, per se, and currying favor with politicians and donors.', ""I'm not a beggar."", 'That\'s not who I am,"" Smith told CNBC Sport.', 'The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.', 'Subscribe here to get access today.', 'However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.', '""If you tell me that I could catapult to the White House, and I could be in a position to affect millions upon millions of lives, not just in America, but the world over, yeah, that\'s something that I would entertain,"" he said.', 'The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.', 'In a recent poll by McLaughlin & Associates, 2% of voters said they would vote for Smith in the 2028 presidential election.', ""Watch CNBC Sport's full interview with Smith.""]",0.161248135874975,"""I'm not one of those dudes that's great at shaking hands and kissing babies, per se, and currying favor with politicians and donors.","The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.",0.9959339499473572,"However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.",,2025-02-16
Super Bowl 59 attracts record 127.7 million viewers,https://www.cnbc.com/2025/02/11/super-bowl-59-viewership.html,2025-02-12T14:36:50+0000,"In this articleThe Philadelphia Eagles weren't the only ones that scored big at the Super Bowl.The National Football League's championship game attracted a record 127.7 million viewers on Sunday, according to Nielsen Media Research.The supersized live audience was of most importance to the advertisers that shelled out big bucks to have their brands featured during the Super Bowl. It is rare that programming on live TV attracts such a big audience in one sitting, making the hefty price tag worth it, advertising industry executives recently told CNBC.The cost of advertising during the Super Bowl rises each year, especially as the cable bundle loses more and more customers and must-watch programming revolves around sports and other live events. This year, some brands spent up to $8 million for a spot during the game.Sunday's Super Bowl aired on Fox Corporation's broadcast network, as well as its Spanish-language cable network Fox Deportes and NBCUniversal's Telemundo. Fox also offered the Super Bowl on its free, ad-supported streamer Tubi, and it was also available on the NFL's digital properties.Fox said Wednesday that the Super Bowl on its broadcast network and Tubi generated more than $800 million in gross revenue from advertising sales across all platforms. The 2024 Super Bowl brought in estimated ad revenue of about $550 million for in-game placements, according to GroupM, WPP's media investment group.""The clear winners Sunday night were the Eagles, the NFL, and FOX. Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,"" said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.Last year, the Super Bowl had locked down another viewership record at the time, when more than 123 million tuned into Paramount Global's CBS broadcast network, TelevisaUnivision network and other streaming options such as Paramount+.Fox also reported that the Super Bowl broke another record when it came to streaming. The game on Tubi, Telemundo and the NFL's digital offerings garnered 14.5 million viewers, while Tubi alone had 13.6 million viewers, according to Tubi first-party data and Adobe Analytics. This was the first time the Super Bowl was available on the app.The Super Bowl's viewership peaked at an audience of 137.7 million from 8 p.m. to 8:15 p.m. ET, during the second quarter, according to Nielsen.Anticipation for the game helped boost viewership, too. Fox's pregame coverage averaged 23.4 million viewers between 1 p.m. and kickoff.The Eagles ran away with the game against the Kansas City Chiefs, with a final score of 40-22. While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported.The Spanish language networks Fox Deportes and Telemundo had an average audience of 1.87 million combined viewers, according to Fox. This was the first time the Super Bowl was offered on both a cable network and broadcaster in Spanish. The league has been pushing to expand its audience, with a key part of its strategy being Hispanic viewership.Disclosure: Comcast owns CNBC parent company NBCUniversal. Correction: The headline on this story has been updated to correct that it was Super Bowl 59.",CNBC,12/02/2025,"[""In this articleThe Philadelphia Eagles weren't the only ones that scored big at the Super Bowl."", ""The National Football League's championship game attracted a record 127.7 million viewers on Sunday, according to Nielsen Media Research."", 'The supersized live audience was of most importance to the advertisers that shelled out big bucks to have their brands featured during the Super Bowl.', 'It is rare that programming on live TV attracts such a big audience in one sitting, making the hefty price tag worth it, advertising industry executives recently told CNBC.The cost of advertising during the Super Bowl rises each year, especially as the cable bundle loses more and more customers and must-watch programming revolves around sports and other live events.', 'This year, some brands spent up to $8 million for a spot during the game.', ""Sunday's Super Bowl aired on Fox Corporation's broadcast network, as well as its Spanish-language cable network Fox Deportes and NBCUniversal's Telemundo."", ""Fox also offered the Super Bowl on its free, ad-supported streamer Tubi, and it was also available on the NFL's digital properties."", 'Fox said Wednesday that the Super Bowl on its broadcast network and Tubi generated more than $800 million in gross revenue from advertising sales across all platforms.', ""The 2024 Super Bowl brought in estimated ad revenue of about $550 million for in-game placements, according to GroupM,WPP's media investment group."", '""The clear winners Sunday night were the Eagles, the NFL, and FOX.Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,""said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.', ""Last year, the Super Bowl had locked down another viewership record at the time, when more than 123 million tuned into Paramount Global's CBS broadcast network, TelevisaUnivision network and other streaming options such as Paramount+.Fox also reported that the Super Bowl broke another record when it came to streaming."", ""The game on Tubi, Telemundo and the NFL's digital offerings garnered 14.5 million viewers, while Tubi alone had 13.6 million viewers, according to Tubi first-party data and Adobe Analytics."", 'This was the first time the Super Bowl was available on the app.', ""The Super Bowl's viewership peaked at an audience of 137.7 million from 8 p.m. to 8:15 p.m. ET, during the second quarter, according to Nielsen."", 'Anticipation for the game helped boost viewership, too.', ""Fox's pregame coverage averaged 23.4 million viewers between 1 p.m. and kickoff."", 'The Eagles ran away with the game against the Kansas City Chiefs, with a final score of 40-22.', 'While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.', ""The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported."", 'The Spanish language networks Fox Deportes and Telemundo had an average audience of 1.87 million combined viewers, according to Fox.', 'This was the first time the Super Bowl was offered on both a cable network and broadcaster in Spanish.', 'The league has been pushing to expand its audience, with a key part of its strategy being Hispanic viewership.', 'Disclosure: Comcast owns CNBC parent company NBCUniversal.', 'Correction: The headline on this story has been updated to correct that it was Super Bowl 59.']",0.4216337387588909,"""The clear winners Sunday night were the Eagles, the NFL, and FOX.Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,""said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.",,0.5203825235366821,"The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported.","While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.",2025-02-16
Trump is unlikely to end Medicare drug price talks — here's what that means for patients and pharma,https://www.cnbc.com/2025/02/10/trump-could-make-changes-to-medicare-drug-price-negotiations.html,2025-02-10T13:40:30+0000,"President Donald Trump likely won't do away with a landmark process that allows Medicare to negotiate drug prices with manufacturers, even as he moves to erase Joe Biden's other historic policy accomplishments. But Trump will likely make some changes to those price talks, and it may not require help from Congress. ""Trump is looking to nibble around the edges of the law,"" said Matthew Kupferberg, a partner in Frier Levitt's life sciences group, adding the president is ""not looking to completely abandon the drug negotiation process at this point.""It's still unclear which way Trump will lean, however. While some lawmakers and health policy experts said Trump could weaken the negotiations in a way that helps the pharmaceutical industry, other experts said he could double down and try to save patients and the federal government even more money to outdo his predecessor. The path he takes could have huge stakes for the prices 68 million Medicare beneficiaries in the U.S. pay for their medications. It will also have big implications for companies like Novo Nordisk, Bristol Myers Squibb, Pfizer and Merck, among others whose drugs were included in the first two rounds of talks.The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade. The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.The Trump administration has offered few specifics on its approach to the negotiations, apart from saying in January that it will aim for ""greater transparency"" in the ongoing second cycle of the process and hear any ideas for improving it from external stakeholders.Making significant changes to the law or repealing it altogether would be an uphill battle because it requires help from Congress, where Republicans hold slim majorities. Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.So the Trump administration could move to implement the provision differently than Biden did, including by changing how the government interprets the law's selection criteria for drugs, among other potential changes.""I think it is a question of how they interpret some of the statutory language,"" said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health policy organization. Cubanski said we can expect a first glimpse at any changes in the coming months.The Trump administration will start the monthslong negotiation process for a second cycle of 15 drugs, which will have new prices go into effect in 2027. The Biden administration selected those medicines in January before Trump took office. Drugmakers have until the end of February to decide whether to participate in the talks, which they likely will because they otherwise face stiff financial penalties.Trump has so far only indicated the need for more transparency in Medicare drug price negotiations. Kupferberg said that could mean disclosing more information about the government's rationale for selecting drugs or settling on prices.During the first round of the talks, Medicare provided opportunities for public input from patients, caregivers and consumer groups. But Kupferberg said the Trump administration could move to bring in other stakeholders beyond manufacturers and patients, like insurers or even middlemen called pharmacy benefit managers. ""It could be a much broader type of negotiation process,"" he said. The administration could also reinterpret the guidelines of the law, which could change what products get selected and how much prices fall, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.For example, the IRA says the drugs selected for negotiations must have been on the market for at least seven years without generic competitors, or 11 years in the case of biologic products such as vaccines. But the Trump administration, when selecting another round of drugs, may have ""looser standards"" for determining whether a drug has competition in the market and should be exempt from negotiated prices, Campbell said. Trump could also revise what Medicare considers one drug for the purpose of negotiations, KFF's Cubanski said. Currently, different products that share the same active ingredient can be selected as a single product, which the pharmaceutical industry opposes. The Biden administration, for example, included three of Novo Nordisk's branded medications with the same active ingredient – semaglutide – as one product in the second cycle of price talks. That includes the weight loss drug Wegovy, diabetes pill Rybelsus and the anti-obesity injection Ozempic. Of the three, Ozempic makes up the lion's share of Medicare spending.Either of those changes to how Medicare selects drugs could benefit drugmakers and lessen the revenue they lose from lower prices. The bigger question is how aggressively Medicare will negotiate prices under Trump, Cubanski said. Currently, the final negotiated price for a drug cannot exceed an upper limit, or ""ceiling"" price, established by the IRA.Trump could influence whether Medicare's initial price offer for a drug is closer to the ceiling price, which could weaken the program's ability to secure a deeper discount. Major changes to the price negotiations are much less likely to occur, as they would require help from Congress. For example, one of the pharmaceutical industry's biggest issues with the process is what drugmakers calls the ""pill penalty."" The law essentially spares biologics like vaccines from new negotiated prices for 13 years after they receive U.S. approval, compared with just nine years for small-molecule drugs that come in a pill or tablet form. The industry contends that the discrepancy discourages companies from investing in the development of small-molecule drugs, which are more convenient for patients.Cubanski said bipartisan legislation was introduced last year that proposes eliminating the pill penalty. If that bill makes it through Congress and to Trump's desk, ""I don't see why he wouldn't sign it,"" Cubanski said. She added that there appears to be growing interest in legislative changes to the negotiation program, but ""whether you get enough support in Congress is still really an open question."" There isn't the same level of bipartisan support for changes to the IRA as there is for efforts like pharmacy benefit manager reform, said Jesse Dresser, partner in Frier Levitt's life sciences department. ""I could see something like [PBM reform] happening a lot sooner than I could see trying to open up the IRA and tweak it, even if it's something that the administration might ultimately get behind,"" Dresser said. It's unclear how Trump will approach the ongoing legal fight between manufacturers and the federal government over the Medicare program.The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court. Nine lawsuits were ongoing as of January.""Will the Trump administration continue to defend the program? Or maybe not as aggressively defend the program?"" Cubanski said. ""I think those are some key questions."" If the Trump administration stops defending the program in court, judges could then make decisions on the matter without any opposition, Kupferberg said. But he said he doesn't believe the administration will want that outcome. The Trump administration would likely ""want to take control of that process, where the parties work out an agreement or revise and change the interpretation of the law,"" Kupferberg said. He added that it doesn't seem like Trump would want the entire negotiation program to disappear based on the lawsuits. That's because it would leave Trump in the position to come up with a replacement for Medicare drug price negotiations, and we ""just haven't seen one yet"" from him, Kupferberg said.",CNBC,10/02/2025,"[""President Donald Trump likely won't do away with a landmark process that allows Medicare to negotiate drug prices with manufacturers, even as he moves to erase Joe Biden's other historic policy accomplishments."", 'But Trump will likely make some changes to those price talks, and it may not require help from Congress.', '""Trump is looking to nibble around the edges of the law,"" said Matthew Kupferberg, a partner in Frier Levitt\'s life sciences group, adding the president is ""not looking to completely abandon the drug negotiation process at this point.', '""It\'s still unclear which way Trump will lean, however.', 'While some lawmakers and health policy experts said Trump could weaken the negotiations in a way that helps the pharmaceutical industry, other experts said he could double down and try to save patients and the federal government even more money to outdo his predecessor.', 'The path he takes could have huge stakes for the prices 68 million Medicare beneficiaries in the U.S. pay for their medications.', 'It will also have big implications for companies like Novo Nordisk, Bristol Myers Squibb, Pfizer and Merck, among others whose drugs were included in the first two rounds of talks.', ""The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade."", 'The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.', 'The Trump administration has offered few specifics on its approach to the negotiations, apart from saying in January that it will aim for ""greater transparency"" in the ongoing second cycle of the process and hear any ideas for improving it from external stakeholders.', 'Making significant changes to the law or repealing it altogether would be an uphill battle because it requires help from Congress, where Republicans hold slim majorities.', 'Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.', ""So the Trump administration could move to implement the provision differently than Biden did, including by changing how the government interprets the law's selection criteria for drugs, among other potential changes."", '""I think it is a question of how they interpret some of the statutory language,"" said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health policy organization.', 'Cubanski said we can expect a first glimpse at any changes in the coming months.', 'The Trump administration will start the monthslong negotiation process for a second cycle of 15 drugs, which will have new prices go into effect in 2027.', 'The Biden administration selected those medicines in January before Trump took office.', 'Drugmakers have until the end of February to decide whether to participate in the talks, which they likely will because they otherwise face stiff financial penalties.', 'Trump has so far only indicated the need for more transparency in Medicare drug price negotiations.', ""Kupferberg said that could mean disclosing more information about the government's rationale for selecting drugs or settling on prices."", 'During the first round of the talks, Medicare provided opportunities for public input from patients, caregivers and consumer groups.', 'But Kupferberg said the Trump administration could move to bring in other stakeholders beyond manufacturers and patients, like insurers or even middlemen called pharmacy benefit managers.', '""It could be a much broader type of negotiation process,"" he said.', 'The administration could also reinterpret the guidelines of the law, which could change what products get selected and how much prices fall, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.', 'For example, the IRA says the drugs selected for negotiations must have been on the market for at least seven years without generic competitors, or 11 years in the case of biologic products such as vaccines.', 'But the Trump administration, when selecting another round of drugs, may have ""looser standards"" for determining whether a drug has competition in the market and should be exempt from negotiated prices, Campbell said.', ""Trump could also revise what Medicare considers one drug for the purpose of negotiations, KFF's Cubanski said."", 'Currently, different products that share the same active ingredient can be selected as a single product, which the pharmaceutical industry opposes.', ""The Biden administration, for example, included three of Novo Nordisk's branded medications with the same active ingredient – semaglutide – as one product in the second cycle of price talks."", 'That includes the weight loss drug Wegovy, diabetes pill Rybelsus and the anti-obesity injection Ozempic.', ""Of the three, Ozempic makes up the lion's share of Medicare spending."", 'Either of those changes to how Medicare selects drugs could benefit drugmakers and lessen the revenue they lose from lower prices.', 'The bigger question is how aggressively Medicare will negotiate prices under Trump, Cubanski said.', 'Currently, the final negotiated price for a drug cannot exceed an upper limit, or ""ceiling"" price, established by the IRA.Trump could influence whether Medicare\'s initial price offer for a drug is closer to the ceiling price, which could weaken the program\'s ability to secure a deeper discount.', 'Major changes to the price negotiations are much less likely to occur, as they would require help from Congress.', 'For example, one of the pharmaceutical industry\'s biggest issues with the process is what drugmakers calls the ""pill penalty.', '""The law essentially spares biologics like vaccines from new negotiated prices for 13 years after they receive U.S. approval, compared with just nine years for small-molecule drugs that come in a pill or tablet form.', 'The industry contends that the discrepancy discourages companies from investing in the development of small-molecule drugs, which are more convenient for patients.', 'Cubanski said bipartisan legislation was introduced last year that proposes eliminating the pill penalty.', 'If that bill makes it through Congress and to Trump\'s desk, ""I don\'t see why he wouldn\'t sign it,"" Cubanski said.', 'She added that there appears to be growing interest in legislative changes to the negotiation program, but ""whether you get enough support in Congress is still really an open question.', '""There isn\'t the same level of bipartisan support for changes to the IRA as there is for efforts like pharmacy benefit manager reform, said Jesse Dresser, partner in Frier Levitt\'s life sciences department.', '""I could see something like [PBM reform] happening a lot sooner than I could see trying to open up the IRA and tweak it, even if it\'s something that the administration might ultimately get behind,"" Dresser said.', ""It's unclear how Trump will approach the ongoing legal fight between manufacturers and the federal government over the Medicare program."", ""The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court."", 'Nine lawsuits were ongoing as of January.', '""Will the Trump administration continue to defend the program?', 'Or maybe not as aggressively defend the program?""', 'Cubanski said. ""', 'I think those are some key questions.', '""If the Trump administration stops defending the program in court, judges could then make decisions on the matter without any opposition, Kupferberg said.', ""But he said he doesn't believe the administration will want that outcome."", 'The Trump administration would likely ""want to take control of that process, where the parties work out an agreement or revise and change the interpretation of the law,"" Kupferberg said.', ""He added that it doesn't seem like Trump would want the entire negotiation program to disappear based on the lawsuits."", 'That\'s because it would leave Trump in the position to come up with a replacement for Medicare drug price negotiations, and we ""just haven\'t seen one yet"" from him, Kupferberg said.']",0.0868428474690438,"Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.","The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court.",-0.0563547280099656,"The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade.","The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.",2025-02-16
"As Target and other retailers drop DEI programs, Black founders could face tougher battle to get and stay on shelves",https://www.cnbc.com/2025/02/14/target-walmart-dei-decisions-could-hurt-black-founders.html,2025-02-14T16:17:44+0000,"Fragrance brand Brown Girl Jane's perfume bottles sit on shelves at Sephora near some of the most storied labels in the fashion and beauty world, including Prada and Dior.For the Black-owned brand, getting a retailer to bet on it was just the start, Brown Girl Jane CEO and founder Malaika Jones said. She said Sephora has supported the company so it can better compete with well-known brands with huge marketing budgets and glossy celebrity endorsements.Brown Girl Jane received a $100,000 grant last year from Sephora to help grow its business and participated in Sephora's Accelerate program, which aims to boost founders who are people of color. Sephora spotlighted the fragrance brand in an email to customers in early February, putting it in front of potential shoppers who don't know its name. Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago.While Sephora has put its weight behind its brand incubator, much larger retailers like Walmart and Target recently scaled back similar efforts focused on finding and funding more brands founded by people of color. Without that support from the retailers themselves, brands like Brown Girl Jane could face a tougher time getting on shelves — and succeeding once they get there.""For small brands, but for any brands, really, it's a constant fight for relevance and for visibility,"" Jones said. ""And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves.""When retailers launched supplier diversity programs — many of them in the months after police killed George Floyd in 2020 — top industry leaders including Walmart CEO Doug McMillon and Target CEO Brian Cornell spoke out about the institutional barriers that people of color face, including when financing their businesses. Now, as more retailers drop diversity, equity and inclusion programs, Black-owned brands may find it harder to clear those hurdles.In January, Target dropped specific DEI pledges that it made four years ago after Floyd was murdered a short distance from its Minneapolis headquarters. Among those goals, the big-box retailer had committed to adding products from more than 500 Black-owned brands to its shelves or website and spending $2 billion with Black-owned businesses by 2025.Late last year, Walmart confirmed that it was ending key diversity initiatives, including winding down the Center for Racial Equity, a nonprofit that the retailer started and funded with $100 million to tackle racial inequities. It had chosen finance as one of those focus areas, noting the gap in funding for Black entrepreneurs.Gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers.Not every major retailer has dropped DEI initiatives. Sephora, Costco and E.l.f. Beauty, among others, have reaffirmed their commitments. And the most prominent effort to increase the share of Black-owned brands on retail shelves, the 15 Percent Pledge, still has major backers.Companies from Google to Ford and Tractor Supply have rolled back their initiatives to boost representation of people of color, women and LGBTQ+ people, as political backlash and pressure from conservative activists has intensified. The trend only accelerated after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as ""dangerous, demeaning, and immoral race- and sex-based preferences.""It's a sharp change from about five years ago, when companies released a wave of announcements committing to fighting inequity. They made bold pledges to add more diversity to their workforces and C-suites, seek out Black and minority vendors and donate to philanthropic causes that fought racism and supported expanded opportunities for marginalized groups.Fear of litigation, activist investor scrutiny and political pressure has caused companies to backpedal or keep their initiatives below the radar, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI.One of those lawsuits targeted The Fearless Fund, an Atlanta-based venture capital fund dedicated to awarding grants to businesses founded by Black women to bridge a longstanding funding gap. Only 1.3% of the more than $345 billion raised by venture-backed startups in 2021 went to Black founders, according to Deloitte and Venture Forward's 2023 report. About 2.4% went to startups led by female founders and 2.1% of that total went to startups led by Hispanic founders.American Alliance for Equal Rights, a conservative group founded by Edward Blum, sued The Fearless Fund in 2023, accusing it of discriminating against non-Black business owners. Blum previously fought against race-based college admissions, a campaign that led to the Supreme Court's ruling that affirmative action policies are unconstitutional — which some companies cited last year in ending their DEI initiatives.As part of a settlement reached last year, The Fearless Fund shut down its grant program.Solorzano said that lawsuit had a chilling effect and will ""seriously undermine some of these [supplier] initiatives."" He said he expects more corporations to scrub numbers from their diversity programs, including supplier programs focused on increasing Black- and minority-owned brands on shelves.Yet ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, he said. Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors.Even as some retailers walk back diversity pledges, Sephora, Costco and E.l.f. Beauty, have doubled down on those efforts not as a feel-good move, but as a meaningful part of their business strategies.Sephora, a 15 Percent Pledge member which is owned by LVMH, has increased the percentage of Black-owned brands on its shelves from 3% in 2020 to about 10% as of 2025, said Artemis Patrick, president and CEO of Sephora North America. In its hair category, 15% of the brands are Black-owned.Sephora started Accelerate in 2016 with a focus on female founders. The six-month incubator helps mentor business owners, connects them to investors and gives them the opportunity to launch at Sephora.The retailer pivoted the program in 2020 to focus on Black and other minority founders to address ""the need of the evolving consumer and where we truly did feel like we had an assortment gap,"" Patrick said.So far, more than 33 Black- and minority-owned brands have gone through the incubator, she said.""Our business is really good and the fact that we've been really focused on diversifying our assortment, I think there's a strong correlation,"" she said.She added ""it would be very strange in a beauty category to not be driving diversity in your assortment that meets the needs of your clients.""At Costco's annual meeting last month, 98% of shareholders rejected a proposal that requested a report on the risk of Costco maintaining diversity, equity and inclusion initiatives.In a proxy statement ahead of the meeting, the warehouse club's board of directors said diversity benefits its business and helps it better serve a wide range of customers.""Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the 'treasure hunt' that our customers value,"" it wrote.Costco's board added that diversity across its suppliers ""fosters creativity and innovation in the merchandise and services that we offer our members.""Tarang Amin, CEO of popular Gen Z makeup brand E.l.f. Beauty, called the company's diversity ""a key competitive advantage in terms of our results"" in an interview with CNN earlier this month. He said the company's employees are 74% women, 76% Gen Z and millennial and over 44% diverse and ""reflect the community we serve.""Nearly five years ago, Aurora James challenged companies in an Instagram post to dedicate more of their shelf space to Black-owned businesses. That idea, which she proposed days after Floyd's murder, started the 15 Percent Pledge.""So many of your businesses are built on Black spending power,"" she wrote at the time. ""So many of your stores are set up in Black communities. So many of your posts seen on Black feeds. This is the least you can do for us. We represent 15% of the population and we need to represent 15% of your shelf space.""Sephora was the first company to sign the pledge. About 22 companies are active participants in the pledge, including Macy's and Nordstrom, according to the nonprofit. The 15 Percent Pledge has a directory of Black-owned brands on its website. It also awards grants to businesses and raises money to back Black-owned businesses through an annual gala, which drew celebrities, actors and business leaders including Kim Kardashian, Kelly Rowland and Jesse Williams earlier this month.Some of the changes inspired by the pledge are visible on shelves.Sephora has more than tripled the Black-owned brands on its shelves in the past five years. In the email to customers, it noted that number had spiked from eight to 30 since it took the Fifteen Percent Pledge in 2020.Those brands include makeup, shampoos and more backed by small entrepreneurs and celebrities, including Fenty Beauty by Rihanna, Pattern by Tracee Ellis Ross and Sienna Naturals, which was co-founded by Hannah Diop and actress Issa Rae.Nordstrom, which also signed on to the 15 Percent Pledge, has now added more Black-owned brands, too, including Buttah Skin, Briogeo and Honor the Gift.And Macy's, another 15 Percent Pledge participant, has had an accelerator for over a decade which was launched to support underrepresented brand owners and founders. The Workshop, which started in 2011, offers grant funding and education for companies seeking to make it on retailers' shelves and websites.James, who herself is a Black founder of a luxury brand called Brother Vellies, said she's disheartened to see companies back away from supporting smaller Black- and minority-owned suppliers.""The idea is not about giving preferential treatment,"" she said. ""The idea is about making sure that we cast our net wide enough that we're not just looking at the obvious channels.""By relying more on big conglomerates, retailers miss out on funding smaller U.S. business that create jobs and stimulate the local economy, she said.""In a time when I think small business all across America is suffering, to specifically target groups of founders and say, 'You can't get access or opportunity,' just feels like a blow to all small businesses across America,"" she said.She said the reversal of DEI by some companies show their commitments never ran deep.""Target never took the pledge. Walmart never took the pledge,"" she said. ""I don't think that they were ever really that serious about what they were doing.""Not every company has stuck with the pledge. Gap did not renew with the group late last year — but said in a statement that it's not backing away from DEI efforts. Over the past year, the company has gone through major changes as part of a turnaround led by Richard Dickson, its new CEO.In a statement, the denim and apparel retailer, which also includes Old Navy and Athleta, said the pledge looked different for the company because it sells and manufacturers its own brands. It said it ""joined the pledge with the goal of increasing our diverse access and pipeline programs, and we met and exceeded that goal.""A Gap spokesman declined to share specific goals, but said they focused on recruiting talent from diverse backgrounds.This week, Gap rolled out a limited-time initiative to support Black businesses by selling shirts and hoodies from six Black designers from Harlem's Fashion Row online and in select stores.Walmart and Target have downplayed concerns that they will start to carry fewer Black-owned brands. A Walmart spokesperson pointed to the company's Supplier Inclusion Program, which focuses on adding products from smaller vendors. She said the company also works with banks and lenders to expedite payments for orders or connect suppliers to loans.Even as Target phases out DEI goals for Black-owned businesses, the discounter will keep offering Black-owned and minority-owned brands, a spokesman said. On its website, it's promoting its collection of Black History Month items. He said Target will offer its Forward Founders program two times per year, which is designed for early-stage consumer packaged goods companies across categories including beauty, food and pets.When Target launched Forward Founders in 2021, the company said the program was ""designed to help Black-owned businesses increase their potential for long-term success in retail.""Since last year, Target's website has said the program is ""evolving"" — noting that founders no longer fill out an application for programs and Target will reach out to them if they're ""a strategic fit."" A spokesman said the company's changes to its DEI initiatives do not affect its programs to boost founders, but did not offer more detail.Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.In an Instagram post, social media personality, actress, and entrepreneur Tabitha Brown said ""it's definitely heartbreaking to feel unsupported."" But Brown, who has an active contract with Target, encouraged shoppers to use their dollars strategically when shopping Target's shelves.She's developed merchandise with Target, including a collection of clothing, swimwear and home decor. Target also carries Donna's Recipe, a haircare brand she co-founded.""You can still go into those stores, if you choose to, and buy specific brands that you want to support. And let the other things not get your money,"" she said.She said if sales of Black-owned brands fall, retailers will remove them from their shelves.""And then what happens to all the businesses who worked so hard to get where they are?"" she said.Handbag designer Brandon Blackwood said he worries that it will be harder for the next founder like him to get picked up by a major retailer.His brand took off in 2020 during the Black Lives Matter movement, after he made a tote decorated with three words instead of a logo: ""End Systemic Racism."" The bag gained traction through social media.Yet he said major retailers that picked up handbags from his brand at the time, including Neiman Marcus, Bloomingdale's and Nordstrom, ""helped put my product in front of a lot of people that wouldn't necessarily have seen it.""""That really helped us and that really helped our brand awareness,"" he said.If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.For Brown Girl Jane, winning the confidence and business of major retailers — and particularly, Sephora — has been game changing, said Jones, the company's founder and CEO. The brand got picked up first by Nordstrom in 2021. Now, Macy's, Saks Fifth Avenue and Bloomingdale's also sell its fragrances.Sephora is its the biggest wholesale deal so far: The beauty retailer carries some exclusive scents, including Carnivale, a fragrance that sells for $102 and blends together juicy mango, sandalwood and creamy vanilla.Jones said the company's annual revenue is now in the $5 million to $7 million range. Roughly half of the company's sales come from wholesale.She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they've also been ""the biggest champion and a true partner of the brand.""And she said that customers of all races desire her brand — and others from Black founders. About 40% of Brown Girl Jane's customers are white, she said.By backing away from DEI, she said companies also send a message to their buyers that casting a wide net for new brands doesn't matter.""It's one thing to say 'Ok, yeah. They [buyers] can still find who they find,'"" she said. ""But we know that without intentionality, a lot of these brands are just going to be overlooked.""",CNBC,14/02/2025,"[""Fragrance brand Brown Girl Jane's perfume bottles sit on shelves at Sephora near some of the most storied labels in the fashion and beauty world, including Prada and Dior."", 'For the Black-owned brand, getting a retailer to bet on it was just the start, Brown Girl Jane CEO and founder Malaika Jones said.', 'She said Sephora has supported the company so it can better compete with well-known brands with huge marketing budgets and glossy celebrity endorsements.', ""Brown Girl Jane received a $100,000 grant last year from Sephora to help grow its business and participated in Sephora's Accelerate program, which aims to boost founders who are people of color."", ""Sephora spotlighted the fragrance brand in an email to customers in early February, putting it in front of potential shoppers who don't know its name."", ""Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago."", 'While Sephora has put its weight behind its brand incubator, much larger retailers like Walmart and Target recently scaled back similar efforts focused on finding and funding more brands founded by people of color.', 'Without that support from the retailers themselves, brands like Brown Girl Jane could face a tougher time getting on shelves — and succeeding once they get there.', '""For small brands, but for any brands, really, it\'s a constant fight for relevance and for visibility,"" Jones said. ""', ""And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves."", '""When retailers launched supplier diversity programs — many of them in the months after police killed George Floyd in 2020 — top industry leaders including Walmart CEO Doug McMillon and Target CEO Brian Cornell spoke out about the institutional barriers that people of color face, including when financing their businesses.', 'Now, as more retailers drop diversity, equity and inclusion programs, Black-owned brands may find it harder to clear those hurdles.', 'In January, Target dropped specific DEI pledges that it made four years ago after Floyd was murdered a short distance from its Minneapolis headquarters.', 'Among those goals, the big-box retailer had committed to adding products from more than 500 Black-owned brands to its shelves or website and spending $2 billion with Black-owned businesses by 2025.Late last year, Walmart confirmed that it was ending key diversity initiatives, including winding down the Center for Racial Equity, a nonprofit that the retailer started and funded with $100 million to tackle racial inequities.', 'It had chosen finance as one of those focus areas, noting the gap in funding for Black entrepreneurs.', ""Gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers."", 'Not every major retailer has dropped DEI initiatives.', 'Sephora, Costco and E.l.f.', 'Beauty, among others, have reaffirmed their commitments.', 'And the most prominent effort to increase the share of Black-owned brands on retail shelves, the 15 Percent Pledge, still has major backers.', 'Companies from Google to Ford and Tractor Supply have rolled back their initiatives to boost representation of people of color, women and LGBTQ+ people, as political backlash and pressure from conservative activists has intensified.', 'The trend only accelerated after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as ""dangerous, demeaning, and immoral race- and sex-based preferences.', '""It\'s a sharp change from about five years ago, when companies released a wave of announcements committing to fighting inequity.', 'They made bold pledges to add more diversity to their workforces and C-suites, seek out Black and minority vendors and donate to philanthropic causes that fought racism and supported expanded opportunities for marginalized groups.', 'Fear of litigation, activist investor scrutiny and political pressure has caused companies to backpedal or keep their initiatives below the radar, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI.One of those lawsuits targeted The Fearless Fund, an Atlanta-based venture capital fund dedicated to awarding grants to businesses founded by Black women to bridge a longstanding funding gap.', ""Only 1.3% of the more than $345 billion raised by venture-backed startups in 2021 went to Black founders, according to Deloitte and Venture Forward's 2023 report."", 'About 2.4% went to startups led by female founders and 2.1% of that total went to startups led by Hispanic founders.', 'American Alliance for Equal Rights, a conservative group founded by Edward Blum, sued The Fearless Fund in 2023, accusing it of discriminating against non-Black business owners.', ""Blum previously fought against race-based college admissions, a campaign that led to the Supreme Court's ruling that affirmative action policies are unconstitutional — which some companies cited last year in ending their DEI initiatives."", 'As part of a settlement reached last year, The Fearless Fund shut down its grant program.', 'Solorzano said that lawsuit had a chilling effect and will ""seriously undermine some of these [supplier] initiatives.""', 'He said he expects more corporations to scrub numbers from their diversity programs, including supplier programs focused on increasing Black- and minority-owned brands on shelves.', 'Yet ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, he said.', 'Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors.', 'Even as some retailers walk back diversity pledges, Sephora, Costco and E.l.f.', 'Beauty, have doubled down on those efforts not as a feel-good move, but as a meaningful part of their business strategies.', 'Sephora, a 15 Percent Pledge member which is owned by LVMH, has increased the percentage of Black-owned brands on its shelves from 3% in 2020 to about 10% as of 2025, said Artemis Patrick, president and CEO of Sephora North America.', 'In its hair category, 15% of the brands are Black-owned.', 'Sephora started Accelerate in 2016 with a focus on female founders.', 'The six-month incubator helps mentor business owners, connects them to investors and gives them the opportunity to launch at Sephora.', 'The retailer pivoted the program in 2020 to focus on Black and other minority founders to address ""the need of the evolving consumer and where we truly did feel like we had an assortment gap,"" Patrick said.', 'So far, more than 33 Black- and minority-owned brands have gone through the incubator, she said.', '""Our business is really good and the fact that we\'ve been really focused on diversifying our assortment, I think there\'s a strong correlation,"" she said.', 'She added ""it would be very strange in a beauty category to not be driving diversity in your assortment that meets the needs of your clients.', '""At Costco\'s annual meeting last month, 98% of shareholders rejected a proposal that requested a report on the risk of Costco maintaining diversity, equity and inclusion initiatives.', ""In a proxy statement ahead of the meeting, the warehouse club's board of directors said diversity benefits its business and helps it better serve a wide range of customers."", '""Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the \'treasure hunt\' that our customers value,"" it wrote.', 'Costco\'s board added that diversity across its suppliers ""fosters creativity and innovation in the merchandise and services that we offer our members.', '""Tarang Amin, CEO of popular Gen Z makeup brand E.l.f.', 'Beauty, called the company\'s diversity ""a key competitive advantage in terms of our results"" in an interview with CNN earlier this month.', 'He said the company\'s employees are 74% women, 76% Gen Z and millennial and over 44% diverse and ""reflect the community we serve.', '""Nearly five years ago, Aurora James challenged companies in an Instagram post to dedicate more of their shelf space to Black-owned businesses.', ""That idea, which she proposed days after Floyd's murder, started the 15 Percent Pledge."", '""So many of your businesses are built on Black spending power,"" she wrote at the time. ""', 'So many of your stores are set up in Black communities.', 'So many of your posts seen on Black feeds.', 'This is the least you can do for us.', 'We represent 15% of the population and we need to represent 15% of your shelf space.', '""Sephora was the first company to sign the pledge.', ""About 22 companies are active participants in the pledge, including Macy's and Nordstrom, according to the nonprofit."", 'The 15 Percent Pledge has a directory of Black-owned brands on its website.', 'It also awards grants to businesses and raises money to back Black-owned businesses through an annual gala, which drew celebrities, actors and business leaders including Kim Kardashian, Kelly Rowland and Jesse Williams earlier this month.', 'Some of the changes inspired by the pledge are visible on shelves.', 'Sephora has more than tripled the Black-owned brands on its shelves in the past five years.', 'In the email to customers, it noted that number had spiked from eight to 30 since it took the Fifteen Percent Pledge in 2020.Those brands include makeup, shampoos and more backed by small entrepreneurs and celebrities, including Fenty Beauty by Rihanna, Pattern by Tracee Ellis Ross and Sienna Naturals, which was co-founded by Hannah Diop and actress Issa Rae.', 'Nordstrom, which also signed on to the 15 Percent Pledge, has now added more Black-owned brands, too, including Buttah Skin, Briogeo and Honor the Gift.', ""And Macy's, another 15 Percent Pledge participant, has had an accelerator for over a decade which was launched to support underrepresented brand owners and founders."", ""The Workshop, which started in 2011, offers grant funding and education for companies seeking to make it on retailers' shelves and websites."", ""James, who herself is a Black founder of a luxury brand called Brother Vellies, said she's disheartened to see companies back away from supporting smaller Black- and minority-owned suppliers."", '""The idea is not about giving preferential treatment,"" she said. ""', ""The idea is about making sure that we cast our net wide enough that we're not just looking at the obvious channels."", '""By relying more on big conglomerates, retailers miss out on funding smaller U.S. business that create jobs and stimulate the local economy, she said.', '""In a time when I think small business all across America is suffering, to specifically target groups of founders and say, \'You can\'t get access or opportunity,\' just feels like a blow to all small businesses across America,"" she said.', 'She said the reversal of DEI by some companies show their commitments never ran deep.', '""Target never took the pledge.', 'Walmart never took the pledge,"" she said. ""', ""I don't think that they were ever really that serious about what they were doing."", '""Not every company has stuck with the pledge.', ""Gap did not renew with the group late last year — but said in a statement that it's not backing away from DEI efforts."", 'Over the past year, the company has gone through major changes as part of a turnaround led by Richard Dickson, its new CEO.In a statement, the denim and apparel retailer, which also includes Old Navy and Athleta, said the pledge looked different for the company because it sells and manufacturers its own brands.', 'It said it ""joined thepledge with the goal of increasing our diverse access and pipeline programs, and we met and exceeded that goal.', '""A Gap spokesman declined to share specific goals, but said they focused on recruiting talent from diverse backgrounds.', ""This week, Gap rolled out a limited-time initiative to support Black businesses by selling shirts and hoodies from six Black designers from Harlem's Fashion Row online and in select stores."", 'Walmart and Target have downplayed concerns that they will start to carry fewer Black-owned brands.', ""A Walmart spokesperson pointed to the company'sSupplier Inclusion Program, which focuses on adding products from smaller vendors."", 'She said the company also works with banks and lenders to expedite payments for orders or connect suppliers to loans.', 'Even as Target phases out DEI goals for Black-owned businesses, the discounter will keep offering Black-owned and minority-owned brands, a spokesman said.', ""On its website, it's promoting its collection of Black History Month items."", 'He said Target will offer itsForward Foundersprogram two times per year, which is designed for early-stage consumer packaged goods companies across categories including beauty, food and pets.', 'When Target launched Forward Founders in 2021, the company said the program was ""designed to help Black-owned businesses increase their potential for long-term success in retail.', '""Since last year, Target\'s website has said the program is ""evolving"" —noting that founders no longer fill out an application for programs and Target will reach out to them if they\'re ""a strategic fit.', '""A spokesman said the company\'s changes to its DEI initiatives do not affect its programs to boost founders, but did not offer more detail.', 'Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.', 'In an Instagram post, social media personality, actress, and entrepreneur Tabitha Brown said ""it\'s definitely heartbreaking to feel unsupported.""', ""But Brown, who has an active contract with Target, encouraged shoppers to use their dollars strategically when shopping Target's shelves."", ""She's developed merchandise with Target, including a collection of clothing, swimwear and home decor."", ""Target also carries Donna's Recipe, a haircare brand she co-founded."", '""You can still go into those stores, if you choose to, and buy specific brands that you want to support.', 'And let the other things not get your money,"" she said.', 'She said if sales of Black-owned brands fall, retailers will remove them from their shelves.', '""And then what happens to all the businesses who worked so hard to get where they are?""', 'she said.', 'Handbag designer Brandon Blackwood said he worries that it will be harder for the next founder like him to get picked up by a major retailer.', 'His brand took off in 2020 during the Black Lives Matter movement, after he made a tote decorated with three words instead of a logo: ""End Systemic Racism.""', 'The bag gained traction through social media.', 'Yet he said major retailers that picked up handbags from his brand at the time, including Neiman Marcus, Bloomingdale\'s and Nordstrom, ""helped put my product in front of a lot of people that wouldn\'t necessarily have seen it.', '""""That really helped us and that really helped our brand awareness,"" he said.', 'If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.', ""For Brown Girl Jane, winning the confidence and business of major retailers — and particularly, Sephora — has been game changing, said Jones, the company's founder and CEO."", 'The brand got picked up first by Nordstrom in 2021.', ""Now, Macy's, Saks Fifth Avenue and Bloomingdale's also sell its fragrances."", 'Sephora is its the biggest wholesale deal so far: The beauty retailer carries some exclusive scents, including Carnivale, a fragrance that sells for $102 and blends together juicy mango, sandalwood and creamy vanilla.', ""Jones said the company's annual revenue is now in the $5 million to $7 million range."", ""Roughly half of the company's sales come from wholesale."", 'She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they\'ve also been ""the biggest champion and a true partner of the brand.', '""And she said that customers of all races desire her brand — and others from Black founders.', ""About 40% of Brown Girl Jane's customers are white, she said."", ""By backing away from DEI, she said companies also send a message to their buyers that casting a wide net for new brands doesn't matter."", '""It\'s one thing to say \'Ok, yeah.', 'They [buyers] can still find who they find,\'"" she said. ""', 'But we know that without intentionality, a lot of these brands are just going to be overlooked.""']",0.1672524808533432,"She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they've also been ""the biggest champion and a true partner of the brand.","Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.",-0.069505982539233,Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago.,"If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.",2025-02-16
Zelle payments top $1 trillion in 2024 as network's growth outpaces rivals including PayPal,https://www.cnbc.com/2025/02/12/zelle-payments-top-1-trillion-in-2024.html,2025-02-12T17:20:37+0000,"In this articleZelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.Last year's payment volumes were ""by far the most money ever moved by a P2P payments service in a single year,"" Denise Leonhard, general manager of Zelle, told CNBC.Zelle, which was launched in 2017 in response to fintech platforms such as Venmo, PayPal and CashApp, has some key advantages over those players. EWS is owned by seven of the biggest U.S. banks, including JPMorgan Chase, Bank of America and Wells Fargo, and Zelle allows for instant money transfers made within the apps of thousands of member institutions.Its growth rate last year exceeded that of PayPal, which reported that total P2P payments volumes reached more than $400 billion.Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement. The company has introduced measures to reduce fraud and has said that 99.95% of transactions are free of fraud and scams.Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.""People are using Zelle in order to do things like pay their rent or paying their nanny,"" Leonhard said. ""We want to continue to be top of mind for those consumers to be able to use this every day,"" Leonhard added.",CNBC,12/02/2025,"['In this articleZelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.', 'The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.', 'Last year\'s payment volumes were ""by far the most money ever moved by a P2P payments service in a single year,"" Denise Leonhard, general manager of Zelle, told CNBC.Zelle, which was launched in 2017 in response to fintech platforms such as Venmo, PayPal and CashApp, has some key advantages over those players.', 'EWS is owned by seven of the biggest U.S. banks, including JPMorgan Chase, Bank of America and Wells Fargo, and Zelle allows for instant money transfers made within the apps of thousands of member institutions.', 'Its growth rate last year exceeded that of PayPal, which reported that total P2P payments volumes reached more than $400 billion.', ""Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement."", 'The company has introduced measures to reduce fraud and has said that 99.95% of transactions are free of fraud and scams.', 'Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.', '""People are using Zelle in order to do things like pay their rent or paying their nanny,"" Leonhard said. ""', 'We want to continue to be top of mind for those consumers to be able to use this every day,"" Leonhard added.']",0.0115935725103827,"Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.",Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement.,0.9824706486293248,"The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.",,2025-02-16
Fashion's most hated garment — the skinny jean — is making a comeback,https://www.cnbc.com/2025/02/08/skinny-jeans-are-making-a-comeback.html,2025-02-10T15:30:47+0000,"In this articleThe vilified linchpin of millennial and Y2K fashion – the skinny jean – might be on its way to a comeback.Over the last few months, a range of skinny styles, including pants and jeans, have cropped up on fashion runways, influencer videos and Google search trends, indicating the divisive garment could soon be a closet staple again. Part of the buzz around skinny jeans undoubtedly came when TikTok star and Gen Z influencer Alix Earle debuted a pair of exclusive skinnies with denim brand Frame at the end of January, but the hype was already building before that. ""For like the last six months, we started to hear rumblings of skinny jeans making a comeback,"" said Janine Stichter, a retail analyst and managing director at BTIG. ""If you look at Google Trends data for skinny jeans ... it actually [spiked] the week of January 12 and it's been picking up steam ever since.""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.That likely led to a spike in interest across retailers. Reformation told CNBC this week its customers have been searching for skinny jeans on its website more frequently lately.American Eagle has also seen interest grow. ""Certainly, there's a lot of activity on skinny. I would like to say there's a styling thing that's happening, the high boot situation, and high boots and skinny jeans work, so that's definitely taking hold,"" Jen Foyle, American Eagle's president and executive creative officer, told CNBC in an interview.""You're starting to see some of that movement but right now, it's still relatively small, but we're prepared to roll with it as we test it and scale,"" she continued. ""Our job is to be nimble, right?""But like any fashion trend, the skinny jean resurgence was first spotted on the runways. Based on how the major designers are interpreting the look, it'll appear different this time around. ""On the runways, Prada, Isabel Morant, Tod's, they all did very slim silhouette pants. They're calling them skinny pants. The difference is that they're doing them in plaid, not just solids. They're doing them in these very tailored fabrics,"" said Shawn Grain Carter, a fashion professor at the Fashion Institute of Technology in New York. ""We're seeing some of the celebrities wear these skinny jeans, but they're not nearly as conforming … it's different from the jeggings that you saw [between 2009 and 2011]... It conforms to the leg, but it doesn't have to necessarily hug it so tightly that all you see is an outline of a woman's leg.""The unofficial queen of denim – Levi Strauss CEO Michelle Gass – spotted the same trend on the runways and told CNBC she expects the controversial jeans to officially come back ""sometime in the future.""""While we don't have a crystal ball, don't get rid of your skinny jeans,"" said Gass. ""I do think when we see a bigger trend re-emerge, it's going to look and feel different."" Grain Carter said skinny styles could start appearing in stores more widely by this summer, but Stichter said they could start returning to shelves closer to the fall when more consumers are out shopping for pants and jeans. That'll be welcome news for apparel and footwear retailers because whenever trends shift, it tends to trigger a surge in demand for new clothes, she said. ""If we are to get a full fledged restocking in any of these styles, it tends to be a big positive for the sector,"" said Stichter. ""Anytime you have a big silhouette shift, it's positive for restocking cycles. It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for."" For those who've only just stocked up their closet on baggy and loose fits, the current jean du jour, rest assured that there's room for both. If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter.Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead. ""The denim closet really should have all varieties of denim. It really is about what you're wearing, what your mood is, and people still wear skinny today,"" said Gass. ""So keep your loose, keep your baggie. Everything right now goes.""",CNBC,10/02/2025,"['In this articleThe vilified linchpin of millennial and Y2K fashion – the skinny jean – might be on its way to a comeback.', 'Over the last few months, a range of skinny styles, including pants and jeans, have cropped up on fashion runways, influencer videos and Google search trends, indicating the divisive garment could soon be a closet staple again.', 'Part of the buzz around skinny jeans undoubtedly came when TikTok star and Gen Z influencer Alix Earle debuted a pair of exclusive skinnies with denim brand Frame at the end of January, but the hype was already building before that.', '""For like the last six months, we started to hear rumblings of skinny jeans making a comeback,"" said Janine Stichter, a retail analyst and managing director at BTIG. ""', ""If you look at Google Trends data for skinny jeans ... it actually [spiked] the week of January 12 and it's been picking up steam ever since."", '""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.', 'That likely led to a spike in interest across retailers.', 'Reformation told CNBC this week its customers have been searching for skinny jeans on its website more frequently lately.', 'American Eagle has also seen interest grow.', '""Certainly, there\'s a lot of activity on skinny.', 'I would like to say there\'s a styling thing that\'s happening, the high boot situation, and high boots and skinny jeans work, so that\'s definitely taking hold,"" Jen Foyle, American Eagle\'s president and executive creative officer, told CNBC in an interview.', '""You\'re starting to see some of that movement but right now, it\'s still relatively small, but we\'re prepared to roll with it as we test it and scale,"" she continued. ""', 'Our job is to be nimble, right?""But like any fashion trend, the skinny jean resurgence was first spotted on the runways.', ""Based on how the major designers are interpreting the look, it'll appear different this time around."", '""On the runways, Prada, Isabel Morant, Tod\'s, they all did very slim silhouette pants.', ""They're calling them skinny pants."", ""The difference is that they're doing them in plaid, not just solids."", 'They\'re doing them in these very tailored fabrics,"" said Shawn Grain Carter, a fashion professor at the Fashion Institute of Technology in New York. ""', ""We're seeing some of the celebrities wear these skinny jeans, but they're not nearly as conforming … it's different from the jeggings that you saw [between 2009 and 2011]... It conforms to the leg, but it doesn't have to necessarily hug it so tightly that all you see is an outline of a woman's leg."", '""The unofficial queen of denim – Levi Strauss CEO Michelle Gass – spotted the same trend on the runways and told CNBC she expects the controversial jeans to officially come back ""sometime in the future.', '""""While we don\'t have a crystal ball, don\'t get rid of your skinny jeans,"" said Gass. ""', ""I do think when we see a bigger trend re-emerge, it's going to look and feel different."", '""Grain Carter said skinny styles could start appearing in stores more widely by this summer, but Stichtersaid they could start returning to shelves closer to the fall when more consumers are out shopping for pants and jeans.', ""That'll be welcome news for apparel and footwear retailers because whenever trends shift, it tends to trigger a surge in demand for new clothes, she said."", '""If we are to get a full fledged restocking in any of these styles, it tends to be a big positive for the sector,"" said Stichter. ""', ""Anytime you have a big silhouette shift, it's positive for restocking cycles."", ""It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for."", '""For those who\'ve only just stocked up their closet on baggy and loose fits, the current jean du jour, rest assured that there\'s room for both.', ""If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter."", ""Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead."", '""The denim closet really should have all varieties of denim.', 'It really is about what you\'re wearing, what your mood is, and people still wear skinny today,"" said Gass. ""', 'So keep your loose, keep your baggie.', 'Everything right now goes.""']",0.154870661078114,"It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for.","Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead.",0.8036356866359711,"""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.","If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter.",2025-02-16
Comcast and NBCUniversal receive FCC inquiry on DEI initiatives,https://www.cnbc.com/2025/02/12/comcast-nbcuniversal-fcc-inquiry-dei.html,2025-02-13T13:17:55+0000,"In this articleThe Federal Communications Commission has alerted Comcast Corp. that it will begin an investigation into the diversity, equity and inclusion efforts at the media giant.The FCC, the agency that regulates the media and telecommunications industry, said in a letter dated Tuesday that it would open the inquiry into both Comcast — which provides broadband, mobile and cable TV services under the Xfinity brand — and NBCUniversal, the media arm that encompasses the company's broadcast and cable TV networks, streaming app Peacock, and Universal film studio and amusement parks.The letter comes three weeks after President Donald Trump signed an executive order looking to end DEI practices at U.S. corporations. The order calls for each federal agency to ""identify up to nine potential civil compliance investigations"" among publicly traded companies, as well as nonprofits and other institutions.FCC Chairman Brendan Carr, a Republican who was recently appointed by Trump, said he was starting his investigation with Comcast and NBCUniversal because they ""cover a range of sectors regulated by the FCC.""""We have received an inquiry from the Federal Communications Commission and will be cooperating with the FCC to answer their questions,"" a Comcast spokesperson said in a statement Wednesday. ""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers."" Carr said in the letter sent to Comcast that he was ""concerned that Comcast and NBCUniversal may be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.""The letter goes on to say that ""Comcast states on its website that promoting DEI is 'a core value of our business' and public reports state that Comcast has an entire 'DEI infrastructure' that includes annual 'DEI day[s],' 'DEI training for company leaders,' and similar initiatives."" The letter says NBCUniversal has similar initiatives, ""including executives specifically dedicated to promoting DEI across the TV and programming side of the business.""Later on Wednesday, FCC Commissioner Geoffrey Starks issued a statement condemning the investigation and requesting to receive more information. He noted that when Carr was a commissioner himself, he ""blasted the prior administration for acting in a way that 'gives the FCC a nearly limitless power to veto private sector decision.'""""From what I know this enforcement action is out of our lane and out of our reach. I have asked for a briefing to understand the Enforcement Bureau's theory of the case, the authority relied upon and any prior precedent. This action gives me grave concern,"" Starks said in a statement. An FCC representative didn't immediately respond for comment regarding the statement from Starks.Fellow media giant Disney is changing its DEI programs, which includes updating performance factors and rebranding initiatives and employee resource groups, among other things, the company confirmed Wednesday.Public broadcaster PBS is shutting down its DEI office. A PBS representative confirmed that those employees were leaving the company, noting it was to stay in compliance with Trump's executive order.""We will continue to adhere to our mission and values. PBS will continue to reflect all of America and remain a welcoming place for everyone,"" the broadcaster said in a statement.Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.— CNBC's Sarah Whitten contributed to this article.",CNBC,13/02/2025,"['In this articleThe Federal Communications Commission has alerted Comcast Corp. that it will begin an investigation into the diversity, equity and inclusion efforts at the media giant.', ""The FCC, the agency that regulates the media and telecommunications industry, said in a letter dated Tuesday that it would open the inquiry into both Comcast — which provides broadband, mobile and cable TV services under the Xfinity brand — and NBCUniversal, the media arm that encompasses the company's broadcast and cable TV networks, streaming app Peacock, and Universal film studio and amusement parks."", 'The letter comes three weeks after President Donald Trump signed an executive order looking to end DEI practices at U.S. corporations.', 'The order calls for each federal agency to ""identify up to nine potential civil compliance investigations"" among publicly traded companies, as well as nonprofits and other institutions.', 'FCC Chairman Brendan Carr, a Republican who was recently appointed by Trump, said he was starting his investigation with Comcast and NBCUniversal because they ""cover a range of sectors regulated by the FCC.""""We have received an inquiry from the Federal Communications Commission and will be cooperating with the FCC to answer their questions,"" a Comcast spokesperson said in a statement Wednesday.', '""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers.', '""Carr said in the letter sent to Comcast that he was ""concerned that Comcast and NBCUniversal may be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.', '""The letter goes on to say that ""Comcast states on its website that promoting DEI is \'a core value of our business\' and public reports state that Comcast has an entire \'DEI infrastructure\' that includes annual \'DEI day[s],\' \'DEI training for company leaders,\' and similar initiatives.""', 'The letter says NBCUniversal has similar initiatives, ""including executives specifically dedicated to promoting DEI across the TV and programming side of the business.', '""Later on Wednesday, FCC Commissioner Geoffrey Starks issued a statement condemning the investigation and requesting to receive more information.', 'He noted that when Carr was a commissioner himself, he ""blasted the prior administration for acting in a way that \'gives the FCC a nearly limitless power to veto private sector decision.', '\'""""From what I know this enforcement action is out of our lane and out of our reach.', ""I have asked for a briefing to understand the Enforcement Bureau's theory of the case, the authority relied upon and any prior precedent."", 'This action gives me grave concern,"" Starks said in a statement.', ""An FCC representative didn't immediately respond for comment regarding the statement from Starks."", 'Fellow media giant Disney is changing its DEI programs, which includes updating performance factors and rebranding initiatives and employee resource groups, among other things, the company confirmed Wednesday.', 'Public broadcaster PBS is shutting down its DEI office.', ""A PBS representative confirmed that those employees were leaving the company, noting it was to stay in compliance with Trump's executive order."", '""We will continue to adhere to our mission and values.', 'PBS will continue to reflect all of America and remain a welcoming place for everyone,"" the broadcaster said in a statement.', 'Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.—', ""CNBC's Sarah Whitten contributed to this article.""]",0.1599878249686233,"""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers.","This action gives me grave concern,"" Starks said in a statement.",-0.982764333486557,,"This action gives me grave concern,"" Starks said in a statement.",2025-02-16
"McDonald's revenue disappoints, as U.S. sales see worst drop since pandemic",https://www.cnbc.com/2025/02/10/mcdonalds-mcd-q4-2024-earnings.html,2025-02-10T21:25:20+0000,"In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.But shares of the company rose nearly 5% as executives predicted sales would improve in 2025.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company's overall same-store sales growth of 0.4% outperformed Wall Street's expectations of same-store sales declines of 1%, according to StreetAccount estimates.But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company's domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.McDonald's said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald's U.S. same-store sales tick up in the third quarter.However, analysts have warned that value meals only work if customers also add menu items that aren't discounted to their orders. McDonald's executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.The biggest hit to McDonald's U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald's switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.However, in the days following the news of the outbreak, traffic at McDonald's U.S. restaurants fell steeply, particularly in the states affected.U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.McDonald's expects its U.S. sales to recover by the beginning of the second quarter, executives said.""I think right now what we're seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,"" CEO Chris Kempczinski said on the company's conference call. ""So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.Outside the U.S., sales were stronger. Both of McDonald's international divisions reported same-store sales increases, bolstering the company's overall performance.The company's international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.McDonald's international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.McDonald's reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald's earned $2.83 per share.Looking to 2025, the first quarter is expected to be the low point for McDonald's same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.For the full year, McDonald's plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company's international developmental licensed markets, including about 1,000 new restaurants in China.Including its investments in restaurant openings, McDonald's plans to spend between $3 billion and $3.2 billion this year on capital expenditures.The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.",CNBC,10/02/2025,"[""In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter."", ""But shares of the company rose nearly 5% as executives predicted sales would improve in 2025.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Net sales of $6.39 billion were roughly flat compared with the year-ago period."", ""The company's overall same-store sales growth of 0.4% outperformed Wall Street's expectations of same-store sales declines of 1%, according to StreetAccount estimates."", ""But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales."", ""Same-store sales at the company's domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.McDonald's said traffic was slightly positive, but customers spent less than usual during the quarter."", 'Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales.', ""The strategy worked, helping McDonald's U.S. same-store sales tick up in the third quarter."", ""However, analysts have warned that value meals only work if customers also add menu items that aren't discounted to their orders."", ""McDonald's executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.The biggest hit to McDonald's U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers."", ""McDonald's switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak."", 'In early December, the CDC declared the outbreak officially over.', ""However, in the days following the news of the outbreak, traffic at McDonald's U.S. restaurants fell steeply, particularly in the states affected."", 'U.S. sales hit their nadir in early November, but began rising again after that.', 'In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.', ""McDonald's expects its U.S. sales to recover by the beginning of the second quarter, executives said."", '""I think right now what we\'re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,"" CEO Chris Kempczinski said on the company\'s conference call. ""', 'So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.', '""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year.', 'In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.', 'Outside the U.S., sales were stronger.', ""Both of McDonald's international divisions reported same-store sales increases, bolstering the company's overall performance."", ""The company's international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.McDonald's international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%."", 'The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter.', 'One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.', ""McDonald's reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier."", ""Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald's earned $2.83 per share."", ""Looking to 2025, the first quarter is expected to be the low point for McDonald's same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors."", 'Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.', ""For the full year, McDonald's plans to open roughly 2,200 restaurants."", 'About a quarter of those locations will be in the U.S. and its international operated markets.', ""The rest will be in the company's international developmental licensed markets, including about 1,000 new restaurants in China."", ""Including its investments in restaurant openings, McDonald's plans to spend between $3 billion and $3.2 billion this year on capital expenditures."", 'The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.']",0.0983895484675885,"""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year.","In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.",0.0441114202789638,"Outside the U.S., sales were stronger.",But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales.,2025-02-16
Moderna beats on revenue but loses more than expected as it scales down manufacturing,https://www.cnbc.com/2025/02/14/moderna-mrna-q4-earnings-2024.html,2025-02-14T17:10:35+0000,"In this articleModerna on Friday posted fourth-quarter revenue that beat estimates, but lost more than expected for the period, as the biotech company continues to slash costs and demand for its Covid vaccine falls. It marks another quarter of growing pains for the company, which is racing to launch new products and recover from the rapid decline of its once-booming Covid business. Shares of Moderna climbed more than 3% on Friday. Moderna posted a net loss of $1.12 billion, or $2.91 per share, for the fourth quarter of 2024. That compares with net income of $217 million, or 55 cents per share, reported for the year-ago period.The company said the quarterly loss includes a roughly $238 million noncash charge related to ending a contract manufacturing agreement.In an interview, Moderna Chief Financial Officer Jamey Mock said one of the most important takeaways from the company's full-year 2024 results is that it reduced costs by 27% compared to 2023. By the end of 2025, Moderna expects to cut costs by $1 billion compared to 2024.Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year. Moderna expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter. The company slashed its 2025 sales guidance by roughly $1 billion in January, causing its shares to plummet. The stock is now down more than 20% for the year. At the time, Moderna pointed to increased competition in the Covid market, falling vaccination rates, timing around manufacturing contracts with a handful of countries and uncertainty around what advisors to the Centers for Disease Control and Prevention would recommend for revaccination of respiratory syncytial virus shots. ""Should those potential headwinds all hit, that's what would bring us to the low end of our guidance,"" Mock told CNBC, adding that the company is hoping to ""combat"" the challenges.Here's what Moderna reported for the fourth quarter that ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Moderna posted fourth-quarter sales of $966 million, less than half of the $2.8 billion it recorded during the same period a year ago. The vast majority of that total came from its Covid shot, which raked in $923 million, down 66% from the prior year. That includes $244 million in U.S. sales and $679 million from international markets. Analysts had expected the jab to pull in $909 million in sales for the quarter, according to estimates compiled by StreetAccount. Moderna said the decrease was mainly due to the earlier launch of the newest iteration of its Covid shot last year, which shifted sales into the third quarter. The U.S. Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing Moderna to ""meet demand more effectively ahead of the fourth quarter,"" the company added. Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna. The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May. It is Moderna's second approved product after its Covid vaccine. Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates. Moderna's RSV shot is so far approved for adults age 60 and above in the U.S., European Union, Canada, Norway, Iceland and Qatar, among other countries. The company is betting on a pipeline built around its messenger RNA platform, which is the technology used in both of those products. Moderna plans to beef up its portfolio with 10 new product approvals over the next three years. During the fourth quarter, Moderna submitted three mRNA products for regulatory approval, including its ""next-generation"" Covid shot, combination shot targeting Covid and the flu and RSV vaccine for high-risk adults ages 18 to 59. Moderna expects a decision from the FDA on the next-generation Covid shot in May, and a potential expanded approval for the RSV shot in June, according to Mock.Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products. Some of those products will have data readouts later this year, Mock noted.Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago. That includes $193 million in write-downs of unused doses of the Covid vaccine, among other costs. Research and development expenses dropped 20% to $1.1 billion compared with the same period in 2023. Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu and combination shot programs, and partially offset by increased spending on other new experimental products. Meanwhile, selling, general and administrative expenses for the period fell 25% to $351 million compared with the fourth quarter of 2023. SG&A expenses usually include the costs of promoting, selling and delivering a company's products and services.",CNBC,14/02/2025,"['In this articleModerna on Friday posted fourth-quarter revenue that beat estimates, but lost more than expected for the period, as the biotech company continues to slash costs and demand for its Covid vaccine falls.', 'It marks another quarter of growing pains for the company, which is racing to launch new products and recover from the rapid decline of its once-booming Covid business.', 'Shares of Moderna climbed more than 3% on Friday.', 'Moderna posted a net loss of $1.12 billion, or $2.91 per share, for the fourth quarter of 2024.', 'That compares with net income of $217 million, or 55 cents per share, reported for the year-ago period.', 'The company said the quarterly loss includes a roughly $238 million noncash charge related to ending a contract manufacturing agreement.', ""In an interview, Moderna Chief Financial Officer Jamey Mock said one of the most important takeaways from the company's full-year 2024 results is that it reduced costs by 27% compared to 2023."", 'By the end of 2025, Moderna expects to cut costs by $1 billion compared to 2024.Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year.', 'Moderna expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter.', 'The company slashed its 2025 sales guidance by roughly $1 billion in January, causing its shares to plummet.', 'The stock is now down more than 20% for the year.', 'At the time, Moderna pointed to increased competition in the Covid market, falling vaccination rates, timing around manufacturing contracts with a handful of countries and uncertainty around what advisors to the Centers for Disease Control and Prevention would recommend for revaccination of respiratory syncytial virus shots.', '""Should those potential headwinds all hit, that\'s what would bring us to the low end of our guidance,"" Mock told CNBC, adding that the company is hoping to ""combat"" the challenges.', ""Here's what Moderna reported for the fourth quarter that ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Moderna posted fourth-quarter sales of $966 million, less than half of the $2.8 billion it recorded during the same period a year ago."", 'The vast majority of that total came from its Covid shot, which raked in $923 million, down 66% from the prior year.', 'That includes $244 million in U.S. sales and $679 million from international markets.', 'Analysts had expected the jab to pull in $909 million in sales for the quarter, according to estimates compiled by StreetAccount.', 'Moderna said the decrease was mainly due to the earlier launch of the newest iteration of its Covid shot last year, which shifted sales into the third quarter.', 'The U.S. Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing Moderna to ""meet demand more effectively ahead of the fourth quarter,"" the company added.', 'Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna.', ""The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May."", ""It is Moderna's second approved product after its Covid vaccine."", 'Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates.', ""Moderna's RSV shot is so far approved for adults age 60 and above in the U.S., European Union, Canada, Norway, Iceland and Qatar, among other countries."", 'The company is betting on a pipeline built around its messenger RNA platform, which is the technology used in both of those products.', 'Moderna plans to beef up its portfolio with 10 new product approvals over the next three years.', 'During the fourth quarter, Moderna submitted three mRNA products for regulatory approval, including its ""next-generation"" Covid shot, combination shot targeting Covid and the flu and RSV vaccine for high-risk adults ages 18 to 59.Moderna expects a decision from the FDA on the next-generation Covid shot in May, and a potential expanded approval for the RSV shot in June, according to Mock.', 'Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products.', 'Some of those products will have data readouts later this year, Mock noted.', 'Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago.', 'That includes $193 million in write-downs of unused doses of the Covid vaccine, among other costs.', 'Research and development expenses dropped 20% to $1.1 billion compared with the same period in 2023.', 'Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu and combination shot programs, and partially offset by increased spending on other new experimental products.', 'Meanwhile, selling, general and administrative expenses for the period fell 25% to $351 million compared with the fourth quarter of 2023.', ""SG&A expenses usually include the costs of promoting, selling and delivering a company's products and services.""]",0.0104063483858514,"The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May.","Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products.",-0.0251545102699943,Shares of Moderna climbed more than 3% on Friday.,"Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna.",2025-02-16
"CVS shares pop 15% on big earnings beat, even as high medical costs drag down insurance unit",https://www.cnbc.com/2025/02/12/cvs-health-cvs-earnings-q4-2024.html,2025-02-12T20:55:44+0000,"In this articleCVS Health on Wednesday reported fourth-quarter revenue and profit that topped estimates, even as its troubled insurance business continued to see higher medical costs. The company also issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share, which was in line with Wall Street's expectations. But CVS did not provide a revenue forecast for the year. It caps off the first full quarter with David Joyner, a longtime CVS executive, as CEO of the troubled retail drugstore chain. Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.The company underwent a management reshuffle as part of a broader turnaround plan that includes $2 billion in cost cuts over the next several years. CVS has grappled with rising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs. Here's what CVS reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: The company's shares closed 15% higher on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers. But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries. CVS booked sales of $97.71 billion for the fourth quarter, up 4.2% from the same period a year ago due to growth in its pharmacy business and insurance unit. The company posted net income of $1.64 billion, or $1.30 per share, for the fourth quarter. That compares with net income of $2.05 billion, or $1.58 per share, for the year-earlier period. Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.19 per share for the quarter.CVS said its fourth-quarter earnings reflect higher medical costs in its insurance business and lower Medicare Advantage star ratings for the 2024 payment year, both of which weighed on the segment's operating results for the quarter. Those star ratings help Medicare patients compare the quality of Medicare health and drug plans. But CVS expects to improve margins in its Medicare Advantage business in 2025, partly by shrinking its membership in those plans by a ""high single-digit percentage"" from the end of 2024, Joyner said on an earnings call on Wednesday. He added that the company has improved Medicare Advantage star ratings for the year.""Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins,"" Joyner said.Companies can decide to stop covering patients in markets that they determine are unprofitable, and patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.All three of CVS' business segments beat Wall Street's expectations for the fourth quarter.CVS' insurance business booked $32.96 billion in revenue during the quarter, up more than 23% from the fourth quarter of 2023. Analysts expected the unit to take in $32.89 billion for the period, according to estimates from StreetAccount.But the business reported an adjusted operating loss of $439 million for the fourth quarter, compared with adjusted operating income of $676 million in the year-earlier period. That change was driven by higher medical costs and the company's Medicare Advantage star ratings, among other factors.The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier. A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.The fourth-quarter ratio was lower than the 95.9% that analysts were expecting, StreetAccount estimates said.""Medical trends remain elevated, although what we experienced in the fourth quarter was less severe than what we assumed,"" CVS CFO Thomas Cowhey said on the call.CVS' health services segment generated $47.02 billion in revenue for the quarter, down more than 4% compared with the same quarter in 2023. Analysts expected the unit to post $44.06 billion in sales for the period, according to StreetAccount.That unit includes Caremark, one of the nation's largest pharmacy benefit managers. Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client. Tyson Foods told CNBC in January 2024 that it dropped CVS as the pharmacy benefit manager for its roughly 140,000 employees, but it is unclear if any other companies stopped working with CVS during the year, as well.CVS' pharmacy and consumer wellness division booked $33.51 billion in sales for the fourth quarter, up more than 7% from the same period a year earlier. Analysts expected sales of $33.03 billion for the quarter, StreetAccount said.That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing.The increase was partly driven by higher prescription volume, CVS said. Pharmacy reimbursement pressure, the launch of new generic drugs and lower volume from front-of-store items like pantry food and toiletries, including from decreased store count, weighed on the unit's sales.",CNBC,12/02/2025,"['In this articleCVS Health on Wednesday reported fourth-quarter revenue and profit that topped estimates, even as its troubled insurance business continued to see higher medical costs.', ""The company also issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share, which was in line with Wall Street's expectations."", 'But CVS did not provide a revenue forecast for the year.', 'It caps off the first full quarter with David Joyner, a longtime CVS executive, as CEO of the troubled retail drugstore chain.', 'Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.', 'The company underwent a management reshuffle as part of a broader turnaround plan that includes $2 billion in cost cuts over the next several years.', 'CVS has grappled withrising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs.', ""Here's what CVS reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company's shares closed 15% higher on Wednesday."", 'CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.', 'Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.', 'But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries.', 'CVS booked sales of $97.71 billion for the fourth quarter, up 4.2% from the same period a year ago due to growth in its pharmacy business and insurance unit.', 'The company posted net income of $1.64 billion, or $1.30 per share, for the fourth quarter.', 'That compares with net income of $2.05 billion, or $1.58 per share, for the year-earlier period.', 'Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.19 per share for the quarter.', ""CVS said its fourth-quarter earnings reflect higher medical costs in its insurance business and lower Medicare Advantage star ratings for the 2024 payment year, both of which weighed on the segment's operating results for the quarter."", 'Those star ratings help Medicare patients compare the quality of Medicare health and drug plans.', 'But CVS expects to improve margins in its Medicare Advantage business in 2025, partly by shrinking its membership in those plans by a ""high single-digit percentage"" from the end of 2024, Joyner said on an earnings call on Wednesday.', 'He added that the company has improved Medicare Advantage star ratings for the year.', '""Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins,"" Joyner said.', 'Companies can decide to stop covering patients in markets that they determine are unprofitable, and patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.', ""All three of CVS' business segments beat Wall Street's expectations for the fourth quarter."", ""CVS' insurance business booked $32.96 billion in revenue during the quarter, up more than 23% from the fourth quarter of 2023."", 'Analysts expected the unit to take in $32.89 billion for the period, according to estimates from StreetAccount.', 'But the business reported an adjusted operating loss of $439 million for the fourth quarter, compared with adjusted operating income of $676 million in the year-earlier period.', ""That change was driven by higher medical costs and the company's Medicare Advantage star ratings, among other factors."", ""The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier."", 'A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.', 'The fourth-quarter ratio was lower than the 95.9% that analysts were expecting, StreetAccount estimates said.', '""Medical trends remain elevated, although what we experienced in the fourth quarter was less severe than what we assumed,"" CVS CFO Thomas Cowhey said on the call.', ""CVS' health services segment generated $47.02 billion in revenue for the quarter, down more than 4% compared with the same quarter in 2023."", 'Analysts expected the unit to post $44.06 billion in sales for the period, according to StreetAccount.', ""That unit includes Caremark, one of the nation's largest pharmacy benefit managers."", 'Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.', ""CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client."", 'Tyson Foods told CNBC in January 2024 that it dropped CVS as the pharmacy benefit manager for its roughly 140,000 employees, but it is unclear if any other companies stopped working with CVS during the year, as well.', ""CVS' pharmacy and consumer wellness division booked $33.51 billion in sales for the fourth quarter, up more than 7% from the same period a year earlier."", 'Analysts expected sales of $33.03 billion for the quarter, StreetAccount said.', ""That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing."", 'The increase was partly driven by higher prescription volume, CVS said.', ""Pharmacy reimbursement pressure, the launch of new generic drugs and lower volume from front-of-store items like pantry food and toiletries, including from decreased store count, weighed on the unit's sales.""]",0.1427858422630649,"Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.","CVS has grappled withrising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs.",0.3987766126791636,The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier.,"CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client.",2025-02-16
