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FA Playbook

Despite economic uncertainty, nearly 70% of Americans plan to donate a similar amount to charity in 2022 as last year, according to a recent study from Edward Jones.
If you’re planning a charitable gift, here’s how to pick the most tax-efficient strategy.

Catherine Mcqueen | Moment | Getty Images

It’s easy to transfer cash when a charity pulls at your heartstrings. But other giving strategies may provide a bigger tax break, financial experts say.
Despite economic uncertainty, nearly 70% of Americans plan to donate a similar amount to charity in 2022 as last year, according to a recent study from Edward Jones.

Most people give cash out of convenience, but it’s generally not the most tax-efficient strategy, said certified financial planner David Foster, founder of Gateway Wealth Management in St. Louis.

More from FA Playbook:

Here’s a look at other stories impacting the financial advisor business.

While the S&P 500 is down more than 20% in 2022, investors may still have built-in gains from previous years, Foster explained.
Typically, it’s better to donate profitable assets from a brokerage account to charity because you’ll avoid paying capital gains taxes, resulting in a bigger gift to the organization. 
Of course, the decision depends on other factors and goals, such as the desire to pass wealth along to family members, Foster said.
Generally, two strategies work for the “vast majority of people,” he said.

Donor-advised funds leverage an upfront donation to an account for future gifts, and qualified charitable distributions use direct transfers to charity from an individual retirement account.
Here’s how to figure out which one is right for you.

The ‘first source of giving’ if you’re 70½ or older

There are relatively few circumstances where this would not be the first source of giving if you’re 70½ or older.

David Foster
Founder of Gateway Wealth Management

The purpose is getting money out of your pre-tax IRA without owing levies and sending the money directly to a charity, Foster said. The move reduces adjusted gross income, rather than providing a charitable deduction for filers who itemize.
“There are relatively few circumstances where this would not be the first source of giving if you’re 70½ or older,” he said.

Donor-advised funds may ‘simplify’ your giving

Another popular strategy, donor-advised funds, acts like a charitable checkbook.  
After transferring assets to a donor-advised fund, you may claim an upfront write-off if you itemize deductions, and you’re able to make future gifts from the account. 
“It can greatly simplify your giving,” said Foster, especially if you’re donating money to multiple charities. For example, rather than giving to a dozen organizations with separate reporting, there’s only one to track, he said. 

For 2022, the standard deduction is $12,950 for single filers and $25,900 for married couples filing jointly, meaning you won’t see a tax benefit for charitable gifts unless your total itemized deductions exceed these amounts.
However, it may be easier to cross these thresholds by “lumping donations” for multiple years together, said Mitchell Kraus, a CFP and owner of Capital Intelligence Associates in Santa Monica, California. 
You may claim a charitable deduction by transferring more to a donor-advised fund now and choosing the best causes for the money later, he said. More

Two Silicon Valley billionaires are holding dueling political fundraisers this week that showcase their chosen candidates in upcoming midterm elections.
LinkedIn founder Reid Hoffman, who has been rallying corporate executives to oust politicians who support false claims by former President Donald Trump that the 2020 election was rigged.
PayPal cofounder Peter Thiel has also invested heavily in midterm election races, backing conservative Republicans endorsed by Trump.

Supporters of US President Donald Trump participate in the Million MAGA March to protest the outcome of the 2020 presidential election, in front of the US Capitol on December 12, 2020 in Washington, DC.
Olivier Douliery | AFP | Getty Images

Two Silicon Valley billionaires are holding dueling political fundraisers this week that showcase their chosen candidates in this fall’s midterm elections and underscore a growing rift within the business community.
In one corner is LinkedIn founder Reid Hoffman, who has been rallying corporate executives to oust politicians who support false claims by former President Donald Trump that the 2020 presidential election was rigged against him.

