Raphael Stevens

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    France becomes first big European nation to grant crypto giant Binance regulatory approval

    Watch Daily: Monday – Friday, 3 PM ET

    Binance is now listed as a registered digital asset service provider by French stock market watchdog AMF.
    The move makes France the first major European nation to give Binance the greenlight.
    Changpeng Zhao, Binance’s CEO and founder, described France as “very progressive” in adopting crypto.

    Binance CEO Changpeng Zhao gave a keynote at a Paris crypto industry event in April 2022 to debut a new accelerator program for so-called “Web3” start-ups.
    Benjamin Girette | Bloomberg | Getty Images

    Binance has been granted approval from regulators to operate its cryptocurrency exchange in France.
    The company is now listed as a registered digital asset service provider by the French stock market watchdog AMF, enabling it to offer trading and custody services for bitcoin and other cryptocurrencies.

    Binance is the largest crypto exchange globally. The company handles spot trading volumes of more than $14 billion and nearly $50 billion in derivatives volume in a single day, according to data from CoinGecko.
    The move makes France the first major European nation to give Binance the greenlight. The company is supervised in Lithuania by the country’s anti-money laundering regulators, and is also seeking registration with the Swedish finance watchdog.
    Binance has no official headquarters, and once took pride in this fact. But the company is now seeking to make peace with regulators after a backlash last year from authorities in numerous countries including the U.K., Italy and Singapore. Changpeng Zhao, Binance’s CEO and founder, told CNBC last month that the company plans to establish its European base in Paris.

    Read more about cryptocurrencies from CNBC Pro

    Binance has sought to turn on the charm in France lately.
    Zhao gave a keynote at a crypto industry event in Paris last month to debut a new accelerator program for so-called “Web3” start-ups. The firm also committed to invest 100 million euros ($105 million) in the country.

    Binance’s billionaire CEO described France as “very progressive” in adopting crypto.
    “In our interactions with them, they are far more advanced in their understanding, and they’re also much more progressive in their attitudes,” he told CNBC
    “France is a very strict regulator. But they have the advanced understandings to go with that.” More

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    Consumers at breaking point as Fed's inflation battle heats up, investor Peter Boockvar warns

    Monday – Friday, 5:00 – 6:00 PM ET

    Fast Money Podcast
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    The economy may be hitting a crucial turning point.
    Investor Peter Boockvar warns the Federal Reserve will not be able to meaningfully contain surging inflation, and there’s not much more consumers can withstand.

    “It gets to the question: At what point does the consumer blink in the face of these rising prices,” the Bleakley Advisory Group CIO told CNBC’s “Fast Money” on Wednesday. “On the low-end consumer, they’re already beginning to blink.”
    A TransUnion study out this week reflects trouble among consumers with the “riskiest credit profiles” in the form of rising trend credit balances and delinquency rates.
    Boockvar believes the report is a harbinger of what’s ahead. In a note out this week, he warned consumers are at a “fork in the road.”
    “The consumer is going to call a timeout on spending because of the continued rise in prices,” he wrote. “It is inevitable as price matters to the U.S. consumer who loves discounts.”
    Boockvar, a Fed critic, believes all income levels are at a breaking point. He warns they’re on the cusp of delaying purchases until prices cool — which would have painful consequences on the broader economy. It would put Fed Chair Jerome Powell’s view that it’s possible to avert a recession at risk.

    “This is going to be the most aggressive tightening cycle in 40-plus years between the rate hikes and the shrinking of the balance sheet,” noted Boockvar, a CNBC contributor. “Considering how dependent economic activity is to cheap money, how dependent markets have been to cheap money, I don’t see how it’s possible to achieve a soft landing.”
    Yet, Wall Street appeared to embraced the Fed’s half point rate hike and Powell news conference. The S&P 500 saw its best day since May 2020.
    Boockvar expects the bounce to evaporate.
    “If there are low odds of a soft landing, which means we’re going to have a recession, well that means that earnings numbers are going to have to come down,” Boockvar said.
    Disclaimer

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    Cramer's lightning round: Marvell Technology and Bausch Health are buys

    Monday – Friday, 6:00 – 7:00 PM ET

    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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    Bausch Health: “We wanted to buy more today, but we ran out of time. This thing is being put on sale. There are shorts taking it all the way down. It is quite ridiculous. I wanted to be able to buy a huge slug of it today, so that’s how I feel for the [Charitable Trust].”

