Raphael Stevens

Retailers are already gearing up for a holiday shopping season where inflation could influence how much people on spend on gifts.
Shoppers will pay more attention to value and get an earlier than usual start to beat price hikes, according to a new report by Salesforce.
Amazon Prime Day and back-to-school sales will offer clues about people’s appetite for spending and the type of products they want.

Pedestrians view the holiday windows at a store in New York, on Thursday, Dec. 2, 2021.
Christopher Occhicone | Bloomberg | Getty Images

Summer vacation season is just getting started, but retailers are already gearing up for the holidays.
In coming weeks, companies will get early clues about how the all-important holiday shopping season will shape up as Amazon hosts its Prime Day on July 12 and 13 and rival retailers including Target hold competing sales. That will be followed by the busy back-to-school shopping period, another indicator of how the holidays could play out.

The trends retailers detect starting next month could signal how much people might be willing to spend during the holidays, as well as the type of products they’ll want, said Rob Garf, vice president and general manager of retail for Salesforce, a software company that also tracks shopping trends for retailers.
Complicating sales forecasts for this year’s holiday season are surging prices for gas, groceries and other household needs that are whittling away at how much people might spend on gifts.
To anticipate how those factors will sway shopping behavior, Salesforce made predictions for the upcoming holiday season based on two of its reports. Its quarterly shopping index analyzes the online activity of more than 1 million people in dozens of countries, with a focus on 12 key markets including the U.S. Its other report is consumer sentiment index based on a May survey of more than 3,000 people in nine countries.
Here are three of Salesforce’s predictions, according to a report released Tuesday:

Shoppers at the King of Prussia mall in King of Prussia, Pennsylvania, on Saturday, Dec. 4, 2021.
Hannah Beier | Bloomberg | Getty Images

Christmas in July?

Expect the under-the-bed stash of holiday gifts to start earlier.

Over the past two years, people starting shopping before Black Friday because of worries about shipping delays and depleted shelves. This year, people will be looking to stock up on discounts and beat price hikes, according to Salesforce.
Forty-two percent more shoppers worldwide and 37% more in the U.S. said they plan to start buying gifts earlier as a way to get better deals — the biggest inflation-related behavior change that Salesforce noticed in its research.
For some, that could mean Christmas shopping will start in July as people jump on deals during Amazon Prime Day and competing sales. Others might try to load up on presents as retailers including Target and Gap discount items to unload the unwanted inventory they stocked up during the pandemic.

Christmas week shoppers walk past signs offering sales at a Montebello shopping mall in Montebello, California on December 22, 2016.
Frederic J. Brown | AFP | Getty Images

Price trumps all

Cooped-up shoppers splurged from their couches during the past two holiday seasons. Now they’ll be taking a harder look at price tags − and going elsewhere if they don’t like what they see.
Value is expected to trump loyalty and convenience this holiday shopping, Garf said.
Half of shoppers are expected to switch brands to save money, according to Salesforce. That translates to 2.5 billion shoppers across the globe who might decide against a product for one that better fits their budget.
To avoid having to compete on low prices alone, Garf said retailers should generate buzz by offering exclusive or limited-quantity items, or play up trendy features, such as a product’s sustainability.
Otherwise, he said, retailers’ profits could take a huge hit if they discount too early and too often. Already, he said their profits are beings squeezed by higher costs for fuel, labor and other items.

An NFT advertisement during the CoinDesk 2022 Consensus Festival in Austin, Texas, US, on Thursday, June 9, 2022. The festival showcases all sides of the blockchain, crypto, NFT, and Web 3 ecosystems, and their wide-reaching effect on commerce, culture, and communities.
Jordan Vonderhaar | Bloomberg | Getty Images

Dear Santa, I’d like an NFT

One of this holiday season’s hot gift items won’t go in stockings or under Christmas trees.
Non-fungible tokens, or unique digital assets that are stored using blockchain technology, will be on the list for more people this year, according to Salesforce. Forty-six percent of shoppers told Salesforce they would consider gifting a virtual version of a physical item or a digital collectible.
About half a million NFTs are expected to be purchased from retailers between November and December, translating to a total market value of $54 million, according to Salesforce. Though NFTs have become more popular in recent years, some experts are still skeptical they’re a good investment.
Still, Garf compared NFTs to the popularity of savings bonds in the 1980s, with people giving bonds with the intention that they’d grow in value over the years. Think of NFTs as a high-tech spin on that, he said.

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Empowered Investor

Nearly 9 in 10 women believe money is a tool to achieve their “purpose,” according to a survey from UBS.
Almost 95% of the women polled have donated financial resources or time over the past 12 months, the findings show.
However, half of married women still defer to spouses on investing and long-term financial decisions, a trend that has continued over the past five years.

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Over the past couple of years, the effects of Covid-19, social activism and economic uncertainty have profoundly impacted women’s attitudes about their finances, according to a UBS survey.
Nearly 9 in 10 women believe money is a tool to achieve their personal “purpose,” the report uncovered, polling 1,400 women investors in January and February 2022.

