Raphael Stevens

Nykaa may have started as an e-commerce platform, but founder and CEO Falguni Nayar is a “big believer” in physical retail and said there is demand from consumers.
“A lot of beauty is sold offline and Nykaa has become such a big brand that we cannot ignore our offline channel as well as offline consumers,” she said.
Nayar also said she is optimistic because “cosmetics and beauty are those small luxuries that consumers don’t cut down on so drastically.”

While Nykaa started as an e-commerce platform, founder and CEO Falguni Nayar is a “big believer” in physical retail and said there is demand from consumers.
“The last two years have been very much impacted by Covid-19 and what it does to physical retail. However, we do believe that if you look at the math and statistics, e-commerce penetration is only 8%,” Nayar said on CNBC’s “Street Signs Asia” on Thursday.

“A lot of beauty is sold offline and Nykaa has become such a big brand that we cannot ignore our offline channel as well as offline consumers. There will be greater emphasis on stores, but I think we will continue to be a dominant e-commerce player.”
Nykaa, which sells cosmetics, grooming and fashion products, currently has 100 retail stores in India, with its latest opening just last week. The company had a blockbuster debut in November hitting a valuation of almost $14 billion – making it India’s first woman-led unicorn listing.
In its most recent quarterly report, however, the company reported a 58% plunge in net profits.

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Other newly public Indian companies have come under pressure as the halo of their high-profile IPOs fades and valuations come under scrutiny. Earlier this week, Reuters reported that India will probe companies hoping to IPO about valuation metrics.
While these companies largely had stellar debuts, many are now trading well below their IPO price –including Nykaa, Paytm, Zomato and CarTrade.

Inflation pressure

Nayar said tech valuations would see “some adjustment” due to high inflation globally and rising interest rates. For Nykaa, she said the latest round of coronavirus restrictions in major Chinese cities will likely present supply chain challenges.
“I think that is holding us back and sometimes we have to take additional stock, assuming that disruptions will be there,” said Nayar, who founded the company in 2012.
While Nayar said the impact of surging commodity prices and inflation remains a key watcher, she is confident in “the lipstick effect.”
“Cosmetics and beauty are those small luxuries that consumers don’t cut down on so drastically because at the end of the day, the percentage spent on beauty in the country is as low as $12 to $14 per capita,” she explained.
“We do believe that the beauty industry is in an inherent structural change where Indian consumers want more beauty consumption,” she added.
Correction: This story has been updated to correct the spelling of Nykaa.

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Burger King is moving to divest its 15% stake in its Russian business.
But the burger chain told employees in an open letter that it cannot immediately suspend operations in the market because of its joint venture agreement.
The Restaurant Brands International chain announced last week it was suspending all corporate support for its 800-plus franchised locations in Russia.

A man holds meals from the Burger King restaurant on May, 15, 2020 in Dedovsk, Russia.
Mikhail Svetlov | Getty Images

Burger King is moving to divest its 15% stake in its Russian business, but the burger chain said it can’t legally suspend operations in the market right away.
The Restaurant Brands International chain announced last week it was suspending all corporate support for its 800-plus franchised locations in Russia in response to the Kremlin’s ongoing attacks on Ukraine. The suspension includes refusing approvals for further investment or expansion and pausing operations, marketing and its supply chain.

But the company’s International President David Shear laid out in an open letter to employees on Thursday that the structure of the company’s Russian business hampers its ability to shutter restaurants in the market like some of its competitors.
“Would we like to suspend all Burger King operations immediately in Russia? Yes. Are we able to enforce a suspension of operations today? No,” Shear said.
Burger King entered Russia through a joint venture with businessperson Alexander Kolobov, Investment Capital Ukraine and VTB Capital, which has been hit by U.S. sanctions as an affiliate of a major Russian bank.

Shear said the burger chain contacted Kolobov, who is responsible for the day-to-day operations and oversight of the Russian locations, and “demanded the suspension of Burger King restaurant operations in Russia.” Kolobov refused, according to Shear.
Burger King owns a 15% stake in the joint venture, and none of the partners has a majority stake. According to Shear, Burger King can’t immediately shut down the business on its own.

“There are no legal clauses that allow us to unilaterally change the contract or allow any one of the partners to simply walk away or overturn the entire agreement,” he wrote. “No serious investor in any industry in the world would agree to a long-term business relationship with flimsy termination clauses.”
Shear said the company has started the process of divesting its stake in the joint venture, but it will take some time to unwind based on the terms of the agreement. He also said that Burger King is in full compliance with all applicable sanctions.
Enforcing Burger King’s contract would require the support of Russian authorities, which is unlikely to happen anytime soon because of the ongoing conflict and tensions with the West.