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    Accenture: “They crushed that stock. The business is fantastic. They had a great quarter. I’m saying to people [buy, buy, buy].”

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    Celularity: “That’s one of the higher risk stocks out there. The way I’d look at it is, be prepared to lose everything but otherwise make a lot of money if it works out.”

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    Manulife: “They take on too much risk, Manulife. I’m not there for the 5% [dividend yield]. I don’t need it. Too much risk in the common stock.”

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    Marvell Technology: “You should [keep buying more of it]. This company has two businesses: high-performance computing and 5G. We know those are the two strongest areas. It has no PC business. It has no gaming. Marvell is a stock that we’ve been buying, buying, buying for the Charitable Trust, and I think you should, too.”

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    Iron Mountain: “I like Iron Mountain. Good yield, very consistent business. [Buy, buy, buy].”

    Disclosure: Cramer’s Charitable Trust owns shares of BHC and MRVL.
    Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

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    Clorox's brands are inflation-proof and can thrive in recessions, CEO says

    Monday – Friday, 6:00 – 7:00 PM ET

    Clorox is set for another round of price increases in July to help offset higher costs and “recover margins over time,” CEO Linda Rendle told CNBC on Wednesday.
    The CEO told Jim Cramer on “Mad Money” that Clorox brands offer superior value for things people need to use every day, even in recessions.
    There’s concern the Federal Reserve’s aggressive moves to stamp out inflation might slow economic growth and cause a recession.

    Clorox CEO Linda Rendle told CNBC on Wednesday the company’s products are “household essentials” that can withstand rising inflationary environments and tough economic times.
    The company’s brands include its namesake Clorox products as well as Brita water filtration, Glad bags and Burt’s Bees to highlight a few.

    As an example of Clorox’s pricing power, Rendle referenced another round of price increases set for July to help offset higher costs and “recover margins over time.”
    The CEO told Jim Cramer on “Mad Money” that Clorox brands offer superior value for things people need to use every day, even in recessions. In 2008, during the financial crisis, “our categories were very resilient, and we grew the vast majority of our brands,” she explained.
    There’s concern the Federal Reserve’s aggressive moves to stamp out inflation might slow economic growth and cause a recession. The Fed increased interest rates by another 50 basis points Wednesday.
    Clorox reported a decidedly mixed quarter after the closing bell Monday. The stock opened lower Tuesday but closed up 3%. It added another 1.4% on Wednesday.

    The consumer packaged goods powerhouse late Monday reported fiscal third-quarter adjusted earnings of $1.31 per share, which beat estimates but dropped 19% from the year-ago period.
    Net sales increased 2% to a slightly better-than-expected $1.81 billion. Gross margin was crushed.
    The company shaved 20 cents off its full-year earnings forecast, while maintaining a projected net sales decline of between 1% to 4% for the year.

    “For the first part of our fiscal year, we were lapping 27% sales growth in the year-ago period. But this quarter, as we lapped a more normalized environment, we were able to put on organic growth in three out of our four segments, the vast majority of our businesses,” Rendle said. “In addition to that, we were able to grow market share.”

    Rendle said that cleaning habits that grew out of the Covid pandemic are sticky even as many aspects of life have been returning to more normalized routines. The company has leaned into the trend, launching packaging solutions so people can “control the environment around them” and take the products on the go, she said, noting that Clorox is a “much larger business” than it was pre-pandemic.

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    Cramer says Wednesday's relief rally won't vanquish the bears, expects Fed skeptics to remain

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer said Wednesday he’s still “drawn to owning stocks,” despite concerns of a Fed-induced recession.
    The “Mad Money” host’s comments came after Wall Street rallied in response to Fed Chair Jerome Powell’s news conference.
    Given his economic outlook, Cramer likes banks stocks and profitable tech companies like Advanced Micro Devices.

    CNBC’s Jim Cramer said Wednesday he’s still “drawn to owning stocks,” even as the Federal Reserve aggressively raises interest rates in such a way that some skeptics believe will send the U.S. economy into a recession.
    “They probably sold into the rally today. They will sell again tomorrow because this is who they are,” the “Mad Money” host said, referring to a late session surge on Wall Street that saw the S&P 500 and Dow Jones Industrial Average post their biggest daily gains since 2020.

