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    China may be moving toward easy monetary policy, but it will have to tread delicately

    Analysts say any easing by the People’s Bank of China may not come in overt moves, especially as the U.S. tightens monetary policy.
    Instead, China will likely seek targeted measures.
    The PBOC needs to support a slowing economy, while keeping inflation in check.

    People walk past the headquarters of the People’s Bank of China (PBOC), the central bank, in Beijing, China September 28, 2018. 
    Jason Lee | Reuters

    BEIJING — China’s central bank is poised to move carefully toward easing monetary policy, even as the U.S. is on its way to tightening policy.
    In moving in the opposite direction, the People’s Bank of China will need to strike a delicate balance, as policymakers keep a firm eye on inflation and the rising cost of U.S. dollar-denominated debt.

    Analysts say that easing monetary policy may not come in overt moves like cutting the amount of cash that banks must hold as reserves, or the RRR — one of many policy tools that the central bank holds. Instead, China will likely seek targeted moves.
    Here’s why.
    For one, divergence with the U.S. could have many consequences for the market.
    Jefferies’ analysts pointed out in a note Monday that many Chinese companies, especially property developers, have raised large amounts of U.S. dollar-denominated debt. That’s going to become more difficult to repay when the U.S. dollar climbs or U.S. yields start to rise on the back of the Federal Reserve’s planned reduction in asset purchases.
    The Fed released meeting minutes last week that showed the U.S. central bank is on its way to tightening, potentially as soon as next month. The move comes as U.S. policymakers worry about whether inflation will persist.

    China faces the same challenge. The producer price index, a measure of production costs for factories, rose by a record 10.7% in September from a year ago.
    “Persistent inflationary pressure limits the potential scope of monetary policy easing,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
    But it’s become clearer than ever to many economists that China will need to ease.

    [China’s] growth slowdown has hit levels policymakers can no longer ignore and we expect to see incremental loosening across three pillars – monetary, fiscal and regulatory.

    BlackRock Investment Institute

    Third-quarter GDP data released Monday showed China’s economy slowed more than expected. A power shortage has restricted factory production. Tighter regulation on debt in the real estate industry has cut into a sector that’s contributed to a quarter of China’s GDP.
    “The growth slowdown has hit levels policymakers can no longer ignore and we expect to see incremental loosening across three pillars – monetary, fiscal and regulatory,” BlackRock Investment Institute analysts said in a note Monday.
    Earlier this year, Beijing was more focused on addressing social issues, such as high child-raising costs in a country with a rapidly aging population. A regulatory crackdown over the summer included an abrupt order that after-school tutoring companies must drastically cut their operating hours.

    Read more about China from CNBC Pro

    Sun Guofeng, head of the monetary policy department at the People’s Bank of China, emphasized to reporters last Friday how the central bank’s monetary policy remained “prudent.” He said producer prices would likely remain high, but moderate by the end of the year.
    Sun also said the central bank was aware of the Fed’s statement. He did not discuss whether U.S. actions would affect China’s, and repeatedly said China had many monetary policy tools.

    Targeted monetary policy adjustments

    Analysts have long pointed out that China’s unique economic structure relies more on an array of monetary policy levers, rather than a single interest rate.
    “Monetary policy will be loosened appropriately,” Zong Liang, chief researcher at the Bank of China said Tuesday in Mandarin, according to a CNBC translation.
    While keeping overall monetary policy at a “normal” level, he said the central bank could ease policy for specific sectors. For example, the PBOC could help businesses struggling to bear the high cost of raw materials. Zong also expects support for stable economic growth will include a boost to infrastructure.

    He said China wants to avoid a situation in which policy support causes a rise in costs for ordinary consumers as well as for businesses.
    While producer prices surged 10.7% in September compared to a year ago, the consumer price index remained muted and climbed just 0.7% year-on-year.
    When it comes to monetary policy changes, many economists have lowered their expectations for China to cut the reserve requirement ratio (RRR) by the end of this year.
    “We think the weak Q3 data will prompt Beijing to further dial back growth-restraining policies,” said Aidan Yao, senior emerging Asia economist, AXA Investment Managers.

    Seeing a broader and long-lasting slowdown of the real estate sector is probably [the] largest downside risk that we need to monitor.

