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    American Airlines CEO vows to improve pilot pay as wages at other carriers rise

    American Airlines is in the middle of contract negotiations with its roughly 14,000 mainline pilots.
    Two of the carrier’s regional airlines, Envoy and Piedmont, just extended two-year pay hikes of 50% to ward off a pilot shortage.
    Other airlines, including JetBlue, Southwest, Alaska and Delta, are in contract talks with pilot unions.

    FILE – American Airlines President Robert Isom speaks at a news conference about the company’s new partnership with Alaska Airlines, Thursday, Feb. 13, 2020, in Seattle. American Airlines CEO Doug Parker will retire next March and be replaced by the airline’s current president, Robert Isom.
    Elaine Thompson | AP

    American Airlines CEO Robert Isom said this week that the company will revise its pay proposals for its 14,000 pilots, acknowledging pay standards have increased since the company made its most recent offer before the pandemic.
    The Fort Worth, Texas-based airline had previously floated a 4% date-of-signing increase plus 3% annual raises after that. Then Covid-19 roiled the industry and put talks between carriers and labor unions throughout the industry on hold.

    “It was industry-leading at the time we proposed it,” Isom said in a video message to pilots posted Monday, which CNBC reviewed. “As the pandemic wanes, the standard for compensation has gone up.”
    Isom’s message came days after two of American’s subsidiaries, regional carriers Piedmont and Envoy, extended big raises to its pilots, including a temporary 50% pay hike through the end of August 2024, in hopes of easing a pilot shortage that has curbed growth plans.
    United Airlines last month became the first major carrier in the pandemic to reach a contract deal with its pilots’ union, the Air Line Pilots Association. Union leadership is set to vote on that agreement next week. If passed, it will go to pilots for a vote.
    “We will take other carriers’ ratified agreements, including United’s, into account and update our pay proposals quickly when details are known,” Isom said. “Our team will be paid well and be paid competitively. You are not going to fall behind network peers.”
    American’s pilots and those at other carriers, including Delta’s, have picketed in recent months to protest the grueling schedules airlines have sold to capitalize on the rebound in travel demand.

    Dennis Tajer, spokesman for the Allied Pilots Association, American’s pilots’ union, said the company has to do more than raise wages.
    “There is no work-life balance,” he said Wednesday.
    Without providing details, Isom said American’s new proposal will include better benefits and quality-of-life provisions.

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    Millionaires are raising cash on fears that the Fed can't tame inflation and stave off recession

    Millionaires surveyed by CNBC ranked inflation as the top risk to both the economy and their personal wealth.
    Millionaires are divided on the Fed’s ability to slow inflation or reduce demand without causing a recession.
    More than a quarter of millionaires believe the U.S. is already in a recession, and an additional 34% said the U.S. will tip into recession this year.

    Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 9, 2022. 
    Brendan Mcdermid | Reuters

    American millionaires are raising cash in response to lingering inflation fears, according to CNBC’s Millionaire Survey.
    Millionaires surveyed by CNBC ranked inflation as the top risk to both the economy and their personal wealth. It’s the first time since the survey began in 2014 that inflation has edged out all other risks in the ranking. Forty-two percent of millionaires said inflation will last “at least a year or two,” and an additional 19% said it would last more than two years, according to the results.

    The survey includes investors with at least $1 million in investible assets. It was conducted in May and surveyed approximately 750 respondents who reported that they are the financial decision-makers or share jointly in financial decision-making within their households. Since the survey was conducted, a readout of consumer prices found inflation accelerated further last month and the S&P 500 slipped into a bear market, more than 20% off its recent highs.
    “Clearly, there is a shift to a very pessimistic concerned outlook,” said George Walper, president of Spectrem Group, which conducts the CNBC Millionaire Survey. “They are not confident that the Federal Reserve can handle these problems.”
    The Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points.
    Millionaires are divided on the Fed’s ability to slow inflation or reduce demand without causing a recession, according to the survey. Thirty-five percent said they are “not at all confident” in the Fed’s ability to manage inflation, while nearly half said they are “somewhat confident.”
    Views of the Fed diverge largely along political affiliation: Most Republican millionaires said they are “not at all confident” in the Fed’s ability to manage inflation, while most Democratic millionaires said they are “somewhat confident.”

