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    Target to test new curbside options: Returns and Starbucks order pickup

    Starting this fall at select stores, Target shoppers can return items and pick up a Starbucks drink without leaving the car.
    The retailer is adding the new features to Drive Up, its popular curbside pickup service.
    Target has been adding more merchandise and convenient features to the service, including fresh and frozen groceries and alcohol.

    A worker delivers an order to a drive up customer at a Target store on August 19, 2020 in Miami, Florida.
    Joe Raedle | Getty Images

    Shoppers at some Target stores will be able to pick up a Starbucks coffee and make a return without leaving the car later this year.
    The retailer said Wednesday that it will start to add those services to Drive Up, its curbside pickup option, at select stores in the fall. It declined to identify store locations or give a more specific timetable.

    Target has a Starbucks cafe in many of its big-box stores.
    A company spokeswoman said Target will begin testing with employees and then serve customers. She said the company plans to scale the features across the country.
    Curbside pickup has been a significant growth driver for Target during the Covid pandemic, as consumers look for quick, safe ways to shop. Shoppers can also pick up online purchases inside Target stores or get them dropped them off by Target-owned home delivery service Shipt. Those same-day online services grew nearly 60% in the third quarter, on top of 200% growth in the year-ago period.
    Target will report its fourth-quarter earnings Tuesday.
    The discounter has been adding more merchandise and features to the service, including hundreds of fresh and frozen groceries and alcoholic beverages.
    Target said in a news release that customers requested Starbucks pickup and returns. Shoppers will not need to use a pickup window to get a drink or make a return, the company said.

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    Kraft Heinz wants to make plant-based hot dogs through new joint venture

    Kraft Heinz announced Tuesday that it is forming a joint venture with TheNotCompany, a Chilean start-up that makes plant-based substitutes.
    The goal of the joint venture is to “democratize” plant-based food, according to Kraft Heinz’s U.S. president, Carlos Abrams-Rivera.
    Kraft Heinz is in the middle of a turnaround that includes revamping its best-known brands, like Oscar Mayer.

    Hot dogs could be the next grocery store item to get a plant-based makeover.
    Kraft Heinz announced Tuesday it is forming a joint venture with TheNotCompany, a Chilean start-up valued at $1.5 billion that creates plant-based substitutes for eggs, milk and meat. Shares of Kraft Heinz closed Tuesday up 5% on the news. The stock was down less than 1% in morning trading Wednesday.

    “Now we will have the advantage of bringing the products you love from the brands you trust also with a plant-based option,” Kraft Heinz U.S. President Carlos Abrams-Rivera said Wednesday on CNBC’s “Squawk Box.”
    “It’s thinking about whether you have Oscar Mayer hot dogs and Oscar Mayer ‘Not Hot Dogs,'” he added.
    Kraft Heinz is in the middle of a turnaround that includes revamping its best-known brands, like Oscar Mayer. A year and a half ago, the company revealed a master plan for Oscar Mayer that included new packaging, simpler ingredient lists and marketing that focuses on its status as an iconic American brand. The branding changes came after the company wrote down Oscar Mayer’s value in the fourth quarter of 2018 and again in the second quarter of 2019.
    Abrams-Rivera said that the goal of the joint venture is to “democratize” plant-based food. Meat substitutes that are meant to mimic the taste and texture of the animal-based version, like those made by Beyond Meat and Impossible Foods, still cost shoppers more in the grocery store than regular chicken or beef.
    According to Abrams-Rivera, roughly a third of Americans follow a flexitarian diet, which involves reducing meat intake in favor of more plant-based foods. As more consumers have added meat alternatives to their diets, Big Food has followed. PepsiCo is working with Beyond on a joint venture to create new plant-based snacks and drinks. Meat processing giant Tyson Foods has its own line of plant-based substitutes.
    Still, some have their doubts about the long-term interest in plant-based substitutes. Investors have taken their skepticism out on Beyond Meat, which has seen its shares tumble 65% over the last 12 months. Wall Street analysts have largely lost their confidence in the company as its grocery sales growth has slowed.

