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    New York Mayor Adams says city is winning the war against omicron as cases decline

    New York City is winning the war against the highly contagious Covid-19 omicron variant as positive cases are trending down, Mayor Eric Adams said Tuesday morning.
    New York City’s seven-day average of daily new cases has dropped below 20,000.
    That makes it less than half of the peak from earlier January when cases averaged nearly 43,000.

    Mayor Eric Adams makes an announcement and holds media availability at Elmhurst hospital. Mayor announced three-point plan to support hospitals as Omicron variant cases of COVID-19 continue to surge.
    Lev Radin | LightRocket | Getty Images

    New York City is winning the war against the highly contagious Covid-19 omicron variant as cases trend down, Mayor Eric Adams said Tuesday morning.
    New York City’s seven-day average of new cases has dropped below 20,000, less than half of the peak from earlier January when cases averaged nearly 43,000, Adams told reporters at a news conference. The city also reported a decrease in Covid hospitalizations, falling from about 6,500 patients on Jan. 11 to about 5,800 as of Sunday.

    “Let’s be clear on this,” Adams said, “we are winning and we are going to win because we are resilient.”
    Areas that originally saw a surge in omicron are starting to report a slowing number of cases. South Africa and the United Kingdom, for example, saw an initial steep rise in cases that has slowed in recent weeks. Now, some health experts are predicting the omicron wave will trend back down in the U.S. about as quickly as it shot up, with some expecting relatively low cases by February or March.

    CNBC Health & Science

    The U.S. on Monday logged an average of about 685,000 new Covid cases a day over the last week, down by about 10% over the previous week, according to data compiled by Johns Hopkins University.
    Still, city officials urged the public to remain vigilant against the virus.
    “Let me be clear, these numbers are still very high meaning community transmission remains widespread, and we will need to follow these trends closely over the coming days and weeks,” Dr. Dave Chokshi, New York City health commissioner, said at the news conference.

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    WHO says there's no evidence healthy children and adolescents need Covid boosters

    WHO Chief Scientist Dr. Soumya Swaminathan said Tuesday “there’s no evidence right now” that suggests healthy children and adolescents need booster shots to supplement their Covid-19 vaccinations.
    Swaminathan said the agency’s advisory group meet later this week to consider how countries should think about giving booster shots.

    World Health Organization (WHO) Chief Scientist Soumya Swaminathan attends a press conference organised by the Geneva Association of United Nations Correspondents (ACANU) amid the COVID-19 outbreak, caused by the novel coronavirus, at the WHO headquarters in Geneva Switzerland July 3, 2020.
    Fabrice Coffrini | Reuters

    There’s “no evidence right now” that suggests healthy children and adolescents need booster shots to supplement their Covid-19 vaccinations, World Health Organization Chief Scientist Dr. Soumya Swaminathan said Tuesday.
    Swaminathan said the agency’s advisory group, called Sage, or the Strategic Advisory Group of Experts on Immunization, will meet later this week to consider how countries should think about giving booster shots.

    “The aim is to protect the most vulnerable, to protect those at highest risk of severe disease and dying, those are our elderly population, immunocompromised with underlying conditions and also health care workers,” Swaminathan said WHO media briefing.
    Dr. Michael Ryan, executive direction of the WHO’s health emergencies program, said the agency still hasn’t figured out how often or how many doses people will ultimately need.
    “I think people do have a certain fear out there that this booster thing is going to be like every two or three months and everyone’s going to have to go and get a booster. And I don’t think we have the answer to that yet,” Ryan said.
    He said scientists may eventually redefine how many doses are required in the primary series of Covid shots. While most healthy people may need just two shots, he said the elderly or immunocompromised may need three or four.
    Swaminathan’s and Ryan’s comments come roughly two weeks after the U.S. Centers for Disease Control and Prevention approved booster shots for adolescents aged 12 to 17 amid the current surge in coronavirus cases due to the highly contagious omicron variant.
    The surge has also led to a sharp rise in pediatric cases. For the week ending Jan. 6, more than 580,000 child coronavirus cases were reported, marking a 78% increase from the week ending Dec. 30, according to the last updated data from American Academy of Pediatrics.

