Raphael Stevens

Amid swelling prices, most Americans see inflation as the biggest issue facing the country — far exceeding other concerns, according to a Pew Research survey.
Some 70% say inflation is “a very big problem” for the country, followed by roughly 55% for health-care affordability and violent crime.
While 84% of Republicans say inflation is the top issue, only 57% of Democrats were most concerned about rising prices.

A worker stocks items inside a grocery store in San Francisco, California, May 2, 2022.
David Paul Morris | Bloomberg | Getty Images

Meanwhile, President Joe Biden also has faced blowback over continued inflation and plans to address the issue.
A Twitter exchange between Biden and Amazon founder Jeff Bezos began on Friday when the president tweeted: “You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share.”
Quoting Biden’s tweet, Bezos responded: “Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection.”
Bezos further criticized the White House’s strategy in a tweet on Sunday, saying the $1.9 trillion American Rescue Plan, signed into law last March, contributed to the spike in inflation. He also commented how the rising prices are hardest on poor families.
Transportation Secretary Pete Buttigieg responded to Bezos’ criticism of the administration’s inflation policy on Monday on CNBC’s “Squawk Box.” 
“The president’s theory of the case when it comes to economics is probably never going to be wildly popular with billionaires for the simple reason that he is calling on them to pay their fair share,” he said.
“With the right kind of public investments, we can go after some of the things that we know are contributing to inflationary pressures,” Buttigieg added.

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“If you really want to become relevant in America, we have to look at the other segments,” Herbert Diess, the CEO of Volkswagen, tells CNBC. “And pick-ups, big SUVs, are very, very big in America.”
Prototypes of the Scout are due to be revealed in 2023, with production planned to begin in 2026.
Diess calls the United States “our biggest growth opportunity.”

As Volkswagen looks to resurrect the Scout brand in the United States, CEO Herbert Diess has shed light on the decision, saying it represents an opportunity for the German auto giant to “become much more American.” 
VW announced plans to re-launch the Scout as a fully-electric pick-up and “rugged” SUV last Wednesday, with prototypes due to be revealed in 2023 and production planned to begin in 2026.

In the same announcement, the company said the vehicles would be “designed, engineered, and manufactured in the U.S. for American customers.”
“The United States is our biggest growth opportunity,” Diess, who was speaking to CNBC’s Annette Weisbach last week, said.
He went on to explain why the automaker was targeting the fiercely competitive American market.
“We are still very niche, very small, with about 4% market share [in the country],” he said. “We want to get up to 10% market share towards the end of this decade.”
Diess stressed that the firm had momentum, was profitable and “really making good progress with the electric cars.”

These vehicles include the fully electric ID Buzz, which is inspired by the T1 Microbus or “hippie” van. European versions of the ID Buzz are set to go on sale this year, with sales of an American model starting in 2024.

This image, from 1970, shows people driving a version of the Volkswagen Microbus at a rock festival in Oregon.
Brian Payne/Pix | Michael Ochs Archives | Getty Images

VW will hope the release of the Scout and ID Buzz will continue its tradition of introducing iconic designs to the U.S. market. Over the years, these have included the Beetle and various iterations of the Microbus, such as the one pictured above.
The Scout’s history dates back to the 1960s, when International Harvester — originally an agricultural company, now known as the Navistar International Corporation — started development. Today, Navistar is part of the Traton Group, a subsidiary of the Volkswagen Group.
Production of the Scout ceased in 1980, but Volkswagen’s decision to re-launch it, and Diess’ comments, provide some clues to its strategy going forward.
“If we really want to become relevant in America, we have to look at the other segments,” he said. “And pick-ups, big SUVs, are very, very big in America.”  
Diess went on to describe Scout as a “beloved brand in the United States. So it’s a good opportunity for us to become much more American.”

Read more about electric vehicles from CNBC Pro

Asked if the Scout pickup would be solely for the U.S. market, he was non-committal. “I wouldn’t say ‘entirely dedicated’ but first and foremost … it’s an American product.”
“It will be an American product for American customers, designed for the American environment. Will it be sold outside? Maybe, later to be decided,” Deiss added.
VW is planning to set up a separate and independent company this year to design, engineer and manufacture the Scout pick-ups and SUVs for the U.S. market.
Volkswagen’s focus on electric vehicles is a world away from the “dieselgate” scandal that rocked it in the 2010s. Today, its electrification plans put it in direct competition with long-established automakers like GM and Ford, as well as relative newcomers such as Tesla.
On the company’s overall prospects in the U.S. going forward, Diess was bullish.
“We’re building up capacities in the United States … later this year, around August, ID 4 production will start in our Chattanooga facilities,” he said.
“We have programs for Audi and Porsche to increase their market share and … we will see some more products, electric products, being produced in America, for America.” More

JetBlue Airways launched a hostile takeover bid of Spirit Airlines on Monday.
JetBlue originally offered $33 a share, a deal that Spirit’s board declined in favor of an earlier plan to merge with Frontier Airlines.

