Raphael Stevens

More stories

  • 163 Shares159 Views

    in Business

    Airlines divert, cancel more Middle East flights after Iran attacks U.S. military base

    Airlines diverted more flights in the Middle East on Monday after Iran’s attack on a U.S. military base in Qatar.
    Airspace was temporarily closed in Qatar and reportedly shut in Bahrain and the United Arab Emirates.
    Airlines have paused some of their Middle East service or offered customers vouchers to change their flights or cancel them altogether.

    Airspace over the Middle East on Monday afternoon EDT, according to FlightRadar24.
    Courtesy: Flightradar24

    Airlines diverted more flights in the Middle East on Monday after Iran’s armed forces said the country launched a missile strike on a U.S. military base in Qatar, as the region’s military conflict continued to disrupt flights.
    More than 20 commercial aircraft bound for Doha, Qatar, diverted, while another four heading to Dubai in the United Arab Emirates turned around, according to aviation data firm Cirium. Meanwhile, flight-tracking platform Flightradar24 said airspace over the UAE was temporarily closed. Reuters reported that the island nation of Bahrain also closed its airspace temporarily.

    Dubai-based Emirates said that some of its aircraft rerouted on Monday and told customers that some delays or longer flights are possible as it will operate its schedule as planned but with “flight paths well distanced from conflict areas.”
    Air India said it has halted all flights in and out of the region and to and from the east coast of North America and Europe “until further notice.”
    “Our India-bound flights from North America are diverting back to their respective origins and others are being diverted back to India or re-routed away from the closed airspaces,” Air India said in a post on X. “We request the understanding of all passengers who may be affected by this disruption that’s beyond an airline’s control.”
    The carrier had previously announced some schedule cuts for enhanced safety checks after the deadly crash of one of its Boeing 787s shortly after takeoff from Ahmedabad in western India earlier this month. The cause of that crash is still under investigation.
    British Airways said Monday it is canceling its Doha flights through Wednesday “following the latest developments.”

    “Safety is always our highest priority,” it said. “We are contacting our customers to advise them of their options and will keep the situation under review.”

    Flight patterns over United Arad Emirates.
    Courtesy: Flightradar24

    Earlier, major international airlines including Air France, Iberia, Finnair and others announced they would pause or further postpone a resumption of service to some destinations in the Middle East.
    American Airlines had previously suspended its flights to Doha, and United Airlines had paused service to Dubai.
    U.S. carriers had also suspended their Israel service after that country’s strike on Iran earlier this month.
    The conflict in the Middle East has added to complications for airlines that have been dealing with restricted airspace since the Ukraine war began in 2022 and Russian airspace closed for many carriers.
    Carriers have been periodically skirting parts of the Middle East because of security concerns, but closed airspace means longer, more expensive routes that require more fuel.

    Don’t miss these insights from CNBC PRO More

  • 113 Shares119 Views

    in Business

    How Fanatics is teaching business acumen to pro athletes

    More than two dozen NBA, NFL and NHL players participated in Fanatics’ Athlete Immersion Program this past weekend.
    Athletes met with prominent CEOs and business leaders to learn about business, entrepreneurship, tech and more.
    It’s an experience similar to a business school with lectures, case studies and projects and is meant to be a continuous learning opportunity through which players receive support, education and networking opportunities.

    Fanatics logo is seen on the dugout wall before the game between the Pittsburgh Pirates and the Milwaukee Brewers at PNC Park on July 3, 2022 in Pittsburgh, Pennsylvania. (Photo by Justin Berl/Getty Images)
    Justin Berl | Getty Images

    Sports merchandising giant Fanatics is aiming to build a training camp for athletes to prepare them for life off the field.
    More than two dozen NBA, NFL and NHL players participated in the company’s Athlete Immersion Program this past weekend as part of Fanatics Fest in New York City. The program included three days of workshops on business, entrepreneurship, tech and more.

    “This definitely opened my eyes,” said Cole Anthony, a guard for the NBA’s Memphis Grizzlies. “I’m already trying to do things on the business side with my partners, my family. It just motivates me more.”
    The “coaches” for the business boot camp included Fanatics founder Michael Rubin, Goldman Sachs CEO David Solomon, Apollo Global cofounder and Philadelphia 76ers managing partner Josh Harris, Raising Cane’s founder Todd Graves, ESPN Chairman Jimmy Pitaro and Boardroom cofounder and CEO Rich Kleiman.
    Aaron Donald, who retired from the NFL’s Los Angeles Rams in 2024 after winning the Super Bowl, has already begun a new career in business, including an ownership stake in sports nutrition company Ready. But Donald, likely a future Hall of Famer, said he was blown away by the all-star team of business leaders.