CVS shares are up 45% this year — here's why it may be starting to turn its business around,https://www.cnbc.com/2025/02/13/cvs-health-may-be-on-track-to-turn-its-struggling-business-around-.html,2025-02-13T20:06:06+0000,"In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around. Some investors seem convinced, especially after the retail drugstore chain on Wednesday posted a big beat on fourth-quarter earnings and a 2025 profit outlook that was in line with expectations. Shares of CVS are now up more than 45% for the year, unlike the company's main retail pharmacy rival Walgreens, whose stock is up nearly 3%. Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.The upbeat quarterly results may be a sign that brighter days are ahead for the CVS – or at least that things may not be as bad as they were last year. The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due to higher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure.CVS isn't out of the woods yet. Medical costs were less severe during the fourth quarter but will likely remain elevated in 2025, as more seniors flock to hospitals and doctor's offices and use more health-care benefits. But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share. CVS has pursued store closures and other cost cuts, and its new CEO David Joyner has spent much of his first 100 days at the helm focusing on the company's insurance unit Aetna. ""The pieces are in place for [CVS to return] from what has been a bottoming of operations performance,"" said Leerink Partners analyst Michael Cherny, who upgraded the stock on Wednesday after the results. Cantor Fitzgerald analysts on Wednesday also upgraded CVS' stock, citing ""increased confidence in a successful turnaround."" CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision. The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year. In a research note, Cantor Fitzgerald analysts said they are ""incrementally more confident"" that CVS will improve margins in its Medicare Advantage business and return to ""normal levels"" by 2027. CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin. They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers. But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries. To improve margins, the company plans to shrink Medicare Advantage membership by a ""high single-digit percentage"" from the end of 2024, executives said on Wednesday. Aetna had 4.4 million Medicare Advantage members as of December, up from 3.5 million the year before, according to the company's fourth-quarter release.Overall, CVS executives said they expect to decrease insurance members by more than 1 million this year, including 800,000 in the individual market. Patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.Aetna also scored better Medicare Advantage star ratings for the 2025 payment year, which should boost its federal payments in 2026. Those crucial ratings help patients compare the quality of Medicare health and drug plans and determine how much an insurer receives in bonus payments from the Centers for Medicare & Medicaid Services.On the earnings call, Joyner said the company is pushing for higher payment rates from the government for Medicare Advantage. He said the proposed rates for 2026 don't account for higher medical costs over the last year. The Biden administration in January proposed to increase Medicare Advantage reimbursement rates by 2.2% in 2026, up from the 0.2% drop in rates for this year. But Cantor analysts also said they expect the Medicare Advantage reimbursement rate could rise, projecting a finalized increase of 2% to 2.8%.""We're assuming an improving rate environment … maintaining STARS ratings, and [medical] costs trends that do not exceed 2024 levels,"" the analysts wrote. It is difficult to predict what medical costs trends across the insurance industry will look like in 2025. But higher medical costs are baked into CVS's full-year guidance this time around. The outlook assumes that the trends the company saw in 2024 will carry over into this year despite more favorable medical costs for the company in the fourth quarter, said Tanquilut. ""The early reads for '25 or at least late '24 is that it's starting to get better. But they did not assume that improvement in the 2025 guidance,"" Tanquilut told CNBC. ""So it sounds like there's upside to their numbers for 2025. The company last year also said it would make significant changes to its Medicare Advantage plans for 2025, such as increasing copays and premiums and cutting back certain health benefits. That will eliminate the expenses tied to those benefits and drive away patients who need or want to use them.Other insurers such as Humana, the second largest Medicare Advantage insurer, are similarly culling their plan offerings for 2025 to reduce lower-profit membership. Humana is dropping a staggering 550,000 Medicare Advantage customers in less profitable markets. But the company has said that people who lose access to their existing plans will likely have another Humana Medicare Advantage plan option.Shares of CVS are outperforming most of its health-care rivals, both on the insurance and retail pharmacy sides. Jefferies analyst Brian Tanquilut said that is likely due to CVS' unique position as a company that owns a health insurer, a retail drugstore chain and a pharmacy benefit manager, or PBM, called Caremark.""I think what they're starting to show is the real synergy...in owning all three assets,"" Tanquilut said. PBMs such as Caremark sit at the center of the drug supply chain in the U.S., negotiating drug rebates with manufacturers on behalf of insurers, creating lists of preferred medications covered by health plans and reimbursing pharmacies for prescriptions. That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses.For example, Caremark in some cases directs drug prescriptions to CVS retail pharmacies. That has helped the company's drugstores gain meaningful prescription market share over its chief rival, Walgreens, which has been struggling to operate as a largely standalone pharmacy business, Tanquilut said. Other insurers, such as Cigna and UnitedHealth Group, also own PBMs. But the fact that CVS has a retail pharmacy ""just pulls it all together and differentiates it from the others,"" Tanquilut added. That doesn't necessarily mean that other insurers are underperforming. Tanquilut said UnitedHealthcare, the insurance arm of UnitedHealth Group, is still ""best in class"" in the industry. Other insurance companies have their own hurdles apart from higher medical costs, such as Humana seeing a drop in its Medicare Advantage star ratings for the year. But CVS' story has been much more complicated than other insurers given its business model, and the company could now be reaching a point where ""all three of its business segments are clicking,"" said Tanquilut.",CNBC,13/02/2025,"['In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around.', 'Some investors seem convinced, especially after the retail drugstore chain on Wednesday posted a big beat on fourth-quarter earnings and a 2025 profit outlook that was in line with expectations.', ""Shares of CVS are now up more than 45% for the year, unlike the company's main retail pharmacy rival Walgreens, whose stock is up nearly 3%."", 'Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.', 'The upbeat quarterly results may be a sign that brighter days are ahead for the CVS – or at least that things may not be as bad as they were last year.', ""The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due tohigher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure."", ""CVS isn't out of the woods yet."", ""Medical costswere less severe during the fourth quarter but will likely remain elevated in 2025, as more seniors flock to hospitals and doctor's offices and use more health-care benefits."", ""But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share."", ""CVS has pursued store closures and other cost cuts, and its new CEO David Joyner has spent much of his first 100 days at the helm focusing on the company's insurance unit Aetna."", '""The pieces are in place for [CVS to return] from what has been a bottoming of operations performance,"" said Leerink Partners analyst Michael Cherny, who upgraded the stock on Wednesday after the results.', 'Cantor Fitzgerald analysts on Wednesday also upgraded CVS\' stock, citing ""increased confidence in a successful turnaround.', '""CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision.', 'The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year.', 'In a research note, Cantor Fitzgerald analysts said they are ""incrementally more confident"" that CVS will improve margins in its Medicare Advantage business and return to ""normal levels"" by 2027.CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin.', 'They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday.', 'CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.', 'Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.', 'But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries.', 'To improve margins, the company plans to shrink Medicare Advantage membership by a ""high single-digit percentage"" from the end of 2024, executives said on Wednesday.', ""Aetna had 4.4 million Medicare Advantage members as of December, up from 3.5 million the year before, according to the company's fourth-quarter release."", 'Overall, CVS executives said they expect to decrease insurance members by more than 1 million this year, including 800,000 in the individual market.', 'Patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.', 'Aetna also scored better Medicare Advantage star ratings for the 2025 payment year, which should boost its federal payments in 2026.', 'Those crucial ratings help patients compare the quality of Medicare health and drug plans and determine how much an insurer receives in bonus payments from the Centers for Medicare & Medicaid Services.', 'On the earnings call, Joyner said the company is pushing for higher payment rates from the government for Medicare Advantage.', ""He said the proposed rates for 2026 don't account for higher medical costs over the last year."", 'The Biden administration in January proposed to increase Medicare Advantage reimbursement rates by 2.2% in 2026, up from the 0.2% drop in rates for this year.', 'But Cantor analysts also said they expect the Medicare Advantage reimbursement rate could rise, projecting a finalized increase of 2% to 2.8%.""We\'re assuming an improving rate environment … maintaining STARS ratings, and [medical] costs trends that do not exceed 2024 levels,"" the analysts wrote.', 'It is difficult to predict what medical costs trends across the insurance industry will look like in 2025.', ""But higher medical costs are baked into CVS's full-year guidance this time around."", 'The outlook assumes that the trends the company saw in 2024 will carry over into this year despite more favorable medical costs for the company in the fourth quarter, said Tanquilut.', '""The early reads for \'25 or at least late \'24 is that it\'s starting to get better.', 'But they did not assume that improvement in the 2025 guidance,"" Tanquilut told CNBC. ""', ""So it sounds like there's upside to their numbers for 2025.The company last year also said it would make significant changes to its Medicare Advantage plans for 2025, such as increasing copays and premiums and cutting back certain health benefits."", 'That will eliminate the expenses tied to those benefits and drive away patients who need or want to use them.', 'Other insurers such as Humana, the second largest Medicare Advantage insurer, are similarly culling their plan offerings for 2025 to reduce lower-profit membership.', 'Humana is dropping a staggering 550,000 Medicare Advantage customers in less profitable markets.', 'But the company has said that people who lose access to their existing plans will likely have another Humana Medicare Advantage plan option.', 'Shares of CVS are outperforming most of its health-care rivals, both on the insurance and retail pharmacy sides.', ""Jefferies analyst Brian Tanquilut said that is likely due to CVS' unique position as a company that owns a health insurer, a retail drugstore chain and a pharmacy benefit manager, or PBM, called Caremark."", '""I think what they\'re starting to show is the real synergy...in owning all three assets,"" Tanquilut said.', 'PBMs such as Caremark sit at the center of the drug supply chain in the U.S., negotiating drug rebates with manufacturers on behalf of insurers, creating lists of preferred medications covered by health plans and reimbursing pharmacies for prescriptions.', ""That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses."", 'For example, Caremark in some cases directs drug prescriptions to CVS retail pharmacies.', ""That has helped the company's drugstores gain meaningful prescription market share over its chief rival, Walgreens,which has been struggling to operate as a largely standalone pharmacy business, Tanquilut said."", 'Other insurers, such as Cigna and UnitedHealth Group, also own PBMs.', 'But the fact that CVS has a retail pharmacy ""just pulls it all together and differentiates it from the others,"" Tanquilut added.', ""That doesn't necessarily mean that other insurers are underperforming."", 'Tanquilut said UnitedHealthcare, the insurance arm of UnitedHealth Group, is still ""best in class"" in the industry.', 'Other insurance companies have their own hurdles apart from higher medical costs, such as Humana seeing a drop in its Medicare Advantage star ratings for the year.', 'But CVS\' story has been much more complicated than other insurers given its business model, and the company could now be reaching a point where ""all three of its business segments are clicking,"" said Tanquilut.']",0.3022095051445605,But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share.,"In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around.",0.460289873727938,"Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.","The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due tohigher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure.",2025-02-16
Bank of America CEO on inflation impact on U.S. economy: ‘Rates are going to stay where they are’,https://www.cnbc.com/2025/02/12/bank-of-america-ceo-brian-moynihan-inflation-federal-reserve-rates.html,2025-02-12T18:32:54+0000,"Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.The bank's retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan told CNBC's Leslie Picker. That rate is an acceleration from the spending growth seen in the final three months of last year, he noted.""That's driving price firmness, demand firmness,"" Moynihan said. ""You're seeing activity that says that we're probably in a period where rates are going to stay … where they are for a while until this settles in.""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations. The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.Last month, the Fed opted to keep its benchmark rate unchanged at a range of 4.25%-4.5%.""Rates are restrictive, but there was not enough sort of inflation progress that we made"" to cut rates, Moynihan said.Bank of America research analysts expect no rate reductions in the immediate future because of elevated inflation, he added.",CNBC,12/02/2025,"['Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.', ""The bank's retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan told CNBC's Leslie Picker."", 'That rate is an acceleration from the spending growth seen in the final three months of last year, he noted.', '""That\'s driving price firmness, demand firmness,"" Moynihan said. ""', ""You're seeing activity that says that we're probably in a period where rates are going to stay … where they are for a while until this settles in."", '""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations.', 'The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.', 'Last month, the Fed opted to keep its benchmark rate unchanged at a range of 4.25%-4.5%.""Rates are restrictive, but there was not enough sort of inflation progress that we made"" to cut rates, Moynihan said.', 'Bank of America research analysts expect no rate reductions in the immediate future because of elevated inflation, he added.']",0.0564610354219896,Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.,"The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.",0.9944062743868146,"""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations.",,2025-02-16
Coca-Cola says it will sell more soda in plastic bottles if aluminum tariffs take effect,https://www.cnbc.com/2025/02/11/coca-cola-discusses-trump-aluminum-tariffs.html,2025-02-11T17:15:31+0000,"In this articleCoca-Cola will shift more of its packaging from aluminum to plastic bottles if President Donald Trump implements his latest wave of tariffs, CEO James Quincey said Tuesday.""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said on the company's earnings conference call. ""For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,"" Quincey added.Trump on Monday raised tariffs on all aluminum and steel imports to 25% from 10%, starting next month. The action is widely seen as taking aim at China, although the U.S. imports little steel directly from the country.Quincey downplayed the financial hit for Coca-Cola from the tariffs, although he said on CNBC's ""Squawk on the Street"" that the company buys some aluminum from Canada.""I think we're in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,"" Quincey said on the conference call. ""It's not insignificant, but it's not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure,"" the CEO added.In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.Aluminum is generally more expensive than plastic, but it is also infinitely recyclable and one of the most commonly recycled materials. In recent years, the company has shifted to adding more aluminum packaging options, such as canned Dasani and Smartwater.PET, or polyethylene terephthalate, is a lightweight plastic that can be easily recycled but is recycled at a lower rate than aluminum. The recycling rate of PET bottles and jars was 29.1% in 2018, compared with the recycling rate of aluminum beer and soft drink cans at 50.4% in the same year, according to data from the Environmental Protection Agency.Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage.Just two months ago, Coca-Cola slashed its sustainability goals. The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030. The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.",CNBC,11/02/2025,"['In this articleCoca-Cola will shift more of its packaging from aluminum to plastic bottles if President Donald Trump implements his latest wave of tariffs, CEO James Quincey said Tuesday.', '""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said on the company\'s earnings conference call. ""', 'For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,""', 'Quincey added.', 'Trump on Monday raised tariffs on all aluminum and steel imports to 25% from 10%, starting next month.', 'The action is widely seen as taking aim at China, although the U.S. imports little steel directly from the country.', 'Quincey downplayed the financial hit for Coca-Cola from the tariffs, although he said on CNBC\'s ""Squawk on the Street"" that the company buys some aluminum from Canada.', '""I think we\'re in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,"" Quincey said on the conference call. ""', 'It\'s not insignificant, but it\'s not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure,"" the CEO added.', 'In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.', 'Aluminum is generally more expensive than plastic, but it is also infinitely recyclable and one of the most commonly recycled materials.', 'In recent years, the company has shifted to adding more aluminum packaging options, such as canned Dasani and Smartwater.', 'PET, or polyethylene terephthalate, is a lightweight plastic that can be easily recycled but is recycled at a lower rate than aluminum.', 'The recycling rate of PET bottles and jars was 29.1% in 2018, compared with the recycling rate of aluminum beer and soft drink cans at 50.4% in the same year, according to data from the Environmental Protection Agency.', ""Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage."", 'Just two months ago, Coca-Cola slashed its sustainability goals.', 'The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030.', 'The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.']",-0.0358323272255695,"The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.","Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage.",-0.2568704088528951,"In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.","The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030.",2025-02-16
CFPB’s new leadership begins staff purge with dozens of employees terminated,https://www.cnbc.com/2025/02/12/cfpb-staff-purge-begins-with-dozens-of-employees-terminated.html,2025-02-12T21:17:35+0000,"The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation.The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.The move comes amid a broader effort under President Donald Trump to trim federal staff. The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported. That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency. The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work. Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency's dismissal notice. ""It's almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce.""Hickman, who said she started in her CFPB role in June of 2023, said the agency's new leadership didn't follow established federal protocol for dismissing probationary employees. ""A lot of us are prepared to fight, and we are examining all our legal avenues,"" she said.The terminations have sowed more confusion at the bureau, as several of those being laid off had already accepted federal buyout offers, said one of the people.Some being dismissed received form letters that did not include their specific names and titles, but left some fields filled with generic placeholders, said this person.""Unfortunately, the Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not meet the Agency's current needs,"" the CFPB told some who were dismissed, according to people who received the notices.The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person. The agency had about 1,700 employees before the job cuts.The CFPB declined to comment.",CNBC,12/02/2025,"['The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation.', 'The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.', 'Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.', 'The move comes amid a broader effort under President Donald Trump to trim federal staff.', 'The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported.', 'That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.', ""CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency."", 'The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work.', 'Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency\'s dismissal notice. ""', ""It's almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce."", '""Hickman, who said she started in her CFPB role in June of 2023, said the agency\'s new leadership didn\'t follow established federal protocol for dismissing probationary employees. ""', 'A lot of us are prepared to fight, and we are examining all our legal avenues,"" she said.', 'The terminations have sowed more confusion at the bureau, as several of those being laid off had already accepted federal buyout offers, said one of the people.', 'Some being dismissed received form letters that did not include their specific names and titles, but left some fields filled with generic placeholders, said this person.', '""Unfortunately, the Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not meet the Agency\'s current needs,"" the CFPB toldsome who weredismissed, according topeoplewho received the notices.', ""The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person."", 'The agency had about 1,700 employees before the job cuts.', 'The CFPB declined to comment.']",-0.010750554288755,"CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency.","Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency's dismissal notice. """,-0.488809734582901,"The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person.",That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.,2025-02-16
Prebiotic soda brand Olipop valued at $1.85 billion in latest funding round,https://www.cnbc.com/2025/02/12/olipop-prebiotic-soda-valued-at-1point85-billion-in-funding-round.html,2025-02-13T16:07:58+0000,"Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday. Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.Olipop's Series C funding round was led by J.P. Morgan Private Capital's Growth Equity Partners. The company plans to use the money it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS. Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category. One in four Gen Z consumers drinks Olipop, according to the company.In early 2024, Olipop reached profitability, the company said. Its annual sales surpassed $400 million last year, doubling the year prior. In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data. Poppi's annual sales reportedly crossed $100 million in 2023. Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game.Poppi has also faced some backlash for its health claims. The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.",CNBC,13/02/2025,"['Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.', 'Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday.', 'Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.', ""Olipop's Series C funding round was led by J.P. Morgan Private Capital's Growth Equity Partners."", 'The company plans to use the money it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.', 'Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS.', 'Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category.', 'One in four Gen Z consumers drinks Olipop, according to the company.', 'In early 2024, Olipop reached profitability, the company said.', 'Its annual sales surpassed $400 million last year, doubling the year prior.', 'In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.', 'For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data.', ""Poppi's annual sales reportedly crossed $100 million in 2023."", 'Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game.', 'Poppi has also faced some backlash for its health claims.', ""The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.""]",0.2496519312747468,"Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.","The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.",0.6967675941331046,"Its annual sales surpassed $400 million last year, doubling the year prior.",Poppi has also faced some backlash for its health claims.,2025-02-16
"Roku shares surge as company halves quarterly losses, adds 4 million streaming households",https://www.cnbc.com/2025/02/14/roku-shares-surge-as-company-nearly-halves-quarterly-losses.html,2025-02-14T21:01:38+0000,"In this articleShares of Roku surged 14% Friday, notching a new 52-week high, on earnings that beat Wall Street expectations.In an interview on CNBC's ""Squawk Box,"" CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.Wood said the company added more than four million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin.""We're the No. 1 streaming operating system in the country and in most of the Americas by a wide margin,"" he said.Here's how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company boosted revenue by 22% to $1.2 billion. It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase. Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.""Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,"" Wood said.The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.",CNBC,14/02/2025,"['In this articleShares of Roku surged 14% Friday, notching a new 52-week high, on earnings that beat Wall Street expectations.', 'In an interview on CNBC\'s ""Squawk Box,"" CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.', 'Wood said the company added more than four million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.', ""The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin."", '""We\'re the No.', '1 streaming operating system in the country and in most of the Americas by a wide margin,"" he said.', ""Here's how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company boosted revenue by 22% to $1.2 billion."", 'It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.', 'Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase.', 'Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.', 'Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.', '""Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,"" Wood said.', 'The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.']",0.1704985061856122,"The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin.","""We're the No.",0.9994687363505363,"Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.",,2025-02-16
"Tequila, mezcal are the only spirits growing in sales, but tariffs would be 'catastrophic,' industry group says",https://www.cnbc.com/2025/02/11/tequila-mezcal-sales-are-growing-but-mexico-tariffs-may-hit-industry.html,2025-02-11T22:34:42+0000,"The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday.Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.That is the first time revenue for the spirits category has fallen in more than two decades. Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019. Between 2003 and 2019, the average annual growth rate was 4.4%.""While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,"" said DISCUS President and CEO Chris Swonger.Tequila and mezcal remained a bright spot for the year as the only spirits category showing sales growth, as revenue climbed 2.9% to $6.7 billion.Top five spirits categories by revenue in 2024:Premixed ready-to-drink cocktails grew double digits, but the category includes various types of mixed spirits including vodka, rum, whiskey and cordials.Mexican spirits and beer have grown more popular with consumers for over two decades, and tequila and mezcal sales outpaced American whiskey for the first time in 2023.The road ahead for the Mexico-based products remains uncertain. The Trump administration earlier this month delayed imposing tariffs on imports from Mexico — which would include distinctive products such as mezcal and tequila — by one month while tariff negotiations continue.""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. ""Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry,"" Hart added.Swonger also noted that tariffs would be a ""catastrophic blow"" to distillers and only add to the pressure higher interest rates have put on the industry's supply chain, as wholesalers and retailers continue to deplete inventory buildups and cautiously restock products.""Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,"" said Swonger. ""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.",CNBC,11/02/2025,"['The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday.', 'Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.', 'That is the first time revenue for the spirits category has fallen in more than two decades.', 'Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019.', 'Between 2003 and 2019, the average annual growth rate was 4.4%.""While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,"" said DISCUS President and CEO Chris Swonger.', 'Tequila and mezcal remained a bright spot for the year as the only spirits category showing sales growth, as revenue climbed 2.9% to $6.7 billion.', 'Top five spirits categories by revenue in 2024:Premixed ready-to-drink cocktails grew double digits, but the category includes various types of mixed spirits including vodka, rum, whiskey and cordials.', 'Mexican spirits and beer have grown more popular with consumers for over two decades, and tequila and mezcal sales outpaced American whiskey for the first time in 2023.The road ahead for the Mexico-based products remains uncertain.', 'The Trump administration earlier this month delayed imposing tariffs on imports from Mexico — which would include distinctive products such as mezcal and tequila — by one month while tariff negotiations continue.', '""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. ""', 'Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry,"" Hart added.', 'Swonger also noted that tariffs would be a ""catastrophic blow"" to distillers and only add to the pressure higher interest rates have put on the industry\'s supply chain, as wholesalers and retailers continue to deplete inventory buildups and cautiously restock products.', '""Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,"" said Swonger.', '""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.']",0.1879811171130622,"""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.","""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. """,-0.0776780385237473,"Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019.","Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.",2025-02-16
"As Trump eyes more tariffs, South Korea remains safe haven for GM and Hyundai",https://www.cnbc.com/2025/02/13/trump-tariffs-gm-hyundai-south-korean-imports.html,2025-02-15T21:01:45+0000,"DETROIT — As President Donald Trump threatens to further increase tariffs on U.S. trading partners, the greatest impact for the auto industry outside of North America would be additional levies on South Korea and Japan.The East Asian countries produced a combined 16.8% of vehicles sold last year in the U.S., including a record 8.6% from South Korea and 8.2% from Japan, according to data provided to CNBC by GlobalData.They were the largest vehicle importers to the U.S. outside of Mexico — and they have little to no duties compared with the 25% tariff Trump has threatened imposing on Canada and Mexico.Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea. The country overtook Japan and Canada last year to become the second-largest exporter of new cars to the U.S., based on sales.It trails only Mexico, which represented 16.2% of U.S. auto sales in 2024, GlobalData reports.""Obviously Hyundai has a massive amount of exposure. Behind it is GM … with relatively large volume models,"" said Jeff Schuster, global vice president of automotive research at GlobalData. ""There's a lot of risk potentially here, but it's limited, really limited, to those two players.""Imports from Japan are currently subject to a 2.5% tariff for automakers such as Toyota Motor, Nissan Motor and Honda Motor. Vehicles from Japan represented about 1.31 million autos sold last year in the U.S.Japan's percentage of sales has actually decreased in recent years, while South Korea's exports and sales have continued to rise from less than 845,000 in 2019 to more than 1.37 million in 2024.South Korea has 0% tariffs on cars despite Trump renegotiating a trade deal with the country during his first term in 2018. That accord was touted for improving vehicle imports to South Korea, but it did little to address vehicle exports to the U.S.The deal also has done little for increasing automotive exports to South Korea, according to data from the International Trade Commission. U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States. The companies importing the goods pay the tariffs, and some experts fear the companies would simply pass any additional costs on to consumers — raising the cost of vehicles and potentially reducing demand.South Korea-based Hyundai is the largest exporter of vehicles to the U.S., followed by GM and then Kia Corp., a part of Hyundai that largely operates separately in the U.S.GM has notably increased its imports from South Korea in recent years. Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.GM is the largest foreign direct investor in Korea's manufacturing industry, according to the automaker's website. It has invested 9 trillion South Korean won (roughly $6.2 billion) since establishing the operations in 2002.GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea. The company has touted the vehicles as being a pinnacle for the automaker's profitable growth in lower-margin, entry-level vehicles.""We're taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company's investor day in October. ""Trax and Envista have helped raise our share of the U.S. small SUV market to its highest level since 2007.""GM and Kia declined to comment when asked about potential tariffs on South Korea. Hyundai touted its operations and investments in the U.S., which the carmaker says have totaled $20.5 billion since entering the market in 1986, but did not directly comment on potential tariffs.""For nearly four decades, Hyundai has been a driver of American growth and innovation, contributing jobs, economic activity, and investments that have helped Americans prosper. We welcome the opportunity to work with the new administration to support American manufacturing, protect supply chains, and spur innovation,"" Hyundai said Thursday in an emailed statement.Terence Lau, dean of the College of Law at Syracuse University who previously worked as a trade expert for Ford Motor, said the automotive industry is built on free trade. If tariffs are implemented, the industry can adjust, but it takes time.""The car industry can adjust to anything. Really, it can. It's always going to make product that customers want to buy, because personal mobility and transportation is a human need all around the world,"" he said. ""What the car industry cannot do well is pivot on a dime.""Lau argued that a single-digit tariff can be a ""nuisance,"" but once they hit 10% or more, that's when additional costs can really began eating into the margin or products.Ford Motor CEO Jim Farley last week argued that if Trump is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries to even the playing field in North America.Farley singled out Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.""There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],"" Farley said during the company's fourth-quarter earnings call with investors. ""So if we're going to have a tariff policy ... it better be comprehensive for our industry.""We can't just cherry-pick one place or the other because this is a bonanza for our import competitors.""The White House did not respond for comment on potential tariffs on South Korea.Trump on Thursday signed a presidential memorandum laying out his plan to impose ""reciprocal tariffs"" on foreign nations, but did not go into detail regarding what countries could be targeted.As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports. But he also advocated for Congress to pass what he called the ""Trump Reciprocal Trade Act,"" which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.— CNBC's Kevin Breuninger contributed to this report.",CNBC,15/02/2025,"['DETROIT — As President Donald Trump threatens to further increase tariffs on U.S. trading partners, the greatest impact for the auto industry outside of North America would be additional levies on South Korea and Japan.', 'The East Asian countries produced a combined 16.8% of vehicles sold last year in the U.S., including a record 8.6% from South Korea and 8.2% from Japan, according to data provided to CNBC by GlobalData.', 'They were the largest vehicle importers to the U.S. outside of Mexico — and they have little to no duties compared with the 25% tariff Trump has threatened imposing on Canada and Mexico.', 'Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea.', 'The country overtook Japan and Canada last year to become the second-largest exporter of new cars to the U.S., based on sales.', 'It trails only Mexico, which represented 16.2% of U.S. auto sales in 2024, GlobalData reports.', '""Obviously Hyundai has a massive amount of exposure.', 'Behind it is GM … with relatively large volume models,"" said Jeff Schuster, global vice president of automotive research at GlobalData. ""', ""There's a lot of risk potentially here, but it's limited, really limited, to those two players."", '""Imports from Japan are currently subject to a 2.5% tariff for automakers such as Toyota Motor, Nissan Motor and Honda Motor.', ""Vehicles from Japan represented about 1.31 million autos sold last year in the U.S.Japan's percentage of sales has actually decreased in recent years, while South Korea's exports and sales have continued to rise from less than 845,000 in 2019 to more than 1.37 million in 2024.South Korea has 0% tariffs on cars despite Trump renegotiating a trade deal with the country during his first term in 2018."", 'That accord was touted for improving vehicle imports to South Korea, but it did little to address vehicle exports to the U.S.The deal also has done little for increasing automotive exports to South Korea, according to data from the International Trade Commission.', 'U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States.', 'The companies importing the goods pay the tariffs, and some experts fear the companies would simply pass any additional costs on to consumers — raising the cost of vehicles and potentially reducing demand.', 'South Korea-based Hyundai is the largest exporter of vehicles to the U.S., followed by GM and then Kia Corp., a part of Hyundai that largely operates separately in the U.S.GM has notably increased its imports from South Korea in recent years.', 'Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.', ""GM is the largest foreign direct investor in Korea's manufacturing industry, according to the automaker's website."", 'It has invested 9 trillion South Korean won (roughly $6.2 billion) since establishing the operations in 2002.GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea.', ""The company has touted the vehicles as being a pinnacle for the automaker's profitable growth in lower-margin, entry-level vehicles."", '""We\'re taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company\'s investor day in October. ""', 'Trax and Envista have helped raise our share of the U.S. small SUV market to its highest level since 2007.""GM and Kia declined to comment when asked about potential tariffs on South Korea.', 'Hyundai touted its operations and investments in the U.S., which the carmaker says have totaled $20.5 billion since entering the market in 1986, but did not directly comment on potential tariffs.', '""For nearly four decades, Hyundai has been a driver of American growth and innovation, contributing jobs, economic activity, and investments that have helped Americans prosper.', 'We welcome the opportunity to work with the new administration to support American manufacturing, protect supply chains, and spur innovation,"" Hyundai said Thursday in an emailed statement.', 'Terence Lau, dean of the College of Law at Syracuse University who previously worked as a trade expert for Ford Motor, said the automotive industry is built on free trade.', 'If tariffs are implemented, the industry can adjust, but it takes time.', '""The car industry can adjust to anything.', 'Really, it can.', 'It\'s always going to make product that customers want to buy, because personal mobility and transportation is a human need all around the world,"" he said. ""', 'What the car industry cannot do well is pivot on a dime.', '""Lau argued that a single-digit tariff can be a ""nuisance,"" but once they hit 10% or more, that\'s when additional costs can really began eating into the margin or products.', 'Ford Motor CEO Jim Farley last week argued that if Trump is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries to even the playing field in North America.', 'Farley singled out Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.', '""There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],"" Farley said during the company\'s fourth-quarter earnings call with investors. ""', ""So if we're going to have a tariff policy ... it better be comprehensive for our industry."", '""We can\'t just cherry-pick one place or the other because this is a bonanza for our import competitors.', '""The White House did not respond for comment on potential tariffs on South Korea.', 'Trump on Thursday signed a presidential memorandum laying out his plan to impose ""reciprocal tariffs"" on foreign nations, but did not go into detail regarding what countries could be targeted.', 'As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports.', 'But he also advocated for Congress to pass what he called the ""Trump Reciprocal Trade Act,"" which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.—', ""CNBC's Kevin Breuninger contributed to this report.""]",0.0928438907485276,"""We're taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company's investor day in October. ""","There's a lot of risk potentially here, but it's limited, really limited, to those two players.",0.3944496549665928,"Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.","U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States.",2025-02-16
CFPB heads of supervision and enforcement announce resignations after stop-work order,https://www.cnbc.com/2025/02/11/cfpb-leaders-announce-resignations-after-stop-work-order.html,2025-02-11T17:32:06+0000,"Two senior leaders at the Consumer Financial Protection Bureau announced their resignations the day after acting Director Russell Vought instructed all staff to cease working.In separate memos sent early Tuesday, Lorelei Salas, supervision director for the agency, and Eric Halperin, enforcement director, said they could no longer serve in their respective roles after Vought's mandate, according to emails obtained by CNBC.""The Bureau has been instructed to stand down,"" Salas said. ""I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.""""I don't believe in these conditions I can effectively serve in my role, which is protecting American consumers,"" Halperin said. ""Today I made the difficult decision to resign.""A representative for the Office of Management and Budget, speaking on behalf of the CFPB, said in a statement to CNBC later Tuesday that Halperin and Salas had been placed on administrative leave prior to their announcements of resignation.The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years. The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.CFPB employees have been on edge since operatives of Elon Musk's advisory group known as the Department of Government Efficiency arrived at the regulator late last week. Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.""I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,"" Salas wrote. ""The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.""",CNBC,11/02/2025,"['Two senior leaders at the Consumer Financial Protection Bureau announced their resignations the day after acting Director Russell Vought instructed all staff to cease working.', 'In separate memos sent early Tuesday, Lorelei Salas, supervision director for the agency, and Eric Halperin, enforcement director, said they could no longer serve in their respective roles after Vought\'s mandate, according to emails obtained by CNBC.""The Bureau has been instructed to stand down,"" Salas said. ""', 'I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.', '""""I don\'t believe in these conditions I can effectively serve in my role, which is protecting American consumers,"" Halperin said. ""', 'Today I made the difficult decision to resign.', '""A representative for the Office of Management and Budget, speaking on behalf of the CFPB, said in a statement to CNBC later Tuesday that Halperin and Salas had been placed on administrative leave prior to their announcements of resignation.', 'The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years.', 'The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.', ""CFPB employees have been on edge since operatives ofElon Musk's advisory group known as the Department of Government Efficiency arrived at the regulator late last week."", 'Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.', '""I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,"" Salas wrote. ""', 'The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.""']",-0.0320221907008197,"Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.","The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.",-0.3717827200889587,"The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.","The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years.",2025-02-16
Globalstar CEO Paul Jacobs explains why satellite company moved from NYSE to Nasdaq,https://www.cnbc.com/2025/02/11/globalstar-ceo-paul-jacobs-listing-nyse-nasdaq.html,2025-02-11T18:31:18+0000,"In this articleSatellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.""We did a reverse split — we're a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC's Becky Quick on ""Squawk Box."" ""And people thought of us as a penny stock, and some investors couldn't invest in us, so we're here sort of in conjunction with that,"" Jacobs added.Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning. The stock rose more than 10% in midday trading.""Most of the companies that I've been involved with are tech innovators, and they're on the Nasdaq,"" Jacobs said.Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services. In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar's next-generation low Earth orbit constellation.The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk's Starlink has also pursued in conjunction with T-Mobile.""We've already been working on the satellites,"" Jacobs said. ""We've been in it for a while already.""The pricing of the venture for customers remains an ""unproven business model,"" Jacobs added, as the companies continue to optimize customers' needs.Jacobs, who is also the vice chairman of the National Basketball Association's Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise.""The product is extremely good,"" Jacobs said. ""And we've opened it up to more investors as well — funds can invest now.""Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.""I think the NBA is in a good position,"" he said. ""You never know how it's going to go. I'm obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.",CNBC,11/02/2025,"['In this articleSatellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.', '""We did a reverse split — we\'re a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC\'s Becky Quick on ""Squawk Box."" ""', 'And people thought of us as a penny stock, and some investors couldn\'t invest in us, so we\'re here sort of in conjunction with that,"" Jacobs added.', 'Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning.', 'The stock rose more than 10% in midday trading.', '""Most of the companies that I\'ve been involved with are tech innovators, and they\'re on the Nasdaq,"" Jacobs said.', 'Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services.', 'In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.', ""The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar's next-generation low Earth orbit constellation."", ""The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk's Starlink has also pursued in conjunction with T-Mobile."", '""We\'ve already been working on the satellites,"" Jacobs said. ""', ""We've been in it for a while already."", '""The pricing of the venture for customers remains an ""unproven business model,"" Jacobs added, as the companies continue to optimize customers\' needs.', ""Jacobs, who is also the vice chairman of the National Basketball Association's Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise."", '""The product is extremely good,"" Jacobs said. ""', ""And we've opened it up to more investors as well — funds can invest now."", '""Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.', '""I think the NBA is in a good position,"" he said. ""', ""You never know how it's going to go."", 'I\'m obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.']",0.1002497276686861,"I'm obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.","In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.",0.7967718303203583,The stock rose more than 10% in midday trading.,"""We did a reverse split — we're a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC's Becky Quick on ""Squawk Box."" """,2025-02-16
How a CEO's exit and a Jeep 'comeback' led to Stellantis being the only automaker to advertise during Super Bowl 59,https://www.cnbc.com/2025/02/10/super-bowl-59-ad-stellantis-automaker.html,2025-02-10T21:22:47+0000,"DETROIT — A CEO's exit, electric vehicles making the industry run around like ""headless chickens"" and a company's U.S. revival all came together to make Ram and Jeep parent Stellantis the only automaker with a Super Bowl 59 commercial.That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl.Francois said Stellantis Chairman John Elkann, a scion of Italy's Fiat carmaker, called him after CEO Carlos Tavares' abrupt departure in December and told him to advertise during the big game as a recommitment to the automaker's business in the U.S.""We were not set to make a commercial. John Elkann called me in December, saying, you know, 'I want something. I want to make a comeback. We want to show, to express, that comeback story. We want to show America how much it is important to the Stellantis group,'"" Francois told CNBC.Stellantis, formerly known as Fiat Chrysler, has become well known under Francois for symbolic, nontraditional ads that feature iconic celebrities that tell a story beyond just attempting to sell new cars and trucks.It started when the automaker was attempting to make a comeback from its 2009 bankruptcy. It aired a surprise two-minute Super Bowl ad in 2011 featuring rapper Eminem and the city of Detroit — tying the company's revival to the Motor City's grit and rebirth. The ad also featured a now discontinued Chrysler sedan called the 200.Francois said Elkann, who's leading the search for a new CEO, told him to recapture that kind of ""comeback"" spirit for the automaker, following years of cost cutting and lackluster sales in the U.S.Elkann, Francois said, also told him to think of the late Fiat Chrysler CEO Sergio Marchionne when creating the automaker's ads this year. Marchionne, who died in 2018, was a supporter of Francois and past Super Bowl ads.""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose. He used to say, 'Mediocrity is not worth the trip,'"" Francois said. ""So this year's Super Bowl creative execution and investment are very much the essence of the spirit.""Since Eminem, the company's Super Bowl ads have featured actors such as Clint Eastwood, Bill Murray and singer Bob Dylan, among others. Those spots haven't necessarily prominently featured any specific vehicle, but they've discussed culturally relevant topics such as political divides and patriotism.Stellantis' Ram Trucks ad this year was a more traditional, comedic Super Bowl commercial. It starred ""Twisters"" and ""Top Gun: Maverick"" actor Glen Powell reimagining ""Goldilocks and the Three Bears"" with trucks.But the automaker's two-minute Jeep ad starring featuring ""Star Wars"" and ""Indiana Jones"" actor Harrison Ford was a true return to form for Francois.Francois said Ford turned down an initial pitch for a different ad. That's when Francois said he and friend Edward Razek, a former marketing executive for Victoria's Secret owner L Brands who resigned amid controversy in 2019, wrote the first version of the ad that aired.CMOs don't typically write scripts. It's more common for those executives to approve a script from an agency, with guidance. Francois said agencies did assist ahead of the final ad, but the script and ideas started inside the automaker.In the ad, Ford discusses freedom, heroes and people writing their own stories in life because there is no ""Owner's Manual,"" which is the title of the commercial.As Ford opined, several Jeep models can be seen driving and off-roading, including one that passes a Ford Bronco SUV — a newer competitor to the Jeep Wrangler SUV — while the actor talks about inspiring others.""I said 'yes' to doing this commercial because of the script. It's a very straightforward communication about life and ends with getting in a Jeep vehicle, that's the hook. It didn't require me to reintroduce myself, point to the fact that in my life I've been many things and known for specific projects or roles,"" Ford said in a statement. ""It's just a quiet talk from somebody sharing an idea. I love the way it developed.""The Wrangler passing the Bronco is one of two references to the Jeep rival. The other comes from the actor at the end of the ad: ""Choose what makes you happy. My friends, my family, my work make me happy. This Jeep makes me happy — even though my name is Ford. That's my owner's manual. Get out there, write your own.""The Jeep ad was shot over two days with Ford in Santa Clarita, California, in early December, according to Stellantis. Automotive has historically been one of the top segments for Super Bowl advertising. Even during the Great Recession in 2008 and 2009 when the industry was hit hard, several companies such as Toyota Motor, Hyundai Motor and Audi aired ads.Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale.""In the last years, there was plenty of automakers, all of them [touting] EVs, EVs that didn't even exist,"" Francois said. ""These guys are obviously running like headless chickens: EVs, EVs, EVs. I mean, that's where we all were.""Automakers regularly advertised during the NFL regular season and playoffs, including with sponsorships such as Toyota being the ""Official Automotive Partner of the NFL."" But none, other than Stellantis, advertised during Sunday's game.Both of Stellantis' Super Bowl ads this year featured electric vehicles, but they also included traditional vehicles with internal combustion engines as well as plug-in hybrid models such as the Jeep Wrangler.Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.""The moment had changed, and I was lucky enough to have the possibility to rewrite the scripts. To rewrite history, to say, to not run like a headless chicken,"" Francois said. ""I was able to improvise in the moment.""Stellantis declined to disclose how much money it spent on the production or broadcast of the ads, which were selling for up to $8 million for 30 seconds of air time during Super Bowl 59.But Francois said Elkann has told advertising and marketing leaders at Stellantis that ""Marketing is no longer a cost. It is an investment.""Correction: Jeep's Super Bowl ad was filmed in Santa Clarita, California. An earlier version of this article incorrectly identified the city.",CNBC,10/02/2025,"['DETROIT — A CEO\'s exit, electric vehicles making the industry run around like ""headless chickens"" and a company\'s U.S. revival all came together to make Ram and Jeep parent Stellantis the only automaker with a Super Bowl 59 commercial.', ""That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl."", 'Francois said Stellantis Chairman John Elkann, a scion of Italy\'s Fiat carmaker, called him after CEO Carlos Tavares\' abrupt departure in December and told him to advertise during the big game as a recommitment to the automaker\'s business in the U.S.""We were not set to make a commercial.', ""John Elkann called me in December, saying, you know, 'I want something."", 'I want to make a comeback.', 'We want to show, to express, that comeback story.', 'We want to show America how much it is important to the Stellantis group,\'"" Francois told CNBC.Stellantis, formerly known as Fiat Chrysler, has become well known under Francois for symbolic, nontraditional ads that feature iconic celebrities that tell a story beyond just attempting to sell new cars and trucks.', 'It started when the automaker was attempting to make a comeback from its 2009 bankruptcy.', ""It aired a surprise two-minute Super Bowl ad in 2011 featuring rapper Eminem and the city of Detroit — tying the company's revival to the Motor City's grit and rebirth."", 'The ad also featured a now discontinued Chrysler sedan called the 200.Francois said Elkann, who\'s leading the search for a new CEO, told him to recapture that kind of ""comeback"" spirit for the automaker, following years of cost cutting and lackluster sales in the U.S.Elkann, Francois said, also told him to think of the late Fiat Chrysler CEO Sergio Marchionne when creating the automaker\'s ads this year.', 'Marchionne, who died in 2018, was a supporter of Francois and past Super Bowl ads.', '""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose.', 'He used to say, \'Mediocrity is not worth the trip,\'"" Francois said. ""', ""So this year's Super Bowl creative execution and investment are very much the essence of the spirit."", '""Since Eminem, the company\'s Super Bowl ads have featured actors such as Clint Eastwood, Bill Murray and singer Bob Dylan, among others.', ""Those spots haven't necessarily prominently featured any specific vehicle, but they've discussed culturally relevant topics such as political divides and patriotism."", ""Stellantis' Ram Trucks ad this year was a more traditional, comedic Super Bowl commercial."", 'It starred ""Twisters"" and ""Top Gun: Maverick"" actor Glen Powell reimagining ""Goldilocks and the Three Bears"" with trucks.', 'But the automaker\'s two-minute Jeep ad starring featuring ""Star Wars"" and ""Indiana Jones"" actor Harrison Ford was a true return to form for Francois.', 'Francois said Ford turned down an initial pitch for a different ad.', ""That's when Francois said he and friend Edward Razek, a former marketing executive for Victoria's Secret owner L Brands who resigned amid controversy in 2019, wrote the first version of the ad that aired."", ""CMOs don't typically write scripts."", ""It's more common for those executives to approve a script from an agency, with guidance."", 'Francois said agencies did assist ahead of the final ad, but the script and ideas started inside the automaker.', 'In the ad, Ford discusses freedom, heroes and people writing their own stories in life because there is no ""Owner\'s Manual,"" which is the title of the commercial.', 'As Ford opined, several Jeep models can be seen driving and off-roading, including one that passes a Ford Bronco SUV — a newer competitor to the Jeep Wrangler SUV — while the actor talks about inspiring others.', '""I said \'yes\' to doing this commercial because of the script.', ""It's a very straightforward communication about life and ends with getting in a Jeep vehicle, that's the hook."", 'It didn\'t require me to reintroduce myself, point to the fact that in my life I\'ve been many things and known for specific projects or roles,"" Ford said in a statement. ""', ""It's just a quiet talk from somebody sharing an idea."", 'I love the way it developed.', '""The Wrangler passing the Bronco is one of two references to the Jeep rival.', 'The other comes from the actor at the end of the ad: ""Choose what makes you happy.', 'My friends, my family, my work make me happy.', 'This Jeep makes me happy — even though my name is Ford.', ""That's my owner's manual."", 'Get out there, write your own.', '""The Jeep ad was shot over two days with Ford in Santa Clarita, California, in early December, according to Stellantis.', 'Automotive has historically been one of the top segments for Super Bowl advertising.', 'Even during the Great Recession in 2008 and 2009 when the industry was hit hard, several companies such as Toyota Motor, Hyundai Motor and Audi aired ads.', ""Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale."", '""In the last years, there was plenty of automakers, all of them [touting] EVs, EVs that didn\'t even exist,"" Francois said. ""', 'These guys are obviously running like headless chickens: EVs, EVs, EVs.', ""I mean, that's where we all were."", '""Automakers regularly advertised during the NFL regular season and playoffs, including with sponsorships such as Toyota being the ""Official Automotive Partner of the NFL.""', ""But none, other than Stellantis, advertised during Sunday's game."", ""Both of Stellantis' Super Bowl ads this year featured electric vehicles, but they also included traditional vehicles with internal combustion engines as well as plug-in hybrid models such as the Jeep Wrangler."", 'Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.', '""The moment had changed, and I was lucky enough to have the possibility to rewrite the scripts.', 'To rewrite history, to say, to not run like a headless chicken,"" Francois said. ""', 'I was able to improvise in the moment.', '""Stellantis declined to disclose how much money it spent on the production or broadcast of the ads, which were selling for up to $8 million for 30 seconds of air time during Super Bowl 59.But Francois said Elkann has told advertising and marketing leaders at Stellantis that ""Marketing is no longer a cost.', 'It is an investment.', '""Correction: Jeep\'s Super Bowl ad was filmed in Santa Clarita, California.', 'An earlier version of this article incorrectly identified the city.']",0.2528008222416097,"""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose.","That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl.",0.4386920588357108,"Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.","Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale.",2025-02-16
"Restaurant Brands reports 2.5% same-store sales growth, fueled by Burger King and Popeyes",https://www.cnbc.com/2025/02/12/restaurant-brands-international-qsr-q4-2024-earnings.html,2025-02-12T15:39:49+0000,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.Shares of the company were roughly flat in morning trading.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier.Excluding corporate restructuring fees and other items, Restaurant Brands earned 81 cents per share.Net sales climbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year.Still, the company saw better-than-expected sales across all of its segments during the quarter.""If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,"" Restaurant Brands CEO Josh Kobza told CNBC.In the fourth quarter, McDonald's U.S. same-store sales fell 1.4%, hurt by an E. coli outbreak linked to its Quarter Pounder burgers. And Popeyes' rival KFC, which is owned by Yum Brands, reported same-store sales declines of 5% for its U.S. restaurants.Burger King, meanwhile, posted U.S. same-store sales growth of 1.5%, beating StreetAccount estimates of 0.8%.Burger King U.S. President Tom Curtis credited its Addams Family menu, timed for Halloween, and its Million Dollar Whopper promotion, which sold 1 million Whopper burgers for just $1. While the burger chain has been in turnaround mode for more than two years, its quarterly results have shown signs that the strategy has won back customers.This year, Restaurant Brands also plans to start selling off some of the restaurants it acquired through its purchase of Carrols Restaurant Group. The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines.""I think we got some really compelling value offerings into the market in [the fourth quarter], and that helped our performance, both on sales and traffic,"" Kobza said.Tim Hortons reported domestic same-store sales growth of 2.5%. The Canadian coffee chain accounts for more than 40% of Restaurant Brands' quarterly revenue.In particular, Tims saw morning sales accelerate, thanks to stronger demand for its breakfast sandwiches and wraps. Unusually warm temperatures in the fourth quarter also led to 6% growth in cold drinks, driving sales of its Iced Capps and cold brew beverages.In 2025, Restaurant Brands expects Tims to return to net unit growth, driven in part by expansion in underpenetrated rural areas and western Canada.Restaurant Brands' international restaurants saw same-store sales growth of 4.7%, beating StreetAccount estimates of 2.7%. The company credited its Burger King and Popeyes locations for fueling higher sales.The company also increased its footprint by 3.4%, adding 1,055 new restaurants from the same period a year ago.Looking to 2025, Restaurant Brands plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives.",CNBC,12/02/2025,"[""In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants."", 'Shares of the company were roughly flat in morning trading.', ""Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier."", 'Excluding corporate restructuring fees and other items, Restaurant Brands earned 81 cents per share.', 'Net salesclimbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year.', 'Still, the company saw better-than-expected sales across all of its segments during the quarter.', '""If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,"" Restaurant Brands CEO Josh Kobza told CNBC.In the fourth quarter, McDonald\'s U.S. same-store sales fell 1.4%, hurt by an E. coli outbreak linked to its Quarter Pounder burgers.', ""And Popeyes' rival KFC, which is owned by Yum Brands, reported same-store sales declines of 5% for its U.S. restaurants."", 'Burger King, meanwhile, posted U.S. same-store sales growth of 1.5%, beating StreetAccount estimates of 0.8%.Burger King U.S. President Tom Curtis credited its Addams Family menu, timed for Halloween, and its Million Dollar Whopper promotion, which sold 1 million Whopper burgers for just $1.', 'While the burger chain has been in turnaround mode for more than two years, its quarterly results have shown signs that the strategy has won back customers.', 'This year, Restaurant Brands also plans to start selling off some of the restaurants it acquired through its purchase of Carrols Restaurant Group.', ""The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines."", '""I think we got some really compelling value offerings into the market in [the fourth quarter], and that helped our performance, both on sales and traffic,"" Kobza said.', 'Tim Hortons reported domestic same-store sales growth of 2.5%.', ""The Canadian coffee chain accounts for more than 40% of Restaurant Brands' quarterly revenue."", 'In particular, Tims saw morning sales accelerate, thanks to stronger demand for its breakfast sandwiches and wraps.', 'Unusually warm temperatures in the fourth quarter also led to 6% growth in cold drinks, driving sales of its Iced Capps and cold brew beverages.', 'In 2025, Restaurant Brands expects Tims to return to net unit growth, driven in part by expansion in underpenetrated rural areas and western Canada.', ""Restaurant Brands' international restaurants saw same-store sales growth of 4.7%, beating StreetAccount estimates of 2.7%."", 'The company credited its Burger King and Popeyes locations for fueling higher sales.', 'The company also increased its footprint by 3.4%, adding 1,055 new restaurants from the same period a year ago.', 'Looking to 2025, Restaurant Brands plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives.']",0.284929572244848,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.","The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines.",0.6721012459860908,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.","Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier.",2025-02-15
Globalstar CEO Paul Jacobs explains why satellite company moved from NYSE to Nasdaq,https://www.cnbc.com/2025/02/11/globalstar-ceo-paul-jacobs-listing-nyse-nasdaq.html,2025-02-11T18:31:18+0000,"In this articleSatellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.""We did a reverse split — we're a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC's Becky Quick on ""Squawk Box."" ""And people thought of us as a penny stock, and some investors couldn't invest in us, so we're here sort of in conjunction with that,"" Jacobs added.Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning. The stock rose more than 10% in midday trading.""Most of the companies that I've been involved with are tech innovators, and they're on the Nasdaq,"" Jacobs said.Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services. In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar's next-generation low Earth orbit constellation.The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk's Starlink has also pursued in conjunction with T-Mobile.""We've already been working on the satellites,"" Jacobs said. ""We've been in it for a while already.""The pricing of the venture for customers remains an ""unproven business model,"" Jacobs added, as the companies continue to optimize customers' needs.Jacobs, who is also the vice chairman of the National Basketball Association's Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise.""The product is extremely good,"" Jacobs said. ""And we've opened it up to more investors as well — funds can invest now.""Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.""I think the NBA is in a good position,"" he said. ""You never know how it's going to go. I'm obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.",CNBC,11/02/2025,"['In this articleSatellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.', '""We did a reverse split — we\'re a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC\'s Becky Quick on ""Squawk Box."" ""', 'And people thought of us as a penny stock, and some investors couldn\'t invest in us, so we\'re here sort of in conjunction with that,"" Jacobs added.', 'Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning.', 'The stock rose more than 10% in midday trading.', '""Most of the companies that I\'ve been involved with are tech innovators, and they\'re on the Nasdaq,"" Jacobs said.', 'Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services.', 'In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.', ""The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar's next-generation low Earth orbit constellation."", ""The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk's Starlink has also pursued in conjunction with T-Mobile."", '""We\'ve already been working on the satellites,"" Jacobs said. ""', ""We've been in it for a while already."", '""The pricing of the venture for customers remains an ""unproven business model,"" Jacobs added, as the companies continue to optimize customers\' needs.', ""Jacobs, who is also the vice chairman of the National Basketball Association's Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise."", '""The product is extremely good,"" Jacobs said. ""', ""And we've opened it up to more investors as well — funds can invest now."", '""Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.', '""I think the NBA is in a good position,"" he said. ""', ""You never know how it's going to go."", 'I\'m obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.']",0.1002497276686861,"I'm obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.","In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.",0.7967718303203583,The stock rose more than 10% in midday trading.,"""We did a reverse split — we're a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC's Becky Quick on ""Squawk Box."" """,2025-02-15
CFPB heads of supervision and enforcement announce resignations after stop-work order,https://www.cnbc.com/2025/02/11/cfpb-leaders-announce-resignations-after-stop-work-order.html,2025-02-11T17:32:06+0000,"Two senior leaders at the Consumer Financial Protection Bureau announced their resignations the day after acting Director Russell Vought instructed all staff to cease working.In separate memos sent early Tuesday, Lorelei Salas, supervision director for the agency, and Eric Halperin, enforcement director, said they could no longer serve in their respective roles after Vought's mandate, according to emails obtained by CNBC.""The Bureau has been instructed to stand down,"" Salas said. ""I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.""""I don't believe in these conditions I can effectively serve in my role, which is protecting American consumers,"" Halperin said. ""Today I made the difficult decision to resign.""A representative for the Office of Management and Budget, speaking on behalf of the CFPB, said in a statement to CNBC later Tuesday that Halperin and Salas had been placed on administrative leave prior to their announcements of resignation.The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years. The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.CFPB employees have been on edge since operatives of Elon Musk's advisory group known as the Department of Government Efficiency arrived at the regulator late last week. Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.""I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,"" Salas wrote. ""The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.""",CNBC,11/02/2025,"['Two senior leaders at the Consumer Financial Protection Bureau announced their resignations the day after acting Director Russell Vought instructed all staff to cease working.', 'In separate memos sent early Tuesday, Lorelei Salas, supervision director for the agency, and Eric Halperin, enforcement director, said they could no longer serve in their respective roles after Vought\'s mandate, according to emails obtained by CNBC.""The Bureau has been instructed to stand down,"" Salas said. ""', 'I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.', '""""I don\'t believe in these conditions I can effectively serve in my role, which is protecting American consumers,"" Halperin said. ""', 'Today I made the difficult decision to resign.', '""A representative for the Office of Management and Budget, speaking on behalf of the CFPB, said in a statement to CNBC later Tuesday that Halperin and Salas had been placed on administrative leave prior to their announcements of resignation.', 'The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years.', 'The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.', ""CFPB employees have been on edge since operatives ofElon Musk's advisory group known as the Department of Government Efficiency arrived at the regulator late last week."", 'Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.', '""I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,"" Salas wrote. ""', 'The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.""']",-0.0320221907008197,"Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.","The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.",-0.3717827200889587,"The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.","The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years.",2025-02-15
"GM expects to mitigate up to 50% of potential North American tariffs, which Ford describes as 'chaos'",https://www.cnbc.com/2025/02/11/ford-ceo-says-trumps-tariffs-are-causing-chaos-in-auto-industry.html,2025-02-12T12:19:23+0000,"In this articleDETROIT — General Motors believes it can mitigate up to 50% of potential tariffs President Donald Trump is threatening to impose on imports from Canada and Mexico, CEO Mary Barra said Tuesday.The chief executive said the Detroit automaker has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the U.S. from the two neighboring countries. That includes potentially avoiding short-term impacts of between 30% and 50% of the additional costs ""without deploying any capital.""""We are prepared,"" Barra said Tuesday during a Wolfe Research investment conference. ""When we know exactly what's going to happen and/or even have an indication of what's going to happen, we know the steps we could take.""GM CFO Paul Jacobson, who appeared with Barra, added that if tariffs were prolonged, the company could take additional measures such as shifting production or parts or vehicles.The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico. That includes many of its lower-priced electric vehicles as well as its highly profitable full-size pickup trucks.Barra's comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump's tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.Farley described this week's 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding ""a lot of cost, and a lot of chaos"" to the industry.""President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""So far what we're seeing is a lot of cost, and a lot of chaos.""Farley and incoming Ford CFO Sherry House said a majority of the company's steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.Barra noted GM is ""evaluating"" the impact of the steel and aluminum tariffs on its business, but said the company sources a ""significant"" amount of both from the U.S. In the short term, she said GM also has fixed pricing on such purchases.Both GM and Ford contributed $1 million each, along with vehicles, to Trump's inauguration. Executives with both also have confirmed they've talked with Trump about the auto industry.House on Tuesday said the biggest concern for Ford is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker's business.""We'll have to deal with it. That's what I'm talking about cost of chaos. A little here, a little there. … This is what we're dealing with right now,"" Farley said.Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying a long-term 25% tariff that could go into effect as soon as March 1 would be ""devastating"" and ""blow a hole in the U.S. industry that we've never seen.""Ford has previously said it believes short-term tariffs are manageable. House on Tuesday said the automaker is ""not making a lot of large decisions at this point, as it awaits the potential impacts.The White House did not immediately respond for comment about Farley's remarks.Farley said he is traveling Wednesday to Washington, D.C., for the second time in three weeks to meet with government officials, including members of Congress, to stress how the policy uncertainty is impacting the industry.Last week Farley also said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries.Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively, that have little to no duties compared with the 25% tariff Trump plans to impose on Canada and Mexico.Ford regularly touts its American business, including in ad campaigns. The company is the No. 1 auto producer in the U.S., with the most vehicles domestically assembled as well as exported to other countries.Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada. An earlier version misstated one of the countries.",CNBC,12/02/2025,"['In this articleDETROIT — General Motors believes it can mitigate up to 50% of potential tariffs President Donald Trump is threatening to impose on imports from Canada and Mexico, CEO Mary Barra said Tuesday.', 'The chief executive said the Detroit automaker has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the U.S. from the two neighboring countries.', 'That includes potentially avoiding short-term impacts of between 30% and 50% of the additional costs ""without deploying any capital.', '""""We are prepared,"" Barra said Tuesday during a Wolfe Research investment conference. ""', ""When we know exactly what's going to happen and/or even have an indication of what's going to happen, we know the steps we could take."", '""GM CFO Paul Jacobson, who appeared with Barra, added that if tariffs were prolonged, the company could take additional measures such as shifting production or parts or vehicles.', ""The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico."", 'That includes many of its lower-priced electric vehicles as well as its highly profitable full-size pickup trucks.', 'Barra\'s comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump\'s tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.', 'Farley described this week\'s 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding ""a lot of cost, and a lot of chaos"" to the industry.', '""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""', ""So far what we're seeing is a lot of cost, and a lot of chaos."", '""Farley and incoming Ford CFO Sherry House said a majority of the company\'s steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.', 'Barra noted GM is ""evaluating"" the impact of the steel and aluminum tariffs on its business, but said the company sources a ""significant"" amount of both from the U.S. In the short term, she said GM also has fixed pricing on such purchases.', ""Both GM and Ford contributed $1 million each, along with vehicles, to Trump's inauguration."", ""Executives with both also have confirmed they've talked with Trump about the auto industry."", ""House on Tuesday said the biggest concern for Ford is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker's business."", '""We\'ll have to deal with it.', ""That's what I'm talking about cost of chaos."", 'A little here, a little there. …', 'This is what we\'re dealing with right now,"" Farley said.', 'Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying a long-term 25% tariff that could go into effect as soon as March 1 would be ""devastating"" and ""blow a hole in the U.S. industry that we\'ve never seen.', '""Ford has previously said it believes short-term tariffs aremanageable.', 'House on Tuesday said the automaker is ""not making a lot of large decisions at this point, as it awaits the potential impacts.', ""The White House did not immediately respond for comment about Farley's remarks."", 'Farley said he is traveling Wednesday to Washington, D.C., for the second time in three weeks to meet with government officials, including members of Congress, to stress how the policy uncertainty is impacting the industry.', 'Last week Farley also said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries.', 'Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan andSouth Korea, respectively, that have little to no duties compared with the 25% tariff Trumpplans to impose on Canada and Mexico.', 'Ford regularly touts its American business, including in ad campaigns.', 'The company is the No.', '1 auto producer in the U.S., with the most vehicles domestically assembled as well as exported to other countries.', 'Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada.', 'An earlier version misstated one of the countries.']",-0.0759660477189732,"""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""","Barra's comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump's tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.",-0.3969160795211792,"""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""","The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico.",2025-02-15
Bank of America CEO on inflation impact on U.S. economy: ‘Rates are going to stay where they are’,https://www.cnbc.com/2025/02/12/bank-of-america-ceo-brian-moynihan-inflation-federal-reserve-rates.html,2025-02-12T18:32:54+0000,"Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.The bank's retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan told CNBC's Leslie Picker. That rate is an acceleration from the spending growth seen in the final three months of last year, he noted.""That's driving price firmness, demand firmness,"" Moynihan said. ""You're seeing activity that says that we're probably in a period where rates are going to stay … where they are for a while until this settles in.""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations. The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.Last month, the Fed opted to keep its benchmark rate unchanged at a range of 4.25%-4.5%.""Rates are restrictive, but there was not enough sort of inflation progress that we made"" to cut rates, Moynihan said.Bank of America research analysts expect no rate reductions in the immediate future because of elevated inflation, he added.",CNBC,12/02/2025,"['Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.', ""The bank's retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan told CNBC's Leslie Picker."", 'That rate is an acceleration from the spending growth seen in the final three months of last year, he noted.', '""That\'s driving price firmness, demand firmness,"" Moynihan said. ""', ""You're seeing activity that says that we're probably in a period where rates are going to stay … where they are for a while until this settles in."", '""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations.', 'The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.', 'Last month, the Fed opted to keep its benchmark rate unchanged at a range of 4.25%-4.5%.""Rates are restrictive, but there was not enough sort of inflation progress that we made"" to cut rates, Moynihan said.', 'Bank of America research analysts expect no rate reductions in the immediate future because of elevated inflation, he added.']",0.0564610354219896,Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.,"The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.",0.9944062743868146,"""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations.",,2025-02-15
"Biogen beats estimates on cost cuts and new drugs like Leqembi, but profit outlook falls short",https://www.cnbc.com/2025/02/12/biogen-biib-earnings-q4-2024.html,2025-02-12T16:20:04+0000,"In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth. But the biotech company's guidance for the current year missed Wall Street's expectations. Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell short of the $16.34 per share that analysts were anticipating, according to LSEG. That reflects a foreign exchange headwind of 35 cents per share, Biogen said.  Biogen expects revenue to decline by a ""mid-single digit"" percentage in 2025 compared with 2024, as sales of its multiple sclerosis products fall. That portion of the business has declined for several quarters as some of those therapies face generic competition. But Biogen expects Leqembi, along with its new rare disease and depression treatments, to help offset that sliding revenue this year. Leqembi generated $87 million in revenue for the fourth quarter, including $50 million in the U.S. Analysts had expected the drug to book $67 million in sales, according to estimates from StreetAccount. Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023. The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, the need for regular brain scans and the difficulty of finding neurologists, among other issues. Here's what Biogen reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Biogen booked sales of $2.46 billion for the quarter, which is up around 3% from the year-earlier period. The drugmaker posted net income of $266.8 million, or $1.83 per share, for the quarter. That compares with net income of $249.7 million, or $1.71 per share, for the same period a year ago. Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $3.44 per share.Biogen first initiated a cost-cutting program in 2023. The company expects to generate $1 billion in gross savings, or $800 million net savings, by the end of 2025. Also on Wednesday, Royalty Pharma announced an agreement to provide $250 million in research and development funding to Biogen for litifilimab, a key drug in its pipeline that is being studied to treat lupus. Royalty Pharma, a leading funder of the biotech and pharmaceutical industry, will be eligible for regulatory milestones and certain royalties.Another new drug, Skyclarys, booked $102 million in sales for the fourth quarter, almost double what it reported in the year-earlier period.Analysts had expected sales of around $112 million for the quarter, according to StreetAccount. Skyclarys came from Biogen's acquisition of Reata Pharmaceuticals in July 2023. The Food and Drug Administration greenlit Skyclarys in 2023, making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5. Zurzuvae, the first pill for postpartum depression, generated fourth-quarter sales of $22.9 million. Analysts had expected it to post $26 million in sales, StreetAccount estimates said.Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion.Correction: Biogen's fourth-quarter sales from multiple sclerosis treatments fell to $1.07 billion. An earlier version misstated the period.",CNBC,12/02/2025,"[""In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth."", ""But the biotech company's guidance for the current year missed Wall Street's expectations."", 'Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell short of the $16.34 per share that analysts were anticipating, according to LSEG.', 'That reflects a foreign exchange headwind of 35 cents per share, Biogen said.', 'Biogen expects revenue to decline by a ""mid-single digit"" percentage in 2025 compared with 2024, as sales of its multiple sclerosis products fall.', 'That portion of the business has declined for several quarters as some of those therapies face generic competition.', 'But Biogen expects Leqembi, along with its new rare disease and depression treatments, to help offset that sliding revenue this year.', 'Leqembi generated $87 million in revenue for the fourth quarter, including $50 million in the U.S. Analysts had expected the drug to book $67 million in sales, according to estimates from StreetAccount.', ""Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023."", ""The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, the need for regular brain scans and the difficulty of finding neurologists, among other issues."", ""Here's what Biogen reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Biogen booked sales of $2.46 billion for the quarter, which is up around 3% from the year-earlier period."", 'The drugmaker posted net income of $266.8 million, or $1.83 per share, for the quarter.', 'That compares with net income of $249.7 million, or $1.71 per share, for the same period a year ago.', 'Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $3.44 per share.', 'Biogen first initiated a cost-cutting program in 2023.', 'The company expects to generate $1 billion in gross savings, or $800 million net savings, by the end of 2025.Also on Wednesday, Royalty Pharma announced an agreement to provide $250 million in research and development funding to Biogen for litifilimab, a key drug in its pipeline that is being studied to treat lupus.', 'Royalty Pharma, a leading funder of the biotech and pharmaceutical industry, will be eligible for regulatory milestones and certain royalties.', 'Another new drug, Skyclarys, booked $102 million in sales for the fourth quarter, almost double what it reported in the year-earlier period.', 'Analysts had expected sales of around $112 million for the quarter, according to StreetAccount.', ""Skyclarys came from Biogen's acquisition of Reata Pharmaceuticals in July 2023."", ""The Food and Drug Administration greenlit Skyclarys in 2023,making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5.Zurzuvae, the first pill for postpartum depression, generated fourth-quarter sales of $22.9 million."", 'Analysts had expected it to post $26 million in sales, StreetAccount estimates said.', ""Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion."", ""Correction: Biogen's fourth-quarter sales from multiple sclerosis treatments fell to $1.07 billion."", 'An earlier version misstated the period.']",0.105757228271201,"Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023.",But the biotech company's guidance for the current year missed Wall Street's expectations.,0.0696674717797173,"In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth.","Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion.",2025-02-15
"Roku shares surge as company halves quarterly losses, adds 4 million streaming households",https://www.cnbc.com/2025/02/14/roku-shares-surge-as-company-nearly-halves-quarterly-losses.html,2025-02-14T21:01:38+0000,"In this articleShares of Roku surged 14% Friday, notching a new 52-week high, on earnings that beat Wall Street expectations.In an interview on CNBC's ""Squawk Box,"" CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.Wood said the company added more than four million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin.""We're the No. 1 streaming operating system in the country and in most of the Americas by a wide margin,"" he said.Here's how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company boosted revenue by 22% to $1.2 billion. It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase. Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.""Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,"" Wood said.The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.",CNBC,14/02/2025,"['In this articleShares of Roku surged 14% Friday, notching a new 52-week high, on earnings that beat Wall Street expectations.', 'In an interview on CNBC\'s ""Squawk Box,"" CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.', 'Wood said the company added more than four million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.', ""The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin."", '""We\'re the No.', '1 streaming operating system in the country and in most of the Americas by a wide margin,"" he said.', ""Here's how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company boosted revenue by 22% to $1.2 billion."", 'It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.', 'Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase.', 'Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.', 'Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.', '""Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,"" Wood said.', 'The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.']",0.1704985061856122,"The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin.","""We're the No.",0.9994687363505363,"Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.",,2025-02-15