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    On Main Street, the need to take on more debt is rising with inflation

    The Small Business Administration’s EIDL loan program as part of Covid financial relief has ended and hopes it will be revived this year by Congress are not high.
    On Main Street, the need for business capital is still high due to inflation, supply chain issues and rising wages.
    More local businesses may be turning to bank loans or other sources of debt financing.

    SAN FRANCISCO, CA – APRIL 28: Deanna Sison takes a break from preparing preordered lunches to check the status of her federal small business loan application at Little Skillet restaurant in San Francisco, Calif. on Tuesday, April 28, 2020. Most Covid financial relief to small business has now ended, but the need for more funding remains.
    San Francisco Chronicle/hearst Newspapers Via Getty Images | Hearst Newspapers | Getty Images

    Price increases have been challenging for Superfit Hero, an independent plus-sized activewear brand. The Los Angeles-based company typically buys fabric from a local vendor that imports the material from Taiwan, then works with a local factory. But since the pandemic, “the whole process has been disrupted,” said Micki Krimmel, the founder and chief executive.  
    Like many businesses, the company shut operations in spring 2020, but as things reopened, the factory that Superfit Hero was using closed for good. Meanwhile, the price of fabric went up 20%. Krimmel eventually found a new manufacturer, but between higher manufacturing and material costs, prices have tripled since 2019. At the same time, supply chain disruptions meant the company needed to stockpile more material and items to ensure a supply of products for customers  

    “For small business, having to invest in so much inventory it means our cash flow is tied up. We can’t spend on marketing. It’s just it’s really pressure from all sides,” she said. 
    To ease the pressure, Krimmel applied for the Covid Economic Injury Disaster (EIDL) loan, $150,000 in the first round and half a million in the second round, which the business used to turn things around, stock up on fabric, buy extra inventory and pivot with some new products. 
    “EIDL is the only reason we’re still in business frankly,” Krimmel said. With the cash infusion and new products coming, “I am more optimistic now than I was last year,” she said. 
    But the EIDL loan program has ended, while higher costs due to goods inflation, supply chain struggles and rising wages, all remain issues challenging the financial picture for small business owners. 
    Inflation is at a 40-year high, and in the most recent CNBC|SurveyMonkey Small Business Survey for Q1, 47% of small businesses said they were passing price increases to customers, another 32% indicate they will have to raise prices soon if inflation persists (they think it will), and only 33% described business conditions as good. Other recent surveys from the National Federation of Independent Business and Goldman Sachs have presented a similar portrait of the Main Street outlook in an inflationary economy.

    To deal with higher costs, more businesses are taking out loans. 
    In a survey by the U.S. Chamber of Commerce, nearly half, or 45%, said they have taken out a loan to manage higher costs caused by inflation. According to the SBA, 29.3% of small businesses have sought EIDL loans since May 2020, while 9.5% sought bank loans. 
    Small businesses historically lean heavily on credit cards or family and friends for capital, said Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, but the pandemic changed that with the Paycheck Protection Program and EIDL loans. 
    The SBA distributed nearly $416 billion in emergency relief aid to 6 million small businesses through the PPP program, Restaurant Revitalization Fund, EIDL program and other programs in 2021. Now that those programs are over, some expect a turn toward more bank loans. 
    “Obviously, they got a lot of money over the last two years,” said Rohit Arora, chief executive of Biz2Credit, but “now with no other government money coming in, their need for credit is going to grow from here.”