    Former Los Angeles Rams defensive lineman Aaron Donald arrives to the stadium prior to an NFC Wild Card game against the Minnesota Vikings, at State Farm Stadium on January 13, 2025 in Glendale, Arizona.
    Brooke Sutton | Getty Images

    “I think it’s one of hell of an opportunity,” said Donald. “I’m in a room with guys running companies worth billions of dollars. How many opportunities are you going to get to do that? You have to take advantage of all of those opportunities and knowledge.”

    From big leagues to big business  

    Fanatics launched the Athlete Immersion Program in 2023 and this year is partnering with Boardroom, a media and advisory company cofounded by Kleiman and NBA superstar Kevin Durant.

    “I think it’s great to be able to give them a bit of a blueprint,” said Kleiman. “Being able to put them in the room with people that have the answers, that have done it, that lead industries. I think you get so much power and opportunity just from the information you get from watching, from learning and from being in these rooms and understanding how to move.”
    Kleiman pointed to former NBA player Junior Bridgeman, who made less than $3 million during his 12-year career in the league, but built a net worth of more than $1 billion after retirement primarily through investments in Wendy’s, Pizza Hut and Chili’s franchises and then later through Coca-Cola distribution.
    “What he did, he’s exceptional,” said Kleiman of Bridgeman, who died in March. “He wasn’t just a name. He actually built an operational team, built them up, oversaw them, and he was a tycoon of a business mind.”
    Fanatics Chief People Officer Toretha McGuire said the program is focused on helping athletes use their playing days, what they describe as their “1.0 career” to fuel their “2.0 career.”
    It’s an experience similar to a business school with lectures, case studies and projects, in which each athlete creates their own limited-edition clothing line with vintage sports apparel company Mitchell & Ness, a subsidiary of Fanatics.
    “They go through a base business case, we teach them business fundamentals, we take them through the Fanatics business case where we bring them to 2021 where Michael [Rubin] did a final capital raise and we basically say, ‘What would you have done?'” McGuire said.
    Most professional athletes retire from playing when they’re still young, she added.
    “The opportunities they have in their 1.0 careers in terms of access and expanding their networks are going to be very critical,” she said.
    Graves, who founded the popular fried chicken chain Raising Cane’s, spoke on a panel about the realities and challenges of entrepreneurship
    “If you absolutely want to start a business, imagine how hard it is, multiply that by infinity to be able to make it work,” he said. “You have to be passionate, you have to be in the details 100%. And you have to know what you don’t know, right? So that is bringing in great people to try and grow it.”

    Aspirations after athletics

    The Athlete Immersion Program is meant to be a continuous learning opportunity through which players receive support, education and networking opportunities from Fanatics and Boardroom before and after they begin their business journey.
    The next session will be held in December for WNBA, NWSL and MLB athletes in the offseason.
    For Anthony, who was recently traded to the Grizzlies from the Orlando Magic, it’s also shown him the real parallels between competing in sports and competing in business.
    “The common thing with everyone who has spoken to us and I’ve been able to talk to one-on-one is that every person I met here has been a grinder,” he said. “They make whatever it is they are passionate about, or what they are working on their priority. I think that’s just dope to hear from other people I can relate to in that sense.”

    Cole Anthony #50 of the Orlando Magic dribbles the ball during the game against the Boston Celtics during Round 1 Game 5 of the 2025 NBA Playoffs on April 29, 2025 at TD Garden in Boston, Massachusetts.
    Brian Babineau | National Basketball Association | Getty Images

    A decade ago, reports suggested 16% of NFL players ultimately filed for bankruptcy — a sign of the type of financial strain many professional athletes face and a cautionary tale of life after the game.
    But today, many of the people participating in the Fanatics curriculum believe opportunities like the Athlete Immersion Program can change the narrative — and their financial future.
    For Donald, who will be remembered as one of the greatest defenders in NFL history, the focus now is finding the greatest opportunities for the next chapter of his life.
    “It would be silly for me to stop the hard work, discipline, the structure that got me to a certain point,” he said. “I’m trying to build generational wealth for my kids.” More

  • 175 Shares159 Views

    in Finance

    Fed Chair Powell speaks on Capitol Hill this week with politics front and center

    Federal Reserve Chair Jerome Powell heads to Capitol Hill this week, with testimony to Congress kicking off Tuesday morning as Powell presents the Fed’s monetary policy report.
    Multiple White House officials have cranked up the heat on Powell to start lowering rates, and he’s now faced with two key Fed officials who have spoken out to say they could favor a cut in July.

