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Honeywell’s decision to halt business activities in Russia following the country’s invasion of Ukraine is unlikely to cause problems for the company’s balance sheet, CEO Darius Adamczyk told CNBC on Monday.
“It has some implications, but it’s the right thing to do, it’s a little bit north of 1% of our overall shares, and our manufacturing presence there is relatively small,” Adamczyk said in an interview on “Mad Money.”
As for the company’s other possible headwinds, Adamczyk said that Honeywell’s supply chain and raw material costs have been manageable.

Honeywell’s decision to halt business activities in Russia following the country’s invasion of Ukraine is unlikely to cause problems for the company’s balance sheet, CEO Darius Adamczyk told CNBC on Monday.
“It has some implications, but it’s the right thing to do, it’s a little bit north of 1% of our overall shares, and our manufacturing presence there is relatively small,” Adamczyk said in an interview on “Mad Money.”

“We’ll see what happens. We’re monitoring the situation,” he added.
The technology firm is one of hundreds of companies that have stopped or curtailed operations in Russia including Adidas, McDonald’s and Apple. The company announced its decision to “substantially” suspend its activities on March 8.
As for the company’s other possible headwinds, Adamczyk said that Honeywell’s supply chain and raw material costs have been manageable. Honeywell’s fourth quarter revenue fell short of expectations last month due to supply chain issues, among other factors. 
“We’ve actually done a good job of protecting that business. Titanium is something we watch very closely and some of the components there, but we’ve been a little bit ahead of the game and secured sources of supply, so we’re in pretty good shape there.”
Honeywell stock was up 0.53% at the end of Monday’s trading session.

When asked about future plans, Adamczyk said that the company plans to buy $4 billion worth of shares, which he considers to currently be a “bargain,” and look toward making acquisitions.
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Covid restrictions in Chinese tech hub Shenzhen will cause “some disruption” to supply chains, Marvell Technology CEO Matt Murphy told CNBC.
The city of more than 17 million people is sometimes referred to as China’s “Silicon Valley.”
China is grappling with its worst Covid outbreak since the early days of the pandemic in 2020.

The latest round of coronavirus restrictions in major Chinese cities will likely add to supply chain challenges in the technology sector, the CEO of a semiconductor company told CNBC’s Jim Cramer on Monday.
In an interview on “Mad Money,” Marvell Technology CEO Matt Murphy specifically pointed to Shenzhen, a city of more than 17 million people in Guangdong province that’s sometimes referred to as China’s “Silicon Valley.” Officials in the tech hub directed all businesses that don’t provide essential services to halt production or have employees work remotely for a week due to a rise in Covid cases.

“More broadly, if you look at the situation in China, the lockdowns certainly have the potential to have all kinds of disruption in the electronics industry, in particular in Shenzhen, which I’ve visited many, many times over my career,” Murphy said. “It’s a city of like 17 or 18 million people, so there will be some disruption.”
Foxconn, a supplier to Apple, has paused production at its factories in Shenzhen. It told CNBC in a statement they would remain shuttered until getting government approval to restart operations.
Shenzhen’s health orders, which also include city-wide Covid testing and public transportation closures, come as China is experiencing sees its worst coronavirus outbreak since the early days of the pandemic in 2020. Some neighborhoods in Shanghai also have gone into lockdown and schools have shifted to online instruction.
The pandemic has had far-reaching economic effects, particularly on supply chains for key electronics components such as semiconductors. A shortage of those computer chips has hurt a number of industries, including automotive as vehicle makers were forced to limit production.
Murphy noted these challenges, particularly in Southeast Asia, but said “the industry has rallied and certainly Marvell has rallied.”

“Even though we’re still supply chain constrained, if you look at our organic revenue growth — if you include Inphi plus Marvell together — we’re growing the company in the high 30% range,” Murphy said. “We’re continuing to get more supply, but demand continues to outstrip it. A lot of challenges in the world. … It’s not going away anytime soon.”
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Squatters on Monday occupied a London mansion thought to belong to sanctioned oligarch Oleg Deripaska.
The protesters draped the luxury property with Ukrainian flags and a sign saying “this property has been liberated.”
The energy tycoon was sanctioned alongside six others last week as U.K. authorities seek to clampdown on Putin’s inner circle.