    More than a quarter of millionaires believe the U.S. is already in a recession, and an additional 34% said the U.S. will tip into recession this year. Only 21% said the U.S. is not headed for a recession.
    “They’re very clearly concerned about a recession, and we’ll only know in six months whether we’re in one now,” Walper said.
    Millionaires own about 90% of the individually held stocks in the U.S. So far, they aren’t panicking or selling, according to the survey. But most are raising more cash and moving more money into short-term fixed income investments given rising interest rates.
    Nearly 40% of millionaires said they plan to make changes to their portfolio or have already made changes due to inflation, 44% said they have kept more money in cash, and 41% say they have purchased more fixed-rate investments. Of those surveyed, 35% said they have purchased equities, and 31% said they have sold equities due to inflation and its impact on certain sectors and stocks.
    Wealthy investors are typically among the first to take advantage of market declines and buy during major ones since they can afford to be more aggressive. Yet so far, millionaires show little sign of buying the recent market declines, suggesting they see more pain ahead for markets and interest rates.
    “When volatility slows down and people feel like we’re near a bottom, this is the group that makes moves and looks for distressed opportunities and good values,” Walper said. “They did it in April of 2020. But we’re not seeing that now. They don’t see this ending anytime soon.”
    Fifty-eight percent of millionaires expect the economy to be weaker or “much weaker” by the end of the year, according to the survey. Most also expect the S&P 500 to end the year down double digits: More than half of those surveyed expect the S&P to be down at least 10%, while nearly one in five respondents expect it to be down at least 15%.
    Millionaires have also ratcheted down their expectations for their own investment returns — though they’re still more bullish on their returns than the overall market. One in four of those surveyed expects to post negative returns, and a majority expects returns of less than 4%.
    Last year half of millionaires surveyed expected returns at least 6%.

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    These could be the next hot food and drink trends

    The Summer Fancy Food Show, held Sunday through Tuesday at the Javits Convention Center in New York, returned for the first time since 2019.
    The trade show has gained a reputation for being the place to spot the next big flavors and foods.
    Pasta in new shapes and flavors and vinegar shrub drinks were some of the standout trends.

    Pasta is coming back in different shapes and flavors, drinking vinegar is cool, and comfort food favorites like pancakes are being made with new ingredients.
    That’s according to the hundreds of items on display at the Summer Fancy Food Show, a trade show that has gained a reputation for being a place to spot the next big flavors and foods that will dominate restaurant menus and grocery store shelves. The show returned for the first time since the pandemic this week, running Sunday through Tuesday at the Jacob K. Javits Convention Center in New York.

    More than 1,800 exhibitors displayed specialty food and drinks for restaurant owners, foodservice operators and other industry players. The trade show, which is hosted by the Specialty Food Association, in the past has featured up-and-coming trends including fermented foods, floral flavors and packaged snacks made with cauliflower.
    Here are some highlights from this year’s show spotted by the trade group and CNBC:

    Pasta revamped

    Carbone’s booth at the 2022 Summer Fancy Food Show highlighted its new line of pasta sauces
    Amelia Lucas | CNBC

    Pasta is back − but in flavors and shapes people likely haven’t tried before.
    The SFA’s trend spotters said new noodle shapes are hitting the U.S. market, such as cascatelli, a j-shaped pasta with ridges. Pasta makers are also experimenting with different flavors and ingredients. Greenomic Deli, for example, showed off cacao-infused pasta as part of its Good Hair Day line.
    After years of lagging sales growth, noodles in general are staging a comeback, according to the SFA’s preliminary trend report for the trade show. People who had cut back on carbs started eating pasta again during the pandemic as they cooked more at home and sought comfort food.

    Plant-based comfort foods

    Rind’s vegan cheese tasting display at the Summer Fancy Food Show
    Amelia Lucas | CNBC

    The latest plant-based foods aren’t milk or meat substitutes. Instead, they’re about giving people another way to indulge in comfort foods, according to the SFA.
    The up-and-coming category is meant to appeal to people who want plant-based versions of their favorite snacks and treats. Whoa Dough showed off vegan cookie dough bars with four grams of protein at its table, while Rind displayed plant-based cheeses that mimic the richness of blue and camembert cheese. Bean Bops presented its crispy fava beans, with packaging that touts its protein content.

