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Saudi Arabia’s Public Investment Fund and the ATP tennis tour announced a multiyear partnership on Wednesday.
The PIF will become the official naming partner of the tennis tour’s rankings and will partner with ATP events in cities including Miami, Madrid and Beijing.
The PIF, with estimated assets of around $700 billion, has invested in sports including golf, boxing and motorsports along with music and entertainment ventures.

Hamad Medjedovic of Serbia plays a backhand to Arthur Fils of France in the final during day five of the Next Gen ATP Finals at King Abdullah Sports City in Jeddah, Saudi Arabia, on Dec. 2, 2023.
Adam Pretty | Getty Images

Saudi Arabia’s Public Investment Fund will become the official naming partner of the ATP Rankings and will partner with ATP Tour tennis events, including the Indian Wells and in Miami, Madrid and Beijing, plus the Nitto ATP Finals under a multiyear partnership announced Wednesday.
“Our strategic partnership with PIF marks a major moment for tennis. It’s a shared commitment to propel the future of the sport,” ATP CEO Massimo Calvelli said in a press release.

A spokesperson for ATP declined to disclose the financial terms of the deal.
PIF, with estimated assets of around $700 billion, has invested in multiple sports, along with music and entertainment ventures.

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A deal to merge the PGA Tour and the Saudi-backed LIV tour is still in negotiations and there is no deadline for the talks to end. The PIF launched the LIV tour in 2022, luring away top stars from the PGA Tour, including Phil Mickelson, Dustin Johnson and Brooks Koepka, with hundreds of millions in signing bonuses.
Critics of the Saudi fund’s sports investments have claimed it is a way for the country and Crown Prince Mohammed bin Salman to gain influence in the U.S. The crown prince controls the PIF.
“PIF will be a catalyst for growth of the global tennis landscape, developing talent, fostering inclusivity and driving sustainable innovation,” said Mohamed AlSayyad, head of corporate brand at PIF, in a press release.Don’t miss these stories from CNBC PRO: More

The Federal Aviation Administration is giving Boeing 90 days to come up with a plan to improve quality control, the agency said Wednesday.
The FAA last month launched an audit into Boeing’s 737 Max production line.
The agency has also said it will bar Boeing from expanding its production of 737 Max jets until it is satisfied with its quality controls.

An aerial photo shows Boeing 737 Max airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, on March 21, 2019.
Lindsey Wasson | Reuters

The Federal Aviation Administration is giving Boeing 90 days to come up with a plan to improve quality control, the agency said Wednesday, less than two months after a door plug blew out of a 737 Max 9 minutes into an Alaska Airlines flight.
Bolts needed to secure the unused door panel on the nearly new plane appeared to be missing, a preliminary investigation of Flight 1282 found earlier this month. The door plug was removed and reinstalled at Boeing’s Renton, Washington, 737 Max factory.

It was the latest and most serious of a series of production problems on Boeing’s bestselling aircraft.
“Boeing must commit to real and profound improvements,” FAA Administrator Mike Whitaker said in a release, a day after he met with Boeing CEO Dave Calhoun and company safety managers. “Making foundational change will require a sustained effort from Boeing’s leadership, and we are going to hold them accountable every step of the way, with mutually understood milestones and expectations.”   
Boeing in a statement said it would prepare a “comprehensive action plan with measurable criteria” and that its leadership team is “totally committed to meeting this challenge.”
The FAA is in the middle of an audit of Boeing’s 737 production lines. The agency last month said it would halt Boeing’s planned ramp-up of 737 Max planes until the regulator is satisfied with the company’s quality control systems.
On Monday, an expert panel’s report on Boeing found a “disconnect” between the manufacturer’s senior management and employees on safety culture. The report was required by Congress after two crashes in 2018 and 2019 of Boeing 737 Max planes, which killed everyone on board the flights.