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CNBC’s Jim Cramer on Thursday offered investors a list of dividend stocks whose yields recently increased, that he believes buyers should add to their portfolio.
“You want bountiful dividends that are also safe, and the best way to determine a dividend’s safety is by searching for the companies that have recently raised their payouts,” the “Mad Money” host said.

CNBC’s Jim Cramer on Thursday offered investors a list of dividend stocks with yields that recently increased, that he believes buyers should add to their portfolio.
Dividends are a generally “unassailable defense against a volatile market,” the “Mad Money” host said, which means that they can be attractive additions to the portfolio of an investor worried about Russia’s invasion of Ukraine, soaring inflation and Covid fears that have roiled the market in recent weeks.

“You want bountiful dividends that are also safe, and the best way to determine a dividend’s safety is by searching for the companies that have recently raised their payouts, because that’s the ultimate sign of confidence in the future,” Cramer said. “Plus, with interest rates on the rise, only the dividend boosters can keep up with the bond market competition,” he added.
To come up with his list, which he said are the “biggest dividend raisers of 2022 so far,” Cramer only included stocks which raised dividends this year by more than 20%. Using this criteria, he shrunk the list of hundreds of stocks listed in the S&P 500 to 27 names, then down to 11 stocks that he believes can outpace inflation and be attractive additions to buyer’s portfolios.
Here is the list:

Pioneer Natural Resources
Coterra Energy
Devon Energy
Halliburton
Tractor Supply
Best Buy
Dollar General
NXP Semiconductors
Prologis
Wells Fargo
American Express

“When the Fed is tightening to combat rampant inflation, I don’t want you to overthink it — you want to circle the wagons around companies that are rapidly raising their dividends,” Cramer said.
Disclosure: Cramer’s Charitable Trust owns shares of Devon, Halliburton and Wells Fargo.

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Two-thirds of Americans worry the Russia-Ukraine war will hurt their wallets, with nearly half eager to save more cash and 42% delaying investments, according to a survey.
But sitting on cash during periods of stock market volatility may lead to missed opportunities, financial experts say.

Westend61 | Getty Images

The ongoing Russia-Ukraine war is degrading Americans’ financial outlook, sparking the desire to save more and postpone investing, according to a survey from MassMutual. But steering clear of stock market volatility may be a mistake, financial experts say.
Two-thirds of Americans worry the conflict will hurt their wallets, with nearly half eager to save more cash and 42% delaying investments, the report found.  

“For a year that started with such hope and optimism, many are extremely concerned about the U.S. economy,” said Amanda Wallace, head of insurance operations with MassMutual, pointing to stress about day-to-day expenses and financial insecurity. 
More from Personal Finance:Here’s what the Fed’s rate hike means for borrowers, savers and homeownersWhen to get back into the stock market after panic sellingWhy you may miss the market’s best days if you sell amid high volatility
It’s been a volatile period for the stock market as investors respond to news about the war, rising interest rates and soaring inflation, among other headlines. 
Investing hesitancy is common, particularly after a “liquidity event,” such as selling a business, according to certified financial planner Dennis Morton, founder and principal at Morton Brown Family Wealth in Allentown, Pennsylvania. “Sometimes the language is ‘I’ll just wait until things settle down.'”
But pausing investments during market turmoil can be costly, he said, because sitting on cash may mean skipping opportunities to “put money to work” at lower prices, often missing out on the recovery.

Arrows pointing outwards

Indeed, high returns may follow some of the biggest drops, research from Bank of America shows.
Since 1930, missing the S&P 500 Index′s 10 best-performing days every decade yielded a 28% total return. However, staying invested may have led to a 17,715% return, the company found.
These findings align with J.P. Morgan research, showing how the best market days often follow the worst ones, and there’s an opportunity of cost of failing to stay invested.

Investing for retirement means a long-term strategy regardless of current market conditions.

Jim Shagawat
partner advisor at AdvicePeriod

“When we make a financial plan, we assume a certain rate of return over a given period of time,” Morton said. “And missing out on a few days, weeks or months can change that rate of return and really put the plan in jeopardy.”
Often, a long-term perspective may help minimize anxiety or the urge to panic-sell during stock market swings, experts say. 
“Whether markets rise or fall, my investing advice remains constant,” said Jim Shagawat, a CFP and partner advisor at AdvicePeriod in Paramus, New Jersey. “Investing for retirement means a long-term strategy regardless of current market conditions.”

