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    Former Starbucks CEO Howard Schultz steps down from coffee chain’s board

    Howard Schultz is leaving Starbucks’ board.
    Schultz, who stepped down as CEO in March, now holds the title of chairman emeritus.
    As Schultz departs the board, former Alibaba executive Wei Zhang will take his seat.

    Former Starbucks CEO Howard Schultz speaks at the Annual Meeting of Shareholders in Seattle, March 22, 2017.
    Jason Redmond | AFP | Getty Images

    Former Starbucks CEO Howard Schultz is stepping down from the coffee chain’s board, the company said Wednesday.
    “I look forward to supporting this next generation of leaders to steward Starbucks into the future as a customer, supporter and advocate in my role as chairman emeritus,” Schultz said in a statement.

    The company said the change was part of a planned transition, but Schultz, 70, didn’t provide a reason for his exit.
    His third stint as Starbucks’ chief executive ended in March, as Laxman Narasimhan stepped into the role. Schultz spent 11 months back in the top job. During that time, he crafted a strategy to modernize the company’s cafes, improve relations with its baristas and fuel further sales growth. He also spearheaded the launch of Starbucks Oleato, a line of olive oil-infused beverages.
    But some of Schultz’s actions created new enemies. He took a more aggressive approach against baristas unionizing than Kevin Johnson, who took over as CEO after Schultz’s second stint. Starbucks Workers United and allies such as Sen. Bernie Sanders made billionaire Schultz the face of Starbucks’ anti-union stance. It culminated in Schultz being grilled in front of a Senate committee over the company’s alleged union busting shortly after he stepped down as chief executive.
    Prior to his departure, Schultz told CNBC that he has no intention of taking the reins as CEO again.
    Schultz previously stepped down from Starbucks’ board in June 2018 to prepare for a potential presidential run, before deciding against a bid. He had already handed off the CEO role to Johnson in 2017.

    As Schultz departs the board, Wei Zhang will take his seat. Zhang served as a senior advisor to Alibaba and president of Alibaba Pictures Group.
    Her experience with the Chinese e-commerce giant could aid Starbucks as it tries to help its Chinese business bounce back. China is Starbucks’ second-largest market, and some trends there, such as mobile ordering, have inspired changes to the company’s U.S. business.
    Zhang also previously held roles at News Corp China, CNBC China, Bain and General Electric. She currently serves on Ralph Lauren’s board.
    She is the third woman on Starbucks’ nine-person board, which includes chair Mellody Hobson and Land O’Lakes CEO Beth Ford.
    Disclosure: CNBC China is an affiliate of CNBC. More

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    Marvel visual effects artists unanimously vote to unionize as Hollywood strikes rage on

    Marvel Studios VFX artists have unanimously voted to unionize in response to tight deadlines and heavy workloads.
    This marks the first time a unit of solely VFX workers have unionized with the International Alliance of Theatrical Stage Employees.
    The push for unionization comes at a time when Hollywood is dealing with dual labor strikes from its writers and actors.

    Mark Ruffalo as The Hulk in “Avengers: Endgame.”
    Disney | Marvel

    Hollywood, already gripped by two strikes, has some new union members.
    Marvel Studios’ visual effects workers unanimously voted in favor of unionizing with the International Alliance of Theatrical Stage Employees, IATSE announced Wednesday. This marks the first time a unit of solely VFX workers have unionized with the group.

    VFX artists have faced increased workloads and tight deadlines to complete some of the industry’s biggest budget franchise films in recent years, leading to tension between these workers and studios.
    In particular, Disney, which owns Marvel Studios, required immense special effects work in the last three years to complete a massive slate of superhero films for the big screen and television shows for its streaming service Disney+. The Marvel Studios VFX crew has more than 50 workers, according to IATSE.
    “I grew up dreaming of working on Marvel films, so when I started my first job at Marvel, I felt like I couldn’t complain about the unpaid overtime, the lack of meal breaks, and the incredible pressure put on VFX teams to meet deadlines because I was just supposed to be grateful to be here at all,” Sarah Kazuko Chow, VFX coordinator at Marvel, said in a statement.
    Representatives for Disney did not immediately respond to CNBC’s request for comment.
    The push for unionization comes at a time when Hollywood is dealing with dual labor strikes from its writers and actors.

