Raphael Stevens

Sen. Ben Ray Lujan of New Mexico is expected to return to Congress next month after suffering a stroke last week and undergoing brain surgery, a senior aide said.
Lujan, a 49-year-old Democrat, is currently hospitalized in Albuquerque following decompressive surgery to ease swelling after suffering a stroke in his cerebellum, his office said.
Lujan is expecting to return to the Senate in four to six weeks, barring any additional medical complications, two of the senator’s senior aides told NBC.
With Lujan absent, Democrats lose their razor-thin majority in the Senate. President Joe Biden and his allies in Congress are gearing up to nominate and confirm a new Supreme Court, justice following the announcement of Stephen Breyer’s retirement.

Rep. Ben Ray Lujan, D-N.M., conducts a news conference in the Capitol Visitor Center to announce a new infrastructure investment framework on Wednesday, January 29, 2020.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

New Mexico Sen. Ben Ray Lujan is expected to return to Congress next month after suffering a stroke last week and undergoing brain surgery, a senior aide to the senator told CNBC on Wednesday.
Lujan, a 49-year-old Democrat who was sworn into the Senate last year, is currently hospitalized in Albuquerque following decompressive surgery to ease swelling after suffering a stroke in his cerebellum, his office said Tuesday.

The senator first began feeling dizzy and fatigued early Thursday morning, five days before his current condition was revealed. He is “resting comfortably, and expected to make a full recovery,” his chief of staff, Carlos Sanchez, said in a press release Tuesday afternoon.
Lujan is expecting to return to the Senate in four to six weeks, barring any additional medical complications, the senior aide said.

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With Lujan absent, Democrats lose their razor-thin majority in the Senate. President Joe Biden and his allies in Congress are gearing up to nominate and confirm a new Supreme Court justice following the announcement of Stephen Breyer’s retirement. But if no Republicans back the president’s pick, Democrats will need all 50 senators, plus Vice President Kamala Harris’ tie-breaking vote, to confirm the nominee.
Biden has vowed to pick a Black woman to replace Breyer. He said he expects to announce his nominee by the end of this month. In modern decades, it has taken 41 days on average for the Senate to begin hearings on a Supreme Court nominee after the president submits his selection, according to the Congressional Research Service.
Senate Majority Leader Chuck Schumer, D-N.Y., plans to head to the White House on Wednesday to discuss the Supreme Court with the president, a source familiar told CNBC.

It was unclear if Biden and Schumer also planned to discuss Lujan’s condition. White House press secretary Jen Psaki told reporters earlier Wednesday afternoon that the president has not yet spoken with Lujan “at this point.”
“We are all thinking about him and his family,” Psaki said.

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General Motors’ fourth-quarter earnings beat Wall Street’s expectations and its 2022 guidance pleased analysts, but the company made other noteworthy announcements Tuesday as well.
Barra, among other things, announced GM is pulling ahead “significant investment” from the second half of the decade into a $35 billion investment plan in electric and autonomous vehicles by 2035.
The accelerations comes months after Barra said GM would become the EV sales leader in the U.S. by middecade.

DETROIT – General Motors’ fourth-quarter earnings beat Wall Street’s expectations and its 2022 guidance pleased analysts, after CEO Mary Barra assured analysts the company would earn near-record profits this year even while it spends billions on electric and autonomous vehicles.
“We can and we will keep up our aggressive pace backed by strong results,” Barra said Tuesday during an analyst call. “We expect to follow our record EBIT-adjusted earnings in 2021 with another year of record or near-record results in 2022, while investing significantly more year-over-year to accelerate our growth.”

Barra, among other things, announced GM is pulling ahead “significant investment” from the second half of the decade into a $35 billion investment plan in electric and autonomous vehicles through 2035. She said the company is targeting to sell 400,000 EVs in North American through 2023.

GM will expand its Chevrolet EV lineup in fall 2023 to include the Equinox EV, starting at about $30,000.

The plans were well-received by Wall Street analysts but did little for GM’s stock. Shares fell by about 3% during trading midday Wednesday. Evercore analyst Chris McNally described GM as coming “out swinging,” while RBC Capital Markets raised its price target for the automaker from $74 to $85 a share.
“While 2022 guidance mostly in line with expectations (even if different composition), on balance we still walk away encouraged. GM continues to show strong profitability while investing for the future,” RBC analyst Joseph Spak wrote in an investor note Tuesday night.
Here’s additional details on GM’s new EV plans as well as other key takeaways from the company’s fourth-quarter results.

