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    Mike Tyson, Jake Paul fight was the most-streamed sporting event ever, Netflix says

    The boxing match between Mike Tyson and Jake Paul was the most-streamed sporting event ever, Netflix said.
    The streaming platform said 108 million global viewers tuned in for the fight.
    The Amanda Serrano and Katie Taylor bout on the same night also became the most-watched professional women’s sports event in the U.S.

    Mike Tyson (black gloves) fights Jake Paul (silver gloves) at AT&T Stadium in Arlington, Texas, on Nov. 15, 2024.
    Kevin Jairaj | Usa Today Sports Via Reuters Con

    Friday’s highly anticipated boxing match between former heavyweight champion Mike Tyson and YouTuber-turned-boxer Jake Paul will be remembered for more than its unique card.
    The bout shown on Netflix was the most-streamed global sporting event ever with 65 million live concurrent streams and 108 million total live viewers around the world, according to a Netflix release. The Amanda Serrano and Katie Taylor fight before the Tyson-Paul match averaged 74 million live global viewers, the most-watched professional women’s sporting event ever in the U.S. with 47 million viewers, the company said.

    The event notched several other wins, including being the biggest boxing gate in history outside of Nevada.
    Both Tyson and Paul made 10-figure paydays, according to Most Valuable Promotions co-founder Nakisa Bidarian, whose company promoted the fight. Serrano and Taylor received record pay for women’s boxing, he said.
    This event was crucial for Netflix as it prepares for its Christmas Day stream of National Football League games, its first time showing the most-popular sport in the U.S. live. Viewers complained of buffering issues, but Chief Content Officer Bela Bajaria said she is not concerned about the company’s ability to stream the NFL games.
    Netflix is not the first streamer to wade into live sports. Amazon has carried Thursday Night Football games since 2022, and NBCUniversal’s Peacock streamed an NFL playoff game last season.
    Disclosure: Peacock is the streaming service of NBCUniversal, the parent company of CNBC.

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    CVS, UnitedHealth, Cigna sue to block FTC case over insulin prices

    CVS Health, UnitedHealth Group and Cigna sued the Federal Trade Commission, claiming the agency’s case against drug middlemen over high insulin prices in the U.S. is unconstitutional. 
    The complaint is the latest move in a bitter legal fight between the three largest pharmacy benefit managers, or PBMs, in the U.S. and the FTC.
    The FTC in September sued CVS’s Caremark, Cigna’s Express Scripts and UnitedHealth’s Optum Rx in the agency’s administrative court.

    CVS Pharmacy logo is seen in Washington DC, United States on July 9, 2024.
    Jakub Porzycki | Nurphoto | Getty Images

    CVS Health, UnitedHealth Group and Cigna sued the Federal Trade Commission on Tuesday, claiming that the agency’s case against drug supply chain middlemen over high insulin prices in the U.S. is unconstitutional. 
    The complaint, filed in the U.S. District Court for the Eastern District of Missouri, is the latest move in a bitter legal fight between the three largest pharmacy benefit managers, or PBMs, in the U.S. and the FTC.

    The FTC in September sued CVS’s Caremark, Cigna’s Express Scripts and UnitedHealth’s Optum Rx in the agency’s administrative court, accusing those PBMs and other drug middlemen of using a “perverse” rebate system to boost their profits while inflating insulin costs for Americans. 
    The FTC’s in-house administrative process initiates a proceeding before an administrative judge who would hear the case. FTC commissioners then vote on that opinion.
    The Tuesday complaint argues that the FTC’s process violates the companies’ due process rights under the Fifth Amendment. The companies also allege that the FTC’s claims involve private rights that must be litigated in federal court rather than in the agency’s in-house administrative court. 
    The companies called that process “fundamentally unfair,” noting that commissioners and an administrative law judge are “unconstitutionally insulated from removal by the President and thus are insulated from democratic accountability.” 
    “This sweeping attempt to reshape an entire industry via law enforcement would never pass muster in a US district court,” the complaint said. 