    Federal Reserve Chairman Jerome Powell speaks at a news conference on June 18, 2025, in Washington DC, United States.
    Yasin Ozturk | Anadolu | Getty Images

    Federal Reserve Chair Jerome Powell heads to Capitol Hill this week, facing increasing pressure both from outside and inside the central bank to start the push for lower interest rates.
    Powell’s semiannual testimony to Congress kicks off Tuesday morning, as the central bank leader presents the Fed’s monetary policy report to the House Financial Services Committee. He then heads to the Senate Banking Committee on Wednesday.

    Generally, the congressionally mandated sessions allow the Fed chair to drop some basic comments about the state of the economy and monetary policy. Legislators then get a chance to ask questions, which occasionally can turn hostile but are rarely anything severe.
    But the backdrop to this appearance is different: Not only President Donald Trump but also multiple White House officials have cranked up the heat on Powell to start lowering rates, and now he’s faced with two key Fed officials who have spoken out in recent days to say they likely will favor a cut as soon as July.
    That combination of factors has Wall Street buzzing with the possibility that the normally politics-free Federal Open Market Committee is now seeing some of its protective cover erode.

    “There’s some political influence starting to come into the FOMC,” Mohamed El-Erian, chief economic advisor at Allianz, said Monday on CNBC.
    El-Erian’s comments came shortly after Fed Governor Michelle Bowman said during a speech in Prague that she could see a case for starting to ease policy next month so long as inflation data stays in line.

    Coupled with similar remarks Friday on CNBC from Governor Christopher Waller, there would appear to be at least some pushback against Powell’s repeated statements last week that policy is well-positioned for a more patient approach as tariff impacts play out.
    What’s more, Waller and Bowman both are Trump appointees dating from his first term in office, and both have been mentioned as potential candidates to succeed Powell next year.
    “Now suddenly we’ve had two Republican-leaning governors who came out with this notion of July, and they’ve moved the market,” El-Erian said. “What I do know is that Jay Powell is going to have a lot of difficulty trying to get everybody unified on a message.”
    Indeed, traders have upped the odds of a July cut to about 23%, and a much more definitive 82% behind a September move, according to the CME Group’s FedWatch gauge of futures pricing.
    More immediately, Powell could have a contentious two days ahead of him as he tries to explain the Fed’s position in the face of what could be some antagonism on both side of the congressional aisle. Following Trump’s lead, Republicans are likely to quiz Powell on what the hold-up is for easier monetary policy, while liberal Sen. Elizabeth Warren (D-Mass.) has been urging Powell to cut as well.
    The trouble with Trump’s call
    However, Trump’s desire for dramatic cuts — he has suggested at least 2 percentage points’ worth — are unlikely to materialize, either.
    In his CNBC interview, Waller said he wants to “start slow” with cutting. At last week’s FOMC meeting, participants suggested that the end point, or terminal rate, for the fed funds rate would be around 3%, which is just 1.25 percentage points below the current level.
    Beyond that, such dramatic moves could be counterproductive.
    When the Fed cut by a full percentage point from September through December of last year, Treasury yields actually moved higher, almost in tandem with the reductions, as bond market investors priced in the potential for faster economic growth and higher inflation.
    “The idea that the Fed does something and there’s immediate transmission and everything works exactly the way it’s supposed to work is just a myth,” said Jai Kedia, a research fellow at the Cato Institute, a libertarian think tank. “You know, people way overvalue the Fed’s effect on the economy, especially in an immediate kind of manner.”
    Nevertheless, the administration is demanding immediate action from Powell, notwithstanding that the chair is just one of 12 voters on the committee that sets interest rates.
    Bill Pulte, director of the Federal Housing Finance Agency, posted Monday on X that momentum is “building for Powell’s immediate resignation” — which Trump has not called for — adding that “it is clear that Powell’s political bias against our great President needs to be looked at.”
    The Fed’s mission
    Kedia, though, said the White House’s demand for dramatic action from the Fed is irresponsible.
    For one, he said reducing federal borrowing costs isn’t the Fed’s job.
    “The Fed’s mandate is actually to stabilize inflation and stabilize employment,” Kedia said. “We can debate whether it should have that mandate, or how successful it’s been in doing that, but if you put it in charge of the federal debt, you may as well kiss that mandate goodbye.”
    Like El-Erian, Kedia does believe the Fed could start cutting rates, though market pricing favors September rather than July for the first move. FOMC members were split at last week’s meeting over the path and extent of cuts.
    Kedia said that if Powell and the rest of the FOMC consider following a course that Trump is trying to push, it risks losing the economy as well as its reputation.
    “Now I do think that the rates are slightly too high, but the reason to cut rates is basically if you’re following a monetary policy rule, or you’re looking at guidance from the macro economy, none of which will tell you that you have to reduce rates by as much as President Trump wants them to be reduced by,” he said. “A good economic case can be made that the Fed should cut rates, but that’s got nothing to do with the political aspect.” More

