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Credit Suisse vows to forge ahead with its risk management overhaul, despite what its CEO called a “challenging” environment.
The embattled Swiss lender will hold an Investor Deep Dive event Tuesday, setting out reforms across its risk, compliance, technology and operations functions, along with the wealth management business.
Credit Suisse has endured a string of scandals and mishaps in recent years, and reported a net loss for the first quarter of 2022 as it continues to grapple with litigation costs.

A sign above the entrance to the Credit Suisse Group AG headquarters in Zurich, Switzerland, on Monday, Nov. 1, 2021.
Thi My Lien Nguyen | Bloomberg | Getty Images

Credit Suisse has vowed to forge ahead with its risk management and compliance overhaul in light of a string of scandals, despite what its CEO called a “challenging” environment.
The embattled Swiss lender will hold an Investor Deep Dive event on Tuesday, setting out its priorities and progress to date in reforms across its risk, compliance, technology and operations functions, along with the wealth management business.

Credit Suisse warned earlier this month that it is likely to post a loss for the second quarter, as the war in Ukraine and monetary policy tightening squeeze its investment bank.
It comes after a string of scandals and mishaps at the bank in recent years. It reported a net loss for the first quarter of 2022 as it continued to grapple with litigation costs relating to the Archegos hedge fund collapse.
The bank saw heavy losses in the wake of the meltdown of U.S. hedge fund Archegos Capital, as it severed ties to the troubled family office.
“Despite the challenging market environment, we remain firmly focused on the execution of our strategic plan during the transition year 2022 and on reinforcing our risk culture – crucially, while staying close to our clients,” Credit Suisse CEO Thomas Gottstein said in a statement ahead of Tuesday’s investor event.
“At the same time, we are continuing to drive the bank’s digital transformation, which is key to building a robust, scalable and agile organization that is fit for the future.”

In its presentation to investors, the bank outlined how the Archegos collapse highlighted weaknesses in its risk management, where “outcome sustainability deviated from historical performance.” It was also detail how it has recalibrated its aggregate risk profile to reduce exposure to higher risk areas of the market.
Credit Suisse also put forward plans to achieve 200 million Swiss francs ($209.1 million) in cost savings in each of the years 2022 and 2023 by utilizing technology, with a further 400 million francs in the medium-term.
The litany of scandals have led some shareholders to call for a change in leadership only two years since Gottstein took over from former CEO Tidjane Thiam, who resigned after a protracted spying saga.
However, Chairman Axel Lehmann told CNBC in May that CEO Thomas Gottstein has the board’s full backing to continue with the “rebuilding” of the company.
Meanwhile on Monday, Credit Suisse and a former employee were found guilty by Switzerland’s Federal Criminal Court of failing to prevent money-laundering by an alleged Bulgarian cocaine trafficking gang between 2004 and 2008. The trial was the country’s first criminal proceeding against one of its major banks.

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De Nora’s IPO was priced at 13.50 euros per share on Tuesday, valuing the Italian company at 2.723 billion euros, or $2.88 billion.
“It was the right time for us … we are not scared about the current market turbulences,” CEO Paolo Dellacha told CNBC.
De Nora, which is based in Milan, was founded in 1923 and specializes in electrode and water treatment technologies.  

De Nora was founded in 1923 and specializes in electrode and water treatment technologies.
Pavlo Gonchar | Lightrocket | Getty Images

The CEO of electrode maker Industrie De Nora says it is “not scared” about the current market turbulence as it braves an IPO this week.The initial public offering was priced at 13.50 euros per share on Tuesday, valuing the Italian company at 2.723 billion euros, or $2.88 billion.”It was the right time for us, we have a great equity story, so for us … it is the beginning of a new journey, and we are not scared about the current market turbulences,” CEO Paolo Dellacha told CNBC’s Julianna Tatelbaum. “We have an industrial plan to execute.”
The company is due to start trading on the Euronext Milan on Thursday, in what will be Europe’s first major IPO since the war in Ukraine began.

It comes at a volatile time for markets, with the pan-European Eurostoxx 600 down over 14% over the year to date. Traders are reacting to both the Ukrainian conflict and its global ramifications, as well as a more aggressive rate hike policy by the U.S. Federal Reserve and other central banks around the world.
De Nora, which is based in Milan, was founded in 1923 and specializes in electrode and water treatment technologies.   More

India’s stocks have not had a good first half of 2022, but stock brokerage Kotak Securities is positive on Reliance Industries and Infosys.
The Nifty 50 index and S&P BSE Sensex are both down nearly 9% since the start of the year. Reliance Industries’ stock is up around 5% in the same period, but Infosys shares have fallen around 20%.

