Raphael Stevens

General Motors Chairman and CEO Mary Barra on April 1, 2020 tours one of the company’s facilities in Warren, Michigan that will produce Level 1 face masks.GMDETROIT — General Motors is taking a surprisingly simple approach to its return to work strategy for employees: “Work appropriately.”That’s the message being conveyed Tuesday by CEO Mary Barra and other GM leaders about how the automaker plans to reintegrate its 155,000 global employees in a post-vaccine work world. It’s a flexible, evolving policy that will differ depending on the employee, week and project, according to executives.It could mean conducting more training remotely for GM’s 87,000 hourly factory workers whose jobs require them to be at the company’s manufacturing facilities. Or it could mean allowing a salaried employee to permanently work from home or run a hybrid schedule of in-office and remote work.”It is not about a policy or a one-size-fits-all approach,” Laura Jones, GM’s global talent director, told reporters this week. “But truly that evolution of our culture for everyone.”The decision to create such a program followed feedback from employees, many of whom have been working remotely for a year due to the coronavirus pandemic. GM conducted several surveys regarding how and where employees would prefer to work in the future, officials said.Dress codeGM’s remote work plan is a play off the company’s simplified dress code, which Barra initiated while leading human resources from 2009-2011. She replaced a 10-page dress code policy with two words: “Dress appropriately.”Such flexible and ambiguous policies are meant to empower GM’s leaders to take responsibility for their departments and employees. GM recently held 52 workshops for 1,100 company leaders to lay out its remote work initiative, according to officials. Each leader will work with their employees to determine what is an appropriate work schedule.”The learnings and successes of the last year led us to introduce how we will manage the future of work at GM, called ‘Work Appropriately.’ This means that where the work permits, employees have the flexibility to work where they can have the greatest impact on achieving our goals,” Barra said in a LinkedIn post Tuesday.GM declined to estimate how much it could save on office-related costs as a result of the new initiative. Executives also declined to forecast how many employees are expected to remain remote. Jones said having such an estimate would go “against the philosophy” of the initiative.GM’s strategy comes a month after Ford Motor said it will launch a hybrid work schedule that gives nonmanufacturing employees more flexibility over when they report to the office.RecruitingGM believes its new policy, which it is calling a “mindset,” will help recruit new employees, some of whom will not work in traditional GM locations.Allowing for such flexibility has already boosted recruiting during the coronavirus pandemic, according to Cyril George, GM’s global talent acquisition director.”From a recruiting standpoint, it’s significantly opened up the talent pool for us,” he said, calling it a “truly liberating aspect” for hiring.George said the company hired more new employees in the U.S. in the first quarter of 2021 than in all of 2020 and 2019 combined. About 20% of the 3,300 new job offers are fully remote, he said.GM declined to provide an update on when employees who are working remotely due to the coronavirus pandemic will return to the office. The company previously confirmed a goal of June or July, but said that would be based on local regulations related to Covid-19.Only about 25% of GM’s nonmanufacturing employees globally are working at physical locations, according to a company spokesman. More

Sen. Elizabeth Warren wants one of her biggest critics to face lawmakers in a hearing next week.Warren, a progressive Democrat from Massachusetts, is inviting billionaire investor Leon Cooperman to testify before a Senate Finance subcommittee hearing on taxes.Cooperman, in a response given to CNBC, acknowledged he received the message and said that he is considering Warren’s invitation. The senator requested that Cooperman confirm his attendance by Thursday.Warren, in a letter to Cooperman first obtained by CNBC, called on the financier to attend a hearing being organized and led by the Finance Committee’s Fiscal Responsibility and Economic Growth subcommittee, which she chairs. The hearing, set for April 27, is titled Creating Opportunity Through a Fairer Tax System.Warren told Cooperman in the letter she is interested in giving the longtime Wall Street executive “an opportunity to discuss my Ultra-Millionaire Tax Act, which would level the economic playing field and narrow the racial wealth gap by asking the wealthiest 100,000 households in America, or the top 0.05%, to pay their fair share.” The letter was sent to Cooperman on Monday.A rivalry between Warren and Cooperman exploded during the Democrat’s campaign for president. After she proposed a wealth tax during the primary, Cooperman