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    CVS Health raises 2021 earnings outlook, backs 2022 forecast

    CVS Health said Tuesday that it has raised its full-year earnings outlook and backed prior guidance for 2022.
    It expects full year 2021 earnings to be in a range of $5.87 to $5.92 per share, up from previous expectations of $5.50 to $5.61 per share.
    Customers have turned to the drugstore chain for Covid vaccines and tests during the pandemic.

    A customer walks towards the entrance of a CVS Health Corp. store in downtown Los Angeles, California, U.S., on Friday, Oct. 27, 2017.
    Christopher Lee | Bloomberg | Getty Images

    CVS Health said Tuesday that it has raised its full-year earnings outlook and backed prior guidance for 2022.
    The health-care company’s sales have benefited as customers come to its stores for Covid testing and vaccines during the pandemic. CVS is also adding more medical services to stores and weaving together other parts of its business. For example, it encourages people with its health insurance, Aetna, to visit urgent care clinics inside of its drugstores.

    CVS said it expects full year 2021 earnings to be in a range of $5.87 to $5.92 per share, up from previous expectations of $5.50 to $5.61 per share.
    After adjustments, it expects to earn $8.33 to $8.38 per share, up from a prior forecast of at least $8 per share. The new range is above the $8.03 per share that analysts surveyed by Refinitiv are projecting.
    CVS also reaffirmed its 2022 forecast, which calls for earnings per share to be between $7.04 and $7.24, and between $8.10 and $8.30 per share, after adjustments.
    Analysts have been looking for CVS to earn $8.27 per share, after adjustments, in 2022.
    CVS made the announcement in an 8K filing with the Securities and Exchange Commission ahead of a planned virtual presentation at the J.P. Morgan Healthcare Conference on Tuesday morning.
    Shares were up more than 1% in premarket trading on the news.

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    Stocks making the biggest moves in the premarket: Illumina, Rivian, Juniper Networks and more

    Take a look at some of the biggest movers in the premarket:
    Illumina (ILMN) – Illumina issued a 2022 revenue outlook that exceeded consensus analysts’ estimates, noting strong demand for its gene sequencing treatments as well as new partnerships with four health care companies. Illumina jumped 4.1% in the premarket.

    Rivian (RIVN) – Rivian fell 3.5% in premarket trading following news that its Chief Operating Officer Rod Copes had left the electric truck maker.
    Juniper Networks (JNPR) – Juniper shares rallied 5.3% in the premarket following a double upgrade by BofA Securities to “buy” from “underperform.” The firm said that most networking vendors are still attractively valued and said Juniper’s current guidance from management appears conservative.
    Albertsons (ACI) – The supermarket operator reported quarterly earnings of 79 cents per share, 19 cents a share above estimates. Revenue also topped Wall Street forecasts. Albertsons shares jumped 3.5% in premarket trading.
    Intel (INTC) – Intel named Micron Technology (MU) Chief Financial Officer David Zinsner as its new CFO, effective next Monday. At the same time, the chipmaker announced the departure of client computing group head Gregory Bryant at the end of January. Intel rose 1.7% in the premarket, while Micron was down 1%.
    Accolade (ACCD) – The workplace benefits technology company surged 10.9% in premarket action, following better-than-expected quarterly results. Accolade earned 31 cents per share, compared to analysts’ forecasts of a 74 cents per share loss. The company also issued an improved full-year revenue outlook.

    IBM (IBM) – IBM shares fell 2.3% in the premarket after UBS downgraded it to “sell” from “neutral,” citing risks to operating results as well as what it feels is an “elevated valuation.”
    CVS Health (CVS) – The drug store operator and pharmacy benefits manager raised its full-year earnings outlook, now expecting a profit of $8.33 to $8.38 per share. That compares to a prior outlook of “at least” $8.00 per share and a current consensus estimate of $8.03 per share. CVS rose 1.1% in the premarket.
    Big Lots (BIG) – Big Lots said it has seen a softening of traffic and sales trends this month, with the discount retailer citing winter weather and the spread of the Covid-19 omicron variant. Shares tumbled 7.4% in premarket trading.
    Abercrombie & Fitch (ANF) – Abercrombie rallied 5.9% in the premarket, despite a cut in the apparel retailer’s quarterly sales outlook. While issuing that outlook, Abercrombie also said it had seen a pickup in post-holiday sales.
    CORRECTION: This article has been updated to show that Albertsons reported quarterly earnings of 79 cents per share, 19 cents a share above estimates.

