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Virgin Orbit stock fell in trading on Monday evening, after the company confirmed that its first launch out of the United Kingdom failed to reach orbit.
The company uses a modified 747 jet to send satellites into space, by releasing a rocket from under the aircraft’s wing mid-flight.
This was Virgin Orbit’s sixth mission to date, and its second launch failure.

Cosmic Girl, a Virgin Boeing 747-400 aircraft sits on the tarmac with Virgin Orbit’s LauncherOne rocket attached to the wing, ahead of the first UK launch tonight, at Spaceport Cornwall at Newquay Airport in Newquay, Britain, January 9, 2023.
Henry Nicholls | Reuters

Virgin Orbit stock fell in trading on Monday evening, after the company confirmed that its first launch out of the United Kingdom failed to reach orbit.
Shares of Virgin Orbit fell as much as 30% in after-hours trading, from its previous close of $1.93 a share.

The company uses a modified 747 jet to send satellites into space, by dropping a rocket from under the aircraft’s wing mid-flight – a method known as air launch.
Virgin Orbit’s webcast showed its LauncherOne rocket released and fired its engine, with the company saying in a tweet that the rocket “successfully reached Earth orbit.” But about half an hour later, the company announced the launch had “an anomaly” and that the nine satellites onboard would not reach orbit.
Virgin Orbit is reviewing the launch data to identify the source of the failure, and acknowledged that it deleted the tweet about reaching orbit. The 747 jet and its crew safely returned and landed at Spaceport Cornwall in southwest England.

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Monday’s mission was Virgin Orbit’s sixth to date, and its second launch failure.
The company conducted just two launches in 2022, short of the forecast for four to six missions that Virgin Orbit gave at the beginning of last year. At the end of the third quarter, Virgin Orbit had $71.2 million in cash on hand, and raised an additional $25 million from Richard Branson’s Virgin Group, an existing major shareholder, in the middle of the fourth quarter.

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Rolls-Royce sold a record number of cars in 2022 as demand for its $500,000 vehicles remained strong, despite recession fears, according to CEO Torsten Muller-Otvos.
“We haven’t seen any slowdown or downturn,” Muller-Otvos told CNBC. “We haven’t seen any negative impact.”

Rolls-Royce delivered 6,021 cars last year, up 8% over 2021 and the first time the company crossed the 6,000 mark. The British carmaker, which is owned by BMW, doesn’t break out its profits and revenue. But the company said the average price of a Rolls-Royce soared to $534,000 last year — thanks largely to its customization program known as Bespoke.
With Bespoke commissions customers can help design and customize their Rolls-Royce cars with everything from unique paint colors to silk-embroidered headliners, one-of-a-kind wood materials and personalized champagne chests.
The company opened an invitation-only Private Office in Dubai to better service VIP and Bespoke clients in the Middle East, the leading region for ultra-customized ‘High Bespoke’ vehicles, and said more Private Offices will open around the world in the coming months.
Still, the U.S. was the largest market overall for Rolls-Royce in 2022, accounting for nearly 35% of its global sales, Muller-Otvos said. China, its second-largest market, saw a slight decline in sales but still claimed 25% of global sales and posted its second-strongest year for the company. Muller-Otvos said China’s reopening and economic recovery could help make China its largest market in the future.
“I foresee that market being quite a stunning business for us,” he said. “Particularly in the luxury segment, it’s in growth mode. I would not be surprised to see one day China being the largest region for us worldwide.”

