Raphael Stevens

Mayim Bialik and Ken Jennings have signed deals to split hosting duties for “Jeopardy!”
The deal ends the tumultuous competition to succeed Alex Trebek, who died in November 2020.
Davies said the show would not “flip flop” the hosts, noting that viewers value consistency.

Mayim Bialik attends Marvel Studios “Doctor Strange in the Multiverse of Madness” Premiere at El Capitan Theatre on May 02, 2022 in Los Angeles, California.
Axelle | Bauer-Griffin | FilmMagic | Getty Images

Mayim Bialik and Ken Jennings have signed deals to split hosting duties for “Jeopardy!,” according to a statement from executive producer Michael Davies.
The two had been acting as hosts on an interim basis. The deal also ends the tumultuous competition to succeed longtime host Alex Trebek, who died in November 2020.

Bialik, a neuroscientist and actor best known for her roles on “Blossom” and “The Big Bang Theory,” was named host alongside Mike Richards in August 2021. Richards, who was an executive producer on the show, was ousted from the role soon after for insensitive statements and multiple discrimination lawsuits against him.

Ken Jennings
Ron Batzdorff | Disney General Entertainment Content | Getty Images

Jennings, who holds the record for the most consecutive wins on “Jeopardy!,” helped split duties with Bialik following Richards’ departure. “Jeopardy!” says its viewership with the two hosts has risen to over 27 million per week, making it “the most-watched entertainment show on all of television.”
Jennings is scheduled to begin the season in September and host the Tournament of Champions. Bialik will host “Celebrity Jeopardy!” before taking the podium at the original “Jeopardy!” in January.
Davies said the show would not “flip flop” the hosts, noting that viewers value consistency. He stated that they will work around Bialik’s schedule while she films the Fox sitcom “Call Me Kat.”
CNBC’s David Faber was among the contenders for the “Jeopardy!” hosting role, as were Katie Couric and LeVar Burton, among others.

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Vox Media is laying off 39 employees in sales, recruiting and certain editorial teams.
New York Magazine, Vox, and The Verge aren’t affected by the layoffs.
The layoffs could be a sign media companies are preparing for a recession, which CNBC survey respondents suggest could officially come in December.

Jim Bankoff, chairman and chief executive officer of Vox Media Inc.
David Paul Morris | Bloomberg | Getty Images

Just a month ago, media executives expressed optimism that their companies were well positioned for an economic slowdown.
Vox Media may have injected a dose of reality to the industry Wednesday.

The privately held digital media company is laying off 39 employees, according to a person familiar with the matter, as well as slowing down hiring and reducing non-essential expenses. The job cuts affect employees in sales, recruiting and certain editorial teams.
New York Magazine and The Verge, brands owned by Vox Media, and the company’s namesake outlet Vox aren’t affected by the layoffs, according to people familiar with the matter, who asked not to be named because the decisions are private. The company’s brands also include Eater, Curbed and Now This. A spokesperson for Vox Media declined to comment.
In a memo to staff, Vox Media CEO Jim Bankoff directly cited deteriorating economic conditions for the decision.
“The current economic conditions are impacting companies like ours in multiple ways, with supply chain issues reducing marketing and advertising budgets across industries and economic pressures changing the ways that consumers spend,” Bankoff wrote in the memo obtained by CNBC. “Our aim is to get ahead of greater uncertainty by making difficult but important decisions to pare back on initiatives that are lower priority or have lower staffing needs in the current climate.”
He said in the memo that the cuts affect “under 2% of the company.” Earlier this year, Vox Media acquired Group Nine, adding hundreds of employees to the company. Vox derives the majority of its revenue from advertising.

Several employees at Thrillist, one of the brands acquired in the Group Nine deal, tweeted Wednesday they’ve been laid off.
The digital media industry hasn’t gotten the valuation bump executives hoped might happen with BuzzFeed’s decision to go public. BuzzFeed went public via a special purpose acquisition company at $10 per share in December. Seven months later, BuzzFeed shares are below $2.
Vox Media’s decision to cut staff may be the tip of the iceberg for media. Since 2000, on a year-by-year basis, the biggest three years for job losses in the industry all coincided with recessions — the 2020 Covid-19 pullback, the 2007-09 financial crisis and the 2001 dot-com bubble bust, according to data from Challenger, Gray & Christmas.

Arrows pointing outwards

Officially, the NBER defines recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.”
More than 60% of respondents to a CNBC Survey this week predicted the Federal Reserve’s efforts to rein in inflation by hiking rates will lead to a recession. Of those who predict a recession in the next 12 months, most believe it will begin in December. U.S. inflation rose 9.1% in June, the highest jump in 40 years.
WATCH: The Fed has no good answers here, recession probability is growing, says Jason Brady

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McDonald’s and Chipotle Mexican Grill are seeing customers trade down as inflation pressures budgets.
The commentary follows Walmart slashing its profit outlook, citing the impact of higher prices on shopping habits.
Fast-food chains often fare well in economic slowdowns as they can steal business from pricier chains and restaurants.