LaGuardia International Airport Terminal A for JetBlue and Spirit Airlines in New York.
Leslie Josephs | CNBC

JetBlue Airways launched a hostile takeover bid of Spirit Airlines on Monday after that carrier turned down JetBlue’s $33 per share, all-cash offer earlier this month.
JetBlue has said acquiring Spirit would give it access to a large fleet of Airbus planes, trained pilots and the ability to better compete against the “Big Four” U.S. airlines that control most of the U.S. market. Spirit rejected the offer to stick with a planned merger with fellow discounter Frontier Airlines, which those two airlines say would allow them to grow and compete more easily.

Either combination would create the country’s fifth-largest carrier.
JetBlue on Monday offered Spirit shareholders $30 a share and encouraging them to vote against the Frontier deal. The company also said its earlier offer of $33 per share is still on the table if Spirit decides to negotiate. Spirit’s shares closed Friday at $16.98.
“If the Spirit shareholders vote against the transaction with Frontier and compel the Spirit Board to negotiate with us in good faith, we will work towards a consensual transaction at $33 per share, subject to receiving the information to support it,” JetBlue said.
Spirit’s rejection of JetBlue’s offer last month put the New York-based airline at a crossroads. JetBlue CEO Robin Hayes said a Spirit acquisition would “supercharge” its growth.
Spirit earlier this month said it turned down JetBlue’s offer because it didn’t believe the deal would be approved by regulators. It further turned down additional terms from JetBlue that might have eased regulatory concerns, including an offer to divest some of Spirit’s assets in Florida, New York and Boston. JetBlue also offered to pay a reverse breakup fee if the deal fell through.

Transportation Secretary Pete Buttigieg declined to comment on the deal Monday and said the DOT would help support any Justice Department analysis of a deal.
“The most important thing is to make sure the American people are served well by a healthy airline sector, and part of a healthy airline sector, part of any healthy sector in our economy, is healthy competition,” he said in interview with CNBC’s “Squawk Box.”
Spirit shares were up more than 15% in premarket trading Monday, while JetBlue’s were down roughly 1%. Frontier shares were up about 3% premarket. Representatives for Spirit and Frontier didn’t immediately comment.

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Starbucks said Monday it will start covering eligible travel expenses for employees seeking abortions or gender-affirming procedures.
A handful of companies are offering to reimburse workers for travel costs related to abortions following the leak of a draft Supreme Court ruling that would strike down Roe v. Wade.
As of mid-March, 154 anti-trans bills have been introduced in state legislatures, seeking to limit access to health care, sports, bathrooms and education, according to NBC News.

Starbucks coffee shop logo seen at one of their stores.
Stephen Zenner | LightRocket | Getty Images

Starbucks said Monday it will start covering eligible travel expenses for employees seeking abortions or gender-affirming procedures.
The coffee chain joins Amazon, Apple, Microsoft and Salesforce in offering to reimburse workers for travel costs related to abortions following the leak of a draft U.S. Supreme Court ruling that would strike down Roe v. Wade, the landmark 1973 decision that ensured the right to undergo the procedure. Other large companies, like Walmart and Disney, have overwhelmingly chosen to stay silent on the draft opinion.

Starbucks has a reputation for championing liberal causes, like vocally supporting same-sex marriage and hiring refugees. That also extends to transgender rights. Its health insurance has covered gender reassignment surgery since 2012 and a wider array of gender-affirming procedures, like hair transplants or breast reductions, since 2018.
As of mid-March, 154 anti-trans bills have been introduced in state legislatures, seeking to limit access to health care, sports, bathrooms and education, according to NBC News.
Employees enrolled in Starbucks’ insurance plan and seeking access to abortion or gender-affirming procedures will be eligible for reimbursement of travel costs if those services aren’t available within 100 miles of their home. The benefit will also extend to any dependents enrolled in Starbucks health care.
A representative for Starbucks said the company is still working on additional details, such as when the benefit kicks in. The company has 240,000 U.S. employees.

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McDonald’s said it will sell its business in Russia, a little more than two months after it paused operations in the country due to its invasion of Ukraine.
The company said its “continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values.”
McDonald’s first opened in Russia 32 years ago. It has more than 800 restaurants and 62,000 employees in Russia. The company said it is seeking a local buyer.

A view shows a McDonald’s restaurant in Saint Petersburg, Russia March 8, 2022.
Anton Vaganov | Reuters

McDonald’s said Monday that it will sell its business in Russia, a little more than two months after it paused operations in the country due to its invasion of Ukraine.
“The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values,” the company said in a news release. Russian forces, directed by President Vladimir Putin, have been accused of an array of war crimes during their assault on Ukraine.