"As Target and other retailers drop DEI programs, Black founders could face tougher battle to get and stay on shelves",https://www.cnbc.com/2025/02/14/target-walmart-dei-decisions-could-hurt-black-founders.html,2025-02-14T16:17:44+0000,"Fragrance brand Brown Girl Jane's perfume bottles sit on shelves at Sephora near some of the most storied labels in the fashion and beauty world, including Prada and Dior.For the Black-owned brand, getting a retailer to bet on it was just the start, Brown Girl Jane CEO and founder Malaika Jones said. She said Sephora has supported the company so it can better compete with well-known brands with huge marketing budgets and glossy celebrity endorsements.Brown Girl Jane received a $100,000 grant last year from Sephora to help grow its business and participated in Sephora's Accelerate program, which aims to boost founders who are people of color. Sephora spotlighted the fragrance brand in an email to customers in early February, putting it in front of potential shoppers who don't know its name. Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago.While Sephora has put its weight behind its brand incubator, much larger retailers like Walmart and Target recently scaled back similar efforts focused on finding and funding more brands founded by people of color. Without that support from the retailers themselves, brands like Brown Girl Jane could face a tougher time getting on shelves — and succeeding once they get there.""For small brands, but for any brands, really, it's a constant fight for relevance and for visibility,"" Jones said. ""And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves.""When retailers launched supplier diversity programs — many of them in the months after police killed George Floyd in 2020 — top industry leaders including Walmart CEO Doug McMillon and Target CEO Brian Cornell spoke out about the institutional barriers that people of color face, including when financing their businesses. Now, as more retailers drop diversity, equity and inclusion programs, Black-owned brands may find it harder to clear those hurdles.In January, Target dropped specific DEI pledges that it made four years ago after Floyd was murdered a short distance from its Minneapolis headquarters. Among those goals, the big-box retailer had committed to adding products from more than 500 Black-owned brands to its shelves or website and spending $2 billion with Black-owned businesses by 2025.Late last year, Walmart confirmed that it was ending key diversity initiatives, including winding down the Center for Racial Equity, a nonprofit that the retailer started and funded with $100 million to tackle racial inequities. It had chosen finance as one of those focus areas, noting the gap in funding for Black entrepreneurs.Gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers.Not every major retailer has dropped DEI initiatives. Sephora, Costco and E.l.f. Beauty, among others, have reaffirmed their commitments. And the most prominent effort to increase the share of Black-owned brands on retail shelves, the 15 Percent Pledge, still has major backers.Companies from Google to Ford and Tractor Supply have rolled back their initiatives to boost representation of people of color, women and LGBTQ+ people, as political backlash and pressure from conservative activists has intensified. The trend only accelerated after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as ""dangerous, demeaning, and immoral race- and sex-based preferences.""It's a sharp change from about five years ago, when companies released a wave of announcements committing to fighting inequity. They made bold pledges to add more diversity to their workforces and C-suites, seek out Black and minority vendors and donate to philanthropic causes that fought racism and supported expanded opportunities for marginalized groups.Fear of litigation, activist investor scrutiny and political pressure has caused companies to backpedal or keep their initiatives below the radar, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI.One of those lawsuits targeted The Fearless Fund, an Atlanta-based venture capital fund dedicated to awarding grants to businesses founded by Black women to bridge a longstanding funding gap. Only 1.3% of the more than $345 billion raised by venture-backed startups in 2021 went to Black founders, according to Deloitte and Venture Forward's 2023 report. About 2.4% went to startups led by female founders and 2.1% of that total went to startups led by Hispanic founders.American Alliance for Equal Rights, a conservative group founded by Edward Blum, sued The Fearless Fund in 2023, accusing it of discriminating against non-Black business owners. Blum previously fought against race-based college admissions, a campaign that led to the Supreme Court's ruling that affirmative action policies are unconstitutional — which some companies cited last year in ending their DEI initiatives.As part of a settlement reached last year, The Fearless Fund shut down its grant program.Solorzano said that lawsuit had a chilling effect and will ""seriously undermine some of these [supplier] initiatives."" He said he expects more corporations to scrub numbers from their diversity programs, including supplier programs focused on increasing Black- and minority-owned brands on shelves.Yet ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, he said. Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors.Even as some retailers walk back diversity pledges, Sephora, Costco and E.l.f. Beauty, have doubled down on those efforts not as a feel-good move, but as a meaningful part of their business strategies.Sephora, a 15 Percent Pledge member which is owned by LVMH, has increased the percentage of Black-owned brands on its shelves from 3% in 2020 to about 10% as of 2025, said Artemis Patrick, president and CEO of Sephora North America. In its hair category, 15% of the brands are Black-owned.Sephora started Accelerate in 2016 with a focus on female founders. The six-month incubator helps mentor business owners, connects them to investors and gives them the opportunity to launch at Sephora.The retailer pivoted the program in 2020 to focus on Black and other minority founders to address ""the need of the evolving consumer and where we truly did feel like we had an assortment gap,"" Patrick said.So far, more than 33 Black- and minority-owned brands have gone through the incubator, she said.""Our business is really good and the fact that we've been really focused on diversifying our assortment, I think there's a strong correlation,"" she said.She added ""it would be very strange in a beauty category to not be driving diversity in your assortment that meets the needs of your clients.""At Costco's annual meeting last month, 98% of shareholders rejected a proposal that requested a report on the risk of Costco maintaining diversity, equity and inclusion initiatives.In a proxy statement ahead of the meeting, the warehouse club's board of directors said diversity benefits its business and helps it better serve a wide range of customers.""Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the 'treasure hunt' that our customers value,"" it wrote.Costco's board added that diversity across its suppliers ""fosters creativity and innovation in the merchandise and services that we offer our members.""Tarang Amin, CEO of popular Gen Z makeup brand E.l.f. Beauty, called the company's diversity ""a key competitive advantage in terms of our results"" in an interview with CNN earlier this month. He said the company's employees are 74% women, 76% Gen Z and millennial and over 44% diverse and ""reflect the community we serve.""Nearly five years ago, Aurora James challenged companies in an Instagram post to dedicate more of their shelf space to Black-owned businesses. That idea, which she proposed days after Floyd's murder, started the 15 Percent Pledge.""So many of your businesses are built on Black spending power,"" she wrote at the time. ""So many of your stores are set up in Black communities. So many of your posts seen on Black feeds. This is the least you can do for us. We represent 15% of the population and we need to represent 15% of your shelf space.""Sephora was the first company to sign the pledge. About 22 companies are active participants in the pledge, including Macy's and Nordstrom, according to the nonprofit. The 15 Percent Pledge has a directory of Black-owned brands on its website. It also awards grants to businesses and raises money to back Black-owned businesses through an annual gala, which drew celebrities, actors and business leaders including Kim Kardashian, Kelly Rowland and Jesse Williams earlier this month.Some of the changes inspired by the pledge are visible on shelves.Sephora has more than tripled the Black-owned brands on its shelves in the past five years. In the email to customers, it noted that number had spiked from eight to 30 since it took the Fifteen Percent Pledge in 2020.Those brands include makeup, shampoos and more backed by small entrepreneurs and celebrities, including Fenty Beauty by Rihanna, Pattern by Tracee Ellis Ross and Sienna Naturals, which was co-founded by Hannah Diop and actress Issa Rae.Nordstrom, which also signed on to the 15 Percent Pledge, has now added more Black-owned brands, too, including Buttah Skin, Briogeo and Honor the Gift.And Macy's, another 15 Percent Pledge participant, has had an accelerator for over a decade which was launched to support underrepresented brand owners and founders. The Workshop, which started in 2011, offers grant funding and education for companies seeking to make it on retailers' shelves and websites.James, who herself is a Black founder of a luxury brand called Brother Vellies, said she's disheartened to see companies back away from supporting smaller Black- and minority-owned suppliers.""The idea is not about giving preferential treatment,"" she said. ""The idea is about making sure that we cast our net wide enough that we're not just looking at the obvious channels.""By relying more on big conglomerates, retailers miss out on funding smaller U.S. business that create jobs and stimulate the local economy, she said.""In a time when I think small business all across America is suffering, to specifically target groups of founders and say, 'You can't get access or opportunity,' just feels like a blow to all small businesses across America,"" she said.She said the reversal of DEI by some companies show their commitments never ran deep.""Target never took the pledge. Walmart never took the pledge,"" she said. ""I don't think that they were ever really that serious about what they were doing.""Not every company has stuck with the pledge. Gap did not renew with the group late last year — but said in a statement that it's not backing away from DEI efforts. Over the past year, the company has gone through major changes as part of a turnaround led by Richard Dickson, its new CEO.In a statement, the denim and apparel retailer, which also includes Old Navy and Athleta, said the pledge looked different for the company because it sells and manufacturers its own brands. It said it ""joined the pledge with the goal of increasing our diverse access and pipeline programs, and we met and exceeded that goal.""A Gap spokesman declined to share specific goals, but said they focused on recruiting talent from diverse backgrounds.This week, Gap rolled out a limited-time initiative to support Black businesses by selling shirts and hoodies from six Black designers from Harlem's Fashion Row online and in select stores.Walmart and Target have downplayed concerns that they will start to carry fewer Black-owned brands. A Walmart spokesperson pointed to the company's Supplier Inclusion Program, which focuses on adding products from smaller vendors. She said the company also works with banks and lenders to expedite payments for orders or connect suppliers to loans.Even as Target phases out DEI goals for Black-owned businesses, the discounter will keep offering Black-owned and minority-owned brands, a spokesman said. On its website, it's promoting its collection of Black History Month items. He said Target will offer its Forward Founders program two times per year, which is designed for early-stage consumer packaged goods companies across categories including beauty, food and pets.When Target launched Forward Founders in 2021, the company said the program was ""designed to help Black-owned businesses increase their potential for long-term success in retail.""Since last year, Target's website has said the program is ""evolving"" — noting that founders no longer fill out an application for programs and Target will reach out to them if they're ""a strategic fit."" A spokesman said the company's changes to its DEI initiatives do not affect its programs to boost founders, but did not offer more detail.Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.In an Instagram post, social media personality, actress, and entrepreneur Tabitha Brown said ""it's definitely heartbreaking to feel unsupported."" But Brown, who has an active contract with Target, encouraged shoppers to use their dollars strategically when shopping Target's shelves.She's developed merchandise with Target, including a collection of clothing, swimwear and home decor. Target also carries Donna's Recipe, a haircare brand she co-founded.""You can still go into those stores, if you choose to, and buy specific brands that you want to support. And let the other things not get your money,"" she said.She said if sales of Black-owned brands fall, retailers will remove them from their shelves.""And then what happens to all the businesses who worked so hard to get where they are?"" she said.Handbag designer Brandon Blackwood said he worries that it will be harder for the next founder like him to get picked up by a major retailer.His brand took off in 2020 during the Black Lives Matter movement, after he made a tote decorated with three words instead of a logo: ""End Systemic Racism."" The bag gained traction through social media.Yet he said major retailers that picked up handbags from his brand at the time, including Neiman Marcus, Bloomingdale's and Nordstrom, ""helped put my product in front of a lot of people that wouldn't necessarily have seen it.""""That really helped us and that really helped our brand awareness,"" he said.If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.For Brown Girl Jane, winning the confidence and business of major retailers — and particularly, Sephora — has been game changing, said Jones, the company's founder and CEO. The brand got picked up first by Nordstrom in 2021. Now, Macy's, Saks Fifth Avenue and Bloomingdale's also sell its fragrances.Sephora is its the biggest wholesale deal so far: The beauty retailer carries some exclusive scents, including Carnivale, a fragrance that sells for $102 and blends together juicy mango, sandalwood and creamy vanilla.Jones said the company's annual revenue is now in the $5 million to $7 million range. Roughly half of the company's sales come from wholesale.She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they've also been ""the biggest champion and a true partner of the brand.""And she said that customers of all races desire her brand — and others from Black founders. About 40% of Brown Girl Jane's customers are white, she said.By backing away from DEI, she said companies also send a message to their buyers that casting a wide net for new brands doesn't matter.""It's one thing to say 'Ok, yeah. They [buyers] can still find who they find,'"" she said. ""But we know that without intentionality, a lot of these brands are just going to be overlooked.""",CNBC,14/02/2025,"[""Fragrance brand Brown Girl Jane's perfume bottles sit on shelves at Sephora near some of the most storied labels in the fashion and beauty world, including Prada and Dior."", 'For the Black-owned brand, getting a retailer to bet on it was just the start, Brown Girl Jane CEO and founder Malaika Jones said.', 'She said Sephora has supported the company so it can better compete with well-known brands with huge marketing budgets and glossy celebrity endorsements.', ""Brown Girl Jane received a $100,000 grant last year from Sephora to help grow its business and participated in Sephora's Accelerate program, which aims to boost founders who are people of color."", ""Sephora spotlighted the fragrance brand in an email to customers in early February, putting it in front of potential shoppers who don't know its name."", ""Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago."", 'While Sephora has put its weight behind its brand incubator, much larger retailers like Walmart and Target recently scaled back similar efforts focused on finding and funding more brands founded by people of color.', 'Without that support from the retailers themselves, brands like Brown Girl Jane could face a tougher time getting on shelves — and succeeding once they get there.', '""For small brands, but for any brands, really, it\'s a constant fight for relevance and for visibility,"" Jones said. ""', ""And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves."", '""When retailers launched supplier diversity programs — many of them in the months after police killed George Floyd in 2020 — top industry leaders including Walmart CEO Doug McMillon and Target CEO Brian Cornell spoke out about the institutional barriers that people of color face, including when financing their businesses.', 'Now, as more retailers drop diversity, equity and inclusion programs, Black-owned brands may find it harder to clear those hurdles.', 'In January, Target dropped specific DEI pledges that it made four years ago after Floyd was murdered a short distance from its Minneapolis headquarters.', 'Among those goals, the big-box retailer had committed to adding products from more than 500 Black-owned brands to its shelves or website and spending $2 billion with Black-owned businesses by 2025.Late last year, Walmart confirmed that it was ending key diversity initiatives, including winding down the Center for Racial Equity, a nonprofit that the retailer started and funded with $100 million to tackle racial inequities.', 'It had chosen finance as one of those focus areas, noting the gap in funding for Black entrepreneurs.', ""Gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers."", 'Not every major retailer has dropped DEI initiatives.', 'Sephora, Costco and E.l.f.', 'Beauty, among others, have reaffirmed their commitments.', 'And the most prominent effort to increase the share of Black-owned brands on retail shelves, the 15 Percent Pledge, still has major backers.', 'Companies from Google to Ford and Tractor Supply have rolled back their initiatives to boost representation of people of color, women and LGBTQ+ people, as political backlash and pressure from conservative activists has intensified.', 'The trend only accelerated after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as ""dangerous, demeaning, and immoral race- and sex-based preferences.', '""It\'s a sharp change from about five years ago, when companies released a wave of announcements committing to fighting inequity.', 'They made bold pledges to add more diversity to their workforces and C-suites, seek out Black and minority vendors and donate to philanthropic causes that fought racism and supported expanded opportunities for marginalized groups.', 'Fear of litigation, activist investor scrutiny and political pressure has caused companies to backpedal or keep their initiatives below the radar, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI.One of those lawsuits targeted The Fearless Fund, an Atlanta-based venture capital fund dedicated to awarding grants to businesses founded by Black women to bridge a longstanding funding gap.', ""Only 1.3% of the more than $345 billion raised by venture-backed startups in 2021 went to Black founders, according to Deloitte and Venture Forward's 2023 report."", 'About 2.4% went to startups led by female founders and 2.1% of that total went to startups led by Hispanic founders.', 'American Alliance for Equal Rights, a conservative group founded by Edward Blum, sued The Fearless Fund in 2023, accusing it of discriminating against non-Black business owners.', ""Blum previously fought against race-based college admissions, a campaign that led to the Supreme Court's ruling that affirmative action policies are unconstitutional — which some companies cited last year in ending their DEI initiatives."", 'As part of a settlement reached last year, The Fearless Fund shut down its grant program.', 'Solorzano said that lawsuit had a chilling effect and will ""seriously undermine some of these [supplier] initiatives.""', 'He said he expects more corporations to scrub numbers from their diversity programs, including supplier programs focused on increasing Black- and minority-owned brands on shelves.', 'Yet ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, he said.', 'Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors.', 'Even as some retailers walk back diversity pledges, Sephora, Costco and E.l.f.', 'Beauty, have doubled down on those efforts not as a feel-good move, but as a meaningful part of their business strategies.', 'Sephora, a 15 Percent Pledge member which is owned by LVMH, has increased the percentage of Black-owned brands on its shelves from 3% in 2020 to about 10% as of 2025, said Artemis Patrick, president and CEO of Sephora North America.', 'In its hair category, 15% of the brands are Black-owned.', 'Sephora started Accelerate in 2016 with a focus on female founders.', 'The six-month incubator helps mentor business owners, connects them to investors and gives them the opportunity to launch at Sephora.', 'The retailer pivoted the program in 2020 to focus on Black and other minority founders to address ""the need of the evolving consumer and where we truly did feel like we had an assortment gap,"" Patrick said.', 'So far, more than 33 Black- and minority-owned brands have gone through the incubator, she said.', '""Our business is really good and the fact that we\'ve been really focused on diversifying our assortment, I think there\'s a strong correlation,"" she said.', 'She added ""it would be very strange in a beauty category to not be driving diversity in your assortment that meets the needs of your clients.', '""At Costco\'s annual meeting last month, 98% of shareholders rejected a proposal that requested a report on the risk of Costco maintaining diversity, equity and inclusion initiatives.', ""In a proxy statement ahead of the meeting, the warehouse club's board of directors said diversity benefits its business and helps it better serve a wide range of customers."", '""Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the \'treasure hunt\' that our customers value,"" it wrote.', 'Costco\'s board added that diversity across its suppliers ""fosters creativity and innovation in the merchandise and services that we offer our members.', '""Tarang Amin, CEO of popular Gen Z makeup brand E.l.f.', 'Beauty, called the company\'s diversity ""a key competitive advantage in terms of our results"" in an interview with CNN earlier this month.', 'He said the company\'s employees are 74% women, 76% Gen Z and millennial and over 44% diverse and ""reflect the community we serve.', '""Nearly five years ago, Aurora James challenged companies in an Instagram post to dedicate more of their shelf space to Black-owned businesses.', ""That idea, which she proposed days after Floyd's murder, started the 15 Percent Pledge."", '""So many of your businesses are built on Black spending power,"" she wrote at the time. ""', 'So many of your stores are set up in Black communities.', 'So many of your posts seen on Black feeds.', 'This is the least you can do for us.', 'We represent 15% of the population and we need to represent 15% of your shelf space.', '""Sephora was the first company to sign the pledge.', ""About 22 companies are active participants in the pledge, including Macy's and Nordstrom, according to the nonprofit."", 'The 15 Percent Pledge has a directory of Black-owned brands on its website.', 'It also awards grants to businesses and raises money to back Black-owned businesses through an annual gala, which drew celebrities, actors and business leaders including Kim Kardashian, Kelly Rowland and Jesse Williams earlier this month.', 'Some of the changes inspired by the pledge are visible on shelves.', 'Sephora has more than tripled the Black-owned brands on its shelves in the past five years.', 'In the email to customers, it noted that number had spiked from eight to 30 since it took the Fifteen Percent Pledge in 2020.Those brands include makeup, shampoos and more backed by small entrepreneurs and celebrities, including Fenty Beauty by Rihanna, Pattern by Tracee Ellis Ross and Sienna Naturals, which was co-founded by Hannah Diop and actress Issa Rae.', 'Nordstrom, which also signed on to the 15 Percent Pledge, has now added more Black-owned brands, too, including Buttah Skin, Briogeo and Honor the Gift.', ""And Macy's, another 15 Percent Pledge participant, has had an accelerator for over a decade which was launched to support underrepresented brand owners and founders."", ""The Workshop, which started in 2011, offers grant funding and education for companies seeking to make it on retailers' shelves and websites."", ""James, who herself is a Black founder of a luxury brand called Brother Vellies, said she's disheartened to see companies back away from supporting smaller Black- and minority-owned suppliers."", '""The idea is not about giving preferential treatment,"" she said. ""', ""The idea is about making sure that we cast our net wide enough that we're not just looking at the obvious channels."", '""By relying more on big conglomerates, retailers miss out on funding smaller U.S. business that create jobs and stimulate the local economy, she said.', '""In a time when I think small business all across America is suffering, to specifically target groups of founders and say, \'You can\'t get access or opportunity,\' just feels like a blow to all small businesses across America,"" she said.', 'She said the reversal of DEI by some companies show their commitments never ran deep.', '""Target never took the pledge.', 'Walmart never took the pledge,"" she said. ""', ""I don't think that they were ever really that serious about what they were doing."", '""Not every company has stuck with the pledge.', ""Gap did not renew with the group late last year — but said in a statement that it's not backing away from DEI efforts."", 'Over the past year, the company has gone through major changes as part of a turnaround led by Richard Dickson, its new CEO.In a statement, the denim and apparel retailer, which also includes Old Navy and Athleta, said the pledge looked different for the company because it sells and manufacturers its own brands.', 'It said it ""joined thepledge with the goal of increasing our diverse access and pipeline programs, and we met and exceeded that goal.', '""A Gap spokesman declined to share specific goals, but said they focused on recruiting talent from diverse backgrounds.', ""This week, Gap rolled out a limited-time initiative to support Black businesses by selling shirts and hoodies from six Black designers from Harlem's Fashion Row online and in select stores."", 'Walmart and Target have downplayed concerns that they will start to carry fewer Black-owned brands.', ""A Walmart spokesperson pointed to the company'sSupplier Inclusion Program, which focuses on adding products from smaller vendors."", 'She said the company also works with banks and lenders to expedite payments for orders or connect suppliers to loans.', 'Even as Target phases out DEI goals for Black-owned businesses, the discounter will keep offering Black-owned and minority-owned brands, a spokesman said.', ""On its website, it's promoting its collection of Black History Month items."", 'He said Target will offer itsForward Foundersprogram two times per year, which is designed for early-stage consumer packaged goods companies across categories including beauty, food and pets.', 'When Target launched Forward Founders in 2021, the company said the program was ""designed to help Black-owned businesses increase their potential for long-term success in retail.', '""Since last year, Target\'s website has said the program is ""evolving"" —noting that founders no longer fill out an application for programs and Target will reach out to them if they\'re ""a strategic fit.', '""A spokesman said the company\'s changes to its DEI initiatives do not affect its programs to boost founders, but did not offer more detail.', 'Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.', 'In an Instagram post, social media personality, actress, and entrepreneur Tabitha Brown said ""it\'s definitely heartbreaking to feel unsupported.""', ""But Brown, who has an active contract with Target, encouraged shoppers to use their dollars strategically when shopping Target's shelves."", ""She's developed merchandise with Target, including a collection of clothing, swimwear and home decor."", ""Target also carries Donna's Recipe, a haircare brand she co-founded."", '""You can still go into those stores, if you choose to, and buy specific brands that you want to support.', 'And let the other things not get your money,"" she said.', 'She said if sales of Black-owned brands fall, retailers will remove them from their shelves.', '""And then what happens to all the businesses who worked so hard to get where they are?""', 'she said.', 'Handbag designer Brandon Blackwood said he worries that it will be harder for the next founder like him to get picked up by a major retailer.', 'His brand took off in 2020 during the Black Lives Matter movement, after he made a tote decorated with three words instead of a logo: ""End Systemic Racism.""', 'The bag gained traction through social media.', 'Yet he said major retailers that picked up handbags from his brand at the time, including Neiman Marcus, Bloomingdale\'s and Nordstrom, ""helped put my product in front of a lot of people that wouldn\'t necessarily have seen it.', '""""That really helped us and that really helped our brand awareness,"" he said.', 'If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.', ""For Brown Girl Jane, winning the confidence and business of major retailers — and particularly, Sephora — has been game changing, said Jones, the company's founder and CEO."", 'The brand got picked up first by Nordstrom in 2021.', ""Now, Macy's, Saks Fifth Avenue and Bloomingdale's also sell its fragrances."", 'Sephora is its the biggest wholesale deal so far: The beauty retailer carries some exclusive scents, including Carnivale, a fragrance that sells for $102 and blends together juicy mango, sandalwood and creamy vanilla.', ""Jones said the company's annual revenue is now in the $5 million to $7 million range."", ""Roughly half of the company's sales come from wholesale."", 'She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they\'ve also been ""the biggest champion and a true partner of the brand.', '""And she said that customers of all races desire her brand — and others from Black founders.', ""About 40% of Brown Girl Jane's customers are white, she said."", ""By backing away from DEI, she said companies also send a message to their buyers that casting a wide net for new brands doesn't matter."", '""It\'s one thing to say \'Ok, yeah.', 'They [buyers] can still find who they find,\'"" she said. ""', 'But we know that without intentionality, a lot of these brands are just going to be overlooked.""']",0.1672524808533432,"She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they've also been ""the biggest champion and a true partner of the brand.","Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.",-0.069505982539233,Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago.,"If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.",2025-02-15
Comcast and NBCUniversal receive FCC inquiry on DEI initiatives,https://www.cnbc.com/2025/02/12/comcast-nbcuniversal-fcc-inquiry-dei.html,2025-02-13T13:17:55+0000,"In this articleThe Federal Communications Commission has alerted Comcast Corp. that it will begin an investigation into the diversity, equity and inclusion efforts at the media giant.The FCC, the agency that regulates the media and telecommunications industry, said in a letter dated Tuesday that it would open the inquiry into both Comcast — which provides broadband, mobile and cable TV services under the Xfinity brand — and NBCUniversal, the media arm that encompasses the company's broadcast and cable TV networks, streaming app Peacock, and Universal film studio and amusement parks.The letter comes three weeks after President Donald Trump signed an executive order looking to end DEI practices at U.S. corporations. The order calls for each federal agency to ""identify up to nine potential civil compliance investigations"" among publicly traded companies, as well as nonprofits and other institutions.FCC Chairman Brendan Carr, a Republican who was recently appointed by Trump, said he was starting his investigation with Comcast and NBCUniversal because they ""cover a range of sectors regulated by the FCC.""""We have received an inquiry from the Federal Communications Commission and will be cooperating with the FCC to answer their questions,"" a Comcast spokesperson said in a statement Wednesday. ""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers."" Carr said in the letter sent to Comcast that he was ""concerned that Comcast and NBCUniversal may be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.""The letter goes on to say that ""Comcast states on its website that promoting DEI is 'a core value of our business' and public reports state that Comcast has an entire 'DEI infrastructure' that includes annual 'DEI day[s],' 'DEI training for company leaders,' and similar initiatives."" The letter says NBCUniversal has similar initiatives, ""including executives specifically dedicated to promoting DEI across the TV and programming side of the business.""Later on Wednesday, FCC Commissioner Geoffrey Starks issued a statement condemning the investigation and requesting to receive more information. He noted that when Carr was a commissioner himself, he ""blasted the prior administration for acting in a way that 'gives the FCC a nearly limitless power to veto private sector decision.'""""From what I know this enforcement action is out of our lane and out of our reach. I have asked for a briefing to understand the Enforcement Bureau's theory of the case, the authority relied upon and any prior precedent. This action gives me grave concern,"" Starks said in a statement. An FCC representative didn't immediately respond for comment regarding the statement from Starks.Fellow media giant Disney is changing its DEI programs, which includes updating performance factors and rebranding initiatives and employee resource groups, among other things, the company confirmed Wednesday.Public broadcaster PBS is shutting down its DEI office. A PBS representative confirmed that those employees were leaving the company, noting it was to stay in compliance with Trump's executive order.""We will continue to adhere to our mission and values. PBS will continue to reflect all of America and remain a welcoming place for everyone,"" the broadcaster said in a statement.Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.— CNBC's Sarah Whitten contributed to this article.",CNBC,13/02/2025,"['In this articleThe Federal Communications Commission has alerted Comcast Corp. that it will begin an investigation into the diversity, equity and inclusion efforts at the media giant.', ""The FCC, the agency that regulates the media and telecommunications industry, said in a letter dated Tuesday that it would open the inquiry into both Comcast — which provides broadband, mobile and cable TV services under the Xfinity brand — and NBCUniversal, the media arm that encompasses the company's broadcast and cable TV networks, streaming app Peacock, and Universal film studio and amusement parks."", 'The letter comes three weeks after President Donald Trump signed an executive order looking to end DEI practices at U.S. corporations.', 'The order calls for each federal agency to ""identify up to nine potential civil compliance investigations"" among publicly traded companies, as well as nonprofits and other institutions.', 'FCC Chairman Brendan Carr, a Republican who was recently appointed by Trump, said he was starting his investigation with Comcast and NBCUniversal because they ""cover a range of sectors regulated by the FCC.""""We have received an inquiry from the Federal Communications Commission and will be cooperating with the FCC to answer their questions,"" a Comcast spokesperson said in a statement Wednesday.', '""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers.', '""Carr said in the letter sent to Comcast that he was ""concerned that Comcast and NBCUniversal may be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.', '""The letter goes on to say that ""Comcast states on its website that promoting DEI is \'a core value of our business\' and public reports state that Comcast has an entire \'DEI infrastructure\' that includes annual \'DEI day[s],\' \'DEI training for company leaders,\' and similar initiatives.""', 'The letter says NBCUniversal has similar initiatives, ""including executives specifically dedicated to promoting DEI across the TV and programming side of the business.', '""Later on Wednesday, FCC Commissioner Geoffrey Starks issued a statement condemning the investigation and requesting to receive more information.', 'He noted that when Carr was a commissioner himself, he ""blasted the prior administration for acting in a way that \'gives the FCC a nearly limitless power to veto private sector decision.', '\'""""From what I know this enforcement action is out of our lane and out of our reach.', ""I have asked for a briefing to understand the Enforcement Bureau's theory of the case, the authority relied upon and any prior precedent."", 'This action gives me grave concern,"" Starks said in a statement.', ""An FCC representative didn't immediately respond for comment regarding the statement from Starks."", 'Fellow media giant Disney is changing its DEI programs, which includes updating performance factors and rebranding initiatives and employee resource groups, among other things, the company confirmed Wednesday.', 'Public broadcaster PBS is shutting down its DEI office.', ""A PBS representative confirmed that those employees were leaving the company, noting it was to stay in compliance with Trump's executive order."", '""We will continue to adhere to our mission and values.', 'PBS will continue to reflect all of America and remain a welcoming place for everyone,"" the broadcaster said in a statement.', 'Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.—', ""CNBC's Sarah Whitten contributed to this article.""]",0.1599878249686233,"""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers.","This action gives me grave concern,"" Starks said in a statement.",-0.982764333486557,,"This action gives me grave concern,"" Starks said in a statement.",2025-02-15
Fashion's most hated garment — the skinny jean — is making a comeback,https://www.cnbc.com/2025/02/08/skinny-jeans-are-making-a-comeback.html,2025-02-10T15:30:47+0000,"In this articleThe vilified linchpin of millennial and Y2K fashion – the skinny jean – might be on its way to a comeback.Over the last few months, a range of skinny styles, including pants and jeans, have cropped up on fashion runways, influencer videos and Google search trends, indicating the divisive garment could soon be a closet staple again. Part of the buzz around skinny jeans undoubtedly came when TikTok star and Gen Z influencer Alix Earle debuted a pair of exclusive skinnies with denim brand Frame at the end of January, but the hype was already building before that. ""For like the last six months, we started to hear rumblings of skinny jeans making a comeback,"" said Janine Stichter, a retail analyst and managing director at BTIG. ""If you look at Google Trends data for skinny jeans ... it actually [spiked] the week of January 12 and it's been picking up steam ever since.""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.That likely led to a spike in interest across retailers. Reformation told CNBC this week its customers have been searching for skinny jeans on its website more frequently lately.American Eagle has also seen interest grow. ""Certainly, there's a lot of activity on skinny. I would like to say there's a styling thing that's happening, the high boot situation, and high boots and skinny jeans work, so that's definitely taking hold,"" Jen Foyle, American Eagle's president and executive creative officer, told CNBC in an interview.""You're starting to see some of that movement but right now, it's still relatively small, but we're prepared to roll with it as we test it and scale,"" she continued. ""Our job is to be nimble, right?""But like any fashion trend, the skinny jean resurgence was first spotted on the runways. Based on how the major designers are interpreting the look, it'll appear different this time around. ""On the runways, Prada, Isabel Morant, Tod's, they all did very slim silhouette pants. They're calling them skinny pants. The difference is that they're doing them in plaid, not just solids. They're doing them in these very tailored fabrics,"" said Shawn Grain Carter, a fashion professor at the Fashion Institute of Technology in New York. ""We're seeing some of the celebrities wear these skinny jeans, but they're not nearly as conforming … it's different from the jeggings that you saw [between 2009 and 2011]... It conforms to the leg, but it doesn't have to necessarily hug it so tightly that all you see is an outline of a woman's leg.""The unofficial queen of denim – Levi Strauss CEO Michelle Gass – spotted the same trend on the runways and told CNBC she expects the controversial jeans to officially come back ""sometime in the future.""""While we don't have a crystal ball, don't get rid of your skinny jeans,"" said Gass. ""I do think when we see a bigger trend re-emerge, it's going to look and feel different."" Grain Carter said skinny styles could start appearing in stores more widely by this summer, but Stichter said they could start returning to shelves closer to the fall when more consumers are out shopping for pants and jeans. That'll be welcome news for apparel and footwear retailers because whenever trends shift, it tends to trigger a surge in demand for new clothes, she said. ""If we are to get a full fledged restocking in any of these styles, it tends to be a big positive for the sector,"" said Stichter. ""Anytime you have a big silhouette shift, it's positive for restocking cycles. It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for."" For those who've only just stocked up their closet on baggy and loose fits, the current jean du jour, rest assured that there's room for both. If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter.Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead. ""The denim closet really should have all varieties of denim. It really is about what you're wearing, what your mood is, and people still wear skinny today,"" said Gass. ""So keep your loose, keep your baggie. Everything right now goes.""",CNBC,10/02/2025,"['In this articleThe vilified linchpin of millennial and Y2K fashion – the skinny jean – might be on its way to a comeback.', 'Over the last few months, a range of skinny styles, including pants and jeans, have cropped up on fashion runways, influencer videos and Google search trends, indicating the divisive garment could soon be a closet staple again.', 'Part of the buzz around skinny jeans undoubtedly came when TikTok star and Gen Z influencer Alix Earle debuted a pair of exclusive skinnies with denim brand Frame at the end of January, but the hype was already building before that.', '""For like the last six months, we started to hear rumblings of skinny jeans making a comeback,"" said Janine Stichter, a retail analyst and managing director at BTIG. ""', ""If you look at Google Trends data for skinny jeans ... it actually [spiked] the week of January 12 and it's been picking up steam ever since."", '""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.', 'That likely led to a spike in interest across retailers.', 'Reformation told CNBC this week its customers have been searching for skinny jeans on its website more frequently lately.', 'American Eagle has also seen interest grow.', '""Certainly, there\'s a lot of activity on skinny.', 'I would like to say there\'s a styling thing that\'s happening, the high boot situation, and high boots and skinny jeans work, so that\'s definitely taking hold,"" Jen Foyle, American Eagle\'s president and executive creative officer, told CNBC in an interview.', '""You\'re starting to see some of that movement but right now, it\'s still relatively small, but we\'re prepared to roll with it as we test it and scale,"" she continued. ""', 'Our job is to be nimble, right?""But like any fashion trend, the skinny jean resurgence was first spotted on the runways.', ""Based on how the major designers are interpreting the look, it'll appear different this time around."", '""On the runways, Prada, Isabel Morant, Tod\'s, they all did very slim silhouette pants.', ""They're calling them skinny pants."", ""The difference is that they're doing them in plaid, not just solids."", 'They\'re doing them in these very tailored fabrics,"" said Shawn Grain Carter, a fashion professor at the Fashion Institute of Technology in New York. ""', ""We're seeing some of the celebrities wear these skinny jeans, but they're not nearly as conforming … it's different from the jeggings that you saw [between 2009 and 2011]... It conforms to the leg, but it doesn't have to necessarily hug it so tightly that all you see is an outline of a woman's leg."", '""The unofficial queen of denim – Levi Strauss CEO Michelle Gass – spotted the same trend on the runways and told CNBC she expects the controversial jeans to officially come back ""sometime in the future.', '""""While we don\'t have a crystal ball, don\'t get rid of your skinny jeans,"" said Gass. ""', ""I do think when we see a bigger trend re-emerge, it's going to look and feel different."", '""Grain Carter said skinny styles could start appearing in stores more widely by this summer, but Stichtersaid they could start returning to shelves closer to the fall when more consumers are out shopping for pants and jeans.', ""That'll be welcome news for apparel and footwear retailers because whenever trends shift, it tends to trigger a surge in demand for new clothes, she said."", '""If we are to get a full fledged restocking in any of these styles, it tends to be a big positive for the sector,"" said Stichter. ""', ""Anytime you have a big silhouette shift, it's positive for restocking cycles."", ""It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for."", '""For those who\'ve only just stocked up their closet on baggy and loose fits, the current jean du jour, rest assured that there\'s room for both.', ""If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter."", ""Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead."", '""The denim closet really should have all varieties of denim.', 'It really is about what you\'re wearing, what your mood is, and people still wear skinny today,"" said Gass. ""', 'So keep your loose, keep your baggie.', 'Everything right now goes.""']",0.154870661078114,"It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for.","Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead.",0.8036356866359711,"""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.","If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter.",2025-02-15
Coca-Cola says it will sell more soda in plastic bottles if aluminum tariffs take effect,https://www.cnbc.com/2025/02/11/coca-cola-discusses-trump-aluminum-tariffs.html,2025-02-11T17:15:31+0000,"In this articleCoca-Cola will shift more of its packaging from aluminum to plastic bottles if President Donald Trump implements his latest wave of tariffs, CEO James Quincey said Tuesday.""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said on the company's earnings conference call. ""For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,"" Quincey added.Trump on Monday raised tariffs on all aluminum and steel imports to 25% from 10%, starting next month. The action is widely seen as taking aim at China, although the U.S. imports little steel directly from the country.Quincey downplayed the financial hit for Coca-Cola from the tariffs, although he said on CNBC's ""Squawk on the Street"" that the company buys some aluminum from Canada.""I think we're in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,"" Quincey said on the conference call. ""It's not insignificant, but it's not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure,"" the CEO added.In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.Aluminum is generally more expensive than plastic, but it is also infinitely recyclable and one of the most commonly recycled materials. In recent years, the company has shifted to adding more aluminum packaging options, such as canned Dasani and Smartwater.PET, or polyethylene terephthalate, is a lightweight plastic that can be easily recycled but is recycled at a lower rate than aluminum. The recycling rate of PET bottles and jars was 29.1% in 2018, compared with the recycling rate of aluminum beer and soft drink cans at 50.4% in the same year, according to data from the Environmental Protection Agency.Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage.Just two months ago, Coca-Cola slashed its sustainability goals. The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030. The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.",CNBC,11/02/2025,"['In this articleCoca-Cola will shift more of its packaging from aluminum to plastic bottles if President Donald Trump implements his latest wave of tariffs, CEO James Quincey said Tuesday.', '""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said on the company\'s earnings conference call. ""', 'For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,""', 'Quincey added.', 'Trump on Monday raised tariffs on all aluminum and steel imports to 25% from 10%, starting next month.', 'The action is widely seen as taking aim at China, although the U.S. imports little steel directly from the country.', 'Quincey downplayed the financial hit for Coca-Cola from the tariffs, although he said on CNBC\'s ""Squawk on the Street"" that the company buys some aluminum from Canada.', '""I think we\'re in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,"" Quincey said on the conference call. ""', 'It\'s not insignificant, but it\'s not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure,"" the CEO added.', 'In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.', 'Aluminum is generally more expensive than plastic, but it is also infinitely recyclable and one of the most commonly recycled materials.', 'In recent years, the company has shifted to adding more aluminum packaging options, such as canned Dasani and Smartwater.', 'PET, or polyethylene terephthalate, is a lightweight plastic that can be easily recycled but is recycled at a lower rate than aluminum.', 'The recycling rate of PET bottles and jars was 29.1% in 2018, compared with the recycling rate of aluminum beer and soft drink cans at 50.4% in the same year, according to data from the Environmental Protection Agency.', ""Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage."", 'Just two months ago, Coca-Cola slashed its sustainability goals.', 'The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030.', 'The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.']",-0.0358323272255695,"The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.","Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage.",-0.2568704088528951,"In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.","The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030.",2025-02-15
ESPN host Stephen A. Smith says he would be U.S. president as long as he doesn't have to campaign,https://www.cnbc.com/2025/02/12/espn-host-stephen-a-smith-wouldnt-mind-being-us-president.html,2025-02-13T20:53:35+0000,"Outspoken ESPN personality Stephen A. Smith is not ruling out a presidential run in his future.In an interview with CNBC Sport, Smith said, ""I wouldn't mind being in office.""Yet, the popular television host said it is the campaigning and being a politician that turns him off.""I'm not one of those dudes that's great at shaking hands and kissing babies, per se, and currying favor with politicians and donors. I'm not a beggar. That's not who I am,"" Smith told CNBC Sport.The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.Subscribe here to get access today.However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.""If you tell me that I could catapult to the White House, and I could be in a position to affect millions upon millions of lives, not just in America, but the world over, yeah, that's something that I would entertain,"" he said.The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.In a recent poll by McLaughlin & Associates, 2% of voters said they would vote for Smith in the 2028 presidential election.Watch CNBC Sport's full interview with Smith.",CNBC,13/02/2025,"['Outspoken ESPN personality Stephen A. Smith is not ruling out a presidential run in his future.', 'In an interview with CNBC Sport, Smith said, ""I wouldn\'t mind being in office.', '""Yet, the popular television host said it is the campaigning and being a politician that turns him off.', '""I\'m not one of those dudes that\'s great at shaking hands and kissing babies, per se, and currying favor with politicians and donors.', ""I'm not a beggar."", 'That\'s not who I am,"" Smith told CNBC Sport.', 'The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.', 'Subscribe here to get access today.', 'However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.', '""If you tell me that I could catapult to the White House, and I could be in a position to affect millions upon millions of lives, not just in America, but the world over, yeah, that\'s something that I would entertain,"" he said.', 'The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.', 'In a recent poll by McLaughlin & Associates, 2% of voters said they would vote for Smith in the 2028 presidential election.', ""Watch CNBC Sport's full interview with Smith.""]",0.161248135874975,"""I'm not one of those dudes that's great at shaking hands and kissing babies, per se, and currying favor with politicians and donors.","The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.",0.9959339499473572,"However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.",,2025-02-15
"As Trump eyes more tariffs, South Korea remains safe haven for GM and Hyundai",https://www.cnbc.com/2025/02/13/trump-tariffs-gm-hyundai-south-korean-imports.html,2025-02-15T21:01:45+0000,"DETROIT — As President Donald Trump threatens to further increase tariffs on U.S. trading partners, the greatest impact for the auto industry outside of North America would be additional levies on South Korea and Japan.The East Asian countries produced a combined 16.8% of vehicles sold last year in the U.S., including a record 8.6% from South Korea and 8.2% from Japan, according to data provided to CNBC by GlobalData.They were the largest vehicle importers to the U.S. outside of Mexico — and they have little to no duties compared with the 25% tariff Trump has threatened imposing on Canada and Mexico.Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea. The country overtook Japan and Canada last year to become the second-largest exporter of new cars to the U.S., based on sales.It trails only Mexico, which represented 16.2% of U.S. auto sales in 2024, GlobalData reports.""Obviously Hyundai has a massive amount of exposure. Behind it is GM … with relatively large volume models,"" said Jeff Schuster, global vice president of automotive research at GlobalData. ""There's a lot of risk potentially here, but it's limited, really limited, to those two players.""Imports from Japan are currently subject to a 2.5% tariff for automakers such as Toyota Motor, Nissan Motor and Honda Motor. Vehicles from Japan represented about 1.31 million autos sold last year in the U.S.Japan's percentage of sales has actually decreased in recent years, while South Korea's exports and sales have continued to rise from less than 845,000 in 2019 to more than 1.37 million in 2024.South Korea has 0% tariffs on cars despite Trump renegotiating a trade deal with the country during his first term in 2018. That accord was touted for improving vehicle imports to South Korea, but it did little to address vehicle exports to the U.S.The deal also has done little for increasing automotive exports to South Korea, according to data from the International Trade Commission. U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States. The companies importing the goods pay the tariffs, and some experts fear the companies would simply pass any additional costs on to consumers — raising the cost of vehicles and potentially reducing demand.South Korea-based Hyundai is the largest exporter of vehicles to the U.S., followed by GM and then Kia Corp., a part of Hyundai that largely operates separately in the U.S.GM has notably increased its imports from South Korea in recent years. Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.GM is the largest foreign direct investor in Korea's manufacturing industry, according to the automaker's website. It has invested 9 trillion South Korean won (roughly $6.2 billion) since establishing the operations in 2002.GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea. The company has touted the vehicles as being a pinnacle for the automaker's profitable growth in lower-margin, entry-level vehicles.""We're taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company's investor day in October. ""Trax and Envista have helped raise our share of the U.S. small SUV market to its highest level since 2007.""GM and Kia declined to comment when asked about potential tariffs on South Korea. Hyundai touted its operations and investments in the U.S., which the carmaker says have totaled $20.5 billion since entering the market in 1986, but did not directly comment on potential tariffs.""For nearly four decades, Hyundai has been a driver of American growth and innovation, contributing jobs, economic activity, and investments that have helped Americans prosper. We welcome the opportunity to work with the new administration to support American manufacturing, protect supply chains, and spur innovation,"" Hyundai said Thursday in an emailed statement.Terence Lau, dean of the College of Law at Syracuse University who previously worked as a trade expert for Ford Motor, said the automotive industry is built on free trade. If tariffs are implemented, the industry can adjust, but it takes time.""The car industry can adjust to anything. Really, it can. It's always going to make product that customers want to buy, because personal mobility and transportation is a human need all around the world,"" he said. ""What the car industry cannot do well is pivot on a dime.""Lau argued that a single-digit tariff can be a ""nuisance,"" but once they hit 10% or more, that's when additional costs can really began eating into the margin or products.Ford Motor CEO Jim Farley last week argued that if Trump is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries to even the playing field in North America.Farley singled out Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.""There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],"" Farley said during the company's fourth-quarter earnings call with investors. ""So if we're going to have a tariff policy ... it better be comprehensive for our industry.""We can't just cherry-pick one place or the other because this is a bonanza for our import competitors.""The White House did not respond for comment on potential tariffs on South Korea.Trump on Thursday signed a presidential memorandum laying out his plan to impose ""reciprocal tariffs"" on foreign nations, but did not go into detail regarding what countries could be targeted.As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports. But he also advocated for Congress to pass what he called the ""Trump Reciprocal Trade Act,"" which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.— CNBC's Kevin Breuninger contributed to this report.",CNBC,15/02/2025,"['DETROIT — As President Donald Trump threatens to further increase tariffs on U.S. trading partners, the greatest impact for the auto industry outside of North America would be additional levies on South Korea and Japan.', 'The East Asian countries produced a combined 16.8% of vehicles sold last year in the U.S., including a record 8.6% from South Korea and 8.2% from Japan, according to data provided to CNBC by GlobalData.', 'They were the largest vehicle importers to the U.S. outside of Mexico — and they have little to no duties compared with the 25% tariff Trump has threatened imposing on Canada and Mexico.', 'Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea.', 'The country overtook Japan and Canada last year to become the second-largest exporter of new cars to the U.S., based on sales.', 'It trails only Mexico, which represented 16.2% of U.S. auto sales in 2024, GlobalData reports.', '""Obviously Hyundai has a massive amount of exposure.', 'Behind it is GM … with relatively large volume models,"" said Jeff Schuster, global vice president of automotive research at GlobalData. ""', ""There's a lot of risk potentially here, but it's limited, really limited, to those two players."", '""Imports from Japan are currently subject to a 2.5% tariff for automakers such as Toyota Motor, Nissan Motor and Honda Motor.', ""Vehicles from Japan represented about 1.31 million autos sold last year in the U.S.Japan's percentage of sales has actually decreased in recent years, while South Korea's exports and sales have continued to rise from less than 845,000 in 2019 to more than 1.37 million in 2024.South Korea has 0% tariffs on cars despite Trump renegotiating a trade deal with the country during his first term in 2018."", 'That accord was touted for improving vehicle imports to South Korea, but it did little to address vehicle exports to the U.S.The deal also has done little for increasing automotive exports to South Korea, according to data from the International Trade Commission.', 'U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States.', 'The companies importing the goods pay the tariffs, and some experts fear the companies would simply pass any additional costs on to consumers — raising the cost of vehicles and potentially reducing demand.', 'South Korea-based Hyundai is the largest exporter of vehicles to the U.S., followed by GM and then Kia Corp., a part of Hyundai that largely operates separately in the U.S.GM has notably increased its imports from South Korea in recent years.', 'Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.', ""GM is the largest foreign direct investor in Korea's manufacturing industry, according to the automaker's website."", 'It has invested 9 trillion South Korean won (roughly $6.2 billion) since establishing the operations in 2002.GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea.', ""The company has touted the vehicles as being a pinnacle for the automaker's profitable growth in lower-margin, entry-level vehicles."", '""We\'re taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company\'s investor day in October. ""', 'Trax and Envista have helped raise our share of the U.S. small SUV market to its highest level since 2007.""GM and Kia declined to comment when asked about potential tariffs on South Korea.', 'Hyundai touted its operations and investments in the U.S., which the carmaker says have totaled $20.5 billion since entering the market in 1986, but did not directly comment on potential tariffs.', '""For nearly four decades, Hyundai has been a driver of American growth and innovation, contributing jobs, economic activity, and investments that have helped Americans prosper.', 'We welcome the opportunity to work with the new administration to support American manufacturing, protect supply chains, and spur innovation,"" Hyundai said Thursday in an emailed statement.', 'Terence Lau, dean of the College of Law at Syracuse University who previously worked as a trade expert for Ford Motor, said the automotive industry is built on free trade.', 'If tariffs are implemented, the industry can adjust, but it takes time.', '""The car industry can adjust to anything.', 'Really, it can.', 'It\'s always going to make product that customers want to buy, because personal mobility and transportation is a human need all around the world,"" he said. ""', 'What the car industry cannot do well is pivot on a dime.', '""Lau argued that a single-digit tariff can be a ""nuisance,"" but once they hit 10% or more, that\'s when additional costs can really began eating into the margin or products.', 'Ford Motor CEO Jim Farley last week argued that if Trump is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries to even the playing field in North America.', 'Farley singled out Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.', '""There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],"" Farley said during the company\'s fourth-quarter earnings call with investors. ""', ""So if we're going to have a tariff policy ... it better be comprehensive for our industry."", '""We can\'t just cherry-pick one place or the other because this is a bonanza for our import competitors.', '""The White House did not respond for comment on potential tariffs on South Korea.', 'Trump on Thursday signed a presidential memorandum laying out his plan to impose ""reciprocal tariffs"" on foreign nations, but did not go into detail regarding what countries could be targeted.', 'As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports.', 'But he also advocated for Congress to pass what he called the ""Trump Reciprocal Trade Act,"" which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.—', ""CNBC's Kevin Breuninger contributed to this report.""]",0.0928438907485276,"""We're taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company's investor day in October. ""","There's a lot of risk potentially here, but it's limited, really limited, to those two players.",0.3944496549665928,"Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.","U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States.",2025-02-15
How a CEO's exit and a Jeep 'comeback' led to Stellantis being the only automaker to advertise during Super Bowl 59,https://www.cnbc.com/2025/02/10/super-bowl-59-ad-stellantis-automaker.html,2025-02-10T21:22:47+0000,"DETROIT — A CEO's exit, electric vehicles making the industry run around like ""headless chickens"" and a company's U.S. revival all came together to make Ram and Jeep parent Stellantis the only automaker with a Super Bowl 59 commercial.That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl.Francois said Stellantis Chairman John Elkann, a scion of Italy's Fiat carmaker, called him after CEO Carlos Tavares' abrupt departure in December and told him to advertise during the big game as a recommitment to the automaker's business in the U.S.""We were not set to make a commercial. John Elkann called me in December, saying, you know, 'I want something. I want to make a comeback. We want to show, to express, that comeback story. We want to show America how much it is important to the Stellantis group,'"" Francois told CNBC.Stellantis, formerly known as Fiat Chrysler, has become well known under Francois for symbolic, nontraditional ads that feature iconic celebrities that tell a story beyond just attempting to sell new cars and trucks.It started when the automaker was attempting to make a comeback from its 2009 bankruptcy. It aired a surprise two-minute Super Bowl ad in 2011 featuring rapper Eminem and the city of Detroit — tying the company's revival to the Motor City's grit and rebirth. The ad also featured a now discontinued Chrysler sedan called the 200.Francois said Elkann, who's leading the search for a new CEO, told him to recapture that kind of ""comeback"" spirit for the automaker, following years of cost cutting and lackluster sales in the U.S.Elkann, Francois said, also told him to think of the late Fiat Chrysler CEO Sergio Marchionne when creating the automaker's ads this year. Marchionne, who died in 2018, was a supporter of Francois and past Super Bowl ads.""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose. He used to say, 'Mediocrity is not worth the trip,'"" Francois said. ""So this year's Super Bowl creative execution and investment are very much the essence of the spirit.""Since Eminem, the company's Super Bowl ads have featured actors such as Clint Eastwood, Bill Murray and singer Bob Dylan, among others. Those spots haven't necessarily prominently featured any specific vehicle, but they've discussed culturally relevant topics such as political divides and patriotism.Stellantis' Ram Trucks ad this year was a more traditional, comedic Super Bowl commercial. It starred ""Twisters"" and ""Top Gun: Maverick"" actor Glen Powell reimagining ""Goldilocks and the Three Bears"" with trucks.But the automaker's two-minute Jeep ad starring featuring ""Star Wars"" and ""Indiana Jones"" actor Harrison Ford was a true return to form for Francois.Francois said Ford turned down an initial pitch for a different ad. That's when Francois said he and friend Edward Razek, a former marketing executive for Victoria's Secret owner L Brands who resigned amid controversy in 2019, wrote the first version of the ad that aired.CMOs don't typically write scripts. It's more common for those executives to approve a script from an agency, with guidance. Francois said agencies did assist ahead of the final ad, but the script and ideas started inside the automaker.In the ad, Ford discusses freedom, heroes and people writing their own stories in life because there is no ""Owner's Manual,"" which is the title of the commercial.As Ford opined, several Jeep models can be seen driving and off-roading, including one that passes a Ford Bronco SUV — a newer competitor to the Jeep Wrangler SUV — while the actor talks about inspiring others.""I said 'yes' to doing this commercial because of the script. It's a very straightforward communication about life and ends with getting in a Jeep vehicle, that's the hook. It didn't require me to reintroduce myself, point to the fact that in my life I've been many things and known for specific projects or roles,"" Ford said in a statement. ""It's just a quiet talk from somebody sharing an idea. I love the way it developed.""The Wrangler passing the Bronco is one of two references to the Jeep rival. The other comes from the actor at the end of the ad: ""Choose what makes you happy. My friends, my family, my work make me happy. This Jeep makes me happy — even though my name is Ford. That's my owner's manual. Get out there, write your own.""The Jeep ad was shot over two days with Ford in Santa Clarita, California, in early December, according to Stellantis. Automotive has historically been one of the top segments for Super Bowl advertising. Even during the Great Recession in 2008 and 2009 when the industry was hit hard, several companies such as Toyota Motor, Hyundai Motor and Audi aired ads.Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale.""In the last years, there was plenty of automakers, all of them [touting] EVs, EVs that didn't even exist,"" Francois said. ""These guys are obviously running like headless chickens: EVs, EVs, EVs. I mean, that's where we all were.""Automakers regularly advertised during the NFL regular season and playoffs, including with sponsorships such as Toyota being the ""Official Automotive Partner of the NFL."" But none, other than Stellantis, advertised during Sunday's game.Both of Stellantis' Super Bowl ads this year featured electric vehicles, but they also included traditional vehicles with internal combustion engines as well as plug-in hybrid models such as the Jeep Wrangler.Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.""The moment had changed, and I was lucky enough to have the possibility to rewrite the scripts. To rewrite history, to say, to not run like a headless chicken,"" Francois said. ""I was able to improvise in the moment.""Stellantis declined to disclose how much money it spent on the production or broadcast of the ads, which were selling for up to $8 million for 30 seconds of air time during Super Bowl 59.But Francois said Elkann has told advertising and marketing leaders at Stellantis that ""Marketing is no longer a cost. It is an investment.""Correction: Jeep's Super Bowl ad was filmed in Santa Clarita, California. An earlier version of this article incorrectly identified the city.",CNBC,10/02/2025,"['DETROIT — A CEO\'s exit, electric vehicles making the industry run around like ""headless chickens"" and a company\'s U.S. revival all came together to make Ram and Jeep parent Stellantis the only automaker with a Super Bowl 59 commercial.', ""That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl."", 'Francois said Stellantis Chairman John Elkann, a scion of Italy\'s Fiat carmaker, called him after CEO Carlos Tavares\' abrupt departure in December and told him to advertise during the big game as a recommitment to the automaker\'s business in the U.S.""We were not set to make a commercial.', ""John Elkann called me in December, saying, you know, 'I want something."", 'I want to make a comeback.', 'We want to show, to express, that comeback story.', 'We want to show America how much it is important to the Stellantis group,\'"" Francois told CNBC.Stellantis, formerly known as Fiat Chrysler, has become well known under Francois for symbolic, nontraditional ads that feature iconic celebrities that tell a story beyond just attempting to sell new cars and trucks.', 'It started when the automaker was attempting to make a comeback from its 2009 bankruptcy.', ""It aired a surprise two-minute Super Bowl ad in 2011 featuring rapper Eminem and the city of Detroit — tying the company's revival to the Motor City's grit and rebirth."", 'The ad also featured a now discontinued Chrysler sedan called the 200.Francois said Elkann, who\'s leading the search for a new CEO, told him to recapture that kind of ""comeback"" spirit for the automaker, following years of cost cutting and lackluster sales in the U.S.Elkann, Francois said, also told him to think of the late Fiat Chrysler CEO Sergio Marchionne when creating the automaker\'s ads this year.', 'Marchionne, who died in 2018, was a supporter of Francois and past Super Bowl ads.', '""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose.', 'He used to say, \'Mediocrity is not worth the trip,\'"" Francois said. ""', ""So this year's Super Bowl creative execution and investment are very much the essence of the spirit."", '""Since Eminem, the company\'s Super Bowl ads have featured actors such as Clint Eastwood, Bill Murray and singer Bob Dylan, among others.', ""Those spots haven't necessarily prominently featured any specific vehicle, but they've discussed culturally relevant topics such as political divides and patriotism."", ""Stellantis' Ram Trucks ad this year was a more traditional, comedic Super Bowl commercial."", 'It starred ""Twisters"" and ""Top Gun: Maverick"" actor Glen Powell reimagining ""Goldilocks and the Three Bears"" with trucks.', 'But the automaker\'s two-minute Jeep ad starring featuring ""Star Wars"" and ""Indiana Jones"" actor Harrison Ford was a true return to form for Francois.', 'Francois said Ford turned down an initial pitch for a different ad.', ""That's when Francois said he and friend Edward Razek, a former marketing executive for Victoria's Secret owner L Brands who resigned amid controversy in 2019, wrote the first version of the ad that aired."", ""CMOs don't typically write scripts."", ""It's more common for those executives to approve a script from an agency, with guidance."", 'Francois said agencies did assist ahead of the final ad, but the script and ideas started inside the automaker.', 'In the ad, Ford discusses freedom, heroes and people writing their own stories in life because there is no ""Owner\'s Manual,"" which is the title of the commercial.', 'As Ford opined, several Jeep models can be seen driving and off-roading, including one that passes a Ford Bronco SUV — a newer competitor to the Jeep Wrangler SUV — while the actor talks about inspiring others.', '""I said \'yes\' to doing this commercial because of the script.', ""It's a very straightforward communication about life and ends with getting in a Jeep vehicle, that's the hook."", 'It didn\'t require me to reintroduce myself, point to the fact that in my life I\'ve been many things and known for specific projects or roles,"" Ford said in a statement. ""', ""It's just a quiet talk from somebody sharing an idea."", 'I love the way it developed.', '""The Wrangler passing the Bronco is one of two references to the Jeep rival.', 'The other comes from the actor at the end of the ad: ""Choose what makes you happy.', 'My friends, my family, my work make me happy.', 'This Jeep makes me happy — even though my name is Ford.', ""That's my owner's manual."", 'Get out there, write your own.', '""The Jeep ad was shot over two days with Ford in Santa Clarita, California, in early December, according to Stellantis.', 'Automotive has historically been one of the top segments for Super Bowl advertising.', 'Even during the Great Recession in 2008 and 2009 when the industry was hit hard, several companies such as Toyota Motor, Hyundai Motor and Audi aired ads.', ""Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale."", '""In the last years, there was plenty of automakers, all of them [touting] EVs, EVs that didn\'t even exist,"" Francois said. ""', 'These guys are obviously running like headless chickens: EVs, EVs, EVs.', ""I mean, that's where we all were."", '""Automakers regularly advertised during the NFL regular season and playoffs, including with sponsorships such as Toyota being the ""Official Automotive Partner of the NFL.""', ""But none, other than Stellantis, advertised during Sunday's game."", ""Both of Stellantis' Super Bowl ads this year featured electric vehicles, but they also included traditional vehicles with internal combustion engines as well as plug-in hybrid models such as the Jeep Wrangler."", 'Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.', '""The moment had changed, and I was lucky enough to have the possibility to rewrite the scripts.', 'To rewrite history, to say, to not run like a headless chicken,"" Francois said. ""', 'I was able to improvise in the moment.', '""Stellantis declined to disclose how much money it spent on the production or broadcast of the ads, which were selling for up to $8 million for 30 seconds of air time during Super Bowl 59.But Francois said Elkann has told advertising and marketing leaders at Stellantis that ""Marketing is no longer a cost.', 'It is an investment.', '""Correction: Jeep\'s Super Bowl ad was filmed in Santa Clarita, California.', 'An earlier version of this article incorrectly identified the city.']",0.2528008222416097,"""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose.","That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl.",0.4386920588357108,"Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.","Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale.",2025-02-15
CFPB’s new leadership begins staff purge with dozens of employees terminated,https://www.cnbc.com/2025/02/12/cfpb-staff-purge-begins-with-dozens-of-employees-terminated.html,2025-02-12T21:17:35+0000,"The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation.The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.The move comes amid a broader effort under President Donald Trump to trim federal staff. The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported. That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency. The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work. Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency's dismissal notice. ""It's almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce.""Hickman, who said she started in her CFPB role in June of 2023, said the agency's new leadership didn't follow established federal protocol for dismissing probationary employees. ""A lot of us are prepared to fight, and we are examining all our legal avenues,"" she said.The terminations have sowed more confusion at the bureau, as several of those being laid off had already accepted federal buyout offers, said one of the people.Some being dismissed received form letters that did not include their specific names and titles, but left some fields filled with generic placeholders, said this person.""Unfortunately, the Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not meet the Agency's current needs,"" the CFPB told some who were dismissed, according to people who received the notices.The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person. The agency had about 1,700 employees before the job cuts.The CFPB declined to comment.",CNBC,12/02/2025,"['The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation.', 'The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.', 'Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.', 'The move comes amid a broader effort under President Donald Trump to trim federal staff.', 'The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported.', 'That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.', ""CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency."", 'The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work.', 'Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency\'s dismissal notice. ""', ""It's almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce."", '""Hickman, who said she started in her CFPB role in June of 2023, said the agency\'s new leadership didn\'t follow established federal protocol for dismissing probationary employees. ""', 'A lot of us are prepared to fight, and we are examining all our legal avenues,"" she said.', 'The terminations have sowed more confusion at the bureau, as several of those being laid off had already accepted federal buyout offers, said one of the people.', 'Some being dismissed received form letters that did not include their specific names and titles, but left some fields filled with generic placeholders, said this person.', '""Unfortunately, the Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not meet the Agency\'s current needs,"" the CFPB toldsome who weredismissed, according topeoplewho received the notices.', ""The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person."", 'The agency had about 1,700 employees before the job cuts.', 'The CFPB declined to comment.']",-0.010750554288755,"CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency.","Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency's dismissal notice. """,-0.488809734582901,"The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person.",That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.,2025-02-15
Zelle payments top $1 trillion in 2024 as network's growth outpaces rivals including PayPal,https://www.cnbc.com/2025/02/12/zelle-payments-top-1-trillion-in-2024.html,2025-02-12T17:20:37+0000,"In this articleZelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.Last year's payment volumes were ""by far the most money ever moved by a P2P payments service in a single year,"" Denise Leonhard, general manager of Zelle, told CNBC.Zelle, which was launched in 2017 in response to fintech platforms such as Venmo, PayPal and CashApp, has some key advantages over those players. EWS is owned by seven of the biggest U.S. banks, including JPMorgan Chase, Bank of America and Wells Fargo, and Zelle allows for instant money transfers made within the apps of thousands of member institutions.Its growth rate last year exceeded that of PayPal, which reported that total P2P payments volumes reached more than $400 billion.Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement. The company has introduced measures to reduce fraud and has said that 99.95% of transactions are free of fraud and scams.Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.""People are using Zelle in order to do things like pay their rent or paying their nanny,"" Leonhard said. ""We want to continue to be top of mind for those consumers to be able to use this every day,"" Leonhard added.",CNBC,12/02/2025,"['In this articleZelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.', 'The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.', 'Last year\'s payment volumes were ""by far the most money ever moved by a P2P payments service in a single year,"" Denise Leonhard, general manager of Zelle, told CNBC.Zelle, which was launched in 2017 in response to fintech platforms such as Venmo, PayPal and CashApp, has some key advantages over those players.', 'EWS is owned by seven of the biggest U.S. banks, including JPMorgan Chase, Bank of America and Wells Fargo, and Zelle allows for instant money transfers made within the apps of thousands of member institutions.', 'Its growth rate last year exceeded that of PayPal, which reported that total P2P payments volumes reached more than $400 billion.', ""Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement."", 'The company has introduced measures to reduce fraud and has said that 99.95% of transactions are free of fraud and scams.', 'Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.', '""People are using Zelle in order to do things like pay their rent or paying their nanny,"" Leonhard said. ""', 'We want to continue to be top of mind for those consumers to be able to use this every day,"" Leonhard added.']",0.0115935725103827,"Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.",Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement.,0.9824706486293248,"The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.",,2025-02-15
"U.S. investors, Big Pharma race to find new medicines in China",https://www.cnbc.com/2025/02/13/china-biopharma-deals-rise-with-summit-merck.html,2025-02-13T13:45:01+0000,"A little-known biotech company stunned the biopharmaceutical industry last spring when it declared an ""unprecedented"" achievement: its experimental cancer drug looked more effective than Merck's Keytruda in a clinical trial. The company, Summit Therapeutics, licensed the drug from Chinese company Akeso Inc. In October, a group of life science investors announced they were putting $400 million into creating a company called Kailera Therapeutics that would develop experimental obesity drugs it bought from Chinese company Jiangsu Hengrui Pharmaceuticals.Then in a matter of days in December, Merck disclosed it would license a potential competitor to Summit's drug and a separate experimental obesity pill – both from Chinese companies. Suddenly, U.S. companies are racing to find medicines in China. Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma. ""That's stunning to me,"" said Chen Yu, founder and managing partner at crossover fund TCGX. ""That's stunning."" Yu said 20 years ago, few biopharma companies were interested in China because they considered it a small market. His former firm, Vivo Capital, pioneered the concept of bringing U.S. medicines to the Chinese market.Today, the movement is going in the opposite direction. He never imagined the proliferation that's taking place now. Investors and industry insiders offer a few reasons for the trend: Chinese companies are creating better molecules than ever before – and more of them. They can start testing those compounds in humans sooner and at a lower price than in the U.S. Buyers have figured out a business model to essentially import the drugs through licensing deals. Venture funding in China has also dried up, forcing biotech companies to do deals. One thing all of those people in the industry agree on? This trend isn't going away.What's less clear is what the development means for the U.S. biotech sector. Some people contend it's terrible for American startups if large pharmaceutical companies can find a promising drug in China for a fraction of the price. Others argue competition makes everyone better, and American companies will ultimately reap the rewards of bringing medicines to the market. Either way, the influx could reshape the landscape of the U.S. biopharma industry. ""It's kind of a watershed moment where the pharma industry is like, 'We don't really need to buy U.S. biotechs necessarily,'"" said Tim Opler, a managing director in Stifel's global health-care group. ""We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies."" Bain Capital Life Sciences started making China a priority around 2018, said Adam Koppel, a partner at the fund. The private equity firm saw the Chinese government and the life sciences industry making a deliberate effort to evolve from its historical focus on copycat and fast-follower drugs that mimicked leading drugs to creating new chemical matter that China could export to the rest of the world. Since then, Bain has struck six biopharma deals in China. It bought an experimental asthma drug from Hengrui in 2023 and co-launched a company called Aiolos with a $245 million series A funding round. GSK acquired the company three months later for up to $1.4 billion. Koppel sees more large pharmaceutical companies growing comfortable with drugs coming out of China as they work with more of them and see their outcomes, he said. Buyers had held back in part because they worried data from China wasn't representative of a global population and U.S. regulators wouldn't accept it. ""As they're seeing assets then come out, they're seeing things that are having success, and eventually, as things get approved and used on the market, I think that that concern will become lessened,"" he said. That narrative was on display when Summit Therapeutics last year said its experimental cancer drug beat Merck's mega-blockbuster Keytruda in a head-to-head study, a feat no other drug has accomplished. Summit's trial was conducted exclusively in China, making people question if the results would hold up elsewhere. When Summit's leaders were shopping for a drug they could develop, they made it a point to look in China because co-CEO Bob Duggan had read more new medicines were coming from the country. But it was late 2022, and the U.S. Food and Drug Administration had just rejected a few applications for drugs that were studied only in China, including one from Eli Lilly.When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh.""And suddenly after us, a lot of people opened their eyes,"" she said.Ivonescimab had already undergone early studies and was in late-stage trials in China when Summit struck the licensing deal. Summit is now running three global phase 3 trials to satisfy the FDA's desire for drugs to be studied in diverse groups of people. Summit's strategy could become more common. Investors and other industry insiders said one of the draws about doing deals with Chinese biotech companies is they can find molecules that have already undergone early studies at a lower price than in the U.S. So the U.S. businesses know what they're getting, and they can probably get it for less.  Gilead spends a lot of time in China looking for assets like it does in the U.S. and Europe, the company's chief financial officer, Andrew Dickinson, told CNBC. Gilead has seen a ""substantial shift"" in the quality and quantity of assets being developed in China and being offered to U.S. biopharma companies.""The transformation over the last five years is real and impressive,"" Dickinson said. It helps that more Chinese companies need to do deals now. The amount of venture funds raised by the Chinese biotech industry cratered to just $1 billion last year from a peak of $6.3 billion in 2021, according to data provided by TCGX's Yu. ""Why would we do any early-stage development in the U.S. anymore?"" Yu said. ""Why wouldn't we just get clinical proof of concept in China and then bring it over to the U.S. for the expensive clinical development when we actually know the drug works? And I think that could be a very revolutionary new way for our industry to become more efficient.""That's an opportunity – or risk – for the U.S. biopharma industry, depending on who you ask. Some, like Yu, see it as a way to bring down the price of prescription drugs. Others worry it could hobble U.S. companies if Merck and other large pharmaceutical companies pass on acquiring American startups in favor of licensing assets from China.The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%. Viking is seen as an acquisition target since it's developing drugs in the red-hot obesity space, and suddenly it looked like one possible suitor had chosen to spend its money elsewhere. People see parallels to what happened in the artificial intelligence space when China's DeepSeek declared it had created a model that was just as good as U.S. models for much less than American companies are spending. President Donald Trump or U.S. policymakers could see the similar trend in biotech as a threat and intervene to stop these deals, what Yu calls the ""stroke of a pen"" risk. Lawmakers last year floated the Biosecure Act that would have restricted U.S. companies from working with Chinese contract manufacturers. Washington has already embraced protectionist policies in other competitive areas like artificial intelligence and semiconductors. It's possible that could extend to life sciences. ""The deeper message from DeepSeek is that we have competition in the high sciences in general, and moreover that China is making major investments to develop scientific assets,"" said Stifel's Opler.Put another way: the race in biopharma is on.",CNBC,13/02/2025,"['A little-known biotech company stunned the biopharmaceutical industry last spring when it declared an ""unprecedented"" achievement: its experimental cancer drug looked more effective than Merck\'s Keytruda in a clinical trial.', 'The company, Summit Therapeutics, licensed the drug from Chinese company Akeso Inc.In October, a group of life science investors announced they were putting $400 million into creating a company called Kailera Therapeutics that would develop experimental obesity drugs it bought from Chinese company Jiangsu Hengrui Pharmaceuticals.', ""Then in a matter of days in December, Merck disclosed it would license a potential competitor to Summit's drug and a separate experimental obesity pill – both from Chinese companies."", 'Suddenly, U.S. companies are racing to find medicines in China.', 'Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma.', '""That\'s stunning to me,"" said Chen Yu, founder and managing partner at crossover fund TCGX. ""', ""That's stunning."", '""Yu said 20 years ago, few biopharma companies were interested in China because they considered it a small market.', 'His former firm, Vivo Capital, pioneered the concept of bringing U.S. medicines to the Chinese market.', 'Today, the movement is going in the opposite direction.', ""He never imagined the proliferation that's taking place now."", 'Investors and industry insiders offer a few reasons for the trend: Chinese companies are creating better molecules than ever before – and more of them.', 'They can start testing those compounds in humans sooner and at a lower price than in the U.S. Buyers have figured out a business model to essentially import the drugs through licensing deals.', 'Venture funding in China has also dried up, forcing biotech companies to do deals.', 'One thing all of those people in the industry agree on?', ""This trend isn't going away."", ""What's less clear is what the development means for the U.S. biotech sector."", ""Some people contend it's terrible for American startups if large pharmaceutical companies can find a promising drug in China for a fraction of the price."", 'Others argue competition makes everyone better, and American companies will ultimately reap the rewards of bringing medicines to the market.', 'Either way, the influx could reshape the landscape of the U.S. biopharma industry.', '""It\'s kind of a watershed moment where the pharma industry is like, \'We don\'t really need to buy U.S. biotechs necessarily,\'"" said Tim Opler, a managing director in Stifel\'s global health-care group. ""', 'We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies.', '""Bain Capital Life Sciences started making China a priority around 2018, said Adam Koppel, a partner at the fund.', 'The private equity firm saw the Chinese government and the life sciences industry making a deliberate effort to evolve from its historical focus on copycat and fast-follower drugs that mimicked leading drugs to creating new chemical matter that China could export to the rest of the world.', 'Since then, Bain has struck six biopharma deals in China.', 'It bought an experimental asthma drug from Hengrui in 2023 and co-launched a company called Aiolos with a $245 million series A funding round.', 'GSK acquired the company three months later for up to $1.4 billion.', 'Koppel sees more large pharmaceutical companies growing comfortable with drugs coming out of China as they work with more of them and see their outcomes, he said.', ""Buyers had held back in part because they worried data from China wasn't representative of a global population and U.S. regulators wouldn't accept it."", '""As they\'re seeing assets then come out, they\'re seeing things that are having success, and eventually, as things get approved and used on the market, I think that that concern will become lessened,"" he said.', ""That narrative was on display when Summit Therapeutics last year said its experimental cancer drug beat Merck's mega-blockbuster Keytruda in a head-to-head study, a feat no other drug has accomplished."", ""Summit's trial was conducted exclusively in China, making people question if the results would hold up elsewhere."", ""When Summit's leaders were shopping for a drug they could develop, they made it a point to look in China because co-CEO Bob Duggan had read more new medicines were coming from the country."", 'But it was late 2022, and the U.S. Food and Drug Administration had just rejected a few applications for drugs that were studied only in China, including one from Eli Lilly.', ""When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh."", '""And suddenly after us, a lot of people opened their eyes,"" she said.', 'Ivonescimab had already undergone early studies and was in late-stage trials in China when Summit struck the licensing deal.', ""Summit is now running three global phase 3 trials to satisfy the FDA's desire for drugs to be studied in diverse groups of people."", ""Summit's strategy could become more common."", ""Investors and other industry insiders said one of the draws about doing deals with Chinese biotech companies is they can find molecules that have already undergone early studies at a lower price than in the U.S. So the U.S. businesses know what they're getting, and they can probably get it for less."", ""Gilead spends a lot of time in China looking for assets like it does in the U.S. and Europe, the company's chief financial officer, Andrew Dickinson, told CNBC."", 'Gilead has seen a ""substantial shift"" in the quality and quantity of assets being developed in China and being offered to U.S. biopharma companies.', '""The transformation over the last five years is real and impressive,"" Dickinson said.', 'It helps that more Chinese companies need to do deals now.', ""The amount of venture funds raised by the Chinese biotech industry cratered to just $1 billion last year from a peak of $6.3 billion in 2021, according to data provided by TCGX's Yu."", '""Why would we do any early-stage development in the U.S. anymore?""', 'Yu said. ""', ""Why wouldn't we just get clinical proof of concept in China and then bring it over to the U.S. for the expensive clinical development when we actually know the drug works?"", 'And I think that could be a very revolutionary new way for our industry to become more efficient.', '""That\'s an opportunity – or risk – for the U.S. biopharma industry, depending on who you ask.', 'Some, like Yu, see it as a way to bring down the price of prescription drugs.', 'Others worry it could hobble U.S. companies if Merck and other large pharmaceutical companies pass on acquiring American startups in favor of licensing assets from China.', ""The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%."", ""Viking is seen as an acquisition target since it's developing drugs in the red-hot obesity space, and suddenly it looked like one possible suitor had chosen to spend its money elsewhere."", ""People see parallels to what happened in the artificial intelligence space when China's DeepSeek declared it had created a model that was just as good as U.S. models for much less than American companies are spending."", 'President Donald Trump or U.S. policymakers could see the similar trend in biotech as a threat and intervene to stop these deals, what Yu calls the ""stroke of a pen"" risk.', 'Lawmakers last year floated the Biosecure Act that would have restricted U.S. companies from working with Chinese contract manufacturers.', 'Washington has already embraced protectionist policies in other competitive areas like artificial intelligence and semiconductors.', ""It's possible that could extend to life sciences."", '""The deeper message from DeepSeek is that we have competition in the high sciences in general, and moreover that China is making major investments to develop scientific assets,"" said Stifel\'s Opler.', 'Put another way: the race in biopharma is on.']",0.1501168131928939,"We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies.","When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh.",0.3858429810096477,"Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma.","The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%.",2025-02-15
"McDonald's revenue disappoints, as U.S. sales see worst drop since pandemic",https://www.cnbc.com/2025/02/10/mcdonalds-mcd-q4-2024-earnings.html,2025-02-10T21:25:20+0000,"In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.But shares of the company rose nearly 5% as executives predicted sales would improve in 2025.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company's overall same-store sales growth of 0.4% outperformed Wall Street's expectations of same-store sales declines of 1%, according to StreetAccount estimates.But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company's domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.McDonald's said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald's U.S. same-store sales tick up in the third quarter.However, analysts have warned that value meals only work if customers also add menu items that aren't discounted to their orders. McDonald's executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.The biggest hit to McDonald's U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald's switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.However, in the days following the news of the outbreak, traffic at McDonald's U.S. restaurants fell steeply, particularly in the states affected.U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.McDonald's expects its U.S. sales to recover by the beginning of the second quarter, executives said.""I think right now what we're seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,"" CEO Chris Kempczinski said on the company's conference call. ""So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.Outside the U.S., sales were stronger. Both of McDonald's international divisions reported same-store sales increases, bolstering the company's overall performance.The company's international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.McDonald's international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.McDonald's reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald's earned $2.83 per share.Looking to 2025, the first quarter is expected to be the low point for McDonald's same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.For the full year, McDonald's plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company's international developmental licensed markets, including about 1,000 new restaurants in China.Including its investments in restaurant openings, McDonald's plans to spend between $3 billion and $3.2 billion this year on capital expenditures.The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.",CNBC,10/02/2025,"[""In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter."", ""But shares of the company rose nearly 5% as executives predicted sales would improve in 2025.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Net sales of $6.39 billion were roughly flat compared with the year-ago period."", ""The company's overall same-store sales growth of 0.4% outperformed Wall Street's expectations of same-store sales declines of 1%, according to StreetAccount estimates."", ""But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales."", ""Same-store sales at the company's domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.McDonald's said traffic was slightly positive, but customers spent less than usual during the quarter."", 'Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales.', ""The strategy worked, helping McDonald's U.S. same-store sales tick up in the third quarter."", ""However, analysts have warned that value meals only work if customers also add menu items that aren't discounted to their orders."", ""McDonald's executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.The biggest hit to McDonald's U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers."", ""McDonald's switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak."", 'In early December, the CDC declared the outbreak officially over.', ""However, in the days following the news of the outbreak, traffic at McDonald's U.S. restaurants fell steeply, particularly in the states affected."", 'U.S. sales hit their nadir in early November, but began rising again after that.', 'In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.', ""McDonald's expects its U.S. sales to recover by the beginning of the second quarter, executives said."", '""I think right now what we\'re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,"" CEO Chris Kempczinski said on the company\'s conference call. ""', 'So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.', '""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year.', 'In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.', 'Outside the U.S., sales were stronger.', ""Both of McDonald's international divisions reported same-store sales increases, bolstering the company's overall performance."", ""The company's international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.McDonald's international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%."", 'The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter.', 'One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.', ""McDonald's reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier."", ""Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald's earned $2.83 per share."", ""Looking to 2025, the first quarter is expected to be the low point for McDonald's same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors."", 'Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.', ""For the full year, McDonald's plans to open roughly 2,200 restaurants."", 'About a quarter of those locations will be in the U.S. and its international operated markets.', ""The rest will be in the company's international developmental licensed markets, including about 1,000 new restaurants in China."", ""Including its investments in restaurant openings, McDonald's plans to spend between $3 billion and $3.2 billion this year on capital expenditures."", 'The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.']",0.0983895484675885,"""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year.","In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.",0.0441114202789638,"Outside the U.S., sales were stronger.",But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales.,2025-02-15
Super Bowl 59 attracts record 127.7 million viewers,https://www.cnbc.com/2025/02/11/super-bowl-59-viewership.html,2025-02-12T14:36:50+0000,"In this articleThe Philadelphia Eagles weren't the only ones that scored big at the Super Bowl.The National Football League's championship game attracted a record 127.7 million viewers on Sunday, according to Nielsen Media Research.The supersized live audience was of most importance to the advertisers that shelled out big bucks to have their brands featured during the Super Bowl. It is rare that programming on live TV attracts such a big audience in one sitting, making the hefty price tag worth it, advertising industry executives recently told CNBC.The cost of advertising during the Super Bowl rises each year, especially as the cable bundle loses more and more customers and must-watch programming revolves around sports and other live events. This year, some brands spent up to $8 million for a spot during the game.Sunday's Super Bowl aired on Fox Corporation's broadcast network, as well as its Spanish-language cable network Fox Deportes and NBCUniversal's Telemundo. Fox also offered the Super Bowl on its free, ad-supported streamer Tubi, and it was also available on the NFL's digital properties.Fox said Wednesday that the Super Bowl on its broadcast network and Tubi generated more than $800 million in gross revenue from advertising sales across all platforms. The 2024 Super Bowl brought in estimated ad revenue of about $550 million for in-game placements, according to GroupM, WPP's media investment group.""The clear winners Sunday night were the Eagles, the NFL, and FOX. Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,"" said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.Last year, the Super Bowl had locked down another viewership record at the time, when more than 123 million tuned into Paramount Global's CBS broadcast network, TelevisaUnivision network and other streaming options such as Paramount+.Fox also reported that the Super Bowl broke another record when it came to streaming. The game on Tubi, Telemundo and the NFL's digital offerings garnered 14.5 million viewers, while Tubi alone had 13.6 million viewers, according to Tubi first-party data and Adobe Analytics. This was the first time the Super Bowl was available on the app.The Super Bowl's viewership peaked at an audience of 137.7 million from 8 p.m. to 8:15 p.m. ET, during the second quarter, according to Nielsen.Anticipation for the game helped boost viewership, too. Fox's pregame coverage averaged 23.4 million viewers between 1 p.m. and kickoff.The Eagles ran away with the game against the Kansas City Chiefs, with a final score of 40-22. While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported.The Spanish language networks Fox Deportes and Telemundo had an average audience of 1.87 million combined viewers, according to Fox. This was the first time the Super Bowl was offered on both a cable network and broadcaster in Spanish. The league has been pushing to expand its audience, with a key part of its strategy being Hispanic viewership.Disclosure: Comcast owns CNBC parent company NBCUniversal. Correction: The headline on this story has been updated to correct that it was Super Bowl 59.",CNBC,12/02/2025,"[""In this articleThe Philadelphia Eagles weren't the only ones that scored big at the Super Bowl."", ""The National Football League's championship game attracted a record 127.7 million viewers on Sunday, according to Nielsen Media Research."", 'The supersized live audience was of most importance to the advertisers that shelled out big bucks to have their brands featured during the Super Bowl.', 'It is rare that programming on live TV attracts such a big audience in one sitting, making the hefty price tag worth it, advertising industry executives recently told CNBC.The cost of advertising during the Super Bowl rises each year, especially as the cable bundle loses more and more customers and must-watch programming revolves around sports and other live events.', 'This year, some brands spent up to $8 million for a spot during the game.', ""Sunday's Super Bowl aired on Fox Corporation's broadcast network, as well as its Spanish-language cable network Fox Deportes and NBCUniversal's Telemundo."", ""Fox also offered the Super Bowl on its free, ad-supported streamer Tubi, and it was also available on the NFL's digital properties."", 'Fox said Wednesday that the Super Bowl on its broadcast network and Tubi generated more than $800 million in gross revenue from advertising sales across all platforms.', ""The 2024 Super Bowl brought in estimated ad revenue of about $550 million for in-game placements, according to GroupM,WPP's media investment group."", '""The clear winners Sunday night were the Eagles, the NFL, and FOX.Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,""said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.', ""Last year, the Super Bowl had locked down another viewership record at the time, when more than 123 million tuned into Paramount Global's CBS broadcast network, TelevisaUnivision network and other streaming options such as Paramount+.Fox also reported that the Super Bowl broke another record when it came to streaming."", ""The game on Tubi, Telemundo and the NFL's digital offerings garnered 14.5 million viewers, while Tubi alone had 13.6 million viewers, according to Tubi first-party data and Adobe Analytics."", 'This was the first time the Super Bowl was available on the app.', ""The Super Bowl's viewership peaked at an audience of 137.7 million from 8 p.m. to 8:15 p.m. ET, during the second quarter, according to Nielsen."", 'Anticipation for the game helped boost viewership, too.', ""Fox's pregame coverage averaged 23.4 million viewers between 1 p.m. and kickoff."", 'The Eagles ran away with the game against the Kansas City Chiefs, with a final score of 40-22.', 'While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.', ""The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported."", 'The Spanish language networks Fox Deportes and Telemundo had an average audience of 1.87 million combined viewers, according to Fox.', 'This was the first time the Super Bowl was offered on both a cable network and broadcaster in Spanish.', 'The league has been pushing to expand its audience, with a key part of its strategy being Hispanic viewership.', 'Disclosure: Comcast owns CNBC parent company NBCUniversal.', 'Correction: The headline on this story has been updated to correct that it was Super Bowl 59.']",0.4216337387588909,"""The clear winners Sunday night were the Eagles, the NFL, and FOX.Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,""said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.",,0.5203825235366821,"The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported.","While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.",2025-02-15
