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    How Asia is reinventing its economic model

    Seven hundred years ago, maritime trade routes that stretched from the coast of Japan to the Red Sea were peppered with Arab dhows, Chinese junks and Javanese djongs, ferrying ceramics, precious metals and textiles across the region. At its centre, a trading post known as Singapura flourished. The enormous intra-Asian commercial network was disrupted only by the arrival of sailors from rising European empires and the emergence of farther-flung markets for Asian goods.image: The EconomistToday another reconfiguration is under way. The “Factory Asia” model of the late 20th century, in which the continent produced products for American and European consumers, provided an astonishing boost to the prosperity of China, Japan, South Korea and Taiwan. In 1990 just 46% of Asian trade took place within the continent, as vast quantities of goods flowed to the West. Yet by 2021 that figure had reached 58%, closer to European levels of 69% (see chart 1). More regional trade has led to an increase in capital flows, too, binding countries tighter still. A new era of Asian commerce has begun—one that will reshape the continent’s economic and political future.Its emergence began with the growth of sophisticated supply chains centred first on Japan in the 1990s, and later on China as well. Intermediate goods—components that will eventually become part of finished products—soon started to move across borders in greater numbers. They were followed by foreign direct investment (fdi). Asian investors now own 59% of the stock of fdi in their own region, excluding the financial hubs of Hong Kong and Singapore, up from 48% in 2010. In India, Indonesia, Japan, Malaysia and South Korea the share of direct investment from Asia rose by more than ten percentage points, to between 26% and 61%.After the global financial crisis of 2007-09, cross-border banking also became more Asian. Before the crisis hit, local banks accounted for around a third of the region’s overseas lending. They now account for more than half, having taken advantage of the retreat of Western financiers. China’s huge state banks led the way. Overseas loans by the Industrial and Commercial Bank of China more than doubled from 2012 to last year, rising to $203bn. Japan’s megabanks have also spread, in order to escape narrow margins at home, as have Singapore’s United Overseas Bank and Oversea-Chinese Banking Corporation.The presence of Western governments has also diminished. In a recent survey of South-East Asian researchers, businessfolk and policymakers by the iseas-Yusof Ishak Institute in Singapore, some 32% of respondents said they thought America was the most influential political power in the region. Yet just 11% of respondents called it the most influential economic power. State-led investment from China to the rest of the continent under the Belt and Road Initiative has captured attention, but official assistance and government-facilitated investment from Japan and South Korea are also growing.These trends are likely to accelerate. In the face of deteriorating relations between America and China, companies in the region that rely on Chinese factories are considering alternatives in India and South-East Asia. At the same time, few bosses expect to desert China entirely, meaning two Asian supply chains will be required, along with some doubling-up of investment. Trade deals will speed this along. A study published last year suggested that the Regional Comprehensive Economic Partnership, a broad but shallow pact signed in 2020, will increase investment in the region. By contrast, as a result of America’s abandonment of the Trans-Pacific Partnership trade deal in 2017, there is little chance of Asian exporters gaining greater access to the American market.image: The EconomistThe need to establish new supply chains means that transport and logistics are another area where intra-Asian investment will probably increase, notes Sabita Prakash of adm Capital, a private-credit firm. Matching investors searching for reliable income with projects looking for finance—the mission of such private-credit companies—has been a lucrative pastime in Asia, and is likely to become a more popular one. The size of the private-credit market in South-East Asia and India rose by around 50% between 2020 and mid-2022, to almost $80bn. Other big investors are turning to infrastructure, too. gic, Singapore’s sovereign wealth fund, which manages