  • 163 Shares169 Views

    in Business

    Major U.S. health insurers say they will streamline controversial process for approving care

    Health plans under major U.S. insurers said they have voluntarily agreed to speed up and reduce prior authorizations – a process that is often a major pain point for patients and providers for getting and providing care. 
    Prior authorization makes providers obtain approval from a patient’s insurance company before administering specific services or treatments.
    Insurers such as CVS Health, UnitedHealthcare and Cigna will implement the changes across commercial plans and certain Medicare and Medicaid plans, benefiting 257 million Americans.

    UnitedHealthcare signage is displayed on an office building in Phoenix, Arizona, on July 19, 2023.
    Patrick T. Fallon | Afp | Getty Images

    Health plans under major U.S. insurers said Monday they have voluntarily agreed to speed up and reduce prior authorizations – a process that is often a major pain point for patients and providers when getting and administering care.
    Prior authorization makes providers obtain approval from a patient’s insurance company before they carry out specific services or treatments. Insurers say the process ensures patients receive medically necessary care and allows them to control costs. But patients and providers have slammed prior authorizations for, in some cases, leading to care delays or denials and physician burnout.

    Dozens of plans under large insurers such as CVS Health, UnitedHealthcare, Cigna, Humana, Elevance Health and Blue Cross Blue Shield committed to a series of actions that aim to connect patients to care more quickly and reduce the administrative burden on providers, according to a release from AHIP, a trade group representing health plans. Though the companies cheered the changes, they could cut into profits if they lead to patients using care more often.
    “The American health care system must work better for people, and we will improve it in distinctive ways that truly matter,” said Steve Nelson, president of CVS’ insurer, Aetna, in a statement. “We support the industry’s commitments to streamline, simplify and reduce prior authorization.”
    Insurers will implement the changes across markets, including commercial coverage and certain Medicare and Medicaid plans. The group said the tweaks will benefit 257 million Americans.

    More CNBC health coverage

    The move comes months after the U.S. health insurance industry faced a torrent of public backlash following the murder of UnitedHealthcare’s top executive, Brian Thompson. It builds on the work several companies have already done to simplify their prior authorization processes. 
    Among the efforts is establishing a common standard for submitting electronic prior authorization requests by the start of 2027. By then, at least 80% of electronic prior authorization approvals with all necessary clinical documents will be answered in real time, the release said. 

    That aims to streamline the process and ease the workload of doctors and hospitals, many of whom still submit requests manually on paper rather than electronically. 
    Individual plans will reduce the types of claims subject to prior authorization requests by 2026. 
    “We look forward to collaborating with payers to ensure these efforts lead to meaningful and lasting improvements in patient care,” said Shawn Martin, CEO of the American Academy of Family Physicians, in the release. 
    UnitedHealthcare, in a statement, said it “welcomes the opportunity to join other health insurance plans in our shared commitment to modernize and streamline the prior authorization process.”
    The company said it builds on its previous efforts, including steps to reduce the number of services requiring prior authorization. It also includes UnitedHealthcare’s national Gold Card program, which recognizes and awards providers who “consistently adhere to evidence-based care guidelines” by reducing their total prior authorization requests.

    Don’t miss these insights from CNBC PRO More

  • 200 Shares179 Views

    in Business

    Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats; HIMS drops 28%

    Novo Nordisk said it is ending its collaboration with Hims & Hers due to concerns about the telehealth company’s sales and promotion of cheaper knock-offs of the weight loss drug Wegovy. 
    Novo Nordisk in April said it would offer Wegovy through several telehealth companies, such as Hims & Hers, to expand access to the blockbuster injection now that it is no longer in short supply in the U.S. 
    But Novo Nordisk said Hims & Hers has “failed to adhere to the law which prohibits mass sales of compounded drugs” and accused the telehealth company of “deceptive” marketing that is putting patient safety at risk.

