Raphael Stevens

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    British EV start-up Arrival is setting up in North Carolina to build a UPS fully electric fleet

    A British electric vehicle company is putting down roots in the U.S. and plans to take its new production concept global as demand for new mobility systems grows.Arrival, which is developing electric vans and buses, announced last week that it is building a second microfactory in Charlotte, North Carolina. The company plans to assemble vehicles there for a fleet order from United Parcel Service starting in the second half of 2022.President Avinash Rugoobur told CNBC’s Jim Cramer Monday its vertically integrated microfactories require less space and capital investments than traditional manufacturing facilities.”We’re partnering with the city of Charlotte to produce a whole transportation ecosystem together,” he said in a “Mad Money” interview. “When you look at the global scale that needs to shift to being electric, we expect to have microfactories, you know, all around the world.” Arrival is investing more than $41 million into the facility in Charlotte, where its U.S. headquarters is situated. The company plans to go public via a blank-check merger with Ciig Merger and expects to hire more than 250 employees at the site. That’s in addition to the 650 jobs it said it would bring to the area as part of the corporate offices it announced in December.ArrivalArrival says it’s on a mission to accelerate the transition to zero-emission commercial vehicles. The company claims a competitive advantage in that it designs its own batteries and other components in-house and writes its own software, Rugoobur said.”What’s interesting about the microfactory is you can use existing warehouses and turn them into production facilities,” Rugoobur said.UPS placed an order with Arrival almost a year ago for 10,000 Generation 2 Electric Vehicles as part of the shipping giant’s move to electrify its fleet of delivery vans. The delivery firm took a stake in Arrival at the same time. The electric vehicles are expected to hit streets over the next four years.Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

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    Trade inflows in Asia fuel debate over currency intervention

    IT MIGHT SEEM cause for celebration. Taiwan was already a standout economic performer in a pandemic-plagued world, and its good run, fuelled by semiconductor sales, is continuing. Orders for its exports soared by an eye-watering 49% in the first two months of 2021 compared with a year earlier, according to data released on March 22nd. There is just one snag: export strength has become awkward for officials in Taipei, for it attracts unwanted attention. America’s Treasury has already placed Taiwan on its “monitoring list” for countries that manipulate their exchange rates, and the boom only adds to the harsh glare.If it is any solace to Taiwan, it is far from alone in drawing such scrutiny. Across Asia foreign-exchange reserves—a good proxy for currency intervention—have soared. Excluding China (where the data are trickier to interpret), reserves in the next ten largest Asian economies increased by about $410bn last year, the biggest annual jump on record, according to calculations by The Economist.Some of the other countries in the same boat as Taiwan are part of the Asian manufacturing complex which has benefited from resilient overseas demand for electronics and consumer goods amid the covid-19 lockdowns. In Vietnam, for example, exports grew by 6.5% last year. With its currency, the dong, loosely pegged to the dollar, much of those trade receipts wound their way into official foreign-exchange reserves (the central bank issues dong to buy excess dollars from commercial banks at a quasi-fixed exchange rate).Other countries recorded big net currency inflows in tougher circumstances. In the Philippines and India exports slumped, but imports fell more sharply. Both countries swung from current-account deficits to large surpluses last year.The controversial question is whether the build-up in reserves is, from a global perspective, bad. The case against reserves is that, since they stem from efforts to suppress currency appreciation, they represent a beggar-thy-neighbour trade policy: boosting your exports at the expense of others. Yet there is also a case for reserves. For small open countries, the goal may be to minimise disruptive exchange-rate swings, not to keep a currency cheap. And for developing countries, reserves are a liquidity backstop if foreign capital dries up, as it did for many last year.That distinction matters in Asia. It seems absurd to fault some of the poorer countries. During the “taper tantrum” of 2013, when emerging markets sold off over fears of American monetary tightening, India and Indonesia were among those seen as vulnerable because of their reliance on external financing. Bigger buffers should make them more stable. If they can wrestle the pandemic under control this year, it is likely that their imports will rebound and their current-account surpluses will diminish. The increase in their reserves would end up looking like a healthy aberration, not a malign trend.The gains in richer countries—especially China, South Korea and Taiwan—look more objectionable. They themselves seem to be aware of this. Most notable is China, which appears to have taken steps to conceal its good fortune. Its central bank’s foreign reserves have risen by $97bn since the start of 2020, making for a relatively modest increase of 3%. But there has been a marked jump in net foreign assets held by its commercial banks, which are up by $183bn, or 27%, over the same period (see chart). One possibility is that the commercial lenders have acted as proxies for managing reserves. Currency traders in China say big state-owned banks have indeed been major buyers of dollars at moments of maximum yuan strength.The best defence for these three countries is that they have wanted to check the speed at which their currencies appreciate, particularly given the uncertainties of the pandemic. Even with their accumulation of reserves, the currencies of China, South Korea and Taiwan are all up by about 5% against the dollar since mid-2020. As time goes on it will get harder to use that defence. Still, the pandemic promises to leave a key oddity of the world economy intact: treasure chests of reserves in Asia that are accumulated, held, and spent in order to insulate economies from global currency markets that policymakers don’t trust. ■ More