Moderna beats on revenue but loses more than expected as it scales down manufacturing,https://www.cnbc.com/2025/02/14/moderna-mrna-q4-earnings-2024.html,2025-02-14T17:10:35+0000,"In this articleModerna on Friday posted fourth-quarter revenue that beat estimates, but lost more than expected for the period, as the biotech company continues to slash costs and demand for its Covid vaccine falls. It marks another quarter of growing pains for the company, which is racing to launch new products and recover from the rapid decline of its once-booming Covid business. Shares of Moderna climbed more than 3% on Friday. Moderna posted a net loss of $1.12 billion, or $2.91 per share, for the fourth quarter of 2024. That compares with net income of $217 million, or 55 cents per share, reported for the year-ago period.The company said the quarterly loss includes a roughly $238 million noncash charge related to ending a contract manufacturing agreement.In an interview, Moderna Chief Financial Officer Jamey Mock said one of the most important takeaways from the company's full-year 2024 results is that it reduced costs by 27% compared to 2023. By the end of 2025, Moderna expects to cut costs by $1 billion compared to 2024.Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year. Moderna expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter. The company slashed its 2025 sales guidance by roughly $1 billion in January, causing its shares to plummet. The stock is now down more than 20% for the year. At the time, Moderna pointed to increased competition in the Covid market, falling vaccination rates, timing around manufacturing contracts with a handful of countries and uncertainty around what advisors to the Centers for Disease Control and Prevention would recommend for revaccination of respiratory syncytial virus shots. ""Should those potential headwinds all hit, that's what would bring us to the low end of our guidance,"" Mock told CNBC, adding that the company is hoping to ""combat"" the challenges.Here's what Moderna reported for the fourth quarter that ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Moderna posted fourth-quarter sales of $966 million, less than half of the $2.8 billion it recorded during the same period a year ago. The vast majority of that total came from its Covid shot, which raked in $923 million, down 66% from the prior year. That includes $244 million in U.S. sales and $679 million from international markets. Analysts had expected the jab to pull in $909 million in sales for the quarter, according to estimates compiled by StreetAccount. Moderna said the decrease was mainly due to the earlier launch of the newest iteration of its Covid shot last year, which shifted sales into the third quarter. The U.S. Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing Moderna to ""meet demand more effectively ahead of the fourth quarter,"" the company added. Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna. The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May. It is Moderna's second approved product after its Covid vaccine. Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates. Moderna's RSV shot is so far approved for adults age 60 and above in the U.S., European Union, Canada, Norway, Iceland and Qatar, among other countries. The company is betting on a pipeline built around its messenger RNA platform, which is the technology used in both of those products. Moderna plans to beef up its portfolio with 10 new product approvals over the next three years. During the fourth quarter, Moderna submitted three mRNA products for regulatory approval, including its ""next-generation"" Covid shot, combination shot targeting Covid and the flu and RSV vaccine for high-risk adults ages 18 to 59. Moderna expects a decision from the FDA on the next-generation Covid shot in May, and a potential expanded approval for the RSV shot in June, according to Mock.Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products. Some of those products will have data readouts later this year, Mock noted.Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago. That includes $193 million in write-downs of unused doses of the Covid vaccine, among other costs. Research and development expenses dropped 20% to $1.1 billion compared with the same period in 2023. Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu and combination shot programs, and partially offset by increased spending on other new experimental products. Meanwhile, selling, general and administrative expenses for the period fell 25% to $351 million compared with the fourth quarter of 2023. SG&A expenses usually include the costs of promoting, selling and delivering a company's products and services.",CNBC,14/02/2025,"['In this articleModerna on Friday posted fourth-quarter revenue that beat estimates, but lost more than expected for the period, as the biotech company continues to slash costs and demand for its Covid vaccine falls.', 'It marks another quarter of growing pains for the company, which is racing to launch new products and recover from the rapid decline of its once-booming Covid business.', 'Shares of Moderna climbed more than 3% on Friday.', 'Moderna posted a net loss of $1.12 billion, or $2.91 per share, for the fourth quarter of 2024.', 'That compares with net income of $217 million, or 55 cents per share, reported for the year-ago period.', 'The company said the quarterly loss includes a roughly $238 million noncash charge related to ending a contract manufacturing agreement.', ""In an interview, Moderna Chief Financial Officer Jamey Mock said one of the most important takeaways from the company's full-year 2024 results is that it reduced costs by 27% compared to 2023."", 'By the end of 2025, Moderna expects to cut costs by $1 billion compared to 2024.Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year.', 'Moderna expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter.', 'The company slashed its 2025 sales guidance by roughly $1 billion in January, causing its shares to plummet.', 'The stock is now down more than 20% for the year.', 'At the time, Moderna pointed to increased competition in the Covid market, falling vaccination rates, timing around manufacturing contracts with a handful of countries and uncertainty around what advisors to the Centers for Disease Control and Prevention would recommend for revaccination of respiratory syncytial virus shots.', '""Should those potential headwinds all hit, that\'s what would bring us to the low end of our guidance,"" Mock told CNBC, adding that the company is hoping to ""combat"" the challenges.', ""Here's what Moderna reported for the fourth quarter that ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Moderna posted fourth-quarter sales of $966 million, less than half of the $2.8 billion it recorded during the same period a year ago."", 'The vast majority of that total came from its Covid shot, which raked in $923 million, down 66% from the prior year.', 'That includes $244 million in U.S. sales and $679 million from international markets.', 'Analysts had expected the jab to pull in $909 million in sales for the quarter, according to estimates compiled by StreetAccount.', 'Moderna said the decrease was mainly due to the earlier launch of the newest iteration of its Covid shot last year, which shifted sales into the third quarter.', 'The U.S. Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing Moderna to ""meet demand more effectively ahead of the fourth quarter,"" the company added.', 'Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna.', ""The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May."", ""It is Moderna's second approved product after its Covid vaccine."", 'Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates.', ""Moderna's RSV shot is so far approved for adults age 60 and above in the U.S., European Union, Canada, Norway, Iceland and Qatar, among other countries."", 'The company is betting on a pipeline built around its messenger RNA platform, which is the technology used in both of those products.', 'Moderna plans to beef up its portfolio with 10 new product approvals over the next three years.', 'During the fourth quarter, Moderna submitted three mRNA products for regulatory approval, including its ""next-generation"" Covid shot, combination shot targeting Covid and the flu and RSV vaccine for high-risk adults ages 18 to 59.Moderna expects a decision from the FDA on the next-generation Covid shot in May, and a potential expanded approval for the RSV shot in June, according to Mock.', 'Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products.', 'Some of those products will have data readouts later this year, Mock noted.', 'Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago.', 'That includes $193 million in write-downs of unused doses of the Covid vaccine, among other costs.', 'Research and development expenses dropped 20% to $1.1 billion compared with the same period in 2023.', 'Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu and combination shot programs, and partially offset by increased spending on other new experimental products.', 'Meanwhile, selling, general and administrative expenses for the period fell 25% to $351 million compared with the fourth quarter of 2023.', ""SG&A expenses usually include the costs of promoting, selling and delivering a company's products and services.""]",0.0104063483858514,"The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May.","Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products.",-0.0251545102699943,Shares of Moderna climbed more than 3% on Friday.,"Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna.",2025-02-15
Coca-Cola sales easily top estimates as global demand rises,https://www.cnbc.com/2025/02/11/coca-cola-ko-q4-2024-earnings.html,2025-02-11T21:36:12+0000,"In this articleCoca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations, as global demand for its drinks rose.Shares of the company climbed nearly 5% for the day.Here's what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier.Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.Net sales rose 6% to $11.54 billion.Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices. Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation. The rest came from price hikes and ""favorable mix,"" meaning that customers bought products that were more expensive.While most of Coke's organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo.Coke's unit case volume grew 2%, reversing last quarter's decline. The metric strips out the impact of pricing and foreign currency to reflect demand. The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter. Trademark Coca-Cola and Fairlife remain leaders in at home retail sales growth,"" Coke CEO James Quincey said on the company's conference call.The company's sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter. Coke Zero Sugar's volume climbed 13% during the period.Coke's water, sports, coffee and tea division reported 2% volume growth. Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.Coke's juice, value-added dairy and plant-based beverages division saw volume shrink 1%. The company said declines in Europe, the Middle East and Africa offset growth in North America.Looking to 2025, Coke projects organic revenue will grow 5% to 6%. The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.""It seems more likely in '25, there'll be a little more price and a little less volume, but there will be volume growth,"" Quincey told analysts.Coke could also face some rising costs in 2025. For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said. ""For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.""",CNBC,11/02/2025,"[""In this articleCoca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations, as global demand for its drinks rose."", 'Shares of the company climbed nearly 5% for the day.', ""Here's what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier."", 'Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.', 'Net sales rose 6% to $11.54 billion.', 'Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices.', ""Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation."", 'The rest came from price hikes and ""favorable mix,"" meaning that customers bought products that were more expensive.', ""While most of Coke's organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo."", ""Coke's unit case volume grew 2%, reversing last quarter's decline."", 'The metric strips out the impact of pricing and foreign currency to reflect demand.', 'The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter.', 'Trademark Coca-Cola and Fairlife remain leaders in at home retail sales growth,"" Coke CEO James Quincey said on the company\'s conference call.', ""The company's sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter."", ""Coke Zero Sugar's volume climbed 13% during the period."", ""Coke's water, sports, coffee and tea division reported 2% volume growth."", 'Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.', ""Coke's juice, value-added dairy and plant-based beverages division saw volume shrink 1%."", 'The company said declines in Europe, the Middle East and Africa offset growth in North America.', 'Looking to 2025, Coke projects organic revenue will grow 5% to 6%.', 'The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.', '""It seems more likely in \'25, there\'ll be a little more price and a little less volume, but there will be volume growth,"" Quincey told analysts.', 'Coke could also face some rising costs in 2025.', 'For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.', '""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said. ""', 'For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.""']",0.2105670486122989,"The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter.",,0.5848126022712045,"Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation.","Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.",2025-02-15
CVS shares are up 45% this year — here's why it may be starting to turn its business around,https://www.cnbc.com/2025/02/13/cvs-health-may-be-on-track-to-turn-its-struggling-business-around-.html,2025-02-13T20:06:06+0000,"In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around. Some investors seem convinced, especially after the retail drugstore chain on Wednesday posted a big beat on fourth-quarter earnings and a 2025 profit outlook that was in line with expectations. Shares of CVS are now up more than 45% for the year, unlike the company's main retail pharmacy rival Walgreens, whose stock is up nearly 3%. Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.The upbeat quarterly results may be a sign that brighter days are ahead for the CVS – or at least that things may not be as bad as they were last year. The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due to higher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure.CVS isn't out of the woods yet. Medical costs were less severe during the fourth quarter but will likely remain elevated in 2025, as more seniors flock to hospitals and doctor's offices and use more health-care benefits. But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share. CVS has pursued store closures and other cost cuts, and its new CEO David Joyner has spent much of his first 100 days at the helm focusing on the company's insurance unit Aetna. ""The pieces are in place for [CVS to return] from what has been a bottoming of operations performance,"" said Leerink Partners analyst Michael Cherny, who upgraded the stock on Wednesday after the results. Cantor Fitzgerald analysts on Wednesday also upgraded CVS' stock, citing ""increased confidence in a successful turnaround."" CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision. The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year. In a research note, Cantor Fitzgerald analysts said they are ""incrementally more confident"" that CVS will improve margins in its Medicare Advantage business and return to ""normal levels"" by 2027. CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin. They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers. But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries. To improve margins, the company plans to shrink Medicare Advantage membership by a ""high single-digit percentage"" from the end of 2024, executives said on Wednesday. Aetna had 4.4 million Medicare Advantage members as of December, up from 3.5 million the year before, according to the company's fourth-quarter release.Overall, CVS executives said they expect to decrease insurance members by more than 1 million this year, including 800,000 in the individual market. Patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.Aetna also scored better Medicare Advantage star ratings for the 2025 payment year, which should boost its federal payments in 2026. Those crucial ratings help patients compare the quality of Medicare health and drug plans and determine how much an insurer receives in bonus payments from the Centers for Medicare & Medicaid Services.On the earnings call, Joyner said the company is pushing for higher payment rates from the government for Medicare Advantage. He said the proposed rates for 2026 don't account for higher medical costs over the last year. The Biden administration in January proposed to increase Medicare Advantage reimbursement rates by 2.2% in 2026, up from the 0.2% drop in rates for this year. But Cantor analysts also said they expect the Medicare Advantage reimbursement rate could rise, projecting a finalized increase of 2% to 2.8%.""We're assuming an improving rate environment … maintaining STARS ratings, and [medical] costs trends that do not exceed 2024 levels,"" the analysts wrote. It is difficult to predict what medical costs trends across the insurance industry will look like in 2025. But higher medical costs are baked into CVS's full-year guidance this time around. The outlook assumes that the trends the company saw in 2024 will carry over into this year despite more favorable medical costs for the company in the fourth quarter, said Tanquilut. ""The early reads for '25 or at least late '24 is that it's starting to get better. But they did not assume that improvement in the 2025 guidance,"" Tanquilut told CNBC. ""So it sounds like there's upside to their numbers for 2025. The company last year also said it would make significant changes to its Medicare Advantage plans for 2025, such as increasing copays and premiums and cutting back certain health benefits. That will eliminate the expenses tied to those benefits and drive away patients who need or want to use them.Other insurers such as Humana, the second largest Medicare Advantage insurer, are similarly culling their plan offerings for 2025 to reduce lower-profit membership. Humana is dropping a staggering 550,000 Medicare Advantage customers in less profitable markets. But the company has said that people who lose access to their existing plans will likely have another Humana Medicare Advantage plan option.Shares of CVS are outperforming most of its health-care rivals, both on the insurance and retail pharmacy sides. Jefferies analyst Brian Tanquilut said that is likely due to CVS' unique position as a company that owns a health insurer, a retail drugstore chain and a pharmacy benefit manager, or PBM, called Caremark.""I think what they're starting to show is the real synergy...in owning all three assets,"" Tanquilut said. PBMs such as Caremark sit at the center of the drug supply chain in the U.S., negotiating drug rebates with manufacturers on behalf of insurers, creating lists of preferred medications covered by health plans and reimbursing pharmacies for prescriptions. That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses.For example, Caremark in some cases directs drug prescriptions to CVS retail pharmacies. That has helped the company's drugstores gain meaningful prescription market share over its chief rival, Walgreens, which has been struggling to operate as a largely standalone pharmacy business, Tanquilut said. Other insurers, such as Cigna and UnitedHealth Group, also own PBMs. But the fact that CVS has a retail pharmacy ""just pulls it all together and differentiates it from the others,"" Tanquilut added. That doesn't necessarily mean that other insurers are underperforming. Tanquilut said UnitedHealthcare, the insurance arm of UnitedHealth Group, is still ""best in class"" in the industry. Other insurance companies have their own hurdles apart from higher medical costs, such as Humana seeing a drop in its Medicare Advantage star ratings for the year. But CVS' story has been much more complicated than other insurers given its business model, and the company could now be reaching a point where ""all three of its business segments are clicking,"" said Tanquilut.",CNBC,13/02/2025,"['In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around.', 'Some investors seem convinced, especially after the retail drugstore chain on Wednesday posted a big beat on fourth-quarter earnings and a 2025 profit outlook that was in line with expectations.', ""Shares of CVS are now up more than 45% for the year, unlike the company's main retail pharmacy rival Walgreens, whose stock is up nearly 3%."", 'Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.', 'The upbeat quarterly results may be a sign that brighter days are ahead for the CVS – or at least that things may not be as bad as they were last year.', ""The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due tohigher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure."", ""CVS isn't out of the woods yet."", ""Medical costswere less severe during the fourth quarter but will likely remain elevated in 2025, as more seniors flock to hospitals and doctor's offices and use more health-care benefits."", ""But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share."", ""CVS has pursued store closures and other cost cuts, and its new CEO David Joyner has spent much of his first 100 days at the helm focusing on the company's insurance unit Aetna."", '""The pieces are in place for [CVS to return] from what has been a bottoming of operations performance,"" said Leerink Partners analyst Michael Cherny, who upgraded the stock on Wednesday after the results.', 'Cantor Fitzgerald analysts on Wednesday also upgraded CVS\' stock, citing ""increased confidence in a successful turnaround.', '""CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision.', 'The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year.', 'In a research note, Cantor Fitzgerald analysts said they are ""incrementally more confident"" that CVS will improve margins in its Medicare Advantage business and return to ""normal levels"" by 2027.CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin.', 'They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday.', 'CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.', 'Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.', 'But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries.', 'To improve margins, the company plans to shrink Medicare Advantage membership by a ""high single-digit percentage"" from the end of 2024, executives said on Wednesday.', ""Aetna had 4.4 million Medicare Advantage members as of December, up from 3.5 million the year before, according to the company's fourth-quarter release."", 'Overall, CVS executives said they expect to decrease insurance members by more than 1 million this year, including 800,000 in the individual market.', 'Patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.', 'Aetna also scored better Medicare Advantage star ratings for the 2025 payment year, which should boost its federal payments in 2026.', 'Those crucial ratings help patients compare the quality of Medicare health and drug plans and determine how much an insurer receives in bonus payments from the Centers for Medicare & Medicaid Services.', 'On the earnings call, Joyner said the company is pushing for higher payment rates from the government for Medicare Advantage.', ""He said the proposed rates for 2026 don't account for higher medical costs over the last year."", 'The Biden administration in January proposed to increase Medicare Advantage reimbursement rates by 2.2% in 2026, up from the 0.2% drop in rates for this year.', 'But Cantor analysts also said they expect the Medicare Advantage reimbursement rate could rise, projecting a finalized increase of 2% to 2.8%.""We\'re assuming an improving rate environment … maintaining STARS ratings, and [medical] costs trends that do not exceed 2024 levels,"" the analysts wrote.', 'It is difficult to predict what medical costs trends across the insurance industry will look like in 2025.', ""But higher medical costs are baked into CVS's full-year guidance this time around."", 'The outlook assumes that the trends the company saw in 2024 will carry over into this year despite more favorable medical costs for the company in the fourth quarter, said Tanquilut.', '""The early reads for \'25 or at least late \'24 is that it\'s starting to get better.', 'But they did not assume that improvement in the 2025 guidance,"" Tanquilut told CNBC. ""', ""So it sounds like there's upside to their numbers for 2025.The company last year also said it would make significant changes to its Medicare Advantage plans for 2025, such as increasing copays and premiums and cutting back certain health benefits."", 'That will eliminate the expenses tied to those benefits and drive away patients who need or want to use them.', 'Other insurers such as Humana, the second largest Medicare Advantage insurer, are similarly culling their plan offerings for 2025 to reduce lower-profit membership.', 'Humana is dropping a staggering 550,000 Medicare Advantage customers in less profitable markets.', 'But the company has said that people who lose access to their existing plans will likely have another Humana Medicare Advantage plan option.', 'Shares of CVS are outperforming most of its health-care rivals, both on the insurance and retail pharmacy sides.', ""Jefferies analyst Brian Tanquilut said that is likely due to CVS' unique position as a company that owns a health insurer, a retail drugstore chain and a pharmacy benefit manager, or PBM, called Caremark."", '""I think what they\'re starting to show is the real synergy...in owning all three assets,"" Tanquilut said.', 'PBMs such as Caremark sit at the center of the drug supply chain in the U.S., negotiating drug rebates with manufacturers on behalf of insurers, creating lists of preferred medications covered by health plans and reimbursing pharmacies for prescriptions.', ""That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses."", 'For example, Caremark in some cases directs drug prescriptions to CVS retail pharmacies.', ""That has helped the company's drugstores gain meaningful prescription market share over its chief rival, Walgreens,which has been struggling to operate as a largely standalone pharmacy business, Tanquilut said."", 'Other insurers, such as Cigna and UnitedHealth Group, also own PBMs.', 'But the fact that CVS has a retail pharmacy ""just pulls it all together and differentiates it from the others,"" Tanquilut added.', ""That doesn't necessarily mean that other insurers are underperforming."", 'Tanquilut said UnitedHealthcare, the insurance arm of UnitedHealth Group, is still ""best in class"" in the industry.', 'Other insurance companies have their own hurdles apart from higher medical costs, such as Humana seeing a drop in its Medicare Advantage star ratings for the year.', 'But CVS\' story has been much more complicated than other insurers given its business model, and the company could now be reaching a point where ""all three of its business segments are clicking,"" said Tanquilut.']",0.3022095051445605,But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share.,"In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around.",0.460289873727938,"Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.","The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due tohigher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure.",2025-02-15
"CVS shares pop 15% on big earnings beat, even as high medical costs drag down insurance unit",https://www.cnbc.com/2025/02/12/cvs-health-cvs-earnings-q4-2024.html,2025-02-12T20:55:44+0000,"In this articleCVS Health on Wednesday reported fourth-quarter revenue and profit that topped estimates, even as its troubled insurance business continued to see higher medical costs. The company also issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share, which was in line with Wall Street's expectations. But CVS did not provide a revenue forecast for the year. It caps off the first full quarter with David Joyner, a longtime CVS executive, as CEO of the troubled retail drugstore chain. Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.The company underwent a management reshuffle as part of a broader turnaround plan that includes $2 billion in cost cuts over the next several years. CVS has grappled with rising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs. Here's what CVS reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: The company's shares closed 15% higher on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers. But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries. CVS booked sales of $97.71 billion for the fourth quarter, up 4.2% from the same period a year ago due to growth in its pharmacy business and insurance unit. The company posted net income of $1.64 billion, or $1.30 per share, for the fourth quarter. That compares with net income of $2.05 billion, or $1.58 per share, for the year-earlier period. Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.19 per share for the quarter.CVS said its fourth-quarter earnings reflect higher medical costs in its insurance business and lower Medicare Advantage star ratings for the 2024 payment year, both of which weighed on the segment's operating results for the quarter. Those star ratings help Medicare patients compare the quality of Medicare health and drug plans. But CVS expects to improve margins in its Medicare Advantage business in 2025, partly by shrinking its membership in those plans by a ""high single-digit percentage"" from the end of 2024, Joyner said on an earnings call on Wednesday. He added that the company has improved Medicare Advantage star ratings for the year.""Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins,"" Joyner said.Companies can decide to stop covering patients in markets that they determine are unprofitable, and patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.All three of CVS' business segments beat Wall Street's expectations for the fourth quarter.CVS' insurance business booked $32.96 billion in revenue during the quarter, up more than 23% from the fourth quarter of 2023. Analysts expected the unit to take in $32.89 billion for the period, according to estimates from StreetAccount.But the business reported an adjusted operating loss of $439 million for the fourth quarter, compared with adjusted operating income of $676 million in the year-earlier period. That change was driven by higher medical costs and the company's Medicare Advantage star ratings, among other factors.The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier. A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.The fourth-quarter ratio was lower than the 95.9% that analysts were expecting, StreetAccount estimates said.""Medical trends remain elevated, although what we experienced in the fourth quarter was less severe than what we assumed,"" CVS CFO Thomas Cowhey said on the call.CVS' health services segment generated $47.02 billion in revenue for the quarter, down more than 4% compared with the same quarter in 2023. Analysts expected the unit to post $44.06 billion in sales for the period, according to StreetAccount.That unit includes Caremark, one of the nation's largest pharmacy benefit managers. Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client. Tyson Foods told CNBC in January 2024 that it dropped CVS as the pharmacy benefit manager for its roughly 140,000 employees, but it is unclear if any other companies stopped working with CVS during the year, as well.CVS' pharmacy and consumer wellness division booked $33.51 billion in sales for the fourth quarter, up more than 7% from the same period a year earlier. Analysts expected sales of $33.03 billion for the quarter, StreetAccount said.That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing.The increase was partly driven by higher prescription volume, CVS said. Pharmacy reimbursement pressure, the launch of new generic drugs and lower volume from front-of-store items like pantry food and toiletries, including from decreased store count, weighed on the unit's sales.",CNBC,12/02/2025,"['In this articleCVS Health on Wednesday reported fourth-quarter revenue and profit that topped estimates, even as its troubled insurance business continued to see higher medical costs.', ""The company also issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share, which was in line with Wall Street's expectations."", 'But CVS did not provide a revenue forecast for the year.', 'It caps off the first full quarter with David Joyner, a longtime CVS executive, as CEO of the troubled retail drugstore chain.', 'Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.', 'The company underwent a management reshuffle as part of a broader turnaround plan that includes $2 billion in cost cuts over the next several years.', 'CVS has grappled withrising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs.', ""Here's what CVS reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company's shares closed 15% higher on Wednesday."", 'CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.', 'Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.', 'But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries.', 'CVS booked sales of $97.71 billion for the fourth quarter, up 4.2% from the same period a year ago due to growth in its pharmacy business and insurance unit.', 'The company posted net income of $1.64 billion, or $1.30 per share, for the fourth quarter.', 'That compares with net income of $2.05 billion, or $1.58 per share, for the year-earlier period.', 'Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.19 per share for the quarter.', ""CVS said its fourth-quarter earnings reflect higher medical costs in its insurance business and lower Medicare Advantage star ratings for the 2024 payment year, both of which weighed on the segment's operating results for the quarter."", 'Those star ratings help Medicare patients compare the quality of Medicare health and drug plans.', 'But CVS expects to improve margins in its Medicare Advantage business in 2025, partly by shrinking its membership in those plans by a ""high single-digit percentage"" from the end of 2024, Joyner said on an earnings call on Wednesday.', 'He added that the company has improved Medicare Advantage star ratings for the year.', '""Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins,"" Joyner said.', 'Companies can decide to stop covering patients in markets that they determine are unprofitable, and patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.', ""All three of CVS' business segments beat Wall Street's expectations for the fourth quarter."", ""CVS' insurance business booked $32.96 billion in revenue during the quarter, up more than 23% from the fourth quarter of 2023."", 'Analysts expected the unit to take in $32.89 billion for the period, according to estimates from StreetAccount.', 'But the business reported an adjusted operating loss of $439 million for the fourth quarter, compared with adjusted operating income of $676 million in the year-earlier period.', ""That change was driven by higher medical costs and the company's Medicare Advantage star ratings, among other factors."", ""The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier."", 'A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.', 'The fourth-quarter ratio was lower than the 95.9% that analysts were expecting, StreetAccount estimates said.', '""Medical trends remain elevated, although what we experienced in the fourth quarter was less severe than what we assumed,"" CVS CFO Thomas Cowhey said on the call.', ""CVS' health services segment generated $47.02 billion in revenue for the quarter, down more than 4% compared with the same quarter in 2023."", 'Analysts expected the unit to post $44.06 billion in sales for the period, according to StreetAccount.', ""That unit includes Caremark, one of the nation's largest pharmacy benefit managers."", 'Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.', ""CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client."", 'Tyson Foods told CNBC in January 2024 that it dropped CVS as the pharmacy benefit manager for its roughly 140,000 employees, but it is unclear if any other companies stopped working with CVS during the year, as well.', ""CVS' pharmacy and consumer wellness division booked $33.51 billion in sales for the fourth quarter, up more than 7% from the same period a year earlier."", 'Analysts expected sales of $33.03 billion for the quarter, StreetAccount said.', ""That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing."", 'The increase was partly driven by higher prescription volume, CVS said.', ""Pharmacy reimbursement pressure, the launch of new generic drugs and lower volume from front-of-store items like pantry food and toiletries, including from decreased store count, weighed on the unit's sales.""]",0.1427858422630649,"Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.","CVS has grappled withrising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs.",0.3987766126791636,The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier.,"CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client.",2025-02-15
"Tequila, mezcal are the only spirits growing in sales, but tariffs would be 'catastrophic,' industry group says",https://www.cnbc.com/2025/02/11/tequila-mezcal-sales-are-growing-but-mexico-tariffs-may-hit-industry.html,2025-02-11T22:34:42+0000,"The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday.Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.That is the first time revenue for the spirits category has fallen in more than two decades. Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019. Between 2003 and 2019, the average annual growth rate was 4.4%.""While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,"" said DISCUS President and CEO Chris Swonger.Tequila and mezcal remained a bright spot for the year as the only spirits category showing sales growth, as revenue climbed 2.9% to $6.7 billion.Top five spirits categories by revenue in 2024:Premixed ready-to-drink cocktails grew double digits, but the category includes various types of mixed spirits including vodka, rum, whiskey and cordials.Mexican spirits and beer have grown more popular with consumers for over two decades, and tequila and mezcal sales outpaced American whiskey for the first time in 2023.The road ahead for the Mexico-based products remains uncertain. The Trump administration earlier this month delayed imposing tariffs on imports from Mexico — which would include distinctive products such as mezcal and tequila — by one month while tariff negotiations continue.""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. ""Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry,"" Hart added.Swonger also noted that tariffs would be a ""catastrophic blow"" to distillers and only add to the pressure higher interest rates have put on the industry's supply chain, as wholesalers and retailers continue to deplete inventory buildups and cautiously restock products.""Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,"" said Swonger. ""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.",CNBC,11/02/2025,"['The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday.', 'Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.', 'That is the first time revenue for the spirits category has fallen in more than two decades.', 'Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019.', 'Between 2003 and 2019, the average annual growth rate was 4.4%.""While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,"" said DISCUS President and CEO Chris Swonger.', 'Tequila and mezcal remained a bright spot for the year as the only spirits category showing sales growth, as revenue climbed 2.9% to $6.7 billion.', 'Top five spirits categories by revenue in 2024:Premixed ready-to-drink cocktails grew double digits, but the category includes various types of mixed spirits including vodka, rum, whiskey and cordials.', 'Mexican spirits and beer have grown more popular with consumers for over two decades, and tequila and mezcal sales outpaced American whiskey for the first time in 2023.The road ahead for the Mexico-based products remains uncertain.', 'The Trump administration earlier this month delayed imposing tariffs on imports from Mexico — which would include distinctive products such as mezcal and tequila — by one month while tariff negotiations continue.', '""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. ""', 'Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry,"" Hart added.', 'Swonger also noted that tariffs would be a ""catastrophic blow"" to distillers and only add to the pressure higher interest rates have put on the industry\'s supply chain, as wholesalers and retailers continue to deplete inventory buildups and cautiously restock products.', '""Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,"" said Swonger.', '""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.']",0.1879811171130622,"""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.","""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. """,-0.0776780385237473,"Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019.","Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.",2025-02-15
Prebiotic soda brand Olipop valued at $1.85 billion in latest funding round,https://www.cnbc.com/2025/02/12/olipop-prebiotic-soda-valued-at-1point85-billion-in-funding-round.html,2025-02-13T16:07:58+0000,"Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday. Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.Olipop's Series C funding round was led by J.P. Morgan Private Capital's Growth Equity Partners. The company plans to use the money it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS. Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category. One in four Gen Z consumers drinks Olipop, according to the company.In early 2024, Olipop reached profitability, the company said. Its annual sales surpassed $400 million last year, doubling the year prior. In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data. Poppi's annual sales reportedly crossed $100 million in 2023. Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game.Poppi has also faced some backlash for its health claims. The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.",CNBC,13/02/2025,"['Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.', 'Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday.', 'Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.', ""Olipop's Series C funding round was led by J.P. Morgan Private Capital's Growth Equity Partners."", 'The company plans to use the money it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.', 'Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS.', 'Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category.', 'One in four Gen Z consumers drinks Olipop, according to the company.', 'In early 2024, Olipop reached profitability, the company said.', 'Its annual sales surpassed $400 million last year, doubling the year prior.', 'In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.', 'For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data.', ""Poppi's annual sales reportedly crossed $100 million in 2023."", 'Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game.', 'Poppi has also faced some backlash for its health claims.', ""The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.""]",0.2496519312747468,"Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.","The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.",0.6967675941331046,"Its annual sales surpassed $400 million last year, doubling the year prior.",Poppi has also faced some backlash for its health claims.,2025-02-15
Trump is unlikely to end Medicare drug price talks — here's what that means for patients and pharma,https://www.cnbc.com/2025/02/10/trump-could-make-changes-to-medicare-drug-price-negotiations.html,2025-02-10T13:40:30+0000,"President Donald Trump likely won't do away with a landmark process that allows Medicare to negotiate drug prices with manufacturers, even as he moves to erase Joe Biden's other historic policy accomplishments. But Trump will likely make some changes to those price talks, and it may not require help from Congress. ""Trump is looking to nibble around the edges of the law,"" said Matthew Kupferberg, a partner in Frier Levitt's life sciences group, adding the president is ""not looking to completely abandon the drug negotiation process at this point.""It's still unclear which way Trump will lean, however. While some lawmakers and health policy experts said Trump could weaken the negotiations in a way that helps the pharmaceutical industry, other experts said he could double down and try to save patients and the federal government even more money to outdo his predecessor. The path he takes could have huge stakes for the prices 68 million Medicare beneficiaries in the U.S. pay for their medications. It will also have big implications for companies like Novo Nordisk, Bristol Myers Squibb, Pfizer and Merck, among others whose drugs were included in the first two rounds of talks.The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade. The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.The Trump administration has offered few specifics on its approach to the negotiations, apart from saying in January that it will aim for ""greater transparency"" in the ongoing second cycle of the process and hear any ideas for improving it from external stakeholders.Making significant changes to the law or repealing it altogether would be an uphill battle because it requires help from Congress, where Republicans hold slim majorities. Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.So the Trump administration could move to implement the provision differently than Biden did, including by changing how the government interprets the law's selection criteria for drugs, among other potential changes.""I think it is a question of how they interpret some of the statutory language,"" said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health policy organization. Cubanski said we can expect a first glimpse at any changes in the coming months.The Trump administration will start the monthslong negotiation process for a second cycle of 15 drugs, which will have new prices go into effect in 2027. The Biden administration selected those medicines in January before Trump took office. Drugmakers have until the end of February to decide whether to participate in the talks, which they likely will because they otherwise face stiff financial penalties.Trump has so far only indicated the need for more transparency in Medicare drug price negotiations. Kupferberg said that could mean disclosing more information about the government's rationale for selecting drugs or settling on prices.During the first round of the talks, Medicare provided opportunities for public input from patients, caregivers and consumer groups. But Kupferberg said the Trump administration could move to bring in other stakeholders beyond manufacturers and patients, like insurers or even middlemen called pharmacy benefit managers. ""It could be a much broader type of negotiation process,"" he said. The administration could also reinterpret the guidelines of the law, which could change what products get selected and how much prices fall, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.For example, the IRA says the drugs selected for negotiations must have been on the market for at least seven years without generic competitors, or 11 years in the case of biologic products such as vaccines. But the Trump administration, when selecting another round of drugs, may have ""looser standards"" for determining whether a drug has competition in the market and should be exempt from negotiated prices, Campbell said. Trump could also revise what Medicare considers one drug for the purpose of negotiations, KFF's Cubanski said. Currently, different products that share the same active ingredient can be selected as a single product, which the pharmaceutical industry opposes. The Biden administration, for example, included three of Novo Nordisk's branded medications with the same active ingredient – semaglutide – as one product in the second cycle of price talks. That includes the weight loss drug Wegovy, diabetes pill Rybelsus and the anti-obesity injection Ozempic. Of the three, Ozempic makes up the lion's share of Medicare spending.Either of those changes to how Medicare selects drugs could benefit drugmakers and lessen the revenue they lose from lower prices. The bigger question is how aggressively Medicare will negotiate prices under Trump, Cubanski said. Currently, the final negotiated price for a drug cannot exceed an upper limit, or ""ceiling"" price, established by the IRA.Trump could influence whether Medicare's initial price offer for a drug is closer to the ceiling price, which could weaken the program's ability to secure a deeper discount. Major changes to the price negotiations are much less likely to occur, as they would require help from Congress. For example, one of the pharmaceutical industry's biggest issues with the process is what drugmakers calls the ""pill penalty."" The law essentially spares biologics like vaccines from new negotiated prices for 13 years after they receive U.S. approval, compared with just nine years for small-molecule drugs that come in a pill or tablet form. The industry contends that the discrepancy discourages companies from investing in the development of small-molecule drugs, which are more convenient for patients.Cubanski said bipartisan legislation was introduced last year that proposes eliminating the pill penalty. If that bill makes it through Congress and to Trump's desk, ""I don't see why he wouldn't sign it,"" Cubanski said. She added that there appears to be growing interest in legislative changes to the negotiation program, but ""whether you get enough support in Congress is still really an open question."" There isn't the same level of bipartisan support for changes to the IRA as there is for efforts like pharmacy benefit manager reform, said Jesse Dresser, partner in Frier Levitt's life sciences department. ""I could see something like [PBM reform] happening a lot sooner than I could see trying to open up the IRA and tweak it, even if it's something that the administration might ultimately get behind,"" Dresser said. It's unclear how Trump will approach the ongoing legal fight between manufacturers and the federal government over the Medicare program.The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court. Nine lawsuits were ongoing as of January.""Will the Trump administration continue to defend the program? Or maybe not as aggressively defend the program?"" Cubanski said. ""I think those are some key questions."" If the Trump administration stops defending the program in court, judges could then make decisions on the matter without any opposition, Kupferberg said. But he said he doesn't believe the administration will want that outcome. The Trump administration would likely ""want to take control of that process, where the parties work out an agreement or revise and change the interpretation of the law,"" Kupferberg said. He added that it doesn't seem like Trump would want the entire negotiation program to disappear based on the lawsuits. That's because it would leave Trump in the position to come up with a replacement for Medicare drug price negotiations, and we ""just haven't seen one yet"" from him, Kupferberg said.",CNBC,10/02/2025,"[""President Donald Trump likely won't do away with a landmark process that allows Medicare to negotiate drug prices with manufacturers, even as he moves to erase Joe Biden's other historic policy accomplishments."", 'But Trump will likely make some changes to those price talks, and it may not require help from Congress.', '""Trump is looking to nibble around the edges of the law,"" said Matthew Kupferberg, a partner in Frier Levitt\'s life sciences group, adding the president is ""not looking to completely abandon the drug negotiation process at this point.', '""It\'s still unclear which way Trump will lean, however.', 'While some lawmakers and health policy experts said Trump could weaken the negotiations in a way that helps the pharmaceutical industry, other experts said he could double down and try to save patients and the federal government even more money to outdo his predecessor.', 'The path he takes could have huge stakes for the prices 68 million Medicare beneficiaries in the U.S. pay for their medications.', 'It will also have big implications for companies like Novo Nordisk, Bristol Myers Squibb, Pfizer and Merck, among others whose drugs were included in the first two rounds of talks.', ""The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade."", 'The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.', 'The Trump administration has offered few specifics on its approach to the negotiations, apart from saying in January that it will aim for ""greater transparency"" in the ongoing second cycle of the process and hear any ideas for improving it from external stakeholders.', 'Making significant changes to the law or repealing it altogether would be an uphill battle because it requires help from Congress, where Republicans hold slim majorities.', 'Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.', ""So the Trump administration could move to implement the provision differently than Biden did, including by changing how the government interprets the law's selection criteria for drugs, among other potential changes."", '""I think it is a question of how they interpret some of the statutory language,"" said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health policy organization.', 'Cubanski said we can expect a first glimpse at any changes in the coming months.', 'The Trump administration will start the monthslong negotiation process for a second cycle of 15 drugs, which will have new prices go into effect in 2027.', 'The Biden administration selected those medicines in January before Trump took office.', 'Drugmakers have until the end of February to decide whether to participate in the talks, which they likely will because they otherwise face stiff financial penalties.', 'Trump has so far only indicated the need for more transparency in Medicare drug price negotiations.', ""Kupferberg said that could mean disclosing more information about the government's rationale for selecting drugs or settling on prices."", 'During the first round of the talks, Medicare provided opportunities for public input from patients, caregivers and consumer groups.', 'But Kupferberg said the Trump administration could move to bring in other stakeholders beyond manufacturers and patients, like insurers or even middlemen called pharmacy benefit managers.', '""It could be a much broader type of negotiation process,"" he said.', 'The administration could also reinterpret the guidelines of the law, which could change what products get selected and how much prices fall, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.', 'For example, the IRA says the drugs selected for negotiations must have been on the market for at least seven years without generic competitors, or 11 years in the case of biologic products such as vaccines.', 'But the Trump administration, when selecting another round of drugs, may have ""looser standards"" for determining whether a drug has competition in the market and should be exempt from negotiated prices, Campbell said.', ""Trump could also revise what Medicare considers one drug for the purpose of negotiations, KFF's Cubanski said."", 'Currently, different products that share the same active ingredient can be selected as a single product, which the pharmaceutical industry opposes.', ""The Biden administration, for example, included three of Novo Nordisk's branded medications with the same active ingredient – semaglutide – as one product in the second cycle of price talks."", 'That includes the weight loss drug Wegovy, diabetes pill Rybelsus and the anti-obesity injection Ozempic.', ""Of the three, Ozempic makes up the lion's share of Medicare spending."", 'Either of those changes to how Medicare selects drugs could benefit drugmakers and lessen the revenue they lose from lower prices.', 'The bigger question is how aggressively Medicare will negotiate prices under Trump, Cubanski said.', 'Currently, the final negotiated price for a drug cannot exceed an upper limit, or ""ceiling"" price, established by the IRA.Trump could influence whether Medicare\'s initial price offer for a drug is closer to the ceiling price, which could weaken the program\'s ability to secure a deeper discount.', 'Major changes to the price negotiations are much less likely to occur, as they would require help from Congress.', 'For example, one of the pharmaceutical industry\'s biggest issues with the process is what drugmakers calls the ""pill penalty.', '""The law essentially spares biologics like vaccines from new negotiated prices for 13 years after they receive U.S. approval, compared with just nine years for small-molecule drugs that come in a pill or tablet form.', 'The industry contends that the discrepancy discourages companies from investing in the development of small-molecule drugs, which are more convenient for patients.', 'Cubanski said bipartisan legislation was introduced last year that proposes eliminating the pill penalty.', 'If that bill makes it through Congress and to Trump\'s desk, ""I don\'t see why he wouldn\'t sign it,"" Cubanski said.', 'She added that there appears to be growing interest in legislative changes to the negotiation program, but ""whether you get enough support in Congress is still really an open question.', '""There isn\'t the same level of bipartisan support for changes to the IRA as there is for efforts like pharmacy benefit manager reform, said Jesse Dresser, partner in Frier Levitt\'s life sciences department.', '""I could see something like [PBM reform] happening a lot sooner than I could see trying to open up the IRA and tweak it, even if it\'s something that the administration might ultimately get behind,"" Dresser said.', ""It's unclear how Trump will approach the ongoing legal fight between manufacturers and the federal government over the Medicare program."", ""The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court."", 'Nine lawsuits were ongoing as of January.', '""Will the Trump administration continue to defend the program?', 'Or maybe not as aggressively defend the program?""', 'Cubanski said. ""', 'I think those are some key questions.', '""If the Trump administration stops defending the program in court, judges could then make decisions on the matter without any opposition, Kupferberg said.', ""But he said he doesn't believe the administration will want that outcome."", 'The Trump administration would likely ""want to take control of that process, where the parties work out an agreement or revise and change the interpretation of the law,"" Kupferberg said.', ""He added that it doesn't seem like Trump would want the entire negotiation program to disappear based on the lawsuits."", 'That\'s because it would leave Trump in the position to come up with a replacement for Medicare drug price negotiations, and we ""just haven\'t seen one yet"" from him, Kupferberg said.']",0.0868428474690438,"Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.","The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court.",-0.0563547280099656,"The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade.","The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.",2025-02-15
"As Trump eyes more tariffs, South Korea remains safe haven for GM and Hyundai",https://www.cnbc.com/2025/02/13/trump-tariffs-gm-hyundai-south-korean-imports.html,2025-02-15T21:01:45+0000,"DETROIT — As President Donald Trump threatens to further increase tariffs on U.S. trading partners, the greatest impact for the auto industry outside of North America would be additional levies on South Korea and Japan.The East Asian countries produced a combined 16.8% of vehicles sold last year in the U.S., including a record 8.6% from South Korea and 8.2% from Japan, according to data provided to CNBC by GlobalData.They were the largest vehicle importers to the U.S. outside of Mexico — and they have little to no duties compared with the 25% tariff Trump has threatened imposing on Canada and Mexico.Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea. The country overtook Japan and Canada last year to become the second-largest exporter of new cars to the U.S., based on sales.It trails only Mexico, which represented 16.2% of U.S. auto sales in 2024, GlobalData reports.""Obviously Hyundai has a massive amount of exposure. Behind it is GM … with relatively large volume models,"" said Jeff Schuster, global vice president of automotive research at GlobalData. ""There's a lot of risk potentially here, but it's limited, really limited, to those two players.""Imports from Japan are currently subject to a 2.5% tariff for automakers such as Toyota Motor, Nissan Motor and Honda Motor. Vehicles from Japan represented about 1.31 million autos sold last year in the U.S.Japan's percentage of sales has actually decreased in recent years, while South Korea's exports and sales have continued to rise from less than 845,000 in 2019 to more than 1.37 million in 2024.South Korea has 0% tariffs on cars despite Trump renegotiating a trade deal with the country during his first term in 2018. That accord was touted for improving vehicle imports to South Korea, but it did little to address vehicle exports to the U.S.The deal also has done little for increasing automotive exports to South Korea, according to data from the International Trade Commission. U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States. The companies importing the goods pay the tariffs, and some experts fear the companies would simply pass any additional costs on to consumers — raising the cost of vehicles and potentially reducing demand.South Korea-based Hyundai is the largest exporter of vehicles to the U.S., followed by GM and then Kia Corp., a part of Hyundai that largely operates separately in the U.S.GM has notably increased its imports from South Korea in recent years. Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.GM is the largest foreign direct investor in Korea's manufacturing industry, according to the automaker's website. It has invested 9 trillion South Korean won (roughly $6.2 billion) since establishing the operations in 2002.GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea. The company has touted the vehicles as being a pinnacle for the automaker's profitable growth in lower-margin, entry-level vehicles.""We're taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company's investor day in October. ""Trax and Envista have helped raise our share of the U.S. small SUV market to its highest level since 2007.""GM and Kia declined to comment when asked about potential tariffs on South Korea. Hyundai touted its operations and investments in the U.S., which the carmaker says have totaled $20.5 billion since entering the market in 1986, but did not directly comment on potential tariffs.""For nearly four decades, Hyundai has been a driver of American growth and innovation, contributing jobs, economic activity, and investments that have helped Americans prosper. We welcome the opportunity to work with the new administration to support American manufacturing, protect supply chains, and spur innovation,"" Hyundai said Thursday in an emailed statement.Terence Lau, dean of the College of Law at Syracuse University who previously worked as a trade expert for Ford Motor, said the automotive industry is built on free trade. If tariffs are implemented, the industry can adjust, but it takes time.""The car industry can adjust to anything. Really, it can. It's always going to make product that customers want to buy, because personal mobility and transportation is a human need all around the world,"" he said. ""What the car industry cannot do well is pivot on a dime.""Lau argued that a single-digit tariff can be a ""nuisance,"" but once they hit 10% or more, that's when additional costs can really began eating into the margin or products.Ford Motor CEO Jim Farley last week argued that if Trump is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries to even the playing field in North America.Farley singled out Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.""There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],"" Farley said during the company's fourth-quarter earnings call with investors. ""So if we're going to have a tariff policy ... it better be comprehensive for our industry.""We can't just cherry-pick one place or the other because this is a bonanza for our import competitors.""The White House did not respond for comment on potential tariffs on South Korea.Trump on Thursday signed a presidential memorandum laying out his plan to impose ""reciprocal tariffs"" on foreign nations, but did not go into detail regarding what countries could be targeted.As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports. But he also advocated for Congress to pass what he called the ""Trump Reciprocal Trade Act,"" which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.— CNBC's Kevin Breuninger contributed to this report.",CNBC,15/02/2025,"['DETROIT — As President Donald Trump threatens to further increase tariffs on U.S. trading partners, the greatest impact for the auto industry outside of North America would be additional levies on South Korea and Japan.', 'The East Asian countries produced a combined 16.8% of vehicles sold last year in the U.S., including a record 8.6% from South Korea and 8.2% from Japan, according to data provided to CNBC by GlobalData.', 'They were the largest vehicle importers to the U.S. outside of Mexico — and they have little to no duties compared with the 25% tariff Trump has threatened imposing on Canada and Mexico.', 'Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea.', 'The country overtook Japan and Canada last year to become the second-largest exporter of new cars to the U.S., based on sales.', 'It trails only Mexico, which represented 16.2% of U.S. auto sales in 2024, GlobalData reports.', '""Obviously Hyundai has a massive amount of exposure.', 'Behind it is GM … with relatively large volume models,"" said Jeff Schuster, global vice president of automotive research at GlobalData. ""', ""There's a lot of risk potentially here, but it's limited, really limited, to those two players."", '""Imports from Japan are currently subject to a 2.5% tariff for automakers such as Toyota Motor, Nissan Motor and Honda Motor.', ""Vehicles from Japan represented about 1.31 million autos sold last year in the U.S.Japan's percentage of sales has actually decreased in recent years, while South Korea's exports and sales have continued to rise from less than 845,000 in 2019 to more than 1.37 million in 2024.South Korea has 0% tariffs on cars despite Trump renegotiating a trade deal with the country during his first term in 2018."", 'That accord was touted for improving vehicle imports to South Korea, but it did little to address vehicle exports to the U.S.The deal also has done little for increasing automotive exports to South Korea, according to data from the International Trade Commission.', 'U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States.', 'The companies importing the goods pay the tariffs, and some experts fear the companies would simply pass any additional costs on to consumers — raising the cost of vehicles and potentially reducing demand.', 'South Korea-based Hyundai is the largest exporter of vehicles to the U.S., followed by GM and then Kia Corp., a part of Hyundai that largely operates separately in the U.S.GM has notably increased its imports from South Korea in recent years.', 'Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.', ""GM is the largest foreign direct investor in Korea's manufacturing industry, according to the automaker's website."", 'It has invested 9 trillion South Korean won (roughly $6.2 billion) since establishing the operations in 2002.GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea.', ""The company has touted the vehicles as being a pinnacle for the automaker's profitable growth in lower-margin, entry-level vehicles."", '""We\'re taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company\'s investor day in October. ""', 'Trax and Envista have helped raise our share of the U.S. small SUV market to its highest level since 2007.""GM and Kia declined to comment when asked about potential tariffs on South Korea.', 'Hyundai touted its operations and investments in the U.S., which the carmaker says have totaled $20.5 billion since entering the market in 1986, but did not directly comment on potential tariffs.', '""For nearly four decades, Hyundai has been a driver of American growth and innovation, contributing jobs, economic activity, and investments that have helped Americans prosper.', 'We welcome the opportunity to work with the new administration to support American manufacturing, protect supply chains, and spur innovation,"" Hyundai said Thursday in an emailed statement.', 'Terence Lau, dean of the College of Law at Syracuse University who previously worked as a trade expert for Ford Motor, said the automotive industry is built on free trade.', 'If tariffs are implemented, the industry can adjust, but it takes time.', '""The car industry can adjust to anything.', 'Really, it can.', 'It\'s always going to make product that customers want to buy, because personal mobility and transportation is a human need all around the world,"" he said. ""', 'What the car industry cannot do well is pivot on a dime.', '""Lau argued that a single-digit tariff can be a ""nuisance,"" but once they hit 10% or more, that\'s when additional costs can really began eating into the margin or products.', 'Ford Motor CEO Jim Farley last week argued that if Trump is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries to even the playing field in North America.', 'Farley singled out Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.', '""There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],"" Farley said during the company\'s fourth-quarter earnings call with investors. ""', ""So if we're going to have a tariff policy ... it better be comprehensive for our industry."", '""We can\'t just cherry-pick one place or the other because this is a bonanza for our import competitors.', '""The White House did not respond for comment on potential tariffs on South Korea.', 'Trump on Thursday signed a presidential memorandum laying out his plan to impose ""reciprocal tariffs"" on foreign nations, but did not go into detail regarding what countries could be targeted.', 'As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports.', 'But he also advocated for Congress to pass what he called the ""Trump Reciprocal Trade Act,"" which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.—', ""CNBC's Kevin Breuninger contributed to this report.""]",0.0928438907485276,"""We're taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company's investor day in October. ""","There's a lot of risk potentially here, but it's limited, really limited, to those two players.",0.3944496549665928,"Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.","U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States.",2025-02-14
CVS shares are up 45% this year — here's why it may be starting to turn its business around,https://www.cnbc.com/2025/02/13/cvs-health-may-be-on-track-to-turn-its-struggling-business-around-.html,2025-02-13T20:06:06+0000,"In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around. Some investors seem convinced, especially after the retail drugstore chain on Wednesday posted a big beat on fourth-quarter earnings and a 2025 profit outlook that was in line with expectations. Shares of CVS are now up more than 45% for the year, unlike the company's main retail pharmacy rival Walgreens, whose stock is up nearly 3%. Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.The upbeat quarterly results may be a sign that brighter days are ahead for the CVS – or at least that things may not be as bad as they were last year. The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due to higher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure.CVS isn't out of the woods yet. Medical costs were less severe during the fourth quarter but will likely remain elevated in 2025, as more seniors flock to hospitals and doctor's offices and use more health-care benefits. But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share. CVS has pursued store closures and other cost cuts, and its new CEO David Joyner has spent much of his first 100 days at the helm focusing on the company's insurance unit Aetna. ""The pieces are in place for [CVS to return] from what has been a bottoming of operations performance,"" said Leerink Partners analyst Michael Cherny, who upgraded the stock on Wednesday after the results. Cantor Fitzgerald analysts on Wednesday also upgraded CVS' stock, citing ""increased confidence in a successful turnaround."" CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision. The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year. In a research note, Cantor Fitzgerald analysts said they are ""incrementally more confident"" that CVS will improve margins in its Medicare Advantage business and return to ""normal levels"" by 2027. CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin. They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers. But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries. To improve margins, the company plans to shrink Medicare Advantage membership by a ""high single-digit percentage"" from the end of 2024, executives said on Wednesday. Aetna had 4.4 million Medicare Advantage members as of December, up from 3.5 million the year before, according to the company's fourth-quarter release.Overall, CVS executives said they expect to decrease insurance members by more than 1 million this year, including 800,000 in the individual market. Patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.Aetna also scored better Medicare Advantage star ratings for the 2025 payment year, which should boost its federal payments in 2026. Those crucial ratings help patients compare the quality of Medicare health and drug plans and determine how much an insurer receives in bonus payments from the Centers for Medicare & Medicaid Services.On the earnings call, Joyner said the company is pushing for higher payment rates from the government for Medicare Advantage. He said the proposed rates for 2026 don't account for higher medical costs over the last year. The Biden administration in January proposed to increase Medicare Advantage reimbursement rates by 2.2% in 2026, up from the 0.2% drop in rates for this year. But Cantor analysts also said they expect the Medicare Advantage reimbursement rate could rise, projecting a finalized increase of 2% to 2.8%.""We're assuming an improving rate environment … maintaining STARS ratings, and [medical] costs trends that do not exceed 2024 levels,"" the analysts wrote. It is difficult to predict what medical costs trends across the insurance industry will look like in 2025. But higher medical costs are baked into CVS's full-year guidance this time around. The outlook assumes that the trends the company saw in 2024 will carry over into this year despite more favorable medical costs for the company in the fourth quarter, said Tanquilut. ""The early reads for '25 or at least late '24 is that it's starting to get better. But they did not assume that improvement in the 2025 guidance,"" Tanquilut told CNBC. ""So it sounds like there's upside to their numbers for 2025. The company last year also said it would make significant changes to its Medicare Advantage plans for 2025, such as increasing copays and premiums and cutting back certain health benefits. That will eliminate the expenses tied to those benefits and drive away patients who need or want to use them.Other insurers such as Humana, the second largest Medicare Advantage insurer, are similarly culling their plan offerings for 2025 to reduce lower-profit membership. Humana is dropping a staggering 550,000 Medicare Advantage customers in less profitable markets. But the company has said that people who lose access to their existing plans will likely have another Humana Medicare Advantage plan option.Shares of CVS are outperforming most of its health-care rivals, both on the insurance and retail pharmacy sides. Jefferies analyst Brian Tanquilut said that is likely due to CVS' unique position as a company that owns a health insurer, a retail drugstore chain and a pharmacy benefit manager, or PBM, called Caremark.""I think what they're starting to show is the real synergy...in owning all three assets,"" Tanquilut said. PBMs such as Caremark sit at the center of the drug supply chain in the U.S., negotiating drug rebates with manufacturers on behalf of insurers, creating lists of preferred medications covered by health plans and reimbursing pharmacies for prescriptions. That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses.For example, Caremark in some cases directs drug prescriptions to CVS retail pharmacies. That has helped the company's drugstores gain meaningful prescription market share over its chief rival, Walgreens, which has been struggling to operate as a largely standalone pharmacy business, Tanquilut said. Other insurers, such as Cigna and UnitedHealth Group, also own PBMs. But the fact that CVS has a retail pharmacy ""just pulls it all together and differentiates it from the others,"" Tanquilut added. That doesn't necessarily mean that other insurers are underperforming. Tanquilut said UnitedHealthcare, the insurance arm of UnitedHealth Group, is still ""best in class"" in the industry. Other insurance companies have their own hurdles apart from higher medical costs, such as Humana seeing a drop in its Medicare Advantage star ratings for the year. But CVS' story has been much more complicated than other insurers given its business model, and the company could now be reaching a point where ""all three of its business segments are clicking,"" said Tanquilut.",CNBC,13/02/2025,"['In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around.', 'Some investors seem convinced, especially after the retail drugstore chain on Wednesday posted a big beat on fourth-quarter earnings and a 2025 profit outlook that was in line with expectations.', ""Shares of CVS are now up more than 45% for the year, unlike the company's main retail pharmacy rival Walgreens, whose stock is up nearly 3%."", 'Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.', 'The upbeat quarterly results may be a sign that brighter days are ahead for the CVS – or at least that things may not be as bad as they were last year.', ""The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due tohigher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure."", ""CVS isn't out of the woods yet."", ""Medical costswere less severe during the fourth quarter but will likely remain elevated in 2025, as more seniors flock to hospitals and doctor's offices and use more health-care benefits."", ""But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share."", ""CVS has pursued store closures and other cost cuts, and its new CEO David Joyner has spent much of his first 100 days at the helm focusing on the company's insurance unit Aetna."", '""The pieces are in place for [CVS to return] from what has been a bottoming of operations performance,"" said Leerink Partners analyst Michael Cherny, who upgraded the stock on Wednesday after the results.', 'Cantor Fitzgerald analysts on Wednesday also upgraded CVS\' stock, citing ""increased confidence in a successful turnaround.', '""CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision.', 'The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year.', 'In a research note, Cantor Fitzgerald analysts said they are ""incrementally more confident"" that CVS will improve margins in its Medicare Advantage business and return to ""normal levels"" by 2027.CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin.', 'They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday.', 'CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.', 'Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.', 'But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries.', 'To improve margins, the company plans to shrink Medicare Advantage membership by a ""high single-digit percentage"" from the end of 2024, executives said on Wednesday.', ""Aetna had 4.4 million Medicare Advantage members as of December, up from 3.5 million the year before, according to the company's fourth-quarter release."", 'Overall, CVS executives said they expect to decrease insurance members by more than 1 million this year, including 800,000 in the individual market.', 'Patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.', 'Aetna also scored better Medicare Advantage star ratings for the 2025 payment year, which should boost its federal payments in 2026.', 'Those crucial ratings help patients compare the quality of Medicare health and drug plans and determine how much an insurer receives in bonus payments from the Centers for Medicare & Medicaid Services.', 'On the earnings call, Joyner said the company is pushing for higher payment rates from the government for Medicare Advantage.', ""He said the proposed rates for 2026 don't account for higher medical costs over the last year."", 'The Biden administration in January proposed to increase Medicare Advantage reimbursement rates by 2.2% in 2026, up from the 0.2% drop in rates for this year.', 'But Cantor analysts also said they expect the Medicare Advantage reimbursement rate could rise, projecting a finalized increase of 2% to 2.8%.""We\'re assuming an improving rate environment … maintaining STARS ratings, and [medical] costs trends that do not exceed 2024 levels,"" the analysts wrote.', 'It is difficult to predict what medical costs trends across the insurance industry will look like in 2025.', ""But higher medical costs are baked into CVS's full-year guidance this time around."", 'The outlook assumes that the trends the company saw in 2024 will carry over into this year despite more favorable medical costs for the company in the fourth quarter, said Tanquilut.', '""The early reads for \'25 or at least late \'24 is that it\'s starting to get better.', 'But they did not assume that improvement in the 2025 guidance,"" Tanquilut told CNBC. ""', ""So it sounds like there's upside to their numbers for 2025.The company last year also said it would make significant changes to its Medicare Advantage plans for 2025, such as increasing copays and premiums and cutting back certain health benefits."", 'That will eliminate the expenses tied to those benefits and drive away patients who need or want to use them.', 'Other insurers such as Humana, the second largest Medicare Advantage insurer, are similarly culling their plan offerings for 2025 to reduce lower-profit membership.', 'Humana is dropping a staggering 550,000 Medicare Advantage customers in less profitable markets.', 'But the company has said that people who lose access to their existing plans will likely have another Humana Medicare Advantage plan option.', 'Shares of CVS are outperforming most of its health-care rivals, both on the insurance and retail pharmacy sides.', ""Jefferies analyst Brian Tanquilut said that is likely due to CVS' unique position as a company that owns a health insurer, a retail drugstore chain and a pharmacy benefit manager, or PBM, called Caremark."", '""I think what they\'re starting to show is the real synergy...in owning all three assets,"" Tanquilut said.', 'PBMs such as Caremark sit at the center of the drug supply chain in the U.S., negotiating drug rebates with manufacturers on behalf of insurers, creating lists of preferred medications covered by health plans and reimbursing pharmacies for prescriptions.', ""That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses."", 'For example, Caremark in some cases directs drug prescriptions to CVS retail pharmacies.', ""That has helped the company's drugstores gain meaningful prescription market share over its chief rival, Walgreens,which has been struggling to operate as a largely standalone pharmacy business, Tanquilut said."", 'Other insurers, such as Cigna and UnitedHealth Group, also own PBMs.', 'But the fact that CVS has a retail pharmacy ""just pulls it all together and differentiates it from the others,"" Tanquilut added.', ""That doesn't necessarily mean that other insurers are underperforming."", 'Tanquilut said UnitedHealthcare, the insurance arm of UnitedHealth Group, is still ""best in class"" in the industry.', 'Other insurance companies have their own hurdles apart from higher medical costs, such as Humana seeing a drop in its Medicare Advantage star ratings for the year.', 'But CVS\' story has been much more complicated than other insurers given its business model, and the company could now be reaching a point where ""all three of its business segments are clicking,"" said Tanquilut.']",0.3022095051445605,But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share.,"In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around.",0.460289873727938,"Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.","The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due tohigher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure.",2025-02-14
"CVS shares pop 15% on big earnings beat, even as high medical costs drag down insurance unit",https://www.cnbc.com/2025/02/12/cvs-health-cvs-earnings-q4-2024.html,2025-02-12T20:55:44+0000,"In this articleCVS Health on Wednesday reported fourth-quarter revenue and profit that topped estimates, even as its troubled insurance business continued to see higher medical costs. The company also issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share, which was in line with Wall Street's expectations. But CVS did not provide a revenue forecast for the year. It caps off the first full quarter with David Joyner, a longtime CVS executive, as CEO of the troubled retail drugstore chain. Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.The company underwent a management reshuffle as part of a broader turnaround plan that includes $2 billion in cost cuts over the next several years. CVS has grappled with rising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs. Here's what CVS reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: The company's shares closed 15% higher on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers. But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries. CVS booked sales of $97.71 billion for the fourth quarter, up 4.2% from the same period a year ago due to growth in its pharmacy business and insurance unit. The company posted net income of $1.64 billion, or $1.30 per share, for the fourth quarter. That compares with net income of $2.05 billion, or $1.58 per share, for the year-earlier period. Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.19 per share for the quarter.CVS said its fourth-quarter earnings reflect higher medical costs in its insurance business and lower Medicare Advantage star ratings for the 2024 payment year, both of which weighed on the segment's operating results for the quarter. Those star ratings help Medicare patients compare the quality of Medicare health and drug plans. But CVS expects to improve margins in its Medicare Advantage business in 2025, partly by shrinking its membership in those plans by a ""high single-digit percentage"" from the end of 2024, Joyner said on an earnings call on Wednesday. He added that the company has improved Medicare Advantage star ratings for the year.""Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins,"" Joyner said.Companies can decide to stop covering patients in markets that they determine are unprofitable, and patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.All three of CVS' business segments beat Wall Street's expectations for the fourth quarter.CVS' insurance business booked $32.96 billion in revenue during the quarter, up more than 23% from the fourth quarter of 2023. Analysts expected the unit to take in $32.89 billion for the period, according to estimates from StreetAccount.But the business reported an adjusted operating loss of $439 million for the fourth quarter, compared with adjusted operating income of $676 million in the year-earlier period. That change was driven by higher medical costs and the company's Medicare Advantage star ratings, among other factors.The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier. A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.The fourth-quarter ratio was lower than the 95.9% that analysts were expecting, StreetAccount estimates said.""Medical trends remain elevated, although what we experienced in the fourth quarter was less severe than what we assumed,"" CVS CFO Thomas Cowhey said on the call.CVS' health services segment generated $47.02 billion in revenue for the quarter, down more than 4% compared with the same quarter in 2023. Analysts expected the unit to post $44.06 billion in sales for the period, according to StreetAccount.That unit includes Caremark, one of the nation's largest pharmacy benefit managers. Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client. Tyson Foods told CNBC in January 2024 that it dropped CVS as the pharmacy benefit manager for its roughly 140,000 employees, but it is unclear if any other companies stopped working with CVS during the year, as well.CVS' pharmacy and consumer wellness division booked $33.51 billion in sales for the fourth quarter, up more than 7% from the same period a year earlier. Analysts expected sales of $33.03 billion for the quarter, StreetAccount said.That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing.The increase was partly driven by higher prescription volume, CVS said. Pharmacy reimbursement pressure, the launch of new generic drugs and lower volume from front-of-store items like pantry food and toiletries, including from decreased store count, weighed on the unit's sales.",CNBC,12/02/2025,"['In this articleCVS Health on Wednesday reported fourth-quarter revenue and profit that topped estimates, even as its troubled insurance business continued to see higher medical costs.', ""The company also issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share, which was in line with Wall Street's expectations."", 'But CVS did not provide a revenue forecast for the year.', 'It caps off the first full quarter with David Joyner, a longtime CVS executive, as CEO of the troubled retail drugstore chain.', 'Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.', 'The company underwent a management reshuffle as part of a broader turnaround plan that includes $2 billion in cost cuts over the next several years.', 'CVS has grappled withrising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs.', ""Here's what CVS reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company's shares closed 15% higher on Wednesday."", 'CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.', 'Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.', 'But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries.', 'CVS booked sales of $97.71 billion for the fourth quarter, up 4.2% from the same period a year ago due to growth in its pharmacy business and insurance unit.', 'The company posted net income of $1.64 billion, or $1.30 per share, for the fourth quarter.', 'That compares with net income of $2.05 billion, or $1.58 per share, for the year-earlier period.', 'Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.19 per share for the quarter.', ""CVS said its fourth-quarter earnings reflect higher medical costs in its insurance business and lower Medicare Advantage star ratings for the 2024 payment year, both of which weighed on the segment's operating results for the quarter."", 'Those star ratings help Medicare patients compare the quality of Medicare health and drug plans.', 'But CVS expects to improve margins in its Medicare Advantage business in 2025, partly by shrinking its membership in those plans by a ""high single-digit percentage"" from the end of 2024, Joyner said on an earnings call on Wednesday.', 'He added that the company has improved Medicare Advantage star ratings for the year.', '""Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins,"" Joyner said.', 'Companies can decide to stop covering patients in markets that they determine are unprofitable, and patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.', ""All three of CVS' business segments beat Wall Street's expectations for the fourth quarter."", ""CVS' insurance business booked $32.96 billion in revenue during the quarter, up more than 23% from the fourth quarter of 2023."", 'Analysts expected the unit to take in $32.89 billion for the period, according to estimates from StreetAccount.', 'But the business reported an adjusted operating loss of $439 million for the fourth quarter, compared with adjusted operating income of $676 million in the year-earlier period.', ""That change was driven by higher medical costs and the company's Medicare Advantage star ratings, among other factors."", ""The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier."", 'A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.', 'The fourth-quarter ratio was lower than the 95.9% that analysts were expecting, StreetAccount estimates said.', '""Medical trends remain elevated, although what we experienced in the fourth quarter was less severe than what we assumed,"" CVS CFO Thomas Cowhey said on the call.', ""CVS' health services segment generated $47.02 billion in revenue for the quarter, down more than 4% compared with the same quarter in 2023."", 'Analysts expected the unit to post $44.06 billion in sales for the period, according to StreetAccount.', ""That unit includes Caremark, one of the nation's largest pharmacy benefit managers."", 'Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.', ""CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client."", 'Tyson Foods told CNBC in January 2024 that it dropped CVS as the pharmacy benefit manager for its roughly 140,000 employees, but it is unclear if any other companies stopped working with CVS during the year, as well.', ""CVS' pharmacy and consumer wellness division booked $33.51 billion in sales for the fourth quarter, up more than 7% from the same period a year earlier."", 'Analysts expected sales of $33.03 billion for the quarter, StreetAccount said.', ""That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing."", 'The increase was partly driven by higher prescription volume, CVS said.', ""Pharmacy reimbursement pressure, the launch of new generic drugs and lower volume from front-of-store items like pantry food and toiletries, including from decreased store count, weighed on the unit's sales.""]",0.1427858422630649,"Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.","CVS has grappled withrising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs.",0.3987766126791636,The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier.,"CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client.",2025-02-14
Prebiotic soda brand Olipop valued at $1.85 billion in latest funding round,https://www.cnbc.com/2025/02/12/olipop-prebiotic-soda-valued-at-1point85-billion-in-funding-round.html,2025-02-13T16:07:58+0000,"Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday. Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.Olipop's Series C funding round was led by J.P. Morgan Private Capital's Growth Equity Partners. The company plans to use the money it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS. Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category. One in four Gen Z consumers drinks Olipop, according to the company.In early 2024, Olipop reached profitability, the company said. Its annual sales surpassed $400 million last year, doubling the year prior. In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data. Poppi's annual sales reportedly crossed $100 million in 2023. Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game.Poppi has also faced some backlash for its health claims. The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.",CNBC,13/02/2025,"['Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.', 'Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday.', 'Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.', ""Olipop's Series C funding round was led by J.P. Morgan Private Capital's Growth Equity Partners."", 'The company plans to use the money it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.', 'Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS.', 'Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category.', 'One in four Gen Z consumers drinks Olipop, according to the company.', 'In early 2024, Olipop reached profitability, the company said.', 'Its annual sales surpassed $400 million last year, doubling the year prior.', 'In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.', 'For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data.', ""Poppi's annual sales reportedly crossed $100 million in 2023."", 'Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game.', 'Poppi has also faced some backlash for its health claims.', ""The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.""]",0.2496519312747468,"Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.","The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.",0.6967675941331046,"Its annual sales surpassed $400 million last year, doubling the year prior.",Poppi has also faced some backlash for its health claims.,2025-02-14
ESPN host Stephen A. Smith says he would be U.S. president as long as he doesn't have to campaign,https://www.cnbc.com/2025/02/12/espn-host-stephen-a-smith-wouldnt-mind-being-us-president.html,2025-02-13T20:53:35+0000,"Outspoken ESPN personality Stephen A. Smith is not ruling out a presidential run in his future.In an interview with CNBC Sport, Smith said, ""I wouldn't mind being in office.""Yet, the popular television host said it is the campaigning and being a politician that turns him off.""I'm not one of those dudes that's great at shaking hands and kissing babies, per se, and currying favor with politicians and donors. I'm not a beggar. That's not who I am,"" Smith told CNBC Sport.The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.Subscribe here to get access today.However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.""If you tell me that I could catapult to the White House, and I could be in a position to affect millions upon millions of lives, not just in America, but the world over, yeah, that's something that I would entertain,"" he said.The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.In a recent poll by McLaughlin & Associates, 2% of voters said they would vote for Smith in the 2028 presidential election.Watch CNBC Sport's full interview with Smith.",CNBC,13/02/2025,"['Outspoken ESPN personality Stephen A. Smith is not ruling out a presidential run in his future.', 'In an interview with CNBC Sport, Smith said, ""I wouldn\'t mind being in office.', '""Yet, the popular television host said it is the campaigning and being a politician that turns him off.', '""I\'m not one of those dudes that\'s great at shaking hands and kissing babies, per se, and currying favor with politicians and donors.', ""I'm not a beggar."", 'That\'s not who I am,"" Smith told CNBC Sport.', 'The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.', 'Subscribe here to get access today.', 'However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.', '""If you tell me that I could catapult to the White House, and I could be in a position to affect millions upon millions of lives, not just in America, but the world over, yeah, that\'s something that I would entertain,"" he said.', 'The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.', 'In a recent poll by McLaughlin & Associates, 2% of voters said they would vote for Smith in the 2028 presidential election.', ""Watch CNBC Sport's full interview with Smith.""]",0.161248135874975,"""I'm not one of those dudes that's great at shaking hands and kissing babies, per se, and currying favor with politicians and donors.","The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.",0.9959339499473572,"However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.",,2025-02-14