    Like those striking, Marvel’s VFX artists are interested in a labor contract that offers fair pay, health-care benefits and “a safe and sustainable working environment,” said Mark Patch, VFX organizer for IATSE.
    They aren’t the only VFX team looking to unionize. In late August, Walt Disney Pictures’ VFX staffers filed with the National Labor Relations Board to host an election to unionize.
    Now that the vote is official, Marvel VFX workers must engage in collective bargaining negotiations with Marvel Studios executives in order to draft a contract. However, with the studio already locked in talks with Hollywood’s scribes and yet to address contract concerns with striking actors, it could take time for the VFX artists to get to the table.
    “Today’s count demonstrates the unprecedented demand for unionization across new sectors of the entertainment industry is very real,” Matthew Loeb, president of IATSE International, said in a statement.
    IATSE represents 170,000 industry workers, from studio mechanics to wardrobe and makeup artists. In late 2021, the union faced off against the Alliance of Motion Picture and Television Producers to negotiate a new contract.
    The union authorized a strike but was able to come to terms with the studios. Its three-year contract included clauses that enforced a 10-hour turnaround between shifts, 54 hours of rest over the weekend, increased health-care and pension plan funding and a 3% rate increase for every year for the duration of the contract. Stiff penalties were also put in place if these break periods were not adhered to.
    Loeb told Marvel’s VFX artists that it has the backing of IATSE, telling those who voted to unionize, “Your fight is our fight.”
    Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is a member of the Alliance of Motion Picture and Television Producers. The AMPTP is currently negotiating with striking writers and actors in Hollywood. More

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    Why diamonds are losing their allure

    The appeal of a diamond, for a ring on finger or to string on a necklace, rests on how sparkly it is. Its precise value is determined by how well the stone is cut, its colour, its size (also called its “carat”) and whether it contains flaws. The clearer, heavier, closer to colourless and more perfectly cut the rock, the better.The appeal of a diamond for an investor is that, in addition to being nice to look at, it has historically offered a steady return on investment. Given the opacity of the market, and the broad variety of gems that are available, long-run price data are scarce. But a paper by Luc Renneboog of Tilburg University, which was published in 2015, analysed thousands of auctions each year, finding that the average return between 1999 and 2012 rivalled those of stocks and property. Holders of diamonds would have earned a handsome 8% or so a year.Recently, though, these steady returns have given way to enormous volatility. De Beers, a consortium that has long monopolised the supply of diamonds, has reduced the price of two-to-four carat uncut stones—a popular category because they can be made into one-to-two carat engagement rings—by 40%, according to Bloomberg, a news service. On September 13th the company announced that it would re-run its iconic “a diamond is forever” advertising campaign in an attempt to boost demand.Stable returns in the past were partly brought about by steady demand. Just as with the investment case for gold, another rare and precious commodity, the logic for holding diamonds tends to be strongest during periods of economic uncertainty. At the same time, the main use of diamonds is in jewellery, which means that prices have tended to do well during periods of prosperity, too.But the most important factor was monopolistic supply. For more than a century De Beers managed to dominate the production of gems. This market structure facilitated steady price increases in two ways, as Mr Renneboog has noted. First, by stockpiling supplies De Beers created scarcity. Second, the firm curbed speculation, and the volatility it brings. Although De Beers controlled some 80% of the global supply of diamonds in the 1980s, since then its share has been eaten into by competitors, which include Alrosa, a Russian rival. The company now produces just a third of global supply.Another problem is emerging from laboratories. They are producing artificial gems, which are made by applying pressure to carbon, rather than digging stones from the ground, and are identical to the naked eye. Such stones have been available since the 1980s, but even as recently as 2018 made up a tiny fraction of the market, at just a few percentage points. In the years since more lab-grown jewels have entered the market—and their market share has risen to around a tenth.De Beers may have accidentally hastened this transition. The company began to sell lab-grown diamonds at rock-bottom prices in 2018, when such stones fetched about 80% of the price of mined ones. The goal was to differentiate between the two types of gems, in order to diminish the appeal of lab-grown stones. The Clear Cut, a New York-based purveyor of engagement rings, has adopted guerrilla marketing tactics to make the same point. It offers customers who buy a ring worth $10,000 or more a free lab-grown alternative, which can be used as a “travel ring” when visiting dubious places. Many lab-grown stones now fetch just 20-30% of the price of similar mined stones.De Beers argues that, as the supply of lab-grown gems accelerates, the price gap between the two types of stone will continue to widen, making the newcomers unappealing for engagements. Yet if recent price movements are anything to go by, the tactic appears likely to backfire—after all, mined prices are plunging in the wake of lab-grown ones.Admittedly, this may not be entirely the result of a structural shift in the market. American couples date for about three years before getting engaged, and thanks to covid-19 very few people were out and about meeting potential husbands or wives in 2020. An unusually small number of people are probably getting engaged this year.Still, this is the sort of fluctuation an all-powerful diamond cartel would have been able to smooth out by reducing supply. Slashing prices instead is a clear indication of diminished market power. That is good news for those looking to pop the question or acquire a new trinket. It is less appealing for those considering investing in the gems. ■ More