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    Travel industry urges Biden to set health passport standards, plan to lift international travel bans

    In this articleDALLUVUALAALCOVID-19 vaccination record card issued by the Centers for Disease ControlBill Clark | CQ-Roll Call, Inc. | Getty ImagesU.S. airlines and more than two dozen other industry groups on Monday urged the Biden administration to form a plan by May to lift international travel restrictions, including digital vaccine passport standards, after cross-border travel was devastated in the Covid pandemic.Airlines for America, which represents major U.S. airlines like American, United, Southwest and others, sent a letter to Jeffrey Zients, the White House’s Covid-19 response team coordinator, saying the guidelines should exempt vaccinated people from international testing rules.Among other recommendations, the groups asked that the Centers for Disease Control and Prevention update its guidance to say that vaccinated people can safely travel, according to a copy of the letter viewed by CNBC.”To be clear, at this time, we do not support removal or easing of core public health protections, such as the universal mask mandate, inbound international testing requirement, physical distancing or other measures that have made travel safer and reduced transmission of the virus,” said the letter, which was also signed by the U.S. Chamber of Commerce, the largest flight attendant union and other industry groups. “However, the data and science demonstrate that the right public health measures are now in place to effectively mitigate risk and allow for the safe removal of entry restrictions.”Most non-U.S. citizens who have recently been in Europe, the U.K. and Brazil have been banned from entering the U.S. since last March, when then-President Donald Trump instituted the rules as Covid-19 was spreading around the world. In January, President Joe Biden extended the entry restrictions and added South Africa to the list because of a rise in infections and new, more contagious variantsThe group also called on the White House to set standards for digital health documents that can show immigration officials proof of vaccinations or test results.In the meantime, airlines and officials have been looking at ways to use digital vaccine or health passports to help spur travel and eventually replace travel restrictions. The European Union last week proposed a digital health certificate with a QR code that contains vaccine and Covid-19 test results.Delta Air Lines’ CEO Ed Bastian last week told “NBC Nightly News” that he expects digital vaccine passports will be required for international travel.The White House declined to comment and pointed to a recommendation against travel that CDC Director Dr. Rochelle Walensky gave Monday.”Now is not the time to travel,” she said at a news conference.”We are worried not just for what happens when you are on the airplane itself, but what happens when people travel, that is they go out, they mix, they mix with people who are not vaccinated,” she said. More

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    Cramer endorses buying Roblox stock: 'This is the real deal'

    CNBC’s Jim Cramer on Monday endorsed buying shares of Roblox, the online gaming company that began trading publicly earlier this month.”You’ve got my blessing to put on a position in Roblox right now, right here, although I’d like it of course at a much lower level, but this is the real deal,” the “Mad Money” host said.Roblox ended the trading session on Monday at $70 per share, up 8.5% since its direct listing on the New York Stock Exchange almost two weeks ago. The San Mateo, California-based company, founded in 2004 by Erik Cassel and David Baszucki, is valued above $38 billion.”I’ve gotta tell you, I really like this business model,” Cramer said.The platform is especially popular among younger generations, who go to the site to build, share and play video games. Roblox said daily active users grew 85% in 2020 to 32.6 million, up from the 47% growth it saw in 2019. The number of paying users more than doubled to about 490,000.Roblox brought in $923.9 million last year, marking 82% growth from the $508.4 million it recorded in 2019. “The stay-at-home economy allowed them to break out, but going forward I’m betting they can maintain a lot of this flywheel-like momentum,” Cramer said.Given its subscription service, Cramer argued that the stock should be judged on a price-to-booking basis. He pointed out that Wall Street analysts forecast $2.71 billion in bookings next year, meaning the stock trades for about 17 times 2022 bookings.”Pretty expensive, but still aligned with something like Snap and a lot cheaper than Unity Software, maybe the closest comparison,” he said.Cramer cautioned the stock could see some volatility this year as the economy fully reopens and people reduce the amount of time they spend at home and in digital spaces.”If it keeps climbing, though, I wouldn’t pay more than $83.50 for this one, which is roughly 20 times next year’s bookings, at least not until we get more visibility into how they see the rest of the year playing out,” he said.”That said, this is a good one. I think it’s worth it to weather a possible storm and I recommend buying some right here,” he continued, “Then you could buy more on the way down, but only if you share my conviction.”DisclaimerQuestions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