India’s stocks didn’t have a good start in the first half of the year, but stock brokerage Kotak Securities remains bullish on two stocks.
Reliance Industries, an energy and telecommunications conglomerate, has been making a lot of small acquisitions and is “very aggressive” in converting companies into digital businesses, said Shrikant Chouhan, executive vice president and head of equity research at Kotak Securities.

“Telecom and digital will contribute a lot in the near future,” he told CNBC’s “Street Signs Asia” on Monday, adding that the company is taking steps in the right direction.
“We are expecting the stock to move towards at least 2,850 or 3,000 [rupee] in the next, maybe couple of weeks,” he said.
That represents up to 20% upside from Reliance Industries share price of 2,492.65 rupee at Monday’s close.
“Broadly, we are of the view that Reliance Industries is going to do well,” Chouhan said.
The company’s shares are up around 5% since the start of the year. India’s Nifty 50 index and S&P BSE Sensex are both down nearly 9% over the same period.

Infosys

Kotak Securities also likes Infosys, which has fallen more than 20% since the beginning of 2022.
Chouhan said the information technology company is “doing extremely well in terms of meeting the orders” from its clients for their services.
Revenue from contracts with their customers is down, but the company is going to be supported by growth in the platforms it developed, he said.
IT companies have come under pressure, but Infosys is trying to recover, Chouhan said.
“We are of the view that they’re going to be well because they are professional and they have seen these cycles many times in the past,” he added.
Disclosures: Kotak Securities has financial interest in Infosys.

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Mandatory Covid-19 restrictions are unlikely to be reintroduced in Britain this summer, health researchers and physicians have said, even as the country enters a new wave of infections.
More than 1.7 million Brits, or around 1 in 35 people, tested positive for Covid in the week to June 18 — up 23% from the week prior.
It comes ahead of a summer of large-scale musical and sporting events in Britain, which could lead to a further uptick in cases.

More than 1.7 million Brits — or around 1 in 35 people — tested positive for Covid in the week to June 18, the latest data from the U.K.’s Office for National Statistics showed Friday.
Adrian Dennis | Afp | Getty Images

LONDON — Mandatory Covid-19 restrictions are unlikely to be reintroduced in Britain this summer, health researchers and physicians have said, even as the country enters a new wave of infections.
More than 1.7 million Brits — or around 1 in 35 people — tested positive for Covid in the week through to June 18, the latest data from the U.K.’s Office for National Statistics showed Friday.

The surge marks a 75% increase from two weeks prior when the country commemorated Queen Elizabeth II’s Platinum Jubilee. It also comes ahead of a summer of large-scale musical and sporting events, which could push cases higher still.
Yet, health researchers and physicians say they don’t foresee a return to obligatory public health measures unless there is a major shift in the virus’ behavior.
“I don’t think we will have any mandatory restrictions unless the situation looks unmanageable for the health service, and especially the critical care service,” Simon Clarke, associate professor in cellular microbiology at the University of Reading, told CNBC Monday.
The majority of new infections are being driven by omicron BA.4 and BA.5, two newer variants that have now become the dominant strains in Britain, the U.K. Heath Security Agency said Friday.
Though both have been designated “variants of concern,” scientists say there is currently no evidence to suggest either cause more serious illness than previous strains, and they are unlikely to behave drastically differently.

Any shift in approach, if it were to happen, would be if intensive care units were to come under significant pressure, Clarke said. Hospitalizations were up 8.2% over the past week, but ICU and high dependency unit admission rates have so far remained low at 0.2%, according to UKHSA.
“ICU is the bottleneck on this, and that’s where you’re going to see — if you see it — an inability to cope,” Clarke said.

‘Living with Covid’

The U.K. government has been committed to its strategy of “living with Covid” since all restrictions were lifted in England in February this year.
Last week, England’s former deputy chief medical officer, Professor Jonathan Van-Tam, said that the virus had become increasingly like the seasonal flu and that the onus was now on individuals to “frame those risks for themselves.”
“In terms of its kind of lethality, the picture now is much, much, much closer to seasonal flu than it was when [Covid] first emerged,” he told BBC Radio 4’s “Today” program.
Scotland’s national clinical director echoed those comments Sunday, telling the BBC that it would take a “dramatic” change for mandatory restrictions to be brought back.
“People are going back about their business. Glastonbury is on, TRNSMT is on next week,” Professor Jason Leitch said, referring to two U.K. music festivals in Somerset and Glasgow, respectively. “All of those things are really, really important to get back.”
However, he conceded that people would need to accept a few “small prices” to ensure normality continues, such as keeping up-to-date with vaccinations, wearing face coverings where appropriate and staying off work when sick.
The government has already committed to providing additional booster vaccinations to over-65s, frontline health and social workers and vulnerable younger people this autumn.
However, Clarke said it would be prudent to extend the program to over-50s ahead of the winter months when the country could face a more severe spike in infections.
“The immunity from boosters is already beginning to wane and will do more so by the end of the year,” Clarke said, adding that that could be the more important period to watch in terms of restrictions.
Britain’s Health Secretary Sajid Javid suggested last week that the government may be considering expanding the program.

