Raphael Stevens

Florida’s Republican-dominated Legislature is set to adjourn after sending major, agenda-setting bills to the desk of GOP Gov. Ron DeSantis.
DeSantis, former President Donald Trump’s top rival for the 2024 nomination, is expected to reveal his political plans after the session adjourns.
The governor has leaned into divisive social issues, passing conservative-friendly bills on abortion, guns and school vouchers.

Florida Governor Ron DeSantis speaks at a conference titled Celebrate the Faces of Israel, Museum of Tolerance Jerusalem, April 27, 2023.
Maya Alleruzzo | AFP | Getty Images

Florida’s legislative session is set to end Friday, capping a 60-day Republican blitz to send major bills to Gov. Ron DeSantis as he sets the tone for his anticipated presidential campaign announcement.
DeSantis, who is widely seen as former President Donald Trump’s top rival for the 2024 Republican nomination, has long been expected to reveal his political plans after the session adjourns. He could announce a presidential exploratory committee as soon as mid-May, NBC News reported last week.

If he enters the race, DeSantis will ride into the presidential fray on a wave of new state policy that enacts much of the governor’s conservative wish list.
Florida’s GOP supermajorities in the House and Senate largely made good on their promise to get DeSantis’ agenda “across the finish line,” passing bills on issues ranging from abortion to guns to school vouchers.
The Legislature leaned into polarizing cultural fights that have helped elevate the governor nationally, bolstering his efforts to craft an image of a leader who takes on hot-button topics and delivers conservative outcomes. Measures such as the restrictive abortion law DeSantis signed could help him in a GOP primary, but may reduce his appeal in a general election.
Lawmakers have also passed multiple measures that could help clear DeSantis’ path to the White House, if and when he decides to run.
The Legislature voted last week to carve out a DeSantis-shaped exemption to the state’s “Resign-to-Run” law, by allowing candidates for president or vice president to run without giving up their jobs in Florida. Another measure effectively shields DeSantis’ travel records from public view.

“The entire session was focused on Governor DeSantis’ run for president,” said Jim Clark, a University of Central Florida senior lecturer and political commentator, in an interview. “The legislature gave him 99% of what he wanted.”
While a Republican trifecta has empowered DeSantis in Florida, he has come under heavy fire from Trump and appears to be trending lower in polls of the possible primary field, raising questions about his appeal outside his state.
“It seems to me that the more the voters get to know Ron DeSantis, the more problems he has,” Clark said.
The 2024 contest is in its early stages, as more candidates trickle into the primary months before the first Republican debate. DeSantis also holds a major fundraising edge over most of his potential opponents, and some big names on Wall Street are considering backing the governor if he runs.

‘Full steam ahead’

Republicans gained two-thirds majorities in Florida’s House and Senate in the November midterm elections, when Democrats broadly underperformed across the state. With the Legislature and governor’s mansion in political alignment and facing few obstacles, state lawmakers churned through legislation with unprecedented speed.
“Once it was gaveled in, it was full steam ahead,” veteran Florida political analyst Susan MacManus told CNBC.
DeSantis, in turn, quickly signed many of his priorities into law, all while he released a biographical book and toured the country in early steps toward a presidential run.
Among the most controversial new Florida laws is a ban on most abortions after six weeks of pregnancy, which will not take effect until after a previous 15-week ban is resolved in the courts.
The move ensures abortion, a top issue in the last election cycle after the Supreme Court overturned Roe v. Wade, will again be front and center in the 2024 presidential race. President Joe Biden in his reelection campaign launch railed against Trump-aligned “extremists” trying to control “what health care decisions women can make,” while Republican contender Nikki Haley called for “consensus” in an abortion-focused stump speech.
DeSantis also signed legislation allowing Floridians to carry concealed weapons without a permit. He signed both the abortion and gun bills with little fanfare in private settings, facts that critics have noted as they highlight the lack of support for both measures in polls.
On top of those issues, DeSantis in March waded into the “school choice” debate by signing a bill expanding Florida’s school voucher system. Supporters of school-choice initiatives say they give some students needed educational options, while critics say they hurt public schools. Vouchers are just one front in a wide-ranging battle about parents’ and children’s rights that also encompasses school curricula and LGBTQ+ issues.
MacManus said she expects that battle will be a major theme of the 2024 election.
Separately, DeSantis on Monday signed a bill making child rapists eligible for the death penalty. He vowed to defend the law up to the Supreme Court, which had banned capital punishment in such cases.
A day later, he signed a measure restricting state and local entities from giving preference to the investing movement known as ESG. The nascent campaign, which broadly refers to investing strategies that prioritize environmental, social and governance factors, has become a target for conservative critics alleging progressive overreach by major corporations.
The supermajority’s full-court press to pass legislation from the opening gavel to the end of the session may be unusual, but it’s not surprising, MacManus said.
“You have to strike while the iron’s hot and that’s why elections matter,” she said.
“Democrats are well aware that their inability to make improvements in their representation in the legislature now [is] coming home to haunt them,” MacManus added.