    Francoise Huang
    senior economist, Euler Hermes

    He said the likelihood of a broad-based RRR cut has declined following the latest PBOC comments, but “a targeted move is still possible if growth falters further.”
    On the fiscal side, Yao expects local governments to deploy about 1.3 trillion yuan ($203.3 billion) in cash from special bond sales in the next two months, which should “provide strong support” for investment in infrastructure.

    Letting the property market shake out

    However, Yao noted that Beijing’s tight control over traditional channels of implementing monetary policy – including the housing market – will limit the overall stimulus effect of policy easing.
    The greater drag on China’s growth still lies in the property sector. Beijing has increased its efforts in the last year to curb the industry’s reliance on debt for growth, sending property investment and new home sales falling in September.
    “Seeing a broader and long-lasting slowdown of the real estate sector is probably [the] largest downside risk that we need to monitor,” said Francoise Huang, senior economist at Euler Hermes, a subsidiary of financial services firm Allianz.

    She said policymakers are trying to “phase out the most indebted, or illiquid, or insolvent companies, in the meantime limiting contagion to other sectors.”
    Huang doesn’t expect Beijing to allow the economy to slow down so drastically that China can barely meet its GDP target of 6% growth this year. Most economists expect growth of around 8% this year.
    But with policymakers’ focus this year on addressing longer-term problems in the economy, Beijing may not be as inclined to stimulate growth as much as before, she said. “Their tolerance for slowdown and their tolerance for risk may be higher than in the past.”

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    CDC approves Moderna and J&J Covid vaccine boosters, allowing people to mix-and-match shots

    An influential CDC advisory committee on Thursday unanimously recommended boosters of Moderna’s and Johnson & Johnson’s Covid-19 vaccines.
    CDC Director Dr. Rochelle Walensky embraced the panel’s recommendations, clearing the shots for immediate distribution.
    More than 39 million Moderna recipients and nearly 13 million J&J recipients may be eligible for a booster dose as early as Friday.

    A healthcare worker holds syringes with the Moderna and Pfizer vaccines against the coronavirus disease (COVID-19) at a vaccination centre, in El Paso, Texas, May 6, 2021.
    Jose Luis Gonzalez | Reuters

    The Centers for Disease Control and Prevention late Thursday cleared booster shots of Moderna’s and Johnson & Johnson’s Covid-19 vaccines, giving people the freedom to mix and match any of the three vaccines approved for use in the U.S., the agency said in a statement.
    An influential Centers for Disease Control and Prevention advisory committee earlier Thursday unanimously endorsed boosters of Moderna’s and Johnson & Johnson’s Covid-19 vaccines.

    The agency’s Advisory Committee on Immunization Practices recommended the Moderna booster for elderly people and at-risk adults six months after they complete their primary series of shots, bringing it in line with the distribution plan for Pfizer and BioNTech’s booster. It also endorsed J&J boosters for everyone 18 and older who received the initial shot at least two months ago.
    The panel didn’t specify which vaccine should be used as a booster, leaving it up to doctors to decide whether to mix and match the companies’ doses to provide the best protection for patients.
    “The evidence shows that all three COVID-19 vaccines authorized in the United States are safe – as demonstrated by the over 400 million vaccine doses already given,” CDC Director Rochelle Walensky said in a statement that embraced the committee’s recommendations. “And, they are all highly effective in reducing the risk of severe disease, hospitalization, and death, even in the midst of the widely circulating Delta variant.”
    More than 39 million Moderna recipients and nearly 13 million J&J recipients may be eligible for a booster dose as early as Friday, according to a slide presented by the CDC during the meeting.
    Booster shots have been a contentious topic for scientists — in and outside the government — especially as many people in the U.S. and other parts of the world have yet to receive even one dose of a vaccine. The World Health Organization has pleaded with wealthy countries to hold off on distributing boosters, and some scientists say they aren’t convinced most Americans need them right now.

    Before the vote, some members said they were concerned about the lack of data on boosters, while others asked the agency if they could simplify the messaging on who is eligible to get the extra doses.
    “These recommendations are in some ways asking the individual to decide on their underlying risk and medical condition, because the reality is they’re not consulting with their physicians in all cases; they’re just going out and getting booster doses,” said member Dr. Jason Goldman.
    “And I worry that if it’s too prescriptive or if it’s too wordy, we are either going to miss the ability to give people boosters who really should be getting it, or people are just doing it anyway and not necessarily having the support of the language to do it,” he added.