    The “Wegovy” brand slimming syringe is sold in the Achat pharmacy in Mitte. The “Wegovy” slimming syringe has been available in Germany for a year.
    Jens Kalaene | Picture Alliance | Getty Images

    Novo Nordisk on Monday said it is ending its collaboration with Hims & Hers due to concerns about the telehealth company’s sales and promotion of cheaper knock-offs of the weight loss drug Wegovy. 
    Shares of Hims & Hers fell roughly 28% on Monday, while Novo Nordisk’s stock fell more than 6%.

    Novo Nordisk in April said it would offer Wegovy through several telehealth companies such as Hims & Hers to expand access to the blockbuster injection now that it is no longer in short supply in the U.S. 
    The end of the Wegovy shortage meant compounding pharmacies were legally restricted from making and selling cheaper, unapproved versions of the drug by May 22 – with rare exceptions. Telehealth companies have said patients may still need personalized compounded versions of Wegovy in situations where it’s medically necessary.
    But Novo Nordisk on Monday said Hims & Hers has “failed to adhere to the law which prohibits mass sales of compounded drugs” under the “false guise” of personalization. The drugmaker also accused Hims & Hers of “deceptive” marketing that is putting patient safety at risk.
    “We expected that the efforts towards compounding personalization would diminish over time. When we didn’t see that, we had to make a choice on behalf of patients,” Dave Moore, Novo Nordisk’s executive vice president of U.S. operations, told CNBC. “We’ve been firm all along that patient safety is our primary focus.”
    “Our expectation was that [Hims & Hers’] business focus would transfer toward real, safe, approved medications,” he said. Moore said Novo Nordisk will not incur any fees from terminating the collaboration, as it was established through a third-party that manages the drugmaker’s direct-to-consumer online pharmacy

    A Hims & Hers spokesperson did not immediately respond to CNBC’s request to comment.
    During an earnings call in May, Hims & Hers CEO Andrew Dudum said the company gives providers and patients choice in their treatments. 
    “Ultimately what is right for them is their own discretion,” he said. “I think we strongly believe it’s really important that we maintain that independence.”
    In a note on Monday, Citi analyst Daniel Grosslight said the end of the collaboration increases Hims & Hers’ legal risk “substantially.” He added that he was surprised the partnership, when initially announced, did not include any efforts to curb the telehealth company’s compounding efforts.
    During Food and Drug Administration-declared shortages, pharmacists can legally make compounded versions of brand-name medications. They can also be produced on a case-by-case basis when it’s medically necessary for a patient, such as when they can’t swallow a pill or are allergic to a specific ingredient in a branded drug. 
    But drugmakers and some health experts have pushed back against the practice, largely because the FDA does not approve compounded drugs.
    Novo Nordisk said it will continue offering the branded version of Wegovy through telehealth organizations that “share our commitment to safe and effective medical treatment for patients living with chronic diseases.”
    Moore said Novo Nordisk has seen several other mass compounding pharmacies reduce or stop making and selling Wegovy knock-offs. He added that the company will “engage on the legal front” and with the FDA to ensure that illegal compounding diminishes.
    In a release on Monday, Novo Nordisk said it conducted an investigation that found the active ingredients used in Wegovy knock-offs sold by telehealth companies and compounded pharmacies are manufactured by foreign suppliers in China. The drugmaker also cited a report from the Brookings Institution in April, which found that a large share of those Chinese suppliers were never inspected by the FDA, and many that were inspected had drug quality assurance violations. 
    “These medicines that are coming into our country from sources around the world are not even approved in those countries that they originated, and it’s a problem,” Moore said. More

  • 138 Shares169 Views

    in Business

    New Stellantis CEO faces slew of challenges, vows to avoid ‘mediocrity’

    Antonio Filosa is stepping into the role of CEO at automaker Stellantis with a host of challenges in front of him.
    Relationships with employees and dealers have fractured, the company is trying to grow retail market share, and the auto industry is facing regulatory uncertainty.
    Former and current executives and employees described the 51-year-old Filosa, an Italian native, to CNBC as an engaging, collective leader who knows the business well.