Rolls-Royce
Steve Christo – Corbis | Corbis News | Getty Images

The company’s SUV, the Cullinan, was its bestseller in 2022, making up about half of global sales, Muller-Otvos said. Its Ghost model accounted for over 30% of sales, while the Phantom accounted for about 10%.
Meanwhile the automaker’s biggest launch of 2022 was the Spectre, Rolls-Royce’s first electric vehicle and the beginning of its plan to become fully electric by 2030.
Spectre, with a starting price of $413,000, saw more than 300 preorders from U.S. customers before it was officially unveiled last October. Muller-Otvos said U.S. orders have continued to climb, though he declined to provide numbers.
“Definitely far more than 300,” he said. “The orderbook has exceeded our expectations — even our highest expectations.”
Rolls-Royce has a big order backlog that will help cushion the company against any potential recession, Muller-Otvos said. The backorders now stretch for nearly a year, meaning anyone purchasing a Rolls-Royce today will most likely have to wait between 10 months and a year, depending on the model and features.
As for 2023, Muller-Otvos said it’s difficult to forecast so early, but signs point to continued strength.
“I’m not saying we’re immune from recessionary tendencies. We have seen years when our business was affected. So let’s cross our fingers that isn’t happening this year. I’m cautiously optimistic about us delivering another strong year in 2023,” he said.

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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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ADMA Biologics Inc: “It’s a great spec, but it is losing money hand over fist. I think it’s very binary. I can not like binary situations.”

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AT&T Inc: “T-Mobile is the class of the field. AT&T, all I can say is, it’s not as bad as it used to [be].”

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Array Technologies Inc: “If they make the money that they’re supposed to make this year, then I think you’ll be in very good shape.”

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The new Alzheimer’s treatment Leqembi will cost an estimated $26,500 per year, according to Eisai, the company that led the drug’s development.
Most seniors who are eligible for Leqembi will have to pay out of pocket because Medicare has limited coverage to people participating in studies approved by the federal government.
“Without Medicare coverage, this drug is pretty much unaffordable,” said Tricia Neuman, a Medicare expert at the Kaiser Family Foundation.

Visoot Uthairam | Moment | Getty Images

Few seniors with early Alzheimer’s disease will have access to the new treatment Leqembi due to its high cost and very limited coverage by Medicare.
The Food and Drug Administration on Friday granted accelerated approval to Biogen and Eisai’s monoclonal antibody after the treatment appeared to modestly slow the progression of Alzheimer’s disease in clinical trial participants with mild cognitive impairment.

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The Japanese pharmaceutical company Eisai, which led the drug’s development, said Leqembi will cost an estimated $26,500 per year, though the exact price tag will vary by patient.
Most seniors who are eligible for the treatment will have to pay for it out of pocket because Medicare has limited coverage to people participating in studies approved by the federal government.
Medicare recipients have a median income of about $30,000 per year, according to Tricia Neuman, the executive director of the Kaiser Family Foundation’s Medicare policy program.
“Without Medicare coverage, this drug is pretty much unaffordable,” Neuman said. “Even with Medicare coverage, beneficiaries would still be responsible for 20% coinsurance, and that’s not a trivial amount.”
Eisai’s launch price for Leqembi came in higher than an independent estimate by the Institute for Clinical and Economic Review, a nonprofit that analyzes drug prices based on their benefit.