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    SpaceX no longer taking losses to produce Starlink satellite antennas, a key step to improving profitability

    SpaceX is no longer absorbing the cost of the Starlink antennas it sells with its satellite internet service, a company executive said Wednesday.
    “We were subsidizing terminals, but we’ve been iterating on our terminal production so much that we’re no longer subsidizing terminals, which is a good place to be,” Jonathan Hofeller, SpaceX vice president of Starlink and commercial sales, said during a panel at the World Satellite Business Week conference.
    SpaceX sells consumer Starlink antennas, also known as user terminals, for $599 each.

    A Starlink satellite terminal, also known as a dish, setup in front of an RV.

    PARIS — Elon Musk’s SpaceX is no longer absorbing the cost of the Starlink antennas it sells with its satellite internet service, a company executive said Wednesday, a key step to the company improving its profitability.
    “We were subsidizing terminals, but we’ve been iterating on our terminal production so much that we’re no longer subsidizing terminals, which is a good place to be,” Jonathan Hofeller, SpaceX vice president of Starlink and commercial sales, said during a panel at the World Satellite Business Week conference.

    SpaceX sells consumer Starlink antennas, also known as user terminals, for $599 each. For more demanding Starlink customers — such as mobile, maritime or aviation users — SpaceX sells antennas with its service in a range between $2,500 and $150,000 each.

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

    When SpaceX first began selling its Starlink service, company leadership said the terminals cost about $3,000 each to manufacture. The company improved that to about $1,300 per terminal by early 2021. Hofeller’s comments Wednesday indicate the terminals now cost less than $600 each to make, mass production savings that Hofeller credited as “one of our keys to success.”

    SpaceX vice president of Starlink and commercial sales Jonathan Hofeller, second from left, speaks at the World Satellite Business Week conference in Paris, Sept. 13, 2023.
    Michael Sheetz | CNBC

    SpaceX President and Chief Operating Officer Gwynne Shotwell said earlier this year that Starlink “had a cash flow positive quarter” in 2022. The overall company reportedly turned a profit in the first quarter of 2023.
    Although it was founded more than two decades ago and valued at about $150 billion, SpaceX’s businesses of rockets, spacecraft and satellites are capital intensive. In 2021, Musk said Starlink was going through “a deep chasm of negative cash flow” before it could become “financially viable.”
    The company last provided an update on its global Starlink user base in May, when it said it had about 1.5 million customers. Hofeller did not specify what that total is now but said Starlink is “well over” that 1.5 million mark. The figure includes both consumer and enterprise customers around the world, which Hofeller said the service aims to “grow to hopefully millions and millions.”

    To date, SpaceX has launched over 5,000 Starlink satellites and counting.
    “We’re going strong, we’re launching twice a week now — which is insane,” Hofeller said.
    Earlier on Wednesday, European satellite operator SES announced a partnership with Starlink to jointly sell their communications services to cruise ships, a market both companies currently serve. SES CEO Ruy Pinto said the arrangement is one that the companies expect to build upon with later market offerings. More

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    Has the European Central Bank become too powerful?