The FAA said Wednesday that it expects Boeing’s plan to include findings from the report and its audit, which it is scheduled to complete in the next few weeks.
Boeing recently started conducting periodic work pauses at its factory to discuss safety and other production issues with workers.
“By virtue of our quality stand-downs, the FAA audit findings and the recent expert review panel report, we have a clear picture of what needs to be done,” Boeing said in its statement.
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Vaccine maker Novavax reported fourth-quarter revenue and earnings that missed Wall Street’s estimates and reiterated plans to cut costs as it fights to stay afloat. 
Still, Novavax narrowed its losses in the quarter from the same period a year ago, even as demand for Covid products continues to plummet worldwide. 
Novavax CEO John Jacobs said the company had some revenue move from 2023 into 2024 due to the timing of some advance purchase agreements for doses of its Covid shot.

Budrul Chukrut | Lightrocket | Getty Images

Vaccine maker Novavax on Wednesday reported fourth-quarter revenue and earnings that missed Wall Street’s estimates and reiterated plans to cut costs as it fights to stay afloat. 
Still, Novavax narrowed its losses in the quarter from the same period a year ago, even as demand for the biotech company’s Covid vaccine – its only marketable product – and other products that combat the virus continue to plummet worldwide. 

Here’s what Novavax reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

Loss per share: $1.44 vs. a loss of 45 cents expected 
Revenue: $291.3 million vs. $322 million expected

The company posted a net loss of $178.4 million, or $1.44 per share, for the quarter. That compares to a net loss of $182.2 million, or $2.28 per share, for the year-earlier quarter. 
Novavax generated fourth-quarter sales of $291.3 million, down from the $357.4 million in the year-earlier period. 
But Novavax CEO John Jacobs said the company had some revenue move from 2023 into 2024 due to the timing of some advance purchase agreements for doses of its Covid shot. 
“I wouldn’t look at it as sales that were lost … but there’s much more of a timing element than anything else,” Jacobs told CNBC in an interview. 

Novavax expects full-year 2024 revenue to come in between $800 million and $1 billion. That forecast reflects an expected $500 million to $600 million in revenue from advanced purchase agreements and $300 million to $400 million from commercial market product sales, royalties and other revenue from the company’s “partner-related activity.” 
Analysts surveyed by LSEG expect 2024 revenue of $969.6 million. 
Novavax expects first-quarter revenue to come in at $100 million, which reflects the tail end of the current Covid vaccination season. The company previously expected $300 million in sales for the period.
Novavax reiterated its plans to slash more expenses this year as part of the global cost-cutting plan it launched last year. 
The company plans to lower its combined research and development as well as selling, general and administrative expenses to a range of $700 million to $800 million in 2024. 
Novavax already shaved down those combined expenses to $1.21 billion last year. That’s $150 million more than the company’s initial target for those expenses, Jacobs noted. Those combined expenses came in at $1.69 billion in 2022. 
The company also reduced its operating expenses in 2023 by $1.1 billion, or 41%, compared to 2022. It also cut its workforce by 30% compared to the first quarter of 2023. 
The cuts will help Novavax focus on further developing its combination vaccine targeting Covid and the flu, which it plans to launch in 2026. The company expects to start a late-stage trial on that shot in the second half of the year.
Jacobs said that combination jab will open up a market that ranges between 120 and 140 million doses a year. The company’s data suggests that a large portion of people who receive separate Covid and flu shots will convert to combination options, he added.
The results come a year after the biotech company first raised concerns about its ability to stay in business. Shares of Novavax fell more than 50% last year. 
But the stock got a huge boost last week after it eliminated what some analysts considered one of the biggest uncertainties around the company. 
On Thursday, Novavax said it will settle a bitter arbitration dispute with Gavi, a nongovernmental global vaccine organization, over a canceled Covid vaccine purchase agreement. Novavax could pay around $300 to $400 million to the organization, but the total amount may be less if Gavi decides to order more shots from the company over the next five years.
If Novavax gets to settle part of the arbitration through vaccine orders, the company will be able to set a price for those doses, Jacobs said.
“We get to set that price and it allows us to control the economics of that,” he said, adding that “it would be a quite favorable way to settle that agreement through doses and again, that helps fulfill the mission” of distributing shots more equitably in lower-income countries.    More

TJX Companies reported a 13% jump in sales during its holiday quarter.
The off-price giant, which runs TJ Maxx, Home Goods and Marshall’s, has been riding high over the last year as it won over deal hungry shoppers amid persistent inflation.
Wall Street will be keen to see if the company will be able to sustain its growth.