ICER, in a draft report, found that the drug would be cost effective for patients at a price ranging from $8,500 to $20,600 per year.
Rough estimates put the number of people ages 65 and older suffering from mild cognitive impairment due to Alzheimer’s disease at about 5 million, according to the Alzheimer’s Association
The Centers for Medicare and Medicaid Services restricted coverage back in April for a whole class of experimental Alzheimer’s drugs brought to market using the FDA’s accelerated pathway.
CMS made the decision due to safety and efficacy concerns that arose in the wake of the FDA’s controversial early approval in June 2021 of Aduhelm, which was also developed by Biogen and Eisai. Drugs like Aduhelm and Leqembi can cause brain swelling and bleeding.
An investigation by lawmakers in the House concluded that the FDA approval process for Aduhelm was “rife with irregularities.” The FDA approved the treatment despite opposition from its independent expert panel, which found that the available data did not demonstrate clear clinical benefit.
The CMS coverage limitations apply to monoclonal antibodies that target a protein called amyloid, which builds up into a plaque on areas of the brain in patients with Alzheimer’s disease.
CMS said on Friday that the coverage limitations currently apply to Leqembi, though the agency is examining the available information and could reconsider coverage based on the review’s conclusions.
“It’s not going to be widely available even to people who are potentially eligible based on whether or not they have mild cognitive impairment related to Alzheimer’s disease,” Neuman said.
Dr. Joanne Pike, president of the Alzheimer’s Association, called the coverage limitations “unprecedented and wrong” in a statement Friday. Pike said CMS denied coverage for Leqembi months ago before reviewing the available evidence.
“CMS has never done this before for any drug, and it is clearly harmful and unfair to those with Alzheimer’s,” Pike said. “Without access to and coverage of this treatment and others in its class, people are losing days, weeks, months — memories, skills and independence. They’re losing time.”
CMS plans to provide broader coverage for Leqembi if the treatment receives full FDA approval under the traditional process, according to an agency statement. But it’s not clear if or when this will happen. Eisai submitted an application to the FDA on Friday for full approval of Leqembi.
The FDA’s accelerated approval program is designed to bring drugs to market faster for patients with serious illnesses who don’t have any better options. The drug companies are continuing clinical trials, and the FDA gives its full approval if the data confirms a clinical benefit.
If the trials do not confirm a clinical benefit, the FDA can remove the drug from the market. Neuman said the stakes are high for Medicare and CMS is taking a cautious approach until there’s more data on Leqembi’s safety and effectiveness.
Clinical trial data published in the New England Journal of Medicine found that participants’ cognitive decline was 27% slower over 18 months for people who received Leqembi.
But 14% of people who received the drug suffered serious adverse events, compared with 11% of those who did not receive the treatment.
Neuman said finding a way to address the needs of people with Alzheimer’s is a “huge national challenge.” There is no cure for the disease and the drugs on the market have a limited effect, she said. Leqembi has raised hopes that the disease can at least be slowed.
“Families are struggling with the effects of Alzheimer’s with no cure in sight,” Neuman said. “So there’s a lot of pent-up demand for any drugs that could have a meaningful impact on family members who are starting to decline cognitively because they have Alzheimer’s disease.”

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A monthly housing sentiment index from Fannie Mae showed sentiment improving from November to December.
The share of respondents saying now is a good time to buy a home was still low, at just 21%, but it was up from 16% in October and November.
More consumers now believe home prices will fall in the next 12 months, and more also said they believe mortgage rates will come down.

Mortgage rates are still twice what they were a year ago, but home prices have been falling since June, and that’s finally making consumers feel better about what had been an overheated, highly competitive housing market.
A monthly housing sentiment index from Fannie Mae showed sentiment improving from November to December. The index is still lower than it was a year ago and just slightly off its record low set in October and November.

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The share of respondents saying now is a good time to buy a home was still low, at just 21%, but it was up from 16% in October. The share saying now is a bad time decreased.
On selling, however, sentiment continued to drop. The share of respondents saying now is a good time to sell dropped to 51% from 54%, while the share saying now is a bad time to sell increased.

Prospective buyers view a real estate showing.
Carline Jean | Sun Sentinel | Tribune News Service | Getty Images

More consumers now believe home prices will fall in the next 12 months, and more also said they believe mortgage rates will come down.
Prices in November, the most recent measurement, were 2.5% lower than the spring 2022 peak, according to CoreLogic. They were still over 8% higher year over year, but that annual comparison is now half of what it was in June.
The average rate on the popular 30-year fixed mortgage hit a recent high of 7.37% in October but then fell back into the mid-6% range throughout November and into December. As of last Friday it had dropped to 6.2%, according to Mortgage News Daily.