blasted her proposal in a letter to the lawmaker.”However much it resonates with your base, your vilification of the rich is misguided, ignoring, among other things, the sources of their wealth and the substantial contributions to society which they already, unprompted by you, make,” he said at the time.A month later, Warren’s campaign ran a TV ad on CNBC taking aim at Cooperman and other business leaders. Her campaign also sold a mug that read “BILLIONAIRE TEARS” in response to a CNBC interview during which Cooperman cried.Cooperman has since done numerous interviews ripping Warren’s tax proposals, including a CNBC appearance in March in which he advised viewers to buy gold if such a bill passes.”If the wealth tax passes, go out and buy yourself some gold because people are going to rush to find ways of hiding their wealth,” Cooperman told CNBC at the time.Cooperman expressed skepticism Tuesday about Warren’s invitation.”I’m trying to determine whether she’s being objective or whether she’s just trying to promote her own agenda,” Cooperman told CNBC in a statement. “I’m a bit suspicious given how she never responded to the letter I sent her before.”Cooperman, who will turn 78 two days before the hearing, is one of the most outspoken members of the investor community. He often speaks of his rags-to-riches story: growing up in the South Bronx as the child of working-class Polish immigrants, attending public schools, and starting his first Wall Street job – with Goldman Sachs – in debt and with zero net worth.After more than two decades with Goldman, Cooperman founded the hedge fund Omega Advisors in 1991. He is now the CEO of the Omega Family Office. Last year, he signed the Giving Pledge, which is a commitment by rich people to donate a majority of their wealth to charity.”That’s the American Dream,” he said. “I want to give others the opportunity to live the American Dream.”Warren addresses Cooperman’s issues with her wealth tax idea in the letter sent Monday, encouraging him to discuss his concerns in front of her committee and those watching from home.”But as we move expeditiously toward consideration of changes to our rigged tax code so that the wealthy pay their fair share, I believe you should be afforded the chance to present your perspective directly to Congress,” she writes to Cooperman. “The opportunity will allow you to fully air your views, not merely in front of the financial news audience where you often express them, but before the entirety of the American people.”Warren and other Democratic lawmakers have pitched a 3% total annual tax on wealth exceeding $1 billion.They have also called for a lesser, 2% annual wealth tax on the net worth of households and trusts ranging from $50 million to $1 billion.Cooperman’s net worth is at $2.5 billion, according to Forbes. More

In this articlePG.CRBQXContainers of Tide detergent on grocery store shelves in New York.Richard B. Levine | Corbis | Getty ImagesProcter & Gamble on Tuesday topped analysts’ estimates for quarterly earnings and revenue as consumers maintained pandemic buying trends like purchasing more cleaning supplies and started buying beauty products again.The company, whose portfolio includes Tide detergent, Charmin toilet paper and Pampers diapers, also announced that it will raise prices on some products this autumn.Shares of the company fell less than 1% in premarket trading.Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:Earnings per share: $1.26 vs. $1.19 expectedRevenue: $18.1 billion vs. $17.9 billion expectedFor the third quarter ended March 31, net income rose to $3.27 billion, or $1.26 per share, up from $2.92 billion, or $1.12 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $1.19.Net sales rose 5% to $18.1 billion, beating expectations of $17.9 billion. Organic revenue grew 4% in the quarter.The company’s fabric and home care segment, which includes Dawn and Cascade dish detergents, reported organic sales growth of 7% from a year earlier, when many North American consumers were stockpiling cleaning supplies.P&G’s beauty segment also reported organic revenue growth of 7%. Consumers have started buying skin-care products, like its premium SK-II brand, again, and Chinese customers led growth in hair-care products.The health-care business saw organic sales grow by 3% in the quarter. The growth came from the segment’s oral care products, which include Oral B toothbrushes, while its cold and flu products lagged. Social-distancing measures resulted in a weaker flu season this year.The company’s grooming segment, which includes Gillette and Venus, saw organic sales growth of 4%. Organic sales of shaving appliances rose more than 20%. Men, however, are still growing out their pandemic beards and bought fewer blades and razors than women.Baby, feminine and family care was the only segment with declining organic sales. The company said that fewer consumers bought its baby care products, like Pampers diapers, due to competition and retailer inventory. The segment faced tough comparisons from a year ago.The company reiterated its fiscal 2021 outlook, forecasting sales growth of 5% to 6% and adjusted earnings growth of 8% to 10%.P&G has started implementing price hikes across its baby-care, feminine-care and adult incontinence products in the United States to offset rising commodity costs. Price increases will vary by brand but will be in the range of mid-to-high single digits. Consumers can expect the price increases to go into effect in September. Rival Kimberly-Clark, which makes Huggies, has already announced price hikes on some of its products. More

