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    Foot Locker shares sink after retailer says 2022 sales will fall as it expects to sell fewer Nike products

    Foot Locker projects revenue to drop in 2022 as it anticipates it will no longer be able to sell as many products from its top vendor, Nike.
    The adjustments reflect the accelerated shift by Nike to sell more of its sneakers and apparel directly to consumers, Foot Locker said.
    Foot Locker also said this year it will be lapping a period where consumers had extra stimulus dollars in their pockets to spend.

    A sign hangs above the entrance of a Foot Locker store on August 02, 2021 in Chicago, Illinois.
    Scott Olson | Getty Images

    Foot Locker shares tumbled in premarket trading Friday after the retailer said it expects revenue to drop in 2022 as it anticipates it will no longer be able to sell as many products from its top vendor, Nike.
    Beginning in the fourth quarter of 2022, Foot Locker said no single vendor will represent more than 55% of its supplier purchases, compared with 65% in the year-ago period. On an annual basis, purchases from Nike won’t exceed 60% of total purchases this year, it said, down from 70% in 2021 and 75% in 2020.

    Foot Locker said the adjustments reflect the accelerated shift by Nike to sell more of its sneakers and apparel directly to consumers. In turn, Foot Locker said it is ramping up its own direct to consumer efforts, by launching a number of private label brands including in clothing.
    Sneaker brands such as Nike and Under Armour have been very clear about their efforts to reduce reliance on wholesale partners. By selling through their own brick-and-mortar stores and websites, these brands hope to reap higher profit margins. That has forced wholesalers, such as Foot Locker and Dick’s Sporting Goods, to launch more of their own lines.
    Foot Locker shares were recently falling more than 16% in premarket trading. Its stock is down about 5% year to date.
    Foot Locker’s net income for the three-month period ended Jan. 29 shrunk to $102 million, or $1.02 per share, from $123 million, or $1.17 a share, a year earlier. Excluding one-time items, it earned $1.67 per share, topping analysts’ estimates for $1.44, based on a Refintiv survey.
    Sales grew 6.9% to $2.34 billion from $2.19 billion a year earlier. That beat expectations for $2.33 billion.

    More concerning to investors was the footwear retailer’s bleak outlook for 2022. Foot Locker said Friday it expects sales to fall by 4% to 6% this year, and same-store sales are projected to decline by 8% to 10%.
    Analysts had been looking for year-over-year revenue growth of 2%, according to Refinitiv.
    Foot Locker also said this year it will be lapping a period where consumers had extra stimulus dollars in their pockets to spend.
    Find the full financial press release from Foot Locker here.

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    Stocks making the biggest moves premarket: Foot Locker, Cinemark, Dell and others

    Check out the companies making headlines before the bell:
    Foot Locker (FL) – Foot Locker shares slumped 16.1% in the premarket after the athletic apparel and shoe retailer gave a weaker-than-expected full-year profit and comparable-store sales outlook. The company cited changes in its vendor mix as well as a decline in fiscal stimulus versus a year ago. Foot Locker reported better-than-expected results for its fiscal fourth quarter, including an unexpected rise in comp sales.

    Cinemark (CNK) – Cinemark jumped 3.7% in the premarket after the movie theater operator reported an unexpected quarterly profit and revenue that beat Wall Street forecasts. Attendance jumped as Covid-19 restrictions loosened.
    Dell Technologies (DELL) – Dell tumbled 9% in premarket action after saying it expected its order backlog to swell this quarter, with supply chain issues limiting its ability to fulfill strong order demand.
    Block (SQ) – Block surged 16.5% in premarket trading after the payments company formerly known as Square reported better-than-expected profit and revenue for its latest quarter. Block also gave an upbeat forecast for the current quarter and the full year amid growing success for its Cash App.
    LendingTree (TREE) – The financial services company’s stock added 2.6% in the premarket after reporting a narrower-than-expected loss and revenue that exceeded analyst forecasts. LendingTree saw strong performance in its consumer segment during the quarter.
    Coinbase (COIN) – Coinbase reported quarterly earnings of $3.32 per share, well above the consensus estimate of $1.85, with the cryptocurrency company’s seeing revenue also topping Wall Street forecasts. However, Coinbase said volatility in the cryptocurrency market will result in lower transactions volume this quarter. Coinbase fell 2% in premarket trading.

