Raphael Stevens

Mandatory Covid-19 restrictions are unlikely to be reintroduced in Britain this summer, health researchers and physicians have said, even as the country enters a new wave of infections.
More than 1.7 million Brits, or around 1 in 35 people, tested positive for Covid in the week to June 18 — up 23% from the week prior.
It comes ahead of a summer of large-scale musical and sporting events in Britain, which could lead to a further uptick in cases.

More than 1.7 million Brits — or around 1 in 35 people — tested positive for Covid in the week to June 18, the latest data from the U.K.’s Office for National Statistics showed Friday.
Adrian Dennis | Afp | Getty Images

LONDON — Mandatory Covid-19 restrictions are unlikely to be reintroduced in Britain this summer, health researchers and physicians have said, even as the country enters a new wave of infections.
More than 1.7 million Brits — or around 1 in 35 people — tested positive for Covid in the week through to June 18, the latest data from the U.K.’s Office for National Statistics showed Friday.

The surge marks a 75% increase from two weeks prior when the country commemorated Queen Elizabeth II’s Platinum Jubilee. It also comes ahead of a summer of large-scale musical and sporting events, which could push cases higher still.
Yet, health researchers and physicians say they don’t foresee a return to obligatory public health measures unless there is a major shift in the virus’ behavior.
“I don’t think we will have any mandatory restrictions unless the situation looks unmanageable for the health service, and especially the critical care service,” Simon Clarke, associate professor in cellular microbiology at the University of Reading, told CNBC Monday.
The majority of new infections are being driven by omicron BA.4 and BA.5, two newer variants that have now become the dominant strains in Britain, the U.K. Heath Security Agency said Friday.
Though both have been designated “variants of concern,” scientists say there is currently no evidence to suggest either cause more serious illness than previous strains, and they are unlikely to behave drastically differently.

Any shift in approach, if it were to happen, would be if intensive care units were to come under significant pressure, Clarke said. Hospitalizations were up 8.2% over the past week, but ICU and high dependency unit admission rates have so far remained low at 0.2%, according to UKHSA.
“ICU is the bottleneck on this, and that’s where you’re going to see — if you see it — an inability to cope,” Clarke said.

‘Living with Covid’

The U.K. government has been committed to its strategy of “living with Covid” since all restrictions were lifted in England in February this year.
Last week, England’s former deputy chief medical officer, Professor Jonathan Van-Tam, said that the virus had become increasingly like the seasonal flu and that the onus was now on individuals to “frame those risks for themselves.”
“In terms of its kind of lethality, the picture now is much, much, much closer to seasonal flu than it was when [Covid] first emerged,” he told BBC Radio 4’s “Today” program.
Scotland’s national clinical director echoed those comments Sunday, telling the BBC that it would take a “dramatic” change for mandatory restrictions to be brought back.
“People are going back about their business. Glastonbury is on, TRNSMT is on next week,” Professor Jason Leitch said, referring to two U.K. music festivals in Somerset and Glasgow, respectively. “All of those things are really, really important to get back.”
However, he conceded that people would need to accept a few “small prices” to ensure normality continues, such as keeping up-to-date with vaccinations, wearing face coverings where appropriate and staying off work when sick.
The government has already committed to providing additional booster vaccinations to over-65s, frontline health and social workers and vulnerable younger people this autumn.
However, Clarke said it would be prudent to extend the program to over-50s ahead of the winter months when the country could face a more severe spike in infections.
“The immunity from boosters is already beginning to wane and will do more so by the end of the year,” Clarke said, adding that that could be the more important period to watch in terms of restrictions.
Britain’s Health Secretary Sajid Javid suggested last week that the government may be considering expanding the program.

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Nike posted better-than-expected sales and profit for its fiscal fourth quarter.
In the three-month period, inventory rose 23% versus the year-ago period, driven by longer lead times from ongoing issues in the supply chain.
“We continue to closely monitor consumer behavior, and we’re not seeing signs of pullback at this point in time, and so we continue to execute the strategy, and the plan we have which is working,” Nike’s CFO Matthew Friend said.