a portion of the country’s foreign reserves, is spending big on the building required for new supply chains.Changes to Asian savings and demography will also speed up economic integration. China, Hong Kong, Japan, Singapore, South Korea and Taiwan have climbed the ranks of overseas investors, becoming some of the world’s largest. These richer and older parts of the continent have exported striking volumes of capital into the rest of the region, with cash following recently established trade links. In 2011 richer and older countries in Asia had about $329bn, in today’s money, invested in the younger and poorer economies of Bangladesh, Cambodia, India, Indonesia, Malaysia, the Philippines and Thailand. A decade later that figure had climbed to $698bn.Silk flowsIn India and South-East Asia, “you’ve still got urbanisation happening, and capital follows those trends,” says Raghu Narain of Natixis, an investment bank. Bigger cities require not only more infrastructure investment, but also new companies better suited to urban life. Asian cross-border merger-and-acquisitions (m&a) activity is changing, according to Mr Narain, becoming more like that found in Europe and North America. Even as deals into and out of China have slowed considerably, m&a activity has become more common elsewhere. Japanese banks, facing low interest rates and a slow-growing economy at home, are ravenous for deals. Over the past year Sumitomo Mitsui Financial Group and Mitsubishi ufj Financial Group have snapped up Indonesian, Philippine and Vietnamese financial firms.image: The EconomistMeanwhile, rising Asian consumption makes local economies more attractive as markets. Whereas in Europe 70% or so of consumption goods are imported from the local region, just 44% are in Asia. This is likely to change. Of the 113m people expected next year to enter the global consumer class (spending over $12 a day in 2017 dollars, adjusted for purchasing power), some 91m will be in Asia, according to World Data Lab, a research firm. Even as Chinese income growth slows after decades of expansion, other countries will pick up the pace. The five largest economies in asean, a regional bloc—namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand—are expected to see imports grow by 5.7% a year between 2023 and 2028, the most rapid pace of any region (see chart 3).These regional trading patterns would represent a return to a more normal state of affairs. The globe-spanning export model that delivered first-world living standards to large parts of Asia, and encouraged investment from far afield, was a product of unique historical circumstances. The amount of goods that travel from the continent’s industrial cities to America is far higher than would be predicted by the relative size of their respective export and import markets, and the distance between them. Indeed, a paper by the Economic Research Institute for asean and East Asia suggests that machinery exports from North-East and South-East Asia to North America in 2019 were more than twice as high as such factors would suggest.Closer commercial links will bind the business cycles of Asian economies even more tightly together. Despite the enduring use of the dollar in cross-border transactions and Asian investors’ continuing penchant for Western-listed markets, a study by the Asian Development Bank in 2021 concluded that Asian economies are now more exposed to spillovers from economic shocks in China than in America. This has been on display in recent months, as China’s faltering trade has hit exporters in South Korea and Taiwan. More trade, not just in intermediate parts but in finished goods for consumption, means the continent’s currencies and monetary-policy decisions will increasingly move together.This will have political ramifications. America will retain influence over Asian security, but its economic importance will decline. Local businessfolk and policymakers will be more interested in and receptive to their neighbours, rather than customers and countries farther afield. With local factories still being built, consumption growing and a deep pool of savings from Asia’s increasingly elderly savers desperate for projects to finance, the high point for regional integration has yet to be reached. The new era of Asian commerce will be more locally focused and less Western-facing. So will the continent itself. ■For more expert analysis of the biggest stories in economics, finance and markets, sign up to Money Talks, our weekly subscriber-only newsletter. More

