Raphael Stevens

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    in Finance

    HSBC reports 76% jump in third-quarter profit, plans $2 billion share buyback

    HSBC’s reported pre-tax profit came in at $5.4 billion in the third quarter of 2021 — beating expectations.
    The bank did not announce any dividends for the third quarter. But the bank said it plans to start a $2 billion share buyback “shortly.”
    “We believe that the lows of recent quarters are behind us,” said Noel Quinn, HSBC’s group chief executive.

    HSBC on Monday reported third-quarter earnings that handily beat expectations and announced plans for a share buyback of up to $2 billion.
    The bank’s reported pre-tax profit for the third quarter jumped 75.8% from a year ago to $5.4 billion. Analyst estimates compiled by the bank had expected a 22.8% on-year jump in reported pre-tax profit to $3.776 billion.

    HSBC said it released around $700 million of cash that was previously set aside to prepare for a rise in loan losses as the global economy was weighed down by the Covid-19 pandemic. That contributed to the improved earnings, while all regions the bank operates in were profitable during the quarter, it said.
    The bank’s shares in Hong Kong closed 0.43% higher on Monday.
    “While we retain a cautious outlook on the external risk environment, we believe that the lows of recent quarters are behind us,” Noel Quinn, HSBC’s group chief executive, said in a statement accompanying the earnings release.

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    Meanwhile, reported revenue for the third quarter was $12 billion — 0.7% higher than a year ago. Analyst estimates compiled by HSBC had pointed to a 3.1% on-year increase in revenue to $12.3 billion.
    Here are the other highlights of the bank’s third-quarter financial report card:

    Net interest margin, a measure of lending profitability, was 1.19% — compared with 1.2% in the second quarter.
    Common equity tier 1 ratio — which measures the bank’s capital in relation to its assets — was 15.9%, compared with 15.6% in the second quarter.
    Basic earnings per share was 18 cents, compared with 17 cents in the second quarter and 7 cents in the third quarter of 2020.

    HSBC did not announce any dividends for the third quarter. But the bank said it plans to start a share buyback of up to $2 billion “shortly.”
    Ewen Stevenson, HSBC’s group chief financial officer, said the bank’s capital position has been “very strong.” He said the bank wants to reduce its capital ratio to around 14% to 14.5% by the end of next year.
    “We don’t want to sit on excess capital if we have it, and hence the $2 billion buyback,” Stevenson told CNBC’s “Capital Connection” after the earnings release.

    Evergrande concerns

    HSBC said in its earnings release that as of Sept. 30, it had no direct credit exposure to Chinese developers in the “red” category and limited exposure to those in the “orange” category.
    The bank was referring to the Chinese government’s “three red lines” policy that was rolled out to limit a company’s debt in relation to its cash flows, assets and capital levels.

    Stevenson said HSBC is “very comfortable” with its position in China’s real estate sector. He was responding to CNBC’s question about the bank’s exposure to embattled developer Evergrande.
    “We are reasonably conservative in our approach to lending to that sector, have been for some time,” said Stevenson.
    “We are going to be cautious but I think overall we are comfortable with where we stand in relation to our exposure to the sector, and whatever fallout that comes from there,” he added.
    Reuters reported that HSBC’s exposure to the Chinese real estate sector was around $19.6 billion.

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    There's a chance China might finally put taxes on property

    Chinese President Xi Jinping has the political momentum to finally get the ball rolling on property tax, analysts said.
    On Saturday, the top executive body, the State Council, was authorized to conduct a property tax test for five years in unspecified regions.
    “I think the central government has chosen [the] right time because of the political reshuffling happening before and after the 20th party congress next year, so to really resist a central government policy will be [a risk] to local government officials’ own career,” said Yue Su, principal economist at The Economist Intelligence Unit.

    Vehicles drive by unfinished residential buildings from the Evergrande Oasis, a housing complex developed by Evergrande Group, in Luoyang, China September 16, 2021.
    Carlos Garcia Rawlins | Reuters

    BEIJING — China is closer than ever to taxing property owners, analysts say, nearly two decades after authorities began floating the idea.
    What’s changed is that Chinese President Xi Jinping now has the political momentum to get the ball rolling on property tax, analysts said. This summer, Xi has emphasized authorities’ commitment to delivering “common prosperity,” or moderate wealth for all, rather than just a few.

    And in an essay earlier this month detailing what common prosperity means, Xi called for regulating excessively high incomes, with measures such as tests of a property tax.

    It is something which they will have to do because it is coming from the top, and therefore, it will happen.