Nike Air Jordan shoes are seen in the store in Krakow, Poland on August 26, 2021.
Jakub Porzycki | Nurphoto | Getty Images

Nike on Monday said demand for sneakers and sportswear largely held up in the fiscal fourth-quarter, despite a Covid lockdown in China and a tougher consumer environment in the U.S.
But the company said challenges such as higher transportation costs and longer shipping times are persisting.

Shares fell about 3% in aftermarket trading, despite the company topping Wall Street’s earnings and sales expectations.
Nike anticipates first-quarter revenue will be flat to slightly up versus the prior year, as it continues to manage Covid disruption in Greater China. It said it anticipates full-year revenue will grow by low double-digits on a currency-neutral basis.
Chief Financial Officer Matthew Friend said Nike factored elevated ocean freight costs, increased product costs, supply chain investments and higher levels of markdowns into its forecast.
On a call with analysts, he said the company is “optimistic” as it enters the new fiscal year. He said production has surpassed prepandemic levels and inventory is “flowing again into our largest geographies.”

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“We continue to closely monitor consumer behavior, and we’re not seeing signs of pullback at this point in time, and so we continue to execute the strategy and the plan we have, which is working,” he said.

Here’s how Nike did in its fiscal fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: 90 cents vs. 81 cents expected
Revenue: $12.23 billion vs. $12.06 billion expected

The company reported net income for the three-month period ended May 31 of $1.44 billion, or 90 cents per share, compared with $1.51 billion, or 93 cents per share, a year earlier.
Sales dropped to $12.23 billion from $12.34 billion a year earlier.
Nike is in the middle of a strategy shift, as the company sells more merchandise directly to shoppers and trims back the amount sold by wholesale partners such as Foot Locker. Its direct sales grew 7% to $4.8 billion in the quarter versus the year-ago period. Nike’s wholesale business trends were the opposite. Sales in that division dropped 7% to $6.8 billion.
In North America, Nike’s largest market, total sales fell by 5% to $5.11 billion in the fourth quarter.
In Greater China, its sales took a bigger hit due to lockdowns. Total sales in the country dropped by 19% to $1.56 billion versus $1.93 in the year-ago period.
Yet Friend said the declines have to do with fleeting factors, not shopper loyalty and desire for Nike products. For three consecutive quarters, he said, consumer demand has exceeded available inventory. Now, he said, supply is finally normalizing.
Nike faces a complex backdrop, however. As the prices of gas, groceries and more rise, some consumers may skip over discretionary items or trade down to lower-priced brands. Nike’s direct sales strategy comes with risk if its rivals wind up with more shelf space and higher sales at wholesale retailers. And as supply chain challenges continue, merchandise can get stuck in the wrong spot or arrive too late.
The company is paying about five times the rate it paid prepandemic to put product in a container on a boat and move it from Asia to the U.S., Friend said. He said transit times are about two weeks longer than prepandemic.
In the three-month period, inventory rose to $8.4 billion — up 23% versus the year-ago period — driven by longer lead times from ongoing disruptions in the supply chain.
Shares of Nike closed on Monday at $110.50, down 2.13%. As of Monday’s close, Nike shares are down about 34% so far this year. It’s underperformed the S&P 500, which is down about 18% during the same period. The company’s market value is $173.9 billion.
Nike said its board authorized a new four-year, $18 billion stock buyback program this month. It will replace the company’s $15 billion share buyback program, which will end in the coming fiscal year.
Read the company’s earnings release here.

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U.S. Commerce Secretary Gina Raimondo told CNBC’s Jim Cramer on Monday that she believes GlobalWafers will follow through on its plan to build a silicon wafer factory in Texas, but only if Congress passes the CHIPS for America Act by the time the August recess begins.
“This investment that they’re making is contingent upon Congress passing the CHIPS Act. The CEO told me that herself, and they reiterated that today,” Raimondo said in an interview on “Mad Money.”

U.S. Commerce Secretary Gina Raimondo told CNBC’s Jim Cramer on Monday that she believes GlobalWafers will follow through on its plan to build a silicon wafer factory in Texas — but only if Congress passes funding for the CHIPS for America Act by the time the August recess begins.
“This investment that they’re making is contingent upon Congress passing the CHIPS Act [funding]. The CEO told me that herself, and they reiterated that today,” Raimondo said in an interview on “Mad Money.”