“Many women have a deeper commitment than ever before to leading more purposeful, intentional lives and making a positive difference in the world,” said Carey Shuffman, head of the women’s segment for UBS. 

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Here are more stories touching on divorce, widowhood, earnings equality and other issues related to women’s investment habits and retirement needs.

“And we saw that women wanted to do that through a variety of different ways, many of which came back down to financial engagement and wielding financial power,” Shuffman said.
Indeed, nearly 95% of the women polled have donated financial resources or time over the past 12 months, according to the findings, and almost three-quarters have made purchases linked with their values. 
What’s more, most women want portfolios reflecting their values, the survey found, with 79% saying they’d like assets focused on positive environmental, social and governance impact, known as ESG. 

There’s a very clear correlation between wanting to use money to affect positive change, and then investing your money to align with those values.

Carey Shuffman
Head of the women’s segment for UBS

“There’s a very clear correlation between wanting to use money to effect positive change, and then investing your money to align with those values,” Shuffman said.

These findings are similar to a poll by Cerulli Associates showing roughly 52% of women prefer to invest in companies with a positive social or environmental impact, compared to 44% of men.
However, despite high levels of interest, adoption has been lower, with only 47% of women owning ESG investments, the UBS survey found.

Women still defer to spouses for money decisions

While most recognize the power of financial engagement, half of married women are still deferring to spouses when it comes to investing and long-term money decisions.
It’s a trend that has continued over the past five years, spanning across generations, backgrounds, race, ethnicity and profession, Shuffman said.
However, among the women who rely on their spouse for money decisions, some 90% have actively engaged in their household’s charitable giving, the survey found.  
“We really see this as a potential onramp and entry point to greater engagement,” Shuffman said.
As of 2020, U.S. women controlled nearly $11 trillion, which may reach $30 trillion by 2030, a potential wealth transfer close to the gross domestic product of the U.S., according to research from McKinsey and Company. More

Overseas travelers will only need to quarantine at a centralized facility, such as a hotel, for seven days upon arrival in mainland China, the National Health Commission announced Tuesday.
Previously, overseas arrivals in China typically had to spend 14 to 21 days in centralized quarantine, depending on the city of entry and destination within the country.
Tuesday’s announcement also said that within China, close contacts of confirmed Covid cases would likewise only need to spend seven days in centralized quarantine, followed by three days of health monitoring at home.

For more than two years, overseas travelers have had to quarantine upon arrival in China because of Covid restrictions. Pictured here at Beijing International Airport on June 18, 2022, are passengers waiting to be taken to quarantine-designated destinations.
Leo Ramirez | Afp | Getty Images

BEIJING — China cut the quarantine period for international travelers on Tuesday, a big step toward loosening Covid controls that have persisted for more than two years.
Overseas travelers will only need to quarantine at a centralized facility, such as a hotel, for seven days upon arrival in mainland China, the National Health Commission announced Tuesday. Travelers will need to spend three additional days at home before they can venture out, the commission said.

Previously, overseas arrivals in China typically had to spend 14 to 21 days in centralized quarantine, depending on the city of entry and destination within the country.
Tuesday’s announcement also said that within China, close contacts of confirmed Covid cases would likewise only need to spend seven days in centralized quarantine, followed by three days of health monitoring at home.
Previously, Covid-related isolation requirements tended to last for at least 14 days.
Mainland China reported for Monday one confirmed Covid case with symptoms — in the southern province of Guangdong — and 21 cases with no symptoms. The cities of Beijing and Shanghai reported none in either category.

Read more about China from CNBC Pro

In the last few months, some cities began to reduce the length of mandatory isolation.

The capital city of Beijing in early May had required 10 days in centralized quarantine and seven days at home, down from 14 days of centralized quarantine.
China began to tighten its borders in late March 2020 as Covid-19 started to come under control domestically while spreading rapidly overseas. Covid-19 first emerged in late 2019 in the Chinese city of Wuhan.

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Credit Suisse vows to forge ahead with its risk management overhaul, despite what its CEO called a “challenging” environment.
The embattled Swiss lender will hold an Investor Deep Dive event Tuesday, setting out reforms across its risk, compliance, technology and operations functions, along with the wealth management business.
Credit Suisse has endured a string of scandals and mishaps in recent years, and reported a net loss for the first quarter of 2022 as it continues to grapple with litigation costs.

A sign above the entrance to the Credit Suisse Group AG headquarters in Zurich, Switzerland, on Monday, Nov. 1, 2021.
Thi My Lien Nguyen | Bloomberg | Getty Images

Credit Suisse has vowed to forge ahead with its risk management and compliance overhaul in light of a string of scandals, despite what its CEO called a “challenging” environment.
The embattled Swiss lender will hold an Investor Deep Dive event on Tuesday, setting out its priorities and progress to date in reforms across its risk, compliance, technology and operations functions, along with the wealth management business.