A HomeGoods shopping cart area in front of a T.J. Maxx store in Pinole, California, US, on Wednesday, May 3, 2023.
David Paul Morris | Bloomberg | Getty Images

TJX Cos. on Wednesday said holiday sales jumped 13% as shoppers hunting for deals flocked to the off-price retailer. 
Here’s how TJX did in its fourth fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

Earnings per share: $1.22 vs. $1.12 expected
Revenue: $16.41 billion vs. $16.21 billion expected

For the quarter ended February 3, the company reported net income of $1.4 billion, or $1.22 per share, compared with $1.04 billion, or 89 cents per share, a year earlier. Excluding an additional week in the quarter, TJX reported earnings per share of $1.12.
Sales rose to $16.41 billion, up about 13% from $14.52 billion a year earlier. The prior-year period’s sales included one fewer week.
Shares rose slightly in pre-market trading. The company’s stock was up more than 7% year to date, as of Tuesday’s close.
TJX, which runs T.J. Maxx, Marshall’s and HomeGoods, has become the de facto leader in the off-price space for its ability to offer a wide range of premium, branded products and entice higher income shoppers who are looking for cheaper options in the face of persistent inflation. 
Over the last year, it raised its sales and profit guidance numerous times. Ahead of the holiday season, it struck a positive tone as other retailers issued cautious or disappointing guidance amid slowing demand and an uncertain economy. 

During the holidays, consumers were laser-focused on finding the best deals and discounts, spending record amounts on Black Friday and Cyber Monday and pulling back when promotions weren’t available. TJX was well-positioned during the period because consumers were able to shop for a wide range of gifts and at prices that tend to be lower than competitors. 
TJX’s offering has been better than usual because so many of its suppliers had high inventories throughout 2022 and 2023 and relied on the off-price retailer to help clear that gut. Now that inventories are leveling out across the industry, Wall Street will be keen to see the state of TJX’s offering and if it can sustain the growth and demand it posted over the last year. 
TJX’s guidance appears to reflect that concern. For the current quarter, it expects earnings per share of 84 cents to 86 cents, light of the higher end of Wall Street’s expectations of 82 cents to 93 cents, according to LSEG. For the full year, it expects earnings per share of $3.94 to $4.02, compared to estimates of $3.88 to $4.40.
In a research note from Jane Hali and Associates, store checks across New York, Florida, Texas and California showed “fewer notable brand names across luxury, affordable luxury and contemporary.” While inventory levels in the previous quarter were flat, some stores looked to have too much inventory and “too much clearance,” the note said. 
Read the full earnings release here.  More

One-quarter of American ultra-high-net individuals plan to buy a home this year, according to a new Douglas Elliman and Knight Frank Wealth Report.
The ultrawealthy ranked “lifestyle” and “investment” at the top of their list of priorities, followed by taxes and safety.
The report forecasts that Miami and New York will be the best-performing U.S. luxury markets this year.
Globally, the top market for luxury real estate is expected to be Auckland, New Zealand.

The Port of Fontvieille Harbor in the Principality of Monaco.
Education Images | Universal Images Group | Getty Images

The ultrawealthy are looking for a better lifestyle and strong investment when it comes to buying their next home, according to a new study.
One-quarter of American ultra-high-net individuals, or those worth $30 million or more, plan to buy a residential property this year, according to the Douglas Elliman and Knight Frank Wealth Report. The average ultra-high-net-worth individual already owns four homes, according to the report. One-quarter of their residential portfolio is outside their home country.

When it comes to priorities for their next big purchase, the ultrawealthy ranked “lifestyle” and “investment” at the top of the list, followed by taxes and safety.

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While luxury real estate has been buffeted by many of the same pressures as the rest of the market — low supply, slow sales, rising prices — the ultra-high-end has fared slightly better. Last year in the U.S., there were 34 sales over $50 million, down from 45 in 2022 but still way up from the pre-pandemic years.
With interest rates stabilizing and possibly falling this year, real estate experts say there are early signs that luxury supply may be growing, which could lead to more sales.
“If we do see a pivot to lower rates, or at least more confidence that inflation is going in the right direction, I think you will begin to see inventory building up again,” said Liam Bailey, partner and global head of research at Knight Frank.
The report forecasts that the best-performing U.S. luxury market this year for price growth will be Miami, with an expected increase of 4%, according to the report. New York ranked second in the U.S., with expected price growth of 2%, followed by Los Angeles with 1% growth.