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    Russell Wilson and Ciara's fashion start-up, The House of LR&C, is opening its first pop-up store, CEO Christine Day says

    The House of LR&C, which launched online in 2020, plans to open a pop-up store near its Seattle headquarters in early February.
    The apparel business was co-founded by Grammy award-winning singer Ciara, NFL quarterback Russell Wilson and former Lululemon CEO Christine Day.
    Day, who serves as House of LR&C’s CEO, said the retailer plans to open three or four permanent U.S. stores this year.

    A rendering of House of LR&C’s pop-up shop slated to open later this month at the University Village shopping center in Seattle.
    Source: The House of LR&C

    A fashion start-up co-founded by singer and entertainer Ciara, NFL quarterback Russell Wilson and former Lululemon CEO Christine Day is preparing to open its first brick-and-mortar shop.
    The House of LR&C, which launched online in 2020, will open a pop-up near its Seattle headquarters in early February, Day said in an interview, with a selection from its three brands: Wilson’s Good Man Brand, LITA by Ciara and Human Nation, a gender-inclusive clothing label.

    The brands are currently sold online and through wholesale partners Nordstrom, Kohl’s and online fashion site Revolve. But House of LR&C has been plotting a three-prong approach to retail since its inception, according to Day, who is the company’s CEO, that includes plans to sell directly to consumers online, via its own stores and through wholesalers like department stores.
    “The future is omnichannel,” said Day, who said the strategy is the most profitable way to go in retail today. “Stores act more like showrooms for people to actually buy in the moment, touch and feel your product, and to be able to express your whole brand story.”
    “And there’s an advantage to wholesale in the beginning as a small brand, because … you also gain customers, awareness and marketing from those points of distribution,” she added.
    The company expects to open three or four permanent stores in the U.S. this year, and will also look to find a bigger space near the Seattle pop-up shop at University Village, Day said.
    House of LR&C’s expansion plans fit into a bigger trend shaping up in the retail industry as brands that launched on the internet invest in outlets in malls and shopping centers. Retailers like Allbirds, Warby Parker, Vuori and Mack Weldon are opening more shops this year, in part to help offset the expenses that come with running a business online.

    Sales in brick-and-mortar locations can yield more profit because the retailer saves on shipping costs to online buyers — and store-bought items are returned less frequently than online-purchased ones. Rents have also dropped in some markets during the pandemic, which may make it an opportune time for retailers to sign a lease.
    Savage X Fenty, a lingerie business started online by pop star Rihanna in 2018, said last week it will open its first store later this month in Las Vegas. It also plans to open locations in Los Angeles, Houston, Philadelphia and Washington, D.C., this year.
    “What we’re doing is establishing proof points, right now,” said Day. “In our [direct-to-consumer] business, we’ve seen the consumer desire is there.”
    Day was chief executive of Lululemon from 2008 to 2013, then had the top job at health food company Performance Kitchen. She currently sits on Kohl’s board.
    Like many start-up fashion retailers today, House of LR&C stresses sustainability, favoring materials that are less harmful to the environment in its products. It’s also in the process of becoming a certified B Corporation, and it donates 3% of net revenue to charity, Day said.
    “If we don’t actually make fashion sustainable and transparent, then we’re never going to change the industry,” she said. “That’s what we believe the whitespace is and that nobody is doing well.”
    Day said House of LR&C sales have increased by about 70% over the past year, from seven figures to eight figures. She didn’t provide any further details.
    The company recently closed a more than $7 million convertible offering with participating investors including private equity firm Ames Watson, Harlem Capital and Darco Capital, she said. It plans to use the funding to invest in adding more stores.
    TUNE IN: The House of LR&C will be presenting at ICR’s virtual conference at 4:30 p.m. ET on Tuesday.

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    Planet Fitness to buy franchisee Sunshine Fitness in $800 million deal

    Planet Fitness said it plans to acquire Sunshine Fitness, an operator of more than 100 Planet Fitness fitness clubs in the U.S., in a cash-and-stock deal valued at $800 million. 
    It also announced on Tuesday that it ended fiscal 2021 with 15.2 million members, an increase of 1.7 million people over the past 12 months.
    The gym chain said it opened 132 locations during the year, exceeding its own expectations and bringing its total gym count globally to 2,254.

    A person works out at Planet Fitness as they re-open at 25 percent capacity in Boston’s Dorchester on Feb. 1, 2021.
    Jessica Rinaldi | Boston Globe | Getty Images

    Planet Fitness said Tuesday it plans to acquire Sunshine Fitness, an operator of more than 100 Planet Fitness fitness clubs in the U.S., in a cash-and-stock deal valued at $800 million. 
    The transaction is expected to close in the first quarter of 2022, the company said in a press release. Planet Fitness said the deal is projected to add to its adjusted earnings at a low-double-digit percent this year.