A group of squatters displayed banners and a Ukrainian national flag on the facade of a mansion supposedly belonging to Russian oligarch Oleg Deripaska in Belgrave Square, central London, on March 14, 2022 as they occupy it. Oleg Deripaska is one of the seven Russian oligarchs who have been sanctioned by Britain’s Government.
Tolga Akmen | AFP | Getty Images

LONDON — Squatters have occupied a London mansion thought to belong to one of the Russian oligarchs sanctioned by the British government.
The property in Belgrave Square — one of London’s most exclusive neighborhoods, located just moments from Buckingham Palace — is said to be owned by billionaire energy mogul Oleg Deripaska, who was sanctioned by authorities last week over his ties with Russian President Vladimir Putin.

Protesters took occupation of the luxury property early Monday, draping it with Ukrainian flags and a sign saying “this property has been liberated.”

According to the BBC, the group claimed to “do the job” of authorities, who have come under criticism for their apparent delay in clamping down on members of Putin’s inner circle.
Police in riot gear reportedly entered the property midday Monday after reports that the squatters were on the property. It is not clear how the protesters gained access to the building.
In a statement seen by Sky News, the Metropolitan police said they had completed a search of the property and were “satisfied” no protestors were inside. They added that they “continue to engage” with those on the balcony.
Ownership details of the multimillion-pound, historic property at Five Belgrave Square are murky. However, High Court documents named Deripaska as the beneficial owner over a decade ago, according to Sky.

Public records show the mansion was originally purchased and is currently held by Ravellot Limited, an offshore company incorporated in the British Virgin Islands, the BBC has reported.

People protesting the invasion of Ukraine occupy a mansion, reportedly owned by members of billionaire Oleg Deripaska’s family, in London, U.K., on Monday, March 14, 2022. The group plan to remain in the property until the war is over and all of the refugees have been housed, one of the protesters said.
Jason Alden | Bloomberg | Getty Images

At the request of the National Crime Agency, five bank accounts belonging to Graham Bonham-Carter, the named contact for Ravellot Limited, are now subject to asset freezing orders over his alleged links to Deripaska.
“We can confirm that the NCA has secured two Account Freezing Orders in respect of five bank accounts held by Mr Graham Bonham-Carter,” the NCA said in a statement shared with CNBC.
“The orders were obtained on the basis that there are reasonable grounds to suspect that the money in the accounts was derived from the laundering of funds of an individual subject to sanctions in the United States, namely Oleg Deripaska.”
The British government on Thursday put Deripaska, founder of metals and hydropower company EN+ and six other businesses, on a growing list of Putin allies sanctioned by authorities. The sanctions state that his assets will be seized and travel restricted.
The tycoon, whose wealth derives from the privatization of Russian state assets, has been under U.S. sanctions since 2018.
The protesters reportedly called for the seven-bedroom mansion, which houses a Turkish bath and home cinema, to be made available to Ukrainian refugees.
It comes after U.K. Housing Minister Michael Gove on Sunday touted a similar idea, telling the BBC that he was exploring the possibility of housing migrants in properties seized by the government.
“I want to explore an option which would allow us to use the homes and properties of sanctioned individuals for as long as they are sanctioned for humanitarian and other purposes,” he told the BBC.

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Shares of Moderna, BioNTech, Pfizer and Johnson & Johnson rose on Monday as China battles its worst Covid outbreak in two years.
Jefferies’ analysts, in a note on Monday, said the outbreak and lockdowns in China have fueled fear among investors that the pandemic will take longer to resolve than expected.
“Vaccine makers will continue to trade on global fear of more waves,” Michael Yee, an equity analyst, wrote in the Monday note.