    The end of government Covid financial relief

    Biz2Credit’s latest Small Business Lending Index found that loan approval rates increased in January — all kinds of lenders, from big banks to alternative lenders and credit unions are approving more loans though approval rates are still about half of what they were two years ago. 
    In its latest survey, Goldman Sachs 10,000 Small Businesses found that 48% of small business owners who said inflation was their biggest concern have less than three months of cash reserves on hand.  
    Small businesses are “going to be turning to banks a little bit higher than they would in the normal historical context. … We’re going to see that relationship really, really tested in the next several months,” Sullivan said. 
    The increased appetite for bank loans comes as interest rates are rising, and amid the recent market volatility and sudden flare-up of geopolitical tensions due to Russia’s actions in Ukraine, credit markets may tighten.
    Most small business lending programs, including the SBA, have floating rates. For businesses that really need a cash infusion, it’s also not an ideal time to get a loan because profit and loss statements from the last two years have likely been disrupted by the pandemic, supply chain problems, inflation and higher wages. The Covid EIDL program, besides offering an attractive 3.75% fixed rate, looked at pre-pandemic figures. 
    “It’s basically like a triple whammy. So the storm just keeps kind of getting more complicated and intense. In typical times you would not see businesses use capital to offset macroeconomic conditions,” said Joe Wall, national director of the Goldman Sachs 10,000 Small Businesses Voices program. Despite the headwinds, 73% of small businesses said they are optimistic about the financial trajectory of their business in 2022, the Goldman small business survey found.
    The EIDL program expired at the end of 2021, but there is hope that Congress might reintroduce it as part of a small relief package targeting small businesses, though policy experts are far from confident about its prospects on Capitol Hill. 

    What to know about lenders and debt financing

    With government lending programs done for the foreseeable future, business owners will need to turn to the usual funding sources. While loan approval rates are still about half of what they were before the pandemic hit in Feb 2020, they are rising in every category of lender, according to the Biz2Credit Small Biz Lending Index.
    Here are a few pointers from the small business debt experts on how to navigate the current economy and increase chances of accessing the capital a business may need to grow.
    1. Watch your credit score
    The last two years have been tough for many small businesses and lower credit scores translate into higher borrowing costs. Businesses, like individuals, also get a score that’s affected by payment history, amount of debt, and other factors. But unlike with consumer credit scores, payments to lenders aren’t always reported to agencies. Business owners can improve their scores by ensuring their business is incorporated with a federal employer ID, open a business credit card and bank account, and also work with vendors that report payments to business credit bureaus.
    2. Get taxes done early
    Businesses looking to get a loan soon should make sure their 2021 taxes are completed. Given the influx of government capital in the last couple years via PPP and EIDL loans, most balance sheets are holding up, said Arora, but profit & loss statements are another story. For those with weaker P&L statements, make sure there’s a solid explanation for why, said Arora, adding that “most lenders know P&Ls are lower because of Covid.”  
    3. Seek loans from a variety of sources
    Banks are major small business lenders, but not necessarily big banks. Community banks fund 60% of small business loans and 80% of agricultural loans, according to Sullivan.  “I cannot overstate the importance of these relationships and that is why community banks are so important in the small business finance ecosystem,” he said.
    Small businesses became more familiar with alternative, digital lenders during the pandemic and may want to consider online options again if more funding is needed. Key Covid financial relief programs like the Paycheck Protection Program included fintech companies in the loan process given the unprecedented volume of loans being made by the SBA, which contributed to greater awareness of fintech as a lending source.
    According to a May 2021 report from the New York Fed, fintech lending increased from as little as 2% to as much as 20% of PPP loan amounts during the pandemic, and fintech lenders were most frequently accessed by business owners underserved by the traditional large banking network and lacking existing relationships with lenders. The NY Fed found that fintech lenders approved the highest percentage of applications from Black-owned small employers.
    4. Tap free SBA resources and help
    Sullivan suggested that small businesses find resources through Small Business Development Centers or find a business mentor through SCORE. Both are public partnerships that don’t charge for their services. The Small Business Administration launched a Community Navigator program as a result of Covid to help business owners in underserved communities, including with access to capital.