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    Inflation fears are creating 'extraordinary' buying opportunities in tech, Invesco says

    In this article.IXICUS10YWhen rising Treasury yields put pressure on tech stocks, Invesco’s Kristina Hooper is looking to put money to work.Hooper, who oversees $1.3 trillion in assets, predicts the group’s growth potential will ultimately prevail over inflation fears.”Any time we see a tech sell-off, it’s an opportunity to buy some of the attractive names that have been sitting on investors’ wish lists, because the long-term potential for tech is just extraordinary,” the firm’s chief global market strategist told CNBC’s “Trading Nation” on Monday.Over the last five weeks, the tech-heavy Nasdaq is off more than 5% while the benchmark 10-year Treasury Note yield is up 40%.”Typically, there is a digestion period initially when yields move to a higher level,” said Hooper. “Actually, equities perform well in an environment of rising rates. So, this is an opportunity to pick up tech, because it is likely to do better even over the next 12 months.”But first, investors may need an iron stomach to get through the instability. Despite the Nasdaq’s strong performance Monday, she warns more volatility is ahead.According to Hooper, the 10-year yield, now around 1.69%, could jump to at least 2% over the next few months. She speculated that level would likely send the Nasdaq tumbling 10%.”This is likely to be a very strong economic rebound,” she said. “We’re going to see that manifested in a rise, in a significant rise in the 10-year.”The yield is up more than 85% so far this year.Hooper said she anticipates Covid-19 vaccinations and continued reopenings will unleash pent-up demand into the economy. However, she’s not ringing the alarm.”While I do expect to see an increase in inflation, I do believe it’s going to be transitory,” Hooper said. “The longer-term forces like innovation, like demographics should put downward pressure on prices.”Overall, she said, long-term investors should have broad exposure to stocks, including cyclicals.”The world is going to be going into economic recovery mode,” Hooper said. “In fact, some countries are already there, and it’s going to be a powerful recovery.”Disclaimer More

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    Jim Cramer says cyclical stocks are worth buying after Monday's dip

    In this article.IXIC.SPX.DJIURICMICATCSXNSCAGCODEFUALGMBALUVNUEUNPCNBC’s Jim Cramer said Monday that after a brief dip in cyclical stocks, investors now have a chance to trim their tech holdings and buy industrial plays.The “Mad Money” host, who made a case for building a balanced portfolio, pointed to stocks like steelmaker Nucor, Boeing, Union Pacific, General Motors, Ford and Southwest Airlines after each of their stocks fell about 2% or more.He also placed United Airlines on his radar. The stock declined 4% during the trading session.”You need to stay diversified. If you only own tech, you’re going to miss out on the great reopening stocks that were thrown away today,” he said.Financial and industrial stocks traded lower Monday, as tech shares moved higher.The blue-chip Dow Jones Industrial Average, which is outperforming this month, added 103 points to close at 32,731.20, up 0.32%. The benchmark S&P 500 advanced 0.70% to 3,940.59. The tech-heavy Nasdaq Composite, which has underperformed so far this year, rallied 1.2% to close at 13,377.54.Investors in recent weeks have rotated money out of high-growth holdings and into economic reopening trades, Cramer said.”I don’t want to totally dismiss the possibility that the rotation has run its course. Today’s move into tech was very powerful,” he said. But ultimately, Cramer chalked Monday’s tech boost up to a “countertrend rally.” “In this new environment, the banks and industrials can do no wrong, while the techs can do no right, even if they get the occasional-reprieve countertrend as they had today,” he said. “Take advantage of this temporary weakness in the industrials, scale out of some tech into strength if you need the money to buy the industrials. … I don’t think you’ll regret it.”Cramer highlighted the following names:Farm equipment stocks: Deere, AgcoRailroads: Norfolk Southern, CSX and Union PacificEngines: Caterpillar, Cummins and United RentalsDisclosure: Cramer’s charitable trust owns shares of Boeing and Ford.DisclaimerQuestions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

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    Chip shortage has Detroit automakers struggling to maintain truck production and meet orders