Even with strong financial knowledge or skill, it can be unsettling to see large portfolio declines, he said. But it’s critical to avoid emotional investing decisions. 
“Let’s find that [asset] allocation you can stick with,” Morton added, explaining the importance of knowing your risk tolerance and designing a portfolio to match.

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U.S. airlines stopped selling alcohol and paused other onboard food service early in the pandemic.
American and Southwest last spring postponed a return of alcohol sales because of unruly passengers and assaults on flight attendants.
American is the last major U.S. carrier to announce alcohol sales would resume. Snacks are coming back, too.

An American Airlines flight attendant serves drinks to passengers after departing from Dallas/Fort Worth International Airport in Texas.
Robert Alexander | Archive Photos | Getty Images

American Airlines said Thursday it will resume sales of alcoholic beverages on domestic and short-haul international flights next month, a plan it delayed almost a year ago because of a surge in unruly passengers and attacks on crew members.
Airlines stopped selling alcohol and paused food sales and service in March 2020, when the pandemic started and travel demand plunged. Carriers have been steadily bringing back many of those services over the past year as travelers returned in droves.

American is the last major U.S. carrier to bring back sales of beer, wine and spirits, which it will sell in its domestic coach cabins starting April 18, the date the current federal mask mandate expires. It isn’t clear whether the Biden administration will extend or end the requirement. Southwest Airlines restarted alcohol sales last month.
Drinking and disputes over the mask mandate have contributed to unruly behavior on flights, flight attendant unions have said.
Sales will be available on American flights longer than 250 miles. Alcoholic beverages are complimentary on American’s long-haul international flights and in first class, as it is on other major airlines.
American and Southwest last May scrapped plans to start selling alcohol again after a surge in disruptive passengers and attacks on crew, including a Southwest traveler who punched a flight attendant.
American isn’t raising prices compared with the before the pandemic, a spokeswoman told CNBC. Spirits such as new arrival Aviation Gin, rum, vodka and whiskey will be $9. Wine servings are also $9. Beer is $8.

American is also bringing back buy-on-board food, which will start with flights longer than 1,500 miles, about three-and-a-half hours, starting with chips and almonds. The airline says it will start offering touchless ordering later this year.
Last month, American and Delta Air Lines announced the return of hot meals to first class on many domestic flights.

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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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Sturm Ruger & Company Inc: “I am a hunter, but I don’t usually recommend gun stocks, just because I don’t think it’s right to. … It’s a tough call for me.”

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Carnival Corp: “If I have to buy one, I’ll do [Norwegian Cruise Lines], because I think that [chief executive] Frank Del Rio has done a remarkable job, but at the same time … I’d rather own the worst airline than the best cruise line.”

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Western Union Co: “They’re doing some very good management. I’m not going to fight you if you want to buy some.”

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Roblox Corp: “I think it’s a great concept, but you know what, the market is saying I am wrong, and I am not going to disagree with the market.”

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Investors need to keep their eyes on the prize by choosing companies with tangible results and tuning out the outside noise, CNBC’s Jim Cramer said Thursday.
“Stay out of the crosshairs of the young, money-losing stocks — many of which should never have come public and came way too early — and instead just find some solid, tangible companies,” the “Mad Money” host said.

Investors need to keep their eyes on the prize by choosing companies with tangible results and tuning out the outside noise, CNBC’s Jim Cramer said Thursday.
“Stay out of the crosshairs of the young, money-losing stocks — many of which should never have come public and came way too early — and instead just find some solid, tangible companies that make things and do stuff that you like, and then they distribute … generous dividends,” the “Mad Money” host said, echoing his 2022 mantra of buying shares of companies that report actual profits and make things.

Cramer’s comments came after the market’s third consecutive day of gains during the week that saw the Federal Reserve lift interest rates by a quarter point. On Thursday, both the Dow Jones Industrial Average and the S&P 500 rose 1.2%, while the Nasdaq Composite gained 1.3%.
Cramer said that the Fed’s interest rate hike, coupled with inflation that has been skyrocketing for months, has led to a market that is unforgiving for high-value stocks.
“Right now, this market’s got a disease that is called multiple compression. Because inflation is rampant and the Fed’s hitting the brakes on the economy, Wall Street’s willing to pay less for any company’s future earnings stream,” Cramer said.
“The thing about market-wide multiple compression is that it hits the most richly valued stocks the hardest, which is why I’ve been warning you away from the high-flying price-to-sales stocks since November.”
Cramer also warned that listening to ill-suited advice, like forgoing individual stocks for index funds from portfolio managers stirring up panic, will only hurt investors. The host advised investors on Wednesday to look for companies that are “built to last.”