    The Biden administration hopes giving the U.S. population additional doses will ensure long-term and durable protection against severe disease, hospitalization and death as the fast-moving delta variant continues to spread and change. A newly discovered mutation of delta is being investigated in the U.K. amid worries that it could make the virus even more transmissible and undermine Covid vaccines further.
    Walensky addressed the committee before the vote Thursday, thanking them for their work and noting that the data around the virus and vaccines is constantly evolving.
    “None of us individually can exactly predict what may happen next, and none of us individually can know exactly what to do,” she told the panel. “Please know that I am here listening and eager to learn from your perspective.”
    Moderna recipients can get a booster at half the dosage of the original two shots.
    The effectiveness of the two-dose vaccine against infection wanes over time, according to data the CDC posted before the committee’s meeting. Some studies show small declines in protection against hospitalization too, mainly for those over the age of 65, the data showed.
    The CDC said the data has shortcomings, noting that some recipients may have been engaging in riskier activities after getting vaccinated.
    CDC official Dr. Tom Shimabukuro presented data that showed there is an increased risk of rare inflammatory heart conditions, myocarditis and pericarditis, following vaccination with the Moderna or Pfizer vaccine, particularly following the second dose.
    The rate of the rare heart conditions within seven days of vaccination was 10 cases per million doses, Shimabukuro said, citing a study of U.S. military members. It often occurred in young men and usually after the second dose, he said. Most patients reported feeling fully recovered within six weeks.
    The surveillance is “ongoing,” he said.
    Dr. Macaya Douoguih, head of clinical development and medical affairs for J&J’s vaccines division Janssen, said there is no data to suggest people are at increased risk of a rare but serious blood clot condition after receiving a second dose. She presented data from the U.K. on second doses of AstraZeneca’s vaccine, which uses a platform similar to J&J’s.
    However, one expert on the committee noted that U.K. authorities began to curb the use of AstraZeneca’s vaccine in young women earlier this year because of the risk of rare blood clots, meaning it may be difficult to determine the impact of a second J&J dose based on that data.

    CNBC Health & Science

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    Nasdaq futures dip after tech earnings fall flat

    Futures on the Nasdaq 100 dipped in overnight trading Thursday after disappointing earnings reports from technology companies.
    Nasdaq 100 futures fell 0.5%. Dow Jones Industrial Average futures shed 26 points. S&P 500 futures ticked down 0.3%.

    Shares of Intel retreated more than 8% after hours following a weaker-than-expected sales report. The semiconductor company blamed an industry-wide chip shortage for its revenue miss.
    Social media stocks also dropped in extended trading after Snap said its advertising business declined due to Apple’s privacy changes. Snap shares sunk more than 21% while Facebook and Twitter each pulled back more than 4% after hours.
    In Thursday’s regular session, the S&P 500 notched both a fresh intraday high and new record close. The broad index rose 0.3% for its seventh consecutive positive session. The Nasdaq Composite rose 0.6%, while the Dow shed 6.26 points, or 0.02%.
    Investors digested a slew of corporate earnings reports. Tesla shares closed 3% higher Thursday, providing support to the S&P 500 and Nadaq Composite.
    Companies are posting strong profits so far this third-quarter reporting season despite supply chain and inflation headwinds. Out of 101 S&P 500 members that have reported financial results, 82.6% have topped earnings expectations, according to FactSet as of Thursday after the bell.

    “In a quarter where we thought things would slow down and there was concern about what profit margins were going to look like, these companies are still doing well,” said Victoria Fernandez, chief market strategist at Crossmark Global Investments.
    Strong jobs data also added to the positive market sentiment. Initial jobless claims fell to a new pandemic low of 290,000 last week, the Labor Department reported Thursday — down 6,000 from the previous week and lower than the 300,000 expected from economists surveyed by Dow Jones.
    All three major averages are on track to close the week higher for three-straight weeks of gains. On the month, all three indexes are up at least 5%.
    Investors await earnings reports Friday from companies including American Express, Honeywell, Schlumberger and Cleveland-Cliffs.