    Pancakes

    Happy Grub’s squeezable instant pancake mix on display at the 2022 Summer Fancy Food Show
    Amelia Lucas | CNBC

    One comfort food seemed to get extra attention from exhibitors: pancakes.
    Companies presented their takes on the breakfast favorite, playing with both packaging and ingredients. Happy Grub presented its squeezable instant pancake mix, designed for parents and children to use together. Jus Chill International’s pancake mix swaps out traditional all-purpose flour for a flour made from breadfruit, a starchy tropical fruit it sources from Jamaica.

    Vinegar shrub drinks

    Tait Farm Foods’ Sofi award-winning shrub
    Amelia Lucas | CNBC

    Wellness culture introduced shots of apple cider vinegar to many Americans’ daily routines. Now some companies are trying to balance vinegar’s health benefits with its sharp flavor.
    One way is by reviving shrubs, a once-popular drink that mixes vinegar syrup with fruit and sparkling water or spirits. Its popularity in the U.S. peaked in the colonial era then waned as refrigerators became increasingly common in homes. Shrubs started popping up again in cocktail bars over the last decade, and now drink makers are taking notice.
    Tait Farm Foods said its shrubs can be used as a cocktail or mocktail mixer. Newcomer Shrubbly Superdrink showed off its shrubs that add fruit, herbs, spices and apple cider vinegar to its sparkling water base.

    Spirits-inspired flavors

    A display of Santa Sofia’s agave vinegar at the trade show
    Amelia Lucas | CNBC

    Cocktails and food culture have always gone hand-in-hand, but now the relationship might be getting even more intertwined.
    Santa Sofia, for example, showed off its agave vinegar, designed to be used in salad dressings or sprinkled on potato chips. It doesn’t contain any alcohol, but the vinegar is made using fermented agave, giving it a flavor reminiscent of tequila. Agave-based spirits have been soaring in popularity in recent years, and tequila is expected to overtake vodka as the most popular liquor category in the U.S. this year.
    Andres Confiserie Suisse, a chocolate maker based in Kansas City, Missouri, stuck with the more classic whiskey flavor for its whiskey caramel chocolate drops, which are made in collaboration with a local distiller and can be eaten solo or dropped into hot chocolate or coffee.

    Food with extra benefits

    Beyond Resilience’s table showed off its chocolate-flavored spreads
    Amelia Lucas | CNBC

    The association said foods with added benefits are another trend to watch. The pandemic has heightened people’s desire to strengthen their immune systems, and snack makers are adding ingredients they say have benefits like anti-aging.
    Austrian company Beyond Resilience, for example, showed off an array of “nutricosmetics,” which are functional foods that contain ingredients believed to help improve hair, skin and nails. Its products included chocolate-flavored protein spreads that contain biotin and amino acids.

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    The construction industry remains horribly climate-unfriendly