Walt Disney War

GOP lawmakers have also backed DeSantis in his protracted fight with Walt Disney Co. stemming from the law that critics have dubbed “Don’t Say Gay.” The governor’s feud with one of his state’s largest employers has presidential undertones, as Republicans increasingly seek political appeal by targeting companies that take stances on social issues.
The battle began more than one year ago when Disney, under pressure from activists and many of its own employees, opposed the bill, which limits classroom discussion about sexual orientation and gender ideology.
Soon after, DeSantis and his allies moved to dissolve the decades-old special tax district that had allowed Disney’s Orlando-area parks to essentially govern themselves. The governor’s actions stoked fears residents of the neighboring counties could be on the hook for a massive bill.
In February, lawmakers approved a new plan that left the district largely intact, but allowed DeSantis to handpick its board of supervisors. But the new board complained before they were seated, Disney struck a development agreement that effectively thwarted their power.
The governor’s board members then voted to undo Disney’s deal, alleging it was unlawful. Disney sued DeSantis and the board in federal court, accusing the governor of orchestrating a campaign of political retribution against the company for its speech. The board countersued in state court days later.
DeSantis’ possible GOP primary rivals have taken shots at the governor over his fixation on Disney, especially as the imbroglio drags into the courts. Some other Republicans have questioned the governor’s tactics. “I think it’d be much better if you sat down and solved the problems,” House Speaker Kevin McCarthy, R-Calif., told CNBC’s “Squawk Box” last week.
DeSantis’ side seems undeterred. GOP legislators passed measures as recently as this week that single out Walt Disney World and further flex the state’s power over the company.
On Wednesday, Republican lawmakers passed a bill that would void Disney’s development agreement. DeSantis is expected to sign it into law.
The Legislature also passed a measure that would have the state transportation department conduct inspections of Walt Disney World’s monorails.
Earlier this month, the state education board approved an expansion of the controversial classroom bill at the root of the spat with Disney. The new rules extend the ban on classroom instruction of sexual orientation to high school grades.
“This bill is not really about protecting children and educators. This bill is about discrimination against people who are different than you are,” the state Senate’s leading Democrat, Lauren Book, said of the bill she called “Don’t Say Gay 2.0.”
DeSantis is leaning further into measures that have angered LGBTQ+ activists. He is also likely to sign just-passed bills targeting college diversity programs and limiting the use of preferred pronouns in schools. State Republicans have also approved a bill that would make it an offense for people to use certain bathrooms that don’t match their sex at birth. Transgender activists say the bill, dubbed the “Safety in Private Spaces Act,” puts them in danger.
It continues a trend for DeSantis, whose willingness to wield his power for right-wing cultural causes has made him a Republican darling and top name in the presidential rumor mill. His moves could play well in a Republican primary, where candidates will likely spar over who has the most conservative record on those issues.

Teeing off?

DeSantis’ agenda was stymied on a few key issues.
Legislation that would have weakened media protections against defamation claims was apparently shelved in what was seen as a blow to the governor. A bill that would lower the minimum rifle-buying age to 18 passed in the state House, but faced opposition from the Republican Senate president, Kathleen Passidomo.
DeSantis has nevertheless racked up a long list of political accomplishments in a condensed period, potentially giving him a firmer footing from which to launch a presidential bid. MacManus said if the Legislature’s goal was to help DeSantis tee up a White House bid, it did its job.
Yet, it isn’t clear if DeSantis is better positioned for a presidential run than he was 60 days ago.
In addition to passing his conservative-friendly agenda, the governor recently embarked on a campaign-style book tour touting his wins, released glossy videos hyping his state’s “blueprint” for success and even went overseas to meet with world leaders.
But his polling gap with Trump, the current frontrunner for the 2024 nomination, has never been wider, according to FiveThirtyEight’s primary polling tracker. The pugilistic ex-president has homed in on DeSantis as his top rival and has spent weeks lambasting the governor on everything from his record in office to his personality. DeSantis has been less willing to strike back at Trump, who remains the Republican Party’s de facto leader and commands loyalty from a large swath of its voters.
“This is really strange,” Clark said. “We’re talking about a man who won 60% of the vote in Florida, and yet outside of Florida has had trouble connecting with people.”
Clark said the situation put him in mind of a classic episode of the long-running cartoon “The Simpsons,” where Homer Simpson becomes a beloved mascot for his town’s baseball team. He’s then recruited as the mascot for a much larger city’s team, but his antics fall flat on the bigger stage.
“I keep thinking on that,” Clark said. More

CNN CEO Chris Licht said last year he won’t allow CNN guests and panelists to push disinformation.
Former President Donald Trump will participate in a town hall on the network Wednesday.
It will be CNN host Kaitlan Collins’ job to push back against Trump if he attempts to push false narratives.