    “Nothing is possible without people. Nothing is lasting without institutions,” noted Jean Monnet, one of the European Union’s founding fathers. The growth of the European Central Bank (ecb) from humble beginnings, as the guardian of a nascent currency, to one of the great powers in European politics might have surprised even the master technocrat himself. Having recently turned 25, the institution is so mighty that it now faces a tough question. Does it know when to stop?The ecb is unique in that it has no political overlord or fiscal counterpart. Its independence is enshrined by treaty, the closest the eu has to a constitution. Its mandate puts price stability front and centre. In a second part policymakers are instructed “to support the general economic policies of the eu”, which include growth and employment, in a manner similar to the dual mandate of the Federal Reserve, but may also be stretched to include climate policies or “de-risking” relations with China.Throughout the ecb’s history, its officials have assumed extra responsibilities. In many cases they were forced to do so. In the midst of market turmoil during the sovereign-debt crisis of the early 2010s, Mario Draghi, then the bank’s president, calmed investors by promising to do “whatever it takes” to protect the euro. During covid-19 and under Christine Lagarde, the current president, the ECB bought €1.7trn ($2trn) in public debts to arrest doubts about governments’ liquidity. She followed this up by announcing another bond-buying programme last year, when inflation threatened to send interest rates on Italian bonds soaring.In all but name, then, the ecb has become the lender of last resort to euro-zone governments. The bank is at pains to stress that its bond-buying programmes come with strings attached. Indeed, in order to sidestep the treaty’s ban on financing governments, officials must combine a monetary-policy justification with adherence to the eu’s fiscal rules and the need for sustainable debt. As such, “ecb lawyers have to be among the most innovative in the world,” says Sander Tordoir of the Centre for European Reform, a think-tank. Rather than governments leaning on the central bank to help out, as can happen elsewhere in a crisis, the ecb enforces “macroeconomic reasonability”, as Francesco Papadia, a former ecb official, puts it.Geopolitics are now pushing the ecb into a still more sensitive role. Take swap lines. The bank decides whether to set them up. If European banks urgently need dollars, for example, the ecb could swap euros for the currency with the Fed. Of the two large non-euro eu members, Poland benefits from a limited swap line with the ecb; Hungary does not. “Whether Ukraine, for example, gets [one] should be a joint decision with finance ministers, and not the ecb’s alone,” argues Shahin Vallée of the German Council on Foreign Relations, a think-tank. Similarly, the ECB is a powerful voice in a debate about what should happen to Russia’s frozen central-bank assets, preferring to leave them untouched. It also objects, on legal grounds, to attempts to rechannel some imf special-drawing rights, which can be used as foreign-currency reserves, to development banks.Yet the ecb is not just responding to events. This can be seen in its promotion of the euro—something for which its mandate does not explicitly call. As Ms Lagarde recently told The Economist: “If there is more trade in euros, we need to provide the liquidity supporting that trade. An international euro is a force for stability.” One way in which it is planning to boost the euro is through a digital currency, which may help facilitate international transactions. It has gone further than the Fed, which is nowhere near to issuing one and is more worried about political approval.Climate change is another area where the ecb is playing a role. As the bloc’s main banking supervisor, it must assess emerging risks. “It is no longer controversial that the climate crisis translates into financial risk, and is thus squarely within our mandate,” says Frank Elderson of the ecb’s executive board. The results of an ecb climate stress test, published on September 6th, show that a faster energy transition will lower banks’ credit risks in the medium term. Thus green thinking will increasingly inform the ecb’s risk management, bond-buying and collateral policies.Ms Lagarde argues more could be within the bank’s mandate: “All European bodies, from the European Parliament to member states are committed to the Paris Agreement’s climate targets.” One policy being debated is a green version of the ecb’s targeted-lending operations. These have been employed so far as monetary-policy tools, encouraging financial institutions to lend to companies and households. Taking green considerations into account when handing out cash would mean the bank conducts outright climate policy, which would go beyond anything the Fed would consider doing.The danger in all this is that the ecb does too much. There is no desire among national governments to put the bank on a leash. Indeed, it may offer a way to achieve things that politicians cannot, for fear of public backlash. Perhaps aware of its political power, countries are nominating politicians to the ecb’s governing council. The president herself was previously France’s finance minister; Luis de Guindos, the bank’s vice-president, was Spain’s. Yet the more the ecb ventures into controversial areas, the greater the risk its legitimacy is eroded. For the moment, both politicians and central bankers are happy. Will citizens one day start to object? ■ More

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    Stocks making the biggest moves midday: Citigroup, Adobe, Corteva and more

    David Wadhwani, senior vice president of digital media for Adobe, speaks during the launch of Adobe Creative Cloud and CS6 in San Francisco, April 23, 2012.
    David Paul Morris | Bloomberg | Getty Images

    Check out the companies making headlines in midday trading.
    Redwire — The space infrastructure stock soared 5.6% Wednesday after Roth MKM initiated research coverage of the company with a buy rating. The firm said Redwire, which went public via a special purpose acquisition company in 2021, has “several billions worth of pipeline revenue opportunity.”

    Corteva — The seed and crop protection solutions provider added 0.7% after launching Reklemel, a new product that will help protect a variety of food and row crops from plant-parasitic nematode damage, according to a Wednesday press release from the company.
    Moderna — Shares of the vaccine maker rose 3.2%. The action comes a day after the Centers for Disease Control and Prevention cleared updated Covid vaccines from Pfizer and Moderna for Americans ages 6 months and up, following approvals from the U.S. Food and Drug Administration. The mRNA vaccines are designed to target a relatively new omicron subvariant called XBB.1.5.
    Citigroup — Shares advanced nearly 1.7% after the bank’s CEO Jane Fraser announced a corporate reorganization Wednesday amid a stock slump. The move will divide Citigroup into five main divisions, ridding the company of its two main divisions that catered to consumers and large institutional clients.
    Airline stocks — American Airlines tumbled 5.7% after it slashed its third-quarter profit estimates due to higher fuel prices and costs from a new pilot labor agreement. Low-cost carrier Spirit Airlines fell about 6.3% after it also cut its summer profit estimates due to higher costs.
    Xpeng, Nio — U.S.-based shares of Chinese electric vehicle makers Xpeng and Nio dropped 3.1% and 4.7%, respectively, after the European Commission said it is launching an investigation into subsidies given to electric vehicle manufacturers in China.