    Arrows pointing outwards

    To learn more and to sign up for CNBC’s Small Business Playbook event, click here. More

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    Lowe's raises its earnings forecast as a tight housing market, older homes fuel projects

    Lowe’s sales grew 5% in the fiscal fourth quarter, as Americans bought, fixed and renovated homes in a tight real estate market.
    The home improvement retailer raised is forecast for fiscal 2022, saying it now anticipates between $97 billion and $99 billion in sales.
    The company said sales among home professionals, a steadier and more lucrative customer, grew 23% in the fourth quarter.

    Lowe’s on Wednesday surpassed quarterly earnings expectations and raised its forecast for the year, as Americans buy, fix up and renovate homes in a tight real estate market.
    Shares rose more than 2% in premarket trading, as the home improvement retailer said momentum carried into February.

    Aging houses, rising real estate values and generational trends are fueling demand for home projects. Americans — including millennials, the country’s largest generation — have been buying homes and upgrading to bigger ones during the pandemic. That has depleted the supply of available homes and inspired some to hire contractors to redo a bathroom, replace a roof or take on other similar projects.
    Those dynamics have lifted sales for Lowe’s and competitor, Home Depot.
    Here’s what Lowe’s reported for the quarter ended Jan. 28 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

    Earnings per share: $1.78 vs. $1.71 expected
    Revenue: $21.34 billion vs. $20.90 billion expected

    In the fourth quarter, Lowe’s net income rose to $1.21 billion, or $1.78 per share, from $978 million, or $1.32 per share, a year earlier. The results were above the $1.71 expected by analysts surveyed by Refinitiv.
    Sales climbed to $21.34 billion from $20.31 billion last year and outpaced analysts’ expectations of $20.90 billion.

    Lowe’s same-store sales in the U.S. increased 5.1% in the fourth quarter. Sales from pros grew 23% in the three-month period, too. The pros tend to be steadier and more lucrative customers.
    Lowe’s has historically drawn about 20% to 25% of its total sales from pros compared with Home Depot, which gets about half of its sales from them. Lowe’s has been chasing pros, however, with a new loyalty program and perks like reserved parking and free air for tires at its stores.
    Pro sales are growing for another reason, too. As the omicron variant recedes and schedules get busier again, some people are hiring contractors rather than taking on do-it-yourself projects.
    The retailer said it expects earnings per share to range from $13.10 to $13.60 on revenue of $97 billion to $99 billion to in fiscal 2022. It had previously forecast earnings per share of $12.94 on revenue of $97 billion for the year, which is a week longer than fiscal 2021.
    It said same-store sales will range from a decline of 1% to an increase of 1% for the full year.
    As of Tuesday’s close, Lowe’s shares are up 27% over the past 12 months. Shares closed Tuesday at $214.59, bringing Lowe’s market value to $144.58 billion.
    Read the company’s earnings press release here.
    This story is developing. Please check back for updates.

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    Stocks making the biggest moves premarket: Lowe's, Tenneco, Tupperware and others

    Check out the companies making headlines before the bell:
    Lowe’s (LOW) – Lowe’s shares added 1.6% in the premarket after the home improvement retailer beat top and bottom-line estimates for the fourth quarter. Lowe’s earned $1.78 per share, 7 cents above estimates, and issued upbeat full-year guidance as demand for tools and building materials remained elevated.

    Tenneco (TEN) – The automotive components maker agreed to be acquired by affiliates of Apollo Global Management (APO) for $20 per share in cash, compared with Tenneco’s Tuesday close of $9.98 per share. The deal is expected to close during the second half of this year. Tenneco soared 91.7% in premarket action.
    Tupperware (TUP) – The maker of home storage products saw its shares slump 3% in the premarket following its quarterly earnings report. Tupperware’s revenue was above Street forecasts, but its adjusted profit of 38 cents per share missed estimates by 14 cents amid what the company called “challenging operating conditions.” Tupperware noted it saw both top and bottom-line growth in 2021 despite those challenges.
    Palo Alto Networks (PANW) – The cybersecurity software company beat estimates by 9 cents with adjusted quarterly earnings of $1.74 per share and revenue that topped Street forecasts as well. Palo Alto also gave a better-than-expected forecast, and its shares rallied 7.8% in premarket trading.
    Virgin Galactic (SPCE) – The space tourism company’s stock jumped 4.1% in premarket action after it reported a narrower-than-expected quarterly loss and improvement in its cash position.
    Stellantis (STLA) – The automaker beat its profit targets in the first year following the merger of Fiat Chrysler and Peugeot parent PSA Group. It also said it was realizing projected benefits from that combination sooner than originally expected. Its stock surged 6.3% in the premarket.