U.S. President Donald Trump looks on during a commercial break during a live one-hour NBC News town hall forum with a group of Florida voters in Miami, Florida, U.S., October 15, 2020.
Carlos Barria | Reuters

When Chris Licht took over as CNN’s chief executive last year, he made a promise to viewers.
“The analogy I love to use is some people like rain, some people don’t like rain. We should give space to that. But we will not have someone who comes on and says it’s not raining,” Licht said in an October interview with CNBC.

Licht was talking about CNN guests and panelists pushing disinformation, such as election fraud lies, when he made the comment.
On Wednesday, CNN will welcome former President Donald Trump to participate in a town hall. This seems to be a case of Licht bending his own rules. Clearly, CNN has different standards for Trump than it does spokespeople for Trump that cycle through cable news networks as daily guests.
Trump has repeatedly made false claims that the 2020 election was stolen from him. Hundreds of his supporters violently stormed the U.S. Capitol on Jan. 6, 2021 to prevent Congress from confirming Joe Biden’s victory after Trump told them in a speech “if you don’t fight like hell, you’re not going to have a country anymore.”
CNN vowed to hold Trump accountable during the town hall.
“President Trump is the Republican frontrunner, and our job despite his unique circumstances is to do what we do best,” a CNN spokesperson said. “Ask tough questions, follow up, and hold him accountable to give voters the information they need to sort through their choices.”

Inviting Trump to CNN

Warner Bros. Discovery CEO David Zaslav and board member John Malone have been open about their beliefs that CNN should be less of an “advocacy network” and more of a down-the-middle news network than what they considered it to be when Jeff Zucker was in charge during Trump’s years as president.
“He should be,” Zaslav said Friday on CNBC’s “Squawk Box” when he was asked about having Trump on for the town hall. “He’s the Republican frontrunner. He has to be on.”
CNN is opting for a live town hall rather than a taped interview with Trump that could then be fact checked before airing. That would be a safer way to proceed, but the live town hall is likely to bring higher ratings to CNN, which has been hemorrhaging viewers amid programming changes.
Trump heavily skewed his media appearances toward Republican-leaning Fox News during his presidency. He did take part in an NBC Town Hall, hosted by Savannah Guthrie, in Oct. 2020.
CNN is taking notes from that event as it prepares for Trump, according to people familiar with the matter. Guthrie consistently challenged Trump on his proclivity to push false information, telling him at one point, “You’re the president, you’re not, like, someone’s crazy uncle.”
The CNN Town Hall will be hosted by Kaitlan Collins, who co-anchors CNN’s new morning show. Collins served as CNN’s chief White House correspondent during the Trump administration. 
“We have divided government. We need to hear both voices,” Zaslav said on CNBC Friday. “Republicans are on air on CNN, and Democrats are on air on CNN. All voices should be heard on CNN.”
WATCH: CNBC’s full interview with Warner Bros. Discovery CEO David Zaslav More

Wholesale used vehicle prices declined last month for the first time this year.
Cox Automotive reported a 3% decline from March to April in its Manheim Used Vehicle Value Index.
Further declines could help bring used vehicle pricing down for consumers, since retail prices traditionally follow changes in wholesale prices.

A used car dealership is seen in Annapolis, Maryland on May 27, 2021, as many car dealerships across the country are running low on new vehicles as a computer chip shortage has caused production at many vehicle manufactures to nearly stop.
Jim Watson | AFP | Getty Images

DETROIT – Wholesale used vehicle prices declined last month for the first time this year, as automakers increase production of new cars and trucks.
Cox Automotive reported Friday a 3% decline from March to April in its Manheim Used Vehicle Value Index, although levels remain elevated compared with historical figures.

The index, which tracks vehicles sold at its U.S. wholesale auctions, is still up 5.2% from December but is down 4.4% from April 2022.