Moderna beats on revenue but loses more than expected as it scales down manufacturing,https://www.cnbc.com/2025/02/14/moderna-mrna-q4-earnings-2024.html,2025-02-14T17:10:35+0000,"In this articleModerna on Friday posted fourth-quarter revenue that beat estimates, but lost more than expected for the period, as the biotech company continues to slash costs and demand for its Covid vaccine falls. It marks another quarter of growing pains for the company, which is racing to launch new products and recover from the rapid decline of its once-booming Covid business. Shares of Moderna climbed more than 3% on Friday. Moderna posted a net loss of $1.12 billion, or $2.91 per share, for the fourth quarter of 2024. That compares with net income of $217 million, or 55 cents per share, reported for the year-ago period.The company said the quarterly loss includes a roughly $238 million noncash charge related to ending a contract manufacturing agreement.In an interview, Moderna Chief Financial Officer Jamey Mock said one of the most important takeaways from the company's full-year 2024 results is that it reduced costs by 27% compared to 2023. By the end of 2025, Moderna expects to cut costs by $1 billion compared to 2024.Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year. Moderna expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter. The company slashed its 2025 sales guidance by roughly $1 billion in January, causing its shares to plummet. The stock is now down more than 20% for the year. At the time, Moderna pointed to increased competition in the Covid market, falling vaccination rates, timing around manufacturing contracts with a handful of countries and uncertainty around what advisors to the Centers for Disease Control and Prevention would recommend for revaccination of respiratory syncytial virus shots. ""Should those potential headwinds all hit, that's what would bring us to the low end of our guidance,"" Mock told CNBC, adding that the company is hoping to ""combat"" the challenges.Here's what Moderna reported for the fourth quarter that ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Moderna posted fourth-quarter sales of $966 million, less than half of the $2.8 billion it recorded during the same period a year ago. The vast majority of that total came from its Covid shot, which raked in $923 million, down 66% from the prior year. That includes $244 million in U.S. sales and $679 million from international markets. Analysts had expected the jab to pull in $909 million in sales for the quarter, according to estimates compiled by StreetAccount. Moderna said the decrease was mainly due to the earlier launch of the newest iteration of its Covid shot last year, which shifted sales into the third quarter. The U.S. Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing Moderna to ""meet demand more effectively ahead of the fourth quarter,"" the company added. Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna. The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May. It is Moderna's second approved product after its Covid vaccine. Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates. Moderna's RSV shot is so far approved for adults age 60 and above in the U.S., European Union, Canada, Norway, Iceland and Qatar, among other countries. The company is betting on a pipeline built around its messenger RNA platform, which is the technology used in both of those products. Moderna plans to beef up its portfolio with 10 new product approvals over the next three years. During the fourth quarter, Moderna submitted three mRNA products for regulatory approval, including its ""next-generation"" Covid shot, combination shot targeting Covid and the flu and RSV vaccine for high-risk adults ages 18 to 59. Moderna expects a decision from the FDA on the next-generation Covid shot in May, and a potential expanded approval for the RSV shot in June, according to Mock.Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products. Some of those products will have data readouts later this year, Mock noted.Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago. That includes $193 million in write-downs of unused doses of the Covid vaccine, among other costs. Research and development expenses dropped 20% to $1.1 billion compared with the same period in 2023. Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu and combination shot programs, and partially offset by increased spending on other new experimental products. Meanwhile, selling, general and administrative expenses for the period fell 25% to $351 million compared with the fourth quarter of 2023. SG&A expenses usually include the costs of promoting, selling and delivering a company's products and services.",CNBC,14/02/2025,"['In this articleModerna on Friday posted fourth-quarter revenue that beat estimates, but lost more than expected for the period, as the biotech company continues to slash costs and demand for its Covid vaccine falls.', 'It marks another quarter of growing pains for the company, which is racing to launch new products and recover from the rapid decline of its once-booming Covid business.', 'Shares of Moderna climbed more than 3% on Friday.', 'Moderna posted a net loss of $1.12 billion, or $2.91 per share, for the fourth quarter of 2024.', 'That compares with net income of $217 million, or 55 cents per share, reported for the year-ago period.', 'The company said the quarterly loss includes a roughly $238 million noncash charge related to ending a contract manufacturing agreement.', ""In an interview, Moderna Chief Financial Officer Jamey Mock said one of the most important takeaways from the company's full-year 2024 results is that it reduced costs by 27% compared to 2023."", 'By the end of 2025, Moderna expects to cut costs by $1 billion compared to 2024.Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year.', 'Moderna expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter.', 'The company slashed its 2025 sales guidance by roughly $1 billion in January, causing its shares to plummet.', 'The stock is now down more than 20% for the year.', 'At the time, Moderna pointed to increased competition in the Covid market, falling vaccination rates, timing around manufacturing contracts with a handful of countries and uncertainty around what advisors to the Centers for Disease Control and Prevention would recommend for revaccination of respiratory syncytial virus shots.', '""Should those potential headwinds all hit, that\'s what would bring us to the low end of our guidance,"" Mock told CNBC, adding that the company is hoping to ""combat"" the challenges.', ""Here's what Moderna reported for the fourth quarter that ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Moderna posted fourth-quarter sales of $966 million, less than half of the $2.8 billion it recorded during the same period a year ago."", 'The vast majority of that total came from its Covid shot, which raked in $923 million, down 66% from the prior year.', 'That includes $244 million in U.S. sales and $679 million from international markets.', 'Analysts had expected the jab to pull in $909 million in sales for the quarter, according to estimates compiled by StreetAccount.', 'Moderna said the decrease was mainly due to the earlier launch of the newest iteration of its Covid shot last year, which shifted sales into the third quarter.', 'The U.S. Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing Moderna to ""meet demand more effectively ahead of the fourth quarter,"" the company added.', 'Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna.', ""The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May."", ""It is Moderna's second approved product after its Covid vaccine."", 'Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates.', ""Moderna's RSV shot is so far approved for adults age 60 and above in the U.S., European Union, Canada, Norway, Iceland and Qatar, among other countries."", 'The company is betting on a pipeline built around its messenger RNA platform, which is the technology used in both of those products.', 'Moderna plans to beef up its portfolio with 10 new product approvals over the next three years.', 'During the fourth quarter, Moderna submitted three mRNA products for regulatory approval, including its ""next-generation"" Covid shot, combination shot targeting Covid and the flu and RSV vaccine for high-risk adults ages 18 to 59.Moderna expects a decision from the FDA on the next-generation Covid shot in May, and a potential expanded approval for the RSV shot in June, according to Mock.', 'Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products.', 'Some of those products will have data readouts later this year, Mock noted.', 'Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago.', 'That includes $193 million in write-downs of unused doses of the Covid vaccine, among other costs.', 'Research and development expenses dropped 20% to $1.1 billion compared with the same period in 2023.', 'Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu and combination shot programs, and partially offset by increased spending on other new experimental products.', 'Meanwhile, selling, general and administrative expenses for the period fell 25% to $351 million compared with the fourth quarter of 2023.', ""SG&A expenses usually include the costs of promoting, selling and delivering a company's products and services.""]",0.0104063483858514,"The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May.","Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products.",-0.0251545102699943,Shares of Moderna climbed more than 3% on Friday.,"Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna.",2025-02-14
"Biogen beats estimates on cost cuts and new drugs like Leqembi, but profit outlook falls short",https://www.cnbc.com/2025/02/12/biogen-biib-earnings-q4-2024.html,2025-02-12T16:20:04+0000,"In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth. But the biotech company's guidance for the current year missed Wall Street's expectations. Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell short of the $16.34 per share that analysts were anticipating, according to LSEG. That reflects a foreign exchange headwind of 35 cents per share, Biogen said.  Biogen expects revenue to decline by a ""mid-single digit"" percentage in 2025 compared with 2024, as sales of its multiple sclerosis products fall. That portion of the business has declined for several quarters as some of those therapies face generic competition. But Biogen expects Leqembi, along with its new rare disease and depression treatments, to help offset that sliding revenue this year. Leqembi generated $87 million in revenue for the fourth quarter, including $50 million in the U.S. Analysts had expected the drug to book $67 million in sales, according to estimates from StreetAccount. Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023. The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, the need for regular brain scans and the difficulty of finding neurologists, among other issues. Here's what Biogen reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Biogen booked sales of $2.46 billion for the quarter, which is up around 3% from the year-earlier period. The drugmaker posted net income of $266.8 million, or $1.83 per share, for the quarter. That compares with net income of $249.7 million, or $1.71 per share, for the same period a year ago. Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $3.44 per share.Biogen first initiated a cost-cutting program in 2023. The company expects to generate $1 billion in gross savings, or $800 million net savings, by the end of 2025. Also on Wednesday, Royalty Pharma announced an agreement to provide $250 million in research and development funding to Biogen for litifilimab, a key drug in its pipeline that is being studied to treat lupus. Royalty Pharma, a leading funder of the biotech and pharmaceutical industry, will be eligible for regulatory milestones and certain royalties.Another new drug, Skyclarys, booked $102 million in sales for the fourth quarter, almost double what it reported in the year-earlier period.Analysts had expected sales of around $112 million for the quarter, according to StreetAccount. Skyclarys came from Biogen's acquisition of Reata Pharmaceuticals in July 2023. The Food and Drug Administration greenlit Skyclarys in 2023, making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5. Zurzuvae, the first pill for postpartum depression, generated fourth-quarter sales of $22.9 million. Analysts had expected it to post $26 million in sales, StreetAccount estimates said.Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion.Correction: Biogen's fourth-quarter sales from multiple sclerosis treatments fell to $1.07 billion. An earlier version misstated the period.",CNBC,12/02/2025,"[""In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth."", ""But the biotech company's guidance for the current year missed Wall Street's expectations."", 'Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell short of the $16.34 per share that analysts were anticipating, according to LSEG.', 'That reflects a foreign exchange headwind of 35 cents per share, Biogen said.', 'Biogen expects revenue to decline by a ""mid-single digit"" percentage in 2025 compared with 2024, as sales of its multiple sclerosis products fall.', 'That portion of the business has declined for several quarters as some of those therapies face generic competition.', 'But Biogen expects Leqembi, along with its new rare disease and depression treatments, to help offset that sliding revenue this year.', 'Leqembi generated $87 million in revenue for the fourth quarter, including $50 million in the U.S. Analysts had expected the drug to book $67 million in sales, according to estimates from StreetAccount.', ""Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023."", ""The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, the need for regular brain scans and the difficulty of finding neurologists, among other issues."", ""Here's what Biogen reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Biogen booked sales of $2.46 billion for the quarter, which is up around 3% from the year-earlier period."", 'The drugmaker posted net income of $266.8 million, or $1.83 per share, for the quarter.', 'That compares with net income of $249.7 million, or $1.71 per share, for the same period a year ago.', 'Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $3.44 per share.', 'Biogen first initiated a cost-cutting program in 2023.', 'The company expects to generate $1 billion in gross savings, or $800 million net savings, by the end of 2025.Also on Wednesday, Royalty Pharma announced an agreement to provide $250 million in research and development funding to Biogen for litifilimab, a key drug in its pipeline that is being studied to treat lupus.', 'Royalty Pharma, a leading funder of the biotech and pharmaceutical industry, will be eligible for regulatory milestones and certain royalties.', 'Another new drug, Skyclarys, booked $102 million in sales for the fourth quarter, almost double what it reported in the year-earlier period.', 'Analysts had expected sales of around $112 million for the quarter, according to StreetAccount.', ""Skyclarys came from Biogen's acquisition of Reata Pharmaceuticals in July 2023."", ""The Food and Drug Administration greenlit Skyclarys in 2023,making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5.Zurzuvae, the first pill for postpartum depression, generated fourth-quarter sales of $22.9 million."", 'Analysts had expected it to post $26 million in sales, StreetAccount estimates said.', ""Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion."", ""Correction: Biogen's fourth-quarter sales from multiple sclerosis treatments fell to $1.07 billion."", 'An earlier version misstated the period.']",0.105757228271201,"Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023.",But the biotech company's guidance for the current year missed Wall Street's expectations.,0.0696674717797173,"In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth.","Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion.",2025-02-14
Zelle payments top $1 trillion in 2024 as network's growth outpaces rivals including PayPal,https://www.cnbc.com/2025/02/12/zelle-payments-top-1-trillion-in-2024.html,2025-02-12T17:20:37+0000,"In this articleZelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.Last year's payment volumes were ""by far the most money ever moved by a P2P payments service in a single year,"" Denise Leonhard, general manager of Zelle, told CNBC.Zelle, which was launched in 2017 in response to fintech platforms such as Venmo, PayPal and CashApp, has some key advantages over those players. EWS is owned by seven of the biggest U.S. banks, including JPMorgan Chase, Bank of America and Wells Fargo, and Zelle allows for instant money transfers made within the apps of thousands of member institutions.Its growth rate last year exceeded that of PayPal, which reported that total P2P payments volumes reached more than $400 billion.Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement. The company has introduced measures to reduce fraud and has said that 99.95% of transactions are free of fraud and scams.Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.""People are using Zelle in order to do things like pay their rent or paying their nanny,"" Leonhard said. ""We want to continue to be top of mind for those consumers to be able to use this every day,"" Leonhard added.",CNBC,12/02/2025,"['In this articleZelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.', 'The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.', 'Last year\'s payment volumes were ""by far the most money ever moved by a P2P payments service in a single year,"" Denise Leonhard, general manager of Zelle, told CNBC.Zelle, which was launched in 2017 in response to fintech platforms such as Venmo, PayPal and CashApp, has some key advantages over those players.', 'EWS is owned by seven of the biggest U.S. banks, including JPMorgan Chase, Bank of America and Wells Fargo, and Zelle allows for instant money transfers made within the apps of thousands of member institutions.', 'Its growth rate last year exceeded that of PayPal, which reported that total P2P payments volumes reached more than $400 billion.', ""Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement."", 'The company has introduced measures to reduce fraud and has said that 99.95% of transactions are free of fraud and scams.', 'Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.', '""People are using Zelle in order to do things like pay their rent or paying their nanny,"" Leonhard said. ""', 'We want to continue to be top of mind for those consumers to be able to use this every day,"" Leonhard added.']",0.0115935725103827,"Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.",Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement.,0.9824706486293248,"The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.",,2025-02-14
Beauty stocks post major losses after a week of worrying results,https://www.cnbc.com/2025/02/07/beauty-stocks-post-major-losses.html,2025-02-07T22:52:18+0000,"In this articleSeveral beauty stocks posted major losses this week, as companies such as E.l.f. Beauty and Estee Lauder reported disappointing earnings and cut guidance.E.l.f. closed out its worst week since August 2018, with shares cratering nearly 29% over the five-day period. The cosmetics brand on Thursday posted a revenue beat for its fiscal third quarter, but missed on adjusted earnings per share and cut its full-year guidance to between $1.3 billion and $1.31 billion in sales, down from a prior range of between $1.32 billion and $1.34 billion.CEO Tarang Amin told CNBC in an interview on the results that the cosmetics sector broadly declined 5% in January, which he attributed to a hangover from holiday discounting and a decrease in online attention to beauty products.Analysts from Morgan Stanley, D.A. Davidson and UBS all downgraded the stock to neutral or equal weight following the report, citing the cut guidance.Estee Lauder shares fell 22% on the week, marking that stock's worst week since November. The company on Tuesday said it would cut between 5,800 and 7,000 jobs by the end of fiscal 2026 and that softening travel retail demand in Asia would damage its net sales in the third quarter.The news sent shares tumbling despite a beat on second-quarter revenue and earnings per share.""Simply said, we lost our agility. We did not capitalize on the higher-growth opportunities,"" CEO Stéphane de La Faverie, who began in the position on Jan. 1, said on the earnings call.Shares of Ulta Beauty and Coty also were under pressure this week, trimming 9% and nearly 8%, respectively, on the week. It was Ulta's worst week since April, and Coty's worst week since October.On E.l.f. Beauty's earnings call Thursday, Amin said the company saw ""a little bit of softness"" at Ulta, one of the brand's retailers, in January.The beauty sector, like others in the U.S., faces the threat of tariffs eating into its profits. China announced tariffs on select U.S. imports Tuesday in response to President Donald Trump's additional 10% tariffs on Chinese goods.E.l.f., for example, manufactures about 80% of its products in China, but Amin told CNBC that the company was ""relieved"" to see Trump impose tariffs of just 10%, when he had previously floated levies as high as 60%.— CNBC's Gabrielle Fonrouge and Adrian van Hauwermeiren contributed to this report.",CNBC,07/02/2025,"['In this articleSeveral beauty stocks posted major losses this week, as companies such as E.l.f.', 'Beauty and Estee Lauder reported disappointing earnings and cut guidance.', 'E.l.f.', 'closed out its worst week since August 2018, with shares cratering nearly 29% over the five-day period.', 'The cosmetics brand on Thursday posted a revenue beat for its fiscal third quarter, but missed on adjusted earnings per share and cut its full-year guidance to between $1.3 billion and $1.31 billion in sales, down from a prior range of between $1.32 billion and $1.34 billion.', 'CEO Tarang Amin told CNBC in an interview on the results that the cosmetics sector broadly declined 5% in January, which he attributed to a hangover from holiday discounting and a decrease in online attention to beauty products.', 'Analysts from Morgan Stanley, D.A. Davidson and UBS all downgraded the stock to neutral or equal weight following the report, citing the cut guidance.', ""Estee Lauder shares fell 22% on the week, marking that stock's worst week since November."", 'The company on Tuesday said it would cut between 5,800 and 7,000 jobs by the end of fiscal 2026 and that softening travel retail demand in Asia would damage its net sales in the third quarter.', 'The news sent shares tumbling despite a beat on second-quarter revenue and earnings per share.', '""Simply said, we lost our agility.', 'We did not capitalize on the higher-growth opportunities,"" CEO Stéphane de La Faverie, who began in the position on Jan. 1, said on the earnings call.', 'Shares of Ulta Beauty and Coty also were under pressure this week, trimming 9% and nearly 8%, respectively, on the week.', ""It was Ulta's worst week since April, and Coty's worst week since October."", 'On E.l.f.', 'Beauty\'s earnings call Thursday, Amin said the company saw ""a little bit of softness"" at Ulta, one of the brand\'s retailers, in January.', 'The beauty sector, like others in the U.S., faces the threat of tariffs eating into its profits.', ""China announced tariffs on select U.S. imports Tuesday in response to President Donald Trump's additional 10% tariffs on Chinese goods."", 'E.l.f.,', 'for example, manufactures about 80% of its products in China, but Amin told CNBC that the company was ""relieved"" to see Trump impose tariffs of just 10%, when he had previously floated levies as high as 60%.—', ""CNBC's Gabrielle Fonrouge and Adrian van Hauwermeiren contributed to this report.""]",0.0361592216036907,"CEO Tarang Amin told CNBC in an interview on the results that the cosmetics sector broadly declined 5% in January, which he attributed to a hangover from holiday discounting and a decrease in online attention to beauty products.","It was Ulta's worst week since April, and Coty's worst week since October.",-0.7392159805578344,"for example, manufactures about 80% of its products in China, but Amin told CNBC that the company was ""relieved"" to see Trump impose tariffs of just 10%, when he had previously floated levies as high as 60%.—","The cosmetics brand on Thursday posted a revenue beat for its fiscal third quarter, but missed on adjusted earnings per share and cut its full-year guidance to between $1.3 billion and $1.31 billion in sales, down from a prior range of between $1.32 billion and $1.34 billion.",2025-02-14
Globalstar CEO Paul Jacobs explains why satellite company moved from NYSE to Nasdaq,https://www.cnbc.com/2025/02/11/globalstar-ceo-paul-jacobs-listing-nyse-nasdaq.html,2025-02-11T18:31:18+0000,"In this articleSatellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.""We did a reverse split — we're a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC's Becky Quick on ""Squawk Box."" ""And people thought of us as a penny stock, and some investors couldn't invest in us, so we're here sort of in conjunction with that,"" Jacobs added.Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning. The stock rose more than 10% in midday trading.""Most of the companies that I've been involved with are tech innovators, and they're on the Nasdaq,"" Jacobs said.Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services. In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar's next-generation low Earth orbit constellation.The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk's Starlink has also pursued in conjunction with T-Mobile.""We've already been working on the satellites,"" Jacobs said. ""We've been in it for a while already.""The pricing of the venture for customers remains an ""unproven business model,"" Jacobs added, as the companies continue to optimize customers' needs.Jacobs, who is also the vice chairman of the National Basketball Association's Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise.""The product is extremely good,"" Jacobs said. ""And we've opened it up to more investors as well — funds can invest now.""Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.""I think the NBA is in a good position,"" he said. ""You never know how it's going to go. I'm obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.",CNBC,11/02/2025,"['In this articleSatellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.', '""We did a reverse split — we\'re a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC\'s Becky Quick on ""Squawk Box."" ""', 'And people thought of us as a penny stock, and some investors couldn\'t invest in us, so we\'re here sort of in conjunction with that,"" Jacobs added.', 'Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning.', 'The stock rose more than 10% in midday trading.', '""Most of the companies that I\'ve been involved with are tech innovators, and they\'re on the Nasdaq,"" Jacobs said.', 'Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services.', 'In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.', ""The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar's next-generation low Earth orbit constellation."", ""The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk's Starlink has also pursued in conjunction with T-Mobile."", '""We\'ve already been working on the satellites,"" Jacobs said. ""', ""We've been in it for a while already."", '""The pricing of the venture for customers remains an ""unproven business model,"" Jacobs added, as the companies continue to optimize customers\' needs.', ""Jacobs, who is also the vice chairman of the National Basketball Association's Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise."", '""The product is extremely good,"" Jacobs said. ""', ""And we've opened it up to more investors as well — funds can invest now."", '""Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.', '""I think the NBA is in a good position,"" he said. ""', ""You never know how it's going to go."", 'I\'m obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.']",0.1002497276686861,"I'm obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.","In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.",0.7967718303203583,The stock rose more than 10% in midday trading.,"""We did a reverse split — we're a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC's Becky Quick on ""Squawk Box."" """,2025-02-14
Coca-Cola says it will sell more soda in plastic bottles if aluminum tariffs take effect,https://www.cnbc.com/2025/02/11/coca-cola-discusses-trump-aluminum-tariffs.html,2025-02-11T17:15:31+0000,"In this articleCoca-Cola will shift more of its packaging from aluminum to plastic bottles if President Donald Trump implements his latest wave of tariffs, CEO James Quincey said Tuesday.""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said on the company's earnings conference call. ""For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,"" Quincey added.Trump on Monday raised tariffs on all aluminum and steel imports to 25% from 10%, starting next month. The action is widely seen as taking aim at China, although the U.S. imports little steel directly from the country.Quincey downplayed the financial hit for Coca-Cola from the tariffs, although he said on CNBC's ""Squawk on the Street"" that the company buys some aluminum from Canada.""I think we're in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,"" Quincey said on the conference call. ""It's not insignificant, but it's not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure,"" the CEO added.In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.Aluminum is generally more expensive than plastic, but it is also infinitely recyclable and one of the most commonly recycled materials. In recent years, the company has shifted to adding more aluminum packaging options, such as canned Dasani and Smartwater.PET, or polyethylene terephthalate, is a lightweight plastic that can be easily recycled but is recycled at a lower rate than aluminum. The recycling rate of PET bottles and jars was 29.1% in 2018, compared with the recycling rate of aluminum beer and soft drink cans at 50.4% in the same year, according to data from the Environmental Protection Agency.Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage.Just two months ago, Coca-Cola slashed its sustainability goals. The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030. The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.",CNBC,11/02/2025,"['In this articleCoca-Cola will shift more of its packaging from aluminum to plastic bottles if President Donald Trump implements his latest wave of tariffs, CEO James Quincey said Tuesday.', '""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said on the company\'s earnings conference call. ""', 'For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,""', 'Quincey added.', 'Trump on Monday raised tariffs on all aluminum and steel imports to 25% from 10%, starting next month.', 'The action is widely seen as taking aim at China, although the U.S. imports little steel directly from the country.', 'Quincey downplayed the financial hit for Coca-Cola from the tariffs, although he said on CNBC\'s ""Squawk on the Street"" that the company buys some aluminum from Canada.', '""I think we\'re in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,"" Quincey said on the conference call. ""', 'It\'s not insignificant, but it\'s not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure,"" the CEO added.', 'In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.', 'Aluminum is generally more expensive than plastic, but it is also infinitely recyclable and one of the most commonly recycled materials.', 'In recent years, the company has shifted to adding more aluminum packaging options, such as canned Dasani and Smartwater.', 'PET, or polyethylene terephthalate, is a lightweight plastic that can be easily recycled but is recycled at a lower rate than aluminum.', 'The recycling rate of PET bottles and jars was 29.1% in 2018, compared with the recycling rate of aluminum beer and soft drink cans at 50.4% in the same year, according to data from the Environmental Protection Agency.', ""Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage."", 'Just two months ago, Coca-Cola slashed its sustainability goals.', 'The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030.', 'The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.']",-0.0358323272255695,"The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.","Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage.",-0.2568704088528951,"In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.","The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030.",2025-02-14
"As Target and other retailers drop DEI programs, Black founders could face tougher battle to get and stay on shelves",https://www.cnbc.com/2025/02/14/target-walmart-dei-decisions-could-hurt-black-founders.html,2025-02-14T16:17:44+0000,"Fragrance brand Brown Girl Jane's perfume bottles sit on shelves at Sephora near some of the most storied labels in the fashion and beauty world, including Prada and Dior.For the Black-owned brand, getting a retailer to bet on it was just the start, Brown Girl Jane CEO and founder Malaika Jones said. She said Sephora has supported the company so it can better compete with well-known brands with huge marketing budgets and glossy celebrity endorsements.Brown Girl Jane received a $100,000 grant last year from Sephora to help grow its business and participated in Sephora's Accelerate program, which aims to boost founders who are people of color. Sephora spotlighted the fragrance brand in an email to customers in early February, putting it in front of potential shoppers who don't know its name. Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago.While Sephora has put its weight behind its brand incubator, much larger retailers like Walmart and Target recently scaled back similar efforts focused on finding and funding more brands founded by people of color. Without that support from the retailers themselves, brands like Brown Girl Jane could face a tougher time getting on shelves — and succeeding once they get there.""For small brands, but for any brands, really, it's a constant fight for relevance and for visibility,"" Jones said. ""And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves.""When retailers launched supplier diversity programs — many of them in the months after police killed George Floyd in 2020 — top industry leaders including Walmart CEO Doug McMillon and Target CEO Brian Cornell spoke out about the institutional barriers that people of color face, including when financing their businesses. Now, as more retailers drop diversity, equity and inclusion programs, Black-owned brands may find it harder to clear those hurdles.In January, Target dropped specific DEI pledges that it made four years ago after Floyd was murdered a short distance from its Minneapolis headquarters. Among those goals, the big-box retailer had committed to adding products from more than 500 Black-owned brands to its shelves or website and spending $2 billion with Black-owned businesses by 2025.Late last year, Walmart confirmed that it was ending key diversity initiatives, including winding down the Center for Racial Equity, a nonprofit that the retailer started and funded with $100 million to tackle racial inequities. It had chosen finance as one of those focus areas, noting the gap in funding for Black entrepreneurs.Gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers.Not every major retailer has dropped DEI initiatives. Sephora, Costco and E.l.f. Beauty, among others, have reaffirmed their commitments. And the most prominent effort to increase the share of Black-owned brands on retail shelves, the 15 Percent Pledge, still has major backers.Companies from Google to Ford and Tractor Supply have rolled back their initiatives to boost representation of people of color, women and LGBTQ+ people, as political backlash and pressure from conservative activists has intensified. The trend only accelerated after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as ""dangerous, demeaning, and immoral race- and sex-based preferences.""It's a sharp change from about five years ago, when companies released a wave of announcements committing to fighting inequity. They made bold pledges to add more diversity to their workforces and C-suites, seek out Black and minority vendors and donate to philanthropic causes that fought racism and supported expanded opportunities for marginalized groups.Fear of litigation, activist investor scrutiny and political pressure has caused companies to backpedal or keep their initiatives below the radar, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI.One of those lawsuits targeted The Fearless Fund, an Atlanta-based venture capital fund dedicated to awarding grants to businesses founded by Black women to bridge a longstanding funding gap. Only 1.3% of the more than $345 billion raised by venture-backed startups in 2021 went to Black founders, according to Deloitte and Venture Forward's 2023 report. About 2.4% went to startups led by female founders and 2.1% of that total went to startups led by Hispanic founders.American Alliance for Equal Rights, a conservative group founded by Edward Blum, sued The Fearless Fund in 2023, accusing it of discriminating against non-Black business owners. Blum previously fought against race-based college admissions, a campaign that led to the Supreme Court's ruling that affirmative action policies are unconstitutional — which some companies cited last year in ending their DEI initiatives.As part of a settlement reached last year, The Fearless Fund shut down its grant program.Solorzano said that lawsuit had a chilling effect and will ""seriously undermine some of these [supplier] initiatives."" He said he expects more corporations to scrub numbers from their diversity programs, including supplier programs focused on increasing Black- and minority-owned brands on shelves.Yet ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, he said. Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors.Even as some retailers walk back diversity pledges, Sephora, Costco and E.l.f. Beauty, have doubled down on those efforts not as a feel-good move, but as a meaningful part of their business strategies.Sephora, a 15 Percent Pledge member which is owned by LVMH, has increased the percentage of Black-owned brands on its shelves from 3% in 2020 to about 10% as of 2025, said Artemis Patrick, president and CEO of Sephora North America. In its hair category, 15% of the brands are Black-owned.Sephora started Accelerate in 2016 with a focus on female founders. The six-month incubator helps mentor business owners, connects them to investors and gives them the opportunity to launch at Sephora.The retailer pivoted the program in 2020 to focus on Black and other minority founders to address ""the need of the evolving consumer and where we truly did feel like we had an assortment gap,"" Patrick said.So far, more than 33 Black- and minority-owned brands have gone through the incubator, she said.""Our business is really good and the fact that we've been really focused on diversifying our assortment, I think there's a strong correlation,"" she said.She added ""it would be very strange in a beauty category to not be driving diversity in your assortment that meets the needs of your clients.""At Costco's annual meeting last month, 98% of shareholders rejected a proposal that requested a report on the risk of Costco maintaining diversity, equity and inclusion initiatives.In a proxy statement ahead of the meeting, the warehouse club's board of directors said diversity benefits its business and helps it better serve a wide range of customers.""Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the 'treasure hunt' that our customers value,"" it wrote.Costco's board added that diversity across its suppliers ""fosters creativity and innovation in the merchandise and services that we offer our members.""Tarang Amin, CEO of popular Gen Z makeup brand E.l.f. Beauty, called the company's diversity ""a key competitive advantage in terms of our results"" in an interview with CNN earlier this month. He said the company's employees are 74% women, 76% Gen Z and millennial and over 44% diverse and ""reflect the community we serve.""Nearly five years ago, Aurora James challenged companies in an Instagram post to dedicate more of their shelf space to Black-owned businesses. That idea, which she proposed days after Floyd's murder, started the 15 Percent Pledge.""So many of your businesses are built on Black spending power,"" she wrote at the time. ""So many of your stores are set up in Black communities. So many of your posts seen on Black feeds. This is the least you can do for us. We represent 15% of the population and we need to represent 15% of your shelf space.""Sephora was the first company to sign the pledge. About 22 companies are active participants in the pledge, including Macy's and Nordstrom, according to the nonprofit. The 15 Percent Pledge has a directory of Black-owned brands on its website. It also awards grants to businesses and raises money to back Black-owned businesses through an annual gala, which drew celebrities, actors and business leaders including Kim Kardashian, Kelly Rowland and Jesse Williams earlier this month.Some of the changes inspired by the pledge are visible on shelves.Sephora has more than tripled the Black-owned brands on its shelves in the past five years. In the email to customers, it noted that number had spiked from eight to 30 since it took the Fifteen Percent Pledge in 2020.Those brands include makeup, shampoos and more backed by small entrepreneurs and celebrities, including Fenty Beauty by Rihanna, Pattern by Tracee Ellis Ross and Sienna Naturals, which was co-founded by Hannah Diop and actress Issa Rae.Nordstrom, which also signed on to the 15 Percent Pledge, has now added more Black-owned brands, too, including Buttah Skin, Briogeo and Honor the Gift.And Macy's, another 15 Percent Pledge participant, has had an accelerator for over a decade which was launched to support underrepresented brand owners and founders. The Workshop, which started in 2011, offers grant funding and education for companies seeking to make it on retailers' shelves and websites.James, who herself is a Black founder of a luxury brand called Brother Vellies, said she's disheartened to see companies back away from supporting smaller Black- and minority-owned suppliers.""The idea is not about giving preferential treatment,"" she said. ""The idea is about making sure that we cast our net wide enough that we're not just looking at the obvious channels.""By relying more on big conglomerates, retailers miss out on funding smaller U.S. business that create jobs and stimulate the local economy, she said.""In a time when I think small business all across America is suffering, to specifically target groups of founders and say, 'You can't get access or opportunity,' just feels like a blow to all small businesses across America,"" she said.She said the reversal of DEI by some companies show their commitments never ran deep.""Target never took the pledge. Walmart never took the pledge,"" she said. ""I don't think that they were ever really that serious about what they were doing.""Not every company has stuck with the pledge. Gap did not renew with the group late last year — but said in a statement that it's not backing away from DEI efforts. Over the past year, the company has gone through major changes as part of a turnaround led by Richard Dickson, its new CEO.In a statement, the denim and apparel retailer, which also includes Old Navy and Athleta, said the pledge looked different for the company because it sells and manufacturers its own brands. It said it ""joined the pledge with the goal of increasing our diverse access and pipeline programs, and we met and exceeded that goal.""A Gap spokesman declined to share specific goals, but said they focused on recruiting talent from diverse backgrounds.This week, Gap rolled out a limited-time initiative to support Black businesses by selling shirts and hoodies from six Black designers from Harlem's Fashion Row online and in select stores.Walmart and Target have downplayed concerns that they will start to carry fewer Black-owned brands. A Walmart spokesperson pointed to the company's Supplier Inclusion Program, which focuses on adding products from smaller vendors. She said the company also works with banks and lenders to expedite payments for orders or connect suppliers to loans.Even as Target phases out DEI goals for Black-owned businesses, the discounter will keep offering Black-owned and minority-owned brands, a spokesman said. On its website, it's promoting its collection of Black History Month items. He said Target will offer its Forward Founders program two times per year, which is designed for early-stage consumer packaged goods companies across categories including beauty, food and pets.When Target launched Forward Founders in 2021, the company said the program was ""designed to help Black-owned businesses increase their potential for long-term success in retail.""Since last year, Target's website has said the program is ""evolving"" — noting that founders no longer fill out an application for programs and Target will reach out to them if they're ""a strategic fit."" A spokesman said the company's changes to its DEI initiatives do not affect its programs to boost founders, but did not offer more detail.Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.In an Instagram post, social media personality, actress, and entrepreneur Tabitha Brown said ""it's definitely heartbreaking to feel unsupported."" But Brown, who has an active contract with Target, encouraged shoppers to use their dollars strategically when shopping Target's shelves.She's developed merchandise with Target, including a collection of clothing, swimwear and home decor. Target also carries Donna's Recipe, a haircare brand she co-founded.""You can still go into those stores, if you choose to, and buy specific brands that you want to support. And let the other things not get your money,"" she said.She said if sales of Black-owned brands fall, retailers will remove them from their shelves.""And then what happens to all the businesses who worked so hard to get where they are?"" she said.Handbag designer Brandon Blackwood said he worries that it will be harder for the next founder like him to get picked up by a major retailer.His brand took off in 2020 during the Black Lives Matter movement, after he made a tote decorated with three words instead of a logo: ""End Systemic Racism."" The bag gained traction through social media.Yet he said major retailers that picked up handbags from his brand at the time, including Neiman Marcus, Bloomingdale's and Nordstrom, ""helped put my product in front of a lot of people that wouldn't necessarily have seen it.""""That really helped us and that really helped our brand awareness,"" he said.If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.For Brown Girl Jane, winning the confidence and business of major retailers — and particularly, Sephora — has been game changing, said Jones, the company's founder and CEO. The brand got picked up first by Nordstrom in 2021. Now, Macy's, Saks Fifth Avenue and Bloomingdale's also sell its fragrances.Sephora is its the biggest wholesale deal so far: The beauty retailer carries some exclusive scents, including Carnivale, a fragrance that sells for $102 and blends together juicy mango, sandalwood and creamy vanilla.Jones said the company's annual revenue is now in the $5 million to $7 million range. Roughly half of the company's sales come from wholesale.She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they've also been ""the biggest champion and a true partner of the brand.""And she said that customers of all races desire her brand — and others from Black founders. About 40% of Brown Girl Jane's customers are white, she said.By backing away from DEI, she said companies also send a message to their buyers that casting a wide net for new brands doesn't matter.""It's one thing to say 'Ok, yeah. They [buyers] can still find who they find,'"" she said. ""But we know that without intentionality, a lot of these brands are just going to be overlooked.""",CNBC,14/02/2025,"[""Fragrance brand Brown Girl Jane's perfume bottles sit on shelves at Sephora near some of the most storied labels in the fashion and beauty world, including Prada and Dior."", 'For the Black-owned brand, getting a retailer to bet on it was just the start, Brown Girl Jane CEO and founder Malaika Jones said.', 'She said Sephora has supported the company so it can better compete with well-known brands with huge marketing budgets and glossy celebrity endorsements.', ""Brown Girl Jane received a $100,000 grant last year from Sephora to help grow its business and participated in Sephora's Accelerate program, which aims to boost founders who are people of color."", ""Sephora spotlighted the fragrance brand in an email to customers in early February, putting it in front of potential shoppers who don't know its name."", ""Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago."", 'While Sephora has put its weight behind its brand incubator, much larger retailers like Walmart and Target recently scaled back similar efforts focused on finding and funding more brands founded by people of color.', 'Without that support from the retailers themselves, brands like Brown Girl Jane could face a tougher time getting on shelves — and succeeding once they get there.', '""For small brands, but for any brands, really, it\'s a constant fight for relevance and for visibility,"" Jones said. ""', ""And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves."", '""When retailers launched supplier diversity programs — many of them in the months after police killed George Floyd in 2020 — top industry leaders including Walmart CEO Doug McMillon and Target CEO Brian Cornell spoke out about the institutional barriers that people of color face, including when financing their businesses.', 'Now, as more retailers drop diversity, equity and inclusion programs, Black-owned brands may find it harder to clear those hurdles.', 'In January, Target dropped specific DEI pledges that it made four years ago after Floyd was murdered a short distance from its Minneapolis headquarters.', 'Among those goals, the big-box retailer had committed to adding products from more than 500 Black-owned brands to its shelves or website and spending $2 billion with Black-owned businesses by 2025.Late last year, Walmart confirmed that it was ending key diversity initiatives, including winding down the Center for Racial Equity, a nonprofit that the retailer started and funded with $100 million to tackle racial inequities.', 'It had chosen finance as one of those focus areas, noting the gap in funding for Black entrepreneurs.', ""Gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers."", 'Not every major retailer has dropped DEI initiatives.', 'Sephora, Costco and E.l.f.', 'Beauty, among others, have reaffirmed their commitments.', 'And the most prominent effort to increase the share of Black-owned brands on retail shelves, the 15 Percent Pledge, still has major backers.', 'Companies from Google to Ford and Tractor Supply have rolled back their initiatives to boost representation of people of color, women and LGBTQ+ people, as political backlash and pressure from conservative activists has intensified.', 'The trend only accelerated after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as ""dangerous, demeaning, and immoral race- and sex-based preferences.', '""It\'s a sharp change from about five years ago, when companies released a wave of announcements committing to fighting inequity.', 'They made bold pledges to add more diversity to their workforces and C-suites, seek out Black and minority vendors and donate to philanthropic causes that fought racism and supported expanded opportunities for marginalized groups.', 'Fear of litigation, activist investor scrutiny and political pressure has caused companies to backpedal or keep their initiatives below the radar, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI.One of those lawsuits targeted The Fearless Fund, an Atlanta-based venture capital fund dedicated to awarding grants to businesses founded by Black women to bridge a longstanding funding gap.', ""Only 1.3% of the more than $345 billion raised by venture-backed startups in 2021 went to Black founders, according to Deloitte and Venture Forward's 2023 report."", 'About 2.4% went to startups led by female founders and 2.1% of that total went to startups led by Hispanic founders.', 'American Alliance for Equal Rights, a conservative group founded by Edward Blum, sued The Fearless Fund in 2023, accusing it of discriminating against non-Black business owners.', ""Blum previously fought against race-based college admissions, a campaign that led to the Supreme Court's ruling that affirmative action policies are unconstitutional — which some companies cited last year in ending their DEI initiatives."", 'As part of a settlement reached last year, The Fearless Fund shut down its grant program.', 'Solorzano said that lawsuit had a chilling effect and will ""seriously undermine some of these [supplier] initiatives.""', 'He said he expects more corporations to scrub numbers from their diversity programs, including supplier programs focused on increasing Black- and minority-owned brands on shelves.', 'Yet ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, he said.', 'Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors.', 'Even as some retailers walk back diversity pledges, Sephora, Costco and E.l.f.', 'Beauty, have doubled down on those efforts not as a feel-good move, but as a meaningful part of their business strategies.', 'Sephora, a 15 Percent Pledge member which is owned by LVMH, has increased the percentage of Black-owned brands on its shelves from 3% in 2020 to about 10% as of 2025, said Artemis Patrick, president and CEO of Sephora North America.', 'In its hair category, 15% of the brands are Black-owned.', 'Sephora started Accelerate in 2016 with a focus on female founders.', 'The six-month incubator helps mentor business owners, connects them to investors and gives them the opportunity to launch at Sephora.', 'The retailer pivoted the program in 2020 to focus on Black and other minority founders to address ""the need of the evolving consumer and where we truly did feel like we had an assortment gap,"" Patrick said.', 'So far, more than 33 Black- and minority-owned brands have gone through the incubator, she said.', '""Our business is really good and the fact that we\'ve been really focused on diversifying our assortment, I think there\'s a strong correlation,"" she said.', 'She added ""it would be very strange in a beauty category to not be driving diversity in your assortment that meets the needs of your clients.', '""At Costco\'s annual meeting last month, 98% of shareholders rejected a proposal that requested a report on the risk of Costco maintaining diversity, equity and inclusion initiatives.', ""In a proxy statement ahead of the meeting, the warehouse club's board of directors said diversity benefits its business and helps it better serve a wide range of customers."", '""Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the \'treasure hunt\' that our customers value,"" it wrote.', 'Costco\'s board added that diversity across its suppliers ""fosters creativity and innovation in the merchandise and services that we offer our members.', '""Tarang Amin, CEO of popular Gen Z makeup brand E.l.f.', 'Beauty, called the company\'s diversity ""a key competitive advantage in terms of our results"" in an interview with CNN earlier this month.', 'He said the company\'s employees are 74% women, 76% Gen Z and millennial and over 44% diverse and ""reflect the community we serve.', '""Nearly five years ago, Aurora James challenged companies in an Instagram post to dedicate more of their shelf space to Black-owned businesses.', ""That idea, which she proposed days after Floyd's murder, started the 15 Percent Pledge."", '""So many of your businesses are built on Black spending power,"" she wrote at the time. ""', 'So many of your stores are set up in Black communities.', 'So many of your posts seen on Black feeds.', 'This is the least you can do for us.', 'We represent 15% of the population and we need to represent 15% of your shelf space.', '""Sephora was the first company to sign the pledge.', ""About 22 companies are active participants in the pledge, including Macy's and Nordstrom, according to the nonprofit."", 'The 15 Percent Pledge has a directory of Black-owned brands on its website.', 'It also awards grants to businesses and raises money to back Black-owned businesses through an annual gala, which drew celebrities, actors and business leaders including Kim Kardashian, Kelly Rowland and Jesse Williams earlier this month.', 'Some of the changes inspired by the pledge are visible on shelves.', 'Sephora has more than tripled the Black-owned brands on its shelves in the past five years.', 'In the email to customers, it noted that number had spiked from eight to 30 since it took the Fifteen Percent Pledge in 2020.Those brands include makeup, shampoos and more backed by small entrepreneurs and celebrities, including Fenty Beauty by Rihanna, Pattern by Tracee Ellis Ross and Sienna Naturals, which was co-founded by Hannah Diop and actress Issa Rae.', 'Nordstrom, which also signed on to the 15 Percent Pledge, has now added more Black-owned brands, too, including Buttah Skin, Briogeo and Honor the Gift.', ""And Macy's, another 15 Percent Pledge participant, has had an accelerator for over a decade which was launched to support underrepresented brand owners and founders."", ""The Workshop, which started in 2011, offers grant funding and education for companies seeking to make it on retailers' shelves and websites."", ""James, who herself is a Black founder of a luxury brand called Brother Vellies, said she's disheartened to see companies back away from supporting smaller Black- and minority-owned suppliers."", '""The idea is not about giving preferential treatment,"" she said. ""', ""The idea is about making sure that we cast our net wide enough that we're not just looking at the obvious channels."", '""By relying more on big conglomerates, retailers miss out on funding smaller U.S. business that create jobs and stimulate the local economy, she said.', '""In a time when I think small business all across America is suffering, to specifically target groups of founders and say, \'You can\'t get access or opportunity,\' just feels like a blow to all small businesses across America,"" she said.', 'She said the reversal of DEI by some companies show their commitments never ran deep.', '""Target never took the pledge.', 'Walmart never took the pledge,"" she said. ""', ""I don't think that they were ever really that serious about what they were doing."", '""Not every company has stuck with the pledge.', ""Gap did not renew with the group late last year — but said in a statement that it's not backing away from DEI efforts."", 'Over the past year, the company has gone through major changes as part of a turnaround led by Richard Dickson, its new CEO.In a statement, the denim and apparel retailer, which also includes Old Navy and Athleta, said the pledge looked different for the company because it sells and manufacturers its own brands.', 'It said it ""joined thepledge with the goal of increasing our diverse access and pipeline programs, and we met and exceeded that goal.', '""A Gap spokesman declined to share specific goals, but said they focused on recruiting talent from diverse backgrounds.', ""This week, Gap rolled out a limited-time initiative to support Black businesses by selling shirts and hoodies from six Black designers from Harlem's Fashion Row online and in select stores."", 'Walmart and Target have downplayed concerns that they will start to carry fewer Black-owned brands.', ""A Walmart spokesperson pointed to the company'sSupplier Inclusion Program, which focuses on adding products from smaller vendors."", 'She said the company also works with banks and lenders to expedite payments for orders or connect suppliers to loans.', 'Even as Target phases out DEI goals for Black-owned businesses, the discounter will keep offering Black-owned and minority-owned brands, a spokesman said.', ""On its website, it's promoting its collection of Black History Month items."", 'He said Target will offer itsForward Foundersprogram two times per year, which is designed for early-stage consumer packaged goods companies across categories including beauty, food and pets.', 'When Target launched Forward Founders in 2021, the company said the program was ""designed to help Black-owned businesses increase their potential for long-term success in retail.', '""Since last year, Target\'s website has said the program is ""evolving"" —noting that founders no longer fill out an application for programs and Target will reach out to them if they\'re ""a strategic fit.', '""A spokesman said the company\'s changes to its DEI initiatives do not affect its programs to boost founders, but did not offer more detail.', 'Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.', 'In an Instagram post, social media personality, actress, and entrepreneur Tabitha Brown said ""it\'s definitely heartbreaking to feel unsupported.""', ""But Brown, who has an active contract with Target, encouraged shoppers to use their dollars strategically when shopping Target's shelves."", ""She's developed merchandise with Target, including a collection of clothing, swimwear and home decor."", ""Target also carries Donna's Recipe, a haircare brand she co-founded."", '""You can still go into those stores, if you choose to, and buy specific brands that you want to support.', 'And let the other things not get your money,"" she said.', 'She said if sales of Black-owned brands fall, retailers will remove them from their shelves.', '""And then what happens to all the businesses who worked so hard to get where they are?""', 'she said.', 'Handbag designer Brandon Blackwood said he worries that it will be harder for the next founder like him to get picked up by a major retailer.', 'His brand took off in 2020 during the Black Lives Matter movement, after he made a tote decorated with three words instead of a logo: ""End Systemic Racism.""', 'The bag gained traction through social media.', 'Yet he said major retailers that picked up handbags from his brand at the time, including Neiman Marcus, Bloomingdale\'s and Nordstrom, ""helped put my product in front of a lot of people that wouldn\'t necessarily have seen it.', '""""That really helped us and that really helped our brand awareness,"" he said.', 'If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.', ""For Brown Girl Jane, winning the confidence and business of major retailers — and particularly, Sephora — has been game changing, said Jones, the company's founder and CEO."", 'The brand got picked up first by Nordstrom in 2021.', ""Now, Macy's, Saks Fifth Avenue and Bloomingdale's also sell its fragrances."", 'Sephora is its the biggest wholesale deal so far: The beauty retailer carries some exclusive scents, including Carnivale, a fragrance that sells for $102 and blends together juicy mango, sandalwood and creamy vanilla.', ""Jones said the company's annual revenue is now in the $5 million to $7 million range."", ""Roughly half of the company's sales come from wholesale."", 'She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they\'ve also been ""the biggest champion and a true partner of the brand.', '""And she said that customers of all races desire her brand — and others from Black founders.', ""About 40% of Brown Girl Jane's customers are white, she said."", ""By backing away from DEI, she said companies also send a message to their buyers that casting a wide net for new brands doesn't matter."", '""It\'s one thing to say \'Ok, yeah.', 'They [buyers] can still find who they find,\'"" she said. ""', 'But we know that without intentionality, a lot of these brands are just going to be overlooked.""']",0.1672524808533432,"She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they've also been ""the biggest champion and a true partner of the brand.","Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.",-0.069505982539233,Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago.,"If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.",2025-02-14
CFPB’s new leadership begins staff purge with dozens of employees terminated,https://www.cnbc.com/2025/02/12/cfpb-staff-purge-begins-with-dozens-of-employees-terminated.html,2025-02-12T21:17:35+0000,"The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation.The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.The move comes amid a broader effort under President Donald Trump to trim federal staff. The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported. That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency. The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work. Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency's dismissal notice. ""It's almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce.""Hickman, who said she started in her CFPB role in June of 2023, said the agency's new leadership didn't follow established federal protocol for dismissing probationary employees. ""A lot of us are prepared to fight, and we are examining all our legal avenues,"" she said.The terminations have sowed more confusion at the bureau, as several of those being laid off had already accepted federal buyout offers, said one of the people.Some being dismissed received form letters that did not include their specific names and titles, but left some fields filled with generic placeholders, said this person.""Unfortunately, the Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not meet the Agency's current needs,"" the CFPB told some who were dismissed, according to people who received the notices.The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person. The agency had about 1,700 employees before the job cuts.The CFPB declined to comment.",CNBC,12/02/2025,"['The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation.', 'The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.', 'Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.', 'The move comes amid a broader effort under President Donald Trump to trim federal staff.', 'The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported.', 'That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.', ""CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency."", 'The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work.', 'Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency\'s dismissal notice. ""', ""It's almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce."", '""Hickman, who said she started in her CFPB role in June of 2023, said the agency\'s new leadership didn\'t follow established federal protocol for dismissing probationary employees. ""', 'A lot of us are prepared to fight, and we are examining all our legal avenues,"" she said.', 'The terminations have sowed more confusion at the bureau, as several of those being laid off had already accepted federal buyout offers, said one of the people.', 'Some being dismissed received form letters that did not include their specific names and titles, but left some fields filled with generic placeholders, said this person.', '""Unfortunately, the Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not meet the Agency\'s current needs,"" the CFPB toldsome who weredismissed, according topeoplewho received the notices.', ""The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person."", 'The agency had about 1,700 employees before the job cuts.', 'The CFPB declined to comment.']",-0.010750554288755,"CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency.","Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency's dismissal notice. """,-0.488809734582901,"The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person.",That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.,2025-02-14
CFPB heads of supervision and enforcement announce resignations after stop-work order,https://www.cnbc.com/2025/02/11/cfpb-leaders-announce-resignations-after-stop-work-order.html,2025-02-11T17:32:06+0000,"Two senior leaders at the Consumer Financial Protection Bureau announced their resignations the day after acting Director Russell Vought instructed all staff to cease working.In separate memos sent early Tuesday, Lorelei Salas, supervision director for the agency, and Eric Halperin, enforcement director, said they could no longer serve in their respective roles after Vought's mandate, according to emails obtained by CNBC.""The Bureau has been instructed to stand down,"" Salas said. ""I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.""""I don't believe in these conditions I can effectively serve in my role, which is protecting American consumers,"" Halperin said. ""Today I made the difficult decision to resign.""A representative for the Office of Management and Budget, speaking on behalf of the CFPB, said in a statement to CNBC later Tuesday that Halperin and Salas had been placed on administrative leave prior to their announcements of resignation.The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years. The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.CFPB employees have been on edge since operatives of Elon Musk's advisory group known as the Department of Government Efficiency arrived at the regulator late last week. Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.""I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,"" Salas wrote. ""The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.""",CNBC,11/02/2025,"['Two senior leaders at the Consumer Financial Protection Bureau announced their resignations the day after acting Director Russell Vought instructed all staff to cease working.', 'In separate memos sent early Tuesday, Lorelei Salas, supervision director for the agency, and Eric Halperin, enforcement director, said they could no longer serve in their respective roles after Vought\'s mandate, according to emails obtained by CNBC.""The Bureau has been instructed to stand down,"" Salas said. ""', 'I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.', '""""I don\'t believe in these conditions I can effectively serve in my role, which is protecting American consumers,"" Halperin said. ""', 'Today I made the difficult decision to resign.', '""A representative for the Office of Management and Budget, speaking on behalf of the CFPB, said in a statement to CNBC later Tuesday that Halperin and Salas had been placed on administrative leave prior to their announcements of resignation.', 'The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years.', 'The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.', ""CFPB employees have been on edge since operatives ofElon Musk's advisory group known as the Department of Government Efficiency arrived at the regulator late last week."", 'Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.', '""I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,"" Salas wrote. ""', 'The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.""']",-0.0320221907008197,"Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.","The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.",-0.3717827200889587,"The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.","The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years.",2025-02-14
"Restaurant Brands reports 2.5% same-store sales growth, fueled by Burger King and Popeyes",https://www.cnbc.com/2025/02/12/restaurant-brands-international-qsr-q4-2024-earnings.html,2025-02-12T15:39:49+0000,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.Shares of the company were roughly flat in morning trading.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier.Excluding corporate restructuring fees and other items, Restaurant Brands earned 81 cents per share.Net sales climbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year.Still, the company saw better-than-expected sales across all of its segments during the quarter.""If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,"" Restaurant Brands CEO Josh Kobza told CNBC.In the fourth quarter, McDonald's U.S. same-store sales fell 1.4%, hurt by an E. coli outbreak linked to its Quarter Pounder burgers. And Popeyes' rival KFC, which is owned by Yum Brands, reported same-store sales declines of 5% for its U.S. restaurants.Burger King, meanwhile, posted U.S. same-store sales growth of 1.5%, beating StreetAccount estimates of 0.8%.Burger King U.S. President Tom Curtis credited its Addams Family menu, timed for Halloween, and its Million Dollar Whopper promotion, which sold 1 million Whopper burgers for just $1. While the burger chain has been in turnaround mode for more than two years, its quarterly results have shown signs that the strategy has won back customers.This year, Restaurant Brands also plans to start selling off some of the restaurants it acquired through its purchase of Carrols Restaurant Group. The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines.""I think we got some really compelling value offerings into the market in [the fourth quarter], and that helped our performance, both on sales and traffic,"" Kobza said.Tim Hortons reported domestic same-store sales growth of 2.5%. The Canadian coffee chain accounts for more than 40% of Restaurant Brands' quarterly revenue.In particular, Tims saw morning sales accelerate, thanks to stronger demand for its breakfast sandwiches and wraps. Unusually warm temperatures in the fourth quarter also led to 6% growth in cold drinks, driving sales of its Iced Capps and cold brew beverages.In 2025, Restaurant Brands expects Tims to return to net unit growth, driven in part by expansion in underpenetrated rural areas and western Canada.Restaurant Brands' international restaurants saw same-store sales growth of 4.7%, beating StreetAccount estimates of 2.7%. The company credited its Burger King and Popeyes locations for fueling higher sales.The company also increased its footprint by 3.4%, adding 1,055 new restaurants from the same period a year ago.Looking to 2025, Restaurant Brands plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives.",CNBC,12/02/2025,"[""In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants."", 'Shares of the company were roughly flat in morning trading.', ""Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier."", 'Excluding corporate restructuring fees and other items, Restaurant Brands earned 81 cents per share.', 'Net salesclimbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year.', 'Still, the company saw better-than-expected sales across all of its segments during the quarter.', '""If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,"" Restaurant Brands CEO Josh Kobza told CNBC.In the fourth quarter, McDonald\'s U.S. same-store sales fell 1.4%, hurt by an E. coli outbreak linked to its Quarter Pounder burgers.', ""And Popeyes' rival KFC, which is owned by Yum Brands, reported same-store sales declines of 5% for its U.S. restaurants."", 'Burger King, meanwhile, posted U.S. same-store sales growth of 1.5%, beating StreetAccount estimates of 0.8%.Burger King U.S. President Tom Curtis credited its Addams Family menu, timed for Halloween, and its Million Dollar Whopper promotion, which sold 1 million Whopper burgers for just $1.', 'While the burger chain has been in turnaround mode for more than two years, its quarterly results have shown signs that the strategy has won back customers.', 'This year, Restaurant Brands also plans to start selling off some of the restaurants it acquired through its purchase of Carrols Restaurant Group.', ""The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines."", '""I think we got some really compelling value offerings into the market in [the fourth quarter], and that helped our performance, both on sales and traffic,"" Kobza said.', 'Tim Hortons reported domestic same-store sales growth of 2.5%.', ""The Canadian coffee chain accounts for more than 40% of Restaurant Brands' quarterly revenue."", 'In particular, Tims saw morning sales accelerate, thanks to stronger demand for its breakfast sandwiches and wraps.', 'Unusually warm temperatures in the fourth quarter also led to 6% growth in cold drinks, driving sales of its Iced Capps and cold brew beverages.', 'In 2025, Restaurant Brands expects Tims to return to net unit growth, driven in part by expansion in underpenetrated rural areas and western Canada.', ""Restaurant Brands' international restaurants saw same-store sales growth of 4.7%, beating StreetAccount estimates of 2.7%."", 'The company credited its Burger King and Popeyes locations for fueling higher sales.', 'The company also increased its footprint by 3.4%, adding 1,055 new restaurants from the same period a year ago.', 'Looking to 2025, Restaurant Brands plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives.']",0.284929572244848,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.","The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines.",0.6721012459860908,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.","Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier.",2025-02-14
Trump is unlikely to end Medicare drug price talks — here's what that means for patients and pharma,https://www.cnbc.com/2025/02/10/trump-could-make-changes-to-medicare-drug-price-negotiations.html,2025-02-10T13:40:30+0000,"President Donald Trump likely won't do away with a landmark process that allows Medicare to negotiate drug prices with manufacturers, even as he moves to erase Joe Biden's other historic policy accomplishments. But Trump will likely make some changes to those price talks, and it may not require help from Congress. ""Trump is looking to nibble around the edges of the law,"" said Matthew Kupferberg, a partner in Frier Levitt's life sciences group, adding the president is ""not looking to completely abandon the drug negotiation process at this point.""It's still unclear which way Trump will lean, however. While some lawmakers and health policy experts said Trump could weaken the negotiations in a way that helps the pharmaceutical industry, other experts said he could double down and try to save patients and the federal government even more money to outdo his predecessor. The path he takes could have huge stakes for the prices 68 million Medicare beneficiaries in the U.S. pay for their medications. It will also have big implications for companies like Novo Nordisk, Bristol Myers Squibb, Pfizer and Merck, among others whose drugs were included in the first two rounds of talks.The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade. The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.The Trump administration has offered few specifics on its approach to the negotiations, apart from saying in January that it will aim for ""greater transparency"" in the ongoing second cycle of the process and hear any ideas for improving it from external stakeholders.Making significant changes to the law or repealing it altogether would be an uphill battle because it requires help from Congress, where Republicans hold slim majorities. Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.So the Trump administration could move to implement the provision differently than Biden did, including by changing how the government interprets the law's selection criteria for drugs, among other potential changes.""I think it is a question of how they interpret some of the statutory language,"" said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health policy organization. Cubanski said we can expect a first glimpse at any changes in the coming months.The Trump administration will start the monthslong negotiation process for a second cycle of 15 drugs, which will have new prices go into effect in 2027. The Biden administration selected those medicines in January before Trump took office. Drugmakers have until the end of February to decide whether to participate in the talks, which they likely will because they otherwise face stiff financial penalties.Trump has so far only indicated the need for more transparency in Medicare drug price negotiations. Kupferberg said that could mean disclosing more information about the government's rationale for selecting drugs or settling on prices.During the first round of the talks, Medicare provided opportunities for public input from patients, caregivers and consumer groups. But Kupferberg said the Trump administration could move to bring in other stakeholders beyond manufacturers and patients, like insurers or even middlemen called pharmacy benefit managers. ""It could be a much broader type of negotiation process,"" he said. The administration could also reinterpret the guidelines of the law, which could change what products get selected and how much prices fall, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.For example, the IRA says the drugs selected for negotiations must have been on the market for at least seven years without generic competitors, or 11 years in the case of biologic products such as vaccines. But the Trump administration, when selecting another round of drugs, may have ""looser standards"" for determining whether a drug has competition in the market and should be exempt from negotiated prices, Campbell said. Trump could also revise what Medicare considers one drug for the purpose of negotiations, KFF's Cubanski said. Currently, different products that share the same active ingredient can be selected as a single product, which the pharmaceutical industry opposes. The Biden administration, for example, included three of Novo Nordisk's branded medications with the same active ingredient – semaglutide – as one product in the second cycle of price talks. That includes the weight loss drug Wegovy, diabetes pill Rybelsus and the anti-obesity injection Ozempic. Of the three, Ozempic makes up the lion's share of Medicare spending.Either of those changes to how Medicare selects drugs could benefit drugmakers and lessen the revenue they lose from lower prices. The bigger question is how aggressively Medicare will negotiate prices under Trump, Cubanski said. Currently, the final negotiated price for a drug cannot exceed an upper limit, or ""ceiling"" price, established by the IRA.Trump could influence whether Medicare's initial price offer for a drug is closer to the ceiling price, which could weaken the program's ability to secure a deeper discount. Major changes to the price negotiations are much less likely to occur, as they would require help from Congress. For example, one of the pharmaceutical industry's biggest issues with the process is what drugmakers calls the ""pill penalty."" The law essentially spares biologics like vaccines from new negotiated prices for 13 years after they receive U.S. approval, compared with just nine years for small-molecule drugs that come in a pill or tablet form. The industry contends that the discrepancy discourages companies from investing in the development of small-molecule drugs, which are more convenient for patients.Cubanski said bipartisan legislation was introduced last year that proposes eliminating the pill penalty. If that bill makes it through Congress and to Trump's desk, ""I don't see why he wouldn't sign it,"" Cubanski said. She added that there appears to be growing interest in legislative changes to the negotiation program, but ""whether you get enough support in Congress is still really an open question."" There isn't the same level of bipartisan support for changes to the IRA as there is for efforts like pharmacy benefit manager reform, said Jesse Dresser, partner in Frier Levitt's life sciences department. ""I could see something like [PBM reform] happening a lot sooner than I could see trying to open up the IRA and tweak it, even if it's something that the administration might ultimately get behind,"" Dresser said. It's unclear how Trump will approach the ongoing legal fight between manufacturers and the federal government over the Medicare program.The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court. Nine lawsuits were ongoing as of January.""Will the Trump administration continue to defend the program? Or maybe not as aggressively defend the program?"" Cubanski said. ""I think those are some key questions."" If the Trump administration stops defending the program in court, judges could then make decisions on the matter without any opposition, Kupferberg said. But he said he doesn't believe the administration will want that outcome. The Trump administration would likely ""want to take control of that process, where the parties work out an agreement or revise and change the interpretation of the law,"" Kupferberg said. He added that it doesn't seem like Trump would want the entire negotiation program to disappear based on the lawsuits. That's because it would leave Trump in the position to come up with a replacement for Medicare drug price negotiations, and we ""just haven't seen one yet"" from him, Kupferberg said.",CNBC,10/02/2025,"[""President Donald Trump likely won't do away with a landmark process that allows Medicare to negotiate drug prices with manufacturers, even as he moves to erase Joe Biden's other historic policy accomplishments."", 'But Trump will likely make some changes to those price talks, and it may not require help from Congress.', '""Trump is looking to nibble around the edges of the law,"" said Matthew Kupferberg, a partner in Frier Levitt\'s life sciences group, adding the president is ""not looking to completely abandon the drug negotiation process at this point.', '""It\'s still unclear which way Trump will lean, however.', 'While some lawmakers and health policy experts said Trump could weaken the negotiations in a way that helps the pharmaceutical industry, other experts said he could double down and try to save patients and the federal government even more money to outdo his predecessor.', 'The path he takes could have huge stakes for the prices 68 million Medicare beneficiaries in the U.S. pay for their medications.', 'It will also have big implications for companies like Novo Nordisk, Bristol Myers Squibb, Pfizer and Merck, among others whose drugs were included in the first two rounds of talks.', ""The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade."", 'The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.', 'The Trump administration has offered few specifics on its approach to the negotiations, apart from saying in January that it will aim for ""greater transparency"" in the ongoing second cycle of the process and hear any ideas for improving it from external stakeholders.', 'Making significant changes to the law or repealing it altogether would be an uphill battle because it requires help from Congress, where Republicans hold slim majorities.', 'Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.', ""So the Trump administration could move to implement the provision differently than Biden did, including by changing how the government interprets the law's selection criteria for drugs, among other potential changes."", '""I think it is a question of how they interpret some of the statutory language,"" said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health policy organization.', 'Cubanski said we can expect a first glimpse at any changes in the coming months.', 'The Trump administration will start the monthslong negotiation process for a second cycle of 15 drugs, which will have new prices go into effect in 2027.', 'The Biden administration selected those medicines in January before Trump took office.', 'Drugmakers have until the end of February to decide whether to participate in the talks, which they likely will because they otherwise face stiff financial penalties.', 'Trump has so far only indicated the need for more transparency in Medicare drug price negotiations.', ""Kupferberg said that could mean disclosing more information about the government's rationale for selecting drugs or settling on prices."", 'During the first round of the talks, Medicare provided opportunities for public input from patients, caregivers and consumer groups.', 'But Kupferberg said the Trump administration could move to bring in other stakeholders beyond manufacturers and patients, like insurers or even middlemen called pharmacy benefit managers.', '""It could be a much broader type of negotiation process,"" he said.', 'The administration could also reinterpret the guidelines of the law, which could change what products get selected and how much prices fall, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.', 'For example, the IRA says the drugs selected for negotiations must have been on the market for at least seven years without generic competitors, or 11 years in the case of biologic products such as vaccines.', 'But the Trump administration, when selecting another round of drugs, may have ""looser standards"" for determining whether a drug has competition in the market and should be exempt from negotiated prices, Campbell said.', ""Trump could also revise what Medicare considers one drug for the purpose of negotiations, KFF's Cubanski said."", 'Currently, different products that share the same active ingredient can be selected as a single product, which the pharmaceutical industry opposes.', ""The Biden administration, for example, included three of Novo Nordisk's branded medications with the same active ingredient – semaglutide – as one product in the second cycle of price talks."", 'That includes the weight loss drug Wegovy, diabetes pill Rybelsus and the anti-obesity injection Ozempic.', ""Of the three, Ozempic makes up the lion's share of Medicare spending."", 'Either of those changes to how Medicare selects drugs could benefit drugmakers and lessen the revenue they lose from lower prices.', 'The bigger question is how aggressively Medicare will negotiate prices under Trump, Cubanski said.', 'Currently, the final negotiated price for a drug cannot exceed an upper limit, or ""ceiling"" price, established by the IRA.Trump could influence whether Medicare\'s initial price offer for a drug is closer to the ceiling price, which could weaken the program\'s ability to secure a deeper discount.', 'Major changes to the price negotiations are much less likely to occur, as they would require help from Congress.', 'For example, one of the pharmaceutical industry\'s biggest issues with the process is what drugmakers calls the ""pill penalty.', '""The law essentially spares biologics like vaccines from new negotiated prices for 13 years after they receive U.S. approval, compared with just nine years for small-molecule drugs that come in a pill or tablet form.', 'The industry contends that the discrepancy discourages companies from investing in the development of small-molecule drugs, which are more convenient for patients.', 'Cubanski said bipartisan legislation was introduced last year that proposes eliminating the pill penalty.', 'If that bill makes it through Congress and to Trump\'s desk, ""I don\'t see why he wouldn\'t sign it,"" Cubanski said.', 'She added that there appears to be growing interest in legislative changes to the negotiation program, but ""whether you get enough support in Congress is still really an open question.', '""There isn\'t the same level of bipartisan support for changes to the IRA as there is for efforts like pharmacy benefit manager reform, said Jesse Dresser, partner in Frier Levitt\'s life sciences department.', '""I could see something like [PBM reform] happening a lot sooner than I could see trying to open up the IRA and tweak it, even if it\'s something that the administration might ultimately get behind,"" Dresser said.', ""It's unclear how Trump will approach the ongoing legal fight between manufacturers and the federal government over the Medicare program."", ""The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court."", 'Nine lawsuits were ongoing as of January.', '""Will the Trump administration continue to defend the program?', 'Or maybe not as aggressively defend the program?""', 'Cubanski said. ""', 'I think those are some key questions.', '""If the Trump administration stops defending the program in court, judges could then make decisions on the matter without any opposition, Kupferberg said.', ""But he said he doesn't believe the administration will want that outcome."", 'The Trump administration would likely ""want to take control of that process, where the parties work out an agreement or revise and change the interpretation of the law,"" Kupferberg said.', ""He added that it doesn't seem like Trump would want the entire negotiation program to disappear based on the lawsuits."", 'That\'s because it would leave Trump in the position to come up with a replacement for Medicare drug price negotiations, and we ""just haven\'t seen one yet"" from him, Kupferberg said.']",0.0868428474690438,"Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.","The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court.",-0.0563547280099656,"The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade.","The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.",2025-02-14
"Even at $8 million per Super Bowl commercial, ad executives say it's still bang for your buck",https://www.cnbc.com/2025/02/07/super-bowl-commercial-cost-ad-execs.html,2025-02-07T20:22:40+0000,"In this articleAdvertisers shelled out up to $8 million for a spot during Super Bowl 59. Ad industry executives still consider the price tag worth it, and argue it's even a bang for their buck.The NFL's championship game between the Philadelphia Eagles and Kansas City Chiefs will air this year on Fox Corp.'s broadcast network, as well as on Fox's free streamer Tubi. It'll likely be the biggest audience watching live television at the same time this year.""The scale and buzz factor still delivers a punch,"" said Amy Leifer, DirecTV's chief advertising sales officer. ""Where else can you get 100 million viewers at once, right? Especially in this fragmented landscape ... there's virtually few places you can go to get that type of scale.""Last year more than 123 million people tuned into the Super Bowl. The 2024 game racked up estimated ad revenue of about $550 million for in-game placements, according to GroupM, WPP's media investment group.While advertisers have been spending more on digital, social media and streaming platforms, traditional TV is still considered the most ""effective"" form of advertising, meaning it has the biggest impact and results for brands due to the large audiences watching at once.The ad market for traditional TV programming has slowed down as the cable bundle bleeds customers. Still, media companies with rights to live sports — as well as news and other live programming like awards shows — are able to nab a bigger chunk of ad dollars than peers without sports.While it appears the ad market is stabilizing after a slowdown, networks and streamers with sports are sure to fare better than those without this year.Sports have taken over the conversation at the advertising industry's Upfronts presentations each spring, when media companies make their pitch to advertisers. Fox sold most of the ad inventory for this year's Super Bowl during its Upfront last spring, CNBC previously reported.The Super Bowl remains about three times as effective as the average primetime programming for advertisers, according to EDO, an advertising data company. The NFL's big game last year was 224% more effective than average primetime programming, the data firm said.EDO likened the audience and engagement that comes with a Super Bowl game to an advertiser buying hundreds of spots on primetime. Based on last year's Super Bowl audience, EDO equated one ad during the big game to roughly 450 spots during primetime programming in terms of viewer engagement.""It's a fair and rational price based on our data, which is that this has been one of the most consistent performers over time,"" said Kevin Krim, CEO of EDO. ""And there's room for the price to go up based on our data. But the important thing is, it matters a ton how a brand executes on their creative idea.""For instance, when brands launch a new product during a Super Bowl commercial, consumers continue to engage with the brand via online searches or app visits even after the Super Bowl ad first aired, said Krim. He noted three recent brand launches during Super Bowl commercials — automaker Kia launching the EV6 in 2022, and Reese's unveiling its Big Caramel Cup and Popeye's promoting its new wings in 2024 — which led to a lift in engagement for each brand when the ads aired thereafter.Even localized ads that are sold at a lower cost than national ads and only shown in certain markets experience a Super Bowl lift. Zeam, a hyperlocal streaming platform, aired a spot starring actor John Stamos in select markets last year.The app had ""millions of downloads"" following the commercial, said Jack Perry, CEO of Zeam Media.""It was good enough for us, and it's not cheap for us to buy those available spots. There's a very limited number of local spots during the game,"" said Perry.Zeam will run another commercial with Stamos this year.The placement of a commercial during the game, sometimes as specific as what time during a certain quarter the ad is shown, can make a difference, too, according to Andre Banks, founder and CEO of NewWorld, a marketing and strategy consultancy.""If a brand wants to drive high-impact results, they must align their spots with when their target audience is most engaged, not the spot that receives higher viewership,"" said Banks.He noted a portion of the Super Bowl audience each year tunes in specifically for the Halftime show, which this year features rapper Kendrick Lamar, and then turns their attentions away once the moment passes.Banks also noted that social media plays a big role during the Super Bowl, with viewers turning to varying tech platforms during the game. Social media should be key for advertisers during the Super Bowl, too, he said.""With so many viewers scrolling on social channels during the game, there's also a massive opportunity for brands to optimize for second-screen engagement,"" Banks added.Ad spending on tech and social media platforms far eclipses traditional TV. GroupM estimates that ad revenue for ""pure-play digital,"" which excludes digital extensions of media companies like streaming, will grow 10% to $813.3 billion globally in 2025. By comparison, TV ad spend is expected to grow nearly 2% to $169.1 billion. Media companies have even recently come together to launch an ad platform with the aim of taking back share from tech players.Some say brands' focus on spending big on the Super Bowl and the idea that traditional TV is the most effective form of advertising may lie in the past.""I don't necessarily think when someone says it's still the most effective, that's what it is. I think what people are saying is it's the only place left where there is a really large, captive broadcast audience watching something,"" said Shoshana Winter, CEO of Converge, a performance marketing agency. ""When it comes to this particular thing, we are holding on hard and fast.""",CNBC,07/02/2025,"['In this articleAdvertisers shelled out up to $8 million for a spot during Super Bowl 59.', ""Ad industry executives still consider the price tag worth it, and argue it's even a bang for their buck."", ""The NFL's championship game between the Philadelphia Eagles and Kansas City Chiefs will air this year on Fox Corp.'s broadcast network, as well as on Fox's free streamer Tubi."", ""It'll likely be the biggest audience watching live television at the same time this year."", '""The scale and buzz factor still delivers a punch,"" said Amy Leifer, DirecTV\'s chief advertising sales officer. ""', 'Where else can you get 100 million viewers at once, right?', ""Especially in this fragmented landscape ... there's virtually few places you can go to get that type of scale."", '""Last year more than 123 million people tuned into the Super Bowl.', ""The 2024 game racked up estimated ad revenue of about $550 million for in-game placements, according to GroupM,WPP's media investment group."", 'While advertisers have been spending more on digital, social media and streaming platforms, traditional TV is still considered the most ""effective"" form of advertising, meaning it has the biggest impact and results for brands due to the large audiences watching at once.', 'The ad market for traditional TV programming has slowed down as the cable bundle bleeds customers.', 'Still, media companies with rights to live sports — as well as news and other live programming like awards shows — are able to nab a bigger chunk of ad dollars than peers without sports.', 'While it appears the ad market is stabilizing after a slowdown, networks and streamers with sports are sure to fare better than those without this year.', ""Sports have taken over the conversation at the advertising industry's Upfronts presentations each spring, when media companies make their pitch to advertisers."", ""Fox sold most of the ad inventory for this year's Super Bowl during its Upfront last spring, CNBC previously reported."", 'The Super Bowl remains about three times as effective as the average primetime programming for advertisers, according to EDO, an advertising data company.', ""The NFL's big game last year was 224% more effective than average primetime programming, the data firm said."", 'EDO likened the audience and engagement that comes with a Super Bowl game to an advertiser buying hundreds of spots on primetime.', ""Based on last year's Super Bowl audience, EDO equated one ad during the big game to roughly 450 spots during primetime programming in terms of viewer engagement."", '""It\'s a fair and rational price based on our data, which is that this has been one of the most consistent performers over time,"" said Kevin Krim, CEO of EDO. ""', ""And there's room for the price to go up based on our data."", 'But the important thing is, it matters a ton how a brand executes on their creative idea.', '""For instance, when brands launch a new product during a Super Bowl commercial, consumers continue to engage with the brand via online searches or app visits even after the Super Bowl ad first aired, said Krim.', ""He noted three recent brand launches during Super Bowl commercials — automaker Kia launching the EV6 in 2022, and Reese's unveiling its Big Caramel Cup and Popeye's promoting its new wings in 2024 — which led to a lift in engagement for each brand when the ads aired thereafter."", 'Even localized ads that are sold at a lower cost than national ads and only shown in certain markets experience a Super Bowl lift.', 'Zeam, a hyperlocal streaming platform, aired a spot starring actor John Stamos in select markets last year.', 'The app had ""millions of downloads"" following the commercial, said Jack Perry, CEO of Zeam Media.', '""It was good enough for us, and it\'s not cheap for us to buy those available spots.', 'There\'s a very limited number of local spots during the game,"" said Perry.', 'Zeam will run another commercial with Stamos this year.', 'The placement of a commercial during the game, sometimes as specific as what time during a certain quarter the ad is shown, can make a difference, too, according to Andre Banks, founder and CEO of NewWorld, a marketing and strategy consultancy.', '""If a brand wants to drive high-impact results, they must align their spots with when their target audience is most engaged, not the spot that receives higher viewership,"" said Banks.', 'He noted a portion of the Super Bowl audience each year tunes in specifically for the Halftime show, which this year features rapper Kendrick Lamar, and then turns their attentions away once the moment passes.', 'Banks also noted that social media plays a big role during the Super Bowl, with viewers turning to varying tech platforms during the game.', 'Social media should be key for advertisers during the Super Bowl, too, he said.', '""With so many viewers scrolling on social channels during the game, there\'s also a massive opportunity for brands to optimize for second-screen engagement,"" Banks added.', 'Ad spending on tech and social media platforms far eclipses traditional TV.', 'GroupM estimates that ad revenue for ""pure-play digital,"" which excludes digital extensions of media companies like streaming, will grow 10% to $813.3 billion globally in 2025.', 'By comparison, TV ad spend is expected to grow nearly 2% to $169.1 billion.', 'Media companies have even recently come together to launch an ad platform with the aim of taking back share from tech players.', ""Some say brands' focus on spending big on the Super Bowl and the idea that traditional TV is the most effective form of advertising may lie in the past."", '""I don\'t necessarily think when someone says it\'s still the most effective, that\'s what it is.', 'I think what people are saying is it\'s the only place left where there is a really large, captive broadcast audience watching something,"" said Shoshana Winter, CEO of Converge, a performance marketing agency. ""', 'When it comes to this particular thing, we are holding on hard and fast.""']",0.3712047304209487,"""For instance, when brands launch a new product during a Super Bowl commercial, consumers continue to engage with the brand via online searches or app visits even after the Super Bowl ad first aired, said Krim.","There's a very limited number of local spots during the game,"" said Perry.",0.8705649586284862,"GroupM estimates that ad revenue for ""pure-play digital,"" which excludes digital extensions of media companies like streaming, will grow 10% to $813.3 billion globally in 2025.",The ad market for traditional TV programming has slowed down as the cable bundle bleeds customers.,2025-02-14
Bank of America CEO on inflation impact on U.S. economy: ‘Rates are going to stay where they are’,https://www.cnbc.com/2025/02/12/bank-of-america-ceo-brian-moynihan-inflation-federal-reserve-rates.html,2025-02-12T18:32:54+0000,"Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.The bank's retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan told CNBC's Leslie Picker. That rate is an acceleration from the spending growth seen in the final three months of last year, he noted.""That's driving price firmness, demand firmness,"" Moynihan said. ""You're seeing activity that says that we're probably in a period where rates are going to stay … where they are for a while until this settles in.""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations. The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.Last month, the Fed opted to keep its benchmark rate unchanged at a range of 4.25%-4.5%.""Rates are restrictive, but there was not enough sort of inflation progress that we made"" to cut rates, Moynihan said.Bank of America research analysts expect no rate reductions in the immediate future because of elevated inflation, he added.",CNBC,12/02/2025,"['Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.', ""The bank's retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan told CNBC's Leslie Picker."", 'That rate is an acceleration from the spending growth seen in the final three months of last year, he noted.', '""That\'s driving price firmness, demand firmness,"" Moynihan said. ""', ""You're seeing activity that says that we're probably in a period where rates are going to stay … where they are for a while until this settles in."", '""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations.', 'The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.', 'Last month, the Fed opted to keep its benchmark rate unchanged at a range of 4.25%-4.5%.""Rates are restrictive, but there was not enough sort of inflation progress that we made"" to cut rates, Moynihan said.', 'Bank of America research analysts expect no rate reductions in the immediate future because of elevated inflation, he added.']",0.0564610354219896,Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.,"The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.",0.9944062743868146,"""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations.",,2025-02-14