Shares of the major vaccine makers rose on Monday as China battles its worst Covid outbreak since 2020, fueling fear that the pandemic will drag on which could drive demand for future vaccine orders.
Moderna’s stock jumped more than 8% to close at $150.07. In the morning, the biotech company’s stock had surged nearly 20% to hit an intraday high of $166.75.

BioNTech soared 12% to close at $151.92, Pfizer jumped 4% to $52.25, and Johnson & Johnson rose more than 1% to $171.69. Novavax turned negative and closed down more than 1% at $71.93, after jumping nearly 15% in the morning to hit an intraday high of $83.25.
The vaccine makers’ stocks rose even as the broader market fell, with traders monitoring the impact of the war in Ukraine and anticipating a rate hike by the Federal Reserve this week.
Major cities in China have placed fresh restrictions on business activity to fight the outbreak, driven by the omicron Covid variant. Shenzhen, a major tech hub in southern China, has told companies to halt all non-essential business activity or have employees work from home, while Changchun in the northeast has entered a lockdown. Apple supplier Foxconn has halted production in Shenzhen, while Toyota and Volkswagen have suspended production in Changchun.
In Shanghai, China’s financial hub, schools have gone back to online classes and officials told residents not to leave the city unless absolutely necessary. China has a strict zero-Covid strategy that uses tough measures to quickly stamp out outbreaks.
Mainland China reported more than 1,400 new Covid infections as of Sunday for a total of over 8,500 domestically transmitted cases, according to China’s National Health Commission. While low by international standards, it’s the most in China since March of 2020. China has not reported any new Covid deaths.

Jefferies’ analysts, in a note on Monday, said the outbreak and lockdowns in China have fueled fear among investors that the pandemic will take longer to resolve than expected.

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“Vaccine makers will continue to trade on global fear of more waves,” Michael Yee, an equity analyst, wrote in the Monday note.
While China will likely continue to rely on its domestic vaccine Sinopharm, the outbreak will keep the world on alert and probably drive demand for Moderna’s vaccine on the margins, according the Jefferies’ note. Moderna is projecting at least $19 billion in vaccine sales for 2022, while Pfizer is projecting $32 billion in revenue for its shots.
In the U.S., Covid infections continue to decline after an unprecedented surge of infection driven by the omicron variant in December and January. The U.S. reported an average of more than 35,000 new Covid cases on Sunday, a 24% drop from the week prior, according to a CNBC analysis of data from Johns Hopkins University. New Covid cases in the U.S. peaked at an average of more than 800,000 cases a day on Jan. 15. However, more than 1,200 people are still dying every day on average from Covid in the U.S., though that’s down 9% from the week prior, according to the data.
The Centers for Disease Control and Prevention said last week that 98% of people in the U.S. now live in areas where they no longer need to wear facemasks in indoor public places.

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Low levels of immunity are complicating China’s efforts to limit spread during its surge in cases of the new Covid omicron BA.2 subvariant, Dr. Scott Gottlieb told CNBC on Monday.
“China has a population that’s very vulnerable to this new variant. This is a much more contagious variant, it’s going to be harder to control, and they don’t have a population that has natural immunity,” Gottlieb said.
The increasing number of cases of BA.2, known as “stealth” omicron, in mainland China have led some major cities to shutter nonessential businesses and move to online schooling.

Low levels of natural immunity are complicating China’s efforts to limit spread during its recent surge in cases of the new Covid omicron BA.2 subvariant, Dr. Scott Gottlieb told CNBC on Monday.
“China has a population that’s very vulnerable to this new variant. This is a much more contagious variant, it’s going to be harder to control, and they don’t have a population that has natural immunity,” the former Food and Drug Administration commissioner said in an interview on “Squawk Box.”