    GlaxoSmithKline (GSK), Sanofi (SNY) – GlaxoSmithKline rose 1.7% in the premarket and Sanofi was up 1.5% following news that the two companies would submit their Covid-19 vaccine to global drug regulators for approval.
    Caesars Entertainment (CZR) – The casino operator’s stock jumped 4.5% in premarket trading after the company reported a 63% jump in revenue compared with a year ago, and a narrower loss.
    Mosaic (MOS) – The fertilizer producer’s shares slid 5.6% in premarket action after the company’s quarterly earnings and revenue fell below analyst forecasts. Mosaic said it expects upward pricing momentum to continue.
    Quest Diagnostics (DGX) – The medical lab operator’s stock was down 2.1% in the premarket after UBS downgraded it to “neutral” from “buy.” UBS cited risk to meeting management’s earnings target for fiscal 2023, given the company’s level of investment in growth.
    Kodiak Sciences (KOD) – The drugmaker said a mid-to-late stage trial of its experimental eye drug failed to show it was not inferior to Regeneron’s (REGN) Eylea macular degeneration treatment. Kodiak tumbled 69.2% in premarket trading while Regeneron jumped 4.5%.

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    Crypto companies are tempting top talent away from Big Tech to build ‘Web3’

    Crypto companies like Polygon and Circle are hiring top talent from Big Tech firms, enticing them with the pitch of working on the next “big thing” in tech — Web3.
    The Web3 movement proposes overhauling the internet in a way that would move online services over to decentralized technologies like blockchain.
    Tech executives are being drawn to the crypto industry due to its rapid growth and lucrative compensation packages, according to experts.

    YouTube, Facebook, Instagram and WhatsApp apps displayed on a smartphone.
    Florian Gaertner | Photothek | Getty Images

    Executives at tech giants like Google, Facebook and Amazon are quitting to take jobs in the buzzy world of crypto.
    Blockchain platforms such as Polygon and Circle have hired top talent from Big Tech firms lately, enticing them with the pitch of working on the next “big thing” in tech — Web 3.0, or Web3.

    Ryan Wyatt left YouTube earlier this month to lead a new gaming studio from Polygon. Wyatt had joined the Google-owned video site back in 2014 to head up a push into video games content and compete more aggressively with Amazon’s Twitch platform. 
    “When I started at YouTube Gaming almost eight years ago, I was the first person there,” Wyatt told CNBC in an interview. “We didn’t have a team. People were really starting to show interest in gaming video.”
    “I look at this opportunity very much the same way,” he added, describing the current stage of blockchain development as “early” and “exciting.”
    The buzz surrounding Web3 has attracted some of the brightest minds in tech. The Web3 movement proposes overhauling the internet in a way that would move popular online services over to decentralized technologies like blockchain.

    The list of Silicon Valley talent jumping ship for crypto also includes Sherice Torres, the former chief marketing officer of Facebook’s crypto and payments unit, Novi. She was hired by Circle in January. And Amazon cloud exec Pravjit Tiwana fled to join crypto exchange Gemini as its chief technology officer.

