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    Retail sales come up short in February as inflation slows consumer spending

    Retail sales rose 0.3% in February, below the 0.4% estimate as inflation seemed to impact consumer spending.
    Excluding autos, sales were up just 0.2%, well below the expected 0.9%.
    Online spending pulled back sharply, while sales totals for gasoline soared as prices jumped higher.

    An Amazon Prime truck pulls away after a delivery in Washington, DC, on February 17, 2022.
    Nicholas Kamm | AFP | Getty Images

    Consumers continued to spend in February through at a slower pace than expected, according to a Commerce Department report Wednesday.
    Advance retail sales grew 0.3% for the month, slightly below the 0.4% Dow Jones estimate. Stripping out autos, sales were up 0.2%, well below expectations for a 0.9% increase and indicative that after a rapid pace to start the year, consumers were slowing down.

    The spending numbers were well below the rise in prices, which increased 0.8% in February, according to Labor Department data released last week. Retail spending numbers are not adjusted for inflation.
    The biggest dent in February’s numbers came in online shopping, with nonstore sales down 3.7%.
    One bright spot in the numbers released Wednesday is that January spending was revised up to an increase of 4.9%, a blistering pace that was even stronger than the initial estimate of 3.8%.
    The two-month numbers “suggest that real consumption growth remains reasonably solid” though some headwinds are beginning to show, particularly from expected interest rate increases coming from the Federal Reserve, said Andrew Hunter, senior U.S. economist at Capital Economics.
    “With real disposable incomes having already been falling since mid-2021, as earlier fiscal support was withdrawn, and the more general surge in prices took its toll, real consumption growth still looks likely to slow over the coming months, particularly when the personal savings rate is already below its pre-pandemic level,” Hunter wrote. “It also may not be long before Fed tightening starts to hit spending on big-ticket durables.”

    Consumers, however, remain flush with cash, finishing 2021 with $1.4 trillion in savings though the personal saving rate, most recently at 6.4%, has been coming down steadily during the pandemic era.
    Demand has been extraordinary for goods over services, and demand has struggled to keep up. That has fueled inflation running at a 7.9% rate on a 12-month basis, the fastest pace in more than 40 years.
    On a year-over-year basis, retail spending was up 17.6%, the Commerce Department said.
    The meteoric surge in gas prices has pushed that number to a large degree, with sales at gas stations up 5.3% in February and 36.4% from a year ago. Prices at the pump rose about 7% in February alone, according to the Energy Information Administration.
    Bar and restaurant sales also showed strong gains for the month, up 2.5% and good for a 33% year-over-year increase. Health and personal care stores saw a 1.8% decline while furniture stores were off 1% and motor vehicles and parts dealers rose 0.8%.

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    Oil market heads for 'biggest supply crisis in decades' with Russia's exports set to fall, IEA says

    Three million barrels per day of Russian oil output is at risk as sanctions weigh and buyers shun the nation’s exports, the International Energy Agency said Wednesday.
    “The prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock,” the Paris-based firm said.
    Russia is the largest oil and products exporter in the world, and Europe depends on the nation for supplies.

    Oil well pump jacks operated by Chevron Corp. in San Ardo, California, U.S., on Tuesday, April 27, 2021.
    David Paul Morris | Bloomberg | Getty Images

    Three million barrels per day (bpd) of Russian oil output is at risk beginning in April as sanctions hit and buyers shun the nation’s exports, the International Energy Agency said Wednesday.
    “The prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock,” the Paris-based firm said in its monthly oil report, adding that this could ultimately be the “biggest supply crisis in decades.”

    “The implications of a potential loss of Russian oil exports to global markets cannot be understated,” the IEA added.
    Russia is the third largest oil producer behind the United States and Saudi Arabia. But Russia is the largest oil and products exporter in the world, and Europe depends on the nation for supplies.
    In January 2022, total Russia oil and products production stood at 11.3 million bpd, of which around 8 million bpd is exported.
    Looking forward, the IEA said that 2.5 million bpd of exports are at risk. Of that 1.5 million bpd is crude, with products making up the other 1 million bpd.
    “These losses could deepen should bans or public censure accelerate,” the firm added.