    Beyond Meat (BYND) – Beyond Meat slid 10.8% in the premarket after reporting a wider-than-expected quarterly loss and revenue that fell slightly short of Wall Street forecasts. The maker of plant-based meat substitutes also issued a weaker-than-expected forecast as it expects a temporary disruption of U.S. retail growth.
    Etsy (ETSY) – Etsy shares surged 17.4% in premarket action after the online crafts marketplace beat quarterly estimates and issued a strong forecast. Etsy earned $1.11 per share for its latest quarter, compared with a consensus estimate of 79 cents, as it continues to see elevated demand that first developed during the pandemic.
    Zscaler (ZS) – Zscaler took an 11.6% hit in the premarket despite beating quarterly estimates on the top and bottom lines. Investors are focusing on the cybersecurity company’s weaker-than-expected outlook, although it reported its strongest year-over-year revenue growth in three years.
    Farfetch (FTCH) – Farfetch soared 30.5% in premarket action even though its adjusted quarterly loss of 3 cents per share merely matched estimates and revenue fell below the consensus estimate. The luxury fashion seller was profitable on an adjusted basis for 2021, encouraging investors after a recent tumble in the stock’s price.
    KAR Auction Services (KAR) – Carvana (CVNA) is buying KAR Auction Services’ vehicle auction business in the U.S. for $2.2 billion, as the online used-car seller moves to boost its physical presence. KAR soared 66.2% while Carvana rose 0.8% in the premarket.

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    Champions League final moved to Paris from St Petersburg after Russian invasion of Ukraine

     UEFA strips St Petersburg of its right to stage match after the Russian invasion of Ukraine.
    Russian and Ukrainian clubs and national teams competing in UEFA competitions to play home matches at neutral venues.

    This image, from 2016, shows the Stade de France in Saint-Denis, France.
    Tf-images | Defodi Images | Getty Images

    UEFA has moved the Champions League final on May 28 to Paris from St Petersburg, following Russia’s invasion of Ukraine.
    The UEFA executive committee held an emergency meeting on Friday and decided to move the showpiece to the Stade de France from the 68,000-capacity Gazprom Arena in Vladimir Putin’s home city.

    A UEFA statement said: “The UEFA Executive Committee today held an extraordinary meeting following the grave escalation of the security situation in Europe.
    “The UEFA Executive Committee decided to relocate the final of the 2021/22 UEFA Men’s Champions League from Saint Petersburg to Stade de France in Saint-Denis. The game will be played as initially scheduled on Saturday 28 May at 21:00 CET.
    “UEFA wishes to express its thanks and appreciation to French Republic President Emmanuel Macron for his personal support and commitment to have European club football’s most prestigious game moved to France at a time of unparalleled crisis.

    Read more stories from Sky Sports

    “Together with the French government, UEFA will fully support multi-stakeholder efforts to ensure the provision of rescue for football players and their families in Ukraine who face dire human suffering, destruction and displacement.”
    The executive committee also decided Russian and Ukrainian clubs and national teams competing in UEFA competitions will be required to play their home matches at neutral venues until further notice.
    This is set to affect Spartak Moscow in the Europa League and also Russia and Ukraine in the 2022-23 Nations League which is due to get under way in June.
    FIFA has yet to take a decision on what to do about next month’s World Cup play-off matches.
    Russia host Poland in a play-off semi-final on March 24 and would then face the winner of the Sweden vs Czech Republic semi-final in Russia for a place in Qatar.
    The federations of Poland, Sweden and the Czech Republic issued a statement on Thursday insisting matches should not be played on Russian territory and demanding “alternative solutions” be found.
    FIFA president Gianni Infantino said on Thursday his organisation would look at the matter with “urgency” but said he hoped the situation would be resolved by next month.
    Ukraine are due to face Scotland at Hampden Park in a play-off semi-final on March 24, but that match is also in doubt with the Ukrainian league suspended following the invasion.

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    Ukraine's neighbors brace for millions of migrants as Russian invasion escalates

    Europe is closely watching the fallout from Russia’s invasion of Ukraine, with implications reaching far beyond the military and economic.
    The continent is concerned that a full-blown incursion could lead to a major migrant crisis, with serious humanitarian, political and societal costs.
    Neighboring Poland, Romania, Czechia and Slovakia have already begun making preparations for inflows of up to a million people.