    David Roche
    Independent Strategy, president and global strategist

    On Saturday, the top executive body, the State Council, was authorized to conduct such a test for five years in unspecified regions. These developments follow years of trying to limit speculation in China’s property market, which accounts for the bulk of household wealth.
    “I think the central government has chosen [the] right time because of the political reshuffling happening before and after the 20th party congress next year, so to really resist a central government policy will be [a risk] to local government officials’ own career,” said Yue Su, principal economist at The Economist Intelligence Unit.
    She was referring to the National Congress of the Chinese Communist Party, held every five years to determine top leadership positions.

    Property tax talk since 2003

    Unlike the U.S., China does not have a blanket tax on property. Real estate ownership in China can also differ. For example, state-owned enterprises have distributed apartments to their employees.

    Chinese leaders began discussing a property tax in 2003, but so far only the municipalities of Shanghai and Chongqing have implemented a limited version, analysts said.
    The experiences of those two cities in the last decade haven’t created a compelling argument for other local governments to roll out a property tax, Larry Hu, chief China economist at Macquarie, said in a note over the weekend.
    In 2020, property taxes in Shanghai and Chongqing accounted for 5% or less of local tax revenue, and contributed far less than what land sales did, Hu said.
    More than 20% of regional and local government revenue comes from sales of land to real estate developers, according to Moody’s. But if the property market is successfully tapped through tax channels, it could ultimately bring in significant revenue for local authorities.
    Real estate and related sectors like construction account for at least 25% of China’s GDP, according to Moody’s.

    Those figures partly reveal just what a force real estate is in China.
    China’s privatization of the housing market in 1998 allowed an older generation to buy apartments at a low cost, giving them a disproportionately larger share of the property market than younger generations, Hu said in a note over the weekend. He added that home prices vary significantly by city.
    “Property tax in China is much more than a wealth redistribution from rich to poor, but from older generations and high-tier [more developed] city residents to the rest,” Hu said. “As the result, the resistance to property tax is not only broad but also powerful.”

    A tax on wealth

    Property accounts for about 70% to 80% of household wealth in China, and drives about 10% of household income, Moody’s said.
    A nationwide property tax would likely require disclosures of business and government leaders’ real estate holdings, which means such a policy could meet resistance even as the country has been cracking down on corruption.
    But the latest political developments could tip the scale. Tycoons once built fortunes through developers like Evergrande by relying on debt for growth. That use of debt has become a target of government scrutiny in the last 18 months.
    In addition, Xi said in August that pursuing “common prosperity” in China would require curbing “excessive” income and encouraging the wealthy to give back to society. Later that month, the State Taxation Administration said it was investigating individuals who concealed their high income and evaded taxes.
    “The big idea is of course to recreate a lot of new, happy, middle class people who have affordable housing and affordable health care and affordable education, and therefore happy citizens,” David Roche, Independent Strategy, president and global strategist, said Monday on CNBC’s “Squawk Box Asia.”
    “And in order to do this you need to make sure that housing is for living — that is, not speculation, or for investment,” Roche said. “So, [property tax] is not something which is going to be left to local authorities to put into practice or local governments. It is something which they will have to do because it is coming from the top, and therefore, it will happen.”

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    Even with the latest political momentum, analysts don’t expect a nationwide tax on real estate immediately.
    “We believe Beijing is determined to quicken the rollout of property tax, but will still proceed in a cautious way and only phase in the tax gradually,” Ting Lu, chief China economist at Nomura, said in a note Monday.
    “Still,” he said, “the expectation of ever-rising home prices will likely be significantly reined in among Chinese households, new home sales across China could slow down, Beijing might see mounting challenges on the road to a nationwide property tax, and near-term pains are inevitable.”
    Ultimately, authorities will need to weigh the economic consequences of any moves on China’s massive real estate market.
    If there are simultaneous property dumps, that might slow the introduction of property tax and increase the ability of individuals to apply for exemptions, the EIU’s Su said.
    — CNBC’s Weizhen Tan contributed to this report.

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    This 'gentle parenting' guru gives her tips for raising confident kids

    Getty Images

    Having a relationship with your child based on empathy and mutual respect, also known as “gentle parenting,” can make them more confident, according to one popular childcare author.  
    Sarah Ockwell-Smith, who wrote “The Gentle Parenting Book,” told CNBC via telephone that “gentle” parents have a good understanding of their child’s capabilities, so the expectations around their behavior are “age appropriate.” 