    There’s also the possibility that peace is struck, curbing additional disruptions in the oil market.
    Ukrainian President Volodymyr Zelenskyy said Tuesday that an agreement was beginning to “sound more realistic.” Russian Foreign Minister Sergey Lavrov meantime told the BBC there was “some hope of reaching a compromise.” It’s unclear how sanctions would be unwound should an agreement be reached.
    So far the sanctions levied against Russia have targeted financial institutions and wealthy individuals. The U.S. and Canada have banned oil imports, while the U.K. has said it will phase out purchases. But other European nations have not followed suit given their dependence on Russia for energy.
    For the time being, energy supplies continue to exchange hands due in part to deals that were struck before Russia launched an invasion in Ukraine.
    But the IEA said that major oil companies, trading houses, shipping firms and banks are backing away from doing business with Russia thanks to reputational reasons and a lack of clarity around possible future sanctions.
    “New business has all but dried up,” the firm said.
    Russia’s invasion of Ukraine has sent oil prices into a tailspin, as worries over supply disruptions in an already tight market took hold.
    Crude surged above $100 for the first time since 2014 in late February the day Russia invaded Ukraine. Prices kept climbing from there. West Texas Intermediate crude, the U.S. oil benchmark, traded as high as $130.50 last week, with Brent crude almost reaching $140.
    But the blistering rally on the way up has been matched by a steep decline since. On Tuesday WTI traded at $96.62 per barrel, while Brent stood at $99.97.
    WTI tumbled under $100 on Monday, before both benchmarks closed below $100 on Tuesday.
    Oil is still up around 30% for the year, which is adding to inflationary pressures across the economy. Gas prices at the pump rose to the highest on record last week. And given oil’s widespread use — in plastics and manufacturing, for example — higher prices have impacts across sectors and industries.
    “Surging commodity prices and international sanctions levied against Russia following its invasion of Ukraine are expected to appreciably depress global economic growth,” the IEA said.
    Given this, the firm cut its oil demand forecast by 1.3 million bpd across the second, third and fourth quarters of this year. The IEA now pegs total 2022 total demand at 99.7 million bpd, up 2.1 million bpd from 2021’s levels.
    OPEC expressed a similar sentiment in its monthly report released Tuesday.
    “Looking ahead, challenges to the global economy — especially regarding the slowdown of economic growth, rising inflation and the ongoing geopolitical turmoil will impact oil demand in various regions,” the group said.

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    Chipotle is testing a robot that makes tortilla chips — and its name is 'Chippy'

    Chipotle’s culinary and technology teams are working with Miso Robotics to customize its latest robotic solution, Chippy, to cook and season the restaurant chain’s tortilla chips.
    The company is relying on the “stage-gate process” it uses for new menu items to test and learn from workers and guests before deciding if it moves ahead with a national rollout for Chippy.
    Miso Robotics’ robots are also being used at White Castle for burgers and tested at Inspire Brands’ Buffalo Wild Wings for wings.

    Chipotle is testing out an autonomous kitchen assistant, Chippy, which offers a robotic solution for making chips in restaurants.
    Courtesy: Chipotle

    Chipotle is testing a new autonomous kitchen assistant to handle cooking up one of its core menu items —tortilla chips.
    The company’s culinary and technology teams are working with Miso Robotics to customize its latest device, dubbed “Chippy,” to cook and season Chipotle’s chips with salt and fresh lime juice. Through artificial intelligence, Chippy is trained to recreate the exact recipe.

    The robot is being tested at the Chipotle Cultivate Center, the company’s innovation hub in Irvine, California, and will be used in a restaurant in Southern California later this year. The company is relying on the “stage-gate process” it uses for new menu items to test and learn from workers and guests before deciding whether it should move ahead with a national rollout of Chippy.
    Curt Garner, Chipotle’s chief technology officer, said the idea originated when the company started thinking about using technology and AI to be a better predictor of when restaurants might run out of chips during the day. It’s also hard for workers to leave the make line to fry more chips during peak times. Beyond that, leaning on tech could make the process more efficient and less mundane.
    “We asked our team members if we could find a better mousetrap for anything in the restaurant, and what that would be, and up at the top of the list was a better way to make chips,” Garner told CNBC in an interview.
    Chippy relies on some of the same tech in Miso Robotics’ Flippy 2 chicken-wing-making robot, including the same arm and a similar frame, CEO Mike Bell said. The company’s robots are also being used at White Castle for burgers and were tested at Inspire Brands’ Buffalo Wild Wings for wings.
    The challenge was ensuring it got Chipotle’s chip recipe down correctly.