    Adobe — Stock in the software company added about 2.1% in midday trading ahead of quarterly results Thursday. Analysts polled by FactSet forecast an adjusted $3.98 per share on $4.866 billion in revenue. Traders have also signaled bullish sentiment toward the stock ahead of earnings, due to the continued excitement over artificial intelligence.
    Ford Motor, General Motors — The auto stocks advanced after UBS said both were buys. Ford added 1.5%, while General Motors climbed 0.6%. The firm noted that Ford’s pro business, its commercial segment, should show stronger-than-expected resiliency. 
    — CNBC’s Alex Harring, Hakyung Kim, Brian Evans, Samantha Subin and Tanaya Macheel contributed reporting. More

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    Here’s every major reveal from the Detroit Auto Show

    This year’s Detroit Auto Show was overshadowed by tense negotiations between the Detroit automakers and the UAW, which could strike as soon as Friday.
    General Motors had the only truly all-new model at the show, the redesigned 2024 GMC Acadia.
    But both Ford and Stellantis had significant updates to share.

    DETROIT — Even as the ongoing negotiations between the three Detroit automakers and the United Auto Workers labor union overshadowed all else in the industry, some companies used this year’s edition of the Detroit Auto Show to show off new and revamped models on Wednesday.
    The discussions around a new four-year contract have been tense, as the union threatens costly strikes if the sides do not reach an agreement by 11:59 p.m. ET on Thursday night, when the current contract expires.

    Given that backdrop and challenges auto shows have faced since the coronavirus pandemic, it’s not surprising that most automakers chose not to reveal their newest models — or even attend the show at all.  But there was still one all-new model, a redesign of GMC’s popular Acadia crossover, and significant updates to a few others unveiled at the event, properly called the North American International Auto Show
    Here’s what CNBC saw at the show.
    All-new: 2024 GMC Acadia
    The show’s one big new model reveal came as General Motors unveiled the completely redesigned 2024 GMC Acadia on Wednesday morning. The all-new Acadia remains a midsize crossover, but it’s larger than the outgoing model, with a brawny new look that’s more in line with its GMC brand siblings such as the smaller Terrain crossover and Sierra pickup truck.

    2024 GMC Acadia

    The new Acadia will be powered exclusively by a new 2.5-liter turbocharged four-cylinder engine that delivers 328 horsepower and 326 foot-pounds of torque – more than the outgoing model. Inside, there’s a standard 15-inch center control touchscreen and a host of new safety and convenience technologies, including GM’s hands-free Super Cruise highway driver-assistance system.
    Making the Acadia larger is correcting what GM executives have come to see as a mistake made with the outgoing model. The company shrunk the size of that vehicle, to the dismay of current owners and dealers, according to GMC head Duncan Aldred.

    “It was a pretty easy decision for us really to go bigger because we know that customers want it, they value that space, we think it will lead to more success,” he said during a media event.

    2024 GMC Acadia

    Production of the 2024 Acadia is expected to begin early next year at a plant in mid-Michigan, with vehicles slated to hit dealer showrooms during the first quarter. GM has announced a third shift for the plant to produce the Acadia and its Chevrolet Traverse and Buick Enclave sibling crossovers.
    The Acadia is a big seller for the upscale GMC brand, with just over 40,000 sold in the U.S. in the first half of 2023. Among the brand’s SUVs, only the big truck-based Yukon sells more.
    A big refresh: 2024 Ford F-150
    Ford Motor didn’t do much at the show Wednesday, but it wasn’t left out. The company revealed its refreshed 2024 F-150 pickup truck lineup Tuesday night to a large crowd in downtown Detroit, not far from the show floor.
    The revamped truck, a huge seller that is crucial to Ford’s profits, features updated engines and new interior and exterior designs. The latter includes a new tailgate that allows customers to access the vehicle’s bed like a standard door as well as a traditional drop-down tailgate.