Credit Suisse warned earlier this month that it is likely to post a loss for the second quarter, as the war in Ukraine and monetary policy tightening squeeze its investment bank.
It comes after a string of scandals and mishaps at the bank in recent years. It reported a net loss for the first quarter of 2022 as it continued to grapple with litigation costs relating to the Archegos hedge fund collapse.
The bank saw heavy losses in the wake of the meltdown of U.S. hedge fund Archegos Capital, as it severed ties to the troubled family office.
“Despite the challenging market environment, we remain firmly focused on the execution of our strategic plan during the transition year 2022 and on reinforcing our risk culture – crucially, while staying close to our clients,” Credit Suisse CEO Thomas Gottstein said in a statement ahead of Tuesday’s investor event.
“At the same time, we are continuing to drive the bank’s digital transformation, which is key to building a robust, scalable and agile organization that is fit for the future.”

In its presentation to investors, the bank outlined how the Archegos collapse highlighted weaknesses in its risk management, where “outcome sustainability deviated from historical performance.” It was also detail how it has recalibrated its aggregate risk profile to reduce exposure to higher risk areas of the market.
Credit Suisse also put forward plans to achieve 200 million Swiss francs ($209.1 million) in cost savings in each of the years 2022 and 2023 by utilizing technology, with a further 400 million francs in the medium-term.
The litany of scandals have led some shareholders to call for a change in leadership only two years since Gottstein took over from former CEO Tidjane Thiam, who resigned after a protracted spying saga.
However, Chairman Axel Lehmann told CNBC in May that CEO Thomas Gottstein has the board’s full backing to continue with the “rebuilding” of the company.
Meanwhile on Monday, Credit Suisse and a former employee were found guilty by Switzerland’s Federal Criminal Court of failing to prevent money-laundering by an alleged Bulgarian cocaine trafficking gang between 2004 and 2008. The trial was the country’s first criminal proceeding against one of its major banks.

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Sustainable Energy

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De Nora’s IPO was priced at 13.50 euros per share on Tuesday, valuing the Italian company at 2.723 billion euros, or $2.88 billion.
“It was the right time for us … we are not scared about the current market turbulences,” CEO Paolo Dellacha told CNBC.
De Nora, which is based in Milan, was founded in 1923 and specializes in electrode and water treatment technologies.  

De Nora was founded in 1923 and specializes in electrode and water treatment technologies.
Pavlo Gonchar | Lightrocket | Getty Images

The CEO of electrode maker Industrie De Nora says it is “not scared” about the current market turbulence as it braves an IPO this week.The initial public offering was priced at 13.50 euros per share on Tuesday, valuing the Italian company at 2.723 billion euros, or $2.88 billion.”It was the right time for us, we have a great equity story, so for us … it is the beginning of a new journey, and we are not scared about the current market turbulences,” CEO Paolo Dellacha told CNBC’s Julianna Tatelbaum. “We have an industrial plan to execute.”
The company is due to start trading on the Euronext Milan on Thursday, in what will be Europe’s first major IPO since the war in Ukraine began.

It comes at a volatile time for markets, with the pan-European Eurostoxx 600 down over 14% over the year to date. Traders are reacting to both the Ukrainian conflict and its global ramifications, as well as a more aggressive rate hike policy by the U.S. Federal Reserve and other central banks around the world.
De Nora, which is based in Milan, was founded in 1923 and specializes in electrode and water treatment technologies.   More

India’s stocks have not had a good first half of 2022, but stock brokerage Kotak Securities is positive on Reliance Industries and Infosys.
The Nifty 50 index and S&P BSE Sensex are both down nearly 9% since the start of the year. Reliance Industries’ stock is up around 5% in the same period, but Infosys shares have fallen around 20%.

India’s stocks didn’t have a good start in the first half of the year, but stock brokerage Kotak Securities remains bullish on two stocks.
Reliance Industries, an energy and telecommunications conglomerate, has been making a lot of small acquisitions and is “very aggressive” in converting companies into digital businesses, said Shrikant Chouhan, executive vice president and head of equity research at Kotak Securities.

“Telecom and digital will contribute a lot in the near future,” he told CNBC’s “Street Signs Asia” on Monday, adding that the company is taking steps in the right direction.
“We are expecting the stock to move towards at least 2,850 or 3,000 [rupee] in the next, maybe couple of weeks,” he said.
That represents up to 20% upside from Reliance Industries share price of 2,492.65 rupee at Monday’s close.
“Broadly, we are of the view that Reliance Industries is going to do well,” Chouhan said.
The company’s shares are up around 5% since the start of the year. India’s Nifty 50 index and S&P BSE Sensex are both down nearly 9% over the same period.

Infosys

Kotak Securities also likes Infosys, which has fallen more than 20% since the beginning of 2022.
Chouhan said the information technology company is “doing extremely well in terms of meeting the orders” from its clients for their services.
Revenue from contracts with their customers is down, but the company is going to be supported by growth in the platforms it developed, he said.
IT companies have come under pressure, but Infosys is trying to recover, Chouhan said.
“We are of the view that they’re going to be well because they are professional and they have seen these cycles many times in the past,” he added.
Disclosures: Kotak Securities has financial interest in Infosys.

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