“It has to be done before they go to August recess. I don’t know how to say it any more plainly. This deal … will go away, I think, if Congress doesn’t act,” she added.
GlobalWafers, a Taiwan-based semiconductor silicon wafer firm, said Monday that it plans to build a facility to produce the component in Sherman, Texas. The facility could create up to 1,500 jobs and produce 1.2 million wafers a month, according to the U.S. Commerce Department.
The CHIPS (Creating Helpful Incentives to Produce Semiconductors) for America Act incentivizes investment in the U.S. semiconductor industry. While it was passed in January 2021, a funding package has not been approved by Congress.
Supply chain snarls have kept a variety of industries, most notably the automotive industry, from being able to secure semiconductor chips, all while demand soars. 
“Semiconductor demand is going to double in the next 10 or 11 years. It takes a couple of years to get a new facility up and running, which means these companies have to make their decisions now. GlobalWafer has made the announcement today because they need to have the cement in the ground at the facility in November,” Raimondo said.

The commerce secretary, who has previously rallied for Congress to support a more robust American semiconductor industry to rely less on foreign suppliers, reiterated that time is of the essence.
“It’s time, I think, for people to get much more practical. … Everyone has to realize you’re not going to get everything you want. We have to winnow this down to the essential items, get this passed and move quickly,” she said.
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CNBC’s Jim Cramer on Monday told investors that while the market has yet to overcome the challenges threatening to create a recession, FedEx stock might be able to weather the turbulence.
“This company’s taking control of its own destiny. … I think you could do a lot worse,” he said.

CNBC’s Jim Cramer on Monday told investors that while the market has yet to overcome the challenges threatening to create a recession, FedEx stock might be able to weather the turbulence.
“You might think FedEx would be a helpless victim of high gas prices, potential e-commerce plateau, a [Federal Reserve]-mandated slowdown. That would be wrong. This company’s taking control of its own destiny. … I think you could do a lot worse,” he said.

The “Mad Money” host said that while FedEx has struggled with supply chain disruptions and performing as well as it did during the height of the pandemic, the company is on the up and up.
FedEx reported mixed results in its latest quarter last week, beating slightly on earnings but missing on revenue, according to Refinitiv estimates. The company also issued a cheerful full-year guidance, projecting an increase in adjusted earnings. 
The transportation company also raised its dividend from 75 cents to $1.15.
“Companies don’t put through a 53% dividend boost when they’re worried about making their next quarter,” Cramer said. 
“Don’t forget, this is a market that only values profitable companies that reward their shareholders with dividends and buybacks,” he added.

Shares of FedEx fell 1.14% on Monday.
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Envoy Air pilots will get triple pay if they fly open trips from July 2 to 31.
American Airlines’ regional subsidiaries earlier this month agreed to a temporary 50% pay increase for pilots.
Airlines and travelers are struggling with numerous flight delays this summer amid staffing shortages.

American Airlines Embraer ERJ-145 regional jet aircraft as seen on final approach landing at New York JFK international airport in NY, on February 13, 2020.
Nicolas Economou | Nurphoto | Getty Images

American Airlines’ regional carrier Envoy Air is offering pilots triple pay to pick up trips for most of next month, an effort the airline says will help it avoid flight disruptions during the peak summer travel season.
“Super critical coverage has been declared for” July 2 to 31 for all bases, according to a note sent to Envoy pilots on Monday that was seen by CNBC. “Any open time flown during this time frame will be paid at 300%. Thank you in advance for your help.”

Ric Wilson, vice president of flight operations for Envoy, said although the triple pay is applicable throughout July, it doesn’t necessarily mean open trips are available for pilots each day.
“We are into our peak flying season and we want to ensure that we can operate dependably for our customers,” Wilson said.
The airline said in a statement that it “has had an extraordinary completion factor for the month of June,” referring to completed flights.
“As part of the proactive strategy to run a reliable schedule during the peak summer travel season, Envoy is offering pilots triple pay to pick up uncovered trips on their days off in the month of July,” the carrier said. “This will only be offered if there are open trips available, and currently Envoy is fully covered with its flight schedule this summer.”