    Covid-induced lockdowns may have upended the world of work, but they have not killed the skyscraper. Even as workers stay home to avoid the commute, cities’ penchant for these concrete marvels of engineering continues unabated. In midtown Manhattan, JPMorgan Chase has knocked down its old headquarters in favour of a new glass tower that will rise 18 storeys higher. Across the city, more than a dozen supertall structures—which rise higher than 300m—are in the works. In London, where gleaming new landmarks are given irreverent nicknames such as “Walkie Talkie” or “The Gherkin”, more than 200 towers have transformed the skyline since 2009. The construction frenzy is not limited to big cities. By one estimate, the planet will add floor space the size of New York City every month until 2060. Some worry that this pace of construction could literally cost the Earth. Today, buildings are responsible for almost 40% of global energy-related carbon emissions, with homes alone accounting for nearly 20%. Property emissions are a combination of two things. The first is the day-to-day running of a building: energy used to light up, heat or cool homes, office blocks and shopping malls. The carbon produced in this way is “operational”, in the vernacular, and accounts for 27% of all annual carbon emissions globally. The other type is “embodied” carbon, which refers to emissions tied to the building process, maintenance and any demolition. Overall, embodied carbon is responsible for around 10% of annual emissions, though it will vary depending on the type of building.Worryingly, the carbon footprint of buildings is growing. On the current path, carbon emissions related to buildings are expected to double by 2050. It is true that in 2020 emissions from managing property fell, after hitting a record high in 2019, according to the Global Alliance for Buildings and Construction (Globalabc), an industry body. But that was mostly owing to lockdowns, which lowered emissions from all sorts of other activities too. Efforts to build greener played a minimal role. Worse still, advances in building energy efficiency are stalling. The global rate of annual improvement fell by half between 2016 and 2019, according to Globalabc’s tracker, which measures indicators such as incremental investment in the energy performance of buildings, along with the share of renewable-energy use. Policymakers are scrambling to find solutions. New energy-efficiency standards for buildings in England and Wales mean that one in ten offices in central London risks becoming obsolete in 2023. Nearly 60% could become unusable by 2027. Across the eu, where nearly two-thirds of the building stock relies on fossil fuels for heating and cooling, officials want nearly half of a building’s energy to come from renewable sources by 2030. Cities are setting lofty targets, too. New York is aiming for carbon-free electricity by 2040; Los Angeles, for zero-emissions buildings by 2050. Hot propertyHomeowners are also being urged to go green. In Britain energy-performance requirements for new homes will be dramatically tightened from 2025. In Italy the government has pledged to cover the full cost of green renovations, plus an extra 10% to incentivise those still unsure about switching, through tax deductions of up to €100,000 ($104,000) per home. More than €21bn has been paid out since the scheme was launched in July 2020.Even so, progress is slow. To meet the goals of the Paris climate agreement, global emissions must hit net zero between 2050 and 2070. Today, less than 1% of buildings are net-zero. Nudging homeowners is proving challenging. Total greenhouse-gas emissions for American houses have fallen by 2% since 2005, versus the 7% that would be consistent with the Paris agreement, according to Citigroup, a bank. This is mirrored in many big economies. In Britain the CO2-equivalent emissions of homes fell by around 1m tonnes between 2018 and 2019—less than half the cuts made by the transport sector. Three obstacles make it harder to build sustainably. First, the property industry has focused almost entirely on making buildings more efficient to run at the expense of embodied carbon emissions. As a result, little progress has been made on monitoring and restricting embodied carbon. Britain, for example, has passed legislation requiring new homes to produce at least 75% less carbon from 2025. Yet it places no limits on the upfront carbon emissions needed to build or dispose of them.There are exceptions. The Netherlands has required whole-life carbon assessments for some large buildings since 2013. California imposes carbon-intensity limits on certain construction materials. For now, embodied carbon accounts for a smaller share of global emissions than the operational sort. But that will change as buildings become more energy-efficient. In many modern buildings, embodied carbon already represents as much as half of total lifetime emissions. The second hurdle is the indestructible appeal of the wrecking ball. The building sector would sooner knock down a structure than reuse it, resulting in a carbon-intensive cycle of demolition and construction. This is partly because the costs of revamping properties often exceeds their value. Tax structures across the rich world incentivise demolition over reuse. For example, until March 2022 most new buildings in Britain were exempt from value-added tax, while most renovation and repairs were liable for vat at 20%. vat has since been scrapped on some energy-efficiency measures but will rise from 2027.This economic model is costly for the planet. Construction gobbles up nearly all of the world’s cement, half of all steel production and around a quarter of aluminium output and plastics, all of which spew vast amounts of emissions a year. In the process, construction generates around a third of the eu’s waste, measured by weight. In Britain construction, demolition and excavation amounts to nearly two-thirds of all waste produced. Pockets of the sector are innovating. Startups, venture capitalists and some cement-makers are all looking either to replace concrete or to make it greener. New methods such as modular construction, which reduces waste by assembling components in a factory before moving them on-site, are also gaining traction. Nearly half of new homes in Finland, Norway and Sweden are factory-built. Yet the overall pace of innovation is desultory, because of a third obstacle: the chronically underwhelming productivity of the construction sector as a whole. Global productivity growth in the industry has long lagged behind that of the wider economy. Building methods for new homes have barely evolved in over a century. At the same time, the pandemic has exacerbated long-standing labour shortages in construction. The sector was already struggling to produce enough tradespeople skilled in building sustainably. Meanwhile, calls to go green will only grow more urgent. Population growth and voracious demand for housing mean the size of the built environment is expanding at a faster rate than efforts to slash energy use. An explosion of new buildings in China, South-East Asia and Africa will continue to fuel construction. In these places, more than half of all buildings that will exist 30 years from now have not yet been built. If the world is to reach net-zero emissions, the construction sector will need to make enormous strides—and fast. ■For more expert analysis of the biggest stories in economics, business and markets, sign up to Money Talks, our weekly newsletter. More

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    U.S. safety agency says Tesla accounts for most driver-assist crashes, but warns data lacks context

    Led by Tesla, auto companies have reported nearly 400 crashes involving advanced driver-assist systems, according to federal data released Wednesday.
    Federal safety officials stressed that the data is not meant to indicate whether one system is safer than another.
    The data is meant to be a guide to quickly identify potential defect trends and assist in determining how such systems are affecting the safety of vehicles, officials said.