    People evacuated from the self-proclaimed Donetsk People’s Republic walk toward the Russian Emergency Ministry camp in the village of Veselo-Voznesenka on the Azov Sea coast, on February 19, 2022.
    Andrey Borodulin | Afp | Getty Images

    As the crisis in Ukraine unfolds, neighboring countries are closely monitoring the fallout.
    Nations across the globe have imposed unprecedented sanctions on Moscow, but the economic and military repercussions of Russia’s Ukrainian invasion are just part of the picture.

    The European continent is concerned that a full-blown incursion could lead to a major migrant crisis — the type not seen since World War II — with serious humanitarian, political and societal costs both for Ukrainian refugees and the countries to which they flee.
    Indeed, some central European nations are already making preparations.
    Poland, which shares an approximately 530-kilometer land border with Ukraine, said last month that it is preparing for up to 1 million Ukrainian refugees, whom they plan to house in hostels, dormitories and sports facilities. Nearby Romania is anticipating migration in the “hundreds of thousands,” while Slovakia and the Czech Republic put estimated inflows in the tens of thousands.
    The nature of the evolving situation in Ukraine, however, means the scale of potential civilian displacement is as yet unknown.
    “As far as Europe’s concerned, it’s potentially one of the biggest impacts of this crisis,” Oksana Antonenko, director of global risk analysis at Control Risks, told CNBC Tuesday.

    A full invasion could displace millions

    Ukraine, home to roughly 44 million, saw internal displacement of around 1.5 million people following Russia’s 2014 annexation of Crimea. Others still moved to Russia.
    Russia’s operation earlier this week to capture the rebel-held Donetsk and Luhansk regions was seen as likely to provoke similar internal and eastward migration, though on differing scales. Indeed, many have already been transported to Russia.

    But Thursday’s further incursion into central and western Ukraine could have far wider implications, experts have warned.
    The U.S. government estimates that an invasion could prompt one to five million Ukrainians to flee the country, and Ukraine’s defense minister put the figure at three to five million. Charity Unicef on Friday also projected that up to 5 million Ukrainians could flee the country.

    If that is to happen, we’re certainly talking about hundreds of thousands if not millions of refugees.

    Oksana Antonenko
    Director of global risk analysis at Control Risks

    “If that is to happen, we’re certainly talking about hundreds of thousands if not millions of refugees, and they will most likely be fleeing into Europe rather than Russia,” Antonenko said.
    “If you ended up with a Russian occupied Ukraine, then those would be longer term European refugees,” added Rodger Baker, Stratfor’s senior vice president for strategic analysis at Rane.

    Poland, Hungary and Slovakia key recipients

    In such a case, the lion’s share of people may move overland to border countries: Poland, Hungary, Slovakia, Moldova and Romania. Under EU policy, no visa is required for Ukrainians to enter the Schengen Area — a common travel area among EU countries, which includes all the aforementioned bar Moldova and Romania.
    But western European countries such as Germany, France and Britain could quickly feel the moral pressure to share the burden of what the U.K.’s defense secretary said would be the worst migrant crisis “since the war.”

    A woman carries her belongings as people evacuated from the self-proclaimed Donetsk People’s Republic sit in a bus waiting to be relocated.
    Andrey Borodulin | AFP | Getty Images

    Last week, the Pentagon said 3,000 U.S. troops had been deployed to Poland to help prepare for a potential influx of migrants after authorities there said it should be prepared for the “worst-case scenario.”
    “If there is a war in Ukraine, we have to be prepared for an influx of real refugees, people fleeing from the inferno, from death, from the atrocities of war,” Poland’s deputy interior minister, Maciej Wasik, told Polish television.
    “As a government, we must be prepared for the worst-case scenario, and for some time the interior ministry has been taking steps to prepare us for the arrival of even a million people.”
    Already, Poland is home to a sizeable Ukrainian community. Though few have claimed refugee status, Poland has issued around 300,000 temporary residence visas to Ukrainians in recent years. Indeed, some estimate as many as 2 million Ukrainians have migrated to Poland since the annexation of Crimea.

    Europe’s preparedness still in doubt

    While human rights watchdogs have welcomed the preparations, many have pointed to apparent double standards in central European countries’ willingness to accept refugees.
    During the 2015 European migrant crisis, which saw an influx of refugees primarily from Syria, Poland was reluctant to offer asylum. More recently, in 2021, Polish border guards violently pushed back a wave of primarily Iraqi Kurdistan migrants at the Belarusian border.