“The key is to not be taken in by plausible-sounding arguments that turn out to be totally untrue,” he said.

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Merck’s monoclonal antibody therapy Keytruda reduced the risk of early stage lung cancer returning or death by 24% in patients who had undergone surgery, according to clinical trial data.
The 200-milligram shots are administered once every three weeks for a total of 18 injections over the course of a year.
Keytruda helps activate the body’s immune system to fight cancer. It’s FDA approved as a therapy for numerous other cancer types.
Merck plans to submit the data on early stage lung cancer to the FDA as soon as possible.

Stefanie Joho, 27, stands for a portrait at the home of a friend in Penn Valley, PA on Tuesday, May 9, 2017. Joho, who was diagnosed with colon cancer at 22 years old, has been in remission since February 2016, thanks to an immunotherapy drug targeted at specific mutations that prevents repair of DNA-replication mistakes. The FDA is expected to decide approval of the drug, Merck’s Keytruda, by mid May.
Michelle Gustafson | The Washington Post | Getty Images

Merck’s antibody therapy for early stage lung cancer patients who have previously undergone surgery to have tumors removed reduced the risk of the disease returning again or the patient dying by 24%, according to clinical trial data released Thursday.
Keytruda is a monoclonal antibody treatment that helps activate the body’s immune system to fight off non-small cell lung cancer, the most common form of the disease. The 200-milligram shots are administered once every three weeks for a total of 18 injections over the course of a year.

Merck’s head of global clinical development, Dr. Roy Baynes, described the reduced risk of the cancer returning as significant and clinically meaningful. Baynes also expects Keytruda to improve patients’ overall survival rate, though he said the data is not mature enough yet to draw a definitive conclusion in that regard.
“When you treat a tumor early, it takes quite a long time for bad outcomes to translate into death,” Baynes said. “So the trial is too immature at this point to comment on overall survival, although we would say that the overall survival is directionally favorable at this time.”

The clinical trial for early stage lung cancer patients post-surgery evaluated more than 1,000 people randomized into two groups, 590 who received the treatment and 587 who received a placebo. Patients who received Keytruda were disease for more than four years at the median, about a year longer than those in the placebo group. The trial included patients who received chemotherapy and those who hadn’t.
Merck plans to submit the data to the Food and Drug Administration as quickly as possible, spokesperson Melissa Moody said. The approval process can take eight to 12 months, according to Baynes. Keytruda was first approved by the FDA in 2014 to treat melanoma and has become a blockbuster drug for Merck that is now used to treat numerous other types of cancer.
Baynes said significant progress has been made in treating lung cancer with immune therapy. He noted that in the case of metastatic lung cancer, where the disease has advanced to other areas of the body, Keytruda in combination with chemo has improved the five-year survival rate to 40%. Typically, the survival rate is only 5%.

Lung cancer is the leading cause of cancer death globally with more than 1.7 million people succumbing to the disease in 2020, according to the World Health Organization. People diagnosed with non-small cell lung cancer normally undergo surgery to remove the tumors if the disease is caught at an early stage. After surgery, patients undergo either observation or receive chemotherapy. Risk factors include a history of smoking and asbestos exposure among others.

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However, half of all patients with early stage non-small cell lung cancer have the disease return within five years after removing the tumors and most of them see the cancer return in two years, according to Dr. Mary O’Brien, a co-principal investigator in the trial and an oncologist at Royal Marsden Hospital in London. Patients live with the constant fear and anxiety that the cancer will return, she said.
Keytruda stops cancer cells from shutting down the body’s defense system. Cancer cells have a protein that binds to a receptor on T cells, which tricks them into not going on the attack. The Keytruda monoclonal antibody binds to this receptor instead, foiling the cancer’s trick and allowing the immune system to fight the disease.

Baynes said the drug is generally well tolerated, though there are side effects associated with the immune system kicking into gear. The most common complication is thyroid toxicity, which occurs when the thyroid releases too much hormone into the body. In more serious but rare cases, patients can develop pneumonitis, an inflammation of the lung tissue, he said. Thyroid toxicity is treated with antithyroid medication and pneumonitis with steroids.
Merck’s Keytruda sales totaled $17.2 billion in 2021 or about 35% of the company’s $48.7 billion in total revenue for the year. CEO Rob Davis told investors on Merck’s fourth-quarter earnings call that using Keytruda to prevent cancer from returning in patients is a major area of future growth for the company.
While the cancer immune therapy is a major area of clinical research, the FDA has only approved one treatment so far to prevent lung cancer from returning in patents who have undergone surgery. The agency approved Tecentriq, made by Genentech, last October.

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