McDonald’s exit from Russia is a bitter end to an era that once promised hope. The company, among the most recognizable symbols of American capitalism, opened its first restaurant in Russia more than 32 years ago as the communist Soviet regime was falling apart and Western businesses and ideas infiltrated the Iron Curtain. Hundreds of people lined up to get a chance to sample McDonald’s burgers and fries at the Pushkin Square location in Moscow.
“If you can’t go to America, come to McDonald’s in Moscow,” was a McDonald’s ad slogan at the time in Russia, according to The Washington Post.
Now, McDonald’s has more than 800 restaurants and 62,000 employees in Russia. The company said it is seeking a local buyer.
“We have a commitment to our global community and must remain steadfast in our values,” McDonald’s CEO Chris Kempczinski said in Monday’s release. “And our commitment to our values means that we can no longer keep the Arches shining there.”
McDonald’s announcement Monday is a stark indication of how much the Western world has turned against Putin’s regime. At first, following Russia’s invasion of Ukraine, McDonald’s kept silent about the attack. Then, after public outcry and pressure, McDonald’s and major U.S. brands such as Starbucks and Coca-Cola paused their business in Russia.

McDonald’s said Monday that it would start the process of “de-Arching” restaurants in Russia, meaning it would remove its name, logos, menus and branding from those locations. It will retain its trademarks in Russia, however, the company added.
The company also said it would attempt to make sure its employees in the country would continue getting paid until a deal closes, and that it would attempt to help them hold on to their jobs under the new owners.
McDonald’s said its restaurants in Ukraine, which has been under attack by Moscow’s forces since late February, remain closed. The company said it is continuing to pay full salaries to its employees in that country, as well.
Russia and Ukraine had accounted for about 2% of McDonald’s systemwide sales, and approximately 9% of its revenue and 3% of its operating income.
McDonald’s said it expects to record a primarily noncash charge of about $1.2 billion to $1.4 billion related to its decision to leave the Russian market. In March, the company said its temporary shutdown would cost it about $50 million a month, or 5 cents to 6 cents per share.

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The Irish low-cost airline terminated talks over a substantial order of Boeing 737 Max 10 jets worth tens of billions of dollars in September 2021, after failing to agree on pricing.
O’Leary told CNBC following Ryanair’s full-year results that the company had been “very disappointed with the performance” of Boeing from a commercial perspective over the last 12 months.

Ryanair CEO Michael O’Leary pictured during a press conference of Irish low-cost airline Ryanair, Wednesday 02 March 2022 in Brussels.
Nicolas Maeterlinck | AFP | Getty Images

Ryanair CEO Michael O’Leary has called for a shakeup of management at U.S. aircraft giant Boeing, after delivery delays and a period of fractious negotiations between the two companies.
The Irish low-cost airline terminated talks over a substantial order of Boeing 737 Max 10 jets worth tens of billions of dollars in September 2021, after failing to agree on pricing. Executives from both companies are due to return to the table in the coming weeks.

Ryanair is Europe’s largest customer of the narrow-body 737 Max, and had spoken of a fresh order potentially worth around £33 billion for up to 250 of the larger, 230-seat Max 10.
O’Leary told CNBC following Ryanair’s full-year results on Monday that the company had been “very disappointed with the performance” of Boeing from a commercial perspective over the last 12 months.
“I saw some commentary recently that Boeing management has lost their way, and I find it hard to disagree with those sentiments,” O’Leary said.
“They’ve been late on the aircraft deliveries, we’ve heard nothing from them on the Max 10, despite the fact that we broke off negotiations with them last September.”
Boeing reported a larger-than-expected quarterly loss and below-consensus revenue for the first quarter of 2022, posting a net loss of $1.2 billion.

The U.S. titan has enjoyed resurgent demand for its stalwart 737 Max, which returned to service in late 2020 after being sidelined following two fatal crashes. However, production issues and certification delays have dragged on other aircraft programs.
“Boeing needs a management reboot, certainly on the aircraft civilian side,” O’Leary said.
“They need to get some management in there that’s going to resolve the aircraft delivery delays and sort out the production challenges facing not just the Max, but also the Max 10, and the 787 as well.”
Boeing did not immediately respond to a CNBC request for comment. Following the breakdown of talks in September, a Boeing spokesperson said Ryanair is a “long-standing partner” and that Boeing is “committed to supporting them.”
Ryanair on Monday posted a 355 million euro ($369.06 million) net loss for the 12 months to the end of March, with the Covid-19 pandemic still weighing on international travel.
The company said it was unable to provide accurate forward profit guidance due to the uncertainties surrounding the war in Ukraine and the pandemic, but that it hopes for a return to “reasonable profitability” this year.

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