On Thursday, Hoffman hosted a fundraiser in San Francisco with Twilio Chief Executive Jeff Lawson and venture capitalist Ron Conway, an early investor in Google and Paypal.
Tickets for that event, which featured an off-the-record conversation with former President Barack Obama, ranged from $36,500 to $250,000, according to a copy of the invitation obtained by CNBC. Donations from the event will go toward the Democratic Grassroots Victory Fund, which funnels money to state parties.  
Hoffman’s political adviser Dmitri Mehlhorn said that Hoffman is building a coalition within the business community to take on so-called MAGA Republicans.
The effort, dubbed Investing in US, consists of executives who are worried the MAGA movement could undermine future elections – and ultimately the rule of law that has allowed capitalism to thrive. MAGA, or Making America Great Again, has been Trump’s rallying cry since he launched his run for the White House in 2015.
“Their central mission is now anti-business,” said Mehlhorn, referring to MAGA Republicans and criticism they have directed at companies such Coke, Disney and Delta because of their social stances.

So are they going to come for us? Yes, of course. And the question is, ‘Do we fight?” said Melhorn, who shepherds the coalition for Hoffman.
But coalition faces some formidable – and familiar – opponents.
PayPal cofounder Peter Thiel has also invested heavily in midterm election races, backing conservative Republicans endorsed by Trump.
CNBC reported that Thiel plans to hold a fundraiser Friday at his Los Angeles home for his former protege Blake Masters a Republican running to represent Arizona in the Senate. Tickets for that event are going for up to $11,600.
Thiel in July sent $1.5 million to the Saving Arizona super PAC. 

Earlier this month, while speaking at the National Conservatism conference in Miami, Thiel accused Google, Apple and Facebook of causing political dysfunction in the United States.
“All these big companies are kind of screwed up,” he told the audience. “But it’s the super-structure that’s really, really deranged.” 
That message has struck a chord among conservatives.
At a congressional hearing earlier this month, Sen. Tom Cotton, R-Ark., dismissed the so-called ESG, or environmental, social and governance investment movement, as an attempt to “weaponize corporations to  reshape society in a way that voters would never endorse at the ballot box.”
Last week, the Conservative Political Action Coalition sent a letter to House Republicans calling on them to reject meetings with businesses that have spoken out on issues such as election laws, abortion, and transgender rights.
“Woke CEOs turned their backs on conservative leaders after the last election,” the letter said. “Conservatives will take control led by activists and entrepreneurs who are exhausted and offended by the radical left policies pushed by these publicly traded companies.”
But not all Republicans are on board with that approach.
Asked by CNBC whether he supports the pledge, House Minority Leader Kevin McCarthy, R-Calif., said he’s not closing any doors.
“I meet with everybody. How can you have any dialogue on how to make a change?” McCarthy said.
“It doesn’t mean whether I agree with somebody or not, but I’ll meet with anybody in the process.”
Even Thiel has suggested that Republicans may need to tone down their rhetoric in the long run.
During his Miami speech, Thiel said that the GOP does not seem to have the electoral momentum of the “Republican Revolution” led by Newt Gingrinch in 1994 or of the Tea Party movement in 2010.
And Thiel warned against simply railing against what he called “woke insanities.”
“My intuition is that the sort of nihilistic negation is probably not enough,” he said. “It might be enough to win in the midterms in ’22. It might be enough to win in ’24. But we want to have something that is somewhat more of a program-positive vision – something like that to be credible.” 
Meanwhile, Investing in US getting involved in marquee matchups across the country. For example, Hoffman and Karla Jurvetson, a Silicon Valley philanthropist who was formerly married to an early investor in SpaceX and Tesla, hosted a virtual conversation last month with Pennsylvania Attorney General Josh Shapiro, who is now the Democratic candidate for governor.
Shapiro is running against Doug Mastriano, a Republican who has been subpoenaed by the select House committee investigating the Jan. 6 Capitol riot over his alleged involvement in compiling an alternate slate of electors to hand the presidential election to Trump. In an email to his fellow executives and donors, Hoffman vowed to match the first $500,000 in contributions to Shapiro raised at his event.
“Whether or not the United States has a democratic system based on the peaceful transfer of power in 2024 depends on whether Josh Shapiro can defeat Doug Mastriano for governor of Pennsylvania this fall,” the email read.
Mehlhorn told CNBC that the results of the midterms will reveal the strength of Trump’s allies within the Republican party and determine whether their crusade against corporate America can continue.
“We believe the business community has an insufficient threat assessment of the nature of the threat,” he said. 