“As we enter 2023, we expect affordability to remain the top challenge for potential homebuyers, as even small declines in rates and home prices — from the perspective of the buyer — may not produce sufficient purchasing power,” said Doug Duncan, Fannie Mae’s senior vice president and chief economist, in a release. “At the same time, existing homeowners may continue to wait to list their properties, since many have already locked in lower mortgage rates, creating minimal incentive to sell and buy again until rates are more favorable.”
That tension will continue to drive home sales lower in the coming months, Duncan said.
Adding to the confidence in housing, the share of consumers who said they were concerned about losing their jobs in the next 12 months dropped from 21% to 17%. Fewer, however, said their household income is significantly higher than it was a year ago.
With the housing market now in its historically slow winter season, some agents are reporting activity is “frozen.” Pending home sales, which represent signed contracts on existing homes, dropped more than expected in November, suggesting that closed sales in January will be lower as well.
Those sellers who are braving the housing chill are offering more concessions: Roughly 42% of sellers did so in the fourth quarter, the highest share in recent years, according to Redfin, a real estate brokerage. That’s up from just over 30% in both the previous quarter and the fourth quarter of 2021, and is higher than the previous high of 40.8%, notched during the three months ending July 2020, at the start of the Covid pandemic.

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CNBC’s Jim Cramer told investors to continue staying away from tech stocks, even after their gains on Monday.
“These short-term sector rotations like we saw today — they’re irrelevant because they can’t last. Think renters, not owners. The fundamentals, now they last,” he said. 

CNBC’s Jim Cramer told investors to continue staying away from tech stocks, even after their gains on Monday.
“Just remember, if you were buying tech here off some weaker macroeconomic numbers, you’re not investing, you’re simply gambling,” he said.

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The tech-heavy Nasdaq Composite marked its second day of gains on Monday after fresh economic data from the week before raised hopes that inflation is easing and the Federal Reserve could slow its pace of interest rate hikes. 
The Dow Jones Industrial Average and S&P 500 both fell, though gains in the latter’s information technology sector helped minimize losses.
“These short-term sector rotations like we saw today — they’re irrelevant because they can’t last. Think renters, not owners. The fundamentals, now they last,” he said. 
In other words, tech stocks remain overvalued in a market that will continue to see pain, despite its recent gains, Cramer explained. He said tech companies whose stocks soared will likely have to cut expectations when they report earnings, which means their stocks will fall.
Cramer reiterated his stance that investors should suit up with recession-resistant stocks in sectors such as health care, industrials, oil and aerospace.

“They were clobbered by the end of the day, and I think many of them actually represented some great [buying] opportunities,” he said.

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JPMorgan said a full recovery in Australia’s tourism will add 0.5 percentage points to its gross domestic product and the return of international students from China will add another 0.4 percentage points.
In 2019, China accounted for 15.3% of all of Australia’s inbound tourism, making it the largest source of short-term visitors, JPMorgan said.

According to JPMorgan, a full recovery in Australia’s tourism will add 0.5 percentage points to its GDP and the return of international students from China will add another 0.4 percentage points.
James D. Morgan | Getty Images Entertainment | Getty Images

Australia’s economy could be no small beneficiary of an end to China’s zero-Covid policy over the next two years, according to JPMorgan.
“China’s shift toward an earlier reopening raises the question of potential implications for the Australian economy,” JPMorgan’s chief investment strategist Tom Kennedy said in a Saturday report.

“The largest potential upside from reopening itself sits within the services sector given China is the largest consumer of Australian tourism and education exports,” Kennedy wrote, noting that benefits from further changes to Beijing’s industrial policy would be an exception.
The firm’s note added that a full recovery in Australia’s tourism will add 0.5 percentage points to its gross domestic product and the return of international students from China will add another 0.4 percentage points — amounting to nearly a full percentage point in the nation’s economic growth.

Full tourism recovery with China

Though Australia lifted Covid-related travel restrictions in July last year, its short-term overseas arrivals are still a far cry from pre-pandemic levels.
The latest data by the Australia Bureau of Statistics showed a total of 430,470 short-term trips were made to Australia in October 2022 — 44% lower than levels seen in the same month in 2019, when the nation received more than 1 million short-term visitors.

Tourists at Mrs Macquarie’s Chair on Jan. 29, 2020 in Sydney, Australia. In 2019, China accounted for 15.3% of all of Australia’s inbound tourism, making it the largest source of short-term visitors, JPMorgan said.
Jenny Evans | Getty Images News | Getty Images

October’s data, released in December, showed visitors mostly came from New Zealand, the U.K. and the U.S. — arrivals from China were not listed on the ABS’ top 10 list of countries that the tourists came from.