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    Carbon offsets are imperfect but necessary and the market needs to grow fast, says B of A exec

    Carbon offsets are a reality of decarbonization goals set by companies, organizations, and governments in the near term, said Karen Fang, the Head of Global Sustainable Finance at Bank of America.
    Using carbon offsets in a organization decarbonization pledge is not a sign of being lazy, it’s a reality, Fang said.
    The market for carbon offset accounting and verification needs to be increased massively and quickly and standardized, she said.

    Bruce Forster | Stone | Getty Images

    Companies and governments are racing to release pledges and commitments to decarbonize. Those goals mean the markets for carbon offsets need to get massively bigger and more standardized very quickly.
    So says Karen Fang, who leads sustainable finance for Bank of America.

    Right now, organizations are making best-faith estimates in their decarbonization plans — but they are only estimates, Fang told CNBC.
    “I think the skepticism is always justified, because if anybody tells you today they know exactly every single technology, at what pace they’re going to develop, how much and how fast will it take green hydrogen to break even with fossil — I think that’s not credible,” Fang said. “Anybody who says they know the answer is not credible.”
    Fang knows what organizations are dealing with because she is steering the decarbonization plans for Bank of America and all of the organizations, institutions, and municipalities it lends money to, invests in, or otherwise finances.
    Bank of America’s goal is to achieve net zero greenhouse gas emissions in its financing activities, operations, and supply chain before 2050. 
    “Every single client that gets money from, financing, or investment from Bank of America, their emissions matter to me,” Fang told CNBC. “We spend so much time talking to the C-suite or top management at every client, institution, organization, corporation, because their plan affects our plan.”

    More from CNBC Climate:

    The carbon offset market is in its infancy

    There are three levels of emissions that organizations track, called scope 1, 2 and 3.
    Scope 1 emissions are the direct emissions that come from operations that are owned or controlled by the organization in question. Scope 2 emissions are the indirect emissions resulting from the generation of electricity, steam, heating, or cooling consumed by the organization.
    Scope 3 emissions include all indirect emissions that come from the value chain or supply chain of the organization in question.
    Tracking scope 3 emissions requires an organization to question everything: “Where is this piece of paper coming from? Where is the vendor? How is the vendor producing the product you’re using, like your pen?” Fang said.
    To get to carbon neutrality, organizations will have to use carbon offsets, especially to compensate for scope 3 emissions.
    That should be seen as the honest route, not a cop out, Fang said. But carbon accounting and offsets must be standardized.
    “What is the most defendable, credible way of using offsets in your business in your scope, one, two and three reduction process, but without being seen as just taking the lazy way out? Fang said. “We’ve done everything we could — you still have that last bit. And we we’re not being laissez faire, we’re not being lazy. We’re actually saying, ‘We have everything we could, there was this residual bit, we want to basically offset'” that last bit.
    Not only does the carbon offset market need clearer and more enforceable standards, it also needs to get a whole lot bigger very quickly.
    Last month, Bank of America said in a research note that carbon offsets issued in 2020 were equivalent to 210 million metric tons of carbon dioxide emissions either removed or avoided. That’s equivalent to only 0.4% of total global emissions.
    Achieving net-zero emissions by 2050 will demand approximately 7.6 gigatons of carbon dioxide offsets or removal, BofA said. That could require as much as a fifty-fold increase in the offset market. At the very low-end, the market for offsets will quadruple, the bank said.
    Today, there are four primary registries for carbon offsets: Verified Carbon Standard, or Verra; The Gold Standard, the American Carbon Registry and the Climate Action Reserve. All are non-profit, non-governmental organizations.
    “I almost hope, maybe this is naïve, that they could all come together with a unified form of standard recommendation,” Fang said.
    “Because the world needs it and needs a lot of it and needs a lot of it really, really, fast,” she said.
    While the carbon offset industry gets a bad reputation, Fang said, that’s largely due to a small number of nefarious cases of abuse. They’re not all bad.
    “Planting a tree is better than not planting a tree. I don’t think anyone can argue with that, from a carbon perspective,” Fang said.
    The upcoming collection of world leaders at COP26, the 26th United Nations Climate Change Conference in Glasgow, is an opportunity for supporting a carbon offsets standardization. The Group of Seven (G7) and the Group of Twenty (G20) or the United Nations are all the kind of governing bodies that could put forth accepted guidance for the industry, Fang said.
    “We don’t have a choice,” Fang said. “We have to be very pragmatic and don’t let perfect be the enemy of the good.”