    The purchase of Sunshine Fitness will allow Planet Fitness to diversify across more geographies, said Chief Executive Chris Rondeau. Sunshine Fitness operates primarily in the Southeast, with locations in South Carolina, North Carolina and Florida.
    “Owning corporate stores is an important part of our strategy, as it gives us both relevancy and credibility when making decisions that impact the entire system,” said Rondeau.
    Once the transaction is completed, Planet Fitness will own more than 200 corporate locations, or about 10% of its total portfolio, he added.
    Planet Fitness said it ended 2021 with 15.2 million members, an increase of 1.7 million over the past 12 months. It opened 132 locations during the year, exceeding its own expectations and bringing its total gym count globally to 2,254.
    Planet Fitness is scheduled to present to investors later Tuesday at the ICR conference, which is being held virtually this year.
    Planet Fitness shares rose about 17% in 2021.

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    WEF report warns of Covid inequalities fueling social tensions across the globe

    “Covid-19 and its economic and societal consequences continue to pose a critical threat to the world. Vaccine inequality and a resultant uneven economic recovery risk compounding social fractures and geopolitical tensions,” WEF said in the report published Tuesday.
    In the report, nearly 1,000 global experts and leaders from academia, business, civil society, government and other organizations, said that societal risks “have worsened the most since the pandemic began.”

    Demonstrators holds a banner with ‘Covid slave ticket’ written while they protest against the compulsory vaccination campaign against SARSCoV2, Belgium.
    Thierry Monasse | Getty Images News | Getty Images

    New research from the organizers of the annual Davos gatherings in the Swiss Alps warns of inequalities stemming from the coronavirus pandemic that could flare domestic and cross-border tensions around the world.
    This year’s Global Risks Report by the World Economic Forum describes a “global divergence” — where poorer nations have much lower Covid-19 vaccination rates and , therefore, face more prolonged economic troubles.

    “Covid-19 and its economic and societal consequences continue to pose a critical threat to the world. Vaccine inequality and a resultant uneven economic recovery risk compounding social fractures and geopolitical tensions,” WEF said in the report published Tuesday.
    “The resulting global divergence will create tensions — within and across borders — that risk worsening the pandemic’s cascading impacts and complicating the coordination needed to tackle common challenges.”
    Aside from the catastrophic death toll, one of the most immediate impacts of the coronavirus pandemic has been the ensuing rise in inequality, many economists have said. They’ve noted that many people have faced job insecurity or haven’t had the means to attend online education due to lockdowns.
    Richer countries have had earlier access to Covid-19 vaccines and many are already administering their third, or even forth, doses of the vaccine to their citizens. Meanwhile, poorer countries are struggling to see their populations receive even a first dose.

    In Ethiopia, only 1.3% of people are fully vaccinated against Covid. In Nigeria, this number is 2.1%, according to Our World in Data. By comparison, in the U.S., 62% of Americans are fully vaccinated. In the United Arab Emirates and Portugal, this number is at around 90%.

    “There is a major concern about livelihood crises — that’s actually number two on this list, so big concern around jobs and what’s happening in the labor market,” Saadia Zahidi, managing director at the World Economic Forum, said about the outcome of the Global Risks Report.
    Speaking to CNBC’s Julianna Tatelbaum, she added: “There is that concern around mental health crises and that adds to the erosion of social cohesion, for example there are 53 million new cases of depression especially due to Covid.”

    Gloomy prospects

    In the report, nearly 1,000 global experts and leaders from academia, business, civil society, government and other organizations, said that societal risks “have worsened the most since the pandemic began.”
    These specific risks included social cohesion and mental health deterioration.
    In addition, only 16% of respondents said they feel positive and optimistic about the outlook for the world. Furthermore, only 11% said they believed the global recovery will accelerate.