In 2019, China accounted for 15.3% of all of Australia’s inbound tourism, making it the largest source of short-term visitors, JPMorgan said. It added that the average Chinese tourist’s spending was four times that of a tourist from New Zealand, the second-largest source of inbound tourists to Australia.
“Our expectation is for the tourism-related consumption impulse to be spread over 2023 and 2024,” Kennedy wrote.

“While the duration adjusted spending numbers are less striking, real GDP is an aggregate concept and so the absence of Chinese tourism has been a notable headwind,” he said.

Students from China

JPMorgan said it expects the pace of international student enrollments to accelerate this year.
According to data from Australia’s Department of Education­­­, more than 253,000 international students arrived from China in from January to October in 2019. That year-to-date number fell to roughly 173,000 in October 2022.
The latest data showed students from China made up 26% of total enrollments — the largest portion from a single country.
“If education exports to China revert to 2019 levels, the impulse to real GDP would total 0.4%-pts, a useful impulse in the environment of slowing household consumption though not a panacea to prevent a growth deceleration,” Kennedy wrote.

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The Earth’s protective ozone layer is on track to recover within four decades in a gradual process that’s expected to close a major ozone hole over Antarctica, a United Nations-backed panel of experts announced on Monday.
The findings of the scientific assessment follow the landmark Montreal Protocol in 1987, which banned the production and consumption of chemicals that eat away at the planet’s ozone layer.
The upper atmosphere ozone layer protects the Earth from the sun’s harmful ultraviolet radiation, which is linked to skin cancer, eye cataracts, compromised immune systems and agricultural land damage.

In this NASA false-color image, the blue and purple shows the hole in Earth’s protective ozone layer over Antarctica on Oct. 5, 2022. Earth’s protective ozone layer is slowly but noticeably healing at a pace that would fully mend the hole over Antarctica in about 43 years, a new United Nations report says.

The Earth’s protective ozone layer is on track to recover within four decades, closing an ozone hole that was first noticed in the 1980s, a United Nations-backed panel of experts announced on Monday.
The findings of the scientific assessment, which is published every four years, follow the landmark Montreal Protocol in 1987, which banned the production and consumption of chemicals that eat away at the planet’s ozone layer.

The ozone layer in the upper atmosphere protects the Earth from the sun’s ultraviolet radiation, which is linked to skin cancer, eye cataracts, compromised immune systems and agricultural land damage.
Scientists said the recovery is gradual and will take many years. If current policies remain in place, the ozone layer is expected to recover to 1980 levels — before the appearance of the ozone hole — by 2040, the report said, and will return to normal in the Arctic by 2045. Additionally, Antarctica could experience normal levels by 2066.
Scientists and environmental groups have long lauded the global ban of ozone-depleting chemicals as one of the most critical environmental achievements to date, and it could set a precedent for broader regulation of climate-warming emissions.

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“Ozone action sets a precedent for climate action,” World Meteorological Organization Secretary-General Petteri Taalas said in a statement. “Our success in phasing out ozone-eating chemicals shows us what can and must be done — as a matter of urgency — to transition away from fossil fuels, reduce greenhouse gases and so limit temperature increase.”
Scientists said that global emissions of the banned chemical chlorofluorocarbon-11, or CFC-11, which was used as a refrigerant and in insulating foams, have declined since 2018 after increasing unexpectedly for several years. A large portion of the unexpected CFC-11 emissions originated from eastern China, the report said.

The report also found that the ozone-depleting chemical chlorine declined 11.5% in the stratosphere since it peaked in 1993, while bromine declined 14.5% since it peaked in 1999.
Scientists also warned that efforts to artificially cool the Earth by injecting aerosols into the upper atmosphere to reflect sunlight could thin the ozone layer, and cautioned that further research into emerging technologies like geoengineering is necessary.
Researchers with the World Meteorological Organization, the United Nations Environment Program, the National Oceanic and Atmospheric Administration, the National Aeronautics and Space Administration and the European Commission contributed to the assessment.

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