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    U.S. companies are expecting to pay an average 3.4% raise to workers in 2022

    U.S. companies are expecting to pay an average 3.4% raise to workers in 2022, according to a Willis Towers Watson survey.
    That growth would be higher than in 2020 and 2021 — and is expected across all types of positions, regardless of seniority.
    Difficulty finding and retaining workers is the top reason cited for higher pay. Inflation and higher profits also are factors.

    U.S. employers expect to pay an average 3.4% raise to their workers in 2022, according to a Willis Towers Watson survey.
    That projected wage growth is faster than actual raises paid in the prior two years, amid a competition for workers and high inflation, according to the poll of 1,004 companies, conducted between October and November.

    “Inflation is an element of it, but that’s not the sole factor,” said Lesli Jennings, senior director of work and rewards at Willis Towers Watson. “I think the bigger piece is about this race for talent.”
    More from Personal Finance:A robot may be your next financial advisorTop spots to shop for a winter vacation home4 big tax mistakes to avoid after stock option moves
    What’s more, companies expect to pay similar average raises across positions, from entry level to more senior workers, Jennings said.

    The ‘Great Resignation’

    Job openings in the U.S. are near an all-time high as a record 4.5 million workers quit their jobs in November, a phenomenon that’s been dubbed the “Great Resignation.”
    Ongoing public health fears surrounding Covid-19, as well as other factors such as child care duties, burnout and higher relative levels of savings amassed during the pandemic, have reduced the number of workers in the labor force, according to economists.

    Labor shortages have been most acute for low-paying, in-person jobs — such as bar, restaurant and hotel positions in the leisure and hospitality sector.
    Employers have increased wages to attract and retain employees amid the demand for labor. About 74% of companies cited the tight labor market as a reason to increase their budgeting for raises, according to the Willis Towers Watson survey.

    Fewer companies (31%) cited inflation as a factor in higher estimated pay. The cost of living is growing at its fastest annual pace in about four decades, as the pandemic has snarled supply lines and led consumers to shift consumption toward more physical goods. Employers may feel the need to increase pay to help employees keep up with rising costs.
    Corporate profits also jumped significantly in 2021, giving companies more bandwidth to expand pay for their employees. Just over a third of companies cited stronger anticipated financial results as a reason to boost pay.
    Overall, 32% of companies increased their salary projections over the course of just a few months. In June 2021, for example, respondents had budgeted for an average 3% increase in worker pay this year, according to Willis Towers Watson.

    Respondents paid a 2.8% raise to employees in 2021, on average.
    Higher pay isn’t the only way companies are competing for workers; some are also focusing on career advancement, mental well-being programs and other workplace elements to keep employees happy and engaged, according to Jennings.

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    Mastercard strikes NFT payments deal with Coinbase amid a wave of recent crypto partnerships

    Coinbase customers will be able to use Mastercard credit and debit cards to make purchases the crypto company’s upcoming NFT marketplace.
    The deal is the latest in a flurry of crypto partnerships for Mastercard and Visa.
    Bitcoin and other cryptocurrencies were created to get around banks and intermediaries. But payment giants have embraced the asset class as it becomes mainstream.

    A 3D printed Mastercard logo is seen in front of displayed stock graph in this illustration taken September 20, 2021.
    Dado Ruvic | Reuters

    Mastercard said Tuesday it inked a deal with Coinbase, the latest in a recent flurry of partnerships between payment and cryptocurrency giants.
    As part of the agreement, Coinbase customers will be able to use Mastercard credit and debit cards to make purchases on the crypto exchange’s upcoming NFT marketplace. Coinbase unveiled late last year plans to launch the platform for minting and buying nonfungible tokens, which have exploded in popularity over the past 12 months.