    David Marcus, the former head of Novi, resigned late last year. While he’s yet to unveil his next move, Marcus has been singing the praises of Web3 on Twitter.
    “I’ve never felt this connected to a community of builders like the crypto/web3 one,” Marcus tweeted last month.
    Experts say tech executives are being drawn to the burgeoning industry in part due to its rapid growth.
    “Naturally, people will want to work on what they view as the most exciting and innovative developments in the technology space, and currently, that is crypto and Web3,” Alex Bouaziz, CEO and co-founder of payroll software firm Deel, told CNBC.
    “Many are seeing it as the future of the tech industry, in the same way that Facebook and Amazon were attractive in the past.”

    Potentially lucrative career move

    There’s another thing that’s attracting talent at Big Tech companies to Web3: money.
    According to data from Blind, a social network for tech professionals, bitcoin exchange Coinbase offers as much as $900,000 a year for software engineers.
    Investment into crypto companies has surged, meaning they’ve got much more cash to spare on lucrative compensation packages for big hires. Blockchain start-ups raised a record $25 billion in venture capital last year, according to CB Insight figures.

    Tech start-ups also typically let staff own a piece of their company through stock option schemes. With valuations for private crypto companies soaring, that means early employees could be in line for a big payout in the event of a takeover or initial public offering.
    And the trend doesn’t just apply to the U.S.
    Recruitment firm Hays says it’s seeing crypto companies target talent from the likes of Facebook, Amazon and Apple in the U.K. and Ireland, too.
    “As more crypto/Web3 companies emerge, we expect the market for tech talent across all levels to become even more competitive,” James Hallahan, director of U.K. and Ireland for Hays’ technology division, told CNBC.

    Web3 has its skeptics

    Web3 is still a loosely defined term. It broadly refers to initiatives aimed at building a decentralized version of the internet based around crypto networks.

    In theory, platforms could reward users for their posts through blockchain-native tokens, flipping the advertising-fueled model of services like Facebook and YouTube on its head.
    But Web3 has drawn criticism from some big names in Silicon Valley. Twitter co-founder Jack Dorsey argues it’s too centralized and controlled by a handful of venture capitalists, while Tesla CEO Elon Musk views it as more of a “marketing buzzword” than reality.
    However, Wyatt said that when he started at YouTube, people were skeptical about the idea of watching others playing video games — even “endemic gamers.” Now, gaming is the second-biggest vertical on YouTube, according to Wyatt.
    Similarly, he thinks that some of the backlash against crypto and Web3 will subside as more fleshed-out experiences, like blockbuster video games and social apps, start to get rolled out.
    But don’t expect tech giants to take the challenge lying down.
    Meta started developing its Novi crypto wallet in 2019, and is reportedly considering rolling out new tools for non-fungible tokens, or NFTs.

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    Barclays full-year net profit quadruples as corporate and investment bank booms

    Fourth-quarter net income attributable to shareholders came in at £1.12 billion, outstripping a mean forecast of £756.5 million, according to Refinitiv data.
    The figures marked a significant improvement from the £1.53 billion net profit reported in 2020 and £220 million in the fourth-quarter of that year, as the U.K. navigated fresh nationwide Covid-19 lockdowns.

    Fog shrouds the Canary Wharf business district including global financial institutions Citigroup Inc., State Street Corp., Barclays Plc, HSBC Holdings Plc and the commercial office block No. 1 Canada Square, on the Isle of Dogs on November 05, 2020 in London, England.
    Dan Kitwood | Getty Images News | Getty Images

    LONDON — Barclays on Wednesday reported a full-year net profit of £6.38 billion ($8.67 billion) for 2021, ahead of analyst expectations of £5.75 billion, as its corporate and investment banking division boomed.
    Fourth-quarter net income attributable to shareholders came in at £1.12 billion, outstripping a mean forecast of £756.5 million, according to Refinitiv data.

