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Global grain shortages will likely last through the end of this year and into next year, AGCO Corp CEO Eric Hansotia told CNBC’s Jim Cramer on Monday.
“There’s just not enough grain in the world, and there won’t be for the rest of this year and probably even into next year,” Hansotia said in an interview on “Mad Money.”

Global grain shortages will likely last through the end of this year and into next year, AGCO Corp CEO Eric Hansotia told CNBC’s Jim Cramer on Monday.
“There’s just not enough grain in the world, and there won’t be for the rest of this year and probably even into next year. We have to have a tremendous harvest this year and next year just to close that gap on the grain gap,” Hansotia said in an interview on “Mad Money.”

The chief executive said that the agricultural machinery manufacturer has the biggest order bank in its history, up 30% from last year in Europe and up 20% in the United States.
The industry’s supply and demand gap stems from the same global rebound of demand for products and services following the height of the Covid pandemic. Suppliers weren’t able to keep up with demand because of shutdowns, according to Hansotia.
Complicating matters is the Russia-Ukraine war’s pressure on global grain supplies. However, a ship departed Ukraine for Lebanon on Monday, marking the first passage of a ship carrying Ukrainian grain through the Russia navy-dominated Black Sea since the war’s onset, according to Reuters.
Hansotia added that while AGCO sees some relief in the second half of the year, challenges still remain.
“There’s semiconductor chips in essentially everything that we build. And so that’s probably our biggest challenge remaining,” he said.

On the flip side, the company expects 30% growth this year in its precision agriculture business as farmers look to innovate.
“Farmers have never been under more pressure to produce more, and yet their input costs are up, so they want to do with less inputs … the only way to solve that equation is precision ag and technology,” Hansotia said.
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Monday – Friday, 6:00 – 7:00 PM ET

It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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Western Digital Corp: “I’m going to have to say avoid it, until we see what they say at the end of the week.”

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Boise Cascade Co: “I’ve got to do some more work on it, because they reported.”
Disclosure: Cramer’s Charitable Trust owns shares of Costco.

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Monday – Friday, 6:00 – 7:00 PM ET

CNBC’s Jim Cramer on Monday said the most important data this week is the Bureau of Labor Statistics release of the July nonfarm payrolls report on Friday morning.
“If it shows some job growth with no wage inflation, then the fabulous July rally can stand,” the “Mad Money” host said.

CNBC’s Jim Cramer on Monday said the most important data this week is the Bureau of Labor Statistics release of the July nonfarm payrolls report on Friday morning.
“If it shows some job growth with no wage inflation, then the fabulous July rally can stand. But if it shows booming hiring with exceptionally large wage increases, then some of this rally, if not much of it, is going to be repealed,” the “Mad Money” host said. 

Job growth has been strong this year, leading economists to say the U.S. is not in a recession even with two back-to-back quarters of negative GDP. 
Another strong jobs report could mean the Federal Reserve, which added a three-quarters a percentage point interest rate hike last week, will have to take stronger action to slow down the economy and inflation.
Cramer also previewed this week’s slate of earnings. All earnings and revenue estimates are courtesy of FactSet.
Tuesday: Uber, AMD, Starbucks, Airbnb, JetBlue, PayPal
Uber

Q2 2022 earnings release at TBD time; conference call at 8 a.m. ET
Projected loss: loss of 27 cents per share
Projected revenue: $7.36 billion

Cramer said he believes Uber will always struggle to make money unless it gets “real” autonomous vehicles.
AMD

Q2 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
Projected EPS: $1.03
Projected revenue: $6.53 billion

AMD will likely report a strong performance, Cramer predicted.
Starbucks

Q3 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
Projected EPS: 77 cents
Projected revenue: $8.15 billion

Cramer said he wants to bet on Starbucks CEO Howard Schultz, not against him.
Airbnb

Q2 2022 earnings release between 4 p.m. and 4:05 p.m. ET; conference call at 4:30 p.m. ET
Projected EPS: 45 cents
Projected revenue: $2.11 billion