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    General Motors unveils new high-end GMC Sierra Denali and AT4X pickups

    GM is moving its GMC Sierra 1500 pickup further upmarket with two new high-end models, including one called the Denali Ultimate that will start at more than $80,000.
    The new models aim to build upon the Sierra’s already high profit margins and average transaction prices.
    The other new pickup is the AT4X, a more luxurious and off-road capable pickup than the brand’s current AT4, starting at $74,995.

    2022 GMC Sierra 1500 AT4X (left) and Denali Ultimate

    DETROIT – General Motors is rolling out two new high-end GMC Sierra 1500 pickups, including one called the Denali Ultimate, that will start at more than $80,000 – making it the most expensive full-size, half-ton pickup on the market.
    The new models aim to build upon the Sierra’s already high profit margins and average transaction prices, which are at more than $53,342. That includes $61,695 for the current Denali 1500 pickup, which starts at about $57,700.

    The other new pickup is the AT4X, a more luxurious and off-road capable pickup than the brand’s current AT4, starts at $74,995. It features many, but not all, of the tech-enhancements as the Denali Ultimate with off-road parts and accessories. It also features less chrome on the exterior, opting for more blacked-out features and tires.

    2022 GMC Sierra 1500 Denali Ultimate

    “There is opportunity to add even more luxury and even more capability. We think that there is a market for that. There are people who are willing to pay an even higher price point,” Duncan Aldred, global head of GMC, said during an interview earlier this year.
    The new models are part of an updated lineup of the full-size pickup for the 2022 model-year that includes a refreshed exterior and a redesigned, more technologically advanced interior on most models. The trucks are debuting Thursday night online and during an ad on Thursday Night Football between the Denver Broncos and Cleveland Browns.
    The updated models offer more than 40 diagonal inches of digital display, including new 13.4-inch-diagonal color touchscreen, 12.3-inch digital driver instrument cluster and 15-inch head-up display. Both the AT4X and Denali Ultimate feature a standard 6.2-liter V-8 engine with 420 horsepower and 383  foot-pounds of torque.

    2022 GMC Sierra 1500 AT4X

    While the GMC Sierra shares its bones with the Chevrolet Silverado, the automaker has purposefully differentiated the pickups as well as brands in recent years. The differentiation has allowed GM to push the GMC brand further upmarket, despite many of the vehicles sharing platforms and characteristics with Chevrolet vehicles.

    The vehicles are scheduled to go on sale spring of next year, according to GM. The automaker is taking $100 refundable reservation deposits for the 2022 Sierra models on GMC’s website.
    Starting pricing for the 2022 GMC Sierra lineup will range from $32,495 for a work-oriented pickup to $80,395 for the Denali Ultimate. Pricing includes a mandatory $1,695 destination fee.
    GMC is not the first to offer a truck with a starting price of more than $80,000. Ford Motor offers a handful of pickups over that price but they are larger Super Duty trucks than the GMC Sierra 1500.

    Denali Ultimate

    GM executives have touted Denali as one of its profit gems for many years now. It started in 1999 as a small trim on the Yukon SUV but has expanded in recent years to every vehicle in the brand’s lineup.
    The Sierra Denali Ultimate is a fully loaded vehicle, coming with GM’s Super Cruise hands-free highway driving system, which the company announced is expanding to 22 models by 2023. The technology will be available on the regular Denali but not standard.

    “The first-ever Sierra Denali Ultimate trim is the most advanced and most luxurious pickup in its class, taking the popular Denali sub-brand to an even higher threshold of capable luxury,” GM said in a release Thursday.
    Other features include a carbon fiber-composite pickup bed, top-end suspension and ride components, massive 22-inch wheels, full-grain leather appointments and open-pore Paldao wood trim on the interior.

    AT4X

    GM is calling the AT4X a “balanced execution that delivers advanced off-road capability” without compromising on-road comfort.
    Like many other automakers, GMC wants to capitalize on increasing sales of SUVs and demand for off-road-capable vehicles. The looks and features of such vehicles have become more popular with mainstream consumers in recent years.