“We’ve experienced eight straight months of year-over-year declines, averaging 8.3%, and it’s likely not over yet,” Chris Frey, Cox senior manager of economic and industry insights, said in a release.
Used vehicle prices have been elevated since the start of the coronavirus pandemic, as the global health crisis combined with supply chain issues caused production of new vehicles to sporadically idle. That led to a low supply of new vehicles and record-high prices amid resilient demand. The costs and scarcity of inventory led consumers to buy used vehicles, increasing those prices as well.
Further declines could help bring used vehicle pricing down for consumers, since retail prices traditionally follow changes in wholesale prices.
Cox reports the average listed price of a used vehicle was $26,086 in February, the most recent data available, down slightly from January.

“Prices have been falling, but the tight supply might be providing some price support,” said Charlie Chesbrough, Cox senior economist. “Used prices may fall further, but it seems unlikely a massive decline will happen given the supply situation.”
Used vehicle prices have increasingly become a point of interest for investors and the Biden administration as a barometer for easing inflation. The administration early last year blamed much of the rising inflation rates in the country on the used vehicle market. 
Correction: Cox Automotive reported Friday a 3% decline from March to April in its Manheim Used Vehicle Value Index. An earlier version misstated the name of the index. More

Kenvue CEO Thibaut Mongon is betting on brand and product innovation to drive growth after its solid debut on the public market Thursday. 
Kenvue, J&J’s consumer health business spinoff, has an impressive portfolio of brands, which includes Band-Aid, Tylenol and Neutrogena.
But Mongon tells CNBC it has “ample opportunity” to grow. 

Thibaut Mongon, CEO of Kenvue Inc. a Johnson & Johnson consumer-health business, speaks during an interview with CNBC during his company’s IPO at the New York Stock Exchange (NYSE), May 4, 2023.
Brendan McDermid | Reuters

Kenvue CEO Thibaut Mongon is betting on brand and product innovation to drive growth at the newly spun-out company after its solid debut on the public market Thursday. 
“In the next quarter and frankly, in the years to come, we are going to continue to do what we do best, which is innovating to find new ways to serve consumers and help them take better care of their health,” Mongon told CNBC in an interview shortly after shares of Kenvue started trading on the New York Stock Exchange.  

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Shares of the company gained 22% Thursday to close at $26.90 per share. The stock hovered around that level in early trading Friday, giving the company a market value of roughly $50 billion. 
Kenvue, spun out of Johnson & Johnson, carries a packed portfolio of widely known brands, such as Band-Aid, Tylenol, Listerine, Neutrogena, Aveeno and J&J’s namesake baby powder.
Ten of Kenvue’s brands booked approximately $400 million or more in sales last year, according to a preliminary prospectus the company filed with the Securities and Exchange Commission last week.
But Mongon told CNBC that Kenvue’s portfolio of brands has “ample opportunity” to grow.
The company’s plans for product innovation involve new science and technologies to develop new products that meet the specific needs of consumers in a way that hasn’t been done before, according to Mongon.

Kenvue has a team of around 1,500 research and development professionals who identify new ways to enhance a given product.
Mongon believes product innovation ultimately makes Kenvue’s brands “more relevant than ever” to consumers as they better target their needs.
“There is no limit for you to take care of your health in a better way and there is no limit for us to invent products and solutions to help you do that,” Mongon told CNBC. 
As an example, Mongon pointed to a sunscreen launched under the Neutrogena brand. The company designed the product, Neutrogena Invisible, to blend into the skin without creating the unflattering chalky white residue most sunscreens leave behind, eliminating a consumer pain point for applying the protection.
As a result, Mongon said, that product could reach consumers who may not regularly use traditional sunscreen.
“That’s our contribution to the world. To provide these consumers with a solution: Strong sun protection but also great aesthetics,” Mongon said. “That should make more people use sunscreen on a regular basis, which we know is so important for the skin.” 
The company has launched more than 100 new product innovations each year since 2020, according to the company’s prospectus. Product innovations launched during the last three years have accounted for around $1.5 billion of Kenvue’s net sales, the company said in its filing.
Mongon said the company will “keep pushing the envelope” to launch new products in the upcoming years. 