    In a statement Tuesday, FTC spokesperson Douglas Farrar said “it has become fashionable for corporate giants to argue that a 110-year-old federal agency is unconstitutional to distract from business practices that we allege, in the case of PBMS, harm sick patients by forcing them to pay huge sums for life saving medicine. It will not work.”
    PBMs sit at the center of the drug supply chain in the U.S. They negotiate rebates with drug manufacturers on behalf of health plans, reimburse pharmacies for prescriptions and create lists of medications covered by insurance. 
    The complaint comes a month after CVS, UnitedHealth Group and Cigna demanded FTC Chair Lina Khan and two other commissioners recuse themselves from the agency’s in-house suit. In separate motions, the companies argued that all three commissioners have an extensive track record of making public statements that indicate allegedly serious bias against the PBMs. 
    Caremark, Express Scripts and Optum Rx are all owned by or connected to health insurers and collectively administer about 80% of the nation’s prescriptions, according to the FTC.  More

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    Stellantis delays Ram electric pickup truck until 2025

    Stellantis is delaying the launch of its Ram all-electric pickup truck from this year until the first half of 2025.
    CEO Carlos Tavares on Tuesday declined to disclose specifics regarding what caused the delays as well as specific timing on the electric trucks.
    Stellantis’ upcoming electric pickups are the first on the company’s new “STLA Frame platform” for its larger trucks and Jeep SUVs.

    Stellantis’ Ram 1500 Revolution battery-electric concept pickup truck is introduced during a keynote address by Stellantis CEO Carlos Tavaras during CES 2023 at The Venetian Resort Las Vegas on January 05, 2023 in Las Vegas, Nevada. 
    Ethan Miller | Getty Images

    DETROIT — Stellantis is delaying the launch of its Ram all-electric pickup truck from this year until the first half of 2025, as the trans-Atlantic automaker continues testing the vehicle.
    CEO Carlos Tavares on Tuesday declined to disclose details about what caused the delay of the electric truck, which was expected to be followed by an extended-range “Ramcharger” that’s equipped with an electric generator and a gas engine.

    “We are just facing a very significant amount of workload, and we want to be very prudent in the way we validate the products, so we take our time, and we make sure that we manage the peak,” Tavares said during an online media event. “We don’t want to rush. … It’s better to take a few weeks more to validate properly than to rush and then to make mistakes in terms of quality. That’s what we are doing now.”
    The all-electric pickup was expected to go on sale by the end of this year, followed by the Ramcharger during the first quarter of 2025. The automaker declined to update timing of the Ramcharger.
    Tavares said work needs to be completed on the Dodge Charger Daytona and Jeep Wagoneer S EVs, which are expected to be released by the end of this year, before turning to the new trucks.

    Stellantis’ upcoming electric pickups are the first that will be built on the company’s new “STLA Frame platform” for its larger trucks and Jeep SUVs. It is expected to be a “multi-energy platform” that’s capable of internal combustion engines and hybrids, as well as electric models using batteries, fuel cells and range-extended electric propulsion systems.
    Stellantis has said the Ramcharger extended-range electric vehicle can operate as a zero-emissions EV until its battery dies and an electric onboard generator — powered by a 27-gallon, 3.6-liter V6 engine — kicks on to power the vehicle.

    The automaker reconfirmed plans Tuesday for the REV to be capable of 500 miles on a single charge as well as the Ramcharger’s expected class-leading range of up to 690 miles.
    “We are managing the peak between the products that we have ahead of us,” Tavares said. “[There’s a] huge product blitz coming to the U.S. market in the next few months.”

    2024 Dodge Charger Daytona Scat Pack EV

    Stellantis’ U.S. EV offensive is set to begin at an inopportune time for the automaker, as President-elect Donald Trump has vowed to lower or repeal many Biden administration goals and funding for all-electric vehicles.
    Last week it was reported that Trump’s transition team is planning to kill the $7,500 consumer tax credit for EV purchases as part of broader tax reform legislation. Doing so would deliver on Trump’s campaign comments about removing such incentives and EV initiatives.
    Tavares, who has criticized governments for EV regulations but also has touted the benefits of them, said the company “will adapt” to any changes made by the Trump administration.
    Correction: Stellantis delayed the launch of its all-electric Ram REV from this year until 2025. The Ramcharger truck is scheduled to launch during the first quarter of 2025. A previous version of this article misstated the timing for the Ramcharger.