    2024 Ford F-150 PowerBoost Platinum hybrid

    The big news of the night was that the company plans to double U.S. production of a hybrid version of the F-150 to roughly 20% of trucks produced for the 2024 model-year.
    The hybrid plans follow Ford CEO Jim Farley saying in late July that the Detroit automaker would quadruple the company’s production of gas-electric hybrids as it continues to increase EV production — but at a slower pace than previously announced.

    2024 Ford F-150 Powerboost Platinum hybrid

    “I certainly think that hybrid, our PowerBoost hybrid, help folks transition into full electric,” John Emmert, Ford truck general manager, told CNBC in an interview. “Hybrid is a step toward electrification, and for some people right now that electrification isn’t the best solution for them.”
    A new face: 2025 Cadillac CT5
    General Motors also revealed a refreshed version of its Cadillac CT5 sedan at the show on Wednesday morning. The CT5, the larger of Cadillac’s two remaining internal-combustion sedans, will get a restyled front grill and a refreshed interior, including a big new touchscreen, for the 2025 model year.

    Cadillac CT5
    General Motors

    The refreshed CT5’s dash adopts the large 33-inch touchscreen seen in other Cadillacs, giving drivers extensive customization options including Google-powered navigation and entertainment services. Outside, its new front end includes a bolder grille, inspired by recent Cadillac show vehicles, and redesigned lighting.
    “The new advanced technologies enhance the driver’s personal connection in a sedan already renowned for its driving spirit, comfort and technology,” said Alex MacDonald, the CT5’s chief engineer.

    2025 Cadillac CT5
    General Motors

    The rear-wheel-drive CT5 is well-regarded by critics for its sharp handling. But while it’s Cadillac’s best-selling sedan, its sales trail those of most of the brand’s SUVs and crossovers.
    GM sold about 10,000 CT5s in the U.S. in the first half of the year, roughly double the smaller CT4 sedan’s total. But it was far less than the nearly 21,000 sales of the luxury brand’s bestseller, the big Escalade SUV, over the same period.
    Production of the updated CT5 will begin in the second quarter of 2024. Updates to the high-performance versions of the CT5, the CT5-V and CT5-V Blackwing, will be shared at a later date, GM said.
    Some timely updates: 2024 Jeep Gladiator
    Stellantis revealed a lightly overhauled version of its Jeep Gladiator, a pickup truck based on the brand’s iconic Wrangler. The Gladiator will get a refreshed version of the iconic Jeep grille for the 2024 model year, as well as an upgraded touchscreen “infotainment” system and some new off-road features.

    Jeep unveiled a refreshed 2024 version of its Gladiator pickup in Detroit on Sep. 13, 2023.

    Not surprisingly, the Gladiator’s new grille is very similar to the revamped grille that the Wrangler itself will be sporting for the 2024 model year. The two models are built side-by-side at the Jeep brand’s flagship factory in Toledo.
    Inside, Stellantis has made its 12.3-inch touchscreen system – originally an upgrade option – standard, along with Apple CarPlay and Android Auto functionality. Buyers of the revamped Gladiator will also be able to opt for new power seats that have been “tested for water fording,” said Senior Vice President Jim Morrison, who leads the Jeep brand in North America.

    The revamped 2024 Jeep Gladiator includes a larger touchscreen infotainment system as standard equipment.

    “Combine all of that with its folding windshield, three roof choices, two different door options or taking the doors off altogether, and Gladiator is the only truck in the business that can celebrate this kind of open-air freedom and still do real truck stuff,” Morrison said.
    New “X” versions of the Gladiator’s Mojave and Rubicon trims, which are even more focused on off-road driving, add a full-time transfer case and an integrated off-road camera, as well as steel bumpers at both ends. But Stellantis has discontinued the Gladiator’s optional diesel engine, leaving buyers with just one powertrain choice — a 3.6-liter V-6 with 285 horsepower. Unlike the Wrangler, the Gladiator isn’t offered in a hybrid version.
    The Gladiator’s sales are only a fraction of the Wrangler’s – about 27,000 Gladiators versus over 84,000 Wranglers in the first half of 2023 – but it’s still an important, high-profit product for Stellantis. The company said dealers can order the revamped truck now, with deliveries expected to begin before year-end. More

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    New Covid boosters could reach Americans as soon as Thursday – here’s what you need to know

    The Centers for Disease Control and Prevention cleared updated Covid vaccines from Pfizer and Moderna following approvals from the Food and Drug Administration.
    Those single-strain mRNA shots are designed to target a relatively new omicron subvariant called XBB.1.5. 
    The new vaccines from Pfizer and Moderna will be administered at pharmacies, local health departments, health clinics, community centers and other vaccine distribution sites nationwide.