    In other words, she said that “gentle” parents don’t expect their child to act like an adult but empathize with their behavior. For instance, if they misbehave, she said that a “gentle” parent would seek to teach their child a better way to express their emotions, rather than to punish them. 
    Ockwell-Smith explained that if children grow up in a house with less shouting and punishment it has a “massive impact on their self-esteem.” 
    She also said that calmer, more empathetic parenting also had a positive effect neurologically, in terms of the development of a child’s amygdala, which is the part of the brain responsible for emotional regulation. Ockwell-Smith said that research had shown that if children grow up in a more “supportive and nurturing” environment then that part of their brain grows larger.
    “So you’ve literally grown the part of their brain that’s responsible for their emotions and being calm when they’re older,” Ockwell-Smith said. 
    For instance, a study conducted by a researcher at the University of Montreal, published in March, indicated that “harsh parenting practices” could actually stunt the growth of a child’s brain. A 2012 study on preschool children by academics from Washington University indicated a “positive effect of early supportive parenting on healthy hippocampal development,” which is a brain region key for memory, learning and stress modulation.

    ‘Architects’ of a child’s life 

    Ockwell-Smith said that research had shown that how children are raised, particularly in the first five years of their life, was key to the development of their self-esteem and future relationships with those around them. 
    A 2016 paper from Harvard University’s Center on the Developing Child cited research which found more than a million new synapses, or connections between neurons in the brain, form every second in the first few years of a child’s life. Later on, these connections are reduced, which is a process called pruning, keeping those links which are “reinforced” by what they experience and learn. The authors of the paper, therefore, argued that positive experiences in those first few years are key to creating a strong foundation for a child’s development.  
    Indeed, Ockwell-Smith said that parents acted as the “architects” of a child’s life, so there was “nothing more important” than how they were raised in those early years. 
    She explained that there were three main styles of parenting: Authoritarian, authoritative (also known as “gentle parenting”) and permissive. 
    In contrast to “gentle parenting,” the authoritarian approach could be classed as “old school” parenting, she said. Parents following this approach typically demand respect from their child, she said, with punishment for misbehavior also frequently used. 
    On the opposite end of the spectrum, “permissive” parents can be classed as those with low expectations of their child, offering a lack of discipline and guidance, according to an explanation on Ockwell-Smith’s website.  

    ‘Good headspace’ 

    However, Ockwell-Smith said it was most important for parents to work through any of their own issues first, before looking to follow advice around “gentle parenting.” 
    She said that “we have to start on ourselves — so we have to think about ‘what are my stressors? Why do I behave the way I do? Why does it trigger me so much when my child says or does something? And how can I be a good role model?'” 
    She explained that this was important because a parent could be doing or saying all the right things but if they weren’t calm and were short-tempered, a child will still pick up on that — “it’s not magic, it won’t work unless you’re in a good headspace first.” 
    This could mean working through their own issues from childhood, or problems in adulthood, like needing to set boundaries with other adults. 
    This could entail, for example, ensuring that the “mental load” of parenting is shared more equally with a partner, Ockwell-Smith said. 
    That being said, she stressed that it was also important for parents to express when they are “at capacity” and they need time out. 
    She said that following this advice wasn’t about “aiming to be perfect all the time” and realizing that it was acceptable to make mistakes as a parent, as this also helped teach children what to do when they made mistakes. More

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    Pakistan beat India in World Cup for first time with thumping 10-wicket victory in Dubai

    Pakistan thumped India by 10 wickets to record their first World Cup win over their rivals at the 13th attempt.
    Babar Azam and Mohammad Rizwan scored fluent fifties after Shaheen Afridi starred with the new ball.
    Pakistan had lost all 12 of their previous World Cup matches against India, with seven defeats in the 50-over competition and five losses in the 20-over version, including in the inaugural T20 final back in 2007.

    Pakistan’s captain Babar Azam plays a shot during the ICC mens Twenty20 World Cup cricket match between India and Pakistan at the Dubai International Cricket Stadium in Dubai on October 24, 2021.
    Indranil Mukherjee | AFP | Getty Images

    Babar Azam and Mohammad Rizwan scored fluent fifties after Shaheen Afridi starred with the new ball as Pakistan thumped India by 10 wickets to record their first World Cup win over their rivals at the 13th attempt.
    Pakistan had lost all 12 of their previous World Cup matches against India, with seven defeats in the 50-over competition and five losses in the 20-over version, including in the inaugural T20 final back in 2007.