    “This brand is crazy about freshness and their ethos is that everything’s got to be made really well,” Bell said in an interview. “We’ve had their culinary team to our facility, doing blind taste testing … getting high marks and getting past that team was a really big pressure for us.”
    Miso’s robots can cost up to $3,000 a month, and it continues to pilot and test with top restaurant chains. Chipotle has not revealed how much money it has invested in the project so far, as it is in early stages.
    As the labor market continues to strain competitors in the space, Chipotle has said it is looking for ways to make its jobs more consistent and efficient. But CEO Brian Niccol told analysts last quarter, “We’re very fortunate, we’ve not seen the ‘great resignation’ that you read about or hear about at our company.” Chipotle is not looking to Miso to replace workers, but instead to make their jobs more seamless, according to Garner.
    “I think we remain in a really strong place as it relates to labor,” Garner said. “We didn’t approach this from a lens of trying to solve for a labor problem. We approached it from a lens of what would make it easier, more fun, more rewarding, and how do we take away some of the tasks that team members don’t like and give them more time to focus on the tasks that they do?”
    Chipotle is looking at technological solutions for other aspects of its business, too, Garner said. It’s already using AI with its concierge chat bot, Pepper, on its website and app. The company also revealed it made an investment in Nuro, a SoftBank-backed autonomous delivery vehicle start-up, in March 2020.
    Garner also pointed to tasks like washing dishes that could be a good fit for automation down the road, along with looking at new technologies and ways to run its digital kitchens in the future. Digital sales made up 41.6% of the company’s sales last quarter.
    Chipotle shares closed up 1.47% on Tuesday, and are down 14.5% year to date.

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    Chinese stocks trading in the U.S. rocket higher after China signals support for the shares

    Shares of Chinese companies listed publicly in the U.S. surged Wednesday as China on Wednesday signaled support for the stocks.
    Regulators from both countries are progressing toward a cooperation plan on U.S.-listed Chinese stocks, according to Chinese state media.
    The move comes as ADRs of Chinese companies have been beaten down recently amid regulatory and delisting fears.

    A pedestrian walks past the Alibaba headquarters building in Beijing.
    Sheldon Cooper/SOPA Images | LightRocket | Getty Images

    Shares of Chinese companies listed publicly in the U.S. surged Wednesday as China on Wednesday signaled support for the stocks.
    Regulators from both countries are progressing toward a cooperation plan on U.S.-listed Chinese stocks, according to Chinese state media. The report cited a meeting Wednesday chaired by Vice Premier Liu He, who heads China’s finance committee.

    The Chinese government supports the listing of companies overseas and said its crackdown on technology companies should end soon, the state media report said.
    Alibaba jumped about 20%, JD.com added 24% and Pinduoduo rallied more than 35% in the premarket Wednesday.

    U.S.-listed Chinese stocks

    The move comes as American depositary receipts of Chinese companies have been beaten down recently amid regulatory and delisting fears. ADRs are shares of non-U.S. firms traded on U.S. exchanges.
    The Nasdaq Golden Dragon China index, which tracks the performance of U.S.-listed Chinese stocks, is down 38.8% in 2022 and 69.2% in the past 12 months.
    The Securities and Exchange Commission last week named five U.S.-listed ADRs of Chinese companies that failed to comply with the Holding Foreign Companies Accountable Act.

    The act allows the SEC to delist and even ban companies from listing on U.S. exchanges if American regulators cannot review company audits for three consecutive years.
    Last summer, Chinese regulators stepped up their oversight on U.S.-listed Chinese stocks. Regulators reportedly asked Chinese ride-hailing giant Didi to delist from the U.S. months after the company’s IPO.
    — CNBC’s Evelyn Cheng contributed to this report.

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    After MLB streaming deals, the battles for two big NFL media properties come into focus

    Apple’s MLB deal may just be the beginning for the tech giant, especially with a big National Football League rights package up for grabs.
    But the company faces stiff competition from legacy media companies and fellow tech giants alike while more games head to streaming outlets.
    Amazon has been considered the front-runner for the NFL’s Sunday Ticket package, which some industry observers say could be worth $3 billion.

    DK Metcalf, of the Seattle Seahawks, during a Meet & Greet with DIRECTV NFL SUNDAY TICKET subscribers at the DIRECTV NFL SUNDAY TICKET Lounge on Saturday Feb. 1, 2020, in Miami, FL.
    Peter Barreras | AP

    Apple is new to the sports media rights scene, but it’s already making noise.
    Last week, Apple announced it landed rights from Major League Baseball to stream games on Friday nights. The company plans to stream live pregame and postgame shows. Games will be free from local broadcast restrictions and won’t require an Apple TV+ subscription, for now.