Washington DC, Chinatown, Chipotle and McDonald’s fast food restaurants.
Jeff Greenberg | Universal Images Group | Getty Images

McDonald’s and Chipotle Mexican Grill say customers squeezed by inflation are choosing cheaper menu items and visiting their restaurants less often, signaling trends that could be hitting the broader restaurant industry.
The two companies were among the first restaurant chains to report their second-quarter results. Wingstop, Starbucks and Taco Bell owner Yum Brands are all scheduled to release their earnings reports within the next week.

Starting around mid-May, Chipotle said on Tuesday that low-income customers were visiting its restaurants less frequently, leading to slowing traffic. Earlier in the day, McDonald’s executives also said some low-income customers have been switching to its value menu or opting out of combo meals to save money. But McDonald’s executives added that the chain is also benefiting from customers trading down from more expensive full-service or fast-casual restaurants.
The restaurant companies’ commentary comes on the heels of Walmart slashing its profit outlook, citing surging prices for food and gas that are squeezing consumers’ wallets. Higher prices for necessities have curtailed shoppers’ willingness to buy items such as apparel and electronics — or dine out at restaurants and order food delivery.
On average, restaurant menu prices rose 7% in the three months ended May compared with the year-ago period, according to the NPD Group. During the same period, consumers from households with income under $75,000 cut their fast-food visits by 6%, the market research firm said.
Restaurant chief executives, including McDonald’s Chris Kempczinski, have pointed to the gap in rising prices for groceries and restaurant meals as an advantage for eateries. Prices for food at home have climbed 12.2% over the last 12 months, while prices for food away from home are up just 7.7%, according to the Bureau of Labor Statistics’ consumer price index.
“I don’t know what the impact of that is, but certainly we expect that there’s some benefit that we’re seeing as part of that,” Kempczinski told analysts Tuesday during the company’s conference call.

Historically, fast-food chains have fared well during economic slowdowns as diners shift to cheaper options without skipping out on eating out altogether.
McDonald’s is among the best-positioned restaurants to benefit from consumers trading down, according to BMO Capital Markets analyst Andrew Strelzik. Executives touted the chain’s value offerings compared with rivals, even as the company and its franchisees raise prices.
As a fast-casual chain, Chipotle says most of its customers aren’t as sensitive to pricing.
“The low-income consumer definitely has pulled back their purchase frequency,” CEO Brian Niccol said on the company’s conference call. “Fortunately for Chipotle, you know, the majority of our customers are a higher household income consumer.”
The burrito chain said it is confident it can hike menu prices without scaring off its core customers. It plans to raise prices about 4% in August to cover rising costs for tortillas, avocados and packaging.
Chipotle stock was up 11% in morning trading on Wednesday after the news of another round of price hikes and an earnings beat. Shares of McDonald’s were down less than 1% after Deutsche Bank downgraded the stock, citing its valuation relative to its fast-food peers.
By the end of the year, BTIG analyst Peter Saleh, predicts that Chipotle’s menu prices will be about 20% higher than they were two years earlier. The chain’s competitors have raised prices by similar levels or even higher, according to a survey conducted by the firm.
“The results of our pricing survey indicate that Chipotle still has pricing power that it can lean on to support margins in this inflationary environment,” Saleh wrote.
For the second quarter, Chipotle reported same-store sales growth of 10.1%, falling short of Wall Street’s expectations of 10.9%. The increase was largely the result of earlier price hikes, which offset a decline in customer traffic.
Some analysts questioned how much more Chipotle could raise prices. Cowen analyst Andrew Charles wrote in a note that the planned hikes this summer could erode traffic further, especially given the uncertain economic environment noted by the company’s executives.
— Ian Krietzberg contributed reporting for this story.

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Spirit and Frontier agreed in February to combine into a giant budget airline.
A surprise, all-cash bid from JetBlue in April cast doubt over that deal.
Spirit had repeatedly postponed a vote on the Frontier deal as it lacked shareholder support and continued talks with JetBlue and Frontier.

A Frontier Airlines plane near a Spirit Airlines plane at the Fort Lauderdale-Hollywood International Airport on May 16, 2022 in Fort Lauderdale, Florida.
Joe Raedle | Getty Images

Spirit Airlines shareholders were finally voting Wednesday on a planned tie-up with Frontier Airlines, a deal that has been on the rocks following a rival bid from JetBlue Airways this spring.
Spirit had postponed the vote four times as it struggled to gather enough shareholder support for the Frontier merger, which the carriers first announced in February.