    That barren run was snapped in style on Sunday, with skipper Babar (68no off 52 balls) and Rizwan (79no off 55) putting on an unbroken 152 – their fourth century stand in T20 internationals this year – as the 2009 champions topped India’s 151-7 with 13 balls to spare in Dubai.
    Left-arm quick Shaheen (3-31) had earlier struck twice inside the first three overs before returning later on to dismiss Virat Kohli (57 off 49), whose pre-tournament favourites were humbled by their Group 2 rivals.
    Shaheen gave Pakistan a dream start, pinning Rohit Sharma (0) lbw for a golden duck in his first over and then bowling KL Rahul (3) with a quick nip-backer in his third as India tumbled to 6-2 after being inserted.
    That became 31-3 when Suryakumar Yadav (11) edged Hasan Ali behind while attempting a back-foot punch and Pakistan wicketkeeper Rizwan leapt to his right to claim a fine catch.
    India’s innings was revived by Rishabh Pant (39 off 30) and Kohli’s 53-run stand – Pant the dominant force in it, hitting two sixes with one hand off the bat before he slog-swept back to bowler Shadab Khan (1-22).

    Kohli, who had earlier clubbed Shaheen for a masterful six over long-on, completed a 45-ball, 29th T20I fifty while bossing a 41-run alliance with Ravindra Jadeja (13 off 13) for the fifth wicket.
    Kohli was eventually dismissed for the first time by Pakistan in a T20 World Cup when he edged Shaheen’s slower-ball bouncer behind on the pull in the penultimate over.

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    Shaheen’s over went wrong after that, going for 17 in total, as Hardik Pandya (11 off 8) carved a no-ball full toss for four and then, from the resulting free hit, Shaheen missed with his shy at the non-striker’s stumps and watched on as the ball scuttled away to the boundary.
    Haris Rauf (1-25) clawed things back with a seven-run final over, which included Pandya’s wicket, before Babar and Rizwan gave Pakistan a steady start to the chase, nailing their fifty partnership in the eighth over.
    Pakistan were going at around 6.50 runs an over at that stage but then accelerated with the 13th over, bowled by leg-spinner Varun Chakravarthy, seeing a six apiece from Babar and Rizwan.
    Babar’s six off Chakravarthy took him to a 40-ball, 21st T20 international fifty, while Rizwan clinched his ninth from 41 deliveries when he pulled Jasprit Bumrah for four in the 15th over.
    Rizwan began Mohammed Shami’s 18th over with a six and two fours, before Babar sealed his team’s thumping victory with a scampered two to long-on as Pakistan inflicted a first 10-wicket T20I defeat on India.

    Which players starred?

    Babar Azam and Mohammad Rizwan — Babar and Rizwan were already having good days at the halfway stage, with the former captaining well and the latter taking a brilliant diving catch. Their evenings only got better in the second innings as they made light work of India’s total.
    Rizwan’s knock, which featured three sixes and six fours, was his ninth fifty-plus score in T20 internationals in 2021. He is averaging over 100 in this format this calendar year, with no one having hit more than his 831 runs in that time. His nearest challenger? That would be Babar (591 runs).
    Dawid Malan may be ranked No 1 among T20I batsmen but it is difficult to argue that Babar is not the best batter around in this format, with his innings against India, in which he managed two sixes and six fours, showing all his finesse and no little muscle either.
    Shaheen Shah Afridi — quick, skilful, devastating. Shaheen sent Pakistan’s fans wild when his full ball tailed in and trapped Rohit plumb in front for a golden duck and he then castled Rahul in his follow-up over as the India opener played across the line. Shaheen returned late on for his fourth and final over, in which he dismissed Kohli and nearly got Pandya, too, as the latter was hurried by a short ball and ballooned into the air.
    Virat Kohli — you run out of superlatives for him. His six off Shaheen was sublime but a couple of coruscating extra-cover drives went for four, Kohli caressing them to the fence with no element of over-hitting. You can’t say Pant never overhits but, boy, is he fun to watch! Aside from those one-handed sixes, he also cut Mohammad Hafeez beautifully for four from on top of his stumps to show he has poise as well as power.
    Shadab Khan and Haris Rauf — these two backed up Shaheen beautifully, going at just 5.50 and 6.25 runs an over respectively. Leg-spinner Shadab kept things tight in the middle overs, while fast bowler Rauf’s 17 and 20th overs went for a combined 11 as he mixed his pace well.

    What’s next?

    Pakistan are back in action against New Zealand in Sharjah on Tuesday (2.30pm, Sky Sports Cricket). New Zealand are also India’s next opponents but that clash, in Dubai, does not come until Sunday (1.30pm, Sky Sports Cricket) with Virat Kohli’s side having a lengthy break between matches.
    Monday’s sole encounter is the Group 2 game between Scotland and Afghanistan (2.30pm, Sky Sports Cricket). Scotland are in red-hot form having won all three of their matches in round one to advance to the Super 12 for the first time in their history and will be confident of making that four victories from four when they meet Mohammad Nabi’s men in Sharjah.
    Watch the ICC Men’s T20 World Cup, in the United Arab Emirates, live on Sky Sports Cricket between now and November 14.