    A nurse prepares doses of the Pfizer vaccine during a COVID-19 vaccination event at Josephine’s Southern Cooking in Chatham, Illinois, Dec. 30, 2021.
    Brian Cassella | Tribune News Service | Getty Images

    A new round of Covid vaccines is finally here in the U.S.
    The Centers for Disease Control and Prevention cleared single-strain shots from Pfizer and Moderna for all Americans six months and up on Tuesday, following approvals from the Food and Drug Administration on Monday. Those mRNA vaccines are designed to target a relatively new omicron subvariant called XBB.1.5. 

    The first doses of the new shots will be available at some pharmacies and other vaccine distribution locations within 48 hours of the CDC’s recommendation, agency staff said Tuesday during a meeting of independent advisors to the CDC. That means jabs could reach Americans as soon as Thursday.
    Meanwhile, the FDA is still reviewing a third updated vaccine from Novavax for people ages 12 and up. 
    The debut of the new shots comes after Covid hospitalizations increased for the seventh straight week in the U.S., hitting 17,418 as of the week ended Aug. 26, according to the latest data from the CDC. That number remains below the surge the nation saw in the summer of 2022. 
    But the recent uptick is raising concerns about how much traction Covid will gain in the coming fall and winter months, when respiratory viruses typically spread at higher levels and people spend more time indoors. 
    Public health officials and health experts hope the arrival of new vaccines will help the U.S. avoid another severe Covid wave and “tripledemic” of Covid, the flu and respiratory syncytial virus, which inundated hospitals last winter. The Biden administration said last month that it will encourage eligible Americans to receive an updated Covid vaccine alongside an annual flu shot and an RSV jab approved for older adults or mothers. 

    Roughly 42% of Americans surveyed by the CDC in August said they “definitely will” or “probably will” get a Covid vaccine this fall, Dr. Megan Wallace, a CDC epidemiologist, said during the advisory meeting.
    Here’s everything you need to know about the updated Covid vaccines, from where to find them, whether you can get them for free and when to get them.

    Who should get the updated Covid shots?

    The CDC on Tuesday recommended that all Americans ages 6 months and older get the new shots. The agency’s website outlines more specific guidelines for staying up to date on Covid vaccines, which differ depending on age group and risk level.
    The CDC said that everyone ages 6 and older should get at least one dose of an updated mRNA vaccine this year, regardless of whether they’ve received any of the original Covid shots.
    People ages 65 years and older may get an additional dose of a new Covid vaccine four or more months after a first dose of an updated shot.
    Children 6 months through 5 years of age who are getting their vaccines for the first time should complete their primary series with two doses of an updated Moderna shot or three doses of a new Pfizer jab, according to the CDC. If children previously received prior vaccines, the CDC has different recommendations for how many updated doses to get.
    People who are moderately or severely immunocompromised should get one or more doses of a new shot, depending on their vaccination history. Those patients are at higher risk of getting severely sick from Covid, according to the CDC.

    Where can you get a new shot? 

    A sign advertises COVID-19 (coronavirus) vaccine shots at a Walgreens Pharmacy in Somerville, Massachusetts, August 14, 2023.
    Brian Snyder | Reuters

    The updated shots will soon be available to eligible people at pharmacies, health clinics and community centers, among other vaccine distribution sites. Those locations will stop offering last year’s bivalent boosters, which are no longer authorized for use in the U.S.
    Several retail pharmacy chains told CNBC that they will start offering appointments for the new shots shortly after the CDC recommendation: 

    Walgreens will allow people to schedule appointments for the new shots within 24 hours after the CDC recommendation, “with available appointments starting that week,” a company spokesperson said. People can schedule those appointments through the Walgreens website or app, or by calling 1-800-WALGREENS. The company will add more appointments on a rolling basis. 
    CVS Pharmacy locations will start receiving supply of the updated vaccines “later this week,” a company spokesperson said. Pharmacies will receive more doses on a rolling basis and appointments will be available to schedule on the CVS website and CVS Pharmacy app. 
    Albertsons expects its 1,700 pharmacies to begin administering the updated shots “as early as Friday,” a spokesperson said. The company’s pharmacies span stores like Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Amigos and Market Street. People can view and schedule appointments on the Albertsons website or app.
    Kroger will allow people to walk in or schedule appointments to get the new Covid vaccine at the company’s pharmacies or clinics. 