Guidance

GM said it expects to generate an operating profit this year of between $13 billion and $15 billion, or $6.25 to $7.25 earnings per share. That falls in line with its earnings last year as well as most Wall Street expectations.

What surprised many analysts was GM’s projected production increase of 25% to 30% this year as it continues to manage through a global shortage of semiconductor chips.

Net income this year is expected to fall between $9.4 billion and $10.8 billion, also in line with its $10 billion profit in 2021, GM said.
GM CFO Paul Jacobson said some of its profits this year could be hindered by an increase in sales of lower-margin vehicles as chip supplies improve. The company over the last year has prioritized building highly profitable pickups and SUVs over smaller crossovers and cars.

No dividend

Barra said GM is not reinstating its dividend at this time to preserve capital to spend on its electric and autonomous vehicle plans. GM plans to spend between about $9 billion and $10 billion a year in the medium term, including in 2022.
“As we move forward, we will consider all opportunities to return excess capital to shareholders, but we will not reinstate a dividend at this time,” Barra said. “Our clear priority is to accelerate our EV plan and drive growth.”
GM cut its dividend during the early days of the coronavirus pandemic in April 2020.

EV reservations

Barra on Tuesday gave the most detailed look at GM’s electric vehicle reservations to date. She said the company has 110,000 reservations for its electric Silverado; 59,000 for the GMC Hummer EV pickup and SUV; and 25,000 cargo vans for its new BrightDrop electric commercial vehicle business.
The initial “strong demand” is among the reasons for GM accelerating its EV plans, Barra said. She said the company will announce a third plant to produce battery-electric trucks in the foreseeable future as well as the location of a fourth production facility for battery cells with LG Energy Solution during the first half of this year.
GM’s first battery cell production facility through a joint venture with LG Energy Solution is expected to come online later this year in Ohio, followed by two other plants in Tennessee and Michigan in the sequential years.

1 million EV sales

GM had previously said it expects its electric vehicle sales to top 1 million globally by 2025. Given the new targets, including increasing production capacity to more than 1 million vehicles in both North America and China by middecade, that sales target is likely outdated.
When asked about the sales target Wednesday, a GM spokesperson referred to Barra’s comments about accelerating its EV plans. She did not mention the 1 million sales goal, which was first announced several years ago.

2024 Chevrolet Silverado EV RST

“We’re just going to keep going full-out because we see the opportunity for substantial EV volume growth in this period of time,” Barra said.
GM and its joint venture partner Wuling Motors sold nearly 400,000 four-seat subcompact full electric vehicles last year alone in China.

Cruise

The increasing importance of GM’s majority-owned autonomous vehicle subsidiary Cruise was apparent on the call Tuesday.
Barra made it a point to specifically discussed Cruise’s ongoing operations, including a Tuesday announcement of opening its self-driving vehicle fleet to members of the public.

Cruise co-founder and interim CEO Kyle Vogt also was on the Tuesday earnings call, signaling more alignment between the companies following the ousting last month of Dan Ammann, a former GM executive who was tasked with leading Cruise.
Cruise is awaiting its last permit from regulators to commercialize its robotaxi fleet in San Francisco.
GM expects the operations to potentially contribute up to $50 billion in annualized revenue by the end of this decade.
– CNBC”s Michael Bloom contributed to this report.

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The Washington Football team revealed its new name on Wednesday: The Washington Commanders.
It took more than a year for the team to settle on a new name after dropping its former moniker.

The Washington Football Team officially changed its name to the Washington Commanders.
The change was revealed by the team’s president, Jason Wright, who appeared on NBC’s “TODAY” program on Wednesday morning. The announcement ends a search that took more than one year after the club ditched its former name – the “Redskins” – in July 2020 after corporate sponsors including FedEx threatened to pull business. The name has long been considered a racist slur against Native Americans.