    Stocks rallied in response to the Fed raising rates by half a percentage point, which was widely expected, and Chair Jerome Powell ruling out future 75 basis point hikes.
    The intensity and breadth of Wednesday’s post-announcement rally suggests some investors think the Fed can thread the needle of tamping down inflation with tighter policy without sparking a significant economic downturn. However, Cramer said that he thinks the vocal Fed skeptics will not be swayed by Wednesday’s relief rally.
    He acknowledged there is uncertainty about the ultimate effects of the Fed’s 50 basis point hike. Before Wednesday, the last time the U.S. central bank raised rates by half a percentage point in one meeting was 2000. Quarter percentage point upticks are the typical increment.
    “So, starting tomorrow, we’ll once again prepare for the worst and expect the worst … and as long as money managers are unsure, which they are, they’ll keep selling things that they shouldn’t,” Cramer said. “But, if you’re in my camp, you’re drawn to owning stocks here because there are plenty of companies that could do well, even if the more bearish camps turn out to be right.”
    Cramer highlighted both individual companies and broad sectors that he thinks can work from here, based on his economic outlook. For example, he said he likes Advanced Micro Devices, which has struggled so far this year, but that just reported strong earnings and forward guidance.

    Financials also are well positioned, he said. “Remember, banks get instantly more profitable” when the Fed raises short-term rates, said Cramer, whose Charitable Trust owns two banks: Wells Fargo and Morgan Stanley. He was referring to banks’ net interest income, which is what they earn from lending after subtracting what they pay customers on their deposits.
    “You can also buy tech because tech stocks tend to do well once inflation peaks, but only profitable tech stocks please, because the money losers aren’t going to make it to the promised land” due to higher interest rates, he said.
    Disclosure: Cramer’s Charitable Trust owns shares of AMD, Morgan Stanley and Wells Fargo.
    Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

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    Stock futures fall slightly after Fed induced relief rally

    Stock futures fell slightly after the Federal Reserve raised rates by half a point and the major averages rallied to end the day.
    Futures tied to the Dow Jones Industrial Average lost 46 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures each fell 0.1%.

    In regular trading, the Dow Jones Industrial Average rose 932 points, or 2.81%, and the S&P 500 gained 2.99% for their biggest gains since 2020. The Nasdaq Composite jumped 3.19%.
    Stocks rose for a third straight day to start the month, after the Fed increased its benchmark interest rate by 50 basis points, as expected, and said it would begin reducing its balance sheet in June. However, investor sentiment, which has been bogged down since the start of the year, flipped during Powell’s news conference, when he clarified that the Fed is “not actively considering” a larger, 75-basis-point rate hike.
    Some Wall Street strategists had suggested markets could see a relief rally after the rate increase. After Powell’s comments, investors seemed at ease about the central bank’s ability to slow inflation without triggering a recession.
    Still, the Fed remains open to the prospect of taking rates above neutral to rein in inflation, Zachary Hill, head of portfolio strategy at Horizon Investments, noted.
    “Despite the tightening that we have seen in financial conditions over the last few months, it is clear that the Fed would like to see them tighten further,” he said. “Higher equity valuations are incompatible with that desire, so unless supply chains heal rapidly or workers flood back into the labor force, any equity rallies are likely on borrowed time as Fed messaging becomes more hawkish once again.”

    Stock picks and investing trends from CNBC Pro:

    Even after stocks rallied to finish the day, the market saw big moves on the down side after hours as companies continued reporting financial results for the last quarter. Etsy tumbled more than 12% and eBay lost 5.8% in extended trading, on lighter-than-expected revenue guidance for the second quarter. Meanwhile, Booking Holdings shares advanced more than 8% after hours.
    Earnings continue on Thursday, with Shell, Shopify and ConocoPhillips set to report before the bell. Block, DoorDash, Shake Shack, Zillow and other big names will report after the market closes.
    In economic data, investors will be eyeing jobless claims data, which is due out at 8:30 a.m.

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    Stocks making the biggest moves after hours: Etsy, Booking Holdings, eBay and more

    The Etsy website
    Gabby Jones | Bloomberg | Getty Images

    Check out the companies making headlines in midday trading.
    Etsy — Shares of the e-commerce company plunged by more than 12% after Etsy’s revenue guidance for the second quarter came in lighter than anticipated. The company CFO also said on the earnings call that “consumers have less disposable income and many more places to spend it,” which “creates a short-term headwind for sales.”