    2022 GMC Sierra 1500 AT4X

    The vehicle features an upgraded suspension system and other off-road parts and accessories such as two-speed transfer case for rock crawling.
    GM’s Chevrolet brand last month also oa new off-road model for the Silverado 1500 called the ZR2.

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    U.S. government agency in charge of financial stability weighs in on climate change risks

    The Financial Stability Oversight Council on Thursday released a report assessing the risks a changing climate poses to the U.S. financial system.
    The council issued the report on climate-related financial risk in response to President Joe Biden’s executive order earlier this year.
    The blueprint could potentially move forward new regulations and oversight related to climate-based financial risk on Wall Street.

    U.S. Treasury Secretary Janet Yellen listens as U.S. President Joe Biden holds a meeting with business leaders and CEOs about the debt limit at the White House in Washington, U.S., October 6, 2021.
    Kevin Lamarque | Reuters

    The Treasury Department’s Financial Stability Oversight Council on Thursday released a report assessing the risks a changing climate poses to the U.S. financial system and providing recommendations for protecting the economy.
    The council issued the report in response to President Joe Biden’s executive order on Jan. 27 that directed Treasury Secretary Janet Yellen, the head of the FSOC, and financial regulators to produce a report on climate-related financial risk data.

    The blueprint could potentially move forward new regulations and oversight related to climate-based financial risk on Wall Street.
    Climate-related disasters such as heat waves, drought, floods and wildfires have grown more frequent and threaten to upend the stability of the financial system. In 2020 alone, a record number of disasters caused $95 billion in damages, according to the National Oceanic and Atmospheric Administration.
    The FSOC’s report also accounts for how climate change will likely create abrupt shocks to the financial system in the coming years. Different sectors will experience stresses as policy, consumer sentiment and technologies shift in order to mitigate climate change, the report said.
    For instance, a Commodity Futures Trading Commission panel last year cited data estimating that between $1 trillion and $4 trillion in global wealth connected to fossil fuels could be destroyed.
    Here are the FSOC’s main recommendations:

    Form a Climate-related Financial Risk Committee
    Fill climate-related data and methodological gaps
    Improve climate-related public disclosures and reporting requirements
    Mitigate climate-related risks through scenario analysis.

    A senior Treasury official, during a call with CNBC on Thursday, said the FSOC anticipates all council members will sign on to the report as well as formally establish the Climate-related Financial Risk Committee with a charter.
    Earlier this month, more than 20 federal agencies published climate adaptation plans identifying the biggest threats climate change poses to their operations and facilities and how they plan to address them.
    More recently, the Biden administration published a governmentwide roadmap to account for how climate change could harm the companies people are invested in and to protect the savings of American families with retirement plans.
    The president is set to attend the United Nations Climate Change Conference of the Parties, or COP26, in Scotland in early November. The U.S. has vowed to slash domestic greenhouse gas emissions in half by 2030 and reach net-zero emissions by 2050.

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    Stocks making the biggest moves after hours: Snap, Intel, Chipotle and more

    People walk past Snap Inc. Snapchat signage displayed in downtown Los Angeles, California on October 2, 2021.
    Patrick T. Fallon | AFP | Getty Images

    Check out the companies making headlines after the bell: 
    Snap — Snap shares sunk roughly 23% in extended trading after the company missed revenue expectations in the third quarter. The social media platform posted revenue of $1.07 billion versus $1.1 billion expected, according to Refinitiv. Snap saw its advertising business decline after Apple introduced privacy changes earlier this year. The company also issued lower-than-expected fourth-quarter revenue guidance. Other social media and digital advertising stocks also fell after hours following Snap’s report, including Facebook, Twitter and The Trade Desk.