Team co-owners Dan and Tanya Snyder pose for a photo with the new team uniforms during the announcement of the Washington Football Team’s name change to the Washington Commanders at FedExField on February 02, 2022 in Landover, Maryland.
Rob Carr | Getty Images

“It’s a name that has the weight and meaning befitting a 90-year-old franchise,” Wright said of the Commanders. “It’s something that broadly resonated with our fans and its something that we believe embodies the values of service and leadership that really define the [District of Columbia, Maryland and Virginia area].
“It’s also something importantly that we could own, and grow for the next 90 years,” Wright added.
Washington joins the Cleveland Guardians, which had previously removed logos mimicking Native Americans. The Major League Baseball franchise changed its name last July – dropping the “Indians” after critics argued it was racist. The Guardians name goes into effect for the 2022 MLB season.
Wright has said a new team identity would start the process of increasing the value of the club, which is still repairing its image after workplace misconduct allegations.

A detailed view of a Washington Commanders logo during the announcement of the Washington Football Team’s name change to the Washington Commanders at FedExField on February 02, 2022 in Landover, Maryland.
Rob Carr | Getty Images

But despite a roller-coaster year in 2021, which saw team owner Dan Snyder step away, and the team missing the playoffs for the 17th time in his 23 years of ownership, Washington remains the fifth most valuable National Football League franchise at $4.2 billion, according to Forbes.  

Wright said the team considered the name “Wolves” which was a fan favorite, but “trademarks held by other teams would limit our ability to make the name our own,” he wrote in a blog post on Jan. 4. “And without Wolves, variations like Red Wolves wouldn’t have been viable either for these and other reasons,” he said.

Shifting the focus to a new stadium 

With its new name in place, expect the franchise to press forward with a new stadium to replace the dilapidated FedEx Field, which is located in Prince George’s County, Maryland. The complex made the headlines after deteriorating during the 2021 season. Issues included a broken sewer pipe and a railing that collapsed after a loss to the Philadelphia Eagles on Jan. 2

An exterior view of FedExField before a game between the Dallas Cowboys and Washington Redskins at FedExField on October 21, 2018 in Landover, Maryland.
Patrick McDermott | Getty Images

That process will be led by Wright, the NFL’s first Black team president, and Snyder. 
“The clock is ticking on that,” Wright told CNBC in August 2020 regarding the new complex. “That is a major endeavor and an economic driver not just for the club, but for the entire region.”
The club’s lease at FedEx Field expires in 2027. It was previously interested in a new 60,000-seat stadium at its old RFK site in Washington, D.C, where the team played from 1961 to 1996.  
The thing is, the U.S. Department of the Interior owns the land RFK occupies. Hence, the team needs to secure another lease to operate on the property. In addition, the club would need to satisfy local D.C. officials. Virginia politicians, including new Gov. Glenn Youngkin, are pushing to lure the team with a new stadium, too.
That could be an easier route for the franchise than the RFK site, as the team isn’t the most popular sports club on Capitol Hill.

Team co-owners Dan and Tanya Snyder pose for a photo with current team members and alumni during the announcement of the Washington Football Team’s name change to the Washington Commanders at FedExField on February 02, 2022 in Landover, Maryland.
Rob Carr | Getty Images

In 2021, Snyder settled a dispute with co-owners, including FedEx Chairman Fred Smith, when he reportedly paid $875 million to buy minority shares of the team. Last June, the team named his wife, Tanya Snyder, as co-CEO. The following month, the NFL fined the team $10 million following an investigation surrounding sexual misconduct allegations.
Dan Snyder then gave up control of the day-to-day operations to focus on a new stadium.

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SeaWorld has sent a buyout proposal to Cedar Fair that is reportedly worth around $3.4 billion.
Combining the two companies’ assets, which would be more than 20 theme parks, means SeaWorld would have the potential to generate $3.4 billion in revenue in 2023.
Expectations are that attendance rates will continue to rise and even surpass prepandemic levels by next year, meaning the bid could be too low to entice Cedar Fair to agree.

Guests ride the Bayside Skyride at SeaWorld on July 20, 2021 in San Diego, California.
Daniel Knighton | Getty Images Entertainment | Getty Images

Theme park experts aren’t surprised that SeaWorld is looking to acquire Cedar Fair, but the price might not be right, yet.
The company’s bold proposal, one that is reportedly worth $3.4 billion, would significantly strengthen SeaWorld’s foothold in an industry that is dominated by only a handful of players.