In this articleLULUAn employee restocks clothes on display at the Lululemon Athletica sports apparel store on Regent Street in London.Simon Dawson | Bloomberg | Getty ImagesLululemon is getting into resale.The leggings and sports bra maker announced Tuesday it is piloting a trade-in program in California and Texas next month, which will then expand to a resale program in June.Starting in May, Lululemon customers in California and Texas will be able to trade in gently used Lululemon items, in a store or by mail, in exchange for a Lululemon gift card.The following month, those gently used items will start to be sold to people who want to pay less and don’t mind a bit of wear on their tops and bottoms. The company is calling the pilot “Like New.” Lululemon is partnering with Trove, a business that already helps brands like Levi’s and Patagonia build out resale marketplaces, to make it happen.Lululemon says that all traded-in items will be cleaned, and the items that don’t meet its quality standards will be recycled. The retailer says it will rely on shoppers’ feedback in the pilot before it scales it to other states and more stores.”Lululemon is actively working to help create a healthier future,” CEO Calvin McDonald said in a statement.The business is currently working toward a number of sustainability goals that it laid out last fall, including making 100% of its products with sustainable materials and end-of-use solutions by 2030, he added.Lululemon certainly isn’t the first retailer to experiment with resale. Businesses are feeling a greater urge to do so when they see sites like Poshmark and Depop, which sell used goods, are flooded with their products.Last year, Levi Strauss & Co. debuted a buyback program for its jeans called SecondHand. Nike announced earlier this month a new initiative to accept gently worn sneakers that are then cleaned and resold in select stores at a reduced price.Retailers from Gap to Macy’s to Nordstrom have dipped their toes into the secondhand market, too, partnering with marketplaces like ThredUp, to encourage customers to send in used items but also to allow them to thrift for themselves.Thrifting is increasingly popular with Gen Z, a generation that cares more about the environment and takes that into consideration when shopping.Mentions of thrift and consignment stores ranked No. 10 on a list of teens’ favorite brands this spring, according to Piper Sandler’s biannual report on the generation’s spending. That was up from 23rd a year earlier, as more teens familiarize themselves with secondhand marketplaces.According to a separate report from Jefferies, the secondhand market generates nearly $30 billion in sales annually in the United States, and it expects the market will grow to represent a mid-teens percentage of the total U.S. apparel market over the next decade, driven by online resale. Gen Z spenders are already at this level, the firm said.”We believe most companies should find some way to participate in resale, either via partnerships or an owned platform, given (1) the growing importance of sustainability to the consumer, [and] (2) its growing importance to investors,” Jefferies analyst Janine Stichter said in a note to clients.In tandem with the debut of its resale pilot program, Lululemon will also be releasing a limited edition collection of merchandise that is made using lower-impact dyes, which are upcycled from the waste of oranges, beets and saw palmetto trees. These dyes use less water, carbon and synthetic chemicals compared with conventional synthetic dyes, it said.The unique tie-dying process also produces a slightly different result each time, so every print in this new collection will be one-of-a-kind, it added. The line, called Earth Dye, will be available globally online and in select Lululemon stores on May 11.Year to date, Lululemon shares are down about 7%, as of Monday’s market close. The retailer has a market cap of $42 billion. More