    Terms of the deal were not announced, but Forbes reported Apple would pay nearly $600 million in a seven-year agreement.
    Apple’s MLB deal may just be the beginning for the tech giant, especially with a big National Football League rights package up for grabs. But the company faces stiff competition from legacy media companies and tech rivals alike while more games head to streaming outlets.
    In addition, MLB is close to reaching a similar deal with Peacock, CNBC parent company NBCUniversal’s streaming service, according to The Wall Street Journal. That deal returns MLB games to the media company for the first time since 1989, when NBC lost MLB rights to CBS Sports.
    Longtime media rights advisor Lee Berke called MLB’s deal with Apple the “right amount of games, at the right time.”
    The MLB deals are just a taste of what could be coming next in the sports streaming wars. Berke, the CEO of LHB Sports, which advises the U.S. pro sports leagues on media deals, said the biggest asset remaining on the table is the National Football League’s Sunday Ticket property.

    The crown jewel: NFL Sunday Ticket

    DirecTV still has the rights to the NFL’s out-of-market games for one more year. But NFL Commissioner Roger Goodell publicly said the league is seeking a more direct-to-consumer model around Sunday Ticket. Media pundits suggest Sunday Ticket is worth up to $2.5 billion annually. That’s higher than the $1.5 billion DirectTV pays in its current pact.
    Dan Cohen, the senior vice president of Octagon’s global media rights consulting division, predicted a $3 billion asking price.
    It’s unclear what the NFLs plans are for Sunday Ticket. The DirectTV deal expires in 2023, so a deal isn’t likely to happen soon and could come during the 2022 season.
    Berke suggested the NFL could divide Sunday Ticket among outlets. It would be similar to the NFL splitting its alcohol rights. Anheuser-Busch lost complete control of alcohol rights but kept beer and hard seltzer. The NFL then added Diageo as a rights holder for hard alcohol worth $30 million per year.
    But in this potential split, DirecTV, now owned by private equity firm TPG, could keep satellite rights for its consumer base, especially in rural areas where streaming is still problematic. DirectTV would also keep out-of-home screens in commercial properties such as airports, bars and restaurants to protect its “substantial commercial establishment business,” said Berke.
    In this scenario, Apple would snag Sunday Ticket streaming rights. That package could also include the league’s mobile rights, which Verizon abandoned in its renewal last year. CNBC reported in October there were rumblings in league circles that the NFL wanted to lure Apple to buy the rights. Other companies could be in the running, too.
    CNBC also previously reported that Amazon is the front-runner to land for Sunday Ticket. Amazon already has exclusive rights to the NFL’s “Thursday Night Football” property, with an exclusive Saturday game. That was part of the over $100 billion media deal the NFL struck with networks and outlets in March 2021.  
    “I don’t think they want everything to be with Amazon,” Berke said. “And Apple has a tremendous need for additional content not only to grow their Apple TV+ service but also to grow sales of their own hardware and software worldwide.”
    The NFL, Amazon and Apple declined to comment.
    Apple, which has a $2.5 trillion market cap, is using its huge cash hoard to expand its business well beyond iPhones, computers, watches and the App Store. The company introduced Apple TV+ in 2019 as a $5-per-month subscription service that would run across all the big streaming platforms and compete with the likes of Netflix and Amazon with original content including series like “Ted Lasso” and movies like “The Tragedy of Macbeth.”
    “There’s no [company] out there that has the dry powder (money) that Apple has — even Amazon included in that list,” Cohen said. “If I’m a tier-one sports property in a market in which Apple TV+ matters to Apple, I’m lining up to get ready,” Cohen said.
    Also, some on Wall Street expect Apple will eventually capture the NFL’s rights. In a March 9 note to clients, investment firm Evercore called Apple’s MLB package a “fine first step,” but added baseball games are “unlikely to truly move the needle” for the company’s streaming service. “Sunday Ticket would be a different story as it is the only place to watch out of market games of America’s most popular sport,” the note said.
    Added Evercore: “Live sports rights are an area where Apple can leverage its significant financial firepower to win rights and also has the technical infrastructure to deliver a great user experience.”

    New York Giants wide receiver Sterling Shepard (87) catches a pass in front of Pittsburgh Steelers strong safety Terrell Edmunds (34) and linebacker Devin Bush (55) during the first half at MetLife Stadium.
    Vincent Carchietta | USA TODAY Sports

    What about NFL Media? 