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    'Buckle your seatbelts' because earnings will start to disappoint, long-term bull Art Hogan warns

    Earnings season may turn an ugly corner.
    Long-term bull Art Hogan warns a storm of disappointing corporate guidance and missed revenue targets is ahead.

    “Buckle your seatbelts,” the National Securities’ chief market strategist told CNBC’s “Trading Nation” on Friday. “This will be the first time in the cycle you’re actually going to hear more companies guide down than guide up.”
    Hogan cites headwinds tied to supply chain backlogs, inflation and worker shortages.
    “There’s going to be a real earnings season of haves and have nots,” Hogan said. “The haves really have that pricing ability.”
    He cites Snap’s third quarter results as an example of upcoming trouble. The social media giant reported last Thursday a revenue miss, and it lowered guidance — citing trouble in its advertising business and global supply chain interruptions. Snap stock is off 27% since the announcement.

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    “Aggregate demand is outstripping aggregate supply,” said Hogan. “If you don’t have things to sell, you’re probably not increasing your ad budget.”

    He wants long-term investors to resist the urge to react to volatility and believes they should take a barbell approach to investing, with growth on one end and cyclicals on the other.
    “Any given earnings reporting season is not the time to make a broad sweeping change to your long-term investments plan,” he said. “But make sure you know what you have on your growth side, and make sure you’re picking companies that actually are sector leaders and are measured in a P/E [price-to-earnings ratio] versus price to revenues.”
    He believes the pain won’t trickle into year-end. His S&P 500 year-end target is 4,700, which implies a 3% gain from Friday’s close.
    “We’ve got a long runway in front of us, and I think a lot of demand that wasn’t satiated this year gets dragged into 2022,” Hogan said.
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    Dow futures fall slightly after the blue-chip average notches third winning week in a row

    Traders work on the floor of the New York Stock Exchange (NYSE) on October 15, 2021 in New York City.
    Spencer Platt | Getty Images

    Stock futures edged lower in overnight trading Sunday after the Dow Jones Industrial Average notched its third positive week in a row at a record high.
    Dow futures dipped 50 points. S&P 500 futures and Nasdaq 100 futures both fell about 0.1%.

    Wall Street is coming off a winning week on the back of strong corporate earnings. The blue-chip Dow gained more than 1% last week and closed Friday at a record. The S&P 500 rallied 1.7% last week, also posting its third straight positive week and hitting an all-time high Friday.
    Of the 117 companies in the S&P 500 that have reported earnings to date, 84% posted numbers that beat expectations, according to Refinitiv. S&P 500 companies are expected to grow profit by about 35% in the third quarter.
    “Rising tide of earnings is lifting all the boats and adding fuel to the bull market fire,” said Anu Gaggar, global investment strategist at Commonwealth Financial Network. “The 3Q earnings season is off to a strong start despite concerns about supply bottlenecks and labor shortages.”
    Some of the biggest technology companies are slated to report earnings this week, including Facebook, Alphabet, Microsoft, Amazon and Apple. A third of the Dow companies also is set to release quarterly results this week, including Caterpillar, Coca-Cola, Boeing and McDonald’s.
    Major averages have all registered solid gains for October. The Dow and the S&P 500 are both up more than 5%, while the Nasdaq Composite has climbed 4.4% month to date.

    Leading the October rally in the broader market has been the energy sector, which is up 11% this month. Industrials, real estate, materials and financials have all popped at least 7% over the same period.
    “Transports, consumer discretionary, and large-cap tech have led the market higher these past two weeks, signaling that growth worries around supply chain constraints are beginning to fade,” said Lindsey Bell, chief investment strategist at Ally Invest.

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    The Dallas Cowboys are back and fans of 'America's Team' are elated over the NFL's richest franchise

    The Dallas Cowboys are 5-1 this season, and among early favorites to win the Super Bowl.
    America’s Team, as the Cowboys are known, haven’t won the title since 1996.
    Despite their mediocrity over the past 25 years, the Cowboys are the most-valuable sports franchise in the U.S.

    Dak Prescott #4 of the Dallas Cowboys scrambles with the ball in the fourth quarter against the New England Patriots at Gillette Stadium on October 17, 2021 in Foxborough, Massachusetts.
    Maddie Meyer | Getty Images Sport | Getty Images

    The Dallas Cowboys haven’t won a Super Bowl in over 25 years. They’ve hardly even been in the conversation, notching only four playoff victories in that span.
    Yet the Cowboys are the most-valuable NFL franchise, topping the New England Patriots, who have won six Super Bowls since Dallas last took home the Vince Lombardi trophy. Despite decades of mediocrity, the Cowboys are always in the headlines, thanks to a brand that’s almost universally recognized.