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People across the United States skipped work on Friday in protest of the Supreme Court decision overturning the constitutional right to an abortion.
The “Day Without Us” event comes days before the start of the next term.
Partner organizations include the Movement for Black Lives, Move On, the Women’s March and the Working Families Party.
The Supreme Court overturned Roe v. Wade in June, ending the federal right to terminate pregnancies.

An abortion rights protester participates in nationwide demonstrations following the leaked Supreme Court opinion suggesting the possibility of overturning the Roe v. Wade abortion rights decision, in Houston, Texas, May 14, 2022.
Callaghan O’hare | Reuters

People across the United States skipped work on Friday for a “Day Without Us” protest of the recent Supreme Court decision overturning the federal constitutional right to an abortion.
Organized by a group of Black women leaders, national teach-ins are being held online starting at 11:30 a.m. ET, hosted by actress and singer Naturi Naughton, with in-person gatherings in cities including Atlanta, Washington, D.C., New York City, Chicago and Oakland, California.

The event coincides with the 46th anniversary of the Hyde Amendment, which blocks federal Medicaid funding for abortion services.
And it also comes days before the next Supreme Court term, which begins Monday.
Two of the organizers, Leslie Mac and Tiffany Flowers, said the idea for the event was sparked by their dismay at the ruling in June in the case known as Dobbs v. Jackson Women’s Health Organization.
That decision reversed the federal right to abortion that had been protected since 1973 by the court’s ruling in the case Roe v. Wade.
“I was on a text thread with other powerhouse Black women who were feeling really disappointed in our leaders — devastated, hurt, confused and unsure of what was next,” said Flowers, campaign director for The Frontline, a progressive group.

“What could we do to meet the moment? Our motto is we don’t agonize, we organize,” she said.
Flowers and Mac brought together partner groups including the Movement for Black Lives, Move On, the Women’s March, MomsRising Together, March for Our Lives and the Working Families Party.
Tracey Corder, who organized the partners for the event, said, “Day Without Us is for everybody — no matter your identity — because we are all inherently worthy of bodily autonomy.”
“Every attack on our economic, political and human rights is an attack on our collective freedom, and the fall of Roe is one part of a larger project of oppression,” Corder said.
More than 60% of Americans disapprove of the Dobbs ruling, according to a NBC News poll released earlier this month.
While reproductive rights is the focus of the event, organizers say it also is being held to support progressive causes including climate change, access to housing and labor rights.
The event is for “everybody who is sick and tired of being sick and tired!” the website reads.
“This is an invitation,” Flowers said. “Both online and at local pop-ups, this all-day event will serve as a space for people to connect with each other and to connect the dots about our shared struggles. The doors of the movement are wide open and reproductive justice is the pathway forward.”

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An aerial picture taken on September 29, 2022 shows a flooded neighborhood in the aftermath of Hurricane Ian in Fort Myers, Florida.
Ricardo Arduengo | AFP | Getty Images

Hurricane Ian slammed into southwest Florida on Wednesday afternoon. The Category 4 hurricane, one of the biggest storms to ever hit the U.S., tore through the state from coast to coast.
More than 2 million people — about a quarter of the state’s utility customers — were left without power. Severe flooding damaged homes and blocked crucial roadways, leaving many trapped. Winds reaching 150 mph razed houses and businesses. At least 12 people were confirmed dead following Ian’s catastrophic path through Florida.

Newly strengthened, Ian is now headed to the Carolinas. It is expected to make landfall in South Carolina on Friday, with winds reaching 85 mph in a “life-threatening storm surge,” according to the National Hurricane Center.

Hurricane Ian left damage across marinas in Fort Myers.