    The NFL’s annual meeting is scheduled later this month in Florida. At that time, Goodell could provide an update about Sunday Ticket plans.
    NFL’s media arm is also the subject of deal speculation.
    In June 2021, Dallas Cowboys owner Jerry Jones and New England Patriot owner Robert Kraft told The Wall Street Journal the NFL would seek “investment partners” for NFL Media. The entity operates NFL Network, NFL RedZone, NFL.com and NFL’s international property.
    “As the whole world of communications and digital media changes, we want to find a partner who can further help us maximize the reach and potential the NFL assets represent,” Kraft told the outlet.
    Apple and Amazon have the consumer reach, data and tech infrastructure to align with NFL’s vision for growth and help the league achieve its international ambitions. It’s unclear how much the property is worth on the marketplace.
    Berke referenced MLB’s agreement to sell its MLB Advanced Media property to Disney for more than $2 billion in 2017 as an example of what could happen. That deal included licensing rights to stream MLB games. The company converted BAMTech into Disney Streaming Services.
    In August 2021, Disney purchased the National Hockey League’s 10% stake in the streaming tech for a reported $300 million. It gave Disney an 85% stake, and MLB has a 15% stake — worth at least $750 million.  
    MLB’s decision to sell the majority of the tech netted team owners roughly $50 million each, according to the Sports Business Journal. Should Goldman Sachs, which the NFL selected to help find partners, lure investors for NFL Media, club owners will profit and team values could increase.

    New York City FC forward Valentín Castellanos (11) passes the ball forward against Portland Timbers midfielder Diego Chara (21) during the MLS Cup Final between the Portland Timbers and New York City FC on December 11, 2021 at Providence Park in Portland, Oregon.
    Brian Murphy | Icon Sportswire | Getty Images

    MLS rights still on the market

    On the Major League Soccer front, Commissioner Don Garber said there’s “a lot of interest” in the marketplace for MLS rights. Garber said a deal could be reached by the end of the first quarter, which is about two weeks away.
    In December, CNBC reported the league is seeking $300 million per year, up from roughly $90 million per season. But media executives suggest that figure would likely to fall to within the $150 million to $200 million range, especially since MLS lost control of the U.S. national team rights, which it bundled. The national team entered an exclusive deal with Turner Sports for a reported $25 million per season.
    Viewership is the most critical metric in rights deals.
    In the first three weeks of the 2022 season, MLS is averaging 298,000 viewers for national games. In the 2021 MLS regular season, the league averaged 276,000 viewers for 31 regular-season games across ESPN channels, including ABC. That’s up from the average 233,000 viewers who consumed 39 MLS games in 2020 on ESPN platforms. Fox said viewership increased 4% across its platforms.
    “The challenge for them is to develop growth as far as their television ratings are concerned,” said Berke. “To date, it hasn’t grown to a huge extent. That’s where the upside is for (MLS), so they’ve got to come up with the right media mix to make that happen.”
    MLS’ package will include streaming to local games and a new monthlong championship tournament that starts in 2023. Called the “Leagues Cup,” the tournament will feature MLS teams playing against Mexico’s Liga MX league clubs.
    Garber called the rights an “unprecedented, unique package with every single game, whether it’s a traditionally national linear game or it’s a local game — or it’s a global game.”
    He added, “We’re talking to anybody that is in this business. Whether it’s a streamer, or a traditional media company. I’m encouraged by the interest and hope to be able to finalize something soon.”

    Austin Cindric, driver of the #2 Discount Tire Ford, celebrates in the Ruoff Mortgage victory lane after winning the NASCAR Cup Series 64th Annual Daytona 500 at Daytona International Speedway on February 20, 2022 in Daytona Beach, Florida.
    Chris Graythen | Getty Images

    NASCAR, Big Ten could enter $1 billion club

    NASCAR’s deals with NBC and Fox are set to expire in 2024. NASCAR brings in more than $800 million combined in the deals and could see an increase that reaches $1 billion annually.
    NASCAR recovered from the Covid pandemic with its 2022 Daytona 500. The event averaged roughly 8.8 million viewers for Fox, up from the rain-delayed 2021 Daytona 500, which averaged 4.83 million viewers. It marked the lowest-viewed Daytona 500 in the history of the race. Roughly 7 million viewers watched the 2020 event.
    Advertisers increased spending around NASCAR events. The national ad spend for the 2021 Cup Series was $93.7 million, according to measurement company iSpot. That’s up from $80.2 million for the 2020 Cup Series.
    “I’m bullish on NASCAR,” said Cohen. He praised NASCAR President Steve Phelps for “reimagining” the sport. NASCAR added dirt tracks, remodeled its cars and introduced celebrity owners such as Michael Jordan, and Phelps said NASCAR’s diversity push will help the sport grow.
    “If we think about where this sport is going, diversity is playing a huge part in it,” Phelps told CNBC’s “Tech Check” last month. “We’re doing it with both our fan base, our ownership base, and frankly with our employee base. It’s intentional, and it’s very important for the overall success of the sport.”
    The NCAA’s Big Ten also could be in line for a media rights raise.
    The powerhouse conference will lure its first media rights deal under Commissioner Kevin Warren. The Big Ten is entering the last year of a reported $2.6 billion deal with ESPN, Fox and CBS that former Commissioner Jim Delany negotiated in 2017.
    The Big Ten features elite football programs such as Ohio State and the University of Michigan, which drew an average of 15.8 million viewers for their matchup in December. Some sports media observers have suggested the Big Ten could seek $1 billion annually.
    “I think the Big Ten is poised for some serious gains,” Cohen said. “And you’ve got big brands in the Big Ten that go beyond just Ohio State and Michigan.”