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    This account is like an ‘extra strength’ Roth IRA, advisor says. Here’s when to use it

    Health savings accounts, or HSAs, have unique tax benefits that can trump both 401(k) plans and individual retirement accounts.
    When prioritizing where to save money, many people should first get their full company 401(k) match and then max out their HSA, advisors said.
    HSAs also allow the flexibility of repaying oneself at any time in the future for out-of-pocket costs.

    Maskot | Maskot | Getty Images

    For savers, choosing how to best allocate money among a stream of account types may seem an impossible task.
    There are 401(k) plans, individual retirement accounts, 529 plans, high-yield savings accounts, taxable brokerage accounts, flexible spending accounts, health savings accounts and so on — a veritable hodgepodge of letters, numbers and tax rules.

    Each saver is different, meaning the optimal financial answer will vary from person to person.
    More from Personal Finance:Your 401(k) could have these hidden risks, experts say3 things to consider before making a Roth conversionWhy health insurance is poised to make inflation jump
    But for many people, there seems a clear path: After saving enough money to get your company’s full 401(k) match, save your next dollars in a health savings account if you have access to one, according to financial advisors.
    “Imagine a Roth IRA, but extra strength,” said Sabino Vargas, a certified financial planner and senior financial advisor at Vanguard Group.

    HSAs have unique and powerful tax benefits

    “People don’t think about the HSA as being so beautiful, but it really is,” said Carolyn McClanahan, a CFP based in Jacksonville, Florida, and a member of CNBC’s Advisor Council.

    That beauty is largely due to the outsized tax benefits of HSAs — which are meant for health-care expenses — relative to other accounts.
    HSAs offer a unique “triple tax advantage,” said Vargas. Specifically, contributions are tax-free, investment growth is tax-deferred and withdrawals are tax-free if used for eligible medical costs.
    That means a saver would generally rarely if ever pay tax on their HSA money, unlike retirement accounts such as a pre-tax or Roth IRA.

    Consider this analysis from a new Vanguard report: A $1 investment in a pre-tax or Roth IRA would yield $2.98 after 25 years. The same $1 invested in an HSA would yield $4.29 over that time. (The analysis makes various assumptions about investment returns and tax rates.)
    Because health-care costs are “inevitable” in old age, the HSA functions like “an off-label account for retirement preparation,” Vargas said.
    HSAs have other advantages, too. For example, savers can invest some or all of their balance. The accounts are also portable, meaning savers can take the money with them if they leave an employer.
    Consumers should generally save enough in cash in an HSA to cover their insurance deductible and invest the remainder, as one would with retirement funds. Anyone who can afford to do so should try to pay out of pocket for current health costs and allow HSA investments to grow, advisors say. You can save those receipts and redeem them years down the line (more on that later).

    The IRS counts qualified medical expenses as those generally eligible for the medical and dental expenses tax deduction. Those expenses are listed in IRS Publication 502. The list is relatively expansive, advisors said.
    If HSA funds are used for non-qualifying health costs, they’d lose one prong of their three-pronged tax benefits: Savers would owe income tax on a withdrawal. However, in this sense they’d still be taxed similarly to a 401(k) or IRA. (Note: HSA users younger than age 65 would owe a 20% tax penalty in addition to income tax.)
    To be sure, not everyone has access to an HSA. They are only available to people enrolled in a high-deductible health plan, which have become more prevalent but may not be offered by your employer. A high-deductible plan also may not make financial sense for certain people relative to a traditional co-pay health plan.

    The order of operations for saving money

    Luis Alvarez | Digitalvision | Getty Images

    Budgeting constraints are common for the typical person, meaning there’s only so much (if any) money left over after necessities to fund savings or pay down debt.
    Workers with access to a 401(k) plan should first prioritize saving enough to get their full employer match, advisors said.
    “We never want to leave free money on the table,” Vargas said.
    A 401(k) can also serve as an emergency fund due to hardship withdrawals allowed by most employers.
    The second priority would generally be to max out an HSA, said McClanahan, founder of Life Planning Partners. Individuals can contribute up to $3,850 and families up to $7,750 in 2023.

    Imagine a Roth IRA, but extra strength.

    Sabino Vargas
    senior financial advisor at Vanguard Group

    There are some caveats that might change this HSA calculus. For example, if a saver has credit-card debt, paying that down would take priority over funding an HSA, McClanahan said.
    Likewise for someone without an emergency fund: Work on having at least one month of living expenses in savings, then max out your HSA, then prioritize expanding emergency savings to three to six months, McClanahan said.
    If there’s money left over, ensuing saving priorities might include IRAs, 529 plans, additional 401(k) savings and taxable accounts, advisors said.