    “They have that slogan that kind of sticks,” said former NFL wide receiver Terrell Owens, who played for the Cowboys from 2006 to 2008. “They are America’s Team.”
    Fans now have a reason to get excited about what’s happening on the gridiron. After an injury-riddled season last year that saw the team finish 6-10, the Cowboys are 5-1 in the new campaign, riding a five-game win streak and leading the NFC East division by three games.
    America’s team is back.
    “Love them, hate them – they are the biggest brand in the NFL,” said Scott Rosner, the director of Columbia University’s sports management program. “They are relevant no matter what side of the question you fall on – whether you’re on the love side or hate side.”
    Heading into their bye weekend, the Cowboys are the hottest they’ve been since 2016, quarterback Dak Prescott’s rookie season. Through six games Prescott is among the league leaders in passing, living up to his four-year $160 million deal. Prescott’s last season was cut short after he suffered a compound fracture in his right ankle in week six against the New York Giants.

    Prescott is getting plenty of assistance from the highest-paid NFL receiver, Amari Cooper, and the most expensive running back, Ezekiel Elliott. They make up the Cowboys’ new big three, spearheading an offense that’s second in rushing yards and fifth in passing.
    The defense has also held up. Despite giving up the third-highest number of yards, the unit leads the NFL in interceptions with 11, including seven by cornerback Trevon Diggs.
    Fans are downright giddy. The jerseys of Cooper and fellow wide receiver CeeDee Lamb are two of the top sellers across the league, according to the NFL Shop. The team leads the NFL in attendance, averaging 93,335 people at its three home games.
    Forbes projects the Cowboys are worth $6.5 billion, the most valuable across all U.S. sports. Jerry Jones, who purchased the team more than 30 years ago, has seen his wealth swell to $10.6 billion, Forbes estimates.
    “The Cowboys have not won since 1995,” said longtime Cowboys beat reporter Clarence Hill, who writes for The Fort Worth Star-Telegram. “Jerry bought the team in 1989, and they were in the tank. He would tell you the team was worth 50 cents on a dollar, even with the history. Since then, they’ve grown to the richest franchise and still haven’t won anything” since the ’95-’96 season, Hill said.
    There are still 11 regular-season games left, and the ultimate determination of success won’t come until the playoffs. But Jones has fans believing that greatness lies ahead.
    Here’s what former Cowboys receiver Michael Irvin, who won three Super Bowls with the franchise in the 1990s, said on ESPN’s “First Take” earlier in the week:
    “I want everybody out there, Cowboys Nation, I want you to know — Go get your Super Bowl tickets. Get them early. I’m trying to help you out right now.”

    Dallas Cowboys cornerback Deion Sanders hoists the Vince Lombardi Super Bowl trophy as he walks off the field to the locker room after defeating the Pittsburgh Steelers 28 January during Super Bowl XXX at Sun Devil Stadium in Tempe, Arizona. The Cowboys won 27-17.
    Vince Bucci | AFP | Getty Images

    Becoming America’s Team

    The last time the Cowboys made it to the big game was January 1996. They beat the Pittsburgh Steelers, 27-17. The big three consisted of quarterback Troy Aikman, running back Emmitt Smith and Irvin. The same trio led the Cowboys to Super Bowl wins in 1993 and 1994.
    Since their last NFL title, the Cowboys are 213-193. The team is 0-10 in playoff elimination games and has shuffled through six head coaches. The last Super Bowl-winning coach was Barry Switzer, who left after the 1997 season.
    Jones has faced hefty criticism from the fan base for the lackluster performance and for keeping such tight control of the team. He remains president and general manager. His son, Stephen, is chief operating officer and his “right-hand man,” according to the Cowboys website.
    Still, Jones has kept the Cowboys relevant and highly profitable, a rarity in the sports industry, where few teams are able to to make money while consistently losing games.