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    Stocks making the biggest moves premarket: Nvidia, Boeing, Micron and others

    Check out the companies making headlines before the bell:
    DiDi Global (DIDI), Alibaba (BABA), JD.com (JD), Pinduoduo (PDD) – China-based stocks listed in the U.S. are staging strong rallies in premarket trading, helped by state media reports that the Chinese government will take steps to support the markets and the economy, and that the U.S. and China are progressing toward an agreement on regulatory requirements for those companies. Didi surged 36.7% in the premarket, with Alibaba up 19.2%, JD.com rallying 21% and Pinduoduo soaring 32.5%.

    Nvidia (NVDA) – The graphics chipmaker’s stock added 2.3% in the premarket after Wells Fargo added it to its “signature picks” list. The firm anticipates upbeat announcements from Nvidia at its upcoming investor day, and also said the recent market downdraft has helped create a favorable risk/reward profile.
    Boeing (BA) – Boeing gained 2% in premarket trading after Baird declared the stock a “bullish fresh pick” following a recent sell-off and noted that 737 MAX deliveries to China are close to resuming.
    Pfizer (PFE), BioNTech (BNTX) – Pfizer and partner BioNTech have asked the FDA to approve a second booster dose of their Covid-19 vaccine. A decision could come in time for an autumn vaccination campaign. BioNTech jumped 4.4% in premarket trading, while Pfizer rose 0.6%.
    Micron Technology (MU) – Micron rallied 4.7% in the premarket following a Bernstein double upgrade to “outperform” from “underperform”. Bernstein said the Ukraine conflict won’t result in any significant memory chip supply or demand destruction, while also noting the recent sell-off in Micron and other semiconductor stocks.
    Spotify (SPOT) – The streaming services company signed a stadium and shirt sponsorship deal with Spanish soccer team FC Barcelona, with the Spotify brand on uniform shirts for the next four seasons. Spotify rose 2.6% in premarket action.

    NortonLifeLock (NLOK) – NortonLifeLock’s $8.6 billion deal to buy British cybersecurity rival Avast may get an in-depth probe by UK regulators, who say the deal raises competitive concerns. NortonLifeLock said it does not intend to submit any potential remedies for those concerns. Its stock slid 5.5% in the premarket.
    Lands’ End (LE) – The apparel retailer missed estimates by 10 cents with quarterly earnings of 21 cents per share, while revenue also fell short of Street forecasts. Lands’ End also gave a weaker-than-expected forecast as it faces increasing costs and continued supply chain challenges. Lands’ End tumbled 9.5% in premarket trading.
    Shoe Carnival (SCVL) – Shoe Carnival shares slid 3.3% in the premarket despite an upbeat quarterly report which saw it beat estimates on both the top and bottom lines. The shoe retailer issued a full-year revenue and profit forecast range that was largely – but not completely – above current Street forecasts. Shoe Carnival also announced a 29% dividend increase.

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    China says it will support Chinese IPOs abroad, calls for closure on tech crackdown

    Chinese and U.S. regulators are progressing toward a cooperation plan on U.S.-listed Chinese stocks, state media said, citing a financial stability meeting Wednesday chaired by Vice Premier Liu He.
    Days of worries about U.S. delisting risks, on top of existing concerns about economic growth, had sent Chinese stocks plunging in New York and Hong Kong.
    Hong Kong’s Hang Seng Index surged in Wednesday afternoon trading, after closing Tuesday at fresh lows not seen in more than six years.

    Traders work during the IPO for Chinese ride-hailing company Didi Global Inc on the New York Stock Exchange (NYSE) floor in New York City, U.S., June 30, 2021.
    Brendan McDermid | Reuters

    BEIJING — China signaled support for Chinese stocks on Wednesday, after days of worries about U.S. delisting risks sent the stocks plunging in New York and Hong Kong.
    Chinese and U.S. regulators are progressing toward a cooperation plan on U.S.-listed Chinese stocks, state media said, citing a financial stability meeting Wednesday chaired by Vice Premier Liu He.