    Incoming Stellantis CEO Antonio Filosa, head of the company’s Americas operations, greets a Windsor Assembly Plant employee during an event celebrating Chrysler’s 100th anniversary on June 6, 2025.
    Stellantis

    DETROIT — “Mediocrity is not worth the trip.”
    That was part of incoming Stellantis CEO Antonio Filosa’s first public message after being named to lead the global automaker. It was a mantra decades in the making, as he spent 25 years climbing through the company’s ranks, starting from a role as a night shift paint shop supervisor in Spain.

    The quote also referenced late Fiat Chrysler CEO Sergio Marchionne, a mentor of Filosa’s who is revered in the company. Marchionne unexpectedly died in 2018, years before the automaker merged to form Stellantis, the parent for brands such as Jeep, Ram, Fiat and Chrysler.
    Several former and current Stellantis executives and employees who have worked with Filosa highlighted his connection to Marchionne when speaking with CNBC. They also described him as an engaging, collective leader who knows the business well, from the factory floors to C-suite offices, but who faces a slew of challenges and tests ahead.
    As Filosa officially steps into the CEO role on Monday, he will need to channel Marchionne — viewed as a dynamic executive and thinker who saved Italian automaker Fiat and America’s Chrysler — to be successful in turning around the embattled carmaker.

    John Elkann, chairman of Fiat SpA, center left, and Sergio Marchionne, chief executive officer of Fiat SpA and Chrysler Group LLC, center right, look at the new Jeep Renegade SUV automobile, produced by Chrysler Group LLC, as it stands on display at the company’s stand on the opening day of the 84th Geneva International Motor Show in Geneva, Switzerland.
    Chris Ratcliffe | Bloomberg | Getty Images

    The most recent CEO, Carlos Tavares, who spearheaded the merger to form Stellantis, abruptly resigned in December amid disagreements with the company’s board, yearslong sales declines and a 70% drop in net profit last year. He, like Marchionne, was considered a dynamic CEO by those inside and outside the company, but many thought he focused too much on cost cuts, to the detriment of the business.
    In addition to financial issues, industry experts said Filosa will need to continue to mend bonds with dealers, politicians and employees that were damaged during Tavares’ tenure. And he’ll have to handle the company’s investment plans between traditional vehicles and “electrified” models such as hybrids and EVs.

    “We need to manage the transition, right? It’s not a secret that electric vehicles will be [a] strong part of the future, right? Not only for Stellantis, but for the automotive industry itself,” Filosa, then-Stellantis’ head of the Americas, told reporters in January. “The pace and the speed, probably something that needs to be slightly reassessed.”
    Filosa, at that time, said it will be on the new CEO to decide the pace. He described the company’s issues as “a multitask challenge” for whoever the board would appoint, which ultimately was him.

    ‘Multitask challenge’

    Filosa, a relatively young CEO at 51 years old, has hit the ground running since Tavares promoted him from Jeep’s CEO to chief operating officer of Stellantis’ Americas operations, where he prioritized mending strained bonds.
    Employees were distraught over cuts and layoffs, while the company’s franchised retailers were livid about Stellantis’ sales and market share losses under Tavares. The Stellantis National Dealer Council in September penned an unprecedented open letter condemning Tavares’ actions.
    “Your own distribution network, your dealer body, has been left in an anemic and diminished state,” Kevin Farrish, a dealer in Virginia who led the council, wrote in the letter.
    Michael Bettenhausen, a dealer in Illinois who succeeded Farrish, has spoken fondly of Filosa but said there is still a lot of work to get done.

    2025 Jeep Cherokee SUV
    Stellantis

    “We need to mutually work together and dive into all the issues here in the North American operations, and we look forward to Antonio still being a part of those discussions,” he said.
    Stellantis’ global sales under Tavares fell 12.3% from 6.5 million in 2021 — the year the company was formed — to 5.7 million in 2024. That included a roughly 27% collapse in the U.S. in that period to 1.3 million vehicles sold. The automaker dropped from fourth is U.S. sales to sixth, falling from an 11.6% market share to 8% during that time frame.
    Filosa — a native of Naples, Italy — said in January the top priority for the U.S. was to grow retail market share, which includes sales to customers as opposed to those to fleets or businesses.
    “We need to do that. It’s not a belief; it’s a need,” he said. “The U.S. retail market share really measures your ability to organically [grow sales].”
    The automaker remains in a product dearth, bringing its overall sales down roughly 12% during the first quarter of this year compared with the same period a year earlier. The company declined to release its year-to-date retail sales.