    There’s another big HSA benefit

    Aside from tax benefits, there’s another handy feature of HSAs: the ability to repay yourself at any time.
    Someone who pays out of pocket for a qualified health-care expense can withdraw that money from their HSA at any point in the future.
    Here’s an example of how it works from Vanguard: “Let’s say you pay $4,000 out of pocket today for your child’s braces. If you save the receipt, you can reimburse yourself for that expense later by withdrawing that same $4,000 — tax-free — to pay for a nonmedical expense like college tuition or retirement costs.”
    There are caveats: For one, the expense must have occurred after opening an HSA. You must save your receipts, too. McClanahan suggests keeping a spreadsheet of unreimbursed health costs in case receipts fade over time. More

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    Uninsured Americans can still get free Covid boosters — here’s how to find them

    Uninsured Americans can now get a new round of Covid vaccine boosters for free at certain locations across the country.
    The updated vaccines from Pfizer and Moderna began to roll out late last week after the Centers for Disease Control and Prevention recommended them to all Americans ages 6 months and up.
    Patients can now find locations with appointments for the new shots using the federal government’s vaccine search tool, Vaccines.gov.

    Pharmacist Aaron Sun administers new vaccine COMIRNATY® by Pfizer to Jimmy Smagula at a CVS Pharmacy in Eagle Rock, California.
    Irfan Khan | Los Angeles Times | Getty Images

    Uninsured Americans can now get the newest Covid vaccines for free at certain locations across the country, just days after U.S. regulators greenlit those shots for most people.
    The updated jabs from Pfizer and Moderna began to roll out late last week after the Centers for Disease Control and Prevention recommended them to all Americans ages 6 months and up last Tuesday. 

    Patients can now find locations with appointments for the new shots using the federal government’s search tool, Vaccines.gov. The website also includes a filter for locations that are providing Covid vaccines at no cost to those who are uninsured, including several CVS and Walgreens pharmacies.
    That filter specifically shows locations participating in the Biden administration’s Bridge Access Program, which will provide free Covid vaccines and treatments to uninsured people through December 2024.
    The Bridge Access Program aims to maintain broad access to Covid products after a big shift in how the U.S. covers them. Previously, the federal government purchased Covid vaccines directly from manufacturers at a discount to distribute to all Americans for free.
    But now that the U.S. Covid public health emergency has expired, the government is shifting shots to the commercial market. That means manufacturers will sell their new jabs directly to health-care providers at more than $120 per dose.
    The vast majority of Americans will be able to get the new vaccines at no cost through private insurance or government payers such as Medicare. Meanwhile, the Bridge Access Program is aiming to fill the gap for the estimated 30 million uninsured Americans. 

    How uninsured people can find appointments 

    Clicking on “Find Covid-19 vaccines” on Vaccines.gov will bring patients to the search tool. There, patients have to enter their five-digit zip code and select which vaccine brands they want to receive, along with the their age group. 

    Arrows pointing outwards

    Vaccines.gov displaying options to find Covid vaccines based on vaccine brand, age group and zip code in the U.S.
    Vaccines.gov

    All Pfizer and Moderna vaccines available are the newly approved versions targeting XBB.1.5. The companies’ boosters from last year, which were designed around different Covid strains, are no longer authorized for use in the U.S.
    Meanwhile, all Novavax vaccines available are still the older version, which doesn’t target XBB.1.5. The updated Novavax shot is still being reviewed by the U.S. Food and Drug Administration and could be approved within days.  
    Once patients make their selections, the site generates a list of locations and a corresponding map. Uninsured patients can check off a filter that only shows locations participating in the Bridge Access Program.
    That will likely narrow down the list to several CVS and Walgreens pharmacy branches. 

    Arrows pointing outwards

    Vaccines.gov search tool displaying pharmacies and other locations offering free vaccines to uninsured Americans through the Biden administration’s Bridge Access Program.
    Vaccines.gov

    After selecting a location, patients directly schedule the appointment with the pharmacy. For example, people can set vaccine appointments on the CVS website or CVS Pharmacy app. 
    Uninsured patients can then show up at their scheduled appointment and receive a vaccine. They are not required to show their ID cards, a CVS spokesperson told CNBC. More

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    After a year of chaos, CNN bets on new CEO Thompson to focus on long-term viability

    Mark Thompson, a former New York Times CEO, will begin as CNN’s CEO on Oct. 9.
    In his new role, Thompson will focus on turning CNN into a sustainable business over the next five years.
    CNN’s 2023 EBITDA is expected to bounce back closer to $1 billion after falling to $750 million in 2022.