    It’s “because they’re America’s Team and the intentional marketing and power of the NFL,” said Hill of the Star-Telegram. “All that comes together.”
    The America’s Team moniker dates back to 1978, when Tex Schramm, the franchise’s original president, coined it in a retrospective on the season. The Cowboys had a record-setting 20 straight winning seasons from 1966 to 1985, and won two of their five Super Bowl appearances during that stretch.
    Quarterback Roger Staubach was a superstar, as was running back Tony Dorsett. Head coach Tom Landry, known for his trademark fedora and cool demeanor, established an elite offense.
    “He was ahead of the NFL when it came to strategy,” said former linebacker Garry Cobb, who started his career with the Cowboys in 1979 and returned about a decade later.
    Cobb, 64, recalled the days before he entered the league when the Cowboys ruled pro football.
    “When I was little, the Cowboys were on TV more than anybody else nationally,” said Cobb. “They had a winning record every year. That’s the way they became popular.”
    He then got to experience the fame as a player.
    “When we went into a hotel, the building was mobbed,” he said. “It was unbelievable. The popularity was already there.”
    Hill, who’s covered the team since 1996, said that atmosphere never really faded from the team.
    “It’s always a circus,” Hill said. “And coming to the Cowboys as a player or a coach, you must understand that it comes with the dinner. You must be able to navigate that as well as play football.”

    Wide receiver Terrell Owens #81 of the Dallas Cowboys celebrates his third touchdown against the Houston Texans on October 15, 2006 at Texas Stadium in Irving, Texas. The Cowboys defeated the Texans 34-6.
    Ronald Martinez | Getty Images

    Terrell Owens relished in the drama, telling fans to “get your popcorn ready.”
    “You notice it, and you feel it,” said Owens, who spent three of his 16 NFL seasons with the Cowboys. “You want to play to the standard that everybody there expects you to play at. It’s different when you’re playing in Dallas as opposed to a Cincinnati or Buffalo.”
    Owens played for both teams after leaving the Cowboys.

    Cowboys leverage state rights 

    Neal Pilson, former president of CBS Sports, said the network used the America’s Team slogan during its Cowboys telecasts. CBS, which had NFC rights until the early 1990s, constantly featured the Cowboys.
    “We helped build that label,” Pilson said. “And it certainly stuck.”
    The Cowboys won, but the business still lagged. The league made the big financial decisions, and team owners did little to engage directly with companies and sponsors.
    Jones bought the Cowboys for roughly $150 million in 1989, the most ever paid for a team at that time. He warned right away that things would be different.
    “I will be part of every decision,” the New York Times quoted Jones as saying in 1989. “I won’t leave anything to the football people.”
    Schramm resigned, and Jones made himself the general manager. He hired a college coach, Jimmy Johnson, to replace Landry, the only person to coach the Cowboys in its first 29 years. Jones then took on the NFL’s 75-year business philosophy.
    Most NFL teams weren’t profitable and the league controlled the way revenue was generated. Jones found loopholes in NFL deals that allowed him to disrupt the league’s pacts and make money for his team.
    In 1995, the Cowboys parted ways with league partner Coca-Cola and signed a deal with Pepsi for “pouring rights” at their home stadium. That agreement was worth a reported $20 million over 10 years, and it undermined Coke’s NFL deal for $250 million.
    The NFL sued Jones for $300 million in damages.

    Owner Jerry Jones of the Dallas Cowboys welcomes fans to training camp at River Ridge Complex on July 24, 2021 in Oxnard, California.
    Jayne Kamin-Oncea | Getty Images Sport | Getty Images

    “Prior to that deal, you didn’t have teams engaging in real vigorous local business operations,” said Columbia’s Rosner “You were essentially selling tickets and ads but not what it is today. Jerry challenged the system.”
    The sides ultimately settled in a manner that let Jones keep his sponsors. Other teams followed suit.
    “He was showing them how to make money,” said Cobb. “Now all the teams do it – they have league sponsors and team sponsors.”
    In both the 2019 and 2020 NFL seasons, the Cowboys attracted nearly $1 billion in revenue, according to Forbes. Pepsi still has pouring rights. AT&T owns naming rights to the stadium, a billion-dollar-plus building that opened in 2009 and is often referred to as Jerry World. And Ford owns rights to the team’s practice site.
    Last September, Fanatics signed a 10-year deal to take over e-commerce for the Cowboys. Merchandise revenue is up 60% this season compared to last, and Fanatics told CNBC that the Cowboys lead all NFL teams in merchandise sales. That’s been the case for five of the previous eight years.
    “All of the metrics around the Cowboys are higher than any other team,” Rosner said.