    Even when it’s a likelihood, governments are rarely fully prepared. They’re currently focused on the short-term.

    Rodger Baker
    senior vice president of strategic analysis, Ran

    Meantime, the political implications of such mass migration are not without concern. The 2015 refugee crisis is widely thought to have bolstered the far-right, anti-immigration movement that swelled across Europe in the years that followed. A similar influx of migrants could pose similar challenges in an already precarious post-Covid environment.
    But until governments know more as to the extent of a further invasion and the potential migration implications, their preparedness is likely to be limited.
    “Even when it’s a likelihood, governments are rarely fully prepared,” said Baker. “They’re currently focused on the short-term and prevention measures.”
    “Poland is highly sensitive to the situation,” he said, adding the others are “not looking and hoping for the best.”

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    China's trade with Russia won't be enough to offset sanctions, U.S. says

    In the hours after Russia invaded Ukraine, the U.S., U.K. and European Union announced new sanctions aimed at isolating Moscow from the global economy.
    China’s foreign ministry said Thursday the country’s trade with Russia and Ukraine would remain “normal” and refused to call the attack an “invasion.” Meanwhile, the customs agency approved wheat imports from Russia.
    China is the largest trade partner for both Russia and Ukraine.

    Russia’s Deputy Prime Ministers Yuri Trutnev, Tatyana Golikova, Andrei Belousov, Alexander Novak and Dmitry Chernyshenkosign joint documents following a video conference call between Prime Minister Mikhail Mishustin and China’s Premier Li Keqiang at the House of the Government.
    Dmitry Astakhov | Tass | Getty Images

    BEIJING — China’s trade with Russia isn’t enough to offset the impact of U.S. and European sanctions on Moscow, according to the White House.
    In the hours after Russia invaded Ukraine on Thursday, the U.S., U.K. and European Union announced new sanctions aimed at isolating Moscow from the global economy. The sweeping measures did not include restrictions on purchases of Russian oil and gas — a significant driver of the local economy.

    In Beijing, China’s foreign ministry said Thursday the country’s trade with Russia and Ukraine would remain “normal” and refused to call the attack an “invasion.” Meanwhile, the customs agency approved wheat imports from Russia.
    China and Russia’s share of the global economy is far less than that of the Group of Seven countries — which includes the U.S. and Germany. That means China “cannot cover” the impact of the sanctions, U.S. press secretary Jen Psaki told reporters late Thursday in Washington.
    China accounted for 17.3% of global GDP in 2020, versus Russia’s 1.7% and the G-7’s 45.8%, according to World Bank data.

    China is the largest trade partner for Russia and Ukraine. Both countries are part of the Belt and Road Initiative — a regional infrastructure development plan widely seen as Beijing’s effort to increase global influence.
    Trade between China and Russia reached a record high of $146.9 billion in 2021, up 35.8% year-on-year, according to China’s customs agency. China’s imports from Russia exceeded exports by more than $10 billion.

    From current levels of imports and exports, trade would need to grow by an additional 37% to reach Moscow and Beijing’s goal of $200 billion by 2024.
    China’s trade with Ukraine rose by 29.7% last year to $19.31 billion, also a record high, and split fairly evenly between imports and exports, according to customs data.
    “China and Russia are comprehensive strategic partners. China and Ukraine are friendly partners,” Assistant Foreign Minister Hua Chunying said Thursday in Mandarin, according to a CNBC translation.
    “Thus China will conduct normal trade cooperation, on the basis of [China’s] Five Principles of Peaceful Coexistence [for international relations] and the basis of friendly relationship with both countries,” she said. “This of course includes cooperation on energy.”

    Scale of economic impact still unclear

    Just under two-thirds of China’s imports from Russia were energy products in 2021, according to Chinese customs data. Russia is China’s largest source of electricity and second-largest source of crude oil, the agency said.