“The more we think about this potential deal, the more it makes total sense to us,” Stifel analyst Steven Wieczynski wrote in a research note published Tuesday.
Combining SeaWorld and Cedar Fair’s assets, which would be more than 20 parks, means SeaWorld would have the potential to generate $3.4 billion in revenue in 2023, he said.
Cedar Fair is one of the largest regional theme park operators in the world, with a market cap of $2.82 billion. For comparison, SeaWorld has a market cap of $4.6 billion.
“In our opinion, [SeaWorld] has lacked a more robust geographical footprint and lack of season pass penetration,” Wieczynski wrote. “Acquiring [Cedar Fair] would give them a bigger presence across North America and would allow them to more effectively cross market some of their bigger assets.”
SeaWorld, which also owns Busch Gardens and Sesame Place, has long battled perceptions of its animal-based amusement business. Adding Cedar Fair’s parks, which include Knott’s Berry Farm and California Great America, would diversify its portfolio and diminish its reliance on animal attractions, Wieczynski said.

SeaWorld would also benefit from Cedar Fair’s undeveloped land portfolio, which includes around 1,400 acres around its theme parks. This could be used to develop hotels, sports complexes or water parks, among other ventures.
“Given the extremely high barriers to entry (e.g., land availability, permitting and building restrictions, high construction costs, etc.) coupled with the strong regional loyalty created by seasonal/annual pass subscriptions, we have always viewed the regional theme park segment as ripe for further consolidation,” Eric Wold, analyst at B. Riley Securities, wrote in a research note published Wednesday. “Especially when attractive revenue and cost synergies are taken into consideration to boost returns.”
In recent years, there have been many attempts by theme park chains to buy each other out. In 2019, Cedar Fair rebuffed a $4 billion offer from Six Flags for around $70 per share. U.K.-based Merlin Entertainments, which owns Legoland and Madame Tussauds, quashed reports in 2017 that it was considering a bid for SeaWorld.
SeaWorld’s current bid reportedly offers Cedar Fair $60 per share, or an enterprise value of around $5.8 billion. Expectations are that attendance rates will continue to rise and even surpass prepandemic levels by next year, meaning the bid could be too low to entice Cedar Fair to agree.
“We believe acquiring [Cedar Fair] at $60 a share would represent a very favorable deal for [SeaWorld] shareholders given the potential accretion that could be realized,” Wieczynski said. “Based on our math, we believe SeaWorld could offer upwards of $70 to $80 [a share] before the deal would become less valuable.”
Shares of Cedar Fair were up nearly 4% on Wednesday, reaching a 52-week high of $58.49.

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Reduced international travel and low traffic to office buildings weighed on Starbucks’ same-store sales in China, according to CEO Kevin Johnson.
The coffee chain reported Tuesday that its same-store sales in China shrank by 14% in its fiscal first quarter.
Goldman Sachs downgraded the stock to neutral, citing the uncertain timeline for China’s recovery and higher costs weighing on the company’s profits.

Reduced international travel and low traffic to office buildings weighed on Starbucks’ same-store sales in China, CEO Kevin Johnson said Wednesday.
“Our stores that are in airports in the international travel terminals are closed, so clearly that’s weighing on comps,” Johnson said on CNBC’s “Squawk on the Street.” “Stores that are in office districts are much slower than they used to be.”

He added that cafes in residential and commercial zones are seeing same-store sales growth, a positive sign for demand in the country. However, it isn’t enough to offset declines elsewhere. The coffee chain reported Tuesday that its same-store sales in China shrank by 14% in its fiscal first quarter. The country is Starbucks’ second-largest market, trailing only the U.S.
Starbucks stock fell as much as 3% in morning trading. In addition to same-store sales declines in its second-largest market, the coffee giant on Tuesday evening reported mixed results overall for its top and bottom lines and cut its earnings outlook for fiscal 2022.
Goldman Sachs analyst Jared Garber downgraded the stock to neutral on Wednesday, citing China’s uncertain recovery and higher costs that are putting pressure on profits. He wrote in a note to clients that he has limited visibility into when China fully recovers.
To curb the spread of the pandemic, China has implemented a zero-Covid policy. When case counts tick too high in a city, the government reintroduces restrictions limiting residents’ mobility. The country reported 1,101 new cases over the last week and no deaths, according to data compiled by Johns Hopkins University.
“There’s constant waves of store closures and constraints created by that [policy],” Johnson said.

It’s unclear when China’s sales will fully bounce back. Unlike the United Kingdom and the U.S., China didn’t see cases of the Covid omicron variant until early January, and its surge is just now starting. On top of that, the Winter Olympics, which are hosted in Beijing this year, mean the country is being particularly cautious.
Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.

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