Globally, the top market for luxury real estate is expected to be Auckland, New Zealand, with projected price growth of 10% in 2024. Mumbai ranks second, at 5.5%; followed by Dubai (5%); Madrid (5%); Sydney (5%); and Stockholm (4.5%).

Cars drive along a street in front of high-rise buildings in Dubai, on February 18, 2023. Dubai saw record real estate transactions in 2022, largely due to an influx of wealthy investors, especially from Russia.
Karim Sahib | Afp | Getty Images

Last year, the world’s top 100 luxury real estate markets posted a solid 3% gain on average price. The best-performing luxury real estate market in the world was Manila, Philippines, with 26% growth, fueled in part by investors fleeing Hong Kong and China. Dubai came in second place, at 16% price growth, followed by the Bahamas at 15% and the Algarve region in Portugal at 12%.
Among the worst performers last year were New York, with prices down 2%, and San Francisco, basically flat at 0.5%. The biggest decline in the world among prime markets was Oxford, in the U.K., down 8%.
Bailey said ultrawealthy American buyers are increasingly venturing overseas. He said U.S. buyers are now the leading foreign purchasers of ultraprime London properties — those priced above $10 million. They are also increasingly active in Europe.
“They’ve become quite a big presence, so much more noticeable now in Italy, France and Portugal particularly than they were,” Bailey said. “I think the American buyers have become much happier to explore and kind of think about alternatives.”
Still, $1 million doesn’t buy what it used to in the U.S. and abroad. In Monaco, the world’s most expensive real estate market, $1 million gets you 172 square feet of prime real estate, according to the Wealth Report. In Aspen, you get 215 square feet, while in Hong Kong, you get 237 square feet, which makes New York look like a bargain with 367 square feet.

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Rocket Lab is making steady progress on the development of its Neutron vehicle.
The company reported fourth-quarter results that saw its contract backlog soar above $1 billion, driven by a major Pentagon satellite deal.
The space company reported a net loss of $50.5 million, or 10 cents per share, for the quarter.

An Electron rocket launches the Baby Come Back mission from New Zealand on July 17, 2023.
Rocket Lab

Rocket Lab is making steady progress on the development of its Neutron vehicle, as the company reported fourth-quarter results that saw its contract backlog soar above $1 billion.
The space company reported a net loss of $50.5 million, or 10 cents per share, for the quarter. Year over year, Rocket Lab’s fourth-quarter net loss widened by about 36% as the company continues to spend heavily to create its Neutron rocket. Its full-year loss widened by a similar amount, to $182.6 million, or 38 cents per share.

Revenue grew 16% year over year in the fourth quarter to $60 million, up from $51.8 million. Its launch business made up just $8.5 million of that, as the company is coming off a multimonth hiatus in Electron missions, and its space systems made up the bulk, at $51.5 million.
Rocket Lab’s fourth-quarter revenue was just shy of the $62.9 million Wall Street expected, according to analysts surveyed by LSEG, formerly known as Refinitiv, while the net loss of 10 cents per share was in line with estimates.

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The company’s backlog of orders more than doubled year over year, bolstered significantly by a $515 million satellite contract from the Pentagon’s Space Development Agency. Rocket Lab CEO Peter Beck noted in a press release that 2023 was “a record year for securing Electron” launch deals, with the company adding 25 contracts. Launches make up $248 million of Rocket Lab’s backlog, with the remainder representing its growing space systems business.
Shares of Rocket Lab slipped 5% in after-hours trading from its close at $4.71.
Rocket Lab forecast first-quarter revenue between $92 million and $98 million.