    Booking Holdings — Shares of the travel booking site operator jumped 8.2% in extended trading Wednesday after the company posted big beats on revenue and adjusted EBITDA for the first quarter. It also reported $27 billion in gross bookings for the quarter, the highest quarterly amount in the company’s history. Management said on the earnings call it’s preparing for a busy summer travel season.
    eBay — The online marketplace’s shares fell 5.8% following the company’s quarterly earnings. EBay posted a slight first-quarter revenue beat, but issued weaker-than-expected earnings and revenue guidance for the second quarter and for the full year.
    Cognizant — The information technology company saw shares drop 4.5% after hours following its quarterly earnings report. Cognizant brought in revenue of $4.83 billion, in line with estimates, according to FactSet. However, it issued weaker-than-expected earnings and revenue guidance for the second quarter and the full year.
    Twilio — The customer engagement tech company’s shares gained 1.5% after Twilio posted revenue of $875.4 million for the first quarter, which was greater than the $864.2 million expected by analysts, according to FactSet.

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    U.S. Secretary of State Blinken tests positive for Covid, has mild symptoms

    U.S. Secretary of State Antony Blinken tested positive for Covid-19, the State Department said.
    Blinken, who is fully vaccinated and boosted against the coronavirus, is experiencing only mild symptoms, the department said.
    The top U.S. diplomat is not considered a close contact to President Joe Biden, it added.
    Blinken attended the White House Correspondents’ Association Dinner in Washington on Saturday night with more than 2,000 other guests, including Biden.

    Secretary of State Antony Blinken testifies during the Senate Appropriations Subcommittee on State, Foreign Operations, and Related Programs hearing on Capitol Hill in Washington, DC, April 27, 2022, to review of the fiscal year 2023 budget request for the US Department of State.
    Carolyn Kaster | AFP | Getty Images

    U.S. Secretary of State Antony Blinken tested positive for Covid-19 on Wednesday afternoon after beginning to experience symptoms, the State Department said.
    Blinken, who is fully vaccinated and boosted against the coronavirus, is feeling only “mild” symptoms, the department said. The top U.S. diplomat is not considered a close contact to Biden, it added.

    White House press secretary Jen Psaki said the president tested negative for Covid on Tuesday.
    Blinken’s diagnosis comes eight days after Vice President Kamala Harris tested positive for the coronavirus.
    The secretary of state had met with Swedish foreign minister Ann Linde before his positive test Wednesday; on Tuesday, he met with Mexican Foreign Secretary Marcelo Ebrard.
    “We are in the process and we have notified those individuals with whom he has been in close contact following [federal health agency] guidance,” State Department spokesman Ned Price told reporters.

    US Secretary of State Antony Blinken meets with Swedens Foreign Minister Ann Linde at the State Department in Washington, DC, on May 4, 2022.
    Michael Mccoy | AFP | Getty Images

    Blinken and his wife Evan Ryan, along with Biden, attended the White House Correspondents’ Association Dinner in Washington on Saturday night. Some 2,600 people attended, including high-profile journalists and government officials. Attendees were required to be vaccinated or have a negative Covid test.

    Blinken and his wife were guests of NBCUniversal, CNBC’s parent company, at the event. An NBC spokesman declined to comment on the diagnosis.
    Ryan is the White House Cabinet secretary, acting as the liaison between Biden and the U.S. departments and agencies whose leaders make up the president’s Cabinet.
    Blinken “will quarantine at home, he will follow [Centers for Disease Control and Prevention] guideline,” said spokesman Price, who also attended the White House correspondents’ gala. “I know he very much looks forward to returning to the office, returning to his full schedule and returning to the road just as soon as he is able to do so.”
    Before getting a positive result for Covid through a PCR test, Blinken had been scheduled to speak at the Kuwaiti embassy in Washington for a United Nations High Commissioner for Refugees event.
    Price said the State Department has notified people with whom Blinken had been in close contact prior to his positive test.
    Pentagon spokesman John Kirby on Wednesday said that Defense Department officials who attended the correspondents’ dinner have not tested positive for Covid.
    In addition to Kirby, U.S. Space Force General John Raymond was at the event.
    – Additional reporting by Amanda Macias
    Disclosure: NBCUniversal is the parent company of CNBC.

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