Frontier told Spirit earlier this month that its latest sweetened cash-and-stock offer was its “best and final” bid. But Spirit still lacks stockholder support for the deal, according to a person familiar with the matter.
The meeting began Wednesday morning and went into recess until 4 p.m. ET. Polls are open until 4:15 p.m. ET and the airline plans to announce results shortly afterward.
A rejection of the Frontier deal would be a blow to the discount carriers that planned to combine forces into a budget behemoth and the country’s fifth-largest airline.
Spirit shareholders will vote only on the Spirit-Frontier transaction, and not on the rival bid by JetBlue, which spent weeks urging shareholders to turn down the Frontier deal.
The vote could clear the way for Spirit to potentially strike a deal with JetBlue, which is seeking to buy the budget airline outright and refurbish its planes in JetBlue style, featuring seatback screens and more legroom. Talks are ongoing, according to a person familiar with the negotiations, but it’s still possible they fall apart.

Spirit’s board has repeatedly rebuffed JetBlue’s advances, arguing that it was unlikely that regulators would approve the deal.
It is possible that neither deal gets done. Both transactions would face a high hurdle for the Justice Department’s blessing because the Biden administration has vowed to crack down on consolidation.
Executives for all three airlines said their preferred deal would help them grow quickly and better compete with the top four U.S. carriers — American, Delta, United and Southwest — which control about three-quarters of the domestic market.
Spirit, however, has raised concerns about a JetBlue takeover because of the New York-based carrier’s alliance with American in the Northeast, a partnership the Justice Department last year sued to undo.
On Monday, Frontier Airlines moved up its second-quarter earnings release and conference call to after the market close Wednesday, shortly following Spirit’s meeting. They had been previously scheduled for Thursday.
Frontier, JetBlue and Spirit didn’t comment.
Correction: A previous version of this story misstated when Frontier announced it would move up its earnings report. It made the announcement on Monday.

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The Federal Reserve on Wednesday enacted its second consecutive three-quarters of a percentage point interest rate increase to combat soaring inflation.
Some advisors have shifted stock allocations to high dividend and value stocks while sticking with short- to immediate-term fixed-income assets.
However, long-term investors shouldn’t respond with “swift short-term moves,” said Jon Ulin, CEO of Ulin & Co. Wealth Management.

The Good Brigade | DigitalVision | Getty Images

Here’s how portfolio allocations have shifted

“We’re attempting to address both inflation and recession concerns,” said certified financial planner John Middleton, owner of Brighton Financial Planning in Flemington, New Jersey. 

For stock allocations, he likes companies paying a high dividend, and value stocks, which typically trade for less than the asset is worth, with a tilt to infrastructure, energy, real estate and consumer staples.
And the fixed-income side of the portfolio may include assets with a so-called shorter to intermediate duration, factoring in the bond’s coupon, time to maturity and yield paid through the term.

We’re attempting to address both inflation and recession concerns.

John Middleton
Owner of Brighton Financial Planning

“We’re slightly higher allocated to corporate bonds than we are to Treasury bonds,” said Middleton, explaining that he’s comfortable taking on greater credit risk to earn more income.
However, allocations may shift based on key data releases later this week.
Middleton may adjust portfolios based on readings on the personal consumption expenditures price index, the Fed’s preferred inflation gauge, and the U.S. gross domestic product, which may hit a second negative quarter of growth — one definition of a recession.

Investors need to ‘stay the course,’ experts say

Long-term investors shouldn’t respond to rising interest rates with “swift short-term moves,” said Jon Ulin, a CFP and CEO of Ulin & Co. Wealth Management in Boca Raton, Florida.
Whether you’re deferring funds into your 401(k) plan or investing cash as a retiree, now isn’t the time to be “cute or fancy,” he said. By staying invested when the market is down, you may benefit from market upswings and future recovery, he said. 
While it’s been a rough year for bond prices, which typically move down as interest rates go up, these assets are now offering the negative stock market correlation that investors expect, Ulin said.  
“Diversification can now help investors sleep a little bit better,” he said. “You need to stay the course, calm down and take a deep breath.”

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Major gun manufacturers have made over $1 billion in the last decade selling military-style weapons, according to an investigation by the House Committee on Oversight and Reform.
A memo from the panel outlines companies’ revenue and marketing strategy for their assault-style weapons.
At a House hearing, gun manufacturer CEOs called shootings “local problems” and defended firearms as “inanimate” objects.

Fire arms are seen at the Bobâs Little Sport Gun Shop in the town of Glassboro, New Jersey, United States on May 26, 2022. 
Tayfun Coskun | Anadolu Agency | Getty Images

Major gun manufacturers have made over $1 billion in the last decade selling military-style weapons, according to an investigation by the House Committee on Oversight and Reform.
A memo from the panel outlines manufacturers’ revenue and marketing strategies for assault-style weapons, focusing on the gun brands used in recent mass shootings. The release came ahead of a hearing Wednesday on the role of the firearm industry in pervasive gun violence in the United States.