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    Spirit’s woes reveal the dismal state of America’s budget airlines

    Budget airlines are rarely loved by passengers. Cutting costs to the bone and charging for every conceivable extra makes for cheap fares but often unpleasant journeys. Few will therefore have much sympathy for the tribulations of Spirit Airlines, perhaps America’s most despised low-cost carrier (lcc), which filed for chapter 11 bankruptcy protection on November 18th. Yet its failure, which illustrates the parlous state of America’s budget airlines, should worry travellers. More

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    Walmart may have to raise some prices if Trump tariffs take effect, CFO says

    Walmart CFO John David Rainey told CNBC that new tariffs could force the retailer to raise prices.
    Lowe’s CEO Marvin Ellison said the home improvement retailer is concerned about the risk of higher costs and is already having conversations with suppliers about tariffs.
    The companies joined other brands and retail trade groups in warning that the tax on imports proposed by President-elect Donald Trump could fuel inflation.

    A Walmart store in Martinez, California, US, on Monday, Nov. 18, 2024. Walmart Inc. is scheduled to release earnings figures on November 19. 
    David Paul Morris | Bloomberg | Getty Images

    Walmart’s CFO, John David Rainey, said the retailer could have to raise prices on some items if President-elect Donald Trump’s proposed tariffs take effect.
    “We never want to raise prices,” he said in an interview with CNBC on Tuesday. “Our model is everyday low prices. But there probably will be cases where prices will go up for consumers.”

    Rainey added that it’s too soon to say which products could cost more due to the tariffs.
    Walmart’s CFO weighed in on the potential policy change as the largest U.S. retailer beat Wall Street’s earnings and sales expectations and hiked its full-year forecast. Lowe’s also addressed the risk posed by the tariff proposal as the home improvement company reported earnings on Tuesday.
    Walmart’s and Lowe’s comments are the latest warnings from U.S. retail leaders about the potential blowback from from the duties. During Trump’s presidential campaign, he said he would impose a 10% to 20% tariff on all imports, including levies as high as 60% to 100% for goods from China.
    On an earnings call, Lowe’s CFO Brandon Sink said about 40% of the company’s cost of goods sold comes from outside of the U.S., including direct imports and merchandise from national brands. He said tariffs “certainly would add product costs,” but added “timing and details remain uncertain at this point.”
    In an interview with CNBC, CEO Marvin Ellison said like other consumer-facing brands and retailers, Lowe’s is concerned about the risk of higher costs. He said it’s already having conversations with suppliers about the “what ifs of tariffs,” as it waits to see what Trump’s policy change will ultimately look like.

    “We’re not waiting to act,” he said. “We’ve got plans in place. We’ve got scenarios in place, and we’re trying to understand the implications.”
    The two companies are not the only major retail stakeholders raising concerns.
    In a statement earlier this month, National Retail Federation CEO Matthew Shay described across-the-board tariffs as “a tax on American families.” He said it “will drive inflation and price increases and will result in job losses.”
    The prospect of increased prices comes as inflation has moderated in the U.S., after years of stretching consumers’ wallets.
    Other retailers and brands have also spoken out about the potential drawbacks of the tariffs. E.l.f. Beauty CEO Tarang Amin told CNBC in an interview earlier this month that the company could be forced to raise prices if the higher duties take effect. Footwear maker Steve Madden said it will reduce the goods it imports from China by as much as 45% over the next year to try to avoid the financial impact.
    The majority of goods Walmart sells are not at risk of tariffs. Rainey said about two-thirds of the items that Walmart sells are made, grown or assembled in the U.S.
    Like other companies, Walmart has tried to import from different parts of the world rather than rely heavily on China or any one country, he said. Rainey added that levies placed during Trump’s first administration already caused the company to adjust.
    “We’ve been living under a tariff environment for seven years, so we’re pretty familiar with that,” he said. “Tariffs, though, are inflationary for customers, so we want to work with suppliers and with our own private brand assortment to try to bring down prices.”
    — CNBC’s Gabrielle Fonrouge contributed to this report.

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    RFK Jr. is Trump’s pick to lead HHS — here’s what he could do with that power

    President-elect Donald Trump has tapped Robert F. Kennedy Jr., a notorious vaccine skeptic, to lead the Department of Health and Human Services.
    That selection is sounding the alarm in the public health community and leaving the biotech and pharmaceutical industries cautious of potential changes to come. 
    But there will be limits to Kennedy’s power since some of his proposals may not easily pass through Congress.