    The figures marked a significant improvement from the £1.53 billion net profit reported in 2020 and £220 million in the fourth-quarter of that year, as the U.K. navigated fresh nationwide Covid-19 lockdowns.
    The British lender endured a turbulent final quarter of 2021, with longtime CEO Jes Staley resigning in November following an investigation by regulators into his relationship with Jeffrey Epstein. He was replaced by C.S. Venkatakrishnan.
    After the bank’s third-quarter earnings, Staley said 2021 was going to be “quite a year” for Barclays, as a significant boost from its corporate investment banking division continued to propel the group’s return on tangible equity — a key ratio used to assess profitability.

    Stock picks and investing trends from CNBC Pro:

    Profit before tax in the corporate and investment bank hit a record £5.8 billion, including record investment banking fees and equities income.
    Here are the other financial highlights:

    Common equity tier one capital (CET1) ratio was 15.1%, down from an all-time high of 15.4% at the end of the third quarter and equal to 15.1% in the final quarter of 2020.
    Return on tangible equity (ROTE) was 13.4%, compared to 14.9% in the third quarter and 3.2% for the fourth quarter of 2020.
    Net interest margin (NIM) was 2.52%, compared to 2.61% at the end of 2020.
    The bank released £700 million in credit impairment provisions, versus a £4.8 billion charge in 2020.
    Full-year profit before tax was £8.4 billion, up from £3.1 billion in 2020.

    Barclays CEO C.S. Venkatakrishnan said in a statement Wednesday that 2021 was the year in which the bank’s strategy set out in 2016 came to fruition, with double-digit return on tangible equity, a “well-capitalised balance sheet” and strong profit performance even against the backdrop of the pandemic.
    “I am proud that we have delivered this resilient performance while continuing to support our clients and customers through another year of COVID-19 related challenges,” Venkatakrishnan said.
    “Taken together, our 2021 performance has enabled us meaningfully to increase returns to our shareholders, with £2.5 billion of excess capital returned via a total dividend of 6.0 pence per share and £1.5 billion of announced share buybacks.”

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    ‘Air rage’ is complicating travel in North America and Europe – but not so much in Asia

    CNBC Travel

    The videos light up social media and dominate news headlines.
    From verbal confrontations to all-out brawls, scenes of airplane passengers behaving badly have become increasingly familiar in Covid-era travel.

    While “air rage” may seem to be another inevitability of living through a pandemic, some parts of the world are seeing fewer frustrations unleashed in the skies.  

    Where ‘air rage’ is high

    Before the pandemic, there were between 100 to 150 reports of unruly passengers in a typical year on U.S. airlines.
    In 2021, there were nearly 6,000, according to the Federal Aviation Administration, with some 72% related to mask disputes.
    “The issue is mostly a U.S. problem,” said Shem Malmquist, a visiting instructor at Florida Institute of Technology’s College of Aeronautics. “Part of this is absolutely related to the politicization of the pandemic in U.S. politics. That aside, U.S. passengers are considered to be more generally problematic by most cabin crew.”
    Europe is also grappling with its share of disruptive passengers. High-profile incidents have been reported on flights departing from Spain, Scotland, Amsterdam and Glasgow.

    Australia’s major airlines launched a joint campaign in 2021, following an increase in abusive behavior among flyers. Videos and airport signage have been put up to remind travelers to bring masks and respectful attitudes on board.

    The International Air Transport Association held a panel discussion about unruly passengers, immediately followed by another on “cabin crew well-being,” during a two-day conference in Lisbon, Portugal, in December 2021.
    Angus Mordant| Bloomberg | Getty Images

    Different cultural norms?

    In Asia, news of unruly flyers remains scarce.
    “I have not heard of any incidents — zip, none,” said Jeffrey C. Lowe, CEO of the Hong-Kong-based aviation services company Asian Sky Group.
    “Airline schedules are still greatly reduced,” he said of travel within Asia. Plus, there is “the pre-existing acceptance for masks in Asia before the pandemic … and, last but not least, a different perception here in Asia as to what infringes on our personal freedoms.”
    Mask-wearing is an accepted practice in many Asian countries to prevent spreading or getting an illness. In an CNBC Travel story about Japan’s Shibuya Crossing, a 360-degree image shows at least eight people wearing masks near Tokyo’s famous intersection — long before the pandemic began.