Neutron progress and expanded spacecraft lineup

Rocket Lab

Rocket Lab gave multiple updates on the progress it’s making in developing its next-generation Neutron rocket, which aims to compete with the likes of SpaceX. Since unveiling its plans for Neutron in 2021, Rocket Lab has been spending heavily to debut the vehicle in the next year or so.
The company’s fourth-quarter investor presentation detailed several of the Neutron milestones achieved so far, including the beginning of production of rocket parts for the first launch, software simulations of launches and the completion of early testing of the Archimedes engines that will power the rocket.
Rocket Lab also detailed milestones coming up this year for Neutron, including Archimedes engine testing and structural testing of the Neutron rocket’s nose cone.
Additionally, Rocket Lab announced the expansion of its line of spacecraft products. Building upon the success of its Photon satellite bus, the company unveiled three additional spacecraft, called Lightning, Pioneer and Explorer, for a variety of customer missions, from low Earth orbit communications satellites to scientific deep space exploration of other planetary bodies.Don’t miss these stories from CNBC PRO: More

Starbucks and Workers United said they found a “constructive path forward” during mediation discussions last week.
The news signals a major step forward after a protracted standoff between the coffee giant and the union representing some baristas.
Starbucks will hike wages for unionized workers and allow credit card tipping at their cafes.

A Starbucks logo is seen as members and supporters of Starbucks Workers United protest outside of a Starbucks store in Dupont Circle, Washington, D.C., on Nov. 16, 2023.
Kevin Dietsch | Getty Images

Starbucks workers at unionized cafes will receive the pay hikes that their nonunion coworkers first collected in May 2022, a key step as the coffee giant and the union representing some baristas signaled Tuesday that they are working toward breaking a standoff over bargaining.
The wage increases are a sign of good faith from Starbucks toward Workers United, an affiliate of the Service Employees International Union that has organized more than 300 company-owned Starbucks locations.

The parties jointly announced Tuesday afternoon that they found a “constructive path forward” during mediation discussions last week. The talks were part of litigation over Workers United’s use of Starbucks’ branding, sparked by a post on social media site X from the union’s account in support of Palestinians.
Starbucks and Workers United said they have agreed to start discussions “on a foundational framework” on how to reach collective bargaining agreements for stores. The announcement marks the most noticeable thawing in the two parties’ relationship since the first Starbucks location unionized in December 2021.
If Starbucks follows through on its pledge to hike wages for union cafes, employees who have been with the company between two years and five years will receive either a 5% increase or get paid 5% above the market’s start rate, earning whichever is higher. Workers with more than five years of tenure will get a 7% increase or earn 10% more than the market’s start rate, whichever is higher.
The coffee chain implemented the wage hikes in May 2022 under the leadership of former CEO Howard Schultz, who waged an aggressive campaign against the union and faced backlash from the organization, politicians and customers for the strategy. Current CEO Laxman Narasimhan has been in the role for nearly a year.
Starbucks also said Tuesday that it would provide unionized cafes with credit card tipping, a benefit that has been available in nonunion stores for more than a year.Don’t miss these stories from CNBC PRO: More

Cava released its fourth-quarter earnings report a day early after the results appeared in news reports shortly after the market close Monday.
The Mediterranean restaurant chain topped Wall Street’s estimates for both its earnings and revenue.
Cava’s same-store sales climbed 11.4% in the fourth quarter.

A banner for the Mediterranean restaurant chain Cava is displayed outside of the New York Stock Exchange (NYSE) as the company goes public on June 15, 2023 in New York City.
Spencer Platt | Getty Images

Cava’s stock climbed as much as 15% on Tuesday after the Mediterranean restaurant chain released its earnings report a day early.
Investors were expecting Cava to announce its earnings after the bell Tuesday afternoon, but the company issued its press release Monday evening instead after early versions of the results appeared in news reports shortly after the market close.

Cava’s shares closed up 12% on Tuesday.
The company reported fourth-quarter net income of $2.05 million, or 2 cents per share, swinging from a net loss of $18.85 million, or $13.72 per share, a year earlier. Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, were expecting the company to break even for the quarter.
The chain’s revenue soared 36% to $177.1 million, topping analysts’ expectations of $174 million. Cava’s same-store sales climbed 11.4%, crushing expectations of 5.9% growth, according to StreetAccount estimates.
For 2024, Cava is planning to open between 48 and 52 new locations, adding to its footprint of 309 restaurants, as of Dec. 31. The company is forecasting same-store sales growth of 3% to 5% and adjusted earnings before interest, taxes, depreciation and amortization of $86 million to $92 million.
Cava’s shares have soared 158% since its initial public offering in June. Including Tuesday’s stock move, the restaurant chain has a market value of $6.44 billion.

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