    By teaming up with Mastercard, Coinbase executives said they’re looking to reduce friction in the NFT buying process. Right now, that often requires customers opening up a crypto wallet, buying digital currencies, then spending those on NFTs in an online marketplace. Mastercard, meanwhile, said it’s looking to help expand consumer choice on how to pay for NFTs.
    “Getting more people involved safely and securely is perhaps the best way to help the NFT market thrive. As it does, Mastercard sees even greater potential for NFTs’ underlying tech to go beyond art and collectibles into many more areas,” Mastercard’s Raj Dhamodharan said.
    Mastercard, one of the world’s largest credit card and payment companies, has been on a crypto partnership spree lately. Mastercard announced in October that it’s teaming up with Bakkt to let banks and merchants in its network offer crypto-related services. It has also partnered up with Gemini, BitPay and Mintable, among others.
    Rival Visa has been equally active the crypto space. The company has more than 60 partnerships with companies in the space, including the one with Coinbase.
    American Express has also said it’s exploring using its cards and network with stablecoins. But CEO Stephen Squeri recently told Yahoo Finance that consumers should not expect to see an Amex-crypto-linked card “anytime soon.”

    Cryptocurrencies like bitcoin were first designed to get around banks and intermediaries. But banks and payment companies have embraced those technologies as cryptocurrencies become mainstream.
    Mizuho Securities analyst Dan Dolev said in an email that Tuesday’s announcement as another example of Mastercard’s “out-of-the-box thinking” in its approach to crypto. Over the long-term, though, Dolev said blockchain technologies and decentralized finance “can be a threat to the overall network ecosystem as they are challenging the trusted third party concept.”
    Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

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    Oil prices are at a 7-year high, but Exxon CEO Darren Woods is confident they will trend lower.

    Oil prices rose to a seven-year high Tuesday amid ongoing supply concerns and escalating tensions in the Middle East.
    Exxon Mobil CEO Darren Woods, however, is confident prices will trend lower.
    “[W]e anticipated higher prices. We also anticipate a lot of volatility. And frankly we’re anticipating lower prices as we go forward,” he said.

    Darren Woods, CEO, ExxonMobil
    Michael Newberg | CNBC

    Oil prices rose to a seven-year high Tuesday amid ongoing supply concerns and escalating tensions in the Middle East, but Exxon Mobil CEO Darren Woods is confident they will trend lower.
    In the immediate future, however, the oil executive said the market should expect volatile prices as the industry’s recovery from Covid-19 continues.

    “As you get supply and demand tighter, events that happen around the world … lead to a lot more volatility because there’s less of a buffer, and I think we’re going to see that for some time now,” he said Tuesday on CNBC’s “Squawk Box.” “Until industry begins to ramp up productions and increase the level of supply to meet this growing demand, or in turn demand starts to come down a little bit … you’re going to see a lot more volatility until we get better stability.”
    Woods added that it’s hard to predict when the market might balance out given the many players involved.
    West Texas Intermediate crude futures, the U.S. oil benchmark, traded as high as $85.74 per barrel on Tuesday, a price last seen in October 2014. The price marks a blistering recovery after the contract briefly traded in negative territory in April 2020, as the pandemic sapped demand for petroleum products.
    International benchmark Brent crude broke above $88 per barrel, also hitting the highest level since 2014. As producers continue to keep a lid on production while demand recovers, some observers have called for oil to top $100 per barrel this year.

    Loading chart…

    But Woods said he doesn’t get “overly enamored” with today’s high prices. When looking at new investments the company focuses on ensuring operations can be competitive across a wide range of price environments, he said.