    The International Monetary Fund estimated back in October a global growth rate of 5.9% for 2021 and 4.9% for 2022. These forecasts were done before concerns emerged over a new Covid-19 variant, known as omicron.
    Since then, the IMF has admitted that these numbers might be revised down because of new restrictions. However, the institution has said that vaccination will remain critical to boost economic performance all over the world.
    “We have been screaming from the top of a mountain that [the] pandemic is the greatest risk to the global economy. And we have been advocating very strongly to vaccinate the world. Progress is made, not enough,” IMF Managing Director Kristalina Georgieva told CNBC in December. More

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    Covid vaccine programs could end with third dose for most people, Israeli doctor predicts

    Three vaccine doses are likely to provide sufficient long-term protection against severe Covid-19, a prominent Israeli doctor has said.
    Professor Eyal Leshem, an infectious disease specialist at Israel’s Sheba Medical Center, also said vaccines may need to be tailored to new variants every few years.
    Israel began to roll out fourth vaccine doses at the end of last year for older adults, some healthcare workers and people with weakened immune systems.

    An Israeli nurse receives a fourth dose of the Pfizer-BioNTech COVID-19 coronavirus vaccine at the Sheba Medical Center in Ramat Gan near Tel Aviv, on December 27, 2021.
    Jack Guez | AFP | Getty Images

    Three vaccine doses are likely to provide sufficient long-term protection against severe Covid-19, a prominent Israeli doctor has said.
    Speaking to CNBC in a phone call, Professor Eyal Leshem, an infectious disease specialist at Israel’s Sheba Medical Center, predicted that in the long run, a two or three-dose vaccination course would probably provide good protection against severe disease for the majority of people.

    “We may need to update those boosters every several years, possibly every year, to adjust them to the prevalent variant, but we may well not need any boosters if future variants prove to be less virulent as we see with omicron,” he said. “So it is possible that people who have had two or three doses of the current vaccines, and then been exposed during this wave to omicron or are exposed during future waves to other less virulent variants, will not need another booster at all.”
    Israel began to roll out fourth vaccine doses at the end of last year for older adults, some healthcare workers and people with weakened immune systems.
    Leshem conceded that the scientific basis for Israel’s rollout of fourth doses was not as robust as it had been for the approval of booster shots, but he said experts had decided to take the measure in case antibodies from boosters waned over time as they had been seen to do so after the initial two doses.

    “We really have very little scientific data to suggest that the fourth dose will add a substantially enhanced protection against severe disease and hospitalization,” he told CNBC. “So it was a recommendation based on expert opinion, rather than a recommendation based on robust data as we would ideally like to have in clinical medicine. We use expert opinion when we don’t have evidence, and we do that all the time in clinical medicine.”
    Health officials in other countries are currently divided over whether fourth doses of Covid vaccines will be necessary.

    Last week, the U.K.’s vaccination authority said there was “no immediate need” to introduce a second booster, although the issue remained 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.  

    CNBC Health & Science

    In December, the CEO of Pfizer told CNBC that fourth doses may be needed sooner than expected because of the highly transmissible omicron variant.
    However, the WHO has warned that rolling out too many booster doses in wealthier nations could actually prolong the pandemic by depriving poorer countries of access to vaccines.

    Vaccination drive

    Israel has embarked on an aggressive vaccination program in a bid to tame the pandemic and had one of the fastest vaccine rollouts in the world.
    As of Sunday, around 71% of Israel’s population had received at least one dose of a Covid vaccine, with 64% having been immunized with two doses. Almost half of the population has been given a booster shot.
    People who received their second shot more than six months ago are no longer considered fully vaccinated in Israel, where booster shots have been available to everyone over 12 since the summer.
    In Israel, individuals must show their vaccination status — or that they have recently recovered from Covid-19 — in order to enter certain venues, including gyms, restaurants and museums.
    The country logged 30,970 new cases of the virus on Sunday — the highest number of positive tests in one day since mass testing began.
    In the week ending Jan. 9, 136,569 people in Israel tested positive for Covid-19, marking an increase of 331% from a week earlier.

    According to official data, the virus’ R number — the rate at which it reproduces — has surpassed two, meaning the average infected person will spread Covid-19 to two other people. Any R number above one means an epidemic is growing exponentially.
    Hospitalizations in Israel are also on the rise but are nowhere near their pandemic peak. The seven days to Jan. 8 saw 733 hospital admissions, according to Our World in Data, marking the highest weekly number since the omicron variant emerged. Israel’s hospitalization rate peaked in Jan. 2021, when 1,985 people were admitted to hospital in one week.
    However, fatalities have remained stagnant through the omicron wave in Israel.
    On Sunday, one Covid-19 patient passed away in the country. That individual was vaccinated. On average, two people have died from Covid-19 each day over the past month. In late January last year, Israel recorded a high of more than 60 deaths in one day.  
    Leshem told CNBC that the rate of severe illness and hospitalizations could still rise, as there was usually a lag between rising cases and their consequences.
    “However, we don’t think that we will see a sharp increase as we would expect with previous variants,” he said. Omicron appears “inherently milder in most people, and this may have to do with viral biology — its affinity to the upper airways as contrary to affinity to the lower airways, which causes pneumonia.”
    He added that the high uptake of booster shots in Israel, as well as the country’s young population, were also likely to suppress any significant rise in severe disease.  