    The NTSB released this image of a 2021 Tesla Model 3 Long Range Dual Motor electric car that was involved in a fatal accident near Miami that killed two people on Sept. 13, 2021.

    Tesla vehicles have accounted for nearly 70% of reported crashes involving advanced driver-assist systems since last June, according to federal figures released Wednesday. But officials warned that the data is incomplete and isn’t meant to indicate which car maker’s systems might be safest.
    The National Highway Traffic Safety Administration said the first-of-its-kind data doesn’t yet have proper context and is only meant to be a guide to quickly identify potential defect trends and help determine whether the systems are improving the safety of vehicles.

    “I would advise caution before attempting to draw conclusions based only on the data that we’re releasing. In fact, the data alone may raise more questions than they answer,” NHTSA Administrator Steven Cliff said during a media event.
    According to the data, Tesla cars represented 273 accidents involving its advanced driver-assist systems since companies were required to start reporting the incidents roughly a year ago. That’s out of 392 crashes reported overall by 11 automakers and one supplier from June 2021 through May 15.
    Honda was second with 90 reported accidents, followed by Subaru at 10 and Ford Motor at five. All other companies reported four or less accidents, including Toyota at four, BMW at three and General Motors at two.
    The data release is the first since the government began mandating in June 2021 that companies report incidents involving “Level 2” advanced driver-assist systems, which are meant to help an attentive driver but not replace them. They include Tesla’s systems such as Autopilot and GM’s Super Cruise.
    The data does not take into context factors such as the number of vehicles automakers have made, the number of vehicles they have on the road or the distances traveled by those vehicles. When and how much data companies provided also varies, meaning much of it is incomplete.

    For example, crashes involving advanced driver-assist systems have resulted in at least six fatalities and five serious injuries, according to the data. However, whether there were injuries in a majority of the crashes – 294 of them – is unknown, meaning there are likely more.
    “This is an unprecedented effort to gather nearly real time safety data involving these advanced technologies,” Cliff said. “Understanding the story that the data tell will take time as most of NHTSA’s work does but it’s a story we need to hear.”

    Tesla

    While Tesla cars with the company’s “Autopilot” technology had the most accidents, it’s believed the company also has the most number of vehicles with such systems on the road. Its systems also tend to offer greater capabilities and are allowed to operate in more areas than other systems.
    Tesla’s systems are marketed under the brand names Autopilot, Full Self Driving and Full Self Driving Beta in the U.S.
    Tesla’s celebrity CEO Elon Musk recently on Twitter said that the company’s latest version of FSD Beta would be rolling out to 100,000 cars. The company did not immediately respond to a request for comment.
    According to the Associated Press, Tesla has more vehicles with partly automated systems operating on U.S. roads than most other automakers do — roughly 830,000, dating to the 2014 model year. And it collects real-time data online from vehicles, so it has a much faster reporting system. That compares to GM, which has reportedly sold more than 34,000 vehicles since the debut of its “Super Cruise” system in 2017.
    The NHTSA has intensified its focus and investigations on Tesla because of the company’s aggressive expansion of advanced driver-assist systems, including prototype software for Tesla owners.
    In February, Tesla said it would recall software from 53,822 of its Model S, X, 3 and Y vehicles in the U.S. to eliminate a feature that lets cars automatically roll past stop signs. The cars featured a relatively new version of the company’s Full Self-Driving Beta software.
    That program gives Tesla drivers early access to new features that aren’t completely debugged yet, including “autosteer on city streets,” which let drivers automatically navigate around complex and crowded urban environments without moving the steering wheel with their own hands. Despite the name, Full Self-Driving Beta does not make Tesla vehicles autonomous.