In this articleKOKMBPGPampers Diapers, which are manufactured by Procter & Gamble, are displayed in an Associated Supermarket in New York.Ramin Talai | Bloomberg | Getty ImagesProcter & Gamble announced on Tuesday that it will hike prices on baby care, feminine care and adult incontinence products in September to respond to higher commodity costs.The consumer giant joins a host of other companies, like rival Kimberly-Clark and beverage giant Coca-Cola, that are raising prices to protect profit margins. The companies are betting consumers will be willing to pay more for the brand version instead of opting for a cheaper private label. However, that outcome depends on the economic recovery from the coronavirus pandemic and how many consumers will have the cash to spare.P&G said its price increases will vary by brand but will be in the range of mid-to-high single digits.Chief Operating Officer Jon Moeller said on a press call that the company is assessing the raw material costs and foreign exchange impacts on other categories as well, which could mean more price increases down the line. For example, Kimberly-Clark raised prices on its Scott toilet paper due to rising commodity costs, but P&G’s Charmin products have not been impacted yet.Shares of P&G fell less than 1% in premarket trading after the company reported its fiscal third-quarter results. The company topped Wall Street’s earnings and revenue estimates as consumers bought more cleaning supplies and laundry detergent. More

Lamar Jackson of the Baltimore Ravens, left, stiff arms the Kansas City Chiefs’ Juan Thornhill at Baltimore’s M&T Bank Stadium on Sept. 28, 2020.Todd Olszewski | Getty ImagesGenius Sports, the tech firm that now owns the National Football League’s official data rights, has completed its merger with DMY Technology Group and will start trading as a public company on the New York Stock Exchange.Stockholders of special purpose acquisition company dMY Technology Group approved the $1.5 billion merger with Genius Sports last Friday. It will trade on the NYSE under the ticker symbol “GENI”.The company said it enters the public market “with over $145 million in cash and no financial debt on the balance sheet” as it looks to capitalize on global sports betting, including a growing U.S. market. In a CNBC PRO article, Goldman Sachs estimated the U.S. sports betting market will be worth nearly $40 billion by 2033.”As Genius Sports enters an exciting new chapter in its history, we are uniquely positioned at the heart of the world’s sports, betting and media ecosystem,” said Mark Locke, Genius Sports’ CEO, in a statement. “Our merger with dMY II and listing on the NYSE are a testament to the enormous opportunity ahead of us as we leverage our unique scale, drive innovation and deliver products that help our partners create new and immersive experiences for sports fans around the world.”Genius Sports enters the NYSE after finalizing one of the most sought-after data rights agreements in sports with the NFL.NFL and Genius Sports agreed to a four-year deal on April 1, making Genius the official data provider for NFL games. Under the pact, Genius will distribute real-time play-by-play stats, the league’s “Next Gen Stats,” and will provide sports betting data feeds to media companies and sports betting firms domestically and internationally.This is a May 16, 2018, file photo showing then-Turner Broadcasting President David Levy attending the Turner Networks 2018 Upfront in New York.Evan Agostini | Invision | APThe company also has partnerships with other leagues, including the National Basketball Association, Major League Baseball, PGA Tour, and the National Collegiate Athletic Association. Top betting companies Flutter Entertainment, which owns FanDuel, DraftKings, Caesars’ William Hill, MGM’s BetMGM, and PointsBet, use Genius’ data.The company named former Turner Sports boss David Levy as its new chairman on March 25. Levy will serve on the company’s board alongside; dMY II chairman Harry You and CEO Niccolo de Masi.”With its proprietary technology, unparalleled access to data and growing network of partnerships, (Genius) is powering the global sports, betting and media ecosystem,” said de Masi. “What’s more, the company benefits from a strong competitive moat and clear, promising growth opportunities that should drive compelling value for shareholders over the long-term.”On Monday, shares of dMY Technology Group II closed at $18.26 per share. More

In this articleJNJJohnson & Johnson’s coronavirus disease (COVID-19) vaccines are seen at Northwell Health’s South Shore University Hospital in Bay Shore, New York, March 3, 2021.Shannon Stapleton | ReutersJohnson & Johnson on Tuesday reported $100 million in first-quarter sales of its Covid-19 vaccine that’s on hold in the U.S. while federal health regulators investigate a rare blood-clotting issue.In releasing its first-quarter financial results, the company also reported earnings and revenue that beat Wall Street’s expectations.Here’s how J&J did compared with what Wall Street expected, according to average estimates compiled by Refinitiv:Adjusted EPS: $2.59 per share vs $2.34 expected.Revenue: $22.32 billion vs $21.98 billion expected.The New Jersey-based company’s share price was down slightly in premarket trading following the report.J&J’s pharmaceutical business, which developed the single-shot Covid vaccine, generated $12.19 billion in revenue, a 9.6% year-over-year increase. The results were driven by sales of the company’s multiple myeloma drug Darzalex and Stelara, a treatment for Crohn’s disease.The