    Michael Wayland / CNBC

    But new products such as the upcoming redesigned Jeep Cherokee, additional Ram 1500 pickup truck models and a new gas-powered Dodge Charger are expected to boost sales, as well as the automaker’s top line.
    Stellantis’ revenue has grown since the company was formed but plummeted 17.2% year over year in 2024 to 156.9 billion euros ($180.6 billion), while other automakers such as General Motors and Ford Motor saw notable increases in their top lines.
    “Filosa steps into the CEO role amid significant challenges for the company,” RBC Capital Markets analyst Tom Narayan wrote in a May 28 investor note. “His immediate priorities include revitalizing the company’s performance in the US market, streamlining Stellantis’ extensive 14-brand portfolio, and mending strained relationships with dealers, unions, and governments.”

    ‘A logical choice’

    Filosa’s appointment to CEO was viewed as a safe, “logical choice” for the automaker as it attempts to address its self-inflicted issues, as well as regulatory uncertainty such as tariffs and global economic concerns, according to industry insiders and observers.
    “I think it’s a logical, credible choice,” Tavares told Bloomberg in late May in his first interview with international media since leaving the company. “Hopefully, he will be properly supported by the board. So let’s see.”
    Since being announced as CEO on May 28, Filosa has visited many of the automaker’s plants in the U.S., Canada and Europe. He was reportedly chosen following a six-month search that included other internal and external candidates.
    His public comments regarding his new position have painted him as a humbled, grateful executive and father who takes pride in connecting with people.
    “I am truly honored to be appointed CEO of this great company, Stellantis. It has been my home for 25 years. This place is in my blood,” he said a May 28 LinkedIn post, referencing Marchionne.

    The New York Stock Exchange welcomes The Jeep Brand (NYSE: STLA) to the podium, on May 31, 2024. To honor the occasion, Antonio Filosa, Chief Executive Officer, joined by Lynn Martin, President, NYSE Group rings The Opening Bell®.

    A handful of current and former Stellantis executives described Filosa as an “engaging leader” and “listener” who’s particularly at ease inside plants and speaking with employees — much like Marchionne.
    “I’ve worked side by side with him. … We grew up under Sergio,” Stellantis’ global head of design, Ralph Gilles, told CNBC. “He’s a people person. He’s a visionary, he’s energized, he’s young … and he’s curious. He’s a great listener. I love his problem-solving abilities, and for me, he loves design.”
    Marchionne would refer to his executives as “kids,” many of whom, like Gilles and Filosa, he appointed to their first high-profile leadership positions. Others still with Stellantis include Ram CEO Tim Kuniskis and Chief Marketing Officer Olivier Francois.
    “Antonio’s awesome,” Kuniskis, who unretired after a seven-month hiatus last year, told CNBC. “He’s one of the driving forces for me wanting to come back.”
    Stellantis CFO Douglas Ostermann earlier this month touted Filosa’s background in manufacturing and building the company’s Latin American business, which has remained a high profitability region for the company.
    “He’s a very kind of open leader that I think really works well with across the organization, across people, across brands, kind of a relationship builder,” Ostermann said during a Bernstein event.
    Upon Filosa’s appointment, Bernstein analysts in an investor note described him as a “safe pair of hands” but a relatively uninspiring choice for investors compared with an outside hire such as ex-Apple CFO Luca Maestri, whom the company was reportedly considering.
    “I think investors were quite excited about the prospect of bringing in somebody from the outside,” Bernstein analyst Daniel Roeska told CNBC. “Not that there wasn’t anybody inside, but after kind of such a big mix-up, investors thought the idea of bringing something from the outside was a good one.”

    Stock chart icon

    Stellantis shares

    Filosa hasn’t had much experience in such a high-profile role, unlike Marchionne and Tavares, who were tested automotive veterans. He came up through the company’s Latin American operations and has only served a short time in North America — its most crucial market. While Italian, he also has limited work time in Europe, the automaker’s second most important region.
    Two sources who agreed to speak on the condition on anonymity to be able to speak freely also said he’s a nose to the grindstone leader who can be demanding at times, similar to his predecessors and other CEOs.
    Filosa also will need to restore investor confidence, which both Marchionne and Tavares were at ease doing. Three sources, including two company insiders, said he doesn’t yet have the CEO prowess like his predecessors, something that may come with experience.
    UBS analyst Patrick Hummel noted in a financial note last month that Filosa’s interaction with the financial community also has been “limited” to a capital markets day in June 2024.