The company will likely report it’s doing well, Cramer said, adding that he believes shares of Airbnb won’t go higher unless it turns its cash flow into actual earnings.
JetBlue

Q2 2022 earnings release at 7 a.m. ET; conference call at 10 a.m. ET
Projected per share loss: 11 cents
Projected revenue: $2.45 billion

Cramer said he believes the Justice Department will block JetBlue’s deal to acquire Spirit Airlines.
PayPal

Q2 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
Projected EPS: 87 cents
Projected revenue: $6.78 billion

“If PayPal misses again, this is Elliott’s ballgame,” Cramer said, referring to activist investor Elliott Management’s recently acquired stake in the payment platform.
Wednesday: CVS

Q2 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
Projected EPS: $2.18
Projected revenue: $76.41 billion

Cramer said he expects the retail giant to report great numbers.
Thursday: Eli Lilly, Warner Bros Discovery, DoorDash
Eli Lilly

Q2 2022 earnings release at 6:25 a.m. ET; conference call at 9 a.m. ET
Projected EPS: $1.70 
Projected revenue: $6.85 billion

Cramer said he believes the success of Eli Lilly’s new weight loss drug will help the company report a great quarter.
Warner Bros Discovery

Q2 2022 earnings release after the bell; conference call at 4:30 p.m. ET
Projected EPS: 12 cents
Projected revenue: $11.85 billion

Cramer said he believes the company will try to muddle through getting rid of its huge debt load totaling around $55 billion.
DoorDash

Q2 2022 earnings release at 4:05 p.m. ET; conference call at 6 p.m. ET
Projected per share loss: 21 cents
Projected revenue: $1.52 billion

Cramer said he’s unsure whether DoorDash will be able to revive its stock price.
Disclosure: Cramer’s Charitable Trust owns shares of AMD and Eli Lilly.

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Federal regulators have fined Family Dollar more than $1.2 million in penalties related to safety violations at two Ohio stores.
Both Ohio stores had blocked exits, unstable stacks, cluttered working areas and inaccessible electrical equipment and fire extinguishers.

A vehicle drives through the parking lot outside a Family Dollar Stores Inc. store in Chicago, Illinois, on Tuesday, March 3, 2020.
Daniel Acker | Bloomberg | Getty Images

Federal regulators have fined Family Dollar more than $1.2 million in penalties related to safety violations at two Ohio stores, the Department of Labor’s Occupational Safety and Health Administration said Monday.
In January and February of this year, OSHA inspected Family Dollar stores in Columbus and Maple Heights and found blocked exits, unstable stacks of goods, cluttered working areas and inaccessible electrical equipment and fire extinguishers.

At the Columbus location, the agency found “water-soaked ceiling tiles” had fallen to the floor on at least two occasions in “close proximity” to employees, according to the citation.
The agency found 11 violations between the two stores, adding to more than 300 total violations by Family Dollar and its parent company, Dollar Tree, over the last five years, OSHA said in a release.
“Family Dollar and Dollar Tree stores have a long and disturbing history of putting profits above employee safety,” said Doug Parker, assistant secretary of labor for occupational safety and health, in a statement. “Time and time again, we find the same violations — blocked or obstructed emergency exits and aisles, boxes of merchandise stacked high or in front of electrical panels and fire extinguishers. Each hazard can lead to a tragedy.”
A representative for Dollar Tree did not immediately respond to a request for comment. The company can contest the citation and the fine with the agency.
The fines come just months after a Food and Drug Administration investigation found rodents, dead and alive, in more than 400 Family Dollar stores, leading to mass voluntary recalls of products this past February.
Dollar stores have seen growing success amid a recent period of soaring inflation, as consumers grapple with higher prices on everything from groceries to gas. Dollar Tree upped its price point to $1.25 earlier this year.