A man takes photos of boats damaged by Hurricane Ian in Fort Myers, Florida, on September 29, 2022.
Giorgio Viera | AFP | Getty Images

Parts of Orlando were submerged in feet of water.

People paddle by in a canoe next to a submerged Chevy Corvette in the aftermath of Hurricane Ian in Orlando, Florida on September 29, 2022.
Jim Watson | AFP | Getty Images

Boats washed ashore in Fort Myers.

Brenda Brennan sits next to a boat that pushed against her apartment when Hurricane Ian passed through the area on September 29, 2022 in Fort Myers, Florida.
Joe Raedle | Getty Images

Some people had to be transported to safety in Orlando.

Authorities transport a person out of the Avante nursing home in the aftermath of Hurricane Ian, Thursday, Sept. 29, 2022, in Orlando, Fla.
John Raoux | AP

Members of the Florida National Guard were activated in Orlando.

Members of the Florida National Guard look for stranded residents in a flooded neighborhood in the aftermath of Hurricane Ian on September 29, 2022 in Orlando, Florida.
Paul Hennessy | Anadolu Agency | Getty Images

Fort Myers Beach was hit especially hard by Hurricane Ian.

A general view from the site after Hurricane Ian left Florida on Thursday following making landfall as a devastating Category 4 hurricane, on September 29, 2022 in Florida, United States.
Lokman Vural Elibol | Anadolu Agency | Getty Images

A section of the Sanibel Causeway was lost, cutting off access to the island community.

A section of the Sanibel Causeway was lost due to the effects of Hurricane Ian Thursday, Sept. 29, 2022, in Fort Myers, Fla.
Steve Helber | AP

Streets were flooded in Fort Myers.

Cars drive on a flooded street caused by Hurricane Ian Thursday, Sept. 29, 2022, in Fort Myers, Fla.
Marta Lavandier | AP

Meanwhile, marinas were also devastated.

An aerial picture taken on September 29, 2022 shows piled up boats in the aftermath of Hurricane Ian in Fort Myers, Florida. 
Ricardo Arduengo | AFP | Getty Images

Livestock move in a flooded field on Sanibel Island.

Livestock move in a flooded field in the aftermath of Hurricane Ian, Thursday, Sept. 29, 2022, on Sanibel Island, Fla.
Wilfredo Lee | AP

Roughly 2.6 million people continue to lack power after the storm hit Wednesday, and thousands remain stranded.

Widespread catastrophic damage has been left in much of southwestern Florida as 2.6 million people continue to lack power and thousands remain stranded.
Lokman Vural Elibol | Anadolu Agency | Getty Images

Ambulances line up in Naples to provide emergency care and transportation.

NAPLES, FL – SEPTEMBER 29: Ambulances line up on the shoulder after Hurricane Ian on September 29, 2022 in Naples, Florida. Hurricane Ian brought high winds, storm surge and rain to the area causing severe damage. (Photo by Sean Rayford/Getty Images)
Sean Rayford | Getty Images News | Getty Images

Hurricane Ian partially collapsed Sanibel Causeway.

An aerial view of a partially collapsed Sanibel Causeway after Hurricane Ian caused widespread destruction, in Sanibel Island, Florida, September 29, 2022.
Shannon Stapleton | Reuters

Vehicles float in the water after Hurricane Ian.

Vehicles float in the water after Hurricane Ian on September 29, 2022 in Bonita Springs, Florida. Hurricane Ian brought high winds, storm surge and rain to the area causing severe damage.
Sean Rayford | Getty Images

A neighborhood near Fort Myers.

Stan Pentz walks out of a Iona neighborhood after Hurricane Ian hit Florida, September 29, 2022.
Andrew West | The News-Press | USA Today Network | via Reuters

First responders with Orange County Fire Rescue check the welfare of residents as they make their way through a flooded neighborhood in Orlando.