    A person walks past the CNN headquarters in Atlanta, Georgia, Nov. 17, 2022.
    Brandon Bell | Getty Images

    When former CNN Chief Executive Officer Chris Licht started running the news organization last year, he was given a mission by his boss, Warner Bros. Discovery CEO David Zaslav: change the network’s programming and tone to emphasize news rather than “advocacy” journalism.
    With Licht now fired, CNN’s incoming CEO, Mark Thompson, has a new mission: everything else.

    Thompson, who starts at CNN on Oct. 9, has had preliminary discussions with Zaslav and other members of CNN’s leadership about strategic ideas and priorities, according to people familiar with the matter, who declined to speak on the record because the discussions were private. He has made no decisions about CNN’s operations and won’t until he has had a chance to meet with staffers and learn the business, said the people.
    Still, some areas of emphasis are clear. Thompson will focus on building digital subscription businesses around CNN.com and creating programming for a younger audience on CNN Max, the network’s live news service on Warner Bros. Discovery’s “Max” streaming service, said two of the people.
    Licht’s background was programming, as he launched “Morning Joe” on MSNBC and “CBS This Morning” with Charlie Rose, Norah O’Donnell and Gayle King. Zaslav hired him as a TV programmer — and ultimately fired him after Licht lost the confidence of his employees and failed to deliver ratings winners.
    Much of Licht’s short reign, which lasted a little over a year, centered around depoliticizing CNN. Zaslav and Licht agreed that CNN had gotten a reputation as left-leaning, and tried to refocus the network as a down-the-middle outlet that could appeal to both Democrats and Republicans. Licht and CNN’s leadership since his firing — a four-person team of Amy Entelis, Virginia Moseley, Eric Sherling and David Leavy — overhauled CNN’s linear shows, including debuting a new morning show and a revamped prime-time lineup.
    Licht struggled to win over CNN employees by purposely taking a hands-off approach to differentiate his style from former CNN chief Jeff Zucker, who resigned in February 2022 after failing to disclose a consensual relationship with a coworker. Zaslav felt Licht moved too slowly to make decisions and didn’t appropriately relate to CNN’s talent, according to people familiar with the matter. Licht believed he couldn’t be his authentic self given Zaslav’s mandate to be a no-nonsense leader who had to reform CNN’s image and cut costs, the people said. Licht had to lay off hundreds of employees as part of a broader Warner Bros. Discovery head count reduction.

    Mark Thompson, CEO of CNN

    While Licht largely focused on linear programming, Thompson will concentrate on making CNN a sustainable business for the next five years — a timeline he’s already discussed with some members of CNN leadership, according to people familiar with the matter. The work to change CNN’s reputation is largely complete, according to people familiar with Warner Bros. Discovery executives’ thinking.
    How to cover Donald Trump, an issue that defined Licht’s tenure, probably isn’t in Thompson’s top five priorities as he starts the job, according to a person familiar with the matter. Existing CNN executives believe they already have the infrastructure in place to appropriately handle the former president and current Republican primary candidate as the 2024 election ramps up, the person said.
    Entelis, Moseley, Sherling and Leavy all plan to stay at CNN as Thompson takes over as CEO, according to people familiar with the matter. All will report to Thompson.
    A CNN spokesperson declined to comment on speculation about Thompson’s eventual moves and strategy.