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Ford Motor stock in July notched its best month since the Great Recession and added to those gains Monday.
The stock advanced 32%, marking the best monthly percentage gain for Ford’s shares since a 127.4% surge in April 2009.
The stock’s performance in July was driven by a steady stream of product-related announcements and second-quarter earnings.

2023 Ford F-150 Raptor R

DETROIT — Ford Motor’s stock on Monday added to its best month since the Great Recession in 2009, signaling a significant swing for the Detroit automaker this year.
Shares closed Monday at $15.34, up 4.4%. The gains added to the stock increasing by 31.9% in July. It was the best monthly percentage gain for Ford shares since 127.4% in April 2009, when Ford was emerging from the Great Recession without going through bankruptcy like its crosstown rivals General Motors and then-Chrysler.

Ford’s stock performance in July was driven by a steady stream of product-related announcements, including that it has secured battery supplies for its upcoming electric vehicles, as well as a 14.6% increase last week amid the company reporting second-quarter results that beat Wall Street’s expectations.
Ford last week also reiterated its previous guidance for the full year and said that it will increase its quarterly dividend to 15 cents per share, the amount it paid before the Covid-19 pandemic.
Ford significantly outperformed GM, which was up by 14.2% last month, as well as other U.S.-listed automakers such as Stellantis, which was up 16.3%, Ferrari, up 15.1%, and Toyota Motor, up 5.5%. It failed to outperform others such as Rivian, which was up 33.3% last month, and Tesla, up 32.4%.
Ford’s stock remains off by about 26% in 2022, after being the top growth stock among U.S.-listed automakers last year.
— CNBC’s John Rosevear and Michael Bloom contributed to this report.

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PepsiCo announced Monday a $550 million investment in energy drink maker Celsius Holdings as part of a long-term distribution deal with the smaller company.
Energy drinks are one of the fastest-growing nonalcoholic beverage categories.
In the first quarter, Celsius’ U.S. revenue soared 217% to $123.5 million as demand for its energy drinks exploded.

Celsius Energy Drinks
Courtesy: Celsius Holdings

PepsiCo announced Monday a $550 million investment in energy drink maker Celsius Holdings as part of a long-term distribution deal with the smaller company.
Shares of Celsius closed up 11% on the news, bringing its market value to $7.45 billion.

Celsius is expecting to gain more shelf space in existing retailers and expand more into independent stores, such as gas stations. Pepsi will assist with the distribution starting Monday.
Pepsi’s investment in Celsius translates to a minority stake of roughly 8.5% in the company. The food and beverage giant will also nominate a director to serve on Celsius’ board.
Celsius, which was founded in 2005, has reported explosive growth for its energy drinks during the pandemic. In the first quarter, its U.S. revenue soared 217% to $123.5 million.
The company pitches its beverages as “healthy” energy drinks, targeting younger consumers who are active and exercise. Celsius drinks include ingredients such as ginger and green tea and no artificial preservatives or sugar. The company also claims that the beverages have thermogenic properties, meaning that drinking them can help increase metabolism and burn calories.
For Pepsi, the deal helps strengthen its ties to energy drinks. The category is one of the fastest growing beverage segments outside of alcohol, and Pepsi has been doubling down on energy in recent years as soda consumption falls. In early 2020, it bought legacy energy drink maker Rockstar for $3.85 billion with a goal of revitalizing its sales. Celsius recently overtook the brand as the fourth most popular energy drink in the U.S.
Pepsi had previously bet on another fast-growing upstart, Vital Pharmaceuticals’ Bang Energy, through an exclusive distribution agreement. But the relationship quickly soured, resulting in a legal battle that ended in Pepsi’s favor. In June, the two companies parted ways earlier than expected. The breakup fueled speculation that Pepsi would seek to acquire Monster Beverage or Celsius to increase its market share in the energy drink category.

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Nikola has agreed to acquire Romeo Power in a $144 million all-stock transaction.
The move will increase Nikola’s vertical integration and is expected to result in significant savings over the next few years.