    “[W]e anticipated higher prices. We also anticipate a lot of volatility. And frankly we’re anticipating lower prices as we go forward,” he said.
    Exxon said Tuesday it’s targeting net-zero greenhouse gas emissions for its operated assets by 2050. The announcement follows similar targets from competitors, and comes as Exxon faces board pressure to act on climate change. In 2021, upstart activist firm Engine No. 1 successfully placed three of its candidates on the oil giant’s board.
    Exxon’s target does not include so-called Scope 3 emissions — the environmental footprint from the products a company generates — or the company’s supply chain. Scope 3 emissions are typically the highest, and the hardest, to quantify.
    Tuesday’s climate-focused pledge builds on prior announcements from Exxon on how it plans to cut its emissions. The company has also pledged billions of dollars to develop emissions-reducing technologies like carbon capture.
    Woods said the target is “more than just a pledge” and that the company has a “line of sight” for how it plans to slash its emissions.

    “We have road maps that we’re developing in each of our facilities around the world to deliver those reductions,” Woods said. “There are plans behind this ambition that takes us clearly through 2030 and then beyond that. I think that should give folks some confidence. This is more than just out there positioning on something; this is actually work that we’re doing.”
    The company said in a statement that it identified more than 150 potential steps and modifications that can cut emissions across its operations, including electrifying equipment and reducing emissions leaks.
    Woods said that further down the line, technological advancements and market incentives will help drive down the cost of more expensive decarbonization efforts.
    Exxon is the latest in a growing list of companies pledging to slash emissions. But critics note that with no enforcement mechanism some of these promises could potentially be without merit.
    Shares of Exxon advanced more than 1% on Tuesday to their highest level in more than two years.

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    Investment in space companies hit record $14.5 billion in 2021, report says

    A rendering on a Dream Chaser spaceplane in orbit.
    Sierra Space

    Private investment in space companies last year set a record, according to a report Tuesday by New York-based firm Space Capital.
    Space infrastructure companies received $14.5 billion of private investment in 2021, a new annual record that was up more than 50% from 2020. That includes a record-setting fourth quarter, which brought in $4.3 billion thanks to “mega-rounds” of $250 million or more by Sierra Space, Elon Musk’s SpaceX, and Planet Labs.

    The quarterly Space Capital report divides investment in the industry into three technology categories: infrastructure, distribution and application. Infrastructure includes what would be commonly considered as space companies, such as firms that build rockets and satellites.
    In total, Space Capital tracks 1,694 companies which have raised $252.9 billion in cumulative global equity investments since 2012 across the three space categories.
    “As we look ahead, we see tremendous opportunities to scale mass adoption of the existing infrastructure as we look for radically new approaches to build and operate space-based assets,” Space Capital managing partner Chad Anderson wrote in the report.
    The report also highlighted record investment by venture capital firms across the three categories. Space-related companies received $17.1 billion in venture capital last year, which the report said made up 3% of total global venture capital investment in 20221.

    A warning on the changing market environment

    Spire Global at the New York Stock Exchange, August 17, 2021.
    Source: NYSE

    Space Capital also highlighted the changing market environment for the flurry of newly-public space companies, as rising interest rates are hitting technology and growth stocks hard — especially companies where profitability is years away, as is the case with several space ventures.

    “The public markets have started the year with a selloff and, if it continues, venture firms may not find it as easy to raise record-setting funds as they did last year,” Anderson wrote.
    Anderson gave further warning that “not all SPACs are created equal,” saying that “much of the momentum we saw in 2021 came at the cost of deep diligence, which increases the risk for investors.”
    “It’s important for investors to realize that investment in the space economy requires specialist expertise. We believe this will become more apparent in 2022 as some of these overvalued companies come back down to Earth and the quality companies rise above,” Anderson said.

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    We have a chance to end Covid emergency in 2022, WHO official says

    Last year, governments of wealthy nations faced criticism from the WHO for their decisions to roll out third doses of Covid vaccines to their entire adult populations while vulnerable people in poor countries were still waiting for their first shot.
    In official guidance on booster vaccines, the WHO expressed concern that mass booster programs in wealthier countries would exacerbate vaccine inequity.
    Globally, there is not yet a consensus on whether fourth doses will be necessary.
    The U.K.’s vaccination authority has said there is “no immediate need” to introduce a second booster, although the issue remains under review.