    Digital strategy

    Thompson’s last job was CEO of The New York Times, a position he held from 2012 to 2020. He grew the Times’ subscription digital business, which launched in 2011, from less than 1 million subscribers to about 7 million before he left the company in September 2020. During his time as the newspaper’s CEO, shares rose from $9 to about $43 — a gain of more than 375%.
    CNN hasn’t had a clear digital strategy since Zaslav and Licht decided to kill off CNN+ after just a month, in 2022. CNN+, at the time, was a little-watched streaming service that launched without much content. Former CNN chief Jeff Zucker and then-CNN digital chief Andrew Morse hoped it would eventually become CNN’s version of The New York Times — a subscription news product that could feature more than just video.
    Thompson will still have to preside over CNN’s linear network, an entity that has declined along with the erosion of the pay-TV cable bundle. But Zaslav is counting on him to use CNN.com and its 149 million monthly unique visitors as a funnel to build digital subscription businesses, said people familiar with the matter.
    One idea being discussed is to build several subscription products on specific topics within CNN.com, which would remain without a paywall, said the people. For customers who want all access, CNN could offer a bundle for a discount. Paying a monthly fee could unlock on-demand or live CNN programming on certain subjects, give users access to particular pieces of in-depth or focused journalism and provide other benefits.
    Thompson may also explore ways to integrate Bleacher Report with CNN.com, just as The New York Times has done with The Athletic, the online sports media company it acquired last year for $550 million, according to a person familiar with the matter.

    Programming CNN Max

    Before joining The New York Times, Thompson was director-general — a combination of chief executive and editor-in-chief — of the British Broadcasting Corporation. He’ll have a chance to develop new shows at CNN Max, a tab in Warner Bros. Discovery’s larger Max streaming service.
    With CNN Max, Thompson will try to program for a younger audience. CNN’s linear network largely appeals to older, 60-and-up adults who still subscribe to traditional pay TV.
    Thompson will have some runway to invest in CNN Max. CNN’s EBITDA — or earnings before interest, taxes, depreciation, and amortization — is expected to be closer to $1 billion in 2023 after dipping to $750 million in 2022 when it had about $200 million in losses tied to CNN+, according to people familiar with the matter. Attention from the U.S. presidential election should also improve advertising revenue in 2024.
    To keep CNN relevant, Thompson will need to figure out news programming that millennials and younger viewers will watch. Former CNN leadership feared news content would get swallowed up by a larger streaming service, believing it would be difficult to persuade viewers to eschew entertainment programming when both are on the same platform. That led Zucker and former WarnerMedia CEO Jason Kilar to push for CNN+, a standalone streaming service.
    CNN has already begun considering ideas to solve that problem, including potentially alerting Max viewers who are watching on-demand entertainment to CNN breaking news.
    “This is a game that is still very much to be played,” JB Perrette, president and CEO of Warner Bros. Discovery’s streaming operations, said of the streaming-news business last month in an interview with Variety. “Nobody has figured it out yet.”
    That will be Thompson’s job.
    WATCH: WBD might be a better streaming bet than Disney, says Gabelli’s Kevin Dreyer More

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    Disney plans to nearly double its investment in parks and cruises business

    Disney said Tuesday it would nearly double its planned investment to roughly $60 billion in its parks business.
    Theme parks have been a relative bright spot while the company struggles to make a profit on streaming.
    Still, domestic parks, particularly Walt Disney World in Florida, have seen a slowdown in attendance and hotel room purchases.

    Disney World celebrated its 50th anniversary in April 2022.
    Aaronp | Bauer-Griffin | GC Images | Getty Images

    Disney said Tuesday it will nearly double its planned investment in the company’s parks and cruises business.
    The company said in a securities filing it will nearly double its planned investment to roughly $60 billion over the course of 10 years.

    While the company is grappling with the changing media and entertainment landscape – and trying to make its streaming business profitable while considering sales of its traditional TV networks – the theme parks, experiences and products division has been a bright spot.
    Still, the domestic parks, particularly Walt Disney World in Florida, has seen a slowdown in attendance and hotel room purchases. Instead, the segment’s strength has come from its international parks. During the third quarter the division saw a 13% increase in revenue to $8.3 billion.
    The company will unveil more details about the investment at its investor day Tuesday.
    Disney highlighted the historical results of the parks and experiences business since 2017 on the back of heightened investment. Disney’s parks, like its peers, suffered during the lockdowns of the pandemic.
    Its peers, including Comcast’s Universal parks in Florida, experienced a similar slowdown.

    Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.
    This is breaking news. Please check back for updates. More

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    UAW will strike at additional U.S. auto plants if ‘serious progress’ isn’t made by noon Friday

    The UAW union will announce additional strikes at GM, Ford and Stellantis plants if the sides don’t make “serious progress” in negotiations by noon ET Friday, according to UAW President Shawn Fain.
    The timing of the additional plants would come just over a week after the union announced targeted strikes at assembly plants of about 12,700 autoworkers.
    Unlike the original contract deadline, Fain did not say tentative agreements needed to be reached at the companies to avoid additional strikes, just “serious progress.”

    Blue Cross Blue Shield employees show their support to members of the United Auto Workers (UAW) union as they march through the streets of downtown Detroit following a rally on the first day of the UAW strike in Detroit, Michigan, on September 15, 2023. 
    Matthew Hatcher | AFP | Getty Images

    DETROIT – The United Auto Workers union will announce additional strikes at General Motors, Ford Motor and Stellantis plants if the sides don’t make “serious progress” in negotiations by noon ET Friday, UAW President Shawn Fain announced Monday night.
    The timing of the additional plants would come just over a week after the union announced targeted strikes at assembly plants for each of the Big Three Detroit automakers, sending about 12,700 workers to picket lines.

    “Autoworkers have waited long enough to make things right at the Big Three. We’re not waiting around, and we’re not messing around. So, noon on Friday, Sept. 22, is a new deadline,” Fain said in a video released online by the union.
    Fain previously said the union planned to increase the work stoppages, based on how negotiations with the companies were going. The announcement follows the union meeting with each of the automakers since the targeted strikes began Friday.

    Unlike the original contract deadlines, Fain did not say tentative agreements needed to be reached at the companies to avoid additional strikes, just “serious progress.” A union spokesman did not immediately respond for comment regarding what defines that aside from a tentative deal.
    Currently on strike are workers from GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio.
    The union selected the plants as part of targeted strike plans, as Fain and UAW leaders unconventionally negotiate with all three automakers at once. It’s calling the work stoppages “stand-up strikes,” a nod to historic “sit-down” strikes by the UAW in the 1930s.

    “The ‘Stand Up Strike’ is a new approach to striking. Instead of striking all plants all at once, select locals have been called on to ‘Stand Up’ and walk out on strike. If the automakers fail to make progress in negotiations and bargain in good faith going forward, more locals will be called on to Stand Up and join the strike,” Fain said Monday.
    Targeted strikes typically focus on key plants that can then cause other plants to cease production due to a lack of parts. They are not unprecedented, but the way the union is conducting them is not typical.
    GM and Ford released general statements on the ongoing talks, but both declined to comment directly on the union-imposed deadline Monday night. Stellantis referred to a statement released Monday afternoon about discussions with the union earlier in the day being “constructive and focused on where we can find common ground to reach an agreement.”
    The additional strike plans are despite automakers making record offers to the union that include roughly 20% hourly wage increases, thousands of dollars in bonuses, retention of the union’s platinum health care and other sweetened benefits.
    Key demands from the union have included 40% hourly pay increases, a reduced 32-hour workweek, a shift back to traditional pensions, the elimination of compensation tiers and a restoration of cost-of-living adjustments, among other items. More

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    Rocket Lab stock drops 20% after first satellite launch failure in over two years

    Rocket Lab stock fell in premarket trading after the company suffered its first launch failure in over two years in the early hours of Tuesday morning.
    Its uncrewed 41st Electron rocket launch failed about 2 minutes and 30 seconds after lifting off from New Zealand.
    The rocket was carrying the Acadia 2 satellite for San Francisco-based Capella Space.