    Independent presidential candidate Robert F. Kennedy Jr. makes an announcement on the future of his campaign in Phoenix, Arizona, U.S. August 23, 2024. 
    Thomas Machowicz | Reuters

    President-elect Donald Trump has tapped Robert F. Kennedy Jr. to lead the Department of Health and Human Services – a selection that is raising fears in the public health community and leaving the biotech and pharmaceutical industries bracing for disruptions to drug development.
    Trump’s announcement on Thursday gives Kennedy, a notorious vaccine skeptic, a good chance of securing the nation’s top health-care job. The coming Republican-held Senate will ultimately decide whether to confirm him, though Trump has raised the prospect of sidestepping that process with recess appointments. 

    If confirmed, Kennedy will take the reins of a $1.7 trillion agency that oversees vaccines and other medicines, scientific research, public health infrastructure, pandemic preparedness, food and tobacco products. HHS also manages government-funded health care for millions of Americans – including seniors, disabled people and lower-income patients who rely on Medicare, Medicaid, and the Affordable Care Act’s markets.
    The heads of the Food and Drug Administration, Centers for Disease Control and Prevention, National Institutes of Health and Centers for Medicare & Medicaid Services all report to the HHS secretary, though Trump has yet to nominate them. Kennedy will likely have some influence over who the president-elect chooses for those roles, health policy experts said. 
    Some health policy experts told CNBC that Kennedy could elevate vaccine skepticism and deter more Americans from taking recommended shots, attempt to cut funding or entire departments at different agencies, and shift research and development toward more alternative treatments or disease areas of interest to him, among other efforts.
    Kennedy’s so-called Make America Healthy Again platform argues a corrupt alliance of drug and food companies and the federal health agencies that regulate them are making Americans less healthy. Kennedy has long contended that the agencies that HHS oversees need reform or a sweeping overhaul, part which could mean cutting funding, purging staff and hiring new employees who share his often disproven views on health and science. 
    He has also said he wants to remove fluoride from drinking water systems and target chronic diseases by cracking down on food and chemical additives, among other efforts.

    But there will be some limits to Kennedy’s power – even with a Republican government trifecta. Some of his proposals, such as cutting funding, may not easily pass through Congress. Other efforts could spark expensive and prolonged litigation against the federal government. 
    Spokespeople for Kennedy and Trump’s campaign did not immediately respond to requests for comment.
    Here are some of the things that Kennedy may – or may not – be able to accomplish as HHS secretary. 

    Vaccines

    Brandon Guerrero, 34, of Compton, receives both a flu and COVID-19 vaccine at CVS in Huntington Park on August 28, 2024.
    Christina House | Los Angeles Times | Getty Images

    Kennedy is a staunch critic of vaccines, which have saved the lives of more than 1.1 million children in the U.S. and saved Americans $540 billion in direct health-care costs over the last three decades, according to CDC research released in August.
    He has long made misleading and false statements about the safety of shots. He has claimed they are linked to autism despite decades of studies that debunk that association. Kennedy is also the founder of the nonprofit Children’s Health Defense, the most well-funded anti-vaccine organization in the U.S. 
    Ultimately, Kennedy’s influence over immunization policy could lead to an increase in diseases preventable by vaccines, several health policy experts told CNBC. 
    “He could create considerable distrust in vaccines and make some vaccines highly politicized, so in particularly red states, we could see outbreaks of fully preventable childhood diseases,” said Lawrence Gostin, a health law and policy expert at Georgetown University. That includes measles, mumps, rubella and polio.
    Despite his history, Kennedy told NBC News in early November that he isn’t planning to take anyone’s vaccines away in the U.S. 
    That would be a difficult task, experts said. The FDA can pull a product from the market if further trials after approval fail to confirm that its clinical benefits outweigh its risks, or if unexpected risks are detected among patients. That has not been the case with the approved shots on the market. 
    “It would be hard to imagine that a new HHS secretary would be able to immediately remove vaccines that are already approved and already being used and recommended by the government from the market,” said Josh Michaud, associate director of global health policy at KFF, a health policy research organization. “He can’t just make that change with a simple wave of a wand.”
    Still, Kennedy has repeatedly argued that there is not enough data on vaccines and their effects. He told NPR earlier this month that the Trump administration is going to “make sure those scientific studies are done and that people can make informed choices about their vaccinations and their children’s vaccinations.” 
    As HHS secretary, Kennedy could “cherry-pick” data from additional government studies and release misleading results that undermine trust in the safety and efficacy of vaccines, Gostin said.
    That misinformation could deter some Americans from receiving certain shots. Michaud added vaccine misinformation could push health officials on the state and local level to “perhaps allow for more individual choice rather than mandating routine vaccination” for certain diseases. 
    Many state health departments and clinicians rely on vaccine recommendations from an advisory committee to the CDC. Those include who should get what shots and at what age. 
    Those guidelines have broader implications for public health. Vaccines recommended by that advisory panel and approved by the CDC director are covered under the Affordable Care Act. The agency also administers the Vaccines for Children program, which provides free vaccines for children in low-income families.
    Kennedy could attempt to influence that CDC advisory committee and a similar panel linked to the FDA by stacking them with people who hold anti-vaccine views, Gostin said. The HHS secretary has the power to form an advisory committee, remove members, and set the terms and qualifications for them.
    That could produce more limited vaccine recommendations that aren’t firmly rooted in science, he added. It could also translate to a “fragmentation of vaccine policy” across the U.S. if only some states accept recommendations from advisors selected by Kennedy. 