    Executive Director of the WHO Emergencies Program Mike Ryan speaks at a news conference in Geneva, Switzerland on Feb. 6, 2020.
    Denis Balibouse | Reuters

    Covid-19 will never be eradicated, but society has a chance to end the public health emergency in 2022, a senior WHO official has said.
    Speaking at the World Economic Forum’s virtual Davos Agenda event on Tuesday, Michael Ryan, executive director of the WHO Health Emergencies Programme, said.

    “We won’t end the virus this year, we won’t ever end the virus — what we can end is the public health emergency,” he told a panel via videoconference.
    “It’s the death, it’s the hospitalizations, it’s the disruptions that cause the tragedy, not the virus. The virus is a vehicle.”
    However, he expressed some optimism that it was possible for this year to mark a turning point in the pandemic.
    “Yes, we have a chance to end the public health emergency this year,” he said, noting that this could only be done by addressing longstanding inequities in various areas of society, such as fair access to vaccines and health care.
    “It won’t end if we don’t [address these issues], this tragedy will continue,” he added.

    But Ryan warned that Covid would still pose a threat to society even once it shifted from being a pandemic virus to an endemic one.
    “Endemic malaria, endemic HIV kill hundreds of thousands of people every year — endemic does not mean ‘good,’ it just means ‘here forever,'” he said. “What we need to do is get to low levels of disease incidence with maximum vaccination of our populations where no one has to die. That’s the end of the emergency in my view, that’s the end of the pandemic.”

    Vaccine inequity

    Throughout the panel discussion, vaccine inequity was painted as a barrier to progress against Covid.
    Last year, governments of wealthy nations faced criticism from the WHO for their decisions to roll out third doses of Covid vaccines to their entire adult populations while vulnerable people in poor countries were still waiting for their first shot.
    In December, WHO Director-General Tedros Adhanom Ghebreyesus warned that blanket booster programs risked prolonging the pandemic and increasing inequality, telling a press conference that “no country can boost its way out of the pandemic.”
    “Blanket booster programs are likely to prolong the pandemic, rather than ending it, by diverting supply to countries that already have high levels of vaccination coverage, giving the virus more opportunity to spread and mutate,” he told reporters. “And boosters cannot be seen as a ticket to go ahead with planned celebrations, without the need for other precautions.”
    In official guidance on booster vaccines, the WHO expressed concern that mass booster programs in wealthier countries would exacerbate vaccine inequity by leaving behind the countries that struggled to afford or access doses.
    Many high and upper-middle income countries have rolled out booster programs, while poorer nations are yet to make progress on immunizing their people with the initial two-dose course. In the U.K., for example, 63% of the population (above 12 years old) has received a booster shot and 83% of people are fully vaccinated. In Kenya, 0.1% of the population has received a third shot, and just 8.5% of people are fully vaccinated against Covid.
    In high-income Israel, authorities have gone a step further, offering a fourth dose to health care workers and society’s most vulnerable individuals. However, Israeli doctors have cast doubt on fourth doses providing sufficient immunity against the highly transmissible omicron variant.

    However, Ryan noted on Tuesday that ending vaccine inequity did not mean stopping people in high-income countries from receiving more doses.
    “We need to focus on those most likely to [cope] the worst with getting infected or reinfected,” he said.
    “There are those in high income countries who will require a third dose. It doesn’t matter what country you’re in, everyone should be able to get that primary course. As knowledge develops, we may end up in a future where the primary course for a vulnerable person will be three or four doses to get long-lasting, robust immunity.”
    Ryan added that prioritizing vulnerable people in Africa for Covid vaccinations while also prioritizing vulnerable people in high-income nations were “not opposing problems.”
    “A vulnerable person living in an industrialized country has an equity issue too, because their chance of dying is high,” he told the panel.