How a CEO's exit and a Jeep 'comeback' led to Stellantis being the only automaker to advertise during Super Bowl 59,https://www.cnbc.com/2025/02/10/super-bowl-59-ad-stellantis-automaker.html,2025-02-10T21:22:47+0000,"DETROIT — A CEO's exit, electric vehicles making the industry run around like ""headless chickens"" and a company's U.S. revival all came together to make Ram and Jeep parent Stellantis the only automaker with a Super Bowl 59 commercial.That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl.Francois said Stellantis Chairman John Elkann, a scion of Italy's Fiat carmaker, called him after CEO Carlos Tavares' abrupt departure in December and told him to advertise during the big game as a recommitment to the automaker's business in the U.S.""We were not set to make a commercial. John Elkann called me in December, saying, you know, 'I want something. I want to make a comeback. We want to show, to express, that comeback story. We want to show America how much it is important to the Stellantis group,'"" Francois told CNBC.Stellantis, formerly known as Fiat Chrysler, has become well known under Francois for symbolic, nontraditional ads that feature iconic celebrities that tell a story beyond just attempting to sell new cars and trucks.It started when the automaker was attempting to make a comeback from its 2009 bankruptcy. It aired a surprise two-minute Super Bowl ad in 2011 featuring rapper Eminem and the city of Detroit — tying the company's revival to the Motor City's grit and rebirth. The ad also featured a now discontinued Chrysler sedan called the 200.Francois said Elkann, who's leading the search for a new CEO, told him to recapture that kind of ""comeback"" spirit for the automaker, following years of cost cutting and lackluster sales in the U.S.Elkann, Francois said, also told him to think of the late Fiat Chrysler CEO Sergio Marchionne when creating the automaker's ads this year. Marchionne, who died in 2018, was a supporter of Francois and past Super Bowl ads.""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose. He used to say, 'Mediocrity is not worth the trip,'"" Francois said. ""So this year's Super Bowl creative execution and investment are very much the essence of the spirit.""Since Eminem, the company's Super Bowl ads have featured actors such as Clint Eastwood, Bill Murray and singer Bob Dylan, among others. Those spots haven't necessarily prominently featured any specific vehicle, but they've discussed culturally relevant topics such as political divides and patriotism.Stellantis' Ram Trucks ad this year was a more traditional, comedic Super Bowl commercial. It starred ""Twisters"" and ""Top Gun: Maverick"" actor Glen Powell reimagining ""Goldilocks and the Three Bears"" with trucks.But the automaker's two-minute Jeep ad starring featuring ""Star Wars"" and ""Indiana Jones"" actor Harrison Ford was a true return to form for Francois.Francois said Ford turned down an initial pitch for a different ad. That's when Francois said he and friend Edward Razek, a former marketing executive for Victoria's Secret owner L Brands who resigned amid controversy in 2019, wrote the first version of the ad that aired.CMOs don't typically write scripts. It's more common for those executives to approve a script from an agency, with guidance. Francois said agencies did assist ahead of the final ad, but the script and ideas started inside the automaker.In the ad, Ford discusses freedom, heroes and people writing their own stories in life because there is no ""Owner's Manual,"" which is the title of the commercial.As Ford opined, several Jeep models can be seen driving and off-roading, including one that passes a Ford Bronco SUV — a newer competitor to the Jeep Wrangler SUV — while the actor talks about inspiring others.""I said 'yes' to doing this commercial because of the script. It's a very straightforward communication about life and ends with getting in a Jeep vehicle, that's the hook. It didn't require me to reintroduce myself, point to the fact that in my life I've been many things and known for specific projects or roles,"" Ford said in a statement. ""It's just a quiet talk from somebody sharing an idea. I love the way it developed.""The Wrangler passing the Bronco is one of two references to the Jeep rival. The other comes from the actor at the end of the ad: ""Choose what makes you happy. My friends, my family, my work make me happy. This Jeep makes me happy — even though my name is Ford. That's my owner's manual. Get out there, write your own.""The Jeep ad was shot over two days with Ford in Santa Clarita, California, in early December, according to Stellantis. Automotive has historically been one of the top segments for Super Bowl advertising. Even during the Great Recession in 2008 and 2009 when the industry was hit hard, several companies such as Toyota Motor, Hyundai Motor and Audi aired ads.Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale.""In the last years, there was plenty of automakers, all of them [touting] EVs, EVs that didn't even exist,"" Francois said. ""These guys are obviously running like headless chickens: EVs, EVs, EVs. I mean, that's where we all were.""Automakers regularly advertised during the NFL regular season and playoffs, including with sponsorships such as Toyota being the ""Official Automotive Partner of the NFL."" But none, other than Stellantis, advertised during Sunday's game.Both of Stellantis' Super Bowl ads this year featured electric vehicles, but they also included traditional vehicles with internal combustion engines as well as plug-in hybrid models such as the Jeep Wrangler.Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.""The moment had changed, and I was lucky enough to have the possibility to rewrite the scripts. To rewrite history, to say, to not run like a headless chicken,"" Francois said. ""I was able to improvise in the moment.""Stellantis declined to disclose how much money it spent on the production or broadcast of the ads, which were selling for up to $8 million for 30 seconds of air time during Super Bowl 59.But Francois said Elkann has told advertising and marketing leaders at Stellantis that ""Marketing is no longer a cost. It is an investment.""Correction: Jeep's Super Bowl ad was filmed in Santa Clarita, California. An earlier version of this article incorrectly identified the city.",CNBC,10/02/2025,"['DETROIT — A CEO\'s exit, electric vehicles making the industry run around like ""headless chickens"" and a company\'s U.S. revival all came together to make Ram and Jeep parent Stellantis the only automaker with a Super Bowl 59 commercial.', ""That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl."", 'Francois said Stellantis Chairman John Elkann, a scion of Italy\'s Fiat carmaker, called him after CEO Carlos Tavares\' abrupt departure in December and told him to advertise during the big game as a recommitment to the automaker\'s business in the U.S.""We were not set to make a commercial.', ""John Elkann called me in December, saying, you know, 'I want something."", 'I want to make a comeback.', 'We want to show, to express, that comeback story.', 'We want to show America how much it is important to the Stellantis group,\'"" Francois told CNBC.Stellantis, formerly known as Fiat Chrysler, has become well known under Francois for symbolic, nontraditional ads that feature iconic celebrities that tell a story beyond just attempting to sell new cars and trucks.', 'It started when the automaker was attempting to make a comeback from its 2009 bankruptcy.', ""It aired a surprise two-minute Super Bowl ad in 2011 featuring rapper Eminem and the city of Detroit — tying the company's revival to the Motor City's grit and rebirth."", 'The ad also featured a now discontinued Chrysler sedan called the 200.Francois said Elkann, who\'s leading the search for a new CEO, told him to recapture that kind of ""comeback"" spirit for the automaker, following years of cost cutting and lackluster sales in the U.S.Elkann, Francois said, also told him to think of the late Fiat Chrysler CEO Sergio Marchionne when creating the automaker\'s ads this year.', 'Marchionne, who died in 2018, was a supporter of Francois and past Super Bowl ads.', '""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose.', 'He used to say, \'Mediocrity is not worth the trip,\'"" Francois said. ""', ""So this year's Super Bowl creative execution and investment are very much the essence of the spirit."", '""Since Eminem, the company\'s Super Bowl ads have featured actors such as Clint Eastwood, Bill Murray and singer Bob Dylan, among others.', ""Those spots haven't necessarily prominently featured any specific vehicle, but they've discussed culturally relevant topics such as political divides and patriotism."", ""Stellantis' Ram Trucks ad this year was a more traditional, comedic Super Bowl commercial."", 'It starred ""Twisters"" and ""Top Gun: Maverick"" actor Glen Powell reimagining ""Goldilocks and the Three Bears"" with trucks.', 'But the automaker\'s two-minute Jeep ad starring featuring ""Star Wars"" and ""Indiana Jones"" actor Harrison Ford was a true return to form for Francois.', 'Francois said Ford turned down an initial pitch for a different ad.', ""That's when Francois said he and friend Edward Razek, a former marketing executive for Victoria's Secret owner L Brands who resigned amid controversy in 2019, wrote the first version of the ad that aired."", ""CMOs don't typically write scripts."", ""It's more common for those executives to approve a script from an agency, with guidance."", 'Francois said agencies did assist ahead of the final ad, but the script and ideas started inside the automaker.', 'In the ad, Ford discusses freedom, heroes and people writing their own stories in life because there is no ""Owner\'s Manual,"" which is the title of the commercial.', 'As Ford opined, several Jeep models can be seen driving and off-roading, including one that passes a Ford Bronco SUV — a newer competitor to the Jeep Wrangler SUV — while the actor talks about inspiring others.', '""I said \'yes\' to doing this commercial because of the script.', ""It's a very straightforward communication about life and ends with getting in a Jeep vehicle, that's the hook."", 'It didn\'t require me to reintroduce myself, point to the fact that in my life I\'ve been many things and known for specific projects or roles,"" Ford said in a statement. ""', ""It's just a quiet talk from somebody sharing an idea."", 'I love the way it developed.', '""The Wrangler passing the Bronco is one of two references to the Jeep rival.', 'The other comes from the actor at the end of the ad: ""Choose what makes you happy.', 'My friends, my family, my work make me happy.', 'This Jeep makes me happy — even though my name is Ford.', ""That's my owner's manual."", 'Get out there, write your own.', '""The Jeep ad was shot over two days with Ford in Santa Clarita, California, in early December, according to Stellantis.', 'Automotive has historically been one of the top segments for Super Bowl advertising.', 'Even during the Great Recession in 2008 and 2009 when the industry was hit hard, several companies such as Toyota Motor, Hyundai Motor and Audi aired ads.', ""Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale."", '""In the last years, there was plenty of automakers, all of them [touting] EVs, EVs that didn\'t even exist,"" Francois said. ""', 'These guys are obviously running like headless chickens: EVs, EVs, EVs.', ""I mean, that's where we all were."", '""Automakers regularly advertised during the NFL regular season and playoffs, including with sponsorships such as Toyota being the ""Official Automotive Partner of the NFL.""', ""But none, other than Stellantis, advertised during Sunday's game."", ""Both of Stellantis' Super Bowl ads this year featured electric vehicles, but they also included traditional vehicles with internal combustion engines as well as plug-in hybrid models such as the Jeep Wrangler."", 'Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.', '""The moment had changed, and I was lucky enough to have the possibility to rewrite the scripts.', 'To rewrite history, to say, to not run like a headless chicken,"" Francois said. ""', 'I was able to improvise in the moment.', '""Stellantis declined to disclose how much money it spent on the production or broadcast of the ads, which were selling for up to $8 million for 30 seconds of air time during Super Bowl 59.But Francois said Elkann has told advertising and marketing leaders at Stellantis that ""Marketing is no longer a cost.', 'It is an investment.', '""Correction: Jeep\'s Super Bowl ad was filmed in Santa Clarita, California.', 'An earlier version of this article incorrectly identified the city.']",0.2528008222416097,"""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose.","That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl.",0.4386920588357108,"Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.","Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale.",2025-02-14
Coca-Cola sales easily top estimates as global demand rises,https://www.cnbc.com/2025/02/11/coca-cola-ko-q4-2024-earnings.html,2025-02-11T21:36:12+0000,"In this articleCoca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations, as global demand for its drinks rose.Shares of the company climbed nearly 5% for the day.Here's what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier.Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.Net sales rose 6% to $11.54 billion.Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices. Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation. The rest came from price hikes and ""favorable mix,"" meaning that customers bought products that were more expensive.While most of Coke's organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo.Coke's unit case volume grew 2%, reversing last quarter's decline. The metric strips out the impact of pricing and foreign currency to reflect demand. The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter. Trademark Coca-Cola and Fairlife remain leaders in at home retail sales growth,"" Coke CEO James Quincey said on the company's conference call.The company's sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter. Coke Zero Sugar's volume climbed 13% during the period.Coke's water, sports, coffee and tea division reported 2% volume growth. Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.Coke's juice, value-added dairy and plant-based beverages division saw volume shrink 1%. The company said declines in Europe, the Middle East and Africa offset growth in North America.Looking to 2025, Coke projects organic revenue will grow 5% to 6%. The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.""It seems more likely in '25, there'll be a little more price and a little less volume, but there will be volume growth,"" Quincey told analysts.Coke could also face some rising costs in 2025. For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said. ""For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.""",CNBC,11/02/2025,"[""In this articleCoca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations, as global demand for its drinks rose."", 'Shares of the company climbed nearly 5% for the day.', ""Here's what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier."", 'Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.', 'Net sales rose 6% to $11.54 billion.', 'Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices.', ""Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation."", 'The rest came from price hikes and ""favorable mix,"" meaning that customers bought products that were more expensive.', ""While most of Coke's organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo."", ""Coke's unit case volume grew 2%, reversing last quarter's decline."", 'The metric strips out the impact of pricing and foreign currency to reflect demand.', 'The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter.', 'Trademark Coca-Cola and Fairlife remain leaders in at home retail sales growth,"" Coke CEO James Quincey said on the company\'s conference call.', ""The company's sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter."", ""Coke Zero Sugar's volume climbed 13% during the period."", ""Coke's water, sports, coffee and tea division reported 2% volume growth."", 'Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.', ""Coke's juice, value-added dairy and plant-based beverages division saw volume shrink 1%."", 'The company said declines in Europe, the Middle East and Africa offset growth in North America.', 'Looking to 2025, Coke projects organic revenue will grow 5% to 6%.', 'The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.', '""It seems more likely in \'25, there\'ll be a little more price and a little less volume, but there will be volume growth,"" Quincey told analysts.', 'Coke could also face some rising costs in 2025.', 'For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.', '""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said. ""', 'For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.""']",0.2105670486122989,"The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter.",,0.5848126022712045,"Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation.","Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.",2025-02-14
Super Bowl 59 attracts record 127.7 million viewers,https://www.cnbc.com/2025/02/11/super-bowl-59-viewership.html,2025-02-12T14:36:50+0000,"In this articleThe Philadelphia Eagles weren't the only ones that scored big at the Super Bowl.The National Football League's championship game attracted a record 127.7 million viewers on Sunday, according to Nielsen Media Research.The supersized live audience was of most importance to the advertisers that shelled out big bucks to have their brands featured during the Super Bowl. It is rare that programming on live TV attracts such a big audience in one sitting, making the hefty price tag worth it, advertising industry executives recently told CNBC.The cost of advertising during the Super Bowl rises each year, especially as the cable bundle loses more and more customers and must-watch programming revolves around sports and other live events. This year, some brands spent up to $8 million for a spot during the game.Sunday's Super Bowl aired on Fox Corporation's broadcast network, as well as its Spanish-language cable network Fox Deportes and NBCUniversal's Telemundo. Fox also offered the Super Bowl on its free, ad-supported streamer Tubi, and it was also available on the NFL's digital properties.Fox said Wednesday that the Super Bowl on its broadcast network and Tubi generated more than $800 million in gross revenue from advertising sales across all platforms. The 2024 Super Bowl brought in estimated ad revenue of about $550 million for in-game placements, according to GroupM, WPP's media investment group.""The clear winners Sunday night were the Eagles, the NFL, and FOX. Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,"" said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.Last year, the Super Bowl had locked down another viewership record at the time, when more than 123 million tuned into Paramount Global's CBS broadcast network, TelevisaUnivision network and other streaming options such as Paramount+.Fox also reported that the Super Bowl broke another record when it came to streaming. The game on Tubi, Telemundo and the NFL's digital offerings garnered 14.5 million viewers, while Tubi alone had 13.6 million viewers, according to Tubi first-party data and Adobe Analytics. This was the first time the Super Bowl was available on the app.The Super Bowl's viewership peaked at an audience of 137.7 million from 8 p.m. to 8:15 p.m. ET, during the second quarter, according to Nielsen.Anticipation for the game helped boost viewership, too. Fox's pregame coverage averaged 23.4 million viewers between 1 p.m. and kickoff.The Eagles ran away with the game against the Kansas City Chiefs, with a final score of 40-22. While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported.The Spanish language networks Fox Deportes and Telemundo had an average audience of 1.87 million combined viewers, according to Fox. This was the first time the Super Bowl was offered on both a cable network and broadcaster in Spanish. The league has been pushing to expand its audience, with a key part of its strategy being Hispanic viewership.Disclosure: Comcast owns CNBC parent company NBCUniversal. Correction: The headline on this story has been updated to correct that it was Super Bowl 59.",CNBC,12/02/2025,"[""In this articleThe Philadelphia Eagles weren't the only ones that scored big at the Super Bowl."", ""The National Football League's championship game attracted a record 127.7 million viewers on Sunday, according to Nielsen Media Research."", 'The supersized live audience was of most importance to the advertisers that shelled out big bucks to have their brands featured during the Super Bowl.', 'It is rare that programming on live TV attracts such a big audience in one sitting, making the hefty price tag worth it, advertising industry executives recently told CNBC.The cost of advertising during the Super Bowl rises each year, especially as the cable bundle loses more and more customers and must-watch programming revolves around sports and other live events.', 'This year, some brands spent up to $8 million for a spot during the game.', ""Sunday's Super Bowl aired on Fox Corporation's broadcast network, as well as its Spanish-language cable network Fox Deportes and NBCUniversal's Telemundo."", ""Fox also offered the Super Bowl on its free, ad-supported streamer Tubi, and it was also available on the NFL's digital properties."", 'Fox said Wednesday that the Super Bowl on its broadcast network and Tubi generated more than $800 million in gross revenue from advertising sales across all platforms.', ""The 2024 Super Bowl brought in estimated ad revenue of about $550 million for in-game placements, according to GroupM,WPP's media investment group."", '""The clear winners Sunday night were the Eagles, the NFL, and FOX.Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,""said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.', ""Last year, the Super Bowl had locked down another viewership record at the time, when more than 123 million tuned into Paramount Global's CBS broadcast network, TelevisaUnivision network and other streaming options such as Paramount+.Fox also reported that the Super Bowl broke another record when it came to streaming."", ""The game on Tubi, Telemundo and the NFL's digital offerings garnered 14.5 million viewers, while Tubi alone had 13.6 million viewers, according to Tubi first-party data and Adobe Analytics."", 'This was the first time the Super Bowl was available on the app.', ""The Super Bowl's viewership peaked at an audience of 137.7 million from 8 p.m. to 8:15 p.m. ET, during the second quarter, according to Nielsen."", 'Anticipation for the game helped boost viewership, too.', ""Fox's pregame coverage averaged 23.4 million viewers between 1 p.m. and kickoff."", 'The Eagles ran away with the game against the Kansas City Chiefs, with a final score of 40-22.', 'While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.', ""The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported."", 'The Spanish language networks Fox Deportes and Telemundo had an average audience of 1.87 million combined viewers, according to Fox.', 'This was the first time the Super Bowl was offered on both a cable network and broadcaster in Spanish.', 'The league has been pushing to expand its audience, with a key part of its strategy being Hispanic viewership.', 'Disclosure: Comcast owns CNBC parent company NBCUniversal.', 'Correction: The headline on this story has been updated to correct that it was Super Bowl 59.']",0.4216337387588909,"""The clear winners Sunday night were the Eagles, the NFL, and FOX.Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,""said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.",,0.5203825235366821,"The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported.","While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.",2025-02-14
Fashion's most hated garment — the skinny jean — is making a comeback,https://www.cnbc.com/2025/02/08/skinny-jeans-are-making-a-comeback.html,2025-02-10T15:30:47+0000,"In this articleThe vilified linchpin of millennial and Y2K fashion – the skinny jean – might be on its way to a comeback.Over the last few months, a range of skinny styles, including pants and jeans, have cropped up on fashion runways, influencer videos and Google search trends, indicating the divisive garment could soon be a closet staple again. Part of the buzz around skinny jeans undoubtedly came when TikTok star and Gen Z influencer Alix Earle debuted a pair of exclusive skinnies with denim brand Frame at the end of January, but the hype was already building before that. ""For like the last six months, we started to hear rumblings of skinny jeans making a comeback,"" said Janine Stichter, a retail analyst and managing director at BTIG. ""If you look at Google Trends data for skinny jeans ... it actually [spiked] the week of January 12 and it's been picking up steam ever since.""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.That likely led to a spike in interest across retailers. Reformation told CNBC this week its customers have been searching for skinny jeans on its website more frequently lately.American Eagle has also seen interest grow. ""Certainly, there's a lot of activity on skinny. I would like to say there's a styling thing that's happening, the high boot situation, and high boots and skinny jeans work, so that's definitely taking hold,"" Jen Foyle, American Eagle's president and executive creative officer, told CNBC in an interview.""You're starting to see some of that movement but right now, it's still relatively small, but we're prepared to roll with it as we test it and scale,"" she continued. ""Our job is to be nimble, right?""But like any fashion trend, the skinny jean resurgence was first spotted on the runways. Based on how the major designers are interpreting the look, it'll appear different this time around. ""On the runways, Prada, Isabel Morant, Tod's, they all did very slim silhouette pants. They're calling them skinny pants. The difference is that they're doing them in plaid, not just solids. They're doing them in these very tailored fabrics,"" said Shawn Grain Carter, a fashion professor at the Fashion Institute of Technology in New York. ""We're seeing some of the celebrities wear these skinny jeans, but they're not nearly as conforming … it's different from the jeggings that you saw [between 2009 and 2011]... It conforms to the leg, but it doesn't have to necessarily hug it so tightly that all you see is an outline of a woman's leg.""The unofficial queen of denim – Levi Strauss CEO Michelle Gass – spotted the same trend on the runways and told CNBC she expects the controversial jeans to officially come back ""sometime in the future.""""While we don't have a crystal ball, don't get rid of your skinny jeans,"" said Gass. ""I do think when we see a bigger trend re-emerge, it's going to look and feel different."" Grain Carter said skinny styles could start appearing in stores more widely by this summer, but Stichter said they could start returning to shelves closer to the fall when more consumers are out shopping for pants and jeans. That'll be welcome news for apparel and footwear retailers because whenever trends shift, it tends to trigger a surge in demand for new clothes, she said. ""If we are to get a full fledged restocking in any of these styles, it tends to be a big positive for the sector,"" said Stichter. ""Anytime you have a big silhouette shift, it's positive for restocking cycles. It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for."" For those who've only just stocked up their closet on baggy and loose fits, the current jean du jour, rest assured that there's room for both. If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter.Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead. ""The denim closet really should have all varieties of denim. It really is about what you're wearing, what your mood is, and people still wear skinny today,"" said Gass. ""So keep your loose, keep your baggie. Everything right now goes.""",CNBC,10/02/2025,"['In this articleThe vilified linchpin of millennial and Y2K fashion – the skinny jean – might be on its way to a comeback.', 'Over the last few months, a range of skinny styles, including pants and jeans, have cropped up on fashion runways, influencer videos and Google search trends, indicating the divisive garment could soon be a closet staple again.', 'Part of the buzz around skinny jeans undoubtedly came when TikTok star and Gen Z influencer Alix Earle debuted a pair of exclusive skinnies with denim brand Frame at the end of January, but the hype was already building before that.', '""For like the last six months, we started to hear rumblings of skinny jeans making a comeback,"" said Janine Stichter, a retail analyst and managing director at BTIG. ""', ""If you look at Google Trends data for skinny jeans ... it actually [spiked] the week of January 12 and it's been picking up steam ever since."", '""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.', 'That likely led to a spike in interest across retailers.', 'Reformation told CNBC this week its customers have been searching for skinny jeans on its website more frequently lately.', 'American Eagle has also seen interest grow.', '""Certainly, there\'s a lot of activity on skinny.', 'I would like to say there\'s a styling thing that\'s happening, the high boot situation, and high boots and skinny jeans work, so that\'s definitely taking hold,"" Jen Foyle, American Eagle\'s president and executive creative officer, told CNBC in an interview.', '""You\'re starting to see some of that movement but right now, it\'s still relatively small, but we\'re prepared to roll with it as we test it and scale,"" she continued. ""', 'Our job is to be nimble, right?""But like any fashion trend, the skinny jean resurgence was first spotted on the runways.', ""Based on how the major designers are interpreting the look, it'll appear different this time around."", '""On the runways, Prada, Isabel Morant, Tod\'s, they all did very slim silhouette pants.', ""They're calling them skinny pants."", ""The difference is that they're doing them in plaid, not just solids."", 'They\'re doing them in these very tailored fabrics,"" said Shawn Grain Carter, a fashion professor at the Fashion Institute of Technology in New York. ""', ""We're seeing some of the celebrities wear these skinny jeans, but they're not nearly as conforming … it's different from the jeggings that you saw [between 2009 and 2011]... It conforms to the leg, but it doesn't have to necessarily hug it so tightly that all you see is an outline of a woman's leg."", '""The unofficial queen of denim – Levi Strauss CEO Michelle Gass – spotted the same trend on the runways and told CNBC she expects the controversial jeans to officially come back ""sometime in the future.', '""""While we don\'t have a crystal ball, don\'t get rid of your skinny jeans,"" said Gass. ""', ""I do think when we see a bigger trend re-emerge, it's going to look and feel different."", '""Grain Carter said skinny styles could start appearing in stores more widely by this summer, but Stichtersaid they could start returning to shelves closer to the fall when more consumers are out shopping for pants and jeans.', ""That'll be welcome news for apparel and footwear retailers because whenever trends shift, it tends to trigger a surge in demand for new clothes, she said."", '""If we are to get a full fledged restocking in any of these styles, it tends to be a big positive for the sector,"" said Stichter. ""', ""Anytime you have a big silhouette shift, it's positive for restocking cycles."", ""It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for."", '""For those who\'ve only just stocked up their closet on baggy and loose fits, the current jean du jour, rest assured that there\'s room for both.', ""If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter."", ""Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead."", '""The denim closet really should have all varieties of denim.', 'It really is about what you\'re wearing, what your mood is, and people still wear skinny today,"" said Gass. ""', 'So keep your loose, keep your baggie.', 'Everything right now goes.""']",0.154870661078114,"It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for.","Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead.",0.8036356866359711,"""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.","If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter.",2025-02-14
"Tequila, mezcal are the only spirits growing in sales, but tariffs would be 'catastrophic,' industry group says",https://www.cnbc.com/2025/02/11/tequila-mezcal-sales-are-growing-but-mexico-tariffs-may-hit-industry.html,2025-02-11T22:34:42+0000,"The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday.Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.That is the first time revenue for the spirits category has fallen in more than two decades. Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019. Between 2003 and 2019, the average annual growth rate was 4.4%.""While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,"" said DISCUS President and CEO Chris Swonger.Tequila and mezcal remained a bright spot for the year as the only spirits category showing sales growth, as revenue climbed 2.9% to $6.7 billion.Top five spirits categories by revenue in 2024:Premixed ready-to-drink cocktails grew double digits, but the category includes various types of mixed spirits including vodka, rum, whiskey and cordials.Mexican spirits and beer have grown more popular with consumers for over two decades, and tequila and mezcal sales outpaced American whiskey for the first time in 2023.The road ahead for the Mexico-based products remains uncertain. The Trump administration earlier this month delayed imposing tariffs on imports from Mexico — which would include distinctive products such as mezcal and tequila — by one month while tariff negotiations continue.""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. ""Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry,"" Hart added.Swonger also noted that tariffs would be a ""catastrophic blow"" to distillers and only add to the pressure higher interest rates have put on the industry's supply chain, as wholesalers and retailers continue to deplete inventory buildups and cautiously restock products.""Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,"" said Swonger. ""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.",CNBC,11/02/2025,"['The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday.', 'Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.', 'That is the first time revenue for the spirits category has fallen in more than two decades.', 'Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019.', 'Between 2003 and 2019, the average annual growth rate was 4.4%.""While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,"" said DISCUS President and CEO Chris Swonger.', 'Tequila and mezcal remained a bright spot for the year as the only spirits category showing sales growth, as revenue climbed 2.9% to $6.7 billion.', 'Top five spirits categories by revenue in 2024:Premixed ready-to-drink cocktails grew double digits, but the category includes various types of mixed spirits including vodka, rum, whiskey and cordials.', 'Mexican spirits and beer have grown more popular with consumers for over two decades, and tequila and mezcal sales outpaced American whiskey for the first time in 2023.The road ahead for the Mexico-based products remains uncertain.', 'The Trump administration earlier this month delayed imposing tariffs on imports from Mexico — which would include distinctive products such as mezcal and tequila — by one month while tariff negotiations continue.', '""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. ""', 'Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry,"" Hart added.', 'Swonger also noted that tariffs would be a ""catastrophic blow"" to distillers and only add to the pressure higher interest rates have put on the industry\'s supply chain, as wholesalers and retailers continue to deplete inventory buildups and cautiously restock products.', '""Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,"" said Swonger.', '""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.']",0.1879811171130622,"""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.","""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. """,-0.0776780385237473,"Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019.","Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.",2025-02-14
Comcast and NBCUniversal receive FCC inquiry on DEI initiatives,https://www.cnbc.com/2025/02/12/comcast-nbcuniversal-fcc-inquiry-dei.html,2025-02-13T13:17:55+0000,"In this articleThe Federal Communications Commission has alerted Comcast Corp. that it will begin an investigation into the diversity, equity and inclusion efforts at the media giant.The FCC, the agency that regulates the media and telecommunications industry, said in a letter dated Tuesday that it would open the inquiry into both Comcast — which provides broadband, mobile and cable TV services under the Xfinity brand — and NBCUniversal, the media arm that encompasses the company's broadcast and cable TV networks, streaming app Peacock, and Universal film studio and amusement parks.The letter comes three weeks after President Donald Trump signed an executive order looking to end DEI practices at U.S. corporations. The order calls for each federal agency to ""identify up to nine potential civil compliance investigations"" among publicly traded companies, as well as nonprofits and other institutions.FCC Chairman Brendan Carr, a Republican who was recently appointed by Trump, said he was starting his investigation with Comcast and NBCUniversal because they ""cover a range of sectors regulated by the FCC.""""We have received an inquiry from the Federal Communications Commission and will be cooperating with the FCC to answer their questions,"" a Comcast spokesperson said in a statement Wednesday. ""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers."" Carr said in the letter sent to Comcast that he was ""concerned that Comcast and NBCUniversal may be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.""The letter goes on to say that ""Comcast states on its website that promoting DEI is 'a core value of our business' and public reports state that Comcast has an entire 'DEI infrastructure' that includes annual 'DEI day[s],' 'DEI training for company leaders,' and similar initiatives."" The letter says NBCUniversal has similar initiatives, ""including executives specifically dedicated to promoting DEI across the TV and programming side of the business.""Later on Wednesday, FCC Commissioner Geoffrey Starks issued a statement condemning the investigation and requesting to receive more information. He noted that when Carr was a commissioner himself, he ""blasted the prior administration for acting in a way that 'gives the FCC a nearly limitless power to veto private sector decision.'""""From what I know this enforcement action is out of our lane and out of our reach. I have asked for a briefing to understand the Enforcement Bureau's theory of the case, the authority relied upon and any prior precedent. This action gives me grave concern,"" Starks said in a statement. An FCC representative didn't immediately respond for comment regarding the statement from Starks.Fellow media giant Disney is changing its DEI programs, which includes updating performance factors and rebranding initiatives and employee resource groups, among other things, the company confirmed Wednesday.Public broadcaster PBS is shutting down its DEI office. A PBS representative confirmed that those employees were leaving the company, noting it was to stay in compliance with Trump's executive order.""We will continue to adhere to our mission and values. PBS will continue to reflect all of America and remain a welcoming place for everyone,"" the broadcaster said in a statement.Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.— CNBC's Sarah Whitten contributed to this article.",CNBC,13/02/2025,"['In this articleThe Federal Communications Commission has alerted Comcast Corp. that it will begin an investigation into the diversity, equity and inclusion efforts at the media giant.', ""The FCC, the agency that regulates the media and telecommunications industry, said in a letter dated Tuesday that it would open the inquiry into both Comcast — which provides broadband, mobile and cable TV services under the Xfinity brand — and NBCUniversal, the media arm that encompasses the company's broadcast and cable TV networks, streaming app Peacock, and Universal film studio and amusement parks."", 'The letter comes three weeks after President Donald Trump signed an executive order looking to end DEI practices at U.S. corporations.', 'The order calls for each federal agency to ""identify up to nine potential civil compliance investigations"" among publicly traded companies, as well as nonprofits and other institutions.', 'FCC Chairman Brendan Carr, a Republican who was recently appointed by Trump, said he was starting his investigation with Comcast and NBCUniversal because they ""cover a range of sectors regulated by the FCC.""""We have received an inquiry from the Federal Communications Commission and will be cooperating with the FCC to answer their questions,"" a Comcast spokesperson said in a statement Wednesday.', '""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers.', '""Carr said in the letter sent to Comcast that he was ""concerned that Comcast and NBCUniversal may be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.', '""The letter goes on to say that ""Comcast states on its website that promoting DEI is \'a core value of our business\' and public reports state that Comcast has an entire \'DEI infrastructure\' that includes annual \'DEI day[s],\' \'DEI training for company leaders,\' and similar initiatives.""', 'The letter says NBCUniversal has similar initiatives, ""including executives specifically dedicated to promoting DEI across the TV and programming side of the business.', '""Later on Wednesday, FCC Commissioner Geoffrey Starks issued a statement condemning the investigation and requesting to receive more information.', 'He noted that when Carr was a commissioner himself, he ""blasted the prior administration for acting in a way that \'gives the FCC a nearly limitless power to veto private sector decision.', '\'""""From what I know this enforcement action is out of our lane and out of our reach.', ""I have asked for a briefing to understand the Enforcement Bureau's theory of the case, the authority relied upon and any prior precedent."", 'This action gives me grave concern,"" Starks said in a statement.', ""An FCC representative didn't immediately respond for comment regarding the statement from Starks."", 'Fellow media giant Disney is changing its DEI programs, which includes updating performance factors and rebranding initiatives and employee resource groups, among other things, the company confirmed Wednesday.', 'Public broadcaster PBS is shutting down its DEI office.', ""A PBS representative confirmed that those employees were leaving the company, noting it was to stay in compliance with Trump's executive order."", '""We will continue to adhere to our mission and values.', 'PBS will continue to reflect all of America and remain a welcoming place for everyone,"" the broadcaster said in a statement.', 'Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.—', ""CNBC's Sarah Whitten contributed to this article.""]",0.1599878249686233,"""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers.","This action gives me grave concern,"" Starks said in a statement.",-0.982764333486557,,"This action gives me grave concern,"" Starks said in a statement.",2025-02-14
"McDonald's revenue disappoints, as U.S. sales see worst drop since pandemic",https://www.cnbc.com/2025/02/10/mcdonalds-mcd-q4-2024-earnings.html,2025-02-10T21:25:20+0000,"In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.But shares of the company rose nearly 5% as executives predicted sales would improve in 2025.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company's overall same-store sales growth of 0.4% outperformed Wall Street's expectations of same-store sales declines of 1%, according to StreetAccount estimates.But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company's domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.McDonald's said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald's U.S. same-store sales tick up in the third quarter.However, analysts have warned that value meals only work if customers also add menu items that aren't discounted to their orders. McDonald's executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.The biggest hit to McDonald's U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald's switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.However, in the days following the news of the outbreak, traffic at McDonald's U.S. restaurants fell steeply, particularly in the states affected.U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.McDonald's expects its U.S. sales to recover by the beginning of the second quarter, executives said.""I think right now what we're seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,"" CEO Chris Kempczinski said on the company's conference call. ""So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.Outside the U.S., sales were stronger. Both of McDonald's international divisions reported same-store sales increases, bolstering the company's overall performance.The company's international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.McDonald's international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.McDonald's reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald's earned $2.83 per share.Looking to 2025, the first quarter is expected to be the low point for McDonald's same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.For the full year, McDonald's plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company's international developmental licensed markets, including about 1,000 new restaurants in China.Including its investments in restaurant openings, McDonald's plans to spend between $3 billion and $3.2 billion this year on capital expenditures.The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.",CNBC,10/02/2025,"[""In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter."", ""But shares of the company rose nearly 5% as executives predicted sales would improve in 2025.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Net sales of $6.39 billion were roughly flat compared with the year-ago period."", ""The company's overall same-store sales growth of 0.4% outperformed Wall Street's expectations of same-store sales declines of 1%, according to StreetAccount estimates."", ""But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales."", ""Same-store sales at the company's domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.McDonald's said traffic was slightly positive, but customers spent less than usual during the quarter."", 'Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales.', ""The strategy worked, helping McDonald's U.S. same-store sales tick up in the third quarter."", ""However, analysts have warned that value meals only work if customers also add menu items that aren't discounted to their orders."", ""McDonald's executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.The biggest hit to McDonald's U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers."", ""McDonald's switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak."", 'In early December, the CDC declared the outbreak officially over.', ""However, in the days following the news of the outbreak, traffic at McDonald's U.S. restaurants fell steeply, particularly in the states affected."", 'U.S. sales hit their nadir in early November, but began rising again after that.', 'In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.', ""McDonald's expects its U.S. sales to recover by the beginning of the second quarter, executives said."", '""I think right now what we\'re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,"" CEO Chris Kempczinski said on the company\'s conference call. ""', 'So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.', '""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year.', 'In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.', 'Outside the U.S., sales were stronger.', ""Both of McDonald's international divisions reported same-store sales increases, bolstering the company's overall performance."", ""The company's international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.McDonald's international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%."", 'The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter.', 'One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.', ""McDonald's reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier."", ""Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald's earned $2.83 per share."", ""Looking to 2025, the first quarter is expected to be the low point for McDonald's same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors."", 'Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.', ""For the full year, McDonald's plans to open roughly 2,200 restaurants."", 'About a quarter of those locations will be in the U.S. and its international operated markets.', ""The rest will be in the company's international developmental licensed markets, including about 1,000 new restaurants in China."", ""Including its investments in restaurant openings, McDonald's plans to spend between $3 billion and $3.2 billion this year on capital expenditures."", 'The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.']",0.0983895484675885,"""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year.","In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.",0.0441114202789638,"Outside the U.S., sales were stronger.",But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales.,2025-02-14
"GM expects to mitigate up to 50% of potential North American tariffs, which Ford describes as 'chaos'",https://www.cnbc.com/2025/02/11/ford-ceo-says-trumps-tariffs-are-causing-chaos-in-auto-industry.html,2025-02-12T12:19:23+0000,"In this articleDETROIT — General Motors believes it can mitigate up to 50% of potential tariffs President Donald Trump is threatening to impose on imports from Canada and Mexico, CEO Mary Barra said Tuesday.The chief executive said the Detroit automaker has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the U.S. from the two neighboring countries. That includes potentially avoiding short-term impacts of between 30% and 50% of the additional costs ""without deploying any capital.""""We are prepared,"" Barra said Tuesday during a Wolfe Research investment conference. ""When we know exactly what's going to happen and/or even have an indication of what's going to happen, we know the steps we could take.""GM CFO Paul Jacobson, who appeared with Barra, added that if tariffs were prolonged, the company could take additional measures such as shifting production or parts or vehicles.The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico. That includes many of its lower-priced electric vehicles as well as its highly profitable full-size pickup trucks.Barra's comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump's tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.Farley described this week's 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding ""a lot of cost, and a lot of chaos"" to the industry.""President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""So far what we're seeing is a lot of cost, and a lot of chaos.""Farley and incoming Ford CFO Sherry House said a majority of the company's steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.Barra noted GM is ""evaluating"" the impact of the steel and aluminum tariffs on its business, but said the company sources a ""significant"" amount of both from the U.S. In the short term, she said GM also has fixed pricing on such purchases.Both GM and Ford contributed $1 million each, along with vehicles, to Trump's inauguration. Executives with both also have confirmed they've talked with Trump about the auto industry.House on Tuesday said the biggest concern for Ford is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker's business.""We'll have to deal with it. That's what I'm talking about cost of chaos. A little here, a little there. … This is what we're dealing with right now,"" Farley said.Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying a long-term 25% tariff that could go into effect as soon as March 1 would be ""devastating"" and ""blow a hole in the U.S. industry that we've never seen.""Ford has previously said it believes short-term tariffs are manageable. House on Tuesday said the automaker is ""not making a lot of large decisions at this point, as it awaits the potential impacts.The White House did not immediately respond for comment about Farley's remarks.Farley said he is traveling Wednesday to Washington, D.C., for the second time in three weeks to meet with government officials, including members of Congress, to stress how the policy uncertainty is impacting the industry.Last week Farley also said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries.Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively, that have little to no duties compared with the 25% tariff Trump plans to impose on Canada and Mexico.Ford regularly touts its American business, including in ad campaigns. The company is the No. 1 auto producer in the U.S., with the most vehicles domestically assembled as well as exported to other countries.Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada. An earlier version misstated one of the countries.",CNBC,12/02/2025,"['In this articleDETROIT — General Motors believes it can mitigate up to 50% of potential tariffs President Donald Trump is threatening to impose on imports from Canada and Mexico, CEO Mary Barra said Tuesday.', 'The chief executive said the Detroit automaker has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the U.S. from the two neighboring countries.', 'That includes potentially avoiding short-term impacts of between 30% and 50% of the additional costs ""without deploying any capital.', '""""We are prepared,"" Barra said Tuesday during a Wolfe Research investment conference. ""', ""When we know exactly what's going to happen and/or even have an indication of what's going to happen, we know the steps we could take."", '""GM CFO Paul Jacobson, who appeared with Barra, added that if tariffs were prolonged, the company could take additional measures such as shifting production or parts or vehicles.', ""The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico."", 'That includes many of its lower-priced electric vehicles as well as its highly profitable full-size pickup trucks.', 'Barra\'s comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump\'s tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.', 'Farley described this week\'s 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding ""a lot of cost, and a lot of chaos"" to the industry.', '""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""', ""So far what we're seeing is a lot of cost, and a lot of chaos."", '""Farley and incoming Ford CFO Sherry House said a majority of the company\'s steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.', 'Barra noted GM is ""evaluating"" the impact of the steel and aluminum tariffs on its business, but said the company sources a ""significant"" amount of both from the U.S. In the short term, she said GM also has fixed pricing on such purchases.', ""Both GM and Ford contributed $1 million each, along with vehicles, to Trump's inauguration."", ""Executives with both also have confirmed they've talked with Trump about the auto industry."", ""House on Tuesday said the biggest concern for Ford is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker's business."", '""We\'ll have to deal with it.', ""That's what I'm talking about cost of chaos."", 'A little here, a little there. …', 'This is what we\'re dealing with right now,"" Farley said.', 'Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying a long-term 25% tariff that could go into effect as soon as March 1 would be ""devastating"" and ""blow a hole in the U.S. industry that we\'ve never seen.', '""Ford has previously said it believes short-term tariffs aremanageable.', 'House on Tuesday said the automaker is ""not making a lot of large decisions at this point, as it awaits the potential impacts.', ""The White House did not immediately respond for comment about Farley's remarks."", 'Farley said he is traveling Wednesday to Washington, D.C., for the second time in three weeks to meet with government officials, including members of Congress, to stress how the policy uncertainty is impacting the industry.', 'Last week Farley also said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries.', 'Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan andSouth Korea, respectively, that have little to no duties compared with the 25% tariff Trumpplans to impose on Canada and Mexico.', 'Ford regularly touts its American business, including in ad campaigns.', 'The company is the No.', '1 auto producer in the U.S., with the most vehicles domestically assembled as well as exported to other countries.', 'Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada.', 'An earlier version misstated one of the countries.']",-0.0759660477189732,"""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""","Barra's comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump's tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.",-0.3969160795211792,"""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""","The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico.",2025-02-14
"Roku shares surge as company halves quarterly losses, adds 4 million streaming households",https://www.cnbc.com/2025/02/14/roku-shares-surge-as-company-nearly-halves-quarterly-losses.html,2025-02-14T21:01:38+0000,"In this articleShares of Roku surged 14% Friday, notching a new 52-week high, on earnings that beat Wall Street expectations.In an interview on CNBC's ""Squawk Box,"" CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.Wood said the company added more than four million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin.""We're the No. 1 streaming operating system in the country and in most of the Americas by a wide margin,"" he said.Here's how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company boosted revenue by 22% to $1.2 billion. It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase. Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.""Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,"" Wood said.The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.",CNBC,14/02/2025,"['In this articleShares of Roku surged 14% Friday, notching a new 52-week high, on earnings that beat Wall Street expectations.', 'In an interview on CNBC\'s ""Squawk Box,"" CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.', 'Wood said the company added more than four million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.', ""The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin."", '""We\'re the No.', '1 streaming operating system in the country and in most of the Americas by a wide margin,"" he said.', ""Here's how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company boosted revenue by 22% to $1.2 billion."", 'It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.', 'Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase.', 'Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.', 'Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.', '""Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,"" Wood said.', 'The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.']",0.1704985061856122,"The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin.","""We're the No.",0.9994687363505363,"Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.",,2025-02-14
"U.S. investors, Big Pharma race to find new medicines in China",https://www.cnbc.com/2025/02/13/china-biopharma-deals-rise-with-summit-merck.html,2025-02-13T13:45:01+0000,"A little-known biotech company stunned the biopharmaceutical industry last spring when it declared an ""unprecedented"" achievement: its experimental cancer drug looked more effective than Merck's Keytruda in a clinical trial. The company, Summit Therapeutics, licensed the drug from Chinese company Akeso Inc. In October, a group of life science investors announced they were putting $400 million into creating a company called Kailera Therapeutics that would develop experimental obesity drugs it bought from Chinese company Jiangsu Hengrui Pharmaceuticals.Then in a matter of days in December, Merck disclosed it would license a potential competitor to Summit's drug and a separate experimental obesity pill – both from Chinese companies. Suddenly, U.S. companies are racing to find medicines in China. Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma. ""That's stunning to me,"" said Chen Yu, founder and managing partner at crossover fund TCGX. ""That's stunning."" Yu said 20 years ago, few biopharma companies were interested in China because they considered it a small market. His former firm, Vivo Capital, pioneered the concept of bringing U.S. medicines to the Chinese market.Today, the movement is going in the opposite direction. He never imagined the proliferation that's taking place now. Investors and industry insiders offer a few reasons for the trend: Chinese companies are creating better molecules than ever before – and more of them. They can start testing those compounds in humans sooner and at a lower price than in the U.S. Buyers have figured out a business model to essentially import the drugs through licensing deals. Venture funding in China has also dried up, forcing biotech companies to do deals. One thing all of those people in the industry agree on? This trend isn't going away.What's less clear is what the development means for the U.S. biotech sector. Some people contend it's terrible for American startups if large pharmaceutical companies can find a promising drug in China for a fraction of the price. Others argue competition makes everyone better, and American companies will ultimately reap the rewards of bringing medicines to the market. Either way, the influx could reshape the landscape of the U.S. biopharma industry. ""It's kind of a watershed moment where the pharma industry is like, 'We don't really need to buy U.S. biotechs necessarily,'"" said Tim Opler, a managing director in Stifel's global health-care group. ""We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies."" Bain Capital Life Sciences started making China a priority around 2018, said Adam Koppel, a partner at the fund. The private equity firm saw the Chinese government and the life sciences industry making a deliberate effort to evolve from its historical focus on copycat and fast-follower drugs that mimicked leading drugs to creating new chemical matter that China could export to the rest of the world. Since then, Bain has struck six biopharma deals in China. It bought an experimental asthma drug from Hengrui in 2023 and co-launched a company called Aiolos with a $245 million series A funding round. GSK acquired the company three months later for up to $1.4 billion. Koppel sees more large pharmaceutical companies growing comfortable with drugs coming out of China as they work with more of them and see their outcomes, he said. Buyers had held back in part because they worried data from China wasn't representative of a global population and U.S. regulators wouldn't accept it. ""As they're seeing assets then come out, they're seeing things that are having success, and eventually, as things get approved and used on the market, I think that that concern will become lessened,"" he said. That narrative was on display when Summit Therapeutics last year said its experimental cancer drug beat Merck's mega-blockbuster Keytruda in a head-to-head study, a feat no other drug has accomplished. Summit's trial was conducted exclusively in China, making people question if the results would hold up elsewhere. When Summit's leaders were shopping for a drug they could develop, they made it a point to look in China because co-CEO Bob Duggan had read more new medicines were coming from the country. But it was late 2022, and the U.S. Food and Drug Administration had just rejected a few applications for drugs that were studied only in China, including one from Eli Lilly.When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh.""And suddenly after us, a lot of people opened their eyes,"" she said.Ivonescimab had already undergone early studies and was in late-stage trials in China when Summit struck the licensing deal. Summit is now running three global phase 3 trials to satisfy the FDA's desire for drugs to be studied in diverse groups of people. Summit's strategy could become more common. Investors and other industry insiders said one of the draws about doing deals with Chinese biotech companies is they can find molecules that have already undergone early studies at a lower price than in the U.S. So the U.S. businesses know what they're getting, and they can probably get it for less.  Gilead spends a lot of time in China looking for assets like it does in the U.S. and Europe, the company's chief financial officer, Andrew Dickinson, told CNBC. Gilead has seen a ""substantial shift"" in the quality and quantity of assets being developed in China and being offered to U.S. biopharma companies.""The transformation over the last five years is real and impressive,"" Dickinson said. It helps that more Chinese companies need to do deals now. The amount of venture funds raised by the Chinese biotech industry cratered to just $1 billion last year from a peak of $6.3 billion in 2021, according to data provided by TCGX's Yu. ""Why would we do any early-stage development in the U.S. anymore?"" Yu said. ""Why wouldn't we just get clinical proof of concept in China and then bring it over to the U.S. for the expensive clinical development when we actually know the drug works? And I think that could be a very revolutionary new way for our industry to become more efficient.""That's an opportunity – or risk – for the U.S. biopharma industry, depending on who you ask. Some, like Yu, see it as a way to bring down the price of prescription drugs. Others worry it could hobble U.S. companies if Merck and other large pharmaceutical companies pass on acquiring American startups in favor of licensing assets from China.The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%. Viking is seen as an acquisition target since it's developing drugs in the red-hot obesity space, and suddenly it looked like one possible suitor had chosen to spend its money elsewhere. People see parallels to what happened in the artificial intelligence space when China's DeepSeek declared it had created a model that was just as good as U.S. models for much less than American companies are spending. President Donald Trump or U.S. policymakers could see the similar trend in biotech as a threat and intervene to stop these deals, what Yu calls the ""stroke of a pen"" risk. Lawmakers last year floated the Biosecure Act that would have restricted U.S. companies from working with Chinese contract manufacturers. Washington has already embraced protectionist policies in other competitive areas like artificial intelligence and semiconductors. It's possible that could extend to life sciences. ""The deeper message from DeepSeek is that we have competition in the high sciences in general, and moreover that China is making major investments to develop scientific assets,"" said Stifel's Opler.Put another way: the race in biopharma is on.",CNBC,13/02/2025,"['A little-known biotech company stunned the biopharmaceutical industry last spring when it declared an ""unprecedented"" achievement: its experimental cancer drug looked more effective than Merck\'s Keytruda in a clinical trial.', 'The company, Summit Therapeutics, licensed the drug from Chinese company Akeso Inc.In October, a group of life science investors announced they were putting $400 million into creating a company called Kailera Therapeutics that would develop experimental obesity drugs it bought from Chinese company Jiangsu Hengrui Pharmaceuticals.', ""Then in a matter of days in December, Merck disclosed it would license a potential competitor to Summit's drug and a separate experimental obesity pill – both from Chinese companies."", 'Suddenly, U.S. companies are racing to find medicines in China.', 'Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma.', '""That\'s stunning to me,"" said Chen Yu, founder and managing partner at crossover fund TCGX. ""', ""That's stunning."", '""Yu said 20 years ago, few biopharma companies were interested in China because they considered it a small market.', 'His former firm, Vivo Capital, pioneered the concept of bringing U.S. medicines to the Chinese market.', 'Today, the movement is going in the opposite direction.', ""He never imagined the proliferation that's taking place now."", 'Investors and industry insiders offer a few reasons for the trend: Chinese companies are creating better molecules than ever before – and more of them.', 'They can start testing those compounds in humans sooner and at a lower price than in the U.S. Buyers have figured out a business model to essentially import the drugs through licensing deals.', 'Venture funding in China has also dried up, forcing biotech companies to do deals.', 'One thing all of those people in the industry agree on?', ""This trend isn't going away."", ""What's less clear is what the development means for the U.S. biotech sector."", ""Some people contend it's terrible for American startups if large pharmaceutical companies can find a promising drug in China for a fraction of the price."", 'Others argue competition makes everyone better, and American companies will ultimately reap the rewards of bringing medicines to the market.', 'Either way, the influx could reshape the landscape of the U.S. biopharma industry.', '""It\'s kind of a watershed moment where the pharma industry is like, \'We don\'t really need to buy U.S. biotechs necessarily,\'"" said Tim Opler, a managing director in Stifel\'s global health-care group. ""', 'We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies.', '""Bain Capital Life Sciences started making China a priority around 2018, said Adam Koppel, a partner at the fund.', 'The private equity firm saw the Chinese government and the life sciences industry making a deliberate effort to evolve from its historical focus on copycat and fast-follower drugs that mimicked leading drugs to creating new chemical matter that China could export to the rest of the world.', 'Since then, Bain has struck six biopharma deals in China.', 'It bought an experimental asthma drug from Hengrui in 2023 and co-launched a company called Aiolos with a $245 million series A funding round.', 'GSK acquired the company three months later for up to $1.4 billion.', 'Koppel sees more large pharmaceutical companies growing comfortable with drugs coming out of China as they work with more of them and see their outcomes, he said.', ""Buyers had held back in part because they worried data from China wasn't representative of a global population and U.S. regulators wouldn't accept it."", '""As they\'re seeing assets then come out, they\'re seeing things that are having success, and eventually, as things get approved and used on the market, I think that that concern will become lessened,"" he said.', ""That narrative was on display when Summit Therapeutics last year said its experimental cancer drug beat Merck's mega-blockbuster Keytruda in a head-to-head study, a feat no other drug has accomplished."", ""Summit's trial was conducted exclusively in China, making people question if the results would hold up elsewhere."", ""When Summit's leaders were shopping for a drug they could develop, they made it a point to look in China because co-CEO Bob Duggan had read more new medicines were coming from the country."", 'But it was late 2022, and the U.S. Food and Drug Administration had just rejected a few applications for drugs that were studied only in China, including one from Eli Lilly.', ""When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh."", '""And suddenly after us, a lot of people opened their eyes,"" she said.', 'Ivonescimab had already undergone early studies and was in late-stage trials in China when Summit struck the licensing deal.', ""Summit is now running three global phase 3 trials to satisfy the FDA's desire for drugs to be studied in diverse groups of people."", ""Summit's strategy could become more common."", ""Investors and other industry insiders said one of the draws about doing deals with Chinese biotech companies is they can find molecules that have already undergone early studies at a lower price than in the U.S. So the U.S. businesses know what they're getting, and they can probably get it for less."", ""Gilead spends a lot of time in China looking for assets like it does in the U.S. and Europe, the company's chief financial officer, Andrew Dickinson, told CNBC."", 'Gilead has seen a ""substantial shift"" in the quality and quantity of assets being developed in China and being offered to U.S. biopharma companies.', '""The transformation over the last five years is real and impressive,"" Dickinson said.', 'It helps that more Chinese companies need to do deals now.', ""The amount of venture funds raised by the Chinese biotech industry cratered to just $1 billion last year from a peak of $6.3 billion in 2021, according to data provided by TCGX's Yu."", '""Why would we do any early-stage development in the U.S. anymore?""', 'Yu said. ""', ""Why wouldn't we just get clinical proof of concept in China and then bring it over to the U.S. for the expensive clinical development when we actually know the drug works?"", 'And I think that could be a very revolutionary new way for our industry to become more efficient.', '""That\'s an opportunity – or risk – for the U.S. biopharma industry, depending on who you ask.', 'Some, like Yu, see it as a way to bring down the price of prescription drugs.', 'Others worry it could hobble U.S. companies if Merck and other large pharmaceutical companies pass on acquiring American startups in favor of licensing assets from China.', ""The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%."", ""Viking is seen as an acquisition target since it's developing drugs in the red-hot obesity space, and suddenly it looked like one possible suitor had chosen to spend its money elsewhere."", ""People see parallels to what happened in the artificial intelligence space when China's DeepSeek declared it had created a model that was just as good as U.S. models for much less than American companies are spending."", 'President Donald Trump or U.S. policymakers could see the similar trend in biotech as a threat and intervene to stop these deals, what Yu calls the ""stroke of a pen"" risk.', 'Lawmakers last year floated the Biosecure Act that would have restricted U.S. companies from working with Chinese contract manufacturers.', 'Washington has already embraced protectionist policies in other competitive areas like artificial intelligence and semiconductors.', ""It's possible that could extend to life sciences."", '""The deeper message from DeepSeek is that we have competition in the high sciences in general, and moreover that China is making major investments to develop scientific assets,"" said Stifel\'s Opler.', 'Put another way: the race in biopharma is on.']",0.1501168131928939,"We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies.","When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh.",0.3858429810096477,"Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma.","The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%.",2025-02-14
"Biogen beats estimates on cost cuts and new drugs like Leqembi, but profit outlook falls short",https://www.cnbc.com/2025/02/12/biogen-biib-earnings-q4-2024.html,2025-02-12T16:20:04+0000,"In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth. But the biotech company's guidance for the current year missed Wall Street's expectations. Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell short of the $16.34 per share that analysts were anticipating, according to LSEG. That reflects a foreign exchange headwind of 35 cents per share, Biogen said.  Biogen expects revenue to decline by a ""mid-single digit"" percentage in 2025 compared with 2024, as sales of its multiple sclerosis products fall. That portion of the business has declined for several quarters as some of those therapies face generic competition. But Biogen expects Leqembi, along with its new rare disease and depression treatments, to help offset that sliding revenue this year. Leqembi generated $87 million in revenue for the fourth quarter, including $50 million in the U.S. Analysts had expected the drug to book $67 million in sales, according to estimates from StreetAccount. Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023. The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, the need for regular brain scans and the difficulty of finding neurologists, among other issues. Here's what Biogen reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Biogen booked sales of $2.46 billion for the quarter, which is up around 3% from the year-earlier period. The drugmaker posted net income of $266.8 million, or $1.83 per share, for the quarter. That compares with net income of $249.7 million, or $1.71 per share, for the same period a year ago. Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $3.44 per share.Biogen first initiated a cost-cutting program in 2023. The company expects to generate $1 billion in gross savings, or $800 million net savings, by the end of 2025. Also on Wednesday, Royalty Pharma announced an agreement to provide $250 million in research and development funding to Biogen for litifilimab, a key drug in its pipeline that is being studied to treat lupus. Royalty Pharma, a leading funder of the biotech and pharmaceutical industry, will be eligible for regulatory milestones and certain royalties.Another new drug, Skyclarys, booked $102 million in sales for the fourth quarter, almost double what it reported in the year-earlier period.Analysts had expected sales of around $112 million for the quarter, according to StreetAccount. Skyclarys came from Biogen's acquisition of Reata Pharmaceuticals in July 2023. The Food and Drug Administration greenlit Skyclarys in 2023, making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5. Zurzuvae, the first pill for postpartum depression, generated fourth-quarter sales of $22.9 million. Analysts had expected it to post $26 million in sales, StreetAccount estimates said.Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion.Correction: Biogen's fourth-quarter sales from multiple sclerosis treatments fell to $1.07 billion. An earlier version misstated the period.",CNBC,12/02/2025,"[""In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth."", ""But the biotech company's guidance for the current year missed Wall Street's expectations."", 'Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell short of the $16.34 per share that analysts were anticipating, according to LSEG.', 'That reflects a foreign exchange headwind of 35 cents per share, Biogen said.', 'Biogen expects revenue to decline by a ""mid-single digit"" percentage in 2025 compared with 2024, as sales of its multiple sclerosis products fall.', 'That portion of the business has declined for several quarters as some of those therapies face generic competition.', 'But Biogen expects Leqembi, along with its new rare disease and depression treatments, to help offset that sliding revenue this year.', 'Leqembi generated $87 million in revenue for the fourth quarter, including $50 million in the U.S. Analysts had expected the drug to book $67 million in sales, according to estimates from StreetAccount.', ""Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023."", ""The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, the need for regular brain scans and the difficulty of finding neurologists, among other issues."", ""Here's what Biogen reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Biogen booked sales of $2.46 billion for the quarter, which is up around 3% from the year-earlier period."", 'The drugmaker posted net income of $266.8 million, or $1.83 per share, for the quarter.', 'That compares with net income of $249.7 million, or $1.71 per share, for the same period a year ago.', 'Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $3.44 per share.', 'Biogen first initiated a cost-cutting program in 2023.', 'The company expects to generate $1 billion in gross savings, or $800 million net savings, by the end of 2025.Also on Wednesday, Royalty Pharma announced an agreement to provide $250 million in research and development funding to Biogen for litifilimab, a key drug in its pipeline that is being studied to treat lupus.', 'Royalty Pharma, a leading funder of the biotech and pharmaceutical industry, will be eligible for regulatory milestones and certain royalties.', 'Another new drug, Skyclarys, booked $102 million in sales for the fourth quarter, almost double what it reported in the year-earlier period.', 'Analysts had expected sales of around $112 million for the quarter, according to StreetAccount.', ""Skyclarys came from Biogen's acquisition of Reata Pharmaceuticals in July 2023."", ""The Food and Drug Administration greenlit Skyclarys in 2023,making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5.Zurzuvae, the first pill for postpartum depression, generated fourth-quarter sales of $22.9 million."", 'Analysts had expected it to post $26 million in sales, StreetAccount estimates said.', ""Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion."", ""Correction: Biogen's fourth-quarter sales from multiple sclerosis treatments fell to $1.07 billion."", 'An earlier version misstated the period.']",0.105757228271201,"Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. in 2023.",But the biotech company's guidance for the current year missed Wall Street's expectations.,0.0696674717797173,"In this articleBiogen on Wednesday posted fourth-quarter revenue and profit that topped expectations as its cost cuts showed progress and new products, including its breakthrough Alzheimer's treatment Leqembi, saw growth.","Meanwhile, Biogen's fourth-quarter sales from multiple sclerosis treatments fell 8% to $1.07 billion.",2025-02-14
Trump is unlikely to end Medicare drug price talks — here's what that means for patients and pharma,https://www.cnbc.com/2025/02/10/trump-could-make-changes-to-medicare-drug-price-negotiations.html,2025-02-10T13:40:30+0000,"President Donald Trump likely won't do away with a landmark process that allows Medicare to negotiate drug prices with manufacturers, even as he moves to erase Joe Biden's other historic policy accomplishments. But Trump will likely make some changes to those price talks, and it may not require help from Congress. ""Trump is looking to nibble around the edges of the law,"" said Matthew Kupferberg, a partner in Frier Levitt's life sciences group, adding the president is ""not looking to completely abandon the drug negotiation process at this point.""It's still unclear which way Trump will lean, however. While some lawmakers and health policy experts said Trump could weaken the negotiations in a way that helps the pharmaceutical industry, other experts said he could double down and try to save patients and the federal government even more money to outdo his predecessor. The path he takes could have huge stakes for the prices 68 million Medicare beneficiaries in the U.S. pay for their medications. It will also have big implications for companies like Novo Nordisk, Bristol Myers Squibb, Pfizer and Merck, among others whose drugs were included in the first two rounds of talks.The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade. The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.The Trump administration has offered few specifics on its approach to the negotiations, apart from saying in January that it will aim for ""greater transparency"" in the ongoing second cycle of the process and hear any ideas for improving it from external stakeholders.Making significant changes to the law or repealing it altogether would be an uphill battle because it requires help from Congress, where Republicans hold slim majorities. Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.So the Trump administration could move to implement the provision differently than Biden did, including by changing how the government interprets the law's selection criteria for drugs, among other potential changes.""I think it is a question of how they interpret some of the statutory language,"" said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health policy organization. Cubanski said we can expect a first glimpse at any changes in the coming months.The Trump administration will start the monthslong negotiation process for a second cycle of 15 drugs, which will have new prices go into effect in 2027. The Biden administration selected those medicines in January before Trump took office. Drugmakers have until the end of February to decide whether to participate in the talks, which they likely will because they otherwise face stiff financial penalties.Trump has so far only indicated the need for more transparency in Medicare drug price negotiations. Kupferberg said that could mean disclosing more information about the government's rationale for selecting drugs or settling on prices.During the first round of the talks, Medicare provided opportunities for public input from patients, caregivers and consumer groups. But Kupferberg said the Trump administration could move to bring in other stakeholders beyond manufacturers and patients, like insurers or even middlemen called pharmacy benefit managers. ""It could be a much broader type of negotiation process,"" he said. The administration could also reinterpret the guidelines of the law, which could change what products get selected and how much prices fall, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.For example, the IRA says the drugs selected for negotiations must have been on the market for at least seven years without generic competitors, or 11 years in the case of biologic products such as vaccines. But the Trump administration, when selecting another round of drugs, may have ""looser standards"" for determining whether a drug has competition in the market and should be exempt from negotiated prices, Campbell said. Trump could also revise what Medicare considers one drug for the purpose of negotiations, KFF's Cubanski said. Currently, different products that share the same active ingredient can be selected as a single product, which the pharmaceutical industry opposes. The Biden administration, for example, included three of Novo Nordisk's branded medications with the same active ingredient – semaglutide – as one product in the second cycle of price talks. That includes the weight loss drug Wegovy, diabetes pill Rybelsus and the anti-obesity injection Ozempic. Of the three, Ozempic makes up the lion's share of Medicare spending.Either of those changes to how Medicare selects drugs could benefit drugmakers and lessen the revenue they lose from lower prices. The bigger question is how aggressively Medicare will negotiate prices under Trump, Cubanski said. Currently, the final negotiated price for a drug cannot exceed an upper limit, or ""ceiling"" price, established by the IRA.Trump could influence whether Medicare's initial price offer for a drug is closer to the ceiling price, which could weaken the program's ability to secure a deeper discount. Major changes to the price negotiations are much less likely to occur, as they would require help from Congress. For example, one of the pharmaceutical industry's biggest issues with the process is what drugmakers calls the ""pill penalty."" The law essentially spares biologics like vaccines from new negotiated prices for 13 years after they receive U.S. approval, compared with just nine years for small-molecule drugs that come in a pill or tablet form. The industry contends that the discrepancy discourages companies from investing in the development of small-molecule drugs, which are more convenient for patients.Cubanski said bipartisan legislation was introduced last year that proposes eliminating the pill penalty. If that bill makes it through Congress and to Trump's desk, ""I don't see why he wouldn't sign it,"" Cubanski said. She added that there appears to be growing interest in legislative changes to the negotiation program, but ""whether you get enough support in Congress is still really an open question."" There isn't the same level of bipartisan support for changes to the IRA as there is for efforts like pharmacy benefit manager reform, said Jesse Dresser, partner in Frier Levitt's life sciences department. ""I could see something like [PBM reform] happening a lot sooner than I could see trying to open up the IRA and tweak it, even if it's something that the administration might ultimately get behind,"" Dresser said. It's unclear how Trump will approach the ongoing legal fight between manufacturers and the federal government over the Medicare program.The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court. Nine lawsuits were ongoing as of January.""Will the Trump administration continue to defend the program? Or maybe not as aggressively defend the program?"" Cubanski said. ""I think those are some key questions."" If the Trump administration stops defending the program in court, judges could then make decisions on the matter without any opposition, Kupferberg said. But he said he doesn't believe the administration will want that outcome. The Trump administration would likely ""want to take control of that process, where the parties work out an agreement or revise and change the interpretation of the law,"" Kupferberg said. He added that it doesn't seem like Trump would want the entire negotiation program to disappear based on the lawsuits. That's because it would leave Trump in the position to come up with a replacement for Medicare drug price negotiations, and we ""just haven't seen one yet"" from him, Kupferberg said.",CNBC,10/02/2025,"[""President Donald Trump likely won't do away with a landmark process that allows Medicare to negotiate drug prices with manufacturers, even as he moves to erase Joe Biden's other historic policy accomplishments."", 'But Trump will likely make some changes to those price talks, and it may not require help from Congress.', '""Trump is looking to nibble around the edges of the law,"" said Matthew Kupferberg, a partner in Frier Levitt\'s life sciences group, adding the president is ""not looking to completely abandon the drug negotiation process at this point.', '""It\'s still unclear which way Trump will lean, however.', 'While some lawmakers and health policy experts said Trump could weaken the negotiations in a way that helps the pharmaceutical industry, other experts said he could double down and try to save patients and the federal government even more money to outdo his predecessor.', 'The path he takes could have huge stakes for the prices 68 million Medicare beneficiaries in the U.S. pay for their medications.', 'It will also have big implications for companies like Novo Nordisk, Bristol Myers Squibb, Pfizer and Merck, among others whose drugs were included in the first two rounds of talks.', ""The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade."", 'The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.', 'The Trump administration has offered few specifics on its approach to the negotiations, apart from saying in January that it will aim for ""greater transparency"" in the ongoing second cycle of the process and hear any ideas for improving it from external stakeholders.', 'Making significant changes to the law or repealing it altogether would be an uphill battle because it requires help from Congress, where Republicans hold slim majorities.', 'Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.', ""So the Trump administration could move to implement the provision differently than Biden did, including by changing how the government interprets the law's selection criteria for drugs, among other potential changes."", '""I think it is a question of how they interpret some of the statutory language,"" said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health policy organization.', 'Cubanski said we can expect a first glimpse at any changes in the coming months.', 'The Trump administration will start the monthslong negotiation process for a second cycle of 15 drugs, which will have new prices go into effect in 2027.', 'The Biden administration selected those medicines in January before Trump took office.', 'Drugmakers have until the end of February to decide whether to participate in the talks, which they likely will because they otherwise face stiff financial penalties.', 'Trump has so far only indicated the need for more transparency in Medicare drug price negotiations.', ""Kupferberg said that could mean disclosing more information about the government's rationale for selecting drugs or settling on prices."", 'During the first round of the talks, Medicare provided opportunities for public input from patients, caregivers and consumer groups.', 'But Kupferberg said the Trump administration could move to bring in other stakeholders beyond manufacturers and patients, like insurers or even middlemen called pharmacy benefit managers.', '""It could be a much broader type of negotiation process,"" he said.', 'The administration could also reinterpret the guidelines of the law, which could change what products get selected and how much prices fall, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.', 'For example, the IRA says the drugs selected for negotiations must have been on the market for at least seven years without generic competitors, or 11 years in the case of biologic products such as vaccines.', 'But the Trump administration, when selecting another round of drugs, may have ""looser standards"" for determining whether a drug has competition in the market and should be exempt from negotiated prices, Campbell said.', ""Trump could also revise what Medicare considers one drug for the purpose of negotiations, KFF's Cubanski said."", 'Currently, different products that share the same active ingredient can be selected as a single product, which the pharmaceutical industry opposes.', ""The Biden administration, for example, included three of Novo Nordisk's branded medications with the same active ingredient – semaglutide – as one product in the second cycle of price talks."", 'That includes the weight loss drug Wegovy, diabetes pill Rybelsus and the anti-obesity injection Ozempic.', ""Of the three, Ozempic makes up the lion's share of Medicare spending."", 'Either of those changes to how Medicare selects drugs could benefit drugmakers and lessen the revenue they lose from lower prices.', 'The bigger question is how aggressively Medicare will negotiate prices under Trump, Cubanski said.', 'Currently, the final negotiated price for a drug cannot exceed an upper limit, or ""ceiling"" price, established by the IRA.Trump could influence whether Medicare\'s initial price offer for a drug is closer to the ceiling price, which could weaken the program\'s ability to secure a deeper discount.', 'Major changes to the price negotiations are much less likely to occur, as they would require help from Congress.', 'For example, one of the pharmaceutical industry\'s biggest issues with the process is what drugmakers calls the ""pill penalty.', '""The law essentially spares biologics like vaccines from new negotiated prices for 13 years after they receive U.S. approval, compared with just nine years for small-molecule drugs that come in a pill or tablet form.', 'The industry contends that the discrepancy discourages companies from investing in the development of small-molecule drugs, which are more convenient for patients.', 'Cubanski said bipartisan legislation was introduced last year that proposes eliminating the pill penalty.', 'If that bill makes it through Congress and to Trump\'s desk, ""I don\'t see why he wouldn\'t sign it,"" Cubanski said.', 'She added that there appears to be growing interest in legislative changes to the negotiation program, but ""whether you get enough support in Congress is still really an open question.', '""There isn\'t the same level of bipartisan support for changes to the IRA as there is for efforts like pharmacy benefit manager reform, said Jesse Dresser, partner in Frier Levitt\'s life sciences department.', '""I could see something like [PBM reform] happening a lot sooner than I could see trying to open up the IRA and tweak it, even if it\'s something that the administration might ultimately get behind,"" Dresser said.', ""It's unclear how Trump will approach the ongoing legal fight between manufacturers and the federal government over the Medicare program."", ""The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court."", 'Nine lawsuits were ongoing as of January.', '""Will the Trump administration continue to defend the program?', 'Or maybe not as aggressively defend the program?""', 'Cubanski said. ""', 'I think those are some key questions.', '""If the Trump administration stops defending the program in court, judges could then make decisions on the matter without any opposition, Kupferberg said.', ""But he said he doesn't believe the administration will want that outcome."", 'The Trump administration would likely ""want to take control of that process, where the parties work out an agreement or revise and change the interpretation of the law,"" Kupferberg said.', ""He added that it doesn't seem like Trump would want the entire negotiation program to disappear based on the lawsuits."", 'That\'s because it would leave Trump in the position to come up with a replacement for Medicare drug price negotiations, and we ""just haven\'t seen one yet"" from him, Kupferberg said.']",0.0868428474690438,"Reining in high health-care costs has strong bipartisan support in a nation where patients pay two to three times more for prescription drugs than people in other developed countries, making it a potentially unpopular move for Trump.","The pharmaceutical industry's legal challenges, which argue that the talks are unconstitutional and should be stopped, have so far been unsuccessful in court.",-0.0563547280099656,"The negotiations are a key provision of Biden's Inflation Reduction Act, or IRA, that aims to lower prescription medicine costs for seniors and save the government nearly $100 billion in Medicare spending over the next decade.","The pharmaceutical industry fiercely opposes the price talks, arguing in a flurry of lawsuits that they threaten profits and discourage drug innovation.",2025-02-14