    Intel — Shares of Intel retreated 8.8% in after hour trading following the semiconductor company’s quarterly financial results report. Intel posted revenue of $18.1 billion, compared with the Refinitiv consensus estimate of $18.2 billion. The company blamed the weaker-than-expected sales on an industry-wide component shortage. Intel also issued lower-than-expected fourth-quarter earnings-per-share guidance.
    Chipotle Mexican Grill — Chipotle shares added 1% after hours following an earnings beat. The fast-casual chain crushed analyst expectations, posting adjusted earnings of $7.02 per share versus $6.32 per share expected, according to Refinitiv. Price hikes helped the company offset higher beef and freight costs.
    Mattel — Shares of Mattel gained 5.5% in extended trading after the toy maker’s quarter earnings report crushed Wall Street expectations. Mattel posted earnings of 84 cents per share on revenue of $1.76 billion, while analysts surveyed by Refinitiv expected earnings of 72 cents per share on revenue of $1.69 billion.
    Whirlpool — Whirlpool shares fell 4.3% after hours following a weaker-than-expected quarterly report. The home appliance company posted revenue of $5.49 billion versus $5.74 billion expected, according to Refinitiv. Whirlpool also issued lower-than-expected full-year earnings-per-share and revenue guidance.
    Boston Beer — Shares of Boston Beer fell 3.3% in extended trading despite the brewery’s better-than-expected third-quarter sales report. Boston Beer posted revenue of $561.6 million, topping the consensus analyst estimate of $531.5 billion, according to StreetAccount.

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    American, Southwest CEOs say they don't plan to fire employees over federal vaccine mandate

    American and Southwest say they will follow a federal mandate that requires staff to be either vaccinated against Covid-19 or receive a religious or medical reasons.
    Southwest last week dropped a requirement that would put staff with pending exemption requests on unpaid leave.
    CEOs at both Texas-based airlines said they don’t plan to fire staff over the issue, softening their tone from earlier this month.

    Southwest Airlines Chairman and CEO Gary Kelly (R) speaks alongside American Airlines chairman and CEO Doug Parker (L) following a meeting with other airline executives at the White House about extending economic assistance to the airlines, in Washington, DC, September 17, 2020.
    Saul Loeb | AFP | Getty Images

    Southwest Airlines and American Airlines CEOs on Thursday said they don’t expect to fire unvaccinated workers, softening their tone as the deadline for a federal mandate approaches.
    Starting Dec. 8, the Biden administration will require federal contractors, including those two carriers, Delta, United and others, to ensure that their staff are vaccinated against Covid-19 unless employees are granted an exemption for medical or religious reasons.

    Southwest and American have recently relaxed their rhetoric on the mandate, urging staff who don’t plan to get vaccinated to apply for an exemption. Earlier this month, each carrier told employees they would need to be vaccinated or receive an exemption to continue working there.
    Southwest last Friday told employees it no longer planned to put them on unpaid leave if the company hasn’t reviewed or approved their requests by the Dec. 8 deadline, CNBC reported Tuesday.
    Employees and other individuals have protested the vaccine mandate at each carrier’s headquarters this month. Some of their labor unions have also opposed the mandate.
    “If they can’t get vaccinated, then we’re asking them to seek an accommodation for religious reasons or medical reasons and we’ll evaluate each one of those,” Southwest CEO Gary Kelly told CNBC’s “Squawk on the Street.” “As long as they’re valid we’ll be approving those.”
    “I’m not going to fire anybody,” Kelly said, after the company released quarterly results

    American’s CEO Doug Parker said the vast majority of the carrier’s employees are vaccinated and that a small minority “almost certainly” will have a religious or medical exemption by the deadline “and those who aren’t we’ll continue to work with.”
    United Airlines issued a strict companywide mandate in August, a month before President Joe Biden issued the new vaccine rules, and United has said that more than 96% of its 67,000 U.S. employees are vaccinated.
    United’s CEO Scott Kirby on Wednesday said travelers should be aware that other airlines’ scrambling to catch up to the mandate requirements could compromise those carriers’ operations. “Caveat emptor,” Kirby said during the Chicago-based airline’s quarterly call.
    The federal vaccine mandate doesn’t appear to apply to the regional airlines that fly sometimes half of larger carrier’s flights, however, officials at United and American said. American’s CEO Parker said Thursday that that applies to its wholly-owned subsidiary airlines as well.
    Airlines and other federal contractors won’t have to provide vaccination proof or other documentation to the U.S. government but rather they will be added to federal contracts, a White House official said.
    The federal government would work with the contractor to help them reach compliance, but if not, the contract could be terminated by the government, the official said.

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