Nikola Motor Company Two truck
Source: Nikola Motor Company

Electric heavy truck maker Nikola said Monday that it struck a $144 million deal to acquire battery pack supplier Romeo Power, giving the company control over a key part of its supply chain.
The all-stock transaction values Romeo at 74 cents per share, a 34% premium to Romeo’s closing price Friday. Romeo’s shares were up about 23% to 68 cents in premarket trading after the news was released.

As part of the deal, Nikola will provide Romeo with $35 million in interim funding to continue its operations until the transaction closes, the companies said. Nikola said it believes the acquisition could save it up to $350 million over the next four years.
California-based Romeo specializes in building battery modules and packs for large electric commercial vehicles, using lithium-ion battery cells manufactured by other companies. Nikola, which began shipping its electric semi-trucks earlier this year and expects to ship between 300 and 500 trucks in 2022, has been Romeo’s largest customer.
Nikola CEO Mark Russell said the deal will let the company accelerate the development of its electrification platform.
“Given our strong relationship with Romeo and ongoing collaboration, we are confident in our ability to successfully integrate and deliver the many expected strategic and financial benefits of this acquisition,” he said.
The deal is a lifeline for Romeo, which like Nikola is one of many companies in the EV space to have gone public via mergers with special purpose acquisition companies. Romeo went public via a SPAC merger in late 2020, in a deal that valued the combined company at $900 million.

But Romeo had just $66.8 million in cash and equivalents remaining as of the end of the first quarter, after racking up more than $250 million in losses. With its shares trading below $1 in recent weeks, and with interest rates rising, Romeo may have been running out of options to stay afloat.
Nikola has been working to win shareholder approval of a measure to increase its total number of shares outstanding, a measure that has been blocked by its former CEO, Trevor Milton, who was ousted following allegations that he misrepresented details of Nikola’s technology and order book to investors. Nikola plans to reconvene its shareholder meeting on Tuesday afternoon to announce the current vote totals.
In a regulatory filing Monday morning, Nikola said it has enough unissued stock to complete the acquisition of Romeo, even if the proposal to increase its shares outstanding fails to pass.

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Ford’s small Maverick pickup has been a surprise hit since its launch late last year, bringing new customers to the brand.
Ford hopes to extend the Maverick’s success with a new Tremor off-road package that will be available this fall.

2023 Ford Maverick Tremor
Source: Ford

Ford Motor is adding a new off-road-ready package to its Maverick pickup in a bid to extend the sales success of its hot-selling small truck.  
The new Maverick Tremor package includes a beefed-up, higher-riding suspension and a new all-wheel-drive system system powered by Ford’s 2-liter EcoBoost turbo four-cylinder engine. The package gives Maverick buyers access to an option that has proven popular on Ford’s larger pickups, said Todd Eckert, manager of Ford’s pickup marketing.

“Ranger, F-150 and Super Duty customers have embraced” the Tremor off-road packages that Ford has offered on those larger trucks, Eckert said. With the new Tremor package for Maverick, Ford aimed to bring similar off-road capabilities to the small truck while retaining its easy-to-park size and affordable price, he said.
The Tremor package will cost about $3,000, and buyers will be able to order it starting in September.
The Maverick has been a surprise hit for Ford, bringing new buyers to the brand drawn by its low price (it starts at about $21,000), its easy-to-park size (it’s roughly the size of a Toyota Avalon sedan), and its standard hybrid drivetrain (good for 40 miles per gallon in city driving). Ford said in May that Mavericks spend just five days on dealer lots, on average, before being sold.
The Maverick is also drawing new customers to the Ford brand — many of whom are buying their first-ever new vehicle. Ford said late last year that Maverick buyers are young, with about a quarter under 35. They’re also more likely to be female: About 25% of Maverick buyers are women, versus just 16% of those who buy Ford’s larger trucks.
Through the end of June, Ford had sold about 52,000 Mavericks since the truck’s launch last fall.

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