    Malmquist agrees that the issue is “certainly a large part cultural.” However, he said, “we cannot rule out that the flying is still so restricted in Asia that those who are flying are heavily supervised, with the ratio of cabin crew to passengers quite high.”
    Plus, there have been fewer leisure travelers in Asia, he said, noting flyers there have been “almost exclusively business” travelers.

    Airlines ‘don’t have major issues’

    Korean Airlines indicated mask acceptance is helping to quell in-flight meltdowns.
    An airline representative initially told CNBC: “We haven’t observed any outstanding increases or changes of in-flight unruly passengers since Covid-19 partially due to a social background where people wear a facial mask voluntarily.”
    Later, the source issued a second statement, stating that the airline has experienced mask-related issues, “but those cases haven’t significantly increased the total number of unruly incidents.” 
    Similarly, Doha-based Qatar Airways told CNBC: “We don’t have major issues … Most of our passengers comply to the rules, and there are a small number of them who might be difficult. … The crew tell them nicely to put on a mask and most obliged to it.”

    People in the U.S.A. were fighting about wearing masks on a plane, and people in India were fighting for masks to protect themselves.

    Trish Riswick
    social engagement specialist at Hootsuite

    Others airlines aren’t talking.
    Thai Airways, EVA Air, Philippines Airlines and Cathay Pacific didn’t respond to CNBC’s questions about unruly passengers on their flights. Without providing additional details, Singapore Airlines said “passengers are largely supportive” of its mask policy.
    A Japan Airlines spokesperson said, “Unfortunately, we do not share in-cabin matters with media.” Online media reports show several Japanese airlines have had in-flight dustups over masks.
    In 2020, the Japanese budget carrier Peach Aviation made an unplanned domestic stop to boot a passenger from the plane, according to the non-profit website Nippon.com. The man, labeled “Japan’s no-mask crusader,” was arrested several times for refusing to wear a mask when flying and while in public places, according to local reports.

    What social media data says

    While many airlines may be reluctant to talk, fellow travelers often aren’t. Many in-flight incidents are posted on social media by witnesses, where they can be viewed by millions and picked up by media outlets.
    Globally, Twitter users mentioned “air rage” and unruly passenger incidents more than 117,000 times during the pandemic, according to the social media management company Hootsuite.
    Yet only 1,860 — fewer than 2% — came from users in Asia, according to the data.  
    Additionally, many posts in Asia pertained to passenger incidents that occurred outside of the region, said Trish Riswick, a social engagement specialist at Hootsuite. 
    Regarding users in Asia, she said: “There appears to be a lot of conversation about American or European airlines or passengers being unruly or refusing to wear masks.”
    Riswick said her research picked up several conversations about rule-breaking incidents from flights departing from Japan and India.
    However, most conversations about problematic flyers during the pandemic came from the United States (56,000+ mentions), followed by Canada and the United Kingdom, according to Hootsuite. The data showed that the most mentions in Asia came from users in India, Japan and Indonesia.

    There have been economic protests in Asia during the pandemic — like this rally against South Korea’s labor policy in October 2021 — but far fewer anti-mask marches than in other parts of the world.
    Nurphoto | Getty Images

    In conducting the research, the word “fight” was problematic, said Riswick, because the way the term was used varied from continent to continent.
    “People in the U.S.A. were fighting about wearing masks on a plane, and people in India were fighting for masks to protect themselves,” she said.
    One limitation of Hootsuite’s data is language; this research picked up conversations in English only, she said.  
    Still, Asia-based Twitter discussions about problematic flyers fell by 55% during the pandemic, while globally these conversations more than tripled, according to the data.
    After concluding the research, Riswick said what she finds most surprising is how outrageous some of the incidents are — especially those that involve flight crews.
    “My heart goes out to those who are just trying to do their jobs,” she said. More