First responders with Orange County Fire Rescue check the welfare of residents as they make their way through a flooded neighborhood in the aftermath of Hurricane Ian, Thursday, Sept. 29, 2022, in Orlando, Fla.
Phelan M. Ebenhack | AP

Aerial photos show destruction from Hurricane Ian over Fort Myers

Aerial photos show destruction from Hurricane Ian over Fort Myers, Florida

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Working conditions during the pandemic pushed many workers to organize — but fears about a potential recession could curb the union boom.
Unions can help workers secure better pay, schedules and job security, but some organizers claim their employers retaliate against them, endangering their livelihoods.
Even with talk of a potential recession, some workers say they’re undeterred given the job market.

Hannah Whitbeck (C) of Ann Arbor, Michigan, speaks as Alydia Claypool (L) of Overland Park, Kansas, and Michael Vestigo (R) of Kansas City, Kansas, all of whom say they were fired by Starbucks, listen during the “Fight Starbucks’ Union Busting” rally and march in Seattle, Washington, on April 23, 2022.
Jason Redmond | AFP | Getty Images

The union movement that kicked off across the country more than a year ago has continued its momentum in 2022, with workers in warehouses, coffee shops, grocery stores and airlines pushing for representation.
Working conditions during the pandemic pushed many of these frontline workers to organize, but fears about the economy and a potential recession could stand to curb the union boom if the job market shifts.

Unions can help workers secure better pay, schedules and job security through contract agreements, but some organizers claim their employers retaliate against them and endanger their livelihoods.
Workers like Robert “Rab” Bradlea, 32, are willing to take on this risk, despite recession talk. Bradlea scaled back his hours at Trader Joe’s Wine Store in New York City and picked up a second job as he and some of his coworkers sought to unionize.
Bradlea said the move to organize under the United Food and Commercial Workers International Union had the support of most of his coworkers. Some opposed joining a union, either because of previous experience or fear of losing their jobs. But Bradley thought only he and his fellow organizers were putting themselves at risk.
“I thought they would look for ‘bad apples’ and weed out organizers specifically, rather than torch an entire store,” Bradlea said.
Instead, before the beloved wine store could even file a petition for a union election, Trader Joe’s abruptly closed the location on Aug. 11, telling employees that same day. Trader Joe’s spokesperson Nakia Rohde said in a statement to CNBC that the grocer opted to close the “underperforming” store to support its Union Square grocery store using the wine shop’s space ahead of the holiday season.

2022’s union boom

So far, this year has proved to be a success for the labor movement. Union petitions from Oct. 1 through June 30 were up 58% over the prior year, to 1,892, according to the National Labor Relations Board.
By May of this year, petitions for the year had exceeded the total number of filings in all of last year. The NLRB has yet to release full year data, but a CNBC analysis of filings shows nearly 900 more petitions in fiscal year 2022 over last year’s numbers.
This comes at a time when public approval of labor unions continues to climb. Recent Gallup data show  71% of Americans now approve of labor unions, up from 68% last year and 64% pre-pandemic. The measure is at its highest level on record since 1965.
The job market, particularly for retail trade, accommodation, food services and transportation and warehousing workers, is still favoring employees, with a combined 1 million more job openings today in those three sectors compared with pre-pandemic levels.

“Right now in the retail space, we have so many more jobs than we do workers, and that puts disproportionate power in our hands right now because the company needs them almost as much as we need them,” said Hannah Smith, an employee at the recently unionized REI store in Berkeley, California.
REI did not respond to a request for comment from CNBC.
The shift in the balance of power has led some employers to hike pay and enhance other benefits. For example, Amazon said on Wednesday that it’s hiking average hourly pay from $18 to more than $19 for warehouse and delivery workers. The announcement comes ahead of its annual Prime Day promotion and a busy holiday season, as well as a union election in Albany next month.
As the Federal Reserve continues to aggressively raise interest rates to fight inflation and cool down the economy, market watchers, economists and executives are warning of a potential recession in 2023. If the economy cools off, the union movement may follow suit, according to Catherine Creighton, director of Cornell University’s Industrial and Labor Relations branch in Buffalo. But it seems unlikely in the short term.
“I think it will certainly