    Federal agency funding, staffing

    Kennedy in recent weeks has pledged to end what he calls “corporate corruption” at federal health agencies and purge staff when he steps into his role in the Trump administration. 
    He has said he would clear out “entire departments” at the FDA, saying that workers who stand in the way of approval of several controversial or dubious treatments should prepare to “pack their bags.”
    Kennedy, before dropping out of the presidential race, also said he wanted to shift NIH’s focus away from infectious disease and toward chronic diseases like obesity for eight years. In September, Kennedy said half of the NIH’s $48 billion budget should go toward “preventive, alternative and holistic approaches to health.” 
    A shake-up at the NIH – the largest public funder of biomedical research in the U.S. – could have major implications for research and the pharmaceutical industry. The NIH funds and conducts research on everything from vaccines and cancer to new drug targets, laying the groundwork for treatments that companies can develop.

    More CNBC health coverage

    “He could certainly allocate funding away from drugs that he’s not interested in and more towards maybe areas that are more speculative,” said Genevieve Kanter, associate professor of public policy at the University of Southern California.
    Kanter pointed to his long history of embracing disproven treatments, such as claiming that hydroxychloroquine and ivermectin work against Covid, even though several studies say they do not. Hydroxychloroquine is an immunosuppressive drug, while ivermectin is used to treat infections caused by parasites.
    Major changes or funding cuts at the NIH, FDA and CDC would require congressional approval. Federal employees are also protected against arbitrary or politically motivated firing. 
    FDA staff are further shielded because Congress does not fully fund their salaries. Nearly half of the agency’s $7.2 billion budget this year came from so-called user fees, or payments made by drug and medical device manufacturers to fund the staff resources needed to quickly review their products, conduct inspections and ensure the safety of clinical studies.
    It seems “unlikely” that Kennedy would be able to end that user fee program, according to Richard Frank, director of the Center on Health Policy at Brookings. But he may attempt to influence negotiations around how the program is implemented when Congress decides whether to reauthorize it after 2027, Frank said.
    Gostin said other “cuts across the board” at the three agencies are possible, especially in areas that are “part of the culture wars.” The CDC could see funding reduced for key functions related to vaccines, chronic disease, sexual and reproductive health, and firearm injury and prevention, according to Gostin. 
    He added that the FDA’s nutrition departments could also see cuts or be “on the chopping block” altogether, given Kennedy’s intent to change what he calls the “broken” U.S. food system. 

    Cracking down on pharma

    Some Wall Street analysts are less concerned about Kennedy stifling drug approvals and regulation. 
    “We anticipate RFK to focus on U.S. food policy and its relationship to chronic illness, not medicine,” BMO Capital Markets analyst Evan Seigerman said in a note last week.
    Investors are already bracing for a crackdown on food policy, with shares of processed food companies, such as PepsiCo and Coca-Cola, falling on Friday.
    Wall Street has fewer immediate concerns about pharmaceutical companies. Seigerman said, “there is little precedent in recent history for HHS policy dictating or affecting FDA regulation or approval of drugs.” 
    He added that the impact on the biotech and pharmaceutical industry is still unclear until Trump selects an FDA commissioner, and that the firm is more confident that he will tap a candidate with a “robust medical background and ties to the industry.” 