company’s consumer unit, which makes products such as Neutrogena face wash and Listerine, generated $3.5 billion in revenue, down 2.3% from a year earlier. Its medical device unit generated $6.57 billion, a 7.9% increase.J&J Chief Financial Officer Joseph Wolk told CNBC on Tuesday that its three business segments are “healthier” than they were entering the pandemic last year.The company raised its earnings and revenue guidance for the year. J&J now expects full-year profit of $9.42 to $9.57 per share, compared with its previous forecast of $9.40 to $9.60 per share. It expects revenue between $90.6 billion and $91.6 billion, compared with its prior forecast of $90.5 billion to $91.7 billion.J&J’s Covid vaccine has been put on pause in the United States after six women developed a rare but potentially life-threatening blood clotting disorder. One woman died and another was in critical condition.The six women developed the condition known as cerebral venous sinus thrombosis within about two weeks of receiving the shot, U.S. health officials said. CVST is a rare form of stroke that happens when a blood clot forms in the brain’s venous sinuses. It can eventually leak blood into the brain tissues and cause a hemorrhage.White House chief medical advisor Dr. Anthony Fauci said last week the pause would give U.S. health regulators the time they need to thoroughly investigate the cases and “find some common denominators among the women who were involved.”Vamil Divan, an analyst at Mizuho Securities, said in a note to investors Tuesday that he expects safety-related concerns of the J&J shot will drive further demand for Pfizer’s mRNA-based vaccine.Wolk told CNBC that the company is working with U.S. regulators to ensure they have all the information they need to make their decision on the use of the J&J vaccine. He said he expects the U.S. to make a decision as early as the end of this week. A key Centers for Disease Control and Prevention panel is scheduled to meet Friday to make a recommendation on the vaccine.”We remain very confident and we’re hopeful the benefit-risk profile will play out,” he told CNBC’s “Squawk Box,” adding that the company still expects to deliver 100 million doses in the first half of this year should the U.S. investigation on the blood-clot cases “go well.” More

In this articleGPSAn employee rings up a customer’s purchases at the Athleta store in New York.Ron Antonelli | Bloomberg | Getty ImagesGap Inc. announced Tuesday plans to sell its Athleta brand in Canada, rival Lululemon’s home turf.It marks the women’s athletic apparel brand’s first expansion outside of the United States. Gap said Athleta will launch online in the Canadian market later this summer, followed by the opening of company-owned retail stores in North York, Ontario, and West Vancouver, British Columbia, this fall.The move is part of Gap’s overall strategy to grow Athleta to the point that it’s bringing in $2 billion in net sales annually by 2023. Athleta surpassed the $1 billion mark last year, with its sales up 16% from 2019 levels. Gap’s total sales for 2020 amounted to $13.8 billion.”International expansion is a key component of our growth strategy,” Athleta CEO and President Mary Beth Laughton said in a statement.The Athleta brand — like peers Lululemon and Nike — has been a pandemic beneficiary, as more women look for comfortable clothing such as leggings, stretchy pants, tank tops and soft pullover sweaters to wear at home during the health crisis. For Gap, the Athleta banner provides a pocket of growth, as its namesake Gap brand and Banana Republic have struggled to resonate with consumers.Gap is on track to open between 20 and 30 Athleta stores across North America each year, adding to the more than 200 locations it has today. It also said it will consider different wholesale partnerships and franchise-operated stores as it looks for growth globally. It already has a franchise model and wholesale business for Athleta in the U.K.In Gap’s fourth quarter, Athleta’s same-store sales were up 26%, marking the biggest increase of its four brands, including Old Navy. Athleta is also the least promotional of Gap’s brands, which helps drive profits higher.To be sure, Gap could face hurdles as it takes Athleta into Canada. Other American retailers have stumbled in the region in the past. Target shuttered all of its Canadian stores less than two years after it opened them. Best Buy has also closed many of its stores in the country.Lululemon’s success there provides Athleta with promise. Lululemon was founded by Chip Wilson in Vancouver in 1998. The brand started as a yoga studio, then became a standalone store in 2000. The key for Athleta will be to determine if there is enough market share for it too.Gap shares are up more than 60% year to date, as of Monday’s market close. The company has a market cap of $12.2 billion.—CNBC’s Courtney Reagan contributed to this report.WATCH LIVE: Athleta CEO Mary Beth Laughton will join CNBC’s “Power Lunch” Tuesday afternoon to discuss the brand’s announcement. More