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Nike posted better-than-expected sales and profit for its fiscal fourth quarter.
In the three-month period, inventory rose 23% versus the year-ago period, driven by longer lead times from ongoing issues in the supply chain.
“We continue to closely monitor consumer behavior, and we’re not seeing signs of pullback at this point in time, and so we continue to execute the strategy, and the plan we have which is working,” Nike’s CFO Matthew Friend said.

Nike Air Jordan shoes are seen in the store in Krakow, Poland on August 26, 2021.
Jakub Porzycki | Nurphoto | Getty Images

Nike on Monday said demand for sneakers and sportswear largely held up in the fiscal fourth-quarter, despite a Covid lockdown in China and a tougher consumer environment in the U.S.
But the company said challenges such as higher transportation costs and longer shipping times are persisting.

Shares fell about 3% in aftermarket trading, despite the company topping Wall Street’s earnings and sales expectations.
Nike anticipates first-quarter revenue will be flat to slightly up versus the prior year, as it continues to manage Covid disruption in Greater China. It said it anticipates full-year revenue will grow by low double-digits on a currency-neutral basis.
Chief Financial Officer Matthew Friend said Nike factored elevated ocean freight costs, increased product costs, supply chain investments and higher levels of markdowns into its forecast.
On a call with analysts, he said the company is “optimistic” as it enters the new fiscal year. He said production has surpassed prepandemic levels and inventory is “flowing again into our largest geographies.”

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“We continue to closely monitor consumer behavior, and we’re not seeing signs of pullback at this point in time, and so we continue to execute the strategy and the plan we have, which is working,” he said.

Here’s how Nike did in its fiscal fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: 90 cents vs. 81 cents expected
Revenue: $12.23 billion vs. $12.06 billion expected

The company reported net income for the three-month period ended May 31 of $1.44 billion, or 90 cents per share, compared with $1.51 billion, or 93 cents per share, a year earlier.
Sales dropped to $12.23 billion from $12.34 billion a year earlier.
Nike is in the middle of a strategy shift, as the company sells more merchandise directly to shoppers and trims back the amount sold by wholesale partners such as Foot Locker. Its direct sales grew 7% to $4.8 billion in the quarter versus the year-ago period. Nike’s wholesale business trends were the opposite. Sales in that division dropped 7% to $6.8 billion.
In North America, Nike’s largest market, total sales fell by 5% to $5.11 billion in the fourth quarter.
In Greater China, its sales took a bigger hit due to lockdowns. Total sales in the country dropped by 19% to $1.56 billion versus $1.93 in the year-ago period.
Yet Friend said the declines have to do with fleeting factors, not shopper loyalty and desire for Nike products. For three consecutive quarters, he said, consumer demand has exceeded available inventory. Now, he said, supply is finally normalizing.
Nike faces a complex backdrop, however. As the prices of gas, groceries and more rise, some consumers may skip over discretionary items or trade down to lower-priced brands. Nike’s direct sales strategy comes with risk if its rivals wind up with more shelf space and higher sales at wholesale retailers. And as supply chain challenges continue, merchandise can get stuck in the wrong spot or arrive too late.
The company is paying about five times the rate it paid prepandemic to put product in a container on a boat and move it from Asia to the U.S., Friend said. He said transit times are about two weeks longer than prepandemic.
In the three-month period, inventory rose to $8.4 billion — up 23% versus the year-ago period — driven by longer lead times from ongoing disruptions in the supply chain.
Shares of Nike closed on Monday at $110.50, down 2.13%. As of Monday’s close, Nike shares are down about 34% so far this year. It’s underperformed the S&P 500, which is down about 18% during the same period. The company’s market value is $173.9 billion.
Nike said its board authorized a new four-year, $18 billion stock buyback program this month. It will replace the company’s $15 billion share buyback program, which will end in the coming fiscal year.
Read the company’s earnings release here.

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U.S. Commerce Secretary Gina Raimondo told CNBC’s Jim Cramer on Monday that she believes GlobalWafers will follow through on its plan to build a silicon wafer factory in Texas, but only if Congress passes the CHIPS for America Act by the time the August recess begins.
“This investment that they’re making is contingent upon Congress passing the CHIPS Act. The CEO told me that herself, and they reiterated that today,” Raimondo said in an interview on “Mad Money.”