    Americans will soon be able to use the federal website vaccines.gov to find other locations offering the updated Covid shots, according to a CDC spokesperson. The agency is still “unsure of the exact timing” for when the site will be updated to include a search filter for the new vaccines, the spokesperson added.
    Later this week, uninsured and underinsured people will also be able to use the site to find locations offering the new vaccines for free through the Bridge Access Program. Around 85% of uninsured Americans live within five miles of a location participating in that program, according to Dr. Evelyn Twentyman, a CDC medical officer.

    Will the new Covid shots be free? 

    There are slight changes to how Covid vaccines are covered in the U.S this year. But the federal government aims to ensure all people can still receive them for free.
    The U.S. Covid public health emergency ended in May, which means the federal government is shifting vaccine distribution to the private market this fall. 
    Manufacturers will sell their updated shots directly to health-care providers at more than $120 per dose. Previously, the government purchased vaccines directly from manufacturers at a discount to distribute to all Americans for free. 
    All three vaccine manufacturers shared the list prices of their new vaccines during the advisory meeting on Tuesday: Moderna’s shot is $129 per dose, Pfizer’s is $120 per dose and Novavax’s jab is $130 per dose.
    Private insurers will provide the vaccines to beneficiaries at no cost. Government payers such as Medicare and Medicaid will also cover the new shots with no copayments.

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    For the estimated 30 million uninsured Americans, the Biden administration aims to offer shots for free through its Bridge Access Program at health centers, clinics and pharmacies across the U.S.
    “We’re setting up the Bridge Access Program as a temporary solution to maintain access to Covid-19 vaccines, specifically in the short term,” Twentyman said during the advisory meeting Tuesday.
    The program will begin as soon as vaccines have reached participating providers, which include CVS and Walgreens, according to Twentyman. Free vaccines through the program will not be available after December 2024.
    The CDC’s Vaccines For Children program will also provide free Covid shots to children whose families or caretakers can’t afford them after the shots move to the commercial market.

    How should you time your updated Covid vaccine?

    People should talk to their doctors about when to get an updated shot because it largely depends on individual risk levels and situations, health experts told CNBC.
    Individuals at higher risk of getting severely ill from Covid, including older adults and those who are immunocompromised, should get a new vaccine as soon as they can, according to Dr. Taison Bell, an associate professor of medicine at University of Virginia Health.
    Younger, healthy adults can choose to wait so that immunity from the vaccine kicks in around the winter holidays or a specific event where they may be more exposed to Covid, Bell added. 
    He said Covid vaccines take around two weeks to produce an immune response against the virus, and that protection tends to last for a few months. So if a patient has upcoming travel or a large gathering to attend in mid-October, they could plan to get the new shot at the beginning of that month. 
    People recently vaccinated should wait two months before getting an updated vaccine, according to the CDC’s Wallace. Spacing out shots will allow people to maximize the protection they get from each shot.
    Those who have been recently infected can wait three months, but they can also get it “as soon as they’re feeling better,” Wallace added.
    “You have the option to wait for three months, but it is not a requirement,” she said during the advisory meeting.

    How effective are the new shots? 

    The new shots from Pfizer, Moderna and Novavax are designed to target XBB.1.5, which has since been overtaken in prevalence by other, related strains. It only accounted for around 3% of all reported U.S. cases as of Sept. 2, according to the latest data from the CDC. 
    All three companies said that their updated vaccines produced robust immune responses against the now-dominant EG.5, or “Eris,” variant in trials. That omicron strain is closely related to XBB.1.5 and accounted for 21.5% of all U.S. cases as of Sept. 2, according to the CDC.
    They also presented preliminary trial data in June indicating that their jabs will protect against all other XBB strains. Collectively, those variants make up more than 90% of all reported cases in the U.S., according to CDC microbiologist Dr. Natalie Thornburg.
    “So the take-home message is that currently, almost all circulating lineages of viruses are XBB variants,” Thornburg said during the advisory meeting Tuesday.
    Both Pfizer and Moderna have also released initial trial data indicating that their new shots were effective against another omicron variant called BA.2.86. Novavax on Monday said it was still testing its vaccine against that strain.
    BA.2.86 has been detected in small numbers across the U.S., but health officials worldwide are watching it closely due to its high number of mutations. 
    Following the approvals Monday, the FDA said the “extent” of protection provided by the updated shots from Pfizer and Moderna against currently circulating variants like EG.5 and BA.2.86 “appears to be of a similar magnitude” to the protection provided by previous Covid vaccines against prior variants of the virus. 
    “This suggests that the vaccines are a good match for protecting against the currently circulating Covid-19 variants,” the agency said in a release. 
    The FDA also said it is confident in the safety of the updated vaccines, noting that the benefits of the shots for people 6 months and older outweigh their risks. More