    Liu also heads the central government’s finance committee and is a member of the Chinese Communist Party’s central committee politburo — the country’s second-highest circle of power.
    “The Chinese government continues to support various kinds of businesses’ overseas listings,” the state media report said in Chinese, translated by CNBC. The article said regulators should “complete as soon as possible” the crackdown on internet platform companies.
    The report of Wednesday’s meeting also said authorities would work towards stability in Hong Kong’s financial market as well as the struggling real estate sector.

    Read more about China from CNBC Pro

    Hong Kong’s Hang Seng Index extended earlier gains, surging 9% Wednesday afternoon, rebounding from its lowest close in six years. Chinese tech giants Alibaba and Tencent soared more than 20%, while other major Chinese tech stocks jumped.
    “China’s top leaders finally broke the silence to respond to the recent market selloff,” Larry Hu, chief China economist at Macquarie, said in a report. “The tone of the meeting is strong, suggesting that policymakers are deeply concerned about the recent market rout.”

    Worries about forced Chinese stock delistings from U.S. exchanges had added to investors’ concerns about economic growth following a resurgence of Covid-19 and the Ukraine war. On Monday, JPMorgan China Internet analysts Alex Yao and a team said they considered the sector “uninvestable” for the next six to 12 months, and downgraded 28 of the stocks they cover.
    The U.S. Securities and Exchange Commission said last week that U.S.-listed securities for five Chinese companies are at risk of delisting.
    It was the first time the regulator had named specific stocks for failing to adhere to the Holding Foreign Companies Accountable Act. Passed in 2020, the act would allow the SEC to delist Chinese companies from U.S. exchanges if American regulators cannot review company audits for three consecutive years.
    Beijing’s concerns about information security have generally prevented Chinese companies from allowing such audits.

    Early on Friday, the China Securities Regulatory Commission said in a statement that, along with the Ministry of Finance, it has made progress in communication with the U.S. Public Company Accounting Oversight Board.
    “We believe that through joint effort both sides will, as soon as possible, be able to make arrangements for cooperation in line with the two countries’ legal and regulatory requirements,” the Chinese securities regulator’s statement said, according to a CNBC translation.
    The PCAOB did not immediately respond to a request for comment outside office hours.
    In the last two years, the Chinese government has cracked down on large technology companies over alleged monopolistic practices, and real estate developers’ high reliance on debt. Investors began to worry specifically about U.S.-listed Chinese stocks after Beijing clamped down on Didi just days after its New York listing in late June.
    Economists said in February the worst of China’s regulatory crackdown is over as Beijing shifts its focus to supporting economic growth.
    In late January, the China Securities Regulatory Commission’s director-general of the international affairs department, Shen Bing, told CNBC in an exclusive interview the commission hoped its forthcoming updated rules would help Chinese companies resume their overseas listings.

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    Three million migrants have now fled Ukraine —with the majority going to Poland. That could have major repercussions

    Three million migrants have so far fled the war in Ukraine, with more than half going to Poland.
    The influx is putting considerable strain on Polish authorities and humanitarian aid agencies, with questions arising as to how the European Union will provide support.
    An inflow of 5 million migrants could cost the EU $55 billion in 2022 alone, according to the Economist Intelligence Unit.
    But as the war continues, the movement of people could tick much higher.

    A child greets from the window of a bus after crossing the Ukrainian border with Poland at the Medyka border crossing, southeastern Poland, on March 14, 2022.
    Louisa Gouliamaki | AFP | Getty Images

    In less than three weeks, Russia’s invasion of Ukraine has sent 3 million people fleeing their homes to neighboring countries — with still millions more displaced domestically — in what has quickly become Europe’s worst migrant crisis since World War II.
    While the majority have been compassionately welcomed by host countries rejecting President Vladimir Putin’s indiscriminate attack, the sudden influx of people is having a profound impact on the European landscape — with potentially significant consequences.

    Nowhere is that impact more pronounced than in Poland.

    Poland: Ukraine’s closest neighbor

    Since the start of the war on Feb. 24, Poland has welcomed over 1.8 million refugees — almost twice the 1 million authorities had anticipated and increasing its population by 4.8%.
    The east European country is a natural point of entry for Ukrainians owing to their 530-kilometer shared land border, as well as numerous historical, cultural and economic ties. Indeed, there is already a sizeable Ukrainian diaspora in Poland following an earlier spate of migration after Russia’s 2014 annexation of Crimea.