    In this articleVOW3-DE8TI-FFGMFFORDAn employee works on a Ford Motor Co. Super Duty Truck engine at the Ford Kentucky Truck Plant in Louisville, Kentucky, Sept. 30, 2016.Luke Sharrett | Bloomberg | Getty ImagesDetroit automakers are struggling to keep production and shipments of highly profitable pickup trucks going as interruptions in manufacturing across the world have led to a global semiconductor chip shortage that’s hitting the automotive industry.Ford Motor on Monday said it is cutting a shift at its Kentucky Truck Plant in Louisville that produces its larger F-Series pickups and full-size SUVs. It’s also temporarily shuttering a plant in Ohio that builds vans and other trucks. Both plants are expected to return to normal production in a week, according to the company.The cuts come after Ford joined General Motors on Thursday in confirming it is partially assembling some trucks to be stored until parts become available. Stellantis, formerly Fiat Chrysler, also recently confirmed it was partially assembling some of its older Ram pickups due to a lack of semiconductor chips.”We are working closely with suppliers to address potential production constraints tied to the global semiconductor shortage and working to prioritize key vehicle lines for production, making the most of our semiconductor allocation,” Ford spokeswoman Kelli Felker said in an emailed statement.For months, automakers have been prioritizing assembly of high-margin vehicles such as pickups by cutting production of cars and crossovers. The most recent actions show the difficulties facing the companies as they attempt to maintain production of those vehicles.Thus far, GM and Stellantis have been successful in keeping truck production up and running more than Ford, which previously cut shifts of its F-150 pickup.Semiconductor chips are extremely important components of new vehicles for infotainment systems, power steering and brakes, among other systems. The parts can contain several sizes and different types of chips.Consulting firm AlixPartners forecasts the shortage will cut $60.6 billion in revenue from the global automotive industry this year. GM expects the problem will reduce its free cash flow by $1.5 billion to $2 billion this year. Ford said the situation could lower its earnings by $1 billion to $2.5 billion in 2021.Automotive executives have characterized the situation as fluid. Stellantis CEO Carlos Tavares earlier this month said the shortage might not be fully resolved until next year. GM CFO Paul Jacobson last month called the shortage a “short-term” problem, saying the company hopes to make up much of its lost production due to the chip shortage in the second half of the year. Volkswagen of America CEO Scott Keogh told CNBC’s “Squawk Box” on Monday the shortage is expected to last into the fall, but “it is something we are navigating week by week.”GM has temporarily shuttered or cut production at several plants that produce cars or crossovers to prioritize production of its full-size pickups and SUVs. Plants in Kansas and Ingersoll, Ontario, are expected to remain closed until at least mid-April. They shuttered in early February.”GM continues to leverage every available semiconductor to build and ship our most popular and in-demand products, including full-size trucks and SUVs for our customers,” GM spokesman David Barnas said in an emailed statement. “We have not taken downtime or reduced shifts at any of our full-size truck plants due to the shortage.”Another GM plant in Mexico is expected to reopen in two weeks after being shuttered Feb. 8, while a plant in Michigan is expected to reopen by April after halting production a week ago. GM plants in Brazil and South Korea also have been affected by the shortage. More

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    Goldman CEO addresses junior bankers' complaints after survey goes viral

    In this articleGSDavid Solomon, the CEO of Goldman Sachs, speaks during the Bloomberg Global Business Forum in New York, September 25, 2019.Shannon Stapleton | ReutersGoldman Sachs CEO David Solomon addressed junior bankers’ complaints over heightened workloads in a message to employees, after the results from an internal survey where one employee called conditions “inhumane” went viral.”Let me say to everyone, and in particular to our analysts and associates: We recognize that people working today face a new set of challenges,” Solomon said in a voice note to Goldman employees Sunday evening. “In this world of remote work, it feels like we have to be connected 24/7,” he said. “All of us—your colleagues, your managers, our divisional leaders—we see that. We’re here to provide support and guidance. This is not easy, and we’re working hard to make it better.”The survey, conducted by a group of first-year analysts and first reported by CNBC, featured employees noting burnout from 100-hour work weeks and demanding bosses during a boom in deals fueled by special purpose acquisition companies or SPACs.SPACs raise capital in an initial public offering and use the proceeds to snap up a private company and take it public.Goldman Sachs previously instituted a policy that sought to protect weekends, where junior bankers were not expected to be in the office from Friday night to Sunday morning.Amid the allegations of the firm’s crushing workload, Solomon reiterated Goldman’s commitment to protected Saturdays, and pledged to take “further action.””We’re strengthening enforcement of the Saturday rule. We’re accelerating our efforts to hire new junior bankers across Investment Banking. … We’re also being more selective about business opportunities that we pursue, and we’re working to automate certain tasks in our business,” Solomon said, according to a transcript of the voice memo reviewed by CNBC.The survey was conducted after a group of disgruntled analysts banded together, according to people familiar with the matter.The discord originated in the bank’s technology, media and telecom team, a marquee group that has been at the center of the SPAC-fueled IPO storm, according to the people.Solomon said the bank is aiming to be a “workplace where people can share concerns freely,” before adding that higher work volume is “good news” since it’s an “opportunity to work with our clients on so many interesting things right now.””In the months ahead, there are times when we’re going to feel more stretched than others, but just remember: If we all go an extra mile for our client, even when we feel that we’re reaching our limit, it can really make a difference in our performance,” Solomon added. More