    The company’s Electron rocket carrying the CAPSTONE mission lifts off from New Zealand on June 28, 2022.
    Rocket Lab

    Rocket Lab stock fell in premarket trading after the company suffered its first launch failure in over two years early Tuesday morning.
    The company confirmed its uncrewed 41st Electron rocket launch – lifting off from New Zealand and carrying the Acadia 2 satellite for San Francisco-based Capella Space – failed about 2 minutes and 30 seconds into the flight. Rocket Lab said it has begun working with the Federal Aviation Administration on investigating the root cause of the issue, which appeared to happen around the time the rocket’s first and second stages separated.

    “We are deeply sorry to our partners Capella Space for the loss of the mission,” Rocket Lab said in a statement.
    Shares of Rocket Lab fell as much as 26% in premarket trading from its previous close at $5.04. The stock was up 34% for the year as of Monday’s close.

    Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

    The company’s 42nd Electron mission was set to launch before the end of the third quarter. But Rocket Lab warned it will be postponed while it resolves the launch failure. As a result, Rocket Lab expects to issue revised third quarter revenue guidance. In its second quarter report, Rocket Lab forecast about $30 million of launch services revenue – the minority of its overall forecast revenue between $73 million and $77 million, as the bulk was expected to come from its space systems unit.
    Rocket Lab’s failure comes after the company built up a steady rhythm of successful launches, becoming the second-most active U.S. rocket company behind Elon Musk’s SpaceX. The Electron rocket hadn’t suffered a mission failure since May 2021, stringing together 19 successful launches in 28 months since then.
    A rocket can remain grounded for an uncertain amount of time, with the length of investigations depending upon the severity and complexity of the issue. After its previous launch failure, Rocket Lab launched its next Electron mission 70 days later. More

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    in Finance

    Stocks making the biggest moves premarket: Carnival, Deere, Super Micro Computer and more

    The Carnival Miracle cruise ship operated by Carnival Cruise Line is docked at Pier 27 in San Francisco, Sept. 30, 2022.
    Justin Sullivan | Getty Images

    Check out the companies making headlines before the bell:
    Carnival, Royal Caribbean— The cruise lines both gained about 2% after being upgraded by Truist. The Wall Street firm moved Royal Caribbean to buy from hold and Carnival to hold from sell, citing forward-looking trends for 2024 and 2025 that look “exceptionally strong.” Truist maintained its hold rating on Norwegian Cruise Lines, which was up more than 1% in premarket trading.

    Deere, CNH Industrial — The two stocks slid in the premarket after Evercore ISI downgraded each to in-line from outperform, citing agricultural production cuts. Deere fell 1.4%, CNH declined 1.2%.
    Starbucks — Shares fell 1.2% after TD Cowen downgraded the coffee giant over the “worrisome” macro backdrop in China. The firm believes slower consumer spending in China could hit share growth and affect Starbucks’ multiple.
    CVS Health — The pharma stock rose less than 1% after Evercore ISI upgraded CVS Health Tuesday to outperform from in-line, saying the stock is currently attractively valued.
    Dell Technologies — Shares rose more than 1.2% after Daiwa Capital Markets upgraded the computer stock to outperform from market perform. The Wall Street firm hiked its price target to $80 per share from $50, implying roughly 16% upside from Monday’s close.
    Super Micro Computer — The information technology stock added more than 2% after Barclays initiated coverage of Super Micro Computer on Tuesday with an overweight rating. The firm’s $327 price target represents nearly 34% upside from Monday’s close.

    Planet Fitness — The recent CEO shakeup at the gym franchise was a contributing factor in JPMorgan downgrading the stock to neutral from overweight. Along with the downgrade, the firm cut its price target on Planet Fitness to $52 from $70, a move that still implies 7% upside. Shares fell about 2% premarket.
    Rocket Lab — The aerospace stock plunged 22% after Rocket Lab’s first launch failure in more than two years Tuesday morning. Shares closed Monday at $5.04.
    — CNBC’s Michelle Fox and Hakyung Kim contributed reporting More