The BA.2 omicron subvariant, colloquially called “stealth” omicron, was first identified in late 2021.
“They haven’t deployed vaccines that are very effective against this particular variant, this omicron variant, and so they’re very vulnerable to spread right now. They didn’t use the time that they bought themselves to really put in place measures that would prevent omicron from spreading,” said Gottlieb, who is on the board of Covid vaccine maker Pfizer.
The increasing number of BA.2 cases in mainland China has led some major cities on Monday to shutter nonessential businesses and move schools to online instruction. The outbreak is the mainland’s worst since the height of the pandemic in 2020, and the strict response to it indicates a continuation of China’s zero-Covid strategy.

China’s zero-Covid policy entails strict quarantines and travel restrictions both domestic and international. While the policy has successfully kept cases down since the height of the pandemic, health officials have warned that China’s resulting lack of exposure to Covid leaves it vulnerable to harder-to-control strains such as omicron.
The latest omicron outbreak in China also has economic repercussions, since it could hinder already struggling supply chains, particularly for tech companies.

Apple shares dropped more than 2% midday, as the Chinese city of Shenzhen’s health orders halted activity at production plants of Foxconn, an important supplier to the iPhone maker. Activity will resume once Foxconn receives government approval to do so, the company told CNBC.
Gottlieb said China’s outbreak could be bigger than what is being reported, adding uncertainty to the situation.
“We really don’t know how large the outbreak is in China right now,” Gottlieb said. “We don’t know if there’s tens of thousands of cases or hundreds of thousands of cases.”
Mainland China reported 1,437 new confirmed cases as of Sunday for a total of 8,531 domestically transmitted active cases. 
“People are going to get infected in those homes where they’re confining people right now, and the big question is: How much infection do they have and how long will this last?” Gottlieb said.
Disclosure: Scott Gottlieb is a CNBC contributor and is a member of the boards of Pfizer, genetic testing start-up Tempus, health-care tech company Aetion and biotech company Illumina. He also serves as co-chair of Norwegian Cruise Line Holdings’ and Royal Caribbean’s “Healthy Sail Panel.”

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“Because sentiment is already so negative, that bottom could come sooner than you’d think,” Cramer said.
This week, investors are also watching for the Federal Reserve’s expected announcement of a quarter-percentage-point rate hike after its two-day meeting concluding Wednesday.

Investors’ current poor market sentiment could lead to a market bottom soon, CNBC’s Jim Cramer said Monday.
“We also need … everyone to believe that the market can only go lower. We need wholesale capitulation. Crescendo selling, like when Covid hit. Or even when the big banks were almost done in 2009. Only then can we get a sustainable rally,” the “Mad Money” host said, referring to the fallout from the financial crisis that lasted from 2007 to 2008.

“Because sentiment is already so negative, that bottom could come sooner than you’d think,” he added.
Cramer’s comments come as Russia’s intensifying invasion of Ukraine continues to shake Wall Street after weeks of volatility. The broad-market S&P 500 index decreased 0.7% on Monday. The Nasdaq fell 2.04%, while the Dow Jones Industrial Average finished flat.
Bond yields rose ahead of the Federal Reserve’s expected announcement of a quarter-percentage-point rate hike after its two-day meeting concluding Wednesday. The move, meant to help curb skyrocketing inflation, is the first of several interest rate hikes the Fed is expected to implement this year.
Cramer said that while there are some stocks that are in a bull market, including those of health care companies, investors need to be patient in waiting for a snapback rally.
“We need to get through this tough period, and we will get through it,” Cramer said.

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More than 500 planes worth about $10 billion that are placed with Russian airlines are owned by foreign companies.
Aircraft lessors are facing a March 28 deadline to repossess aircraft.
A host of sanctions in response to President Putin’s Ukraine invasion have prevented foreign lessors from repossessing aircraft.

Aeroflot Russian Airlines civil jet aircraft produced by Airbus at Moscow-Sheremetyevo International Airport.
Leonid Faerberg | Lightrocket | Getty Images

Foreign aircraft lessors seeking to recover some $10 billion worth of planes from Russia were dealt a new blow Monday when President Vladimir Putin signed a law clearing the country’s airlines to fly the planes domestically.
Sanctions and reciprocal airspace closures in response to Russia’s invasion of Ukraine last month have cut off the country’s air travel market. Boeing and Airbus have said they will no longer supply parts to its airlines. That could force carriers to cannibalize other jets for parts.