"U.S. investors, Big Pharma race to find new medicines in China",https://www.cnbc.com/2025/02/13/china-biopharma-deals-rise-with-summit-merck.html,2025-02-13T13:45:01+0000,"A little-known biotech company stunned the biopharmaceutical industry last spring when it declared an ""unprecedented"" achievement: its experimental cancer drug looked more effective than Merck's Keytruda in a clinical trial. The company, Summit Therapeutics, licensed the drug from Chinese company Akeso Inc. In October, a group of life science investors announced they were putting $400 million into creating a company called Kailera Therapeutics that would develop experimental obesity drugs it bought from Chinese company Jiangsu Hengrui Pharmaceuticals.Then in a matter of days in December, Merck disclosed it would license a potential competitor to Summit's drug and a separate experimental obesity pill – both from Chinese companies. Suddenly, U.S. companies are racing to find medicines in China. Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma. ""That's stunning to me,"" said Chen Yu, founder and managing partner at crossover fund TCGX. ""That's stunning."" Yu said 20 years ago, few biopharma companies were interested in China because they considered it a small market. His former firm, Vivo Capital, pioneered the concept of bringing U.S. medicines to the Chinese market.Today, the movement is going in the opposite direction. He never imagined the proliferation that's taking place now. Investors and industry insiders offer a few reasons for the trend: Chinese companies are creating better molecules than ever before – and more of them. They can start testing those compounds in humans sooner and at a lower price than in the U.S. Buyers have figured out a business model to essentially import the drugs through licensing deals. Venture funding in China has also dried up, forcing biotech companies to do deals. One thing all of those people in the industry agree on? This trend isn't going away.What's less clear is what the development means for the U.S. biotech sector. Some people contend it's terrible for American startups if large pharmaceutical companies can find a promising drug in China for a fraction of the price. Others argue competition makes everyone better, and American companies will ultimately reap the rewards of bringing medicines to the market. Either way, the influx could reshape the landscape of the U.S. biopharma industry. ""It's kind of a watershed moment where the pharma industry is like, 'We don't really need to buy U.S. biotechs necessarily,'"" said Tim Opler, a managing director in Stifel's global health-care group. ""We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies."" Bain Capital Life Sciences started making China a priority around 2018, said Adam Koppel, a partner at the fund. The private equity firm saw the Chinese government and the life sciences industry making a deliberate effort to evolve from its historical focus on copycat and fast-follower drugs that mimicked leading drugs to creating new chemical matter that China could export to the rest of the world. Since then, Bain has struck six biopharma deals in China. It bought an experimental asthma drug from Hengrui in 2023 and co-launched a company called Aiolos with a $245 million series A funding round. GSK acquired the company three months later for up to $1.4 billion. Koppel sees more large pharmaceutical companies growing comfortable with drugs coming out of China as they work with more of them and see their outcomes, he said. Buyers had held back in part because they worried data from China wasn't representative of a global population and U.S. regulators wouldn't accept it. ""As they're seeing assets then come out, they're seeing things that are having success, and eventually, as things get approved and used on the market, I think that that concern will become lessened,"" he said. That narrative was on display when Summit Therapeutics last year said its experimental cancer drug beat Merck's mega-blockbuster Keytruda in a head-to-head study, a feat no other drug has accomplished. Summit's trial was conducted exclusively in China, making people question if the results would hold up elsewhere. When Summit's leaders were shopping for a drug they could develop, they made it a point to look in China because co-CEO Bob Duggan had read more new medicines were coming from the country. But it was late 2022, and the U.S. Food and Drug Administration had just rejected a few applications for drugs that were studied only in China, including one from Eli Lilly.When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh.""And suddenly after us, a lot of people opened their eyes,"" she said.Ivonescimab had already undergone early studies and was in late-stage trials in China when Summit struck the licensing deal. Summit is now running three global phase 3 trials to satisfy the FDA's desire for drugs to be studied in diverse groups of people. Summit's strategy could become more common. Investors and other industry insiders said one of the draws about doing deals with Chinese biotech companies is they can find molecules that have already undergone early studies at a lower price than in the U.S. So the U.S. businesses know what they're getting, and they can probably get it for less.  Gilead spends a lot of time in China looking for assets like it does in the U.S. and Europe, the company's chief financial officer, Andrew Dickinson, told CNBC. Gilead has seen a ""substantial shift"" in the quality and quantity of assets being developed in China and being offered to U.S. biopharma companies.""The transformation over the last five years is real and impressive,"" Dickinson said. It helps that more Chinese companies need to do deals now. The amount of venture funds raised by the Chinese biotech industry cratered to just $1 billion last year from a peak of $6.3 billion in 2021, according to data provided by TCGX's Yu. ""Why would we do any early-stage development in the U.S. anymore?"" Yu said. ""Why wouldn't we just get clinical proof of concept in China and then bring it over to the U.S. for the expensive clinical development when we actually know the drug works? And I think that could be a very revolutionary new way for our industry to become more efficient.""That's an opportunity – or risk – for the U.S. biopharma industry, depending on who you ask. Some, like Yu, see it as a way to bring down the price of prescription drugs. Others worry it could hobble U.S. companies if Merck and other large pharmaceutical companies pass on acquiring American startups in favor of licensing assets from China.The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%. Viking is seen as an acquisition target since it's developing drugs in the red-hot obesity space, and suddenly it looked like one possible suitor had chosen to spend its money elsewhere. People see parallels to what happened in the artificial intelligence space when China's DeepSeek declared it had created a model that was just as good as U.S. models for much less than American companies are spending. President Donald Trump or U.S. policymakers could see the similar trend in biotech as a threat and intervene to stop these deals, what Yu calls the ""stroke of a pen"" risk. Lawmakers last year floated the Biosecure Act that would have restricted U.S. companies from working with Chinese contract manufacturers. Washington has already embraced protectionist policies in other competitive areas like artificial intelligence and semiconductors. It's possible that could extend to life sciences. ""The deeper message from DeepSeek is that we have competition in the high sciences in general, and moreover that China is making major investments to develop scientific assets,"" said Stifel's Opler.Put another way: the race in biopharma is on.",CNBC,13/02/2025,"['A little-known biotech company stunned the biopharmaceutical industry last spring when it declared an ""unprecedented"" achievement: its experimental cancer drug looked more effective than Merck\'s Keytruda in a clinical trial.', 'The company, Summit Therapeutics, licensed the drug from Chinese company Akeso Inc.In October, a group of life science investors announced they were putting $400 million into creating a company called Kailera Therapeutics that would develop experimental obesity drugs it bought from Chinese company Jiangsu Hengrui Pharmaceuticals.', ""Then in a matter of days in December, Merck disclosed it would license a potential competitor to Summit's drug and a separate experimental obesity pill – both from Chinese companies."", 'Suddenly, U.S. companies are racing to find medicines in China.', 'Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma.', '""That\'s stunning to me,"" said Chen Yu, founder and managing partner at crossover fund TCGX. ""', ""That's stunning."", '""Yu said 20 years ago, few biopharma companies were interested in China because they considered it a small market.', 'His former firm, Vivo Capital, pioneered the concept of bringing U.S. medicines to the Chinese market.', 'Today, the movement is going in the opposite direction.', ""He never imagined the proliferation that's taking place now."", 'Investors and industry insiders offer a few reasons for the trend: Chinese companies are creating better molecules than ever before – and more of them.', 'They can start testing those compounds in humans sooner and at a lower price than in the U.S. Buyers have figured out a business model to essentially import the drugs through licensing deals.', 'Venture funding in China has also dried up, forcing biotech companies to do deals.', 'One thing all of those people in the industry agree on?', ""This trend isn't going away."", ""What's less clear is what the development means for the U.S. biotech sector."", ""Some people contend it's terrible for American startups if large pharmaceutical companies can find a promising drug in China for a fraction of the price."", 'Others argue competition makes everyone better, and American companies will ultimately reap the rewards of bringing medicines to the market.', 'Either way, the influx could reshape the landscape of the U.S. biopharma industry.', '""It\'s kind of a watershed moment where the pharma industry is like, \'We don\'t really need to buy U.S. biotechs necessarily,\'"" said Tim Opler, a managing director in Stifel\'s global health-care group. ""', 'We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies.', '""Bain Capital Life Sciences started making China a priority around 2018, said Adam Koppel, a partner at the fund.', 'The private equity firm saw the Chinese government and the life sciences industry making a deliberate effort to evolve from its historical focus on copycat and fast-follower drugs that mimicked leading drugs to creating new chemical matter that China could export to the rest of the world.', 'Since then, Bain has struck six biopharma deals in China.', 'It bought an experimental asthma drug from Hengrui in 2023 and co-launched a company called Aiolos with a $245 million series A funding round.', 'GSK acquired the company three months later for up to $1.4 billion.', 'Koppel sees more large pharmaceutical companies growing comfortable with drugs coming out of China as they work with more of them and see their outcomes, he said.', ""Buyers had held back in part because they worried data from China wasn't representative of a global population and U.S. regulators wouldn't accept it."", '""As they\'re seeing assets then come out, they\'re seeing things that are having success, and eventually, as things get approved and used on the market, I think that that concern will become lessened,"" he said.', ""That narrative was on display when Summit Therapeutics last year said its experimental cancer drug beat Merck's mega-blockbuster Keytruda in a head-to-head study, a feat no other drug has accomplished."", ""Summit's trial was conducted exclusively in China, making people question if the results would hold up elsewhere."", ""When Summit's leaders were shopping for a drug they could develop, they made it a point to look in China because co-CEO Bob Duggan had read more new medicines were coming from the country."", 'But it was late 2022, and the U.S. Food and Drug Administration had just rejected a few applications for drugs that were studied only in China, including one from Eli Lilly.', ""When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh."", '""And suddenly after us, a lot of people opened their eyes,"" she said.', 'Ivonescimab had already undergone early studies and was in late-stage trials in China when Summit struck the licensing deal.', ""Summit is now running three global phase 3 trials to satisfy the FDA's desire for drugs to be studied in diverse groups of people."", ""Summit's strategy could become more common."", ""Investors and other industry insiders said one of the draws about doing deals with Chinese biotech companies is they can find molecules that have already undergone early studies at a lower price than in the U.S. So the U.S. businesses know what they're getting, and they can probably get it for less."", ""Gilead spends a lot of time in China looking for assets like it does in the U.S. and Europe, the company's chief financial officer, Andrew Dickinson, told CNBC."", 'Gilead has seen a ""substantial shift"" in the quality and quantity of assets being developed in China and being offered to U.S. biopharma companies.', '""The transformation over the last five years is real and impressive,"" Dickinson said.', 'It helps that more Chinese companies need to do deals now.', ""The amount of venture funds raised by the Chinese biotech industry cratered to just $1 billion last year from a peak of $6.3 billion in 2021, according to data provided by TCGX's Yu."", '""Why would we do any early-stage development in the U.S. anymore?""', 'Yu said. ""', ""Why wouldn't we just get clinical proof of concept in China and then bring it over to the U.S. for the expensive clinical development when we actually know the drug works?"", 'And I think that could be a very revolutionary new way for our industry to become more efficient.', '""That\'s an opportunity – or risk – for the U.S. biopharma industry, depending on who you ask.', 'Some, like Yu, see it as a way to bring down the price of prescription drugs.', 'Others worry it could hobble U.S. companies if Merck and other large pharmaceutical companies pass on acquiring American startups in favor of licensing assets from China.', ""The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%."", ""Viking is seen as an acquisition target since it's developing drugs in the red-hot obesity space, and suddenly it looked like one possible suitor had chosen to spend its money elsewhere."", ""People see parallels to what happened in the artificial intelligence space when China's DeepSeek declared it had created a model that was just as good as U.S. models for much less than American companies are spending."", 'President Donald Trump or U.S. policymakers could see the similar trend in biotech as a threat and intervene to stop these deals, what Yu calls the ""stroke of a pen"" risk.', 'Lawmakers last year floated the Biosecure Act that would have restricted U.S. companies from working with Chinese contract manufacturers.', 'Washington has already embraced protectionist policies in other competitive areas like artificial intelligence and semiconductors.', ""It's possible that could extend to life sciences."", '""The deeper message from DeepSeek is that we have competition in the high sciences in general, and moreover that China is making major investments to develop scientific assets,"" said Stifel\'s Opler.', 'Put another way: the race in biopharma is on.']",0.1501168131928939,"We will if it makes sense, but we can buy perfectly good biotech assets through licensing deals with Chinese companies.","When Summit announced it was licensing the cancer drug ivonescimab from Akeso, people questioned how Summit could do the deal knowing that the FDA would never accept it, said Summit's co-CEO and president, Maky Zanganeh.",0.3858429810096477,"Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies last year, up from 20% the year before and none only five years before, according to data from DealForma.","The day in December that Merck announced it was licensing an experimental obesity pill from China's Hansoh for up to $2 billion, shares of U.S. company Viking Therapeutics plunged 18%.",2025-02-14
Bank of America CEO on inflation impact on U.S. economy: ‘Rates are going to stay where they are’,https://www.cnbc.com/2025/02/12/bank-of-america-ceo-brian-moynihan-inflation-federal-reserve-rates.html,2025-02-12T18:32:54+0000,"Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.The bank's retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan told CNBC's Leslie Picker. That rate is an acceleration from the spending growth seen in the final three months of last year, he noted.""That's driving price firmness, demand firmness,"" Moynihan said. ""You're seeing activity that says that we're probably in a period where rates are going to stay … where they are for a while until this settles in.""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations. The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.Last month, the Fed opted to keep its benchmark rate unchanged at a range of 4.25%-4.5%.""Rates are restrictive, but there was not enough sort of inflation progress that we made"" to cut rates, Moynihan said.Bank of America research analysts expect no rate reductions in the immediate future because of elevated inflation, he added.",CNBC,12/02/2025,"['Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.', ""The bank's retail customers are spending about 6% more money in the first 40 days of this year compared with the same period in 2024, Moynihan told CNBC's Leslie Picker."", 'That rate is an acceleration from the spending growth seen in the final three months of last year, he noted.', '""That\'s driving price firmness, demand firmness,"" Moynihan said. ""', ""You're seeing activity that says that we're probably in a period where rates are going to stay … where they are for a while until this settles in."", '""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations.', 'The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.', 'Last month, the Fed opted to keep its benchmark rate unchanged at a range of 4.25%-4.5%.""Rates are restrictive, but there was not enough sort of inflation progress that we made"" to cut rates, Moynihan said.', 'Bank of America research analysts expect no rate reductions in the immediate future because of elevated inflation, he added.']",0.0564610354219896,Bank of America CEO Brian Moynihan said Wednesday that strong consumer spending so far this year means the Federal Reserve will probably hold off on cutting its benchmark interest rate.,"The Fed began an easing cycle in September, reducing rates for the first time since the 2020 pandemic, but the central bank is seen as limited in how much it can cut by stubborn inflation.",0.9944062743868146,"""The Bureau of Labor Statistics reported hotter-than-expected growth in the U.S. consumer price index earlier Wednesday, forcing markets to recalibrate rate expectations.",,2025-02-14
CVS shares are up 45% this year — here's why it may be starting to turn its business around,https://www.cnbc.com/2025/02/13/cvs-health-may-be-on-track-to-turn-its-struggling-business-around-.html,2025-02-13T20:06:06+0000,"In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around. Some investors seem convinced, especially after the retail drugstore chain on Wednesday posted a big beat on fourth-quarter earnings and a 2025 profit outlook that was in line with expectations. Shares of CVS are now up more than 45% for the year, unlike the company's main retail pharmacy rival Walgreens, whose stock is up nearly 3%. Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.The upbeat quarterly results may be a sign that brighter days are ahead for the CVS – or at least that things may not be as bad as they were last year. The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due to higher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure.CVS isn't out of the woods yet. Medical costs were less severe during the fourth quarter but will likely remain elevated in 2025, as more seniors flock to hospitals and doctor's offices and use more health-care benefits. But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share. CVS has pursued store closures and other cost cuts, and its new CEO David Joyner has spent much of his first 100 days at the helm focusing on the company's insurance unit Aetna. ""The pieces are in place for [CVS to return] from what has been a bottoming of operations performance,"" said Leerink Partners analyst Michael Cherny, who upgraded the stock on Wednesday after the results. Cantor Fitzgerald analysts on Wednesday also upgraded CVS' stock, citing ""increased confidence in a successful turnaround."" CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision. The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year. In a research note, Cantor Fitzgerald analysts said they are ""incrementally more confident"" that CVS will improve margins in its Medicare Advantage business and return to ""normal levels"" by 2027. CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin. They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers. But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries. To improve margins, the company plans to shrink Medicare Advantage membership by a ""high single-digit percentage"" from the end of 2024, executives said on Wednesday. Aetna had 4.4 million Medicare Advantage members as of December, up from 3.5 million the year before, according to the company's fourth-quarter release.Overall, CVS executives said they expect to decrease insurance members by more than 1 million this year, including 800,000 in the individual market. Patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.Aetna also scored better Medicare Advantage star ratings for the 2025 payment year, which should boost its federal payments in 2026. Those crucial ratings help patients compare the quality of Medicare health and drug plans and determine how much an insurer receives in bonus payments from the Centers for Medicare & Medicaid Services.On the earnings call, Joyner said the company is pushing for higher payment rates from the government for Medicare Advantage. He said the proposed rates for 2026 don't account for higher medical costs over the last year. The Biden administration in January proposed to increase Medicare Advantage reimbursement rates by 2.2% in 2026, up from the 0.2% drop in rates for this year. But Cantor analysts also said they expect the Medicare Advantage reimbursement rate could rise, projecting a finalized increase of 2% to 2.8%.""We're assuming an improving rate environment … maintaining STARS ratings, and [medical] costs trends that do not exceed 2024 levels,"" the analysts wrote. It is difficult to predict what medical costs trends across the insurance industry will look like in 2025. But higher medical costs are baked into CVS's full-year guidance this time around. The outlook assumes that the trends the company saw in 2024 will carry over into this year despite more favorable medical costs for the company in the fourth quarter, said Tanquilut. ""The early reads for '25 or at least late '24 is that it's starting to get better. But they did not assume that improvement in the 2025 guidance,"" Tanquilut told CNBC. ""So it sounds like there's upside to their numbers for 2025. The company last year also said it would make significant changes to its Medicare Advantage plans for 2025, such as increasing copays and premiums and cutting back certain health benefits. That will eliminate the expenses tied to those benefits and drive away patients who need or want to use them.Other insurers such as Humana, the second largest Medicare Advantage insurer, are similarly culling their plan offerings for 2025 to reduce lower-profit membership. Humana is dropping a staggering 550,000 Medicare Advantage customers in less profitable markets. But the company has said that people who lose access to their existing plans will likely have another Humana Medicare Advantage plan option.Shares of CVS are outperforming most of its health-care rivals, both on the insurance and retail pharmacy sides. Jefferies analyst Brian Tanquilut said that is likely due to CVS' unique position as a company that owns a health insurer, a retail drugstore chain and a pharmacy benefit manager, or PBM, called Caremark.""I think what they're starting to show is the real synergy...in owning all three assets,"" Tanquilut said. PBMs such as Caremark sit at the center of the drug supply chain in the U.S., negotiating drug rebates with manufacturers on behalf of insurers, creating lists of preferred medications covered by health plans and reimbursing pharmacies for prescriptions. That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses.For example, Caremark in some cases directs drug prescriptions to CVS retail pharmacies. That has helped the company's drugstores gain meaningful prescription market share over its chief rival, Walgreens, which has been struggling to operate as a largely standalone pharmacy business, Tanquilut said. Other insurers, such as Cigna and UnitedHealth Group, also own PBMs. But the fact that CVS has a retail pharmacy ""just pulls it all together and differentiates it from the others,"" Tanquilut added. That doesn't necessarily mean that other insurers are underperforming. Tanquilut said UnitedHealthcare, the insurance arm of UnitedHealth Group, is still ""best in class"" in the industry. Other insurance companies have their own hurdles apart from higher medical costs, such as Humana seeing a drop in its Medicare Advantage star ratings for the year. But CVS' story has been much more complicated than other insurers given its business model, and the company could now be reaching a point where ""all three of its business segments are clicking,"" said Tanquilut.",CNBC,13/02/2025,"['In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around.', 'Some investors seem convinced, especially after the retail drugstore chain on Wednesday posted a big beat on fourth-quarter earnings and a 2025 profit outlook that was in line with expectations.', ""Shares of CVS are now up more than 45% for the year, unlike the company's main retail pharmacy rival Walgreens, whose stock is up nearly 3%."", 'Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.', 'The upbeat quarterly results may be a sign that brighter days are ahead for the CVS – or at least that things may not be as bad as they were last year.', ""The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due tohigher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure."", ""CVS isn't out of the woods yet."", ""Medical costswere less severe during the fourth quarter but will likely remain elevated in 2025, as more seniors flock to hospitals and doctor's offices and use more health-care benefits."", ""But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share."", ""CVS has pursued store closures and other cost cuts, and its new CEO David Joyner has spent much of his first 100 days at the helm focusing on the company's insurance unit Aetna."", '""The pieces are in place for [CVS to return] from what has been a bottoming of operations performance,"" said Leerink Partners analyst Michael Cherny, who upgraded the stock on Wednesday after the results.', 'Cantor Fitzgerald analysts on Wednesday also upgraded CVS\' stock, citing ""increased confidence in a successful turnaround.', '""CVS has already taken steps to rightsize its insurance business, which includes plans for the Affordable Care Act, Medicare Advantage and Medicaid, as well as dental and vision.', 'The company exited certain unprofitable health plans in 2024, and hiked premiums to enroll fewer members this year.', 'In a research note, Cantor Fitzgerald analysts said they are ""incrementally more confident"" that CVS will improve margins in its Medicare Advantage business and return to ""normal levels"" by 2027.CVS has said it wants to get the Medicare Advantage business back to a 3% to 5% margin.', 'They were in the negative 4.5% to 5% range at the end of 2024, CVS CFO Tom Cowhey said during an earnings call on Wednesday.', 'CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.', 'Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.', 'But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries.', 'To improve margins, the company plans to shrink Medicare Advantage membership by a ""high single-digit percentage"" from the end of 2024, executives said on Wednesday.', ""Aetna had 4.4 million Medicare Advantage members as of December, up from 3.5 million the year before, according to the company's fourth-quarter release."", 'Overall, CVS executives said they expect to decrease insurance members by more than 1 million this year, including 800,000 in the individual market.', 'Patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.', 'Aetna also scored better Medicare Advantage star ratings for the 2025 payment year, which should boost its federal payments in 2026.', 'Those crucial ratings help patients compare the quality of Medicare health and drug plans and determine how much an insurer receives in bonus payments from the Centers for Medicare & Medicaid Services.', 'On the earnings call, Joyner said the company is pushing for higher payment rates from the government for Medicare Advantage.', ""He said the proposed rates for 2026 don't account for higher medical costs over the last year."", 'The Biden administration in January proposed to increase Medicare Advantage reimbursement rates by 2.2% in 2026, up from the 0.2% drop in rates for this year.', 'But Cantor analysts also said they expect the Medicare Advantage reimbursement rate could rise, projecting a finalized increase of 2% to 2.8%.""We\'re assuming an improving rate environment … maintaining STARS ratings, and [medical] costs trends that do not exceed 2024 levels,"" the analysts wrote.', 'It is difficult to predict what medical costs trends across the insurance industry will look like in 2025.', ""But higher medical costs are baked into CVS's full-year guidance this time around."", 'The outlook assumes that the trends the company saw in 2024 will carry over into this year despite more favorable medical costs for the company in the fourth quarter, said Tanquilut.', '""The early reads for \'25 or at least late \'24 is that it\'s starting to get better.', 'But they did not assume that improvement in the 2025 guidance,"" Tanquilut told CNBC. ""', ""So it sounds like there's upside to their numbers for 2025.The company last year also said it would make significant changes to its Medicare Advantage plans for 2025, such as increasing copays and premiums and cutting back certain health benefits."", 'That will eliminate the expenses tied to those benefits and drive away patients who need or want to use them.', 'Other insurers such as Humana, the second largest Medicare Advantage insurer, are similarly culling their plan offerings for 2025 to reduce lower-profit membership.', 'Humana is dropping a staggering 550,000 Medicare Advantage customers in less profitable markets.', 'But the company has said that people who lose access to their existing plans will likely have another Humana Medicare Advantage plan option.', 'Shares of CVS are outperforming most of its health-care rivals, both on the insurance and retail pharmacy sides.', ""Jefferies analyst Brian Tanquilut said that is likely due to CVS' unique position as a company that owns a health insurer, a retail drugstore chain and a pharmacy benefit manager, or PBM, called Caremark."", '""I think what they\'re starting to show is the real synergy...in owning all three assets,"" Tanquilut said.', 'PBMs such as Caremark sit at the center of the drug supply chain in the U.S., negotiating drug rebates with manufacturers on behalf of insurers, creating lists of preferred medications covered by health plans and reimbursing pharmacies for prescriptions.', ""That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses."", 'For example, Caremark in some cases directs drug prescriptions to CVS retail pharmacies.', ""That has helped the company's drugstores gain meaningful prescription market share over its chief rival, Walgreens,which has been struggling to operate as a largely standalone pharmacy business, Tanquilut said."", 'Other insurers, such as Cigna and UnitedHealth Group, also own PBMs.', 'But the fact that CVS has a retail pharmacy ""just pulls it all together and differentiates it from the others,"" Tanquilut added.', ""That doesn't necessarily mean that other insurers are underperforming."", 'Tanquilut said UnitedHealthcare, the insurance arm of UnitedHealth Group, is still ""best in class"" in the industry.', 'Other insurance companies have their own hurdles apart from higher medical costs, such as Humana seeing a drop in its Medicare Advantage star ratings for the year.', 'But CVS\' story has been much more complicated than other insurers given its business model, and the company could now be reaching a point where ""all three of its business segments are clicking,"" said Tanquilut.']",0.3022095051445605,But some analysts are more optimistic about the company's ability to navigate those challenges moving forward and reach its full-year 2025 adjusted earnings outlook of $5.75 to $6 per share.,"In this articleAfter a dismal 2024, CVS Health could be starting to turn itself around.",0.460289873727938,"Shares of other insurers UnitedHealth Group and Cigna are up about 4% and nearly 8%, respectively.","The company's stock plummeted more than 40% in 2024 after it missed earnings estimates for three straight quarters and withdrew its annual forecast, largely due tohigher-than-expected medical costs in its insurance unit, along with other issues like pharmacy reimbursement pressure.",2025-02-14
Coca-Cola sales easily top estimates as global demand rises,https://www.cnbc.com/2025/02/11/coca-cola-ko-q4-2024-earnings.html,2025-02-11T21:36:12+0000,"In this articleCoca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations, as global demand for its drinks rose.Shares of the company climbed nearly 5% for the day.Here's what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier.Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.Net sales rose 6% to $11.54 billion.Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices. Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation. The rest came from price hikes and ""favorable mix,"" meaning that customers bought products that were more expensive.While most of Coke's organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo.Coke's unit case volume grew 2%, reversing last quarter's decline. The metric strips out the impact of pricing and foreign currency to reflect demand. The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter. Trademark Coca-Cola and Fairlife remain leaders in at home retail sales growth,"" Coke CEO James Quincey said on the company's conference call.The company's sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter. Coke Zero Sugar's volume climbed 13% during the period.Coke's water, sports, coffee and tea division reported 2% volume growth. Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.Coke's juice, value-added dairy and plant-based beverages division saw volume shrink 1%. The company said declines in Europe, the Middle East and Africa offset growth in North America.Looking to 2025, Coke projects organic revenue will grow 5% to 6%. The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.""It seems more likely in '25, there'll be a little more price and a little less volume, but there will be volume growth,"" Quincey told analysts.Coke could also face some rising costs in 2025. For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said. ""For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.""",CNBC,11/02/2025,"[""In this articleCoca-Cola on Tuesday reported quarterly earnings and revenue that topped analysts' expectations, as global demand for its drinks rose."", 'Shares of the company climbed nearly 5% for the day.', ""Here's what Coca-Cola reported for the quarter ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The beverage giant reported fourth-quarter net income attributable to shareholders of $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents per share, a year earlier."", 'Excluding restructuring charges, refranchising gains and other items, Coke earned 55 cents per share.', 'Net sales rose 6% to $11.54 billion.', 'Organic revenue, which strips out acquisitions, divestitures and foreign currency, climbed 14% in the quarter, largely fueled by higher prices.', ""Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation."", 'The rest came from price hikes and ""favorable mix,"" meaning that customers bought products that were more expensive.', ""While most of Coke's organic revenue growth came from pricing, the company did see higher demand, unlike many consumer companies including rival PepsiCo."", ""Coke's unit case volume grew 2%, reversing last quarter's decline."", 'The metric strips out the impact of pricing and foreign currency to reflect demand.', 'The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter.', 'Trademark Coca-Cola and Fairlife remain leaders in at home retail sales growth,"" Coke CEO James Quincey said on the company\'s conference call.', ""The company's sparkling soft drinks segment, which includes its namesake soda, saw volume rise 2% in the quarter."", ""Coke Zero Sugar's volume climbed 13% during the period."", ""Coke's water, sports, coffee and tea division reported 2% volume growth."", 'Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.', ""Coke's juice, value-added dairy and plant-based beverages division saw volume shrink 1%."", 'The company said declines in Europe, the Middle East and Africa offset growth in North America.', 'Looking to 2025, Coke projects organic revenue will grow 5% to 6%.', 'The company also expects comparable earnings per share will rise 2% to 3%, which includes a 6% to 7% headwind from currency exchange and a slight headwind from acquisitions, divestitures and structural changes.', '""It seems more likely in \'25, there\'ll be a little more price and a little less volume, but there will be volume growth,"" Quincey told analysts.', 'Coke could also face some rising costs in 2025.', 'For example, President Donald Trump raised tariffs on all aluminum imports to 25%, which are expected to go into effect next month.', '""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said. ""', 'For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, et cetera.""']",0.2105670486122989,"The company attributed its increasing volume to growing demand in China, Brazil and the U.S.""In North America, we grew both transactions and volume and had robust top line and profit growth during the quarter.",,0.5848126022712045,"Coke's pricing rose 9% in the quarter, 4% of which came from markets dealing with hyperinflation.","Both water, which includes its Smartwater brand, and tea reported increasing demand, but sports drinks and coffee volume both declined in the quarter.",2025-02-14
ESPN host Stephen A. Smith says he would be U.S. president as long as he doesn't have to campaign,https://www.cnbc.com/2025/02/12/espn-host-stephen-a-smith-wouldnt-mind-being-us-president.html,2025-02-13T20:53:35+0000,"Outspoken ESPN personality Stephen A. Smith is not ruling out a presidential run in his future.In an interview with CNBC Sport, Smith said, ""I wouldn't mind being in office.""Yet, the popular television host said it is the campaigning and being a politician that turns him off.""I'm not one of those dudes that's great at shaking hands and kissing babies, per se, and currying favor with politicians and donors. I'm not a beggar. That's not who I am,"" Smith told CNBC Sport.The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.Subscribe here to get access today.However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.""If you tell me that I could catapult to the White House, and I could be in a position to affect millions upon millions of lives, not just in America, but the world over, yeah, that's something that I would entertain,"" he said.The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.In a recent poll by McLaughlin & Associates, 2% of voters said they would vote for Smith in the 2028 presidential election.Watch CNBC Sport's full interview with Smith.",CNBC,13/02/2025,"['Outspoken ESPN personality Stephen A. Smith is not ruling out a presidential run in his future.', 'In an interview with CNBC Sport, Smith said, ""I wouldn\'t mind being in office.', '""Yet, the popular television host said it is the campaigning and being a politician that turns him off.', '""I\'m not one of those dudes that\'s great at shaking hands and kissing babies, per se, and currying favor with politicians and donors.', ""I'm not a beggar."", 'That\'s not who I am,"" Smith told CNBC Sport.', 'The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.', 'Subscribe here to get access today.', 'However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.', '""If you tell me that I could catapult to the White House, and I could be in a position to affect millions upon millions of lives, not just in America, but the world over, yeah, that\'s something that I would entertain,"" he said.', 'The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.', 'In a recent poll by McLaughlin & Associates, 2% of voters said they would vote for Smith in the 2028 presidential election.', ""Watch CNBC Sport's full interview with Smith.""]",0.161248135874975,"""I'm not one of those dudes that's great at shaking hands and kissing babies, per se, and currying favor with politicians and donors.","The ""First Take"" and The Stephen A. Smith Show host has said that he voted for Democratic nominee Kamala Harris in the 2024 election, telling Bill Maher he feels like a ""damn fool"" now for doing so.",0.9959339499473572,"However, the 57-year-old Bronx native said he believes if he could bypass the campaigning, he would excel on television in a presidential debate.",,2025-02-14
"GM expects to mitigate up to 50% of potential North American tariffs, which Ford describes as 'chaos'",https://www.cnbc.com/2025/02/11/ford-ceo-says-trumps-tariffs-are-causing-chaos-in-auto-industry.html,2025-02-12T12:19:23+0000,"In this articleDETROIT — General Motors believes it can mitigate up to 50% of potential tariffs President Donald Trump is threatening to impose on imports from Canada and Mexico, CEO Mary Barra said Tuesday.The chief executive said the Detroit automaker has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the U.S. from the two neighboring countries. That includes potentially avoiding short-term impacts of between 30% and 50% of the additional costs ""without deploying any capital.""""We are prepared,"" Barra said Tuesday during a Wolfe Research investment conference. ""When we know exactly what's going to happen and/or even have an indication of what's going to happen, we know the steps we could take.""GM CFO Paul Jacobson, who appeared with Barra, added that if tariffs were prolonged, the company could take additional measures such as shifting production or parts or vehicles.The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico. That includes many of its lower-priced electric vehicles as well as its highly profitable full-size pickup trucks.Barra's comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump's tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.Farley described this week's 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding ""a lot of cost, and a lot of chaos"" to the industry.""President Trump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""So far what we're seeing is a lot of cost, and a lot of chaos.""Farley and incoming Ford CFO Sherry House said a majority of the company's steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.Barra noted GM is ""evaluating"" the impact of the steel and aluminum tariffs on its business, but said the company sources a ""significant"" amount of both from the U.S. In the short term, she said GM also has fixed pricing on such purchases.Both GM and Ford contributed $1 million each, along with vehicles, to Trump's inauguration. Executives with both also have confirmed they've talked with Trump about the auto industry.House on Tuesday said the biggest concern for Ford is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker's business.""We'll have to deal with it. That's what I'm talking about cost of chaos. A little here, a little there. … This is what we're dealing with right now,"" Farley said.Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying a long-term 25% tariff that could go into effect as soon as March 1 would be ""devastating"" and ""blow a hole in the U.S. industry that we've never seen.""Ford has previously said it believes short-term tariffs are manageable. House on Tuesday said the automaker is ""not making a lot of large decisions at this point, as it awaits the potential impacts.The White House did not immediately respond for comment about Farley's remarks.Farley said he is traveling Wednesday to Washington, D.C., for the second time in three weeks to meet with government officials, including members of Congress, to stress how the policy uncertainty is impacting the industry.Last week Farley also said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries.Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively, that have little to no duties compared with the 25% tariff Trump plans to impose on Canada and Mexico.Ford regularly touts its American business, including in ad campaigns. The company is the No. 1 auto producer in the U.S., with the most vehicles domestically assembled as well as exported to other countries.Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada. An earlier version misstated one of the countries.",CNBC,12/02/2025,"['In this articleDETROIT — General Motors believes it can mitigate up to 50% of potential tariffs President Donald Trump is threatening to impose on imports from Canada and Mexico, CEO Mary Barra said Tuesday.', 'The chief executive said the Detroit automaker has contingency plans ready for if tariffs are levied on auto parts and vehicles coming into the U.S. from the two neighboring countries.', 'That includes potentially avoiding short-term impacts of between 30% and 50% of the additional costs ""without deploying any capital.', '""""We are prepared,"" Barra said Tuesday during a Wolfe Research investment conference. ""', ""When we know exactly what's going to happen and/or even have an indication of what's going to happen, we know the steps we could take."", '""GM CFO Paul Jacobson, who appeared with Barra, added that if tariffs were prolonged, the company could take additional measures such as shifting production or parts or vehicles.', ""The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico."", 'That includes many of its lower-priced electric vehicles as well as its highly profitable full-size pickup trucks.', 'Barra\'s comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump\'s tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.', 'Farley described this week\'s 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding ""a lot of cost, and a lot of chaos"" to the industry.', '""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""', ""So far what we're seeing is a lot of cost, and a lot of chaos."", '""Farley and incoming Ford CFO Sherry House said a majority of the company\'s steel and aluminum are domestically sourced; however, there are suppliers to the automaker that source such materials from outside of the country, which could have an impact on costs.', 'Barra noted GM is ""evaluating"" the impact of the steel and aluminum tariffs on its business, but said the company sources a ""significant"" amount of both from the U.S. In the short term, she said GM also has fixed pricing on such purchases.', ""Both GM and Ford contributed $1 million each, along with vehicles, to Trump's inauguration."", ""Executives with both also have confirmed they've talked with Trump about the auto industry."", ""House on Tuesday said the biggest concern for Ford is all of these actions that appear relatively minimal, including on suppliers, combining to negatively impact the automaker's business."", '""We\'ll have to deal with it.', ""That's what I'm talking about cost of chaos."", 'A little here, a little there. …', 'This is what we\'re dealing with right now,"" Farley said.', 'Farley seemed most concerned about potential duties on goods from Mexico and Canada, saying a long-term 25% tariff that could go into effect as soon as March 1 would be ""devastating"" and ""blow a hole in the U.S. industry that we\'ve never seen.', '""Ford has previously said it believes short-term tariffs aremanageable.', 'House on Tuesday said the automaker is ""not making a lot of large decisions at this point, as it awaits the potential impacts.', ""The White House did not immediately respond for comment about Farley's remarks."", 'Farley said he is traveling Wednesday to Washington, D.C., for the second time in three weeks to meet with government officials, including members of Congress, to stress how the policy uncertainty is impacting the industry.', 'Last week Farley also said if the Trump administration is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries.', 'Farley singled out Toyota Motor and Hyundai Motor for importing hundreds of thousands of vehicles annually from Japan andSouth Korea, respectively, that have little to no duties compared with the 25% tariff Trumpplans to impose on Canada and Mexico.', 'Ford regularly touts its American business, including in ad campaigns.', 'The company is the No.', '1 auto producer in the U.S., with the most vehicles domestically assembled as well as exported to other countries.', 'Correction: Farley seemed most concerned about potential duties on goods from Mexico and Canada.', 'An earlier version misstated one of the countries.']",-0.0759660477189732,"""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""","Barra's comments followed crosstown rival Ford Motor CEO Jim Farley saying Trump's tariffs, whether implemented or threatened, are causing ""chaos"" for the U.S. automotive industry.",-0.3969160795211792,"""PresidentTrump has talked a lot about making our U.S. auto industry stronger, bringing more production here, more innovation in the U.S., and if his administration can achieve that, it would be one of … the most signature accomplishments,"" Farley said separately during the Wolfe conference. ""","The comments are the most detailed yet of how GM believes it could reduce the impact of tariffs after investor concerns about the issue weren't addressed during the automaker's quarterly earnings call two weeks ago, sending the company's stock down by 8%.GM has some operations in Canada, with more substantial production in Mexico.",2025-02-14
Globalstar CEO Paul Jacobs explains why satellite company moved from NYSE to Nasdaq,https://www.cnbc.com/2025/02/11/globalstar-ceo-paul-jacobs-listing-nyse-nasdaq.html,2025-02-11T18:31:18+0000,"In this articleSatellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.""We did a reverse split — we're a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC's Becky Quick on ""Squawk Box."" ""And people thought of us as a penny stock, and some investors couldn't invest in us, so we're here sort of in conjunction with that,"" Jacobs added.Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning. The stock rose more than 10% in midday trading.""Most of the companies that I've been involved with are tech innovators, and they're on the Nasdaq,"" Jacobs said.Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services. In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar's next-generation low Earth orbit constellation.The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk's Starlink has also pursued in conjunction with T-Mobile.""We've already been working on the satellites,"" Jacobs said. ""We've been in it for a while already.""The pricing of the venture for customers remains an ""unproven business model,"" Jacobs added, as the companies continue to optimize customers' needs.Jacobs, who is also the vice chairman of the National Basketball Association's Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise.""The product is extremely good,"" Jacobs said. ""And we've opened it up to more investors as well — funds can invest now.""Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.""I think the NBA is in a good position,"" he said. ""You never know how it's going to go. I'm obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.",CNBC,11/02/2025,"['In this articleSatellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.', '""We did a reverse split — we\'re a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC\'s Becky Quick on ""Squawk Box."" ""', 'And people thought of us as a penny stock, and some investors couldn\'t invest in us, so we\'re here sort of in conjunction with that,"" Jacobs added.', 'Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning.', 'The stock rose more than 10% in midday trading.', '""Most of the companies that I\'ve been involved with are tech innovators, and they\'re on the Nasdaq,"" Jacobs said.', 'Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services.', 'In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.', ""The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar's next-generation low Earth orbit constellation."", ""The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk's Starlink has also pursued in conjunction with T-Mobile."", '""We\'ve already been working on the satellites,"" Jacobs said. ""', ""We've been in it for a while already."", '""The pricing of the venture for customers remains an ""unproven business model,"" Jacobs added, as the companies continue to optimize customers\' needs.', ""Jacobs, who is also the vice chairman of the National Basketball Association's Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise."", '""The product is extremely good,"" Jacobs said. ""', ""And we've opened it up to more investors as well — funds can invest now."", '""Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.', '""I think the NBA is in a good position,"" he said. ""', ""You never know how it's going to go."", 'I\'m obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.']",0.1002497276686861,"I'm obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,"" Jacobs added.","In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.",0.7967718303203583,The stock rose more than 10% in midday trading.,"""We did a reverse split — we're a multibillion-dollar company but our stock price was down in the dollar-ish range,"" CEO Paul Jacobs told CNBC's Becky Quick on ""Squawk Box."" """,2025-02-14
How a CEO's exit and a Jeep 'comeback' led to Stellantis being the only automaker to advertise during Super Bowl 59,https://www.cnbc.com/2025/02/10/super-bowl-59-ad-stellantis-automaker.html,2025-02-10T21:22:47+0000,"DETROIT — A CEO's exit, electric vehicles making the industry run around like ""headless chickens"" and a company's U.S. revival all came together to make Ram and Jeep parent Stellantis the only automaker with a Super Bowl 59 commercial.That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl.Francois said Stellantis Chairman John Elkann, a scion of Italy's Fiat carmaker, called him after CEO Carlos Tavares' abrupt departure in December and told him to advertise during the big game as a recommitment to the automaker's business in the U.S.""We were not set to make a commercial. John Elkann called me in December, saying, you know, 'I want something. I want to make a comeback. We want to show, to express, that comeback story. We want to show America how much it is important to the Stellantis group,'"" Francois told CNBC.Stellantis, formerly known as Fiat Chrysler, has become well known under Francois for symbolic, nontraditional ads that feature iconic celebrities that tell a story beyond just attempting to sell new cars and trucks.It started when the automaker was attempting to make a comeback from its 2009 bankruptcy. It aired a surprise two-minute Super Bowl ad in 2011 featuring rapper Eminem and the city of Detroit — tying the company's revival to the Motor City's grit and rebirth. The ad also featured a now discontinued Chrysler sedan called the 200.Francois said Elkann, who's leading the search for a new CEO, told him to recapture that kind of ""comeback"" spirit for the automaker, following years of cost cutting and lackluster sales in the U.S.Elkann, Francois said, also told him to think of the late Fiat Chrysler CEO Sergio Marchionne when creating the automaker's ads this year. Marchionne, who died in 2018, was a supporter of Francois and past Super Bowl ads.""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose. He used to say, 'Mediocrity is not worth the trip,'"" Francois said. ""So this year's Super Bowl creative execution and investment are very much the essence of the spirit.""Since Eminem, the company's Super Bowl ads have featured actors such as Clint Eastwood, Bill Murray and singer Bob Dylan, among others. Those spots haven't necessarily prominently featured any specific vehicle, but they've discussed culturally relevant topics such as political divides and patriotism.Stellantis' Ram Trucks ad this year was a more traditional, comedic Super Bowl commercial. It starred ""Twisters"" and ""Top Gun: Maverick"" actor Glen Powell reimagining ""Goldilocks and the Three Bears"" with trucks.But the automaker's two-minute Jeep ad starring featuring ""Star Wars"" and ""Indiana Jones"" actor Harrison Ford was a true return to form for Francois.Francois said Ford turned down an initial pitch for a different ad. That's when Francois said he and friend Edward Razek, a former marketing executive for Victoria's Secret owner L Brands who resigned amid controversy in 2019, wrote the first version of the ad that aired.CMOs don't typically write scripts. It's more common for those executives to approve a script from an agency, with guidance. Francois said agencies did assist ahead of the final ad, but the script and ideas started inside the automaker.In the ad, Ford discusses freedom, heroes and people writing their own stories in life because there is no ""Owner's Manual,"" which is the title of the commercial.As Ford opined, several Jeep models can be seen driving and off-roading, including one that passes a Ford Bronco SUV — a newer competitor to the Jeep Wrangler SUV — while the actor talks about inspiring others.""I said 'yes' to doing this commercial because of the script. It's a very straightforward communication about life and ends with getting in a Jeep vehicle, that's the hook. It didn't require me to reintroduce myself, point to the fact that in my life I've been many things and known for specific projects or roles,"" Ford said in a statement. ""It's just a quiet talk from somebody sharing an idea. I love the way it developed.""The Wrangler passing the Bronco is one of two references to the Jeep rival. The other comes from the actor at the end of the ad: ""Choose what makes you happy. My friends, my family, my work make me happy. This Jeep makes me happy — even though my name is Ford. That's my owner's manual. Get out there, write your own.""The Jeep ad was shot over two days with Ford in Santa Clarita, California, in early December, according to Stellantis. Automotive has historically been one of the top segments for Super Bowl advertising. Even during the Great Recession in 2008 and 2009 when the industry was hit hard, several companies such as Toyota Motor, Hyundai Motor and Audi aired ads.Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale.""In the last years, there was plenty of automakers, all of them [touting] EVs, EVs that didn't even exist,"" Francois said. ""These guys are obviously running like headless chickens: EVs, EVs, EVs. I mean, that's where we all were.""Automakers regularly advertised during the NFL regular season and playoffs, including with sponsorships such as Toyota being the ""Official Automotive Partner of the NFL."" But none, other than Stellantis, advertised during Sunday's game.Both of Stellantis' Super Bowl ads this year featured electric vehicles, but they also included traditional vehicles with internal combustion engines as well as plug-in hybrid models such as the Jeep Wrangler.Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.""The moment had changed, and I was lucky enough to have the possibility to rewrite the scripts. To rewrite history, to say, to not run like a headless chicken,"" Francois said. ""I was able to improvise in the moment.""Stellantis declined to disclose how much money it spent on the production or broadcast of the ads, which were selling for up to $8 million for 30 seconds of air time during Super Bowl 59.But Francois said Elkann has told advertising and marketing leaders at Stellantis that ""Marketing is no longer a cost. It is an investment.""Correction: Jeep's Super Bowl ad was filmed in Santa Clarita, California. An earlier version of this article incorrectly identified the city.",CNBC,10/02/2025,"['DETROIT — A CEO\'s exit, electric vehicles making the industry run around like ""headless chickens"" and a company\'s U.S. revival all came together to make Ram and Jeep parent Stellantis the only automaker with a Super Bowl 59 commercial.', ""That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl."", 'Francois said Stellantis Chairman John Elkann, a scion of Italy\'s Fiat carmaker, called him after CEO Carlos Tavares\' abrupt departure in December and told him to advertise during the big game as a recommitment to the automaker\'s business in the U.S.""We were not set to make a commercial.', ""John Elkann called me in December, saying, you know, 'I want something."", 'I want to make a comeback.', 'We want to show, to express, that comeback story.', 'We want to show America how much it is important to the Stellantis group,\'"" Francois told CNBC.Stellantis, formerly known as Fiat Chrysler, has become well known under Francois for symbolic, nontraditional ads that feature iconic celebrities that tell a story beyond just attempting to sell new cars and trucks.', 'It started when the automaker was attempting to make a comeback from its 2009 bankruptcy.', ""It aired a surprise two-minute Super Bowl ad in 2011 featuring rapper Eminem and the city of Detroit — tying the company's revival to the Motor City's grit and rebirth."", 'The ad also featured a now discontinued Chrysler sedan called the 200.Francois said Elkann, who\'s leading the search for a new CEO, told him to recapture that kind of ""comeback"" spirit for the automaker, following years of cost cutting and lackluster sales in the U.S.Elkann, Francois said, also told him to think of the late Fiat Chrysler CEO Sergio Marchionne when creating the automaker\'s ads this year.', 'Marchionne, who died in 2018, was a supporter of Francois and past Super Bowl ads.', '""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose.', 'He used to say, \'Mediocrity is not worth the trip,\'"" Francois said. ""', ""So this year's Super Bowl creative execution and investment are very much the essence of the spirit."", '""Since Eminem, the company\'s Super Bowl ads have featured actors such as Clint Eastwood, Bill Murray and singer Bob Dylan, among others.', ""Those spots haven't necessarily prominently featured any specific vehicle, but they've discussed culturally relevant topics such as political divides and patriotism."", ""Stellantis' Ram Trucks ad this year was a more traditional, comedic Super Bowl commercial."", 'It starred ""Twisters"" and ""Top Gun: Maverick"" actor Glen Powell reimagining ""Goldilocks and the Three Bears"" with trucks.', 'But the automaker\'s two-minute Jeep ad starring featuring ""Star Wars"" and ""Indiana Jones"" actor Harrison Ford was a true return to form for Francois.', 'Francois said Ford turned down an initial pitch for a different ad.', ""That's when Francois said he and friend Edward Razek, a former marketing executive for Victoria's Secret owner L Brands who resigned amid controversy in 2019, wrote the first version of the ad that aired."", ""CMOs don't typically write scripts."", ""It's more common for those executives to approve a script from an agency, with guidance."", 'Francois said agencies did assist ahead of the final ad, but the script and ideas started inside the automaker.', 'In the ad, Ford discusses freedom, heroes and people writing their own stories in life because there is no ""Owner\'s Manual,"" which is the title of the commercial.', 'As Ford opined, several Jeep models can be seen driving and off-roading, including one that passes a Ford Bronco SUV — a newer competitor to the Jeep Wrangler SUV — while the actor talks about inspiring others.', '""I said \'yes\' to doing this commercial because of the script.', ""It's a very straightforward communication about life and ends with getting in a Jeep vehicle, that's the hook."", 'It didn\'t require me to reintroduce myself, point to the fact that in my life I\'ve been many things and known for specific projects or roles,"" Ford said in a statement. ""', ""It's just a quiet talk from somebody sharing an idea."", 'I love the way it developed.', '""The Wrangler passing the Bronco is one of two references to the Jeep rival.', 'The other comes from the actor at the end of the ad: ""Choose what makes you happy.', 'My friends, my family, my work make me happy.', 'This Jeep makes me happy — even though my name is Ford.', ""That's my owner's manual."", 'Get out there, write your own.', '""The Jeep ad was shot over two days with Ford in Santa Clarita, California, in early December, according to Stellantis.', 'Automotive has historically been one of the top segments for Super Bowl advertising.', 'Even during the Great Recession in 2008 and 2009 when the industry was hit hard, several companies such as Toyota Motor, Hyundai Motor and Audi aired ads.', ""Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale."", '""In the last years, there was plenty of automakers, all of them [touting] EVs, EVs that didn\'t even exist,"" Francois said. ""', 'These guys are obviously running like headless chickens: EVs, EVs, EVs.', ""I mean, that's where we all were."", '""Automakers regularly advertised during the NFL regular season and playoffs, including with sponsorships such as Toyota being the ""Official Automotive Partner of the NFL.""', ""But none, other than Stellantis, advertised during Sunday's game."", ""Both of Stellantis' Super Bowl ads this year featured electric vehicles, but they also included traditional vehicles with internal combustion engines as well as plug-in hybrid models such as the Jeep Wrangler."", 'Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.', '""The moment had changed, and I was lucky enough to have the possibility to rewrite the scripts.', 'To rewrite history, to say, to not run like a headless chicken,"" Francois said. ""', 'I was able to improvise in the moment.', '""Stellantis declined to disclose how much money it spent on the production or broadcast of the ads, which were selling for up to $8 million for 30 seconds of air time during Super Bowl 59.But Francois said Elkann has told advertising and marketing leaders at Stellantis that ""Marketing is no longer a cost.', 'It is an investment.', '""Correction: Jeep\'s Super Bowl ad was filmed in Santa Clarita, California.', 'An earlier version of this article incorrectly identified the city.']",0.2528008222416097,"""There is a kind of philosophy attached to Sergio, which is that he believed in playing like you have nothing left to lose.","That's according to Stellantis Chief Marketing Officer Olivier Francois, who said while other automakers abandoned this year's big game amid industry uncertainty and cost cutting, it was critical for the embattled trans-Atlantic carmaker to return to the Super Bowl.",0.4386920588357108,"Francois said it may have been a blessing that Elkann called him in early December instead of months earlier because it allowed him to be more relevant in the messaging, rather than just touting EVs.","Francois believes other automakers likely didn't participate in the Super Bowl this year because of a lack of payoff in prior years, when many automakers, including Stellantis, touted all-electric vehicles that weren't on sale.",2025-02-14
"CVS shares pop 15% on big earnings beat, even as high medical costs drag down insurance unit",https://www.cnbc.com/2025/02/12/cvs-health-cvs-earnings-q4-2024.html,2025-02-12T20:55:44+0000,"In this articleCVS Health on Wednesday reported fourth-quarter revenue and profit that topped estimates, even as its troubled insurance business continued to see higher medical costs. The company also issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share, which was in line with Wall Street's expectations. But CVS did not provide a revenue forecast for the year. It caps off the first full quarter with David Joyner, a longtime CVS executive, as CEO of the troubled retail drugstore chain. Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.The company underwent a management reshuffle as part of a broader turnaround plan that includes $2 billion in cost cuts over the next several years. CVS has grappled with rising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs. Here's what CVS reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: The company's shares closed 15% higher on Wednesday. CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers. But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries. CVS booked sales of $97.71 billion for the fourth quarter, up 4.2% from the same period a year ago due to growth in its pharmacy business and insurance unit. The company posted net income of $1.64 billion, or $1.30 per share, for the fourth quarter. That compares with net income of $2.05 billion, or $1.58 per share, for the year-earlier period. Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.19 per share for the quarter.CVS said its fourth-quarter earnings reflect higher medical costs in its insurance business and lower Medicare Advantage star ratings for the 2024 payment year, both of which weighed on the segment's operating results for the quarter. Those star ratings help Medicare patients compare the quality of Medicare health and drug plans. But CVS expects to improve margins in its Medicare Advantage business in 2025, partly by shrinking its membership in those plans by a ""high single-digit percentage"" from the end of 2024, Joyner said on an earnings call on Wednesday. He added that the company has improved Medicare Advantage star ratings for the year.""Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins,"" Joyner said.Companies can decide to stop covering patients in markets that they determine are unprofitable, and patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.All three of CVS' business segments beat Wall Street's expectations for the fourth quarter.CVS' insurance business booked $32.96 billion in revenue during the quarter, up more than 23% from the fourth quarter of 2023. Analysts expected the unit to take in $32.89 billion for the period, according to estimates from StreetAccount.But the business reported an adjusted operating loss of $439 million for the fourth quarter, compared with adjusted operating income of $676 million in the year-earlier period. That change was driven by higher medical costs and the company's Medicare Advantage star ratings, among other factors.The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier. A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.The fourth-quarter ratio was lower than the 95.9% that analysts were expecting, StreetAccount estimates said.""Medical trends remain elevated, although what we experienced in the fourth quarter was less severe than what we assumed,"" CVS CFO Thomas Cowhey said on the call.CVS' health services segment generated $47.02 billion in revenue for the quarter, down more than 4% compared with the same quarter in 2023. Analysts expected the unit to post $44.06 billion in sales for the period, according to StreetAccount.That unit includes Caremark, one of the nation's largest pharmacy benefit managers. Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client. Tyson Foods told CNBC in January 2024 that it dropped CVS as the pharmacy benefit manager for its roughly 140,000 employees, but it is unclear if any other companies stopped working with CVS during the year, as well.CVS' pharmacy and consumer wellness division booked $33.51 billion in sales for the fourth quarter, up more than 7% from the same period a year earlier. Analysts expected sales of $33.03 billion for the quarter, StreetAccount said.That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing.The increase was partly driven by higher prescription volume, CVS said. Pharmacy reimbursement pressure, the launch of new generic drugs and lower volume from front-of-store items like pantry food and toiletries, including from decreased store count, weighed on the unit's sales.",CNBC,12/02/2025,"['In this articleCVS Health on Wednesday reported fourth-quarter revenue and profit that topped estimates, even as its troubled insurance business continued to see higher medical costs.', ""The company also issued a full-year 2025 adjusted earnings outlook of $5.75 to $6 per share, which was in line with Wall Street's expectations."", 'But CVS did not provide a revenue forecast for the year.', 'It caps off the first full quarter with David Joyner, a longtime CVS executive, as CEO of the troubled retail drugstore chain.', 'Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.', 'The company underwent a management reshuffle as part of a broader turnaround plan that includes $2 billion in cost cuts over the next several years.', 'CVS has grappled withrising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs.', ""Here's what CVS reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company's shares closed 15% higher on Wednesday."", 'CVS and other insurers such as UnitedHealth Group and Humana have seen medical costs spike over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic.', 'Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.', 'But investors have become concerned about the runaway costs tied to those plans, which cover more than half of all Medicare beneficiaries.', 'CVS booked sales of $97.71 billion for the fourth quarter, up 4.2% from the same period a year ago due to growth in its pharmacy business and insurance unit.', 'The company posted net income of $1.64 billion, or $1.30 per share, for the fourth quarter.', 'That compares with net income of $2.05 billion, or $1.58 per share, for the year-earlier period.', 'Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.19 per share for the quarter.', ""CVS said its fourth-quarter earnings reflect higher medical costs in its insurance business and lower Medicare Advantage star ratings for the 2024 payment year, both of which weighed on the segment's operating results for the quarter."", 'Those star ratings help Medicare patients compare the quality of Medicare health and drug plans.', 'But CVS expects to improve margins in its Medicare Advantage business in 2025, partly by shrinking its membership in those plans by a ""high single-digit percentage"" from the end of 2024, Joyner said on an earnings call on Wednesday.', 'He added that the company has improved Medicare Advantage star ratings for the year.', '""Our focus remains on delivering on our commitments to our Medicare Advantage members while creating a viable path to appropriate margins,"" Joyner said.', 'Companies can decide to stop covering patients in markets that they determine are unprofitable, and patients who lose insurance can enroll in a new Medicare Advantage plan or join traditional Medicare plans.', ""All three of CVS' business segments beat Wall Street's expectations for the fourth quarter."", ""CVS' insurance business booked $32.96 billion in revenue during the quarter, up more than 23% from the fourth quarter of 2023."", 'Analysts expected the unit to take in $32.89 billion for the period, according to estimates from StreetAccount.', 'But the business reported an adjusted operating loss of $439 million for the fourth quarter, compared with adjusted operating income of $676 million in the year-earlier period.', ""That change was driven by higher medical costs and the company's Medicare Advantage star ratings, among other factors."", ""The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier."", 'A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability.', 'The fourth-quarter ratio was lower than the 95.9% that analysts were expecting, StreetAccount estimates said.', '""Medical trends remain elevated, although what we experienced in the fourth quarter was less severe than what we assumed,"" CVS CFO Thomas Cowhey said on the call.', ""CVS' health services segment generated $47.02 billion in revenue for the quarter, down more than 4% compared with the same quarter in 2023."", 'Analysts expected the unit to post $44.06 billion in sales for the period, according to StreetAccount.', ""That unit includes Caremark, one of the nation's largest pharmacy benefit managers."", 'Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.', ""CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client."", 'Tyson Foods told CNBC in January 2024 that it dropped CVS as the pharmacy benefit manager for its roughly 140,000 employees, but it is unclear if any other companies stopped working with CVS during the year, as well.', ""CVS' pharmacy and consumer wellness division booked $33.51 billion in sales for the fourth quarter, up more than 7% from the same period a year earlier."", 'Analysts expected sales of $33.03 billion for the quarter, StreetAccount said.', ""That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing."", 'The increase was partly driven by higher prescription volume, CVS said.', ""Pharmacy reimbursement pressure, the launch of new generic drugs and lower volume from front-of-store items like pantry food and toiletries, including from decreased store count, weighed on the unit's sales.""]",0.1427858422630649,"Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a driver of growth and profits for insurers.","CVS has grappled withrising costs in its insurance unit, Aetna, and a retail pharmacy business pressured by softer consumer spending and lower reimbursements for prescription drugs.",0.3987766126791636,The insurance unit's medical benefit ratio — a measure of total medical expenses paid relative to premiums collected — increased to 94.8% from 88.5% a year earlier.,"CVS' health services division processed 499.4 million pharmacy claims during the quarter, down from 600.8 million during the year-ago period due to the loss of an unnamed large client.",2025-02-14
"Even at $8 million per Super Bowl commercial, ad executives say it's still bang for your buck",https://www.cnbc.com/2025/02/07/super-bowl-commercial-cost-ad-execs.html,2025-02-07T20:22:40+0000,"In this articleAdvertisers shelled out up to $8 million for a spot during Super Bowl 59. Ad industry executives still consider the price tag worth it, and argue it's even a bang for their buck.The NFL's championship game between the Philadelphia Eagles and Kansas City Chiefs will air this year on Fox Corp.'s broadcast network, as well as on Fox's free streamer Tubi. It'll likely be the biggest audience watching live television at the same time this year.""The scale and buzz factor still delivers a punch,"" said Amy Leifer, DirecTV's chief advertising sales officer. ""Where else can you get 100 million viewers at once, right? Especially in this fragmented landscape ... there's virtually few places you can go to get that type of scale.""Last year more than 123 million people tuned into the Super Bowl. The 2024 game racked up estimated ad revenue of about $550 million for in-game placements, according to GroupM, WPP's media investment group.While advertisers have been spending more on digital, social media and streaming platforms, traditional TV is still considered the most ""effective"" form of advertising, meaning it has the biggest impact and results for brands due to the large audiences watching at once.The ad market for traditional TV programming has slowed down as the cable bundle bleeds customers. Still, media companies with rights to live sports — as well as news and other live programming like awards shows — are able to nab a bigger chunk of ad dollars than peers without sports.While it appears the ad market is stabilizing after a slowdown, networks and streamers with sports are sure to fare better than those without this year.Sports have taken over the conversation at the advertising industry's Upfronts presentations each spring, when media companies make their pitch to advertisers. Fox sold most of the ad inventory for this year's Super Bowl during its Upfront last spring, CNBC previously reported.The Super Bowl remains about three times as effective as the average primetime programming for advertisers, according to EDO, an advertising data company. The NFL's big game last year was 224% more effective than average primetime programming, the data firm said.EDO likened the audience and engagement that comes with a Super Bowl game to an advertiser buying hundreds of spots on primetime. Based on last year's Super Bowl audience, EDO equated one ad during the big game to roughly 450 spots during primetime programming in terms of viewer engagement.""It's a fair and rational price based on our data, which is that this has been one of the most consistent performers over time,"" said Kevin Krim, CEO of EDO. ""And there's room for the price to go up based on our data. But the important thing is, it matters a ton how a brand executes on their creative idea.""For instance, when brands launch a new product during a Super Bowl commercial, consumers continue to engage with the brand via online searches or app visits even after the Super Bowl ad first aired, said Krim. He noted three recent brand launches during Super Bowl commercials — automaker Kia launching the EV6 in 2022, and Reese's unveiling its Big Caramel Cup and Popeye's promoting its new wings in 2024 — which led to a lift in engagement for each brand when the ads aired thereafter.Even localized ads that are sold at a lower cost than national ads and only shown in certain markets experience a Super Bowl lift. Zeam, a hyperlocal streaming platform, aired a spot starring actor John Stamos in select markets last year.The app had ""millions of downloads"" following the commercial, said Jack Perry, CEO of Zeam Media.""It was good enough for us, and it's not cheap for us to buy those available spots. There's a very limited number of local spots during the game,"" said Perry.Zeam will run another commercial with Stamos this year.The placement of a commercial during the game, sometimes as specific as what time during a certain quarter the ad is shown, can make a difference, too, according to Andre Banks, founder and CEO of NewWorld, a marketing and strategy consultancy.""If a brand wants to drive high-impact results, they must align their spots with when their target audience is most engaged, not the spot that receives higher viewership,"" said Banks.He noted a portion of the Super Bowl audience each year tunes in specifically for the Halftime show, which this year features rapper Kendrick Lamar, and then turns their attentions away once the moment passes.Banks also noted that social media plays a big role during the Super Bowl, with viewers turning to varying tech platforms during the game. Social media should be key for advertisers during the Super Bowl, too, he said.""With so many viewers scrolling on social channels during the game, there's also a massive opportunity for brands to optimize for second-screen engagement,"" Banks added.Ad spending on tech and social media platforms far eclipses traditional TV. GroupM estimates that ad revenue for ""pure-play digital,"" which excludes digital extensions of media companies like streaming, will grow 10% to $813.3 billion globally in 2025. By comparison, TV ad spend is expected to grow nearly 2% to $169.1 billion. Media companies have even recently come together to launch an ad platform with the aim of taking back share from tech players.Some say brands' focus on spending big on the Super Bowl and the idea that traditional TV is the most effective form of advertising may lie in the past.""I don't necessarily think when someone says it's still the most effective, that's what it is. I think what people are saying is it's the only place left where there is a really large, captive broadcast audience watching something,"" said Shoshana Winter, CEO of Converge, a performance marketing agency. ""When it comes to this particular thing, we are holding on hard and fast.""",CNBC,07/02/2025,"['In this articleAdvertisers shelled out up to $8 million for a spot during Super Bowl 59.', ""Ad industry executives still consider the price tag worth it, and argue it's even a bang for their buck."", ""The NFL's championship game between the Philadelphia Eagles and Kansas City Chiefs will air this year on Fox Corp.'s broadcast network, as well as on Fox's free streamer Tubi."", ""It'll likely be the biggest audience watching live television at the same time this year."", '""The scale and buzz factor still delivers a punch,"" said Amy Leifer, DirecTV\'s chief advertising sales officer. ""', 'Where else can you get 100 million viewers at once, right?', ""Especially in this fragmented landscape ... there's virtually few places you can go to get that type of scale."", '""Last year more than 123 million people tuned into the Super Bowl.', ""The 2024 game racked up estimated ad revenue of about $550 million for in-game placements, according to GroupM,WPP's media investment group."", 'While advertisers have been spending more on digital, social media and streaming platforms, traditional TV is still considered the most ""effective"" form of advertising, meaning it has the biggest impact and results for brands due to the large audiences watching at once.', 'The ad market for traditional TV programming has slowed down as the cable bundle bleeds customers.', 'Still, media companies with rights to live sports — as well as news and other live programming like awards shows — are able to nab a bigger chunk of ad dollars than peers without sports.', 'While it appears the ad market is stabilizing after a slowdown, networks and streamers with sports are sure to fare better than those without this year.', ""Sports have taken over the conversation at the advertising industry's Upfronts presentations each spring, when media companies make their pitch to advertisers."", ""Fox sold most of the ad inventory for this year's Super Bowl during its Upfront last spring, CNBC previously reported."", 'The Super Bowl remains about three times as effective as the average primetime programming for advertisers, according to EDO, an advertising data company.', ""The NFL's big game last year was 224% more effective than average primetime programming, the data firm said."", 'EDO likened the audience and engagement that comes with a Super Bowl game to an advertiser buying hundreds of spots on primetime.', ""Based on last year's Super Bowl audience, EDO equated one ad during the big game to roughly 450 spots during primetime programming in terms of viewer engagement."", '""It\'s a fair and rational price based on our data, which is that this has been one of the most consistent performers over time,"" said Kevin Krim, CEO of EDO. ""', ""And there's room for the price to go up based on our data."", 'But the important thing is, it matters a ton how a brand executes on their creative idea.', '""For instance, when brands launch a new product during a Super Bowl commercial, consumers continue to engage with the brand via online searches or app visits even after the Super Bowl ad first aired, said Krim.', ""He noted three recent brand launches during Super Bowl commercials — automaker Kia launching the EV6 in 2022, and Reese's unveiling its Big Caramel Cup and Popeye's promoting its new wings in 2024 — which led to a lift in engagement for each brand when the ads aired thereafter."", 'Even localized ads that are sold at a lower cost than national ads and only shown in certain markets experience a Super Bowl lift.', 'Zeam, a hyperlocal streaming platform, aired a spot starring actor John Stamos in select markets last year.', 'The app had ""millions of downloads"" following the commercial, said Jack Perry, CEO of Zeam Media.', '""It was good enough for us, and it\'s not cheap for us to buy those available spots.', 'There\'s a very limited number of local spots during the game,"" said Perry.', 'Zeam will run another commercial with Stamos this year.', 'The placement of a commercial during the game, sometimes as specific as what time during a certain quarter the ad is shown, can make a difference, too, according to Andre Banks, founder and CEO of NewWorld, a marketing and strategy consultancy.', '""If a brand wants to drive high-impact results, they must align their spots with when their target audience is most engaged, not the spot that receives higher viewership,"" said Banks.', 'He noted a portion of the Super Bowl audience each year tunes in specifically for the Halftime show, which this year features rapper Kendrick Lamar, and then turns their attentions away once the moment passes.', 'Banks also noted that social media plays a big role during the Super Bowl, with viewers turning to varying tech platforms during the game.', 'Social media should be key for advertisers during the Super Bowl, too, he said.', '""With so many viewers scrolling on social channels during the game, there\'s also a massive opportunity for brands to optimize for second-screen engagement,"" Banks added.', 'Ad spending on tech and social media platforms far eclipses traditional TV.', 'GroupM estimates that ad revenue for ""pure-play digital,"" which excludes digital extensions of media companies like streaming, will grow 10% to $813.3 billion globally in 2025.', 'By comparison, TV ad spend is expected to grow nearly 2% to $169.1 billion.', 'Media companies have even recently come together to launch an ad platform with the aim of taking back share from tech players.', ""Some say brands' focus on spending big on the Super Bowl and the idea that traditional TV is the most effective form of advertising may lie in the past."", '""I don\'t necessarily think when someone says it\'s still the most effective, that\'s what it is.', 'I think what people are saying is it\'s the only place left where there is a really large, captive broadcast audience watching something,"" said Shoshana Winter, CEO of Converge, a performance marketing agency. ""', 'When it comes to this particular thing, we are holding on hard and fast.""']",0.3712047304209487,"""For instance, when brands launch a new product during a Super Bowl commercial, consumers continue to engage with the brand via online searches or app visits even after the Super Bowl ad first aired, said Krim.","There's a very limited number of local spots during the game,"" said Perry.",0.8705649586284862,"GroupM estimates that ad revenue for ""pure-play digital,"" which excludes digital extensions of media companies like streaming, will grow 10% to $813.3 billion globally in 2025.",The ad market for traditional TV programming has slowed down as the cable bundle bleeds customers.,2025-02-14
Moderna beats on revenue but loses more than expected as it scales down manufacturing,https://www.cnbc.com/2025/02/14/moderna-mrna-q4-earnings-2024.html,2025-02-14T17:10:35+0000,"In this articleModerna on Friday posted fourth-quarter revenue that beat estimates, but lost more than expected for the period, as the biotech company continues to slash costs and demand for its Covid vaccine falls. It marks another quarter of growing pains for the company, which is racing to launch new products and recover from the rapid decline of its once-booming Covid business. Shares of Moderna climbed more than 3% on Friday. Moderna posted a net loss of $1.12 billion, or $2.91 per share, for the fourth quarter of 2024. That compares with net income of $217 million, or 55 cents per share, reported for the year-ago period.The company said the quarterly loss includes a roughly $238 million noncash charge related to ending a contract manufacturing agreement.In an interview, Moderna Chief Financial Officer Jamey Mock said one of the most important takeaways from the company's full-year 2024 results is that it reduced costs by 27% compared to 2023. By the end of 2025, Moderna expects to cut costs by $1 billion compared to 2024.Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year. Moderna expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter. The company slashed its 2025 sales guidance by roughly $1 billion in January, causing its shares to plummet. The stock is now down more than 20% for the year. At the time, Moderna pointed to increased competition in the Covid market, falling vaccination rates, timing around manufacturing contracts with a handful of countries and uncertainty around what advisors to the Centers for Disease Control and Prevention would recommend for revaccination of respiratory syncytial virus shots. ""Should those potential headwinds all hit, that's what would bring us to the low end of our guidance,"" Mock told CNBC, adding that the company is hoping to ""combat"" the challenges.Here's what Moderna reported for the fourth quarter that ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Moderna posted fourth-quarter sales of $966 million, less than half of the $2.8 billion it recorded during the same period a year ago. The vast majority of that total came from its Covid shot, which raked in $923 million, down 66% from the prior year. That includes $244 million in U.S. sales and $679 million from international markets. Analysts had expected the jab to pull in $909 million in sales for the quarter, according to estimates compiled by StreetAccount. Moderna said the decrease was mainly due to the earlier launch of the newest iteration of its Covid shot last year, which shifted sales into the third quarter. The U.S. Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing Moderna to ""meet demand more effectively ahead of the fourth quarter,"" the company added. Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna. The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May. It is Moderna's second approved product after its Covid vaccine. Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates. Moderna's RSV shot is so far approved for adults age 60 and above in the U.S., European Union, Canada, Norway, Iceland and Qatar, among other countries. The company is betting on a pipeline built around its messenger RNA platform, which is the technology used in both of those products. Moderna plans to beef up its portfolio with 10 new product approvals over the next three years. During the fourth quarter, Moderna submitted three mRNA products for regulatory approval, including its ""next-generation"" Covid shot, combination shot targeting Covid and the flu and RSV vaccine for high-risk adults ages 18 to 59. Moderna expects a decision from the FDA on the next-generation Covid shot in May, and a potential expanded approval for the RSV shot in June, according to Mock.Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products. Some of those products will have data readouts later this year, Mock noted.Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago. That includes $193 million in write-downs of unused doses of the Covid vaccine, among other costs. Research and development expenses dropped 20% to $1.1 billion compared with the same period in 2023. Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu and combination shot programs, and partially offset by increased spending on other new experimental products. Meanwhile, selling, general and administrative expenses for the period fell 25% to $351 million compared with the fourth quarter of 2023. SG&A expenses usually include the costs of promoting, selling and delivering a company's products and services.",CNBC,14/02/2025,"['In this articleModerna on Friday posted fourth-quarter revenue that beat estimates, but lost more than expected for the period, as the biotech company continues to slash costs and demand for its Covid vaccine falls.', 'It marks another quarter of growing pains for the company, which is racing to launch new products and recover from the rapid decline of its once-booming Covid business.', 'Shares of Moderna climbed more than 3% on Friday.', 'Moderna posted a net loss of $1.12 billion, or $2.91 per share, for the fourth quarter of 2024.', 'That compares with net income of $217 million, or 55 cents per share, reported for the year-ago period.', 'The company said the quarterly loss includes a roughly $238 million noncash charge related to ending a contract manufacturing agreement.', ""In an interview, Moderna Chief Financial Officer Jamey Mock said one of the most important takeaways from the company's full-year 2024 results is that it reduced costs by 27% compared to 2023."", 'By the end of 2025, Moderna expects to cut costs by $1 billion compared to 2024.Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, most of which will come in the second half of the year.', 'Moderna expects only $200 million in sales to come in during the first half of the year due to seasonal demand for respiratory products, which typically rises in the fall and winter.', 'The company slashed its 2025 sales guidance by roughly $1 billion in January, causing its shares to plummet.', 'The stock is now down more than 20% for the year.', 'At the time, Moderna pointed to increased competition in the Covid market, falling vaccination rates, timing around manufacturing contracts with a handful of countries and uncertainty around what advisors to the Centers for Disease Control and Prevention would recommend for revaccination of respiratory syncytial virus shots.', '""Should those potential headwinds all hit, that\'s what would bring us to the low end of our guidance,"" Mock told CNBC, adding that the company is hoping to ""combat"" the challenges.', ""Here's what Moderna reported for the fourth quarter that ended Dec. 31 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Moderna posted fourth-quarter sales of $966 million, less than half of the $2.8 billion it recorded during the same period a year ago."", 'The vast majority of that total came from its Covid shot, which raked in $923 million, down 66% from the prior year.', 'That includes $244 million in U.S. sales and $679 million from international markets.', 'Analysts had expected the jab to pull in $909 million in sales for the quarter, according to estimates compiled by StreetAccount.', 'Moderna said the decrease was mainly due to the earlier launch of the newest iteration of its Covid shot last year, which shifted sales into the third quarter.', 'The U.S. Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing Moderna to ""meet demand more effectively ahead of the fourth quarter,"" the company added.', 'Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna.', ""The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May."", ""It is Moderna's second approved product after its Covid vaccine."", 'Analysts had expected sales of $13 million for the RSV vaccine, according to StreetAccount estimates.', ""Moderna's RSV shot is so far approved for adults age 60 and above in the U.S., European Union, Canada, Norway, Iceland and Qatar, among other countries."", 'The company is betting on a pipeline built around its messenger RNA platform, which is the technology used in both of those products.', 'Moderna plans to beef up its portfolio with 10 new product approvals over the next three years.', 'During the fourth quarter, Moderna submitted three mRNA products for regulatory approval, including its ""next-generation"" Covid shot, combination shot targeting Covid and the flu and RSV vaccine for high-risk adults ages 18 to 59.Moderna expects a decision from the FDA on the next-generation Covid shot in May, and a potential expanded approval for the RSV shot in June, according to Mock.', 'Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products.', 'Some of those products will have data readouts later this year, Mock noted.', 'Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago.', 'That includes $193 million in write-downs of unused doses of the Covid vaccine, among other costs.', 'Research and development expenses dropped 20% to $1.1 billion compared with the same period in 2023.', 'Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu and combination shot programs, and partially offset by increased spending on other new experimental products.', 'Meanwhile, selling, general and administrative expenses for the period fell 25% to $351 million compared with the fourth quarter of 2023.', ""SG&A expenses usually include the costs of promoting, selling and delivering a company's products and services.""]",0.0104063483858514,"The company's fourth-quarter revenue also included $15 million in U.S. sales of its RSV shot, which rolled out to seniors in the fall and winter after winning approval in May.","Moderna is also developing a stand-alone flu shot, a personalized cancer vaccine with Merck and shots for latent viruses, among other products.",-0.0251545102699943,Shares of Moderna climbed more than 3% on Friday.,"Covid vaccine sales fell internationally because the company continued to phase out advance purchase agreements with certain countries, according to Moderna.",2025-02-14
Coca-Cola says it will sell more soda in plastic bottles if aluminum tariffs take effect,https://www.cnbc.com/2025/02/11/coca-cola-discusses-trump-aluminum-tariffs.html,2025-02-11T17:15:31+0000,"In this articleCoca-Cola will shift more of its packaging from aluminum to plastic bottles if President Donald Trump implements his latest wave of tariffs, CEO James Quincey said Tuesday.""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said on the company's earnings conference call. ""For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,"" Quincey added.Trump on Monday raised tariffs on all aluminum and steel imports to 25% from 10%, starting next month. The action is widely seen as taking aim at China, although the U.S. imports little steel directly from the country.Quincey downplayed the financial hit for Coca-Cola from the tariffs, although he said on CNBC's ""Squawk on the Street"" that the company buys some aluminum from Canada.""I think we're in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,"" Quincey said on the conference call. ""It's not insignificant, but it's not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure,"" the CEO added.In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.Aluminum is generally more expensive than plastic, but it is also infinitely recyclable and one of the most commonly recycled materials. In recent years, the company has shifted to adding more aluminum packaging options, such as canned Dasani and Smartwater.PET, or polyethylene terephthalate, is a lightweight plastic that can be easily recycled but is recycled at a lower rate than aluminum. The recycling rate of PET bottles and jars was 29.1% in 2018, compared with the recycling rate of aluminum beer and soft drink cans at 50.4% in the same year, according to data from the Environmental Protection Agency.Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage.Just two months ago, Coca-Cola slashed its sustainability goals. The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030. The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.",CNBC,11/02/2025,"['In this articleCoca-Cola will shift more of its packaging from aluminum to plastic bottles if President Donald Trump implements his latest wave of tariffs, CEO James Quincey said Tuesday.', '""As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space,"" Quincey said on the company\'s earnings conference call. ""', 'For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles, etc.,""', 'Quincey added.', 'Trump on Monday raised tariffs on all aluminum and steel imports to 25% from 10%, starting next month.', 'The action is widely seen as taking aim at China, although the U.S. imports little steel directly from the country.', 'Quincey downplayed the financial hit for Coca-Cola from the tariffs, although he said on CNBC\'s ""Squawk on the Street"" that the company buys some aluminum from Canada.', '""I think we\'re in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,"" Quincey said on the conference call. ""', 'It\'s not insignificant, but it\'s not going to radically change a multibillion-dollar U.S. business, and packaging is only a small component of the total cost structure,"" the CEO added.', 'In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.', 'Aluminum is generally more expensive than plastic, but it is also infinitely recyclable and one of the most commonly recycled materials.', 'In recent years, the company has shifted to adding more aluminum packaging options, such as canned Dasani and Smartwater.', 'PET, or polyethylene terephthalate, is a lightweight plastic that can be easily recycled but is recycled at a lower rate than aluminum.', 'The recycling rate of PET bottles and jars was 29.1% in 2018, compared with the recycling rate of aluminum beer and soft drink cans at 50.4% in the same year, according to data from the Environmental Protection Agency.', ""Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage."", 'Just two months ago, Coca-Cola slashed its sustainability goals.', 'The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030.', 'The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.']",-0.0358323272255695,"The company also said it wants to ""ensure the collection"" of 70% to 75% of the equivalent number of bottles and cans it introduces annually, rather than recycling the plastic equivalent of every bottle it uses by 2030.","Even as Coca-Cola has tried to use more aluminum, the company has been named the world's worst polluter by Greenpeace for six straight years for its single-use plastic usage.",-0.2568704088528951,"In addition to shifting to more plastic packaging, Coca-Cola can also blunt the effects of duties on its business by finding domestic aluminum sources and increasing the price for customers, Quincey added.","The beverage giant now aims to use 35% to 40% recycled material in packaging by 2035, down from its prior target of 50% recycled material by 2030.",2025-02-14