At the hearing, gun manufacturer CEOs called shootings “local problems” and defended firearms as “inanimate” objects.
Sturm Ruger CEO Christopher Killoy, and Daniel Defense CEO Marty Daniel testified at Wednesday’s hearing. Smith & Wesson CEO Mark Smith was invited but didn’t attend.

At the hearing, committee chair Rep. Carolyn B. Maloney, D-N.Y., said the panel will issue subpoenas to Smith & Wesson and other manufacturers.
Earnings from assault-style weapons more than doubled for brands like Smith & Wesson, Sturm, Ruger & Co. and Daniel Defense between 2019 and 2021, according to House findings.
The committee also provided these estimated assault-style weapon revenues since 2012, the year a gunman killed 20 children and six adults at Sandy Hook Elementary School in Connecticut:

Smith & Wesson: $695 million
Sturm, Ruger & Co: $514 million
Daniel Defense: $528 million
SIG Sauer: Refused to report
Bushmaster: $2.9 million (2021 only)

Gun-makers’ products used in recent mass shooting deaths were also noted. For example, a Daniel Defense weapon was used to kill 19 children and two teachers in May at Robb Elementary School in Uvalde, Texas.
The brands themselves do not track deaths, injuries or crimes that involve their weapons. Sig Sauer told the committee that it does “not have the means” to track deaths. Ruger said it learns of incidents through its “customer service department,” the media or from occasional lawsuits.
“These murders are local problems that have to be solved locally,” Daniel said to committee members Wednesday.
When Maloney asked whether Killoy, the Sturm Ruger CEO, would apologize to victims of shootings, he defended the company’s product as an “inanimate object.”
The hearing comes just after California Gov. Gavin Newsom recently signed a law allowing citizens affected by gun violence to sue manufacturers.
The committee also focused on marketing tactics, including Smith & Wesson advertisements that mimic first-person shooter video games and a Sig Sauer weapon sold as an “apex predator.”
House Democrats are pushing to vote on an assault weapons ban later this week. If passed, the bill is unlikely to make it through the Senate.
Smith & Wesson, Sig Sauer and Sturm Ruger did not immediately respond to a request for comment.

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The global space economy grew last year at the fastest annual rate since 2014, according to a report by the Space Foundation.
Total output by the world’s governments and corporations in the realm of rockets, satellites and more expanded by 9% year-over-year, the report found.
Space Foundation CEO Tom Zelibor told CNBC that the space economy is expected to weather market volatility and macroeconomic pressures, and continue growing this year.

People watch from Canaveral National Seashore as a SpaceX Falcon 9 rocket launches from pad 39A at the Kennedy Space Center in Cape Canaveral, Florida, Feb. 3, 2022. The rocket is carrying 49 Starlink internet satellites for a broadband network.
Paul Hennessy | SOPA Images | LightRocket | Getty Images

The global space economy grew last year at the fastest annual rate since 2014, hitting a record of $469 billion, according to a report by the Space Foundation released Wednesday.
Total output by the world’s governments and corporations in the realm of rockets, satellites and more expanded by 9% year-over-year, the report says.

While 2022 has seen a slowdown in U.S. markets and the economy, Space Foundation CEO Tom Zelibor told CNBC that the space economy is expected to weather the storm and continue growing this year.
“Maybe it won’t be this record-breaking number,” Zelibor said, “but the space industry has really shown itself to be pretty resilient.” He noted the industry’s growth during the height of the Covid pandemic.
“I really don’t see a change,” he said.
The Space Foundation is a U.S. nonprofit founded in 1983, focused on education and advocacy regarding the industry.
Financial activity in the space economy, such as M&A and private investment, has seen a slowdown in 2022, Zelibor acknowledged, but he emphasized that government and commercial spending remain strong. For example, the report highlighted commercial space’s growth to $362 billion last year – with space-based products and services such as broadband and GPS generating continued revenue as staples of the modern global economy.

Government spending continues to grow, and Zelibor highlighted that there are “over 90 countries operating in space now.”
The United States remains the biggest spender, with its $60 billion total space budget nearly quadruple of the next largest, China. Additionally, India and multiple European countries each increased space spending by 30% or more in 2021, although those countries’ budgets remain under $2 billion a year.
Zelibor also emphasized that the first six months of 2022 has seen 75 rocket launches worldwide, matching the record pace set in 1967 by the U.S. and the Soviet Union during the race to the moon. “It’s phenomenal,” he said.
The report noted that about 90% of the more than 1,000 spacecraft launched this year have been backed by commercial firms — most notably the hundreds of Starlink internet satellites launched by Elon Musk’s SpaceX.

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