    Ongoing data collection

    Release of the data comes nearly a year after the NHTSA issued an order requiring automakers and operators of vehicles equipped with advanced driver assistance or automated driving systems to immediately report crashes.
    NHTSA also released a separate report on higher-level systems, known as automated driving systems, that can include the vehicles largely driving themselves. Most of these systems are still being tested and not available to the public, but some companies such as Alphabet’s Waymo and GM’s majority-owned Cruise have opened operations to the public.
    NHTSA says there have been 130 reported automated driving system crashes from June 2021 to May 15. Waymo, at 62, had the most. It was followed by Transdev Alternative Services at 34, and Cruise at 23 (excluding 16 crashes reported separately by GM). Twenty-five companies reported crashes. They ranged from traditional automakers to Apple, which has reportedly been working on such a vehicle for years.
    The agency plans to release data updates monthly regarding the systems.
    – CNBC’s Lora Kolodny contributed to this report.

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    Bill Gates says crypto and NFTs are '100% based on greater fool theory'

    Microsoft co-founder Bill Gates said he thinks cryptocurrencies and NFTs are “100% based on greater fool theory.”
    “Expensive digital images of monkeys” will “improve the world immensely,” Gates joked, referring to Bored Ape NFTs.
    The tech billionaire said he’s “not involved” in crypto: “I’m not long or short any of those things.”

    Bill Gates
    Gerard Miller | CNBC

    Bill Gates is not a fan of cryptocurrencies or non-fungible tokens.
    Speaking at a TechCrunch talk on climate change Tuesday, the billionaire Microsoft co-founder described the phenomenon as something that’s “100% based on greater fool theory,” referring to the idea that overvalued assets will go up in price when there are enough investors willing to pay more for them.

    Gates joked that “expensive digital images of monkeys” would “improve the world immensely,” referring to the much-hyped Bored Ape Yacht Club NFT collection.
    NFTs are tokens that can’t be exchanged for one another. They’re often touted as a way to prove ownership of digital assets like art or sports collectibles. But critics see them as overhyped and potentially harmful to the environment given the power-hungry nature of cryptocurrencies. Many NFTs are built on the network behind ethereum, the second-biggest token.
    “I’m used to asset classes … like a farm where they have output, or like a company where they make products,” Gates said.
    As for crypto, “I’m not involved in that,” Gates added. “I’m not long or short any of those things.”

    Cryptocurrencies tumbled sharply this week after Celsius, a crypto lending firm, paused all account withdrawals. The debacle has fueled fears of a looming insolvency event for Celsius — and possible knock-on effects for other parts of the crypto market. For its part, Celsius says it’s “working around the clock for our community.”

    The battered crypto world was already licking its wounds following the collapse of UST — a so-called “stablecoin” that was meant to be worth $1 — and luna, its sister token. At their height, both cryptocurrencies were worth a combined $60 billion.
    Bitcoin was last trading at $21,107 Wednesday, down 7% in the last 24 hours. The world’s biggest cryptocurrency has erased over half of its value since the start of 2022.
    WATCH: What you should know before investing in crypto

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    Stocks making the biggest moves premarket: Baidu, MicroStrategy, Moderna and more

    Check out the companies making headlines before the bell:
    Baidu (BIDU) – Baidu shares jumped 4.1% in premarket trading after Reuters reported the China-based internet search giant is in talks to sell its controlling stake in the video streaming company iQIYI (IQ). iQIYI fell 3.4%.

    MicroStrategy (MSTR) – MicroStrategy lost 2.2% in the premarket as the price of bitcoin touched an 18-month low. The business analytics company has extensive bitcoin holdings.
    Moderna (MRNA) – Moderna won the recommendation of an FDA panel for use of its Covid-19 vaccine in children aged 6 to 17 years. A vote by the full FDA could come within a few days. Moderna rose 1% in premarket action.
    Stellantis (STLA) – Stellantis will begin indefinite layoffs next week at its Sterling Heights, Michigan stamping plant. The world’s fourth-largest automaker did not specify how many workers would be impacted. Stellantis rallied 3.4% in the premarket.
    Zendesk (ZEN) – Zendesk is in settlement talks with activist investor Jana Partners after ending an unsuccessful effort to sell the software company, according to people familiar with the matter who spoke to the Wall Street Journal. The paper said proposed changes could involve CEO Mikkel Svane stepping down as well as changes to the board of directors. Zendesk added 1% in premarket trading.
    Robinhood Markets (HOOD) – The trading platform operator was downgraded to “underweight” from “neutral” at Atlantic Equities, which cited Robinhood’s revenue trends. Robinhood slid 4.2% in premarket action.