    Getty Images

    Still, Kennedy appears to favor “tighter controls and intervening a bit more” in the biotech and pharmaceutical industry, according to Dave Latshaw, co-founder and CEO of artificial intelligence drug development company BioPhy. 
    That could bring some uncertainty to the drug development and approval process, which poses a greater risk to companies that primarily have products in the earlier stages of development than to large pharmaceutical companies, Latshaw added. 
    Kennedy could attempt to crack down on the biotech and pharmaceutical industry in other ways – but they may not be successful. 
    He has said he wants to ban direct-to-consumer television drug advertisements. In 2023, pharmaceutical companies spent nearly $3 billion on advertising for the 10 most promoted drugs.
    Experts said the First Amendment, which guarantees freedom of speech, would make that an extremely difficult task. Trump also tried to take on pharmaceutical advertising during his first administration by requiring companies to disclose the list prices of products in their ads. Drugmakers sued the government, and a federal court blocked the rule. 
    Kennedy’s position on the drug pricing provisions in the Inflation Reduction Act, President Joe Biden’s signature legislation, is unclear. That 2022 law gave Medicare the power to negotiate drug prices with manufacturers for the first time in history – a provision that the pharmaceutical industry is challenging in court. 
    But the Trump administration won’t have much flexibility to dismantle or scale back the law without change from Congress. It also seems unlikely Kennedy would want to scrap efforts to lower drug prices, an issue top of mind for Americans, according to Amy Campbell, associate dean for law and health sciences at the University of Illinois Chicago School of Law.

    Fluoride, food supply

    Kennedy earlier this month proposed advising all U.S. water systems to remove fluoride from drinking water, falsely claiming that it is “an industrial waste” linked to several medical conditions, such as thyroid disease and neurodevelopmental disorders. Trump has since said that idea sounds “OK to me.”
    But fluoride is a naturally occurring mineral found in soil, water and plants. Adding low levels of fluoride to drinking water is widely considered one of the greatest public health achievements of the 20th century for its role in preventing tooth decay. 
    Campbell said the decision to add fluoride to water happens at the state and local level, so Kennedy could only advise its removal. But even that could eventually lead to certain states doing away with fluoridation, she noted.
    Kennedy has been vocal about tackling the root causes of chronic diseases rather than spending resources on treating those conditions with drugs from the pharmaceutical industry. There are still few details on what exactly that would look like, but Kennedy is targeting a real issue in the U.S.
    An increasing share of people in America are dealing with multiple chronic conditions, with roughly 42% having two or more, according to the CDC. More than 40% of school-aged children and adolescents have at least one. 
    Some of Kennedy’s ideas, such as stripping ultra-processed food from school cafeterias and cracking down on food dye, have found public support on the right and left. But he has pushed misleading claims and comparisons related to food in the U.S. and how it is regulated, such as incorrectly claiming that Froot Loops cereal in Canada contains just two or three ingredients when it has 17. 
    Some experts said Kennedy could pressure the FDA commissioner to scrap or cut down the agency’s Center for Food Safety and Applied Nutrition. But banning the use of already-approved food additives would require more rather than fewer resources, experts added. They said that the process would likely involve extensive reviews of data and real-time monitoring of the food supply, among other efforts. 
    Other changes may need to be spearheaded by the U.S. Department of Agriculture, which does not fall under HHS. For example, the USDA sets guidelines that govern school lunch programs. 

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    How Chinese is Shein?

    To which country does Shein belong? The online apparel giant, headquartered in Singapore, is expected to list its shares in London in the coming months. Earlier this year Donald Tang, its executive chairman, proclaimed it to be American, by virtue of its values and the fact that it makes most of its money there. Meanwhile, most of Shein’s employees are in China, where the company was founded in 2012. All this might suggest Shein is multinational, beholden to no single country. Unfortunately, the matter of nationality is not so straightforward for a firm that straddles China and the West. More

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    Walmart hikes its outlook again as shoppers spend more outside the grocery aisles

    Walmart topped third-quarter earnings and revenue expectations.
    The retailer hiked its outlook again as it saw growth in e-commerce and improvements in sales outside of the grocery aisles.
    CFO John David Rainey said the holiday season is off to a good start, and cautioned that President-elect Donald Trump’s potential tariffs could force Walmart to raise prices.

    The Walmart logo is seen outside of one of its stores in Selinsgrove, Pennsylvania.
    Paul Weaver | Lightrocket | Getty Images

    Walmart raised its forecast on Tuesday, as its customers bought more discretionary merchandise, ordered more deliveries to their homes and started their holiday shopping.
    The discounter now expects net sales will grow between 4.8% and 5.1% for the full year. That compares to its previous forecast for between 3.75% to 4.75% sales growth for the period. The updated outlook came as Walmart posted third-quarter earnings and revenue that beat expectations. 