    Globally, there is not yet a consensus on whether fourth doses will be necessary. The U.K.’s vaccination authority has said there is “no immediate need” to introduce a second booster, although the issue remains under review. The U.S. Centers for Disease Control and Prevention recommends that people who are severely immunocompromised should be given an additional dose in their primary series of vaccines, as well as a booster shot later on.  
    In December, the CEO of Pfizer told CNBC that fourth doses may be needed sooner than expected because of the highly transmissible omicron variant.
    —Don’t miss Geoff Cutmore’s discussion with ECB President Christine Lagarde, Brazilian Economy Minister Paulo Guedes, IMF MD Kristalina Georgieva and India’s Finance Minister Sri Mulyani Indrawati at 7.30 a.m. ET Friday. They’ll be discussing the “Global Economic Outlook” at the Davos Agenda. You can watch live here. More

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    Goldman Sachs shares decline after fourth-quarter earnings miss estimates

    Here are the numbers: Earnings: $10.81 a share vs. $11.76 estimate, according to Refinitiv
    Revenue: $12.64 billion vs. $12.08 billion estimate.

    David M. Solomon, Chairman and CEO of Goldman Sachs, speaks during the Milken Institute’s 22nd annual Global Conference in Beverly Hills, April 29, 2019
    Mike Blake | Reuters

    Goldman Sachs on Tuesday posted fourth-quarter profit below analysts’ expectations as the bank’s operating expenses surged 23% on higher pay for Wall Street workers and increased litigation reserves.    
    Here are the numbers:

    Earnings: $10.81 a share vs. $11.76 estimate, according to Refinitiv
    Revenue: $12.64 billion vs. $12.08 billion estimate.

    The bank said quarterly profit fell 13% from a year earlier to $3.94 billion, or $10.81 a share, below the $11.76 estimate of analysts surveyed by Refinitiv. While analysts had anticipated that a slowdown in trading would impact the quarter, equities desks posted revenue that was $300 million below the $2.43 billion estimate.
    Still, companywide revenue in the quarter jumped 8% from a year earlier to $12.64 billion, more than $500 million above the consensus estimate, on gains in investment banking and wealth management.
    Just as at rivals JPMorgan Chase and Citigroup, Goldman Sachs saw expenses rise in the quarter as the firm had to pay employees more after another year of outperformance.
    Goldman said operating expenses in the quarter jumped 23% to $7.27 billion, exceeding the $6.77 billion estimate of analysts surveyed by FactSet. The bank cited “significantly higher” pay and benefits for its employees, technology expenses and $182 million set aside for litigation and regulatory costs, compared with $24 million in the year-earlier period.
    Shares of the bank dropped 4.1% in premarket trading.

    Goldman Sachs has thrived during the past two years — a booming period in capital markets that suited the bank’s Wall Street-centric business model.
    Now, how will CEO David Solomon’s bank navigate the next phase?
    The question is timely because the red-hot trading markets of the past year are expected to cool down in 2022. Fixed income trading in particular is expected to decline in the fourth quarter.
    That’s expected to be offset by robust investment banking revenue amid a high rate of mergers and SPAC deals. Analysts will be keen to ask Solomon how the transaction pipeline looks in early 2022.
    While trading revenue is expected to normalize from a record period, retail banks have gained favor with investors lately. That’s because big bank peers like Wells Fargo and Bank of America are expected to prosper as interest rates rise.
    Goldman’s nascent retail banking business is still a relatively small contributor to its bottom line, but analysts will want to know how management expects to capture emerging opportunities in fintech.
    Besides its Marcus consumer banking division, with loans, savings and a personal finance app, that includes a new corporate cash management offering and Goldman’s foray into cloud computing for hedge fund clients.
    Shares of Goldman have fallen less than 1% this month before Tuesday after jumping 45% last year.
    Last week, JPMorgan Chase, Citigroup and Wells Fargo all posted fourth-quarter results that topped estimates, but shares of JPMorgan and Citigroup sold off on higher-than-expected expenses. Bank of America and Morgan Stanley close out big bank earnings on Wednesday.  
    This story is developing. Please check back for updates.

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