    Snowflake (SNOW) – The cloud computing company was upgraded to “buy” from “hold” at Canaccord Genuity. Shares have fallen more than 65% in 2022, but Canaccord said the stock is now at an attractive entry point, given growing demand and promising new products. Snowflake gained 3.6% in the premarket.
    Wheels Up (UP) – The private jet company’s stock rose 2.1% in premarket trading after Goldman began coverage with a “buy” rating, saying Wheels Up is a leading company in an established and growing end market.
    Sonos (SONO) – The high-end speaker maker was downgraded to “equal-weight” from “overweight” at Morgan Stanley, which is concerned about the impact of more cautious consumer spending. Sonos fell 3.1% in the premarket.
    — CNBC’s Peter Schacknow contributed reporting.

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    Oil giant BP buys 40.5% stake in massive renewables and green hydrogen project

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    BP says it will become operator of the development, adding that it has “the potential to be one of the largest renewables and green hydrogen hubs in the world.”
    Hydrogen, which has a diverse range of applications and can be deployed in a wide range of industries, can be produced in a number of ways.
    The other shareholders in the Asian Renewable Energy Hub are InterContinental Energy, CWP Global and Macquarie Capital and Macquarie’s Green Investment Group.

    A BP logo photographed in London on May 12, 2021. The International Energy Agency recently reported that 2021 saw energy-related carbon dioxide emissions rise to their highest level in history.
    Glyn Kirk | Afp | Getty Images

    Oil and gas supermajor BP has agreed to take a 40.5% equity stake in the Asian Renewable Energy Hub, a vast project planned for Australia set to span an area of 6,500 square kilometers.
    In an announcement Wednesday, BP said it would become the operator of the development, adding that it had “the potential to be one of the largest renewables and green hydrogen hubs in the world.”

    Located in the Pilbara region of Western Australia, it’s envisaged the project will develop up to 26 gigawatts of combined solar and wind generating capacity.
    The idea is that the hub would provide power to local customers. The hydrogen and ammonia would be used in Australia and exported internationally.
    “At full capacity, AREH is expected to be capable of producing around 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia, per annum,” BP said.
    The firm said it would assume operatorship of the project on July 1, adding that this was “subject to approvals.”
    Shares of London-listed BP traded 1.2% lower on Wednesday afternoon.

    Loading chart…

    Hydrogen, which has a diverse range of applications and can be deployed in a wide range of industries, can be produced in a number of ways. One method includes using electrolysis, with an electric current splitting water into oxygen and hydrogen.
    If the electricity used in this process comes from a renewable source such as wind or solar then some call it “green” or “renewable” hydrogen. Today, the vast majority of hydrogen generation is based on fossil fuels.
    BP’s announcement did not disclose the amount it was paying for its stake in the AREH project. The other shareholders are InterContinental Energy, CWP Global and Macquarie Capital and Macquarie’s Green Investment Group. Their stakes are 26.4%, 17.8% and 15.3%, respectively.
    While Wednesday’s news is a shot in the arm for the Asian Renewable Energy Hub, the project’s development has not been without its challenges, including a June 2021 decision from authorities.

    Read more about energy from CNBC Pro

    Anja-Isabel Dotzenrath, BP’s executive vice president of gas and low carbon energy, said the Asian Renewable Energy Hub was “set to be one of the largest renewable and green hydrogen energy hubs in the world and can make a significant contribution to Australia and the wider Asia Pacific region’s energy transition.”
    A major producer of oil and gas, BP says it’s aiming to become a net-zero company by the year 2050 or before. It’s one of many major firms to have made a net-zero pledge in recent years.
    While such commitments draw attention, actually achieving them is a huge task with significant financial and logistical hurdles. The devil is in the detail and goals can often be light on the latter.
    Fossil fuels remain a key part of the global energy mix and companies continue to discover and develop oil and gas fields at locations around the world.

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    In March, the International Energy Agency reported that 2021 saw energy-related carbon dioxide emissions rise to their highest level in history.
    The IEA found energy-related global CO2 emissions increased by 6% in 2021 to reach a record high of 36.3 billion metric tons.
    U.N. Secretary-General Antonio Guterres on Tuesday slammed new funding for fossil fuel exploration, describing it as “delusional” and calling for an abandonment of fossil fuel finance. More