The approaching Fourth of July holiday weekend will be a test for airlines that have struggled to tamp down delays amid staffing shortages.
American’s regional subsidiaries ⁠— Envoy, Piedmont and PSA ⁠— earlier this month said they were giving pilots a temporary 50% pay increase through August 2024 to help alleviate a pilot shortage that airlines say have forced them to cut routes.

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It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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Upstart Holdings Inc: “I didn’t want to see any actual interest rate risk on their balance sheet, and right now, they have some.”

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Silk Road Medical Inc: “It could be good, but we’re not recommending any stocks of companies that are not making money right now.”

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Bank of America Corp: “It’s better to go after Morgan Stanley. I think that’s the better buy.”
Disclosure: Cramer’s Charitable Trust owns shares of Morgan Stanley.

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A federal criminal investigation is threatening the proposed merger between former President Donald Trump’s social media enterprise and a SPAC.
Digital World Acquisition Corp. revealed in a filing Monday that it — along with its board of directors — had received subpoenas from a federal grand jury.
The company was already under investigation by the Securities and Exchange Commission.

Former U.S. President Donald Trump applauses during the National Rifle Association (NRA) annual convention in Houston, Texas, U.S. May 27, 2022. 
Shannon Stapleton | Reuters

A federal criminal investigation is threatening the proposed merger between former President Donald Trump’s social media enterprise and a special purpose acquisition company, a deal that would give the combined company access to billions of dollars in public markets.
That company, Digital World Acquisition Corp., revealed in a securities filing Monday that it became aware on June 16 that each member of its board of directors received subpoenas from a federal grand jury in New York.

The grand jury wants similar documents that the Securities and Exchange Commission had been seeking in its already disclosed civil probe, DWAC said. The company itself received a subpoena Friday with similar requests, along with other requests relating to communications, individuals and information involving Rocket One Capital.
DWAC also revealed Monday that a board member, Bruce J. Garelick, had told management that he would resign from the board last Wednesday. Garelick said his resignation “was not the result of any disagreement with Digital World’s operations, policies or practices,” according to the company filing.
Garelick is listed as chief strategy officer for Rocket One Capital. He didn’t immediately respond to CNBC’s request for comment. Rocket One’s website was effectively blank Monday morning, saying: “Site will be available soon. Thank you for your patience!”
DWAC warned that the subpoenas and the probes by the SEC and the U.S. Department of Justice could delay or even prevent its merger with Trump’s social media company. Shares of the company fell more than 8% to about $25 on Monday morning. The stock had skyrocketed above $90 in October after the deal with Trump’s group was announced.
DWAC didn’t immediately respond to a request for comment.

The development is the latest political headache for Trump. Evidence being presented in the public hearings held by the House committee probing the Jan. 6, 2021, pro-Trump assault on the Capitol is increasing scrutiny over the former president’s alleged role in plots to overturn the results of the 2020 election. He is considering jumping into the 2024 White House race, as well.
The Trump Media & Technology Group announced in October that it had agreed to merge with DWAC with the end goal of the namesake company “becoming a publicly listed company, subject to regulatory and stockholder approval.” That merger would grant Trump’s company and its social media platform, Truth Social, over $1 billion in capital and its own stock market listing. Shares of DWAC surged at that time.
Trump Media didn’t immediately reply to a request for comment.
The company is led by former GOP Rep. Devin Nunes, who was one of Trump’s most loyal defenders in Congress. Trump Media’s Truth Social has already launched. The former president founded it as an alternative to Twitter, which banned him over his tweets on Jan. 6 as he continued to push the false narrative that the election was stolen from him.
The disclosures mark the latest hiccup for the SPAC, a type of shell company created to raise capital in public equity markets with the ultimate goal of purchasing or merging with a private firm.
Truth Social and its planned tie-up with DWAC hit snags from the start.
One of the first criticisms came from Sen. Elizabeth Warren, D-Mass., who urged SEC Chair Gary Gensler in November that DWAC “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information in [SEC] filing and other public statements.”
Shares of DWAC have lost more than half their value in 2022. That’s far worse than the broader market’s poor performance this year: The S&P 500 has declined about 18% over the same period.
— CNBC’s Thomas Franck contributed to this article.

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