    Read more about China from CNBC Pro

    “China’s lifting of restrictions on Russian wheat and barley imports are clearly intended to offset the impact of sanctions, but it remains to be seen if this will primarily be a symbolic gesture or if it will have meaningful economic impact,” said Stephen Olson, senior research fellow at the Hinrich Foundation, a nonprofit organization focused on trade issues.
    “China’s ability to offset the impact of Western sanctions will be determined by the scale and scope of sanctions ultimately agreed to by the U.S. and its partners,” Olson said. “At this point, the West has not yet put all its cards on the table, leaving open the option of tightening the screws later, if need be.”
    The Russian ruble plunged to record lows against the U.S. dollar on Thursday as the invasion began.
    Western sanctions on Russia have stopped short of cutting the Kremlin off from SWIFT, the international payments network. As of January, the Chinese yuan was the fourth most-used currency for global payments, up from sixth place two years ago, according to SWIFT.
    China’s Hua on Thursday criticized the U.S. for providing military assistance to Ukraine and said Russia does not need such support from Beijing or others.
    Ties between Russian President Vladimir Putin and Chinese President Xi Jinping strengthened earlier this month with a high-profile meeting of the leaders in Beijing just before the Winter Olympics in the city.
    In an official readout, the Chinese side said the two countries need to “strengthen their strategic partnership on energy” and “advance cooperation on scientific and technological innovation.”
    On the same day, Russian energy giants Gazprom and Rosneft signed deals with the China National Petroleum Corporation to supply oil and natural gas to China.
    “As long as China continues to implement its trading relationship, those measures would already be very helpful to Russia,” said Tong Zhao, a senior fellow in the nuclear policy program at the Carnegie Endowment for International Peace, based in Beijing.
    Zhao, who emphasized he is not an expert on economic issues, said that if China took additional measures to support Russia, “it is likely to do those measures in a very low-profile manner in order to mitigate the provocations seen from European and other countries.”

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    U.S. is the ultimate safe haven for your money during Russia's war on Ukraine, Blackstone's Joe Zidle says

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    The world’s leading private equity firm suggests the U.S. the ultimate safe haven play.
    According to Blackstone’s Joseph Zidle, it’s largely insulated from the Russia-Ukraine war fallout.

    “The U.S. is an island of growth,” the firm’s chief investment strategist told CNBC’s “Fast Money” on Thursday. “The U.S. is one of the only major economies in the world that has this cushion of $6 trillion in stimulus.”
    Zidle notes the vast benefits are in household and corporate balance sheets.
    “It means the U.S. has this tremendous cushion for growth as the rest of the world faces these headwinds,” said Zidle.
    Wall Street may be getting the message. Stocks staged a massive turnaround in the final hour of trading. The Dow, S&P 500 and tech-heavy Nasdaq finished in positive territory.
    He acknowledges rising input prices tied to commodities to coordinated central bank hikes remain risks, too. But the strong labor market, said Zidle, is giving the U.S. a major advantage.

    Stock picks and investing trends from CNBC Pro:

    It’s one of the top reasons why Zidle is a long-term bull on housing, a group that has gotten swept up in the selling. The SPDR S&P Homebuilders ETF, which tracks the industry, is off 21% so far this year.
    “Personal income has gone up more than the increase in the mortgage rates,” he noted. “It’s important to consider… [the] strong labor markets and rising wages. And, historically housing ends up being more correlated to labor than it is to mortgage rates.”
    Zidle also expects job security and rising home values to favor consumer stocks.
    “Now, the consumer has got a lot of issues that they’re facing in terms of these higher input prices and there’s a lot of different things competing for wallet share. But I think a strong labor market can end up offsetting a lot of that,” Zidle said.
    Disclaimer

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    The battle to modernise Italy's corporate governance

    TWENTY YEARS ago Mediobanca was the epicentre of the salotto buono (the “fine drawing room”), a group of old-fashioned firms whose web of cross-connections dominated Italian business. Times have changed. Today the Milanese bank is in the modernising camp in a fight with two super-seniors over the future of 190-year-old Generali, Italy’s biggest insurer. Its outcome could decide whether Italy’s corporate governance is at last thrust into the 21st century.Listen to this story. Enjoy more audio and podcasts on More

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    How to avoid a fatal backlash against globalisation

    IN 1920 JOHN MAYNARD KEYNES reflected on the Britain he knew before the outbreak of the first world war. “The inhabitant of London”, he wrote, “could order by telephone, sipping his morning tea in bed, the various products of the whole earth.” Keynes’s Londoner “regarded this state of affairs as normal, certain and permanent”, and not long ago the globalisation of the present age seemed a similarly inexorable force. A new world war remains unlikely, but the uncomfortable echoes of the past in recent history suggest that a closer look at the rise and retreat of 19th-century globalisation might yield valuable lessons.Listen to this story. Enjoy more audio and podcasts on More