    Getting help from the big markets 

    The Cowboys are also the beneficiary of a geographical quirk. They’re in the NFC East, a division with teams in the big markets of New York, Philadelphia, and Washington D.C. 
    None are within 1,300 miles of Dallas.
    “You have a team in Texas in the NFC East,” said Ed Schauder, who heads the sports law practice at Phillips Nizer in New York. “It makes no sense, but there are organic national rivalries.”
    Playing twice a year against the Eagles, Giants, and Washington Football Team gives Jones outsized access to some of the top TV markets every NFL season. While Jones didn’t play a role in creating the divisional setup, he’s made sure to take advantage of it.
    “He probably saw the marketing value of their regular opponents,” Pilson said.” I think he saw that every year, given the NFL structure, he has two games into New York and Philadelphia.”
    Fox Sports, which now controls the NFC package, says Cowboys games account for nine of its 10 most-watched NFL contests since the partnership began in 1994. The biggest audience was on Thanksgiving in November 2016, when an average 35.1 million viewers tuned in for the Cowboys game against Washington.
    This season’s opener, a Thursday night affair against the Tom Brady-led Tampa Bay Buccaneers, attracted 24.4 million viewers on NBC Sports. It was the most-watched kickoff game since 2015. CBS said the Cowboys contest against Brady’s old team, the New England Patriots, averaged 23.2 million viewers last week, the most-watched national game for the network since 2015.
    “If they’re in contention for the division and make the postseason, [the Cowboys will] gather a bigger audience,” said Pilson.
    The Cowboys’ star players are cashing in on the exposure.
    Prescott took a 20% stake in sports-theme bar and eatery Walk-Ons earlier this year, to go along with $10 million in off-field endorsements, third-highest among NFL players, according to Forbes. He trails only Super Bowl-winning quarterbacks Brady ($31 million) and Patrick Mahomes ($22 million) of the Kansas City Chiefs.
    Former quarterbacks Aikman and Tony Romo are lead NFL announcers for Fox and CBS, respectively. Irvin works for ESPN. Smith was with the NFL Network and still has deals with companies like Marriott.
    “They benefit from that brand,” said Schauder. “Sponsors and endorsers look for players who get the most exposure.”
    Then there’s reality TV. The Cowboys were showcased on HBO’s “Hard Knocks,” an annual series that follows a team through training camp and the pre-season. Cowboys cheerleaders also have a show on Country Music Television.
    “Another team doesn’t get that media deal,” Schauder said, referring to the cheerleaders’ show.

    Dallas Cowboys Quarterback Dak Prescott (4) throws a pass during the regular season game between the Dallas Cowboys and the Tampa Bay Buccaneers on September 09, 2021 at Raymond James Stadium in Tampa, Florida.
    Cliff Welch | Icon Sportswire | Getty Images

    Are the Cowboys still America’s Team?

    On the field, the Cowboys still have everything to prove.
    During the team’s 25-year championship drought, Brady led the Patriots to nine Super Bowls and delivered seven championships, including for the Buccaneers last season. The Steelers have won two titles since facing the Cowboys in 1996. The Denver Broncos made four appearances and won three Super Bowls during that span.
    The Patriots have appeared in a record 11 Super Bowls, followed by the Cowboys, Steelers and Broncos at eight.
    Schauder, who admitted to being a converted Cowboys fan, says there’s still something unique about Dallas.
    “It’s an iconic brand,” he said. “They’re still America’s Team because that’s how they were branded. “Other teams have tried to claim it, like the Steelers.”
    Following this week’s bye, the Cowboys are back in action next week against the Minnesota Vikings on NBC’s Sunday Night Football. After that, they still have their annual showcase on Thanksgiving and two more night games in December.
    Winning sure helps, but no matter what fans across the country tune into watch the Cowboys.
    “At the end of the day, Dallas will still get more prime-time spots than any other team,” Schauder said.
    WATCH: Cowboys quarterback Dak Prescott discusses restaurant investment

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    How BioNTech went from a little-known biotech company to creating the Covid vaccine

    It was Jan. 24, 2020 when BioNTech CEO Uğur Şahin knew that Covid-19 was likely to become a global pandemic. 
    Though it was over a month and a half before the World Health Organization officially declared a pandemic, Sahin met with his wife, BioNTech’s co-founder and chief medical officer Özlem Türeci. Together, they agreed to redirect most of the company’s resources to developing a vaccine. 

    “He approached me and explained his thoughts and his his fears,” Türeci said. “And it was immediately clear to both of us that the technology we had, and which we had already clinically developed, that could help to ensure a rapid response.”
    Up until that point, BioNTech was primarily focused on developing novel cancer treatments. The company was little-known internationally. But the founders were confident in the potential of their mRNA technology, which they knew could trigger a powerful immune response. BioNTech knew that to successfully produce, test and manufacture a Covid vaccine on a global scale, it would need a bigger partner. The company already had a relationship with Pfizer, having worked with them since 2018 to develop an mRNA-based flu vaccine, which is in clinical trials. So, BioNTech turned to them.The companies succeeded. In August, the Pfizer-BioNTech vaccine became the first to gain full FDA approval.
    Watch the video to learn about the rise of BioNTech.

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