    In a CNBC interview, Chief Financial Officer John David Rainey said sales of general merchandise – outside of the grocery department – grew year over year for the second quarter in a row after declines for 11 straight quarters. Still, he said consumers are waiting to make those purchases until they see a compelling deal, especially as they pay more for food.
    “We’re expecting this holiday period to be very consistent with that,” he said. “They’re focused on price and value.”
    Here is what the big-box retailer reported for the period compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

    Earnings per share: 58 cents adjusted vs. 53 cents expected
    Revenue: $169.59 billion vs. $167.72 billion expected

    Walmart shares climbed about 3% in premarket trading.
    In the three-month period that ended Oct. 31, Walmart’s net income increased to $4.58 billion, or 57 cents per share, compared with $453 million, or 6 cents per share, in the year-ago period. Revenue rose from $160.80 billion in the year-ago quarter. 

    Comparable sales, an industry metric also known as same-store sales, jumped 5.3% for Walmart and 7% at Sam’s Club, excluding fuel.
    Customers visited Walmart’s stores and website in the U.S. more and tended to spend more when they did compared to the year-ago quarter. Walmart U.S. transactions rose 3.1%, and average ticket increased by 2.1% year over year. 
    E-commerce sales rose 22% in the U.S., with gains coming from curbside pickup and home delivery, along with growth in Walmart’s advertising and third-party marketplace businesses.
    Walmart shoppers have also been willing to pay more to get their purchases faster, Rainey said. For the past two quarters, 30% of customer orders in the U.S. have come with an extra fee to get delivery within a shorter timeframe, like within one hour or within three hours.
    He said Walmart’s e-commerce business is “getting very close to profitability because we’re able to use some of the cost of delivery with these incremental fees that customers are willing to pay for convenience.”
    Walmart, the nation’s largest retailer, delivered its latest sales results and read on U.S. consumers as investors gauge sentiment and weigh the outlook for the most crucial shopping season of the year.
    Retailers, including Walmart, are contending with a mixed bag of factors this holiday season. Inflation has moderated, with gas prices declining and grocery inflation remaining low year over year. Fears of a dragged-out process to determine the winner of the U.S. presidential race never materialized.
    Yet President-elect Donald Trump’s proposal for tariffs on imports from China and other countries has fueled fresh concerns about prices rising again. The holiday season is also shorter this year and parts of the U.S. have had unseasonably warm weather, two dynamics that could hurt retailers.
    Rainey said tariffs could force Walmart to increase prices, but said it’s too soon to say what merchandise may get more expensive. 
    “We never want to raise prices,” he said. “Our model is everyday low prices. But there probably will be cases where prices will go up for consumers.”
    He said about two-thirds of the items that Walmart sells are made, grown or assembled in the U.S., which reduces the tariff risk for those goods. And he added that Walmart, like other retailers, has been trying to diversify where it imports goods. 
    “We’ve been living under a tariff environment for seven years, so we’re pretty familiar with that,” he said. “Tariffs, though, are inflationary for customers, so we want to work with suppliers and with our own private brand assortment to try to bring down prices.”
    Holiday spending is expected to increase this year, but at a modest rate. The National Retail Federation, a retail trade group, said it expects holiday spending in November and December to increase 2.5% to 3.5% compared with 2023, to a range between $979.5 billion and $989 billion. That would be lower than the 3.9% year-over-year jump from the 2022 to 2023 holiday season, when spending totaled $955.6 billion.
    Rainey said the holiday period is “off to a pretty good start.” 
    He said items like TVs, Apple AirPods, Beats headphones and even tires have been selling. On the other hand, clothing and other weather-dependent purchases like space heaters have been slower because of unseasonably warm weather in parts of the country.
    Some of the general merchandise gains indicate that consumers are feeling relief from inflation, but some also have to do with Walmart’s strategy, he said. The company has deepened its assortment of toys, home goods and more through its third-party marketplace. 
    As of Monday’s close, Walmart shares are up nearly 60% this year, more than the S&P 500’s approximately 24% gains during the same period. Walmart’s stock closed on Monday at $84.08, bringing the company’s market value to $675.86 billion.

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