CFPB’s new leadership begins staff purge with dozens of employees terminated,https://www.cnbc.com/2025/02/12/cfpb-staff-purge-begins-with-dozens-of-employees-terminated.html,2025-02-12T21:17:35+0000,"The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation.The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.The move comes amid a broader effort under President Donald Trump to trim federal staff. The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported. That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency. The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work. Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency's dismissal notice. ""It's almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce.""Hickman, who said she started in her CFPB role in June of 2023, said the agency's new leadership didn't follow established federal protocol for dismissing probationary employees. ""A lot of us are prepared to fight, and we are examining all our legal avenues,"" she said.The terminations have sowed more confusion at the bureau, as several of those being laid off had already accepted federal buyout offers, said one of the people.Some being dismissed received form letters that did not include their specific names and titles, but left some fields filled with generic placeholders, said this person.""Unfortunately, the Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not meet the Agency's current needs,"" the CFPB told some who were dismissed, according to people who received the notices.The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person. The agency had about 1,700 employees before the job cuts.The CFPB declined to comment.",CNBC,12/02/2025,"['The Consumer Financial Protection Bureau sent termination notices to several dozen employees late Tuesday, according to people with knowledge of the situation.', 'The affected staff were mostly those with probationary status, said the people, who asked for anonymity to speak candidly after orders to stop all agency work, including speaking with reporters.', 'Being on probation means the employee is in a trial period, often lasting a year or two, after starting a new government position, and does not reflect performance, the people said.', 'The move comes amid a broader effort under President Donald Trump to trim federal staff.', 'The Office of Personnel Management asked federal agencies for lists of all recently hired workers because they are the easiest to terminate, NBC News has reported.', 'That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.', ""CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency."", 'The CFPB headquarters have since been shuttered, while employees were told by acting CFPB director Russell Vought not to do any bureau work.', 'Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency\'s dismissal notice. ""', ""It's almost certainly the first salvo in the dismantling of this agency, and a significant percentage of the federal workforce."", '""Hickman, who said she started in her CFPB role in June of 2023, said the agency\'s new leadership didn\'t follow established federal protocol for dismissing probationary employees. ""', 'A lot of us are prepared to fight, and we are examining all our legal avenues,"" she said.', 'The terminations have sowed more confusion at the bureau, as several of those being laid off had already accepted federal buyout offers, said one of the people.', 'Some being dismissed received form letters that did not include their specific names and titles, but left some fields filled with generic placeholders, said this person.', '""Unfortunately, the Agency finds that you are not fit for continued employment because your ability, knowledge and skills do not meet the Agency\'s current needs,"" the CFPB toldsome who weredismissed, according topeoplewho received the notices.', ""The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person."", 'The agency had about 1,700 employees before the job cuts.', 'The CFPB declined to comment.']",-0.010750554288755,"CFPB staff have been on edge since late last week, when operatives of Elon Musk's Department of Government Efficiency gained access to the agency.","Both Musk and Vought have called for the elimination of the CFPB.""This is an unlawfully-executed mass firing,"" said Johanna Hickman, senior CFPB litigation counsel who said she received the agency's dismissal notice. """,-0.488809734582901,"The terminations hit the CFPB's enforcement division in particular because of a push under former director Rohit Chopra to boost hiring of enforcement lawyers, said another person.",That has stoked fears of layoffs at places as disparate as the Federal Bureau of Investigation and the Environmental Protection Agency.,2025-02-14
CFPB heads of supervision and enforcement announce resignations after stop-work order,https://www.cnbc.com/2025/02/11/cfpb-leaders-announce-resignations-after-stop-work-order.html,2025-02-11T17:32:06+0000,"Two senior leaders at the Consumer Financial Protection Bureau announced their resignations the day after acting Director Russell Vought instructed all staff to cease working.In separate memos sent early Tuesday, Lorelei Salas, supervision director for the agency, and Eric Halperin, enforcement director, said they could no longer serve in their respective roles after Vought's mandate, according to emails obtained by CNBC.""The Bureau has been instructed to stand down,"" Salas said. ""I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.""""I don't believe in these conditions I can effectively serve in my role, which is protecting American consumers,"" Halperin said. ""Today I made the difficult decision to resign.""A representative for the Office of Management and Budget, speaking on behalf of the CFPB, said in a statement to CNBC later Tuesday that Halperin and Salas had been placed on administrative leave prior to their announcements of resignation.The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years. The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.CFPB employees have been on edge since operatives of Elon Musk's advisory group known as the Department of Government Efficiency arrived at the regulator late last week. Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.""I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,"" Salas wrote. ""The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.""",CNBC,11/02/2025,"['Two senior leaders at the Consumer Financial Protection Bureau announced their resignations the day after acting Director Russell Vought instructed all staff to cease working.', 'In separate memos sent early Tuesday, Lorelei Salas, supervision director for the agency, and Eric Halperin, enforcement director, said they could no longer serve in their respective roles after Vought\'s mandate, according to emails obtained by CNBC.""The Bureau has been instructed to stand down,"" Salas said. ""', 'I do not believe it is appropriate, nor lawful, to stop all supervisory activities and examinations, and I cannot longer serve as the Supervision Director.', '""""I don\'t believe in these conditions I can effectively serve in my role, which is protecting American consumers,"" Halperin said. ""', 'Today I made the difficult decision to resign.', '""A representative for the Office of Management and Budget, speaking on behalf of the CFPB, said in a statement to CNBC later Tuesday that Halperin and Salas had been placed on administrative leave prior to their announcements of resignation.', 'The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years.', 'The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.', ""CFPB employees have been on edge since operatives ofElon Musk's advisory group known as the Department of Government Efficiency arrived at the regulator late last week."", 'Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.', '""I know you are concerned about your futures, the future of the bureau, and more importantly, the impact these sweeping changes will have on everyday consumers,"" Salas wrote. ""', 'The ways in which you protect the American consumer cannot be captured in just a few sentences, and too many are unaware of the work you do behind the scenes.""']",-0.0320221907008197,"Then Vought was named acting director, effective Friday, and he quickly said he would refuse fresh funding for the agency, shuttered its Washington, D.C., headquarters, and instructed staff to freeze all bureau work.","The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.",-0.3717827200889587,"The agency has aggressively policed financial firms and said in June that it has returned nearly $21 billion to consumers since its creation in 2011.Halperin said that his office, charged with enforcing consumer protection mandates, secured $9.5 billion in fines or consumer redress since 2021.Opponents of the agency have said that under former Director Rohit Chopra it reached beyond its legal authority in punishing banks and that his attempts to rein in industry fees would hurt consumers.","The departures add further to uncertainty at the CFPB, which has been targeted by trade groups and conservatives for years.",2025-02-14
"Roku shares surge as company halves quarterly losses, adds 4 million streaming households",https://www.cnbc.com/2025/02/14/roku-shares-surge-as-company-nearly-halves-quarterly-losses.html,2025-02-14T21:01:38+0000,"In this articleShares of Roku surged 14% Friday, notching a new 52-week high, on earnings that beat Wall Street expectations.In an interview on CNBC's ""Squawk Box,"" CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.Wood said the company added more than four million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin.""We're the No. 1 streaming operating system in the country and in most of the Americas by a wide margin,"" he said.Here's how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company boosted revenue by 22% to $1.2 billion. It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase. Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.""Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,"" Wood said.The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.",CNBC,14/02/2025,"['In this articleShares of Roku surged 14% Friday, notching a new 52-week high, on earnings that beat Wall Street expectations.', 'In an interview on CNBC\'s ""Squawk Box,"" CEO Anthony Wood said more than half of U.S. broadband households now watch TV with Roku.', 'Wood said the company added more than four million new streaming households during its most recent quarter and is on track to reach 100 million streaming households in the next year.', ""The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin."", '""We\'re the No.', '1 streaming operating system in the country and in most of the Americas by a wide margin,"" he said.', ""Here's how the company performed for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The company boosted revenue by 22% to $1.2 billion."", 'It reported a net loss for the period of $35.5 million, or 24 cents per share, an improvement from a net loss of $78.3 million, or 55 cents per share, during the same quarter a year earlier.', 'Roku reported 89.8 million streaming households as of the end of 2024, a 12% year-over-year increase.', 'Beginning next quarter, the company no longer expects to report that metric as it streamlines earnings reports to focus on revenue and profitability numbers.', 'Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.', '""Advertising is a big part of our business, and so a big focus for us in our strategy is to continue to grow demand by working with third-party partners,"" Wood said.', 'The company is forecasting net revenue of $1 billion and gross profit of $450 million for the first quarter of 2025.']",0.1704985061856122,"The company's growth was driven in part by the Roku user experience, including promoting content on its home screen, Wood told CNBC's Julia Boorstin.","""We're the No.",0.9994687363505363,"Roku also reported an 18% year-over-year increase in streaming hours in the fourth quarter, with a focus on continuing to grow ad demand through ""deeper third-party platform integrations,"" the company said in its earnings release.",,2025-02-14
"Tequila, mezcal are the only spirits growing in sales, but tariffs would be 'catastrophic,' industry group says",https://www.cnbc.com/2025/02/11/tequila-mezcal-sales-are-growing-but-mexico-tariffs-may-hit-industry.html,2025-02-11T22:34:42+0000,"The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday.Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.That is the first time revenue for the spirits category has fallen in more than two decades. Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019. Between 2003 and 2019, the average annual growth rate was 4.4%.""While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,"" said DISCUS President and CEO Chris Swonger.Tequila and mezcal remained a bright spot for the year as the only spirits category showing sales growth, as revenue climbed 2.9% to $6.7 billion.Top five spirits categories by revenue in 2024:Premixed ready-to-drink cocktails grew double digits, but the category includes various types of mixed spirits including vodka, rum, whiskey and cordials.Mexican spirits and beer have grown more popular with consumers for over two decades, and tequila and mezcal sales outpaced American whiskey for the first time in 2023.The road ahead for the Mexico-based products remains uncertain. The Trump administration earlier this month delayed imposing tariffs on imports from Mexico — which would include distinctive products such as mezcal and tequila — by one month while tariff negotiations continue.""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. ""Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry,"" Hart added.Swonger also noted that tariffs would be a ""catastrophic blow"" to distillers and only add to the pressure higher interest rates have put on the industry's supply chain, as wholesalers and retailers continue to deplete inventory buildups and cautiously restock products.""Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,"" said Swonger. ""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.",CNBC,11/02/2025,"['The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday.', 'Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.', 'That is the first time revenue for the spirits category has fallen in more than two decades.', 'Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019.', 'Between 2003 and 2019, the average annual growth rate was 4.4%.""While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,"" said DISCUS President and CEO Chris Swonger.', 'Tequila and mezcal remained a bright spot for the year as the only spirits category showing sales growth, as revenue climbed 2.9% to $6.7 billion.', 'Top five spirits categories by revenue in 2024:Premixed ready-to-drink cocktails grew double digits, but the category includes various types of mixed spirits including vodka, rum, whiskey and cordials.', 'Mexican spirits and beer have grown more popular with consumers for over two decades, and tequila and mezcal sales outpaced American whiskey for the first time in 2023.The road ahead for the Mexico-based products remains uncertain.', 'The Trump administration earlier this month delayed imposing tariffs on imports from Mexico — which would include distinctive products such as mezcal and tequila — by one month while tariff negotiations continue.', '""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. ""', 'Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry,"" Hart added.', 'Swonger also noted that tariffs would be a ""catastrophic blow"" to distillers and only add to the pressure higher interest rates have put on the industry\'s supply chain, as wholesalers and retailers continue to deplete inventory buildups and cautiously restock products.', '""Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,"" said Swonger.', '""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.']",0.1879811171130622,"""Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends,"" he said.","""These tariffs have wreaked havoc on our craft distilling community,"" said Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago. """,-0.0776780385237473,"Despite a return to more typical buying patterns after a pandemic boom, spirits revenues have grown an average 5.1% annually since 2019.","Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.",2025-02-14
"As Trump eyes more tariffs, South Korea remains safe haven for GM and Hyundai",https://www.cnbc.com/2025/02/13/trump-tariffs-gm-hyundai-south-korean-imports.html,2025-02-15T21:01:45+0000,"DETROIT — As President Donald Trump threatens to further increase tariffs on U.S. trading partners, the greatest impact for the auto industry outside of North America would be additional levies on South Korea and Japan.The East Asian countries produced a combined 16.8% of vehicles sold last year in the U.S., including a record 8.6% from South Korea and 8.2% from Japan, according to data provided to CNBC by GlobalData.They were the largest vehicle importers to the U.S. outside of Mexico — and they have little to no duties compared with the 25% tariff Trump has threatened imposing on Canada and Mexico.Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea. The country overtook Japan and Canada last year to become the second-largest exporter of new cars to the U.S., based on sales.It trails only Mexico, which represented 16.2% of U.S. auto sales in 2024, GlobalData reports.""Obviously Hyundai has a massive amount of exposure. Behind it is GM … with relatively large volume models,"" said Jeff Schuster, global vice president of automotive research at GlobalData. ""There's a lot of risk potentially here, but it's limited, really limited, to those two players.""Imports from Japan are currently subject to a 2.5% tariff for automakers such as Toyota Motor, Nissan Motor and Honda Motor. Vehicles from Japan represented about 1.31 million autos sold last year in the U.S.Japan's percentage of sales has actually decreased in recent years, while South Korea's exports and sales have continued to rise from less than 845,000 in 2019 to more than 1.37 million in 2024.South Korea has 0% tariffs on cars despite Trump renegotiating a trade deal with the country during his first term in 2018. That accord was touted for improving vehicle imports to South Korea, but it did little to address vehicle exports to the U.S.The deal also has done little for increasing automotive exports to South Korea, according to data from the International Trade Commission. U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States. The companies importing the goods pay the tariffs, and some experts fear the companies would simply pass any additional costs on to consumers — raising the cost of vehicles and potentially reducing demand.South Korea-based Hyundai is the largest exporter of vehicles to the U.S., followed by GM and then Kia Corp., a part of Hyundai that largely operates separately in the U.S.GM has notably increased its imports from South Korea in recent years. Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.GM is the largest foreign direct investor in Korea's manufacturing industry, according to the automaker's website. It has invested 9 trillion South Korean won (roughly $6.2 billion) since establishing the operations in 2002.GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea. The company has touted the vehicles as being a pinnacle for the automaker's profitable growth in lower-margin, entry-level vehicles.""We're taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company's investor day in October. ""Trax and Envista have helped raise our share of the U.S. small SUV market to its highest level since 2007.""GM and Kia declined to comment when asked about potential tariffs on South Korea. Hyundai touted its operations and investments in the U.S., which the carmaker says have totaled $20.5 billion since entering the market in 1986, but did not directly comment on potential tariffs.""For nearly four decades, Hyundai has been a driver of American growth and innovation, contributing jobs, economic activity, and investments that have helped Americans prosper. We welcome the opportunity to work with the new administration to support American manufacturing, protect supply chains, and spur innovation,"" Hyundai said Thursday in an emailed statement.Terence Lau, dean of the College of Law at Syracuse University who previously worked as a trade expert for Ford Motor, said the automotive industry is built on free trade. If tariffs are implemented, the industry can adjust, but it takes time.""The car industry can adjust to anything. Really, it can. It's always going to make product that customers want to buy, because personal mobility and transportation is a human need all around the world,"" he said. ""What the car industry cannot do well is pivot on a dime.""Lau argued that a single-digit tariff can be a ""nuisance,"" but once they hit 10% or more, that's when additional costs can really began eating into the margin or products.Ford Motor CEO Jim Farley last week argued that if Trump is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries to even the playing field in North America.Farley singled out Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.""There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],"" Farley said during the company's fourth-quarter earnings call with investors. ""So if we're going to have a tariff policy ... it better be comprehensive for our industry.""We can't just cherry-pick one place or the other because this is a bonanza for our import competitors.""The White House did not respond for comment on potential tariffs on South Korea.Trump on Thursday signed a presidential memorandum laying out his plan to impose ""reciprocal tariffs"" on foreign nations, but did not go into detail regarding what countries could be targeted.As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports. But he also advocated for Congress to pass what he called the ""Trump Reciprocal Trade Act,"" which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.— CNBC's Kevin Breuninger contributed to this report.",CNBC,15/02/2025,"['DETROIT — As President Donald Trump threatens to further increase tariffs on U.S. trading partners, the greatest impact for the auto industry outside of North America would be additional levies on South Korea and Japan.', 'The East Asian countries produced a combined 16.8% of vehicles sold last year in the U.S., including a record 8.6% from South Korea and 8.2% from Japan, according to data provided to CNBC by GlobalData.', 'They were the largest vehicle importers to the U.S. outside of Mexico — and they have little to no duties compared with the 25% tariff Trump has threatened imposing on Canada and Mexico.', 'Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea.', 'The country overtook Japan and Canada last year to become the second-largest exporter of new cars to the U.S., based on sales.', 'It trails only Mexico, which represented 16.2% of U.S. auto sales in 2024, GlobalData reports.', '""Obviously Hyundai has a massive amount of exposure.', 'Behind it is GM … with relatively large volume models,"" said Jeff Schuster, global vice president of automotive research at GlobalData. ""', ""There's a lot of risk potentially here, but it's limited, really limited, to those two players."", '""Imports from Japan are currently subject to a 2.5% tariff for automakers such as Toyota Motor, Nissan Motor and Honda Motor.', ""Vehicles from Japan represented about 1.31 million autos sold last year in the U.S.Japan's percentage of sales has actually decreased in recent years, while South Korea's exports and sales have continued to rise from less than 845,000 in 2019 to more than 1.37 million in 2024.South Korea has 0% tariffs on cars despite Trump renegotiating a trade deal with the country during his first term in 2018."", 'That accord was touted for improving vehicle imports to South Korea, but it did little to address vehicle exports to the U.S.The deal also has done little for increasing automotive exports to South Korea, according to data from the International Trade Commission.', 'U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States.', 'The companies importing the goods pay the tariffs, and some experts fear the companies would simply pass any additional costs on to consumers — raising the cost of vehicles and potentially reducing demand.', 'South Korea-based Hyundai is the largest exporter of vehicles to the U.S., followed by GM and then Kia Corp., a part of Hyundai that largely operates separately in the U.S.GM has notably increased its imports from South Korea in recent years.', 'Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.', ""GM is the largest foreign direct investor in Korea's manufacturing industry, according to the automaker's website."", 'It has invested 9 trillion South Korean won (roughly $6.2 billion) since establishing the operations in 2002.GM produces its Buick Encore GX and Buick Envista crossovers, as well as the Chevrolet Trailblazer and Chevrolet Trax crossovers, at plants in South Korea.', ""The company has touted the vehicles as being a pinnacle for the automaker's profitable growth in lower-margin, entry-level vehicles."", '""We\'re taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company\'s investor day in October. ""', 'Trax and Envista have helped raise our share of the U.S. small SUV market to its highest level since 2007.""GM and Kia declined to comment when asked about potential tariffs on South Korea.', 'Hyundai touted its operations and investments in the U.S., which the carmaker says have totaled $20.5 billion since entering the market in 1986, but did not directly comment on potential tariffs.', '""For nearly four decades, Hyundai has been a driver of American growth and innovation, contributing jobs, economic activity, and investments that have helped Americans prosper.', 'We welcome the opportunity to work with the new administration to support American manufacturing, protect supply chains, and spur innovation,"" Hyundai said Thursday in an emailed statement.', 'Terence Lau, dean of the College of Law at Syracuse University who previously worked as a trade expert for Ford Motor, said the automotive industry is built on free trade.', 'If tariffs are implemented, the industry can adjust, but it takes time.', '""The car industry can adjust to anything.', 'Really, it can.', 'It\'s always going to make product that customers want to buy, because personal mobility and transportation is a human need all around the world,"" he said. ""', 'What the car industry cannot do well is pivot on a dime.', '""Lau argued that a single-digit tariff can be a ""nuisance,"" but once they hit 10% or more, that\'s when additional costs can really began eating into the margin or products.', 'Ford Motor CEO Jim Farley last week argued that if Trump is going to implement tariffs affecting the automotive industry, it should take a ""comprehensive"" look at all countries to even the playing field in North America.', 'Farley singled out Toyota and Hyundai for importing hundreds of thousands of vehicles annually from Japan and South Korea, respectively.', '""There are millions of vehicles coming into our country that are not being applied to these [incremental tariffs],"" Farley said during the company\'s fourth-quarter earnings call with investors. ""', ""So if we're going to have a tariff policy ... it better be comprehensive for our industry."", '""We can\'t just cherry-pick one place or the other because this is a bonanza for our import competitors.', '""The White House did not respond for comment on potential tariffs on South Korea.', 'Trump on Thursday signed a presidential memorandum laying out his plan to impose ""reciprocal tariffs"" on foreign nations, but did not go into detail regarding what countries could be targeted.', 'As a presidential candidate, Trump floated the possibility of imposing across-the-board tariffs on all U.S. imports.', 'But he also advocated for Congress to pass what he called the ""Trump Reciprocal Trade Act,"" which would empower him to slap tariffs on the goods of any country that has higher tariffs on U.S.-made goods.—', ""CNBC's Kevin Breuninger contributed to this report.""]",0.0928438907485276,"""We're taking out costs of programs, improving profitability and creating vehicles that customers love, like the new Chevy Trax and the Buick Envista,"" GM President Mark Reuss said during the company's investor day in October. ""","There's a lot of risk potentially here, but it's limited, really limited, to those two players.",0.3944496549665928,"Its U.S. sales of South Korean-produced vehicles — largely entry-level models — have risen from 173,000 in 2019 to more than 407,000 last year, according to GlobalData.","U.S. passenger vehicle exports to South Korea have actually decreased by roughly 16%.Separate from cars, tariffs on trucks exported from South Korea and Japan to the U.S, as well as elsewhere, are 25%.A tariff is a tax on imports, or foreign goods, brought into the United States.",2025-02-14
Prebiotic soda brand Olipop valued at $1.85 billion in latest funding round,https://www.cnbc.com/2025/02/12/olipop-prebiotic-soda-valued-at-1point85-billion-in-funding-round.html,2025-02-13T16:07:58+0000,"Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday. Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.Olipop's Series C funding round was led by J.P. Morgan Private Capital's Growth Equity Partners. The company plans to use the money it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS. Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category. One in four Gen Z consumers drinks Olipop, according to the company.In early 2024, Olipop reached profitability, the company said. Its annual sales surpassed $400 million last year, doubling the year prior. In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data. Poppi's annual sales reportedly crossed $100 million in 2023. Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game.Poppi has also faced some backlash for its health claims. The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.",CNBC,13/02/2025,"['Prebiotic soda brand Olipop said Wednesday that it was valued at $1.85 billion in its latest funding round, which raised $50 million for the company.', 'Founded in 2018, Olipop has helped fuel the growth of the prebiotic soda category, along with rival Poppi, which highlighted its drinks with a Super Bowl ad on Sunday.', 'Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.', ""Olipop's Series C funding round was led by J.P. Morgan Private Capital's Growth Equity Partners."", 'The company plans to use the money it raised to add to its product lineup, expand its marketing and distribute its sodas more widely.', 'Today, Olipop is the top nonalcoholic beverage brand in the U.S., both by dollar sales and unit growth, the company said, citing data from Circana/SPINS.', 'Roughly half its growth comes from legacy soda drinkers, while the other half comes from consumers entering the carbonated soft drink category.', 'One in four Gen Z consumers drinks Olipop, according to the company.', 'In early 2024, Olipop reached profitability, the company said.', 'Its annual sales surpassed $400 million last year, doubling the year prior.', 'In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.', 'For its part, rival Poppi, which was founded 10 years ago, has raised $39.3 million as of 2023 at an undisclosed valuation, according to Pitchbook data.', ""Poppi's annual sales reportedly crossed $100 million in 2023."", 'Its appearance during the Super Bowl was the second straight year that it paid for an ad during the big game.', 'Poppi has also faced some backlash for its health claims.', ""The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.""]",0.2496519312747468,"Both have attracted consumers with their claims that their drinks help with ""gut health,"" one of the latest wellness trends taking over food and beverage aisles.","The company is currently in talks to settle a lawsuit that argued Poppi's drinks are not as healthy as the company claims, according to court filings.",0.6967675941331046,"Its annual sales surpassed $400 million last year, doubling the year prior.",Poppi has also faced some backlash for its health claims.,2025-02-14
Super Bowl 59 attracts record 127.7 million viewers,https://www.cnbc.com/2025/02/11/super-bowl-59-viewership.html,2025-02-12T14:36:50+0000,"In this articleThe Philadelphia Eagles weren't the only ones that scored big at the Super Bowl.The National Football League's championship game attracted a record 127.7 million viewers on Sunday, according to Nielsen Media Research.The supersized live audience was of most importance to the advertisers that shelled out big bucks to have their brands featured during the Super Bowl. It is rare that programming on live TV attracts such a big audience in one sitting, making the hefty price tag worth it, advertising industry executives recently told CNBC.The cost of advertising during the Super Bowl rises each year, especially as the cable bundle loses more and more customers and must-watch programming revolves around sports and other live events. This year, some brands spent up to $8 million for a spot during the game.Sunday's Super Bowl aired on Fox Corporation's broadcast network, as well as its Spanish-language cable network Fox Deportes and NBCUniversal's Telemundo. Fox also offered the Super Bowl on its free, ad-supported streamer Tubi, and it was also available on the NFL's digital properties.Fox said Wednesday that the Super Bowl on its broadcast network and Tubi generated more than $800 million in gross revenue from advertising sales across all platforms. The 2024 Super Bowl brought in estimated ad revenue of about $550 million for in-game placements, according to GroupM, WPP's media investment group.""The clear winners Sunday night were the Eagles, the NFL, and FOX. Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,"" said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.Last year, the Super Bowl had locked down another viewership record at the time, when more than 123 million tuned into Paramount Global's CBS broadcast network, TelevisaUnivision network and other streaming options such as Paramount+.Fox also reported that the Super Bowl broke another record when it came to streaming. The game on Tubi, Telemundo and the NFL's digital offerings garnered 14.5 million viewers, while Tubi alone had 13.6 million viewers, according to Tubi first-party data and Adobe Analytics. This was the first time the Super Bowl was available on the app.The Super Bowl's viewership peaked at an audience of 137.7 million from 8 p.m. to 8:15 p.m. ET, during the second quarter, according to Nielsen.Anticipation for the game helped boost viewership, too. Fox's pregame coverage averaged 23.4 million viewers between 1 p.m. and kickoff.The Eagles ran away with the game against the Kansas City Chiefs, with a final score of 40-22. While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported.The Spanish language networks Fox Deportes and Telemundo had an average audience of 1.87 million combined viewers, according to Fox. This was the first time the Super Bowl was offered on both a cable network and broadcaster in Spanish. The league has been pushing to expand its audience, with a key part of its strategy being Hispanic viewership.Disclosure: Comcast owns CNBC parent company NBCUniversal. Correction: The headline on this story has been updated to correct that it was Super Bowl 59.",CNBC,12/02/2025,"[""In this articleThe Philadelphia Eagles weren't the only ones that scored big at the Super Bowl."", ""The National Football League's championship game attracted a record 127.7 million viewers on Sunday, according to Nielsen Media Research."", 'The supersized live audience was of most importance to the advertisers that shelled out big bucks to have their brands featured during the Super Bowl.', 'It is rare that programming on live TV attracts such a big audience in one sitting, making the hefty price tag worth it, advertising industry executives recently told CNBC.The cost of advertising during the Super Bowl rises each year, especially as the cable bundle loses more and more customers and must-watch programming revolves around sports and other live events.', 'This year, some brands spent up to $8 million for a spot during the game.', ""Sunday's Super Bowl aired on Fox Corporation's broadcast network, as well as its Spanish-language cable network Fox Deportes and NBCUniversal's Telemundo."", ""Fox also offered the Super Bowl on its free, ad-supported streamer Tubi, and it was also available on the NFL's digital properties."", 'Fox said Wednesday that the Super Bowl on its broadcast network and Tubi generated more than $800 million in gross revenue from advertising sales across all platforms.', ""The 2024 Super Bowl brought in estimated ad revenue of about $550 million for in-game placements, according to GroupM,WPP's media investment group."", '""The clear winners Sunday night were the Eagles, the NFL, and FOX.Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,""said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.', ""Last year, the Super Bowl had locked down another viewership record at the time, when more than 123 million tuned into Paramount Global's CBS broadcast network, TelevisaUnivision network and other streaming options such as Paramount+.Fox also reported that the Super Bowl broke another record when it came to streaming."", ""The game on Tubi, Telemundo and the NFL's digital offerings garnered 14.5 million viewers, while Tubi alone had 13.6 million viewers, according to Tubi first-party data and Adobe Analytics."", 'This was the first time the Super Bowl was available on the app.', ""The Super Bowl's viewership peaked at an audience of 137.7 million from 8 p.m. to 8:15 p.m. ET, during the second quarter, according to Nielsen."", 'Anticipation for the game helped boost viewership, too.', ""Fox's pregame coverage averaged 23.4 million viewers between 1 p.m. and kickoff."", 'The Eagles ran away with the game against the Kansas City Chiefs, with a final score of 40-22.', 'While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.', ""The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported."", 'The Spanish language networks Fox Deportes and Telemundo had an average audience of 1.87 million combined viewers, according to Fox.', 'This was the first time the Super Bowl was offered on both a cable network and broadcaster in Spanish.', 'The league has been pushing to expand its audience, with a key part of its strategy being Hispanic viewership.', 'Disclosure: Comcast owns CNBC parent company NBCUniversal.', 'Correction: The headline on this story has been updated to correct that it was Super Bowl 59.']",0.4216337387588909,"""The clear winners Sunday night were the Eagles, the NFL, and FOX.Congratulations to our teams at FOX Sports and Tubi for a record-breaking and historic Super Bowl LIX, the most-watched, most-streamed, and most successful Super Bowl ever,""said Fox Corp. CEO Lachlan Murdoch in a release Wednesday.",,0.5203825235366821,"The halftime show, headlined by rapper Kendrick Lamar and also featuring R&B artist SZA, had an average 133.5 million viewers across TV and digital platforms between 8:30 p.m. and 8:45 p.m. ET, up 3% from last year's viewership of the music spectacle, Nielsen reported.","While viewership tends to drop off in games with a large gap in the score, viewers clearly stuck around through the game.",2025-02-14
Comcast and NBCUniversal receive FCC inquiry on DEI initiatives,https://www.cnbc.com/2025/02/12/comcast-nbcuniversal-fcc-inquiry-dei.html,2025-02-13T13:17:55+0000,"In this articleThe Federal Communications Commission has alerted Comcast Corp. that it will begin an investigation into the diversity, equity and inclusion efforts at the media giant.The FCC, the agency that regulates the media and telecommunications industry, said in a letter dated Tuesday that it would open the inquiry into both Comcast — which provides broadband, mobile and cable TV services under the Xfinity brand — and NBCUniversal, the media arm that encompasses the company's broadcast and cable TV networks, streaming app Peacock, and Universal film studio and amusement parks.The letter comes three weeks after President Donald Trump signed an executive order looking to end DEI practices at U.S. corporations. The order calls for each federal agency to ""identify up to nine potential civil compliance investigations"" among publicly traded companies, as well as nonprofits and other institutions.FCC Chairman Brendan Carr, a Republican who was recently appointed by Trump, said he was starting his investigation with Comcast and NBCUniversal because they ""cover a range of sectors regulated by the FCC.""""We have received an inquiry from the Federal Communications Commission and will be cooperating with the FCC to answer their questions,"" a Comcast spokesperson said in a statement Wednesday. ""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers."" Carr said in the letter sent to Comcast that he was ""concerned that Comcast and NBCUniversal may be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.""The letter goes on to say that ""Comcast states on its website that promoting DEI is 'a core value of our business' and public reports state that Comcast has an entire 'DEI infrastructure' that includes annual 'DEI day[s],' 'DEI training for company leaders,' and similar initiatives."" The letter says NBCUniversal has similar initiatives, ""including executives specifically dedicated to promoting DEI across the TV and programming side of the business.""Later on Wednesday, FCC Commissioner Geoffrey Starks issued a statement condemning the investigation and requesting to receive more information. He noted that when Carr was a commissioner himself, he ""blasted the prior administration for acting in a way that 'gives the FCC a nearly limitless power to veto private sector decision.'""""From what I know this enforcement action is out of our lane and out of our reach. I have asked for a briefing to understand the Enforcement Bureau's theory of the case, the authority relied upon and any prior precedent. This action gives me grave concern,"" Starks said in a statement. An FCC representative didn't immediately respond for comment regarding the statement from Starks.Fellow media giant Disney is changing its DEI programs, which includes updating performance factors and rebranding initiatives and employee resource groups, among other things, the company confirmed Wednesday.Public broadcaster PBS is shutting down its DEI office. A PBS representative confirmed that those employees were leaving the company, noting it was to stay in compliance with Trump's executive order.""We will continue to adhere to our mission and values. PBS will continue to reflect all of America and remain a welcoming place for everyone,"" the broadcaster said in a statement.Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.— CNBC's Sarah Whitten contributed to this article.",CNBC,13/02/2025,"['In this articleThe Federal Communications Commission has alerted Comcast Corp. that it will begin an investigation into the diversity, equity and inclusion efforts at the media giant.', ""The FCC, the agency that regulates the media and telecommunications industry, said in a letter dated Tuesday that it would open the inquiry into both Comcast — which provides broadband, mobile and cable TV services under the Xfinity brand — and NBCUniversal, the media arm that encompasses the company's broadcast and cable TV networks, streaming app Peacock, and Universal film studio and amusement parks."", 'The letter comes three weeks after President Donald Trump signed an executive order looking to end DEI practices at U.S. corporations.', 'The order calls for each federal agency to ""identify up to nine potential civil compliance investigations"" among publicly traded companies, as well as nonprofits and other institutions.', 'FCC Chairman Brendan Carr, a Republican who was recently appointed by Trump, said he was starting his investigation with Comcast and NBCUniversal because they ""cover a range of sectors regulated by the FCC.""""We have received an inquiry from the Federal Communications Commission and will be cooperating with the FCC to answer their questions,"" a Comcast spokesperson said in a statement Wednesday.', '""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers.', '""Carr said in the letter sent to Comcast that he was ""concerned that Comcast and NBCUniversal may be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.', '""The letter goes on to say that ""Comcast states on its website that promoting DEI is \'a core value of our business\' and public reports state that Comcast has an entire \'DEI infrastructure\' that includes annual \'DEI day[s],\' \'DEI training for company leaders,\' and similar initiatives.""', 'The letter says NBCUniversal has similar initiatives, ""including executives specifically dedicated to promoting DEI across the TV and programming side of the business.', '""Later on Wednesday, FCC Commissioner Geoffrey Starks issued a statement condemning the investigation and requesting to receive more information.', 'He noted that when Carr was a commissioner himself, he ""blasted the prior administration for acting in a way that \'gives the FCC a nearly limitless power to veto private sector decision.', '\'""""From what I know this enforcement action is out of our lane and out of our reach.', ""I have asked for a briefing to understand the Enforcement Bureau's theory of the case, the authority relied upon and any prior precedent."", 'This action gives me grave concern,"" Starks said in a statement.', ""An FCC representative didn't immediately respond for comment regarding the statement from Starks."", 'Fellow media giant Disney is changing its DEI programs, which includes updating performance factors and rebranding initiatives and employee resource groups, among other things, the company confirmed Wednesday.', 'Public broadcaster PBS is shutting down its DEI office.', ""A PBS representative confirmed that those employees were leaving the company, noting it was to stay in compliance with Trump's executive order."", '""We will continue to adhere to our mission and values.', 'PBS will continue to reflect all of America and remain a welcoming place for everyone,"" the broadcaster said in a statement.', 'Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.—', ""CNBC's Sarah Whitten contributed to this article.""]",0.1599878249686233,"""For decades, our company has been built on a foundation of integrity and respect for all of our employees and customers.","This action gives me grave concern,"" Starks said in a statement.",-0.982764333486557,,"This action gives me grave concern,"" Starks said in a statement.",2025-02-14
Fashion's most hated garment — the skinny jean — is making a comeback,https://www.cnbc.com/2025/02/08/skinny-jeans-are-making-a-comeback.html,2025-02-10T15:30:47+0000,"In this articleThe vilified linchpin of millennial and Y2K fashion – the skinny jean – might be on its way to a comeback.Over the last few months, a range of skinny styles, including pants and jeans, have cropped up on fashion runways, influencer videos and Google search trends, indicating the divisive garment could soon be a closet staple again. Part of the buzz around skinny jeans undoubtedly came when TikTok star and Gen Z influencer Alix Earle debuted a pair of exclusive skinnies with denim brand Frame at the end of January, but the hype was already building before that. ""For like the last six months, we started to hear rumblings of skinny jeans making a comeback,"" said Janine Stichter, a retail analyst and managing director at BTIG. ""If you look at Google Trends data for skinny jeans ... it actually [spiked] the week of January 12 and it's been picking up steam ever since.""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.That likely led to a spike in interest across retailers. Reformation told CNBC this week its customers have been searching for skinny jeans on its website more frequently lately.American Eagle has also seen interest grow. ""Certainly, there's a lot of activity on skinny. I would like to say there's a styling thing that's happening, the high boot situation, and high boots and skinny jeans work, so that's definitely taking hold,"" Jen Foyle, American Eagle's president and executive creative officer, told CNBC in an interview.""You're starting to see some of that movement but right now, it's still relatively small, but we're prepared to roll with it as we test it and scale,"" she continued. ""Our job is to be nimble, right?""But like any fashion trend, the skinny jean resurgence was first spotted on the runways. Based on how the major designers are interpreting the look, it'll appear different this time around. ""On the runways, Prada, Isabel Morant, Tod's, they all did very slim silhouette pants. They're calling them skinny pants. The difference is that they're doing them in plaid, not just solids. They're doing them in these very tailored fabrics,"" said Shawn Grain Carter, a fashion professor at the Fashion Institute of Technology in New York. ""We're seeing some of the celebrities wear these skinny jeans, but they're not nearly as conforming … it's different from the jeggings that you saw [between 2009 and 2011]... It conforms to the leg, but it doesn't have to necessarily hug it so tightly that all you see is an outline of a woman's leg.""The unofficial queen of denim – Levi Strauss CEO Michelle Gass – spotted the same trend on the runways and told CNBC she expects the controversial jeans to officially come back ""sometime in the future.""""While we don't have a crystal ball, don't get rid of your skinny jeans,"" said Gass. ""I do think when we see a bigger trend re-emerge, it's going to look and feel different."" Grain Carter said skinny styles could start appearing in stores more widely by this summer, but Stichter said they could start returning to shelves closer to the fall when more consumers are out shopping for pants and jeans. That'll be welcome news for apparel and footwear retailers because whenever trends shift, it tends to trigger a surge in demand for new clothes, she said. ""If we are to get a full fledged restocking in any of these styles, it tends to be a big positive for the sector,"" said Stichter. ""Anytime you have a big silhouette shift, it's positive for restocking cycles. It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for."" For those who've only just stocked up their closet on baggy and loose fits, the current jean du jour, rest assured that there's room for both. If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter.Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead. ""The denim closet really should have all varieties of denim. It really is about what you're wearing, what your mood is, and people still wear skinny today,"" said Gass. ""So keep your loose, keep your baggie. Everything right now goes.""",CNBC,10/02/2025,"['In this articleThe vilified linchpin of millennial and Y2K fashion – the skinny jean – might be on its way to a comeback.', 'Over the last few months, a range of skinny styles, including pants and jeans, have cropped up on fashion runways, influencer videos and Google search trends, indicating the divisive garment could soon be a closet staple again.', 'Part of the buzz around skinny jeans undoubtedly came when TikTok star and Gen Z influencer Alix Earle debuted a pair of exclusive skinnies with denim brand Frame at the end of January, but the hype was already building before that.', '""For like the last six months, we started to hear rumblings of skinny jeans making a comeback,"" said Janine Stichter, a retail analyst and managing director at BTIG. ""', ""If you look at Google Trends data for skinny jeans ... it actually [spiked] the week of January 12 and it's been picking up steam ever since."", '""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.', 'That likely led to a spike in interest across retailers.', 'Reformation told CNBC this week its customers have been searching for skinny jeans on its website more frequently lately.', 'American Eagle has also seen interest grow.', '""Certainly, there\'s a lot of activity on skinny.', 'I would like to say there\'s a styling thing that\'s happening, the high boot situation, and high boots and skinny jeans work, so that\'s definitely taking hold,"" Jen Foyle, American Eagle\'s president and executive creative officer, told CNBC in an interview.', '""You\'re starting to see some of that movement but right now, it\'s still relatively small, but we\'re prepared to roll with it as we test it and scale,"" she continued. ""', 'Our job is to be nimble, right?""But like any fashion trend, the skinny jean resurgence was first spotted on the runways.', ""Based on how the major designers are interpreting the look, it'll appear different this time around."", '""On the runways, Prada, Isabel Morant, Tod\'s, they all did very slim silhouette pants.', ""They're calling them skinny pants."", ""The difference is that they're doing them in plaid, not just solids."", 'They\'re doing them in these very tailored fabrics,"" said Shawn Grain Carter, a fashion professor at the Fashion Institute of Technology in New York. ""', ""We're seeing some of the celebrities wear these skinny jeans, but they're not nearly as conforming … it's different from the jeggings that you saw [between 2009 and 2011]... It conforms to the leg, but it doesn't have to necessarily hug it so tightly that all you see is an outline of a woman's leg."", '""The unofficial queen of denim – Levi Strauss CEO Michelle Gass – spotted the same trend on the runways and told CNBC she expects the controversial jeans to officially come back ""sometime in the future.', '""""While we don\'t have a crystal ball, don\'t get rid of your skinny jeans,"" said Gass. ""', ""I do think when we see a bigger trend re-emerge, it's going to look and feel different."", '""Grain Carter said skinny styles could start appearing in stores more widely by this summer, but Stichtersaid they could start returning to shelves closer to the fall when more consumers are out shopping for pants and jeans.', ""That'll be welcome news for apparel and footwear retailers because whenever trends shift, it tends to trigger a surge in demand for new clothes, she said."", '""If we are to get a full fledged restocking in any of these styles, it tends to be a big positive for the sector,"" said Stichter. ""', ""Anytime you have a big silhouette shift, it's positive for restocking cycles."", ""It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for."", '""For those who\'ve only just stocked up their closet on baggy and loose fits, the current jean du jour, rest assured that there\'s room for both.', ""If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter."", ""Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead."", '""The denim closet really should have all varieties of denim.', 'It really is about what you\'re wearing, what your mood is, and people still wear skinny today,"" said Gass. ""', 'So keep your loose, keep your baggie.', 'Everything right now goes.""']",0.154870661078114,"It's also positive for footwear because you need different footwear to go with the bottoms, and then you don't just buy the bottoms, you tend to need different tops to go with the bottom so it can kind of catalyze a whole closet refresh … That's kind of what we're looking out for.","Many shoppers never stopped wearing skinny jeans, and with the breakneck pace that trends move in the age of social media, fashion cycles can be resurrected before they're even dead.",0.8036356866359711,"""The week after Earle debuted her skinny jean partnership with Frame, searches for skinny jeans were up 50% year over year, she added, but still well off their 2009 peak.","If there's one thing that's started to define fashion, it's the lack of consensus among consumers of all age groups and styles, said Stichter.",2025-02-14
"As Target and other retailers drop DEI programs, Black founders could face tougher battle to get and stay on shelves",https://www.cnbc.com/2025/02/14/target-walmart-dei-decisions-could-hurt-black-founders.html,2025-02-14T16:17:44+0000,"Fragrance brand Brown Girl Jane's perfume bottles sit on shelves at Sephora near some of the most storied labels in the fashion and beauty world, including Prada and Dior.For the Black-owned brand, getting a retailer to bet on it was just the start, Brown Girl Jane CEO and founder Malaika Jones said. She said Sephora has supported the company so it can better compete with well-known brands with huge marketing budgets and glossy celebrity endorsements.Brown Girl Jane received a $100,000 grant last year from Sephora to help grow its business and participated in Sephora's Accelerate program, which aims to boost founders who are people of color. Sephora spotlighted the fragrance brand in an email to customers in early February, putting it in front of potential shoppers who don't know its name. Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago.While Sephora has put its weight behind its brand incubator, much larger retailers like Walmart and Target recently scaled back similar efforts focused on finding and funding more brands founded by people of color. Without that support from the retailers themselves, brands like Brown Girl Jane could face a tougher time getting on shelves — and succeeding once they get there.""For small brands, but for any brands, really, it's a constant fight for relevance and for visibility,"" Jones said. ""And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves.""When retailers launched supplier diversity programs — many of them in the months after police killed George Floyd in 2020 — top industry leaders including Walmart CEO Doug McMillon and Target CEO Brian Cornell spoke out about the institutional barriers that people of color face, including when financing their businesses. Now, as more retailers drop diversity, equity and inclusion programs, Black-owned brands may find it harder to clear those hurdles.In January, Target dropped specific DEI pledges that it made four years ago after Floyd was murdered a short distance from its Minneapolis headquarters. Among those goals, the big-box retailer had committed to adding products from more than 500 Black-owned brands to its shelves or website and spending $2 billion with Black-owned businesses by 2025.Late last year, Walmart confirmed that it was ending key diversity initiatives, including winding down the Center for Racial Equity, a nonprofit that the retailer started and funded with $100 million to tackle racial inequities. It had chosen finance as one of those focus areas, noting the gap in funding for Black entrepreneurs.Gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers.Not every major retailer has dropped DEI initiatives. Sephora, Costco and E.l.f. Beauty, among others, have reaffirmed their commitments. And the most prominent effort to increase the share of Black-owned brands on retail shelves, the 15 Percent Pledge, still has major backers.Companies from Google to Ford and Tractor Supply have rolled back their initiatives to boost representation of people of color, women and LGBTQ+ people, as political backlash and pressure from conservative activists has intensified. The trend only accelerated after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as ""dangerous, demeaning, and immoral race- and sex-based preferences.""It's a sharp change from about five years ago, when companies released a wave of announcements committing to fighting inequity. They made bold pledges to add more diversity to their workforces and C-suites, seek out Black and minority vendors and donate to philanthropic causes that fought racism and supported expanded opportunities for marginalized groups.Fear of litigation, activist investor scrutiny and political pressure has caused companies to backpedal or keep their initiatives below the radar, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI.One of those lawsuits targeted The Fearless Fund, an Atlanta-based venture capital fund dedicated to awarding grants to businesses founded by Black women to bridge a longstanding funding gap. Only 1.3% of the more than $345 billion raised by venture-backed startups in 2021 went to Black founders, according to Deloitte and Venture Forward's 2023 report. About 2.4% went to startups led by female founders and 2.1% of that total went to startups led by Hispanic founders.American Alliance for Equal Rights, a conservative group founded by Edward Blum, sued The Fearless Fund in 2023, accusing it of discriminating against non-Black business owners. Blum previously fought against race-based college admissions, a campaign that led to the Supreme Court's ruling that affirmative action policies are unconstitutional — which some companies cited last year in ending their DEI initiatives.As part of a settlement reached last year, The Fearless Fund shut down its grant program.Solorzano said that lawsuit had a chilling effect and will ""seriously undermine some of these [supplier] initiatives."" He said he expects more corporations to scrub numbers from their diversity programs, including supplier programs focused on increasing Black- and minority-owned brands on shelves.Yet ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, he said. Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors.Even as some retailers walk back diversity pledges, Sephora, Costco and E.l.f. Beauty, have doubled down on those efforts not as a feel-good move, but as a meaningful part of their business strategies.Sephora, a 15 Percent Pledge member which is owned by LVMH, has increased the percentage of Black-owned brands on its shelves from 3% in 2020 to about 10% as of 2025, said Artemis Patrick, president and CEO of Sephora North America. In its hair category, 15% of the brands are Black-owned.Sephora started Accelerate in 2016 with a focus on female founders. The six-month incubator helps mentor business owners, connects them to investors and gives them the opportunity to launch at Sephora.The retailer pivoted the program in 2020 to focus on Black and other minority founders to address ""the need of the evolving consumer and where we truly did feel like we had an assortment gap,"" Patrick said.So far, more than 33 Black- and minority-owned brands have gone through the incubator, she said.""Our business is really good and the fact that we've been really focused on diversifying our assortment, I think there's a strong correlation,"" she said.She added ""it would be very strange in a beauty category to not be driving diversity in your assortment that meets the needs of your clients.""At Costco's annual meeting last month, 98% of shareholders rejected a proposal that requested a report on the risk of Costco maintaining diversity, equity and inclusion initiatives.In a proxy statement ahead of the meeting, the warehouse club's board of directors said diversity benefits its business and helps it better serve a wide range of customers.""Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the 'treasure hunt' that our customers value,"" it wrote.Costco's board added that diversity across its suppliers ""fosters creativity and innovation in the merchandise and services that we offer our members.""Tarang Amin, CEO of popular Gen Z makeup brand E.l.f. Beauty, called the company's diversity ""a key competitive advantage in terms of our results"" in an interview with CNN earlier this month. He said the company's employees are 74% women, 76% Gen Z and millennial and over 44% diverse and ""reflect the community we serve.""Nearly five years ago, Aurora James challenged companies in an Instagram post to dedicate more of their shelf space to Black-owned businesses. That idea, which she proposed days after Floyd's murder, started the 15 Percent Pledge.""So many of your businesses are built on Black spending power,"" she wrote at the time. ""So many of your stores are set up in Black communities. So many of your posts seen on Black feeds. This is the least you can do for us. We represent 15% of the population and we need to represent 15% of your shelf space.""Sephora was the first company to sign the pledge. About 22 companies are active participants in the pledge, including Macy's and Nordstrom, according to the nonprofit. The 15 Percent Pledge has a directory of Black-owned brands on its website. It also awards grants to businesses and raises money to back Black-owned businesses through an annual gala, which drew celebrities, actors and business leaders including Kim Kardashian, Kelly Rowland and Jesse Williams earlier this month.Some of the changes inspired by the pledge are visible on shelves.Sephora has more than tripled the Black-owned brands on its shelves in the past five years. In the email to customers, it noted that number had spiked from eight to 30 since it took the Fifteen Percent Pledge in 2020.Those brands include makeup, shampoos and more backed by small entrepreneurs and celebrities, including Fenty Beauty by Rihanna, Pattern by Tracee Ellis Ross and Sienna Naturals, which was co-founded by Hannah Diop and actress Issa Rae.Nordstrom, which also signed on to the 15 Percent Pledge, has now added more Black-owned brands, too, including Buttah Skin, Briogeo and Honor the Gift.And Macy's, another 15 Percent Pledge participant, has had an accelerator for over a decade which was launched to support underrepresented brand owners and founders. The Workshop, which started in 2011, offers grant funding and education for companies seeking to make it on retailers' shelves and websites.James, who herself is a Black founder of a luxury brand called Brother Vellies, said she's disheartened to see companies back away from supporting smaller Black- and minority-owned suppliers.""The idea is not about giving preferential treatment,"" she said. ""The idea is about making sure that we cast our net wide enough that we're not just looking at the obvious channels.""By relying more on big conglomerates, retailers miss out on funding smaller U.S. business that create jobs and stimulate the local economy, she said.""In a time when I think small business all across America is suffering, to specifically target groups of founders and say, 'You can't get access or opportunity,' just feels like a blow to all small businesses across America,"" she said.She said the reversal of DEI by some companies show their commitments never ran deep.""Target never took the pledge. Walmart never took the pledge,"" she said. ""I don't think that they were ever really that serious about what they were doing.""Not every company has stuck with the pledge. Gap did not renew with the group late last year — but said in a statement that it's not backing away from DEI efforts. Over the past year, the company has gone through major changes as part of a turnaround led by Richard Dickson, its new CEO.In a statement, the denim and apparel retailer, which also includes Old Navy and Athleta, said the pledge looked different for the company because it sells and manufacturers its own brands. It said it ""joined the pledge with the goal of increasing our diverse access and pipeline programs, and we met and exceeded that goal.""A Gap spokesman declined to share specific goals, but said they focused on recruiting talent from diverse backgrounds.This week, Gap rolled out a limited-time initiative to support Black businesses by selling shirts and hoodies from six Black designers from Harlem's Fashion Row online and in select stores.Walmart and Target have downplayed concerns that they will start to carry fewer Black-owned brands. A Walmart spokesperson pointed to the company's Supplier Inclusion Program, which focuses on adding products from smaller vendors. She said the company also works with banks and lenders to expedite payments for orders or connect suppliers to loans.Even as Target phases out DEI goals for Black-owned businesses, the discounter will keep offering Black-owned and minority-owned brands, a spokesman said. On its website, it's promoting its collection of Black History Month items. He said Target will offer its Forward Founders program two times per year, which is designed for early-stage consumer packaged goods companies across categories including beauty, food and pets.When Target launched Forward Founders in 2021, the company said the program was ""designed to help Black-owned businesses increase their potential for long-term success in retail.""Since last year, Target's website has said the program is ""evolving"" — noting that founders no longer fill out an application for programs and Target will reach out to them if they're ""a strategic fit."" A spokesman said the company's changes to its DEI initiatives do not affect its programs to boost founders, but did not offer more detail.Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.In an Instagram post, social media personality, actress, and entrepreneur Tabitha Brown said ""it's definitely heartbreaking to feel unsupported."" But Brown, who has an active contract with Target, encouraged shoppers to use their dollars strategically when shopping Target's shelves.She's developed merchandise with Target, including a collection of clothing, swimwear and home decor. Target also carries Donna's Recipe, a haircare brand she co-founded.""You can still go into those stores, if you choose to, and buy specific brands that you want to support. And let the other things not get your money,"" she said.She said if sales of Black-owned brands fall, retailers will remove them from their shelves.""And then what happens to all the businesses who worked so hard to get where they are?"" she said.Handbag designer Brandon Blackwood said he worries that it will be harder for the next founder like him to get picked up by a major retailer.His brand took off in 2020 during the Black Lives Matter movement, after he made a tote decorated with three words instead of a logo: ""End Systemic Racism."" The bag gained traction through social media.Yet he said major retailers that picked up handbags from his brand at the time, including Neiman Marcus, Bloomingdale's and Nordstrom, ""helped put my product in front of a lot of people that wouldn't necessarily have seen it.""""That really helped us and that really helped our brand awareness,"" he said.If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.For Brown Girl Jane, winning the confidence and business of major retailers — and particularly, Sephora — has been game changing, said Jones, the company's founder and CEO. The brand got picked up first by Nordstrom in 2021. Now, Macy's, Saks Fifth Avenue and Bloomingdale's also sell its fragrances.Sephora is its the biggest wholesale deal so far: The beauty retailer carries some exclusive scents, including Carnivale, a fragrance that sells for $102 and blends together juicy mango, sandalwood and creamy vanilla.Jones said the company's annual revenue is now in the $5 million to $7 million range. Roughly half of the company's sales come from wholesale.She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they've also been ""the biggest champion and a true partner of the brand.""And she said that customers of all races desire her brand — and others from Black founders. About 40% of Brown Girl Jane's customers are white, she said.By backing away from DEI, she said companies also send a message to their buyers that casting a wide net for new brands doesn't matter.""It's one thing to say 'Ok, yeah. They [buyers] can still find who they find,'"" she said. ""But we know that without intentionality, a lot of these brands are just going to be overlooked.""",CNBC,14/02/2025,"[""Fragrance brand Brown Girl Jane's perfume bottles sit on shelves at Sephora near some of the most storied labels in the fashion and beauty world, including Prada and Dior."", 'For the Black-owned brand, getting a retailer to bet on it was just the start, Brown Girl Jane CEO and founder Malaika Jones said.', 'She said Sephora has supported the company so it can better compete with well-known brands with huge marketing budgets and glossy celebrity endorsements.', ""Brown Girl Jane received a $100,000 grant last year from Sephora to help grow its business and participated in Sephora's Accelerate program, which aims to boost founders who are people of color."", ""Sephora spotlighted the fragrance brand in an email to customers in early February, putting it in front of potential shoppers who don't know its name."", ""Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago."", 'While Sephora has put its weight behind its brand incubator, much larger retailers like Walmart and Target recently scaled back similar efforts focused on finding and funding more brands founded by people of color.', 'Without that support from the retailers themselves, brands like Brown Girl Jane could face a tougher time getting on shelves — and succeeding once they get there.', '""For small brands, but for any brands, really, it\'s a constant fight for relevance and for visibility,"" Jones said. ""', ""And so when you don't have that commitment or even that understanding from the retailer side, it becomes quite difficult for small brands to survive — even when they've made it on shelves."", '""When retailers launched supplier diversity programs — many of them in the months after police killed George Floyd in 2020 — top industry leaders including Walmart CEO Doug McMillon and Target CEO Brian Cornell spoke out about the institutional barriers that people of color face, including when financing their businesses.', 'Now, as more retailers drop diversity, equity and inclusion programs, Black-owned brands may find it harder to clear those hurdles.', 'In January, Target dropped specific DEI pledges that it made four years ago after Floyd was murdered a short distance from its Minneapolis headquarters.', 'Among those goals, the big-box retailer had committed to adding products from more than 500 Black-owned brands to its shelves or website and spending $2 billion with Black-owned businesses by 2025.Late last year, Walmart confirmed that it was ending key diversity initiatives, including winding down the Center for Racial Equity, a nonprofit that the retailer started and funded with $100 million to tackle racial inequities.', 'It had chosen finance as one of those focus areas, noting the gap in funding for Black entrepreneurs.', ""Gutting those efforts could jeopardize a valuable pathway for Black founders to build their businesses and reach the millions of shoppers who browse the websites and aisles at the nation's largest and best-known retailers."", 'Not every major retailer has dropped DEI initiatives.', 'Sephora, Costco and E.l.f.', 'Beauty, among others, have reaffirmed their commitments.', 'And the most prominent effort to increase the share of Black-owned brands on retail shelves, the 15 Percent Pledge, still has major backers.', 'Companies from Google to Ford and Tractor Supply have rolled back their initiatives to boost representation of people of color, women and LGBTQ+ people, as political backlash and pressure from conservative activists has intensified.', 'The trend only accelerated after President Donald Trump issued an executive order banning DEI programs in the federal government and describing the efforts as ""dangerous, demeaning, and immoral race- and sex-based preferences.', '""It\'s a sharp change from about five years ago, when companies released a wave of announcements committing to fighting inequity.', 'They made bold pledges to add more diversity to their workforces and C-suites, seek out Black and minority vendors and donate to philanthropic causes that fought racism and supported expanded opportunities for marginalized groups.', 'Fear of litigation, activist investor scrutiny and political pressure has caused companies to backpedal or keep their initiatives below the radar, said Jon Solorzano, an attorney at Vinson & Elkins who advises companies on DEI.One of those lawsuits targeted The Fearless Fund, an Atlanta-based venture capital fund dedicated to awarding grants to businesses founded by Black women to bridge a longstanding funding gap.', ""Only 1.3% of the more than $345 billion raised by venture-backed startups in 2021 went to Black founders, according to Deloitte and Venture Forward's 2023 report."", 'About 2.4% went to startups led by female founders and 2.1% of that total went to startups led by Hispanic founders.', 'American Alliance for Equal Rights, a conservative group founded by Edward Blum, sued The Fearless Fund in 2023, accusing it of discriminating against non-Black business owners.', ""Blum previously fought against race-based college admissions, a campaign that led to the Supreme Court's ruling that affirmative action policies are unconstitutional — which some companies cited last year in ending their DEI initiatives."", 'As part of a settlement reached last year, The Fearless Fund shut down its grant program.', 'Solorzano said that lawsuit had a chilling effect and will ""seriously undermine some of these [supplier] initiatives.""', 'He said he expects more corporations to scrub numbers from their diversity programs, including supplier programs focused on increasing Black- and minority-owned brands on shelves.', 'Yet ending or scaling back efforts to seek out merchandise that reflects the diversity of U.S. consumers could put a company at risk, too, he said.', 'Not only could companies face boycotts, but also they could miss out on fresher items and brands that help them stand apart from competitors.', 'Even as some retailers walk back diversity pledges, Sephora, Costco and E.l.f.', 'Beauty, have doubled down on those efforts not as a feel-good move, but as a meaningful part of their business strategies.', 'Sephora, a 15 Percent Pledge member which is owned by LVMH, has increased the percentage of Black-owned brands on its shelves from 3% in 2020 to about 10% as of 2025, said Artemis Patrick, president and CEO of Sephora North America.', 'In its hair category, 15% of the brands are Black-owned.', 'Sephora started Accelerate in 2016 with a focus on female founders.', 'The six-month incubator helps mentor business owners, connects them to investors and gives them the opportunity to launch at Sephora.', 'The retailer pivoted the program in 2020 to focus on Black and other minority founders to address ""the need of the evolving consumer and where we truly did feel like we had an assortment gap,"" Patrick said.', 'So far, more than 33 Black- and minority-owned brands have gone through the incubator, she said.', '""Our business is really good and the fact that we\'ve been really focused on diversifying our assortment, I think there\'s a strong correlation,"" she said.', 'She added ""it would be very strange in a beauty category to not be driving diversity in your assortment that meets the needs of your clients.', '""At Costco\'s annual meeting last month, 98% of shareholders rejected a proposal that requested a report on the risk of Costco maintaining diversity, equity and inclusion initiatives.', ""In a proxy statement ahead of the meeting, the warehouse club's board of directors said diversity benefits its business and helps it better serve a wide range of customers."", '""Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the \'treasure hunt\' that our customers value,"" it wrote.', 'Costco\'s board added that diversity across its suppliers ""fosters creativity and innovation in the merchandise and services that we offer our members.', '""Tarang Amin, CEO of popular Gen Z makeup brand E.l.f.', 'Beauty, called the company\'s diversity ""a key competitive advantage in terms of our results"" in an interview with CNN earlier this month.', 'He said the company\'s employees are 74% women, 76% Gen Z and millennial and over 44% diverse and ""reflect the community we serve.', '""Nearly five years ago, Aurora James challenged companies in an Instagram post to dedicate more of their shelf space to Black-owned businesses.', ""That idea, which she proposed days after Floyd's murder, started the 15 Percent Pledge."", '""So many of your businesses are built on Black spending power,"" she wrote at the time. ""', 'So many of your stores are set up in Black communities.', 'So many of your posts seen on Black feeds.', 'This is the least you can do for us.', 'We represent 15% of the population and we need to represent 15% of your shelf space.', '""Sephora was the first company to sign the pledge.', ""About 22 companies are active participants in the pledge, including Macy's and Nordstrom, according to the nonprofit."", 'The 15 Percent Pledge has a directory of Black-owned brands on its website.', 'It also awards grants to businesses and raises money to back Black-owned businesses through an annual gala, which drew celebrities, actors and business leaders including Kim Kardashian, Kelly Rowland and Jesse Williams earlier this month.', 'Some of the changes inspired by the pledge are visible on shelves.', 'Sephora has more than tripled the Black-owned brands on its shelves in the past five years.', 'In the email to customers, it noted that number had spiked from eight to 30 since it took the Fifteen Percent Pledge in 2020.Those brands include makeup, shampoos and more backed by small entrepreneurs and celebrities, including Fenty Beauty by Rihanna, Pattern by Tracee Ellis Ross and Sienna Naturals, which was co-founded by Hannah Diop and actress Issa Rae.', 'Nordstrom, which also signed on to the 15 Percent Pledge, has now added more Black-owned brands, too, including Buttah Skin, Briogeo and Honor the Gift.', ""And Macy's, another 15 Percent Pledge participant, has had an accelerator for over a decade which was launched to support underrepresented brand owners and founders."", ""The Workshop, which started in 2011, offers grant funding and education for companies seeking to make it on retailers' shelves and websites."", ""James, who herself is a Black founder of a luxury brand called Brother Vellies, said she's disheartened to see companies back away from supporting smaller Black- and minority-owned suppliers."", '""The idea is not about giving preferential treatment,"" she said. ""', ""The idea is about making sure that we cast our net wide enough that we're not just looking at the obvious channels."", '""By relying more on big conglomerates, retailers miss out on funding smaller U.S. business that create jobs and stimulate the local economy, she said.', '""In a time when I think small business all across America is suffering, to specifically target groups of founders and say, \'You can\'t get access or opportunity,\' just feels like a blow to all small businesses across America,"" she said.', 'She said the reversal of DEI by some companies show their commitments never ran deep.', '""Target never took the pledge.', 'Walmart never took the pledge,"" she said. ""', ""I don't think that they were ever really that serious about what they were doing."", '""Not every company has stuck with the pledge.', ""Gap did not renew with the group late last year — but said in a statement that it's not backing away from DEI efforts."", 'Over the past year, the company has gone through major changes as part of a turnaround led by Richard Dickson, its new CEO.In a statement, the denim and apparel retailer, which also includes Old Navy and Athleta, said the pledge looked different for the company because it sells and manufacturers its own brands.', 'It said it ""joined thepledge with the goal of increasing our diverse access and pipeline programs, and we met and exceeded that goal.', '""A Gap spokesman declined to share specific goals, but said they focused on recruiting talent from diverse backgrounds.', ""This week, Gap rolled out a limited-time initiative to support Black businesses by selling shirts and hoodies from six Black designers from Harlem's Fashion Row online and in select stores."", 'Walmart and Target have downplayed concerns that they will start to carry fewer Black-owned brands.', ""A Walmart spokesperson pointed to the company'sSupplier Inclusion Program, which focuses on adding products from smaller vendors."", 'She said the company also works with banks and lenders to expedite payments for orders or connect suppliers to loans.', 'Even as Target phases out DEI goals for Black-owned businesses, the discounter will keep offering Black-owned and minority-owned brands, a spokesman said.', ""On its website, it's promoting its collection of Black History Month items."", 'He said Target will offer itsForward Foundersprogram two times per year, which is designed for early-stage consumer packaged goods companies across categories including beauty, food and pets.', 'When Target launched Forward Founders in 2021, the company said the program was ""designed to help Black-owned businesses increase their potential for long-term success in retail.', '""Since last year, Target\'s website has said the program is ""evolving"" —noting that founders no longer fill out an application for programs and Target will reach out to them if they\'re ""a strategic fit.', '""A spokesman said the company\'s changes to its DEI initiatives do not affect its programs to boost founders, but did not offer more detail.', 'Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.', 'In an Instagram post, social media personality, actress, and entrepreneur Tabitha Brown said ""it\'s definitely heartbreaking to feel unsupported.""', ""But Brown, who has an active contract with Target, encouraged shoppers to use their dollars strategically when shopping Target's shelves."", ""She's developed merchandise with Target, including a collection of clothing, swimwear and home decor."", ""Target also carries Donna's Recipe, a haircare brand she co-founded."", '""You can still go into those stores, if you choose to, and buy specific brands that you want to support.', 'And let the other things not get your money,"" she said.', 'She said if sales of Black-owned brands fall, retailers will remove them from their shelves.', '""And then what happens to all the businesses who worked so hard to get where they are?""', 'she said.', 'Handbag designer Brandon Blackwood said he worries that it will be harder for the next founder like him to get picked up by a major retailer.', 'His brand took off in 2020 during the Black Lives Matter movement, after he made a tote decorated with three words instead of a logo: ""End Systemic Racism.""', 'The bag gained traction through social media.', 'Yet he said major retailers that picked up handbags from his brand at the time, including Neiman Marcus, Bloomingdale\'s and Nordstrom, ""helped put my product in front of a lot of people that wouldn\'t necessarily have seen it.', '""""That really helped us and that really helped our brand awareness,"" he said.', 'If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.', ""For Brown Girl Jane, winning the confidence and business of major retailers — and particularly, Sephora — has been game changing, said Jones, the company's founder and CEO."", 'The brand got picked up first by Nordstrom in 2021.', ""Now, Macy's, Saks Fifth Avenue and Bloomingdale's also sell its fragrances."", 'Sephora is its the biggest wholesale deal so far: The beauty retailer carries some exclusive scents, including Carnivale, a fragrance that sells for $102 and blends together juicy mango, sandalwood and creamy vanilla.', ""Jones said the company's annual revenue is now in the $5 million to $7 million range."", ""Roughly half of the company's sales come from wholesale."", 'She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they\'ve also been ""the biggest champion and a true partner of the brand.', '""And she said that customers of all races desire her brand — and others from Black founders.', ""About 40% of Brown Girl Jane's customers are white, she said."", ""By backing away from DEI, she said companies also send a message to their buyers that casting a wide net for new brands doesn't matter."", '""It\'s one thing to say \'Ok, yeah.', 'They [buyers] can still find who they find,\'"" she said. ""', 'But we know that without intentionality, a lot of these brands are just going to be overlooked.""']",0.1672524808533432,"She described getting picked up by Sephora last year as a ""vote of confidence,"" but said they've also been ""the biggest champion and a true partner of the brand.","Some Black founders have warned against boycotting Target and other retailers that have walked back DEI efforts, saying it could further hurt Black-owned businesses.",-0.069505982539233,Brown Girl Jane's sales more than doubled after Sephora began carrying the company's fragrances online and at select stores about a year ago.,"If retailers drop supplier diversity initiatives, he said it will thin out choices for customers.",2025-02-14
Zelle payments top $1 trillion in 2024 as network's growth outpaces rivals including PayPal,https://www.cnbc.com/2025/02/12/zelle-payments-top-1-trillion-in-2024.html,2025-02-12T17:20:37+0000,"In this articleZelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.Last year's payment volumes were ""by far the most money ever moved by a P2P payments service in a single year,"" Denise Leonhard, general manager of Zelle, told CNBC.Zelle, which was launched in 2017 in response to fintech platforms such as Venmo, PayPal and CashApp, has some key advantages over those players. EWS is owned by seven of the biggest U.S. banks, including JPMorgan Chase, Bank of America and Wells Fargo, and Zelle allows for instant money transfers made within the apps of thousands of member institutions.Its growth rate last year exceeded that of PayPal, which reported that total P2P payments volumes reached more than $400 billion.Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement. The company has introduced measures to reduce fraud and has said that 99.95% of transactions are free of fraud and scams.Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.""People are using Zelle in order to do things like pay their rent or paying their nanny,"" Leonhard said. ""We want to continue to be top of mind for those consumers to be able to use this every day,"" Leonhard added.",CNBC,12/02/2025,"['In this articleZelle, the payments network run by banks-owned Early Warning Services, crossed $1 trillion in total volumes last year, which it said was the most ever for a peer-to-peer platform.', 'The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.', 'Last year\'s payment volumes were ""by far the most money ever moved by a P2P payments service in a single year,"" Denise Leonhard, general manager of Zelle, told CNBC.Zelle, which was launched in 2017 in response to fintech platforms such as Venmo, PayPal and CashApp, has some key advantages over those players.', 'EWS is owned by seven of the biggest U.S. banks, including JPMorgan Chase, Bank of America and Wells Fargo, and Zelle allows for instant money transfers made within the apps of thousands of member institutions.', 'Its growth rate last year exceeded that of PayPal, which reported that total P2P payments volumes reached more than $400 billion.', ""Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement."", 'The company has introduced measures to reduce fraud and has said that 99.95% of transactions are free of fraud and scams.', 'Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.', '""People are using Zelle in order to do things like pay their rent or paying their nanny,"" Leonhard said. ""', 'We want to continue to be top of mind for those consumers to be able to use this every day,"" Leonhard added.']",0.0115935725103827,"Growth is being driven as bank customers increasingly use Zelle instead of cash or checks, and as small businesses adopt the payment option, said Leonhard.",Zelle's meteoric rise comes amid accusations that the network and the three biggest U.S. banks on it failed to properly investigate fraud complaints or give victims reimbursement.,0.9824706486293248,"The firm said Wednesday that its user base jumped 12% to 151 million accounts in 2024, and that the total dollars sent on the platform jumped 27% from the year earlier.",,2025-02-14
"Restaurant Brands reports 2.5% same-store sales growth, fueled by Burger King and Popeyes",https://www.cnbc.com/2025/02/12/restaurant-brands-international-qsr-q4-2024-earnings.html,2025-02-12T15:39:49+0000,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.Shares of the company were roughly flat in morning trading.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier.Excluding corporate restructuring fees and other items, Restaurant Brands earned 81 cents per share.Net sales climbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year.Still, the company saw better-than-expected sales across all of its segments during the quarter.""If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,"" Restaurant Brands CEO Josh Kobza told CNBC.In the fourth quarter, McDonald's U.S. same-store sales fell 1.4%, hurt by an E. coli outbreak linked to its Quarter Pounder burgers. And Popeyes' rival KFC, which is owned by Yum Brands, reported same-store sales declines of 5% for its U.S. restaurants.Burger King, meanwhile, posted U.S. same-store sales growth of 1.5%, beating StreetAccount estimates of 0.8%.Burger King U.S. President Tom Curtis credited its Addams Family menu, timed for Halloween, and its Million Dollar Whopper promotion, which sold 1 million Whopper burgers for just $1. While the burger chain has been in turnaround mode for more than two years, its quarterly results have shown signs that the strategy has won back customers.This year, Restaurant Brands also plans to start selling off some of the restaurants it acquired through its purchase of Carrols Restaurant Group. The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines.""I think we got some really compelling value offerings into the market in [the fourth quarter], and that helped our performance, both on sales and traffic,"" Kobza said.Tim Hortons reported domestic same-store sales growth of 2.5%. The Canadian coffee chain accounts for more than 40% of Restaurant Brands' quarterly revenue.In particular, Tims saw morning sales accelerate, thanks to stronger demand for its breakfast sandwiches and wraps. Unusually warm temperatures in the fourth quarter also led to 6% growth in cold drinks, driving sales of its Iced Capps and cold brew beverages.In 2025, Restaurant Brands expects Tims to return to net unit growth, driven in part by expansion in underpenetrated rural areas and western Canada.Restaurant Brands' international restaurants saw same-store sales growth of 4.7%, beating StreetAccount estimates of 2.7%. The company credited its Burger King and Popeyes locations for fueling higher sales.The company also increased its footprint by 3.4%, adding 1,055 new restaurants from the same period a year ago.Looking to 2025, Restaurant Brands plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives.",CNBC,12/02/2025,"[""In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants."", 'Shares of the company were roughly flat in morning trading.', ""Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier."", 'Excluding corporate restructuring fees and other items, Restaurant Brands earned 81 cents per share.', 'Net salesclimbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, both which occurred last year.', 'Still, the company saw better-than-expected sales across all of its segments during the quarter.', '""If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,"" Restaurant Brands CEO Josh Kobza told CNBC.In the fourth quarter, McDonald\'s U.S. same-store sales fell 1.4%, hurt by an E. coli outbreak linked to its Quarter Pounder burgers.', ""And Popeyes' rival KFC, which is owned by Yum Brands, reported same-store sales declines of 5% for its U.S. restaurants."", 'Burger King, meanwhile, posted U.S. same-store sales growth of 1.5%, beating StreetAccount estimates of 0.8%.Burger King U.S. President Tom Curtis credited its Addams Family menu, timed for Halloween, and its Million Dollar Whopper promotion, which sold 1 million Whopper burgers for just $1.', 'While the burger chain has been in turnaround mode for more than two years, its quarterly results have shown signs that the strategy has won back customers.', 'This year, Restaurant Brands also plans to start selling off some of the restaurants it acquired through its purchase of Carrols Restaurant Group.', ""The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines."", '""I think we got some really compelling value offerings into the market in [the fourth quarter], and that helped our performance, both on sales and traffic,"" Kobza said.', 'Tim Hortons reported domestic same-store sales growth of 2.5%.', ""The Canadian coffee chain accounts for more than 40% of Restaurant Brands' quarterly revenue."", 'In particular, Tims saw morning sales accelerate, thanks to stronger demand for its breakfast sandwiches and wraps.', 'Unusually warm temperatures in the fourth quarter also led to 6% growth in cold drinks, driving sales of its Iced Capps and cold brew beverages.', 'In 2025, Restaurant Brands expects Tims to return to net unit growth, driven in part by expansion in underpenetrated rural areas and western Canada.', ""Restaurant Brands' international restaurants saw same-store sales growth of 4.7%, beating StreetAccount estimates of 2.7%."", 'The company credited its Burger King and Popeyes locations for fueling higher sales.', 'The company also increased its footprint by 3.4%, adding 1,055 new restaurants from the same period a year ago.', 'Looking to 2025, Restaurant Brands plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives.']",0.284929572244848,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.","The deal was meant to accelerate the chain's restaurant remodels, but Restaurant Brands hadn't planned to start refranchising until 2027.Popeyes' U.S. same-store sales ticked up 0.1%, reversing last quarter's declines.",0.6721012459860908,"In this articleRestaurant Brands International on Wednesday reported same-store sales growth of 2.5%, fueled by the better-than-expected performance from Burger King's and Popeyes' restaurants.","Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:The restaurant company reported fourth-quarter net income of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a year earlier.",2025-02-14
"McDonald's revenue disappoints, as U.S. sales see worst drop since pandemic",https://www.cnbc.com/2025/02/10/mcdonalds-mcd-q4-2024-earnings.html,2025-02-10T21:25:20+0000,"In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.But shares of the company rose nearly 5% as executives predicted sales would improve in 2025.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Net sales of $6.39 billion were roughly flat compared with the year-ago period. The company's overall same-store sales growth of 0.4% outperformed Wall Street's expectations of same-store sales declines of 1%, according to StreetAccount estimates.But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales. Same-store sales at the company's domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.McDonald's said traffic was slightly positive, but customers spent less than usual during the quarter. Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales. The strategy worked, helping McDonald's U.S. same-store sales tick up in the third quarter.However, analysts have warned that value meals only work if customers also add menu items that aren't discounted to their orders. McDonald's executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.The biggest hit to McDonald's U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald's switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.However, in the days following the news of the outbreak, traffic at McDonald's U.S. restaurants fell steeply, particularly in the states affected.U.S. sales hit their nadir in early November, but began rising again after that. In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.McDonald's expects its U.S. sales to recover by the beginning of the second quarter, executives said.""I think right now what we're seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,"" CEO Chris Kempczinski said on the company's conference call. ""So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year. In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.Outside the U.S., sales were stronger. Both of McDonald's international divisions reported same-store sales increases, bolstering the company's overall performance.The company's international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.McDonald's international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%. The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter. One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.McDonald's reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier.Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald's earned $2.83 per share.Looking to 2025, the first quarter is expected to be the low point for McDonald's same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors. Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.For the full year, McDonald's plans to open roughly 2,200 restaurants. About a quarter of those locations will be in the U.S. and its international operated markets. The rest will be in the company's international developmental licensed markets, including about 1,000 new restaurants in China.Including its investments in restaurant openings, McDonald's plans to spend between $3 billion and $3.2 billion this year on capital expenditures.The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.",CNBC,10/02/2025,"[""In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter."", ""But shares of the company rose nearly 5% as executives predicted sales would improve in 2025.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Net sales of $6.39 billion were roughly flat compared with the year-ago period."", ""The company's overall same-store sales growth of 0.4% outperformed Wall Street's expectations of same-store sales declines of 1%, according to StreetAccount estimates."", ""But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales."", ""Same-store sales at the company's domestic restaurants fell 1.4% in the quarter; Wall Street was projecting same-store sales declines of 0.6%.McDonald's said traffic was slightly positive, but customers spent less than usual during the quarter."", 'Over the summer, the chain rolled out a $5 combo meal to bring back price-conscious diners and reverse sluggish sales.', ""The strategy worked, helping McDonald's U.S. same-store sales tick up in the third quarter."", ""However, analysts have warned that value meals only work if customers also add menu items that aren't discounted to their orders."", ""McDonald's executives downplayed those concerns Monday, saying the average check on the $5 meal deal is more than $10.The biggest hit to McDonald's U.S. sales came in late October, when the Centers for Disease Control and Prevention linked a fatal E. coli outbreak to its Quarter Pounder burgers."", ""McDonald's switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak."", 'In early December, the CDC declared the outbreak officially over.', ""However, in the days following the news of the outbreak, traffic at McDonald's U.S. restaurants fell steeply, particularly in the states affected."", 'U.S. sales hit their nadir in early November, but began rising again after that.', 'In particular, demand for the Quarter Pounder, a popular core menu item with high margins, fell quickly in the wake of the crisis.', ""McDonald's expects its U.S. sales to recover by the beginning of the second quarter, executives said."", '""I think right now what we\'re seeing is that the E. coli impact is now just localized to the areas that had the biggest impact,"" CEO Chris Kempczinski said on the company\'s conference call. ""', 'So think about that as sort of the Rocky Mountain region that was really the epicenter of the issue.', '""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year.', 'In 2025, the burger chain plans to bring back its popular snack wraps, which vanished from menus during pandemic lockdowns, and to introduce a new chicken strip menu item.', 'Outside the U.S., sales were stronger.', ""Both of McDonald's international divisions reported same-store sales increases, bolstering the company's overall performance."", ""The company's international developmental licensed markets segment, which includes the Middle East and Japan, reported same-store sales growth of 4.1%.McDonald's international operated markets division, which includes some of its biggest markets, reported same-store sales growth of 0.1%."", 'The company said most markets reported same-store sales increases, but the United Kingdom and some other markets saw same-store sales shrink in the quarter.', 'One bright spot was France, which saw its same-store sales turn positive during the quarter after months of weak demand.', ""McDonald's reported fourth-quarter net income of $2.02 billion, or $2.80 per share, down from $2.04 billion, or $2.80 per share, a year earlier."", ""Excluding gains tied to the sale of its South Korean business, transaction costs for buying its Israeli franchise and other items, McDonald's earned $2.83 per share."", ""Looking to 2025, the first quarter is expected to be the low point for McDonald's same-store sales, CFO Ian Borden said, citing a weak start to the year in the U.S., among other factors."", 'Winter storms and wildfires in California weighed on restaurant traffic across the industry in January.', ""For the full year, McDonald's plans to open roughly 2,200 restaurants."", 'About a quarter of those locations will be in the U.S. and its international operated markets.', ""The rest will be in the company's international developmental licensed markets, including about 1,000 new restaurants in China."", ""Including its investments in restaurant openings, McDonald's plans to spend between $3 billion and $3.2 billion this year on capital expenditures."", 'The company is also projecting a headwind of 20 cents to 30 cents per share to its full-year earnings due to foreign currency exchange rates.']",0.0983895484675885,"""The company hopes value deals, along with key menu additions, will help to fuel the recovery this year.","In this articleMcDonald's on Monday reported disappointing quarterly revenue, dragged down by weaker-than-expected sales at its U.S. restaurants following an E. coli outbreak just weeks into the quarter.",0.0441114202789638,"Outside the U.S., sales were stronger.",But McDonald's U.S. business reported a steeper-than-expected drop in its same-store sales.,2025-02-14