    Read more CNBC auto news

    Investors didn’t react strongly to the CEO choice, based on the company’s stock price. When Filosa was announced as CEO on May 28, U.S.-listed shares of the stock declined 3.2%. Since then, the shares are off roughly 10% amid a litany of outside factors.
    The daily stock decline is actually similar to when Marchionne made his “mediocrity” comments during the company’s first investor day after combining Chrysler and Fiat to make “Fiat Chrysler Automobiles,” or FCA, on May 6, 2014. Shares fell 3.9% that day.
    Marchionne, a philosophy major who was known for his astute remarks, was discussing the challenges ahead for the automaker and changing automotive industry, including not chasing unprofitable businesses — which Filosa and Stellantis must continue to address.
    “I told you this morning that our FCA culture responds better when it is confronted with purpose and with challenge,” Marchionne said. “And our plan has purpose because when all is said and all is done, mediocrity is not worth the trip.”
    Correction: This story has been updated to correct the name of the Stellantis National Dealer Council.

    Don’t miss these insights from CNBC PRO More

  • 150 Shares189 Views

    in Finance

    The Iran-Israel conflict isn’t denting Chinese business optimism in the Middle East

    Chinese shipments to Dubai’s logistics hub have risen by 20% this month from a year ago, according to estimates from Bear Huo, China general manager at FundPark.
    Chinese companies have increasingly turned to the region in the last few years.
    “A more stable Middle East serves China’s economic and strategic interests,” said an EIU economist.

    A cargo ship cruises toward the Strait of Hormuz off the shores of Khasab in Oman on Jan. 15, 2011.
    Marwan Naamani | Afp | Getty Images

    BEIJING — The recent flare-up in Middle East tensions isn’t denting Chinese business optimism about opportunities in the region.
    Chinese shipments to Dubai’s logistics hub have risen by 20% this month from a year ago, as locals stock up on batteries and daily necessities, according to estimates from Bear Huo, China general manager at FundPark, a fintech startup that lends money to small Chinese businesses selling overseas via internet platforms.

    “Overall, Chinese merchants are relatively optimistic,” he said Monday in Mandarin, according to a CNBC translation. That’s partly due to the relatively recent rise of the Middle East as a fast-growing market, he added.
    Chinese companies have increasingly turned to the region in the last few years — whether to raise money from local investors or to tap a new market for electric cars — amid trade tensions with the United States. On the geopolitical front, Beijing helped Riyadh and Tehran restore diplomatic relations in 2023.
    Huo’s view is that the Iran-Israel tensions will end relatively soon, given that even the U.S. strikes have targeted specific strategic sites, and as fighting isn’t spread out along a border as in the drawn-out conflict between Russia and Ukraine.
    Nevertheless, risks remain elevated as the Dubai port is right across the Strait of Hormuz from Iran.
    Ships are moving more slowly and there are fewer flights, Huo said. He said he does not know where products from Chinese sellers go to after they arrive in Dubai, and added that the company doesn’t directly do business with Iran because of sanctions.

    China’s Ministry of Foreign Affairs said it “strongly condemns” the U.S. attacks on Iran over the weekend, while calling on all parties involved to “reach a ceasefire as soon as possible.”
    China’s trade with Iran has dropped sharply in the last two years, according to customs data accessed via Wind Information. The U.S.-sanctioned crude exporter has relied significantly on Beijing’s purchases.
    “A more stable Middle East serves China’s economic and strategic interests,” said Yue Su, Beijing-based principal economist for China at the Economist Intelligence Unit.
    “Beijing will be interested to position itself as a constructive power capable of contributing to global stability,” she said. She noted that Chinese businesses will likely interact cautiously with Iran, given concerns over possible secondary sanctions.
    State news broadcaster CCTV aired interviews Sunday of Chinese citizens grateful for Beijing’s efforts to evacuate them from Iran.
    While there are strict warnings on U.S. citizens traveling to Iran, Chinese citizens have been able to visit Iran without a visa for three weeks, for tourism or business. Most Chinese nationals who were in Iran have been evacuated, the Chinese Embassy in Iran said Monday.
    On an even more optimistic note, if the latest escalation results in a relaxation of U.S. sanctions on Iran, tens of thousands of Chinese businesses would likely rush to the Middle Eastern country to build up its tourism, real estate and overall infrastructure, said Qin Gang, Beijing-based founder of a consultancy that translates as Ode & Song Cultural Industry.
    He said he visited five cities in Iran in 2013 at the invitation of Mahan Air, a private-sector Iranian airline. More