Brand innovation

Kenvue will use a “digital-first approach” to deliver more personalized experiences with the company’s brands, according to Mongon. That includes new e-commerce and direct-to-consumer services.
The brand Zyrtec, for example, has its own allergy forecast app called “AllergyCast.” Zyrtec is a drug designed to relieve allergy symptoms such as watery eyes, runny nose, sneezing and itching. 
Mongon said Kenvue designed the app to help consumers manage their allergies, allowing them to track pollen levels and their allergy symptoms. The app can ultimately predict how severe a given consumer’s allergies will be based on their location, weather conditions and symptom history.
“You will receive messages that allow you to understand and manage your symptoms better,” Mongon told CNBC. “That’s part of the innovation that we focus on at Kenvue.”
Kenvue also designed the “SmartCheck” digital ear scope under the brand Tylenol, a medicine that reduces fever and treats minor aches and pains. 
SmartCheck is a personal ear scope device and app that turns a smartphone into an otoscope, which is used to look into ears. The app allows users to take a recording of a child’s potentially infected eardrum and send it to a healthcare provider or telehealth service for diagnosis.
But Kenvue noted in the preliminary prospectus that continuing to expand service and product offerings through “digital initiatives” may expose the company to additional risks, including potential technical failures, cybersecurity incidents and consumer privacy and data protection concerns.

M&A isn’t ruled out

When asked about the potential for mergers and acquisitions, Mongon said Kenvue is primarily focused on organic growth. 
But he said the company isn’t completely ruling out M&A in the future. 
He noted that Kenuve has a strong track record of identifying the right brands in the market that could complement the company’s portfolio in a positive way.
“If we see an opportunity that makes sense strategically and financially we will move thanks to the healthy balance sheets that we have,” Mongon said. 
Kenvu recorded total assets of more than $27 billion as of Jan. 1, on a pro forma basis, excluding the impact of the costs associated with the public offering, and total liabilities of roughly $16 billion.
The company recorded total debt of around $9 billion as of the start of the year.
Kenvue raked in $14.95 billion in sales for 2022 and a net income of $1.46 billion on a pro forma basis, according to the preliminary prospectus. 
Kenvue trades under the stock ticker “KVUE.”  More

Warner Bros. Discovery reported quarterly revenue in line with estimates.
The company posted a big loss, despite its streaming business turning a profit of $50 million for the quarter.
Warner Bros. Discovery expects the streaming business to be profitable this year, earlier than expected.

Pavlo Gonchar | Lightrocket | Getty Images

Warner Bros. Discovery reported a big quarterly loss even as its U.S. direct-to-consumer segment turned a profit for the first time ever.
The company also expects the DTC, or streaming, business to be profitable for 2023 in the U.S., a year ahead of its expectations, CEO David Zaslav said in an earnings release Friday morning.

First-quarter revenue was $10.7 billion, roughly in line with analysts’ estimates. The company reported a net loss of $1.1 billion and adjusted EBITDA of $2.6 billion.
Here’s what the company reported, versus analysts’ estimates, according to Refinitiv:

Revenue: $10.7 billion vs. $10.78 billion expected
Loss per share: 44 cents vs. earnings of 1 cent expected

Warner Bros. Discovery’s stock fell more than 4% in premarket trading after dropping nearly 4% on Thursday.
Like all major media companies, Warner Bros. Discovery is pivoting to streaming video as millions of Americans cancel traditional pay TV each year. The company ended the quarter with 97.6 million streaming subscribers, up 1.6 million from last quarter.
The direct-to-consumer segment turned a profit of $50 million for the quarter.

Warner Bros. Discovery is adding Discovery+ content to HBO Max and relaunching the service as Max in the U.S. later this month. Zaslav had previously promised its streaming business will be break-even by 2024 and profitable by 2025. Zaslav has aggressively cut back on content spending, including eliminating shows and movies from Max, to jump-start efforts to make the business profitable.
“We have a great product that’s going to be profitable for the year now,” Zaslav said on an earnings conference call. Zaslav noted the company also has news and sports that it hasn’t yet added to Max. Warner Bros. Discovery will be “disciplined” in its talks to renew National Basketball Association rights, Zaslav added.

David Zaslav, President and CEO of Warner Bros. Discovery talks to the media as he arrives at the Sun Valley Resort for the Allen & Company Sun Valley Conference on July 05, 2022 in Sun Valley, Idaho.
Kevin Dietsch | Getty Images

“We have a great diversity of assets,” Zaslav said. “We’ve restructured this company now and are really tight. The environment is challenged, challenged, challenged, but as things start to pick up, you’re going to see a very quick turn at this company.”
Warner Bros. Discovery lost $930 million in free cash flow in the quarter, largely due to interest and sports media rights payments.
The company ended the fourth quarter with $49.5 billion in debt on its balance sheet, and $2.6 billion in cash on hand. Warner Bros. Discovery is attempting to boost free cash flow by cutting back on spending, including laying off thousands of employees last year, to reduce its hefty debt load.
This is a developing story. Check back for updates.
WATCH: Warner Bros. Discovery CEO David Zaslav speaks to CNBC after unveiling ‘Max’ More