There are some 728 Western-built aircraft in the country’s airlines’ fleets, 515 of them leased by foreign lessors, according to Jefferies. Under European Union sanctions, aircraft lessors — some of which are based in EU member Ireland — have until March 28 to recover the planes.
Under the new rules set Monday, the Kremlin will allow the country to provide airworthiness certificates to the planes and register them in Russia, according to state news agency Tass. The law was in the works last week.

“There’s an occasional nightmare but the idea of an entire aviation market being taken offline and flouting international laws, that’s new,” said Richard Aboulafia, managing director of aviation consulting firm AeroDynamic Advisory.
Aeroflot and S7, two of Russia’s biggest airlines, last week stopped flying internationally. Flights abroad could risk lessors moving to repossess the planes.

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Nikola will ask for shareholder approval to further dilute the stock by adding 200 million new shares to raise funds to scale production of its first electric semitruck.
Nikola said the increase – from 600 million to 800 million shares – is in the “best interests” of the Company and its shareholders.
Nikola’s annual meeting of shareholders is scheduled for June 1.

San Pedro, CA – December 17: The first two zero-emissions electric trucks, from an order of 100 vehicles, delivered from the Nikola Corporation to Total Transportation Services at the Port of Los Angeles in San Pedro on Friday, December 17, 2021.
Brittany Murray | MediaNews Group | Getty Images

DETROIT – Nikola Corp. will ask for shareholder approval to further dilute the company’s stock by adding 200 million new shares to raise capital as it scales production of its first electric semitruck.
The company said the increase – from 600 million to 800 million shares – is in the “best interests” of the company and its shareholders, according to Nikola’s proxy statement filed Friday to the Securities and Exchange Commission.

If shareholders don’t approve the increase during its annual meeting scheduled for June 1, the company said it “may be constrained in its ability to raise capital in order to support our business objectives, and may lose important business opportunities, including to competitors, which could adversely affect our financial performance and growth.”
Based on Nikola’s closing price Monday of $6.87 a share – down from a 52-week high of $19.52 – the company would raise about $1.4 billion in capital from the additional shares. Nikola’s stock has declined about 30% in 2022, including an 8.6% fall on Monday.
Nikola has about 414 million outstanding shares, according to FactSet.
Nikola CFO Kim Brady last month said the embattled electric vehicle company, which recently settled a federal probe that charged it with misleading investors, would “monitor the equity capital markets closely and raise additional capital when appropriate in 2022.” 
Nikola had a cash balance of $522 million at year-end, and it expects to spend between $295 million and $305 million in 2022. It also reported to have about $436 million of available liquidity through two equity lines.

Trevor Milton, founder of Nikola Corp., center, exits federal court in New York, U.S., on Thursday, July 29, 2021.
Angus Mordant | Bloomberg | Getty Images

Nikola last month projected it would generate revenue of between $90 million and $150 million in 2022 on deliveries of between 300 and 500 of its first battery-electric semitrucks — known as the Nikola Tre — to customers.
Nikola will also ask for shareholder approval of executive compensation, which includes annual salaries of $1 for each executive officer, according to Nikola Chair Stephen Girsky. However, the executives are being compensated in stock awards that are valued at millions of dollars.
For example, Nikola CEO Mark Russell’s total compensation was $5.6 million in stock awards in 2021, according to the filing. Russell owns 11.7% of the company, including shares co-owned with ousted Nikola founder and chair Trevor Milton, according to the filing.
Milton resigned from the company in September 2020 after short seller Hindenburg Research accused him of making false statements about the company’s technology to attract investors and partnerships.
Milton is scheduled to go on trial April 4 in Manhattan for allegedly defrauding investors in that company’s IPO, among other things.
— CNBC’s Lora Kolodny contributed to this report.

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