    Ukrainian citizens who arrived to Krakow after fleeding from Ukraine are standing in a long queue to handle formalities for their stay in EU in the Consulate General of Ukraine in Krakow, Poland on March 14, 2022.
    Nurphoto | Getty Images

    But as the number of refugees requiring humanitarian assistance spirals well beyond initial estimates, it is putting considerable strain on the government and the dozens of relief agencies that have mobilized to help them.
    “First, all of the people knew where they wanted to go. They had some friends they wanted to stay with [in Poland],” said Dominika Chylewska, head of communications at Caritas Polska, a charity offering relief to migrants at Polish reception points including Przemysl, a city 12 kilometers from Ukraine’s border.

    We already see that there are more people coming without any final destination

    Dominika Chylewska
    head of communications, Caritas Polska

    Others still planned to travel further afield to Berlin, Prague and Tallinn, she said.
    “Now, we already see that there are more people coming without any final destination,” said Chylewska.

    Determining long-term status and financial aid

    That raises questions about the long-term fate of those migrants and what more the European Union will do to support host countries like Poland.
    “It puts the EU in a bind,” said Adriano Bosoni, director of analysis at intelligence firm RANE, highlighting decisions the bloc will face around financial aid and permanent residency.

    Lunch is served in a dining room of a former hospital building operating as a temporary shelter for displaced Ukrainians in Krakow, Poland, on Monday, March 14, 2022.
    Bloomberg | Getty Images

    So far, the EU has assigned 500 million euros ($547 million) for humanitarian aid to Ukraine. Yet estimates from the Economist Intelligence Unit suggest that the cost of supporting 5 million refugees could be 50 billion euros in 2022 alone.
    Meantime, the bloc has activated a never-before used Temporary Protection Directive granting Ukrainian nationals the right to live and work in host countries for up to three years.
    Longer term, however, it will have to decide if it will offer permanent asylum to migrants, and how it might redistribute them across the bloc to ease the burden on primary hosts like Poland, Hungary, Slovakia, Romania and Moldova.
    “The [Polish] government will not be able to cope with the crisis without extensive assistance from the EU. This includes both financial assistance and resettlements of refugees,” said Alessandro Cugnasca, country risk service manager at the EIU.

    Shifting Polish demographics

    Even before the crisis, Poland, a country of almost 38 million, was undergoing a demographic shift.
    In the years since joining the EU in 2004, the Eastern European nation has experienced high levels of emigration as skilled workers have headed west to other member states, seeking higher wages and increased opportunities.
    Meanwhile, a falling fertility rate — driven, like many of its Western peers, by greater sex education, higher female workforce participation, and increased urbanization — has added to the country’s overall population decline.

    The crisis has the potential to cause political instability over the medium term.

    Alessandro Cugnasca
    country risk service manager, EIU

    That could make Poland — already one of Europe’s fastest growing economies before Covid — a grateful recipient of long-term, skilled workers, said Bosoni.
    “Importing millions of young Ukrainian workers who can join your workforce and contribute makes sense from an economic point of view,” he said, citing the high education level of migrants, mostly women and children, from Ukraine.
    But still, the political risks for Poland and its neighbors are notable.

    Members of far-right political party ONR protest against the implementation of the welcome policy towards foreign migrants from Syria and Iraq on September 12, 2015 in Lodz, Poland.
    Gallo Images | Getty Images

    Migration can be a political hot potato, with the 2015 Europe migrant crisis thought to have bolstered far-right movements that swelled across the continent in the years that followed. At that time, Poland was reluctant in accepting migrants, largely from Syria and North Africa — a fact that has not gone unnoticed in its response to Ukraine.
    “Polish citizens remain very supportive of Ukrainian refugees. But the crisis has the potential to cause political instability over the medium term,” noted EIU’s Cugnasca.
    “War refugees, unlike labor migrants, will require significant financial support from the state and this could lead to a political backlash down the road,” he added, pointing to Poland’s next parliamentary election due in 2023.

    Awaiting conflict resolution

    Of course, the longer term implications will depend largely on the outcome of the conflict, analysts agreed.
    If, as many fear, Russia succeeds in its invasion and installs a pro-Kremlin government, the likelihood of migrants returning home is far lower.
    But if, as Western allies hope, there is a resolution to the conflict that restores a sovereign Ukraine, the majority of migrants may choose to return home and embark on the lengthy task of rebuilding their war-torn country.
    “Most who left would like to be able to go back,” said Bosoni. “They are not economic migrants, they are people escaping war and death.”

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