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    AirAsia CEO says international travel will bounce back strongly despite omicron impact

    International travel is likely to recover soon despite the progress being slowed by the omicron variant, according to AirAsia chief executive Tony Fernandes.
    “I do believe that we’re at the beginning of the end,” he told CNBC’s “Squawk Box Asia” on Monday.
    International travel will get back to pre-Covid levels around six months after borders begin to reopen, he predicted, adding that he hopes borders will start to open again in March.

    International travel is likely to recover soon despite progress being slowed by the omicron variant, according to AirAsia chief executive Tony Fernandes.
    “I do believe that we’re at the beginning of the end,” he told CNBC’s “Squawk Box Asia” on Monday, noting that the recovery has already begun in earnest.

    “The good thing is, this time last year, we had no planes flying. Now, we’ve got a large chunk of our fleet flying domestic Malaysia, Thailand and Indonesia,” he said, adding that demand has been “very, very robust.”
    International travel will get back to pre-Covid levels around six months after borders begin to reopen, he predicted, and said he hopes borders will start to open again in March.
    After a flurry of announcements about quarantine-free travel in Asia last year, several countries including Thailand and India reinstated restrictions for some arrivals, as omicron drove up caseloads.
    Fernandes also acknowledged that China continues to be a “big question” in terms of reopening, given that the country is still pursuing its zero-Covid policy.

    AirAsia’s ride hailing service

    Separately, Fernandes said the company’s ride hailing business has done “incredibly well” and “far exceeded” expectations since its launch in August 2021.

    He said AirAsia’s strategy is “exactly the same” as the one it used when the company entered the low-cost airline market years ago — high efficiency that results in lower prices for consumers.
    As a late entrant, AirAsia Ride could observe what models were successful, and did not have to spend a lot of money on research, development or tech, he said. It also acquired part of Indonesian start-up Gojek’s Thailand operations.
    “The market is still very, very under penetrated,” Fernandes said. “There’s a huge, huge upside.”

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    Shimao pushes back on media reports, says it's in talks for property sales to help resolve debt crisis

    In a filing on Tuesday, Hong Kong-listed Shimao Group made its first public response to media reports about the sale of its real estate projects.
    Shimao it is in talks with potential buyers and might sell some properties “in order to reduce the indebtedness of the Group.”
    Over the weekend, Chinese financial news site Caixin reported that Shimao put all its properties up for sale.

    An elderly couple walk past a sign in front of Shimao Tower, developed by Shimao Group Holdings Ltd., in Shanghai, China, on Saturday, Jan. 8, 2022.
    Qilai Shen | Bloomberg | Getty Images

    BEIJING — Chinese real estate developer Shimao Group Holdings pushed back Tuesday on reports of default and sales of prime property.
    Shimao is one of China’s healthier developers. However, the company’s Hong Kong-listed and mainland-listed stocks and bonds have plunged in the last few months after warnings of a shortfall in sales. The volatility comes amid broader concerns about the Chinese real estate industry’s ability to pay off high amounts of debt.

    In a filing on Tuesday, Hong Kong-listed Shimao Group made its first public response to media reports about the sale of its real estate projects.
    “Certain media reports have alleged that the Group has not fulfilled its financial obligations under a fund,” Shimao said in the filing. The company distanced itself from the unspecified fund, claiming that the developer’s subsidiaries were not directly involved with repayment, but were guarantors.
    Over the weekend, Chinese financial news site Caixin reported that Shimao put all its properties up for sale, which included a preliminary 10 billion yuan ($1.57 billion) deal with a state-owned company to buy Shimao International Plaza in downtown Shanghai.
    That followed a Reuters report Friday that Shimao failed to make full repayment on a trust loan, sending the company into default.

    Read more about China from CNBC Pro

    “The Company has not entered into a preliminary agreement in relation to the disposal of Shanghai Shimao International Plaza,” Shimao said. The company also said it’s in talks with potential buyers and might sell some properties “in order to reduce the indebtedness of the Group.”

    “As of the date of this announcement, the Company has no outstanding asset-backed securities due and payable,” the company said in the filing.
    Shimao shares traded slightly higher Tuesday morning, after surging by just over 19% on Monday.

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