U.S. Commerce Secretary Gina Raimondo told CNBC’s Jim Cramer on Monday that she believes GlobalWafers will follow through on its plan to build a silicon wafer factory in Texas — but only if Congress passes funding for the CHIPS for America Act by the time the August recess begins.
“This investment that they’re making is contingent upon Congress passing the CHIPS Act [funding]. The CEO told me that herself, and they reiterated that today,” Raimondo said in an interview on “Mad Money.”

“It has to be done before they go to August recess. I don’t know how to say it any more plainly. This deal … will go away, I think, if Congress doesn’t act,” she added.
GlobalWafers, a Taiwan-based semiconductor silicon wafer firm, said Monday that it plans to build a facility to produce the component in Sherman, Texas. The facility could create up to 1,500 jobs and produce 1.2 million wafers a month, according to the U.S. Commerce Department.
The CHIPS (Creating Helpful Incentives to Produce Semiconductors) for America Act incentivizes investment in the U.S. semiconductor industry. While it was passed in January 2021, a funding package has not been approved by Congress.
Supply chain snarls have kept a variety of industries, most notably the automotive industry, from being able to secure semiconductor chips, all while demand soars. 
“Semiconductor demand is going to double in the next 10 or 11 years. It takes a couple of years to get a new facility up and running, which means these companies have to make their decisions now. GlobalWafer has made the announcement today because they need to have the cement in the ground at the facility in November,” Raimondo said.

The commerce secretary, who has previously rallied for Congress to support a more robust American semiconductor industry to rely less on foreign suppliers, reiterated that time is of the essence.
“It’s time, I think, for people to get much more practical. … Everyone has to realize you’re not going to get everything you want. We have to winnow this down to the essential items, get this passed and move quickly,” she said.
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CNBC’s Jim Cramer on Monday told investors that while the market has yet to overcome the challenges threatening to create a recession, FedEx stock might be able to weather the turbulence.
“This company’s taking control of its own destiny. … I think you could do a lot worse,” he said.

CNBC’s Jim Cramer on Monday told investors that while the market has yet to overcome the challenges threatening to create a recession, FedEx stock might be able to weather the turbulence.
“You might think FedEx would be a helpless victim of high gas prices, potential e-commerce plateau, a [Federal Reserve]-mandated slowdown. That would be wrong. This company’s taking control of its own destiny. … I think you could do a lot worse,” he said.

The “Mad Money” host said that while FedEx has struggled with supply chain disruptions and performing as well as it did during the height of the pandemic, the company is on the up and up.
FedEx reported mixed results in its latest quarter last week, beating slightly on earnings but missing on revenue, according to Refinitiv estimates. The company also issued a cheerful full-year guidance, projecting an increase in adjusted earnings. 
The transportation company also raised its dividend from 75 cents to $1.15.
“Companies don’t put through a 53% dividend boost when they’re worried about making their next quarter,” Cramer said. 
“Don’t forget, this is a market that only values profitable companies that reward their shareholders with dividends and buybacks,” he added.

Shares of FedEx fell 1.14% on Monday.
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Envoy Air pilots will get triple pay if they fly open trips from July 2 to 31.
American Airlines’ regional subsidiaries earlier this month agreed to a temporary 50% pay increase for pilots.
Airlines and travelers are struggling with numerous flight delays this summer amid staffing shortages.

American Airlines Embraer ERJ-145 regional jet aircraft as seen on final approach landing at New York JFK international airport in NY, on February 13, 2020.
Nicolas Economou | Nurphoto | Getty Images

American Airlines’ regional carrier Envoy Air is offering pilots triple pay to pick up trips for most of next month, an effort the airline says will help it avoid flight disruptions during the peak summer travel season.
“Super critical coverage has been declared for” July 2 to 31 for all bases, according to a note sent to Envoy pilots on Monday that was seen by CNBC. “Any open time flown during this time frame will be paid at 300%. Thank you in advance for your help.”

Ric Wilson, vice president of flight operations for Envoy, said although the triple pay is applicable throughout July, it doesn’t necessarily mean open trips are available for pilots each day.
“We are into our peak flying season and we want to ensure that we can operate dependably for our customers,” Wilson said.
The airline said in a statement that it “has had an extraordinary completion factor for the month of June,” referring to completed flights.
“As part of the proactive strategy to run a reliable schedule during the peak summer travel season, Envoy is offering pilots triple pay to pick up uncovered trips on their days off in the month of July,” the carrier said. “This will only be offered if there are open trips available, and currently Envoy is fully covered with its flight schedule this summer.”

The approaching Fourth of July holiday weekend will be a test for airlines that have struggled to tamp down delays amid staffing shortages.
American’s regional subsidiaries ⁠— Envoy, Piedmont and PSA ⁠— earlier this month said they were giving pilots a temporary 50% pay increase through August 2024 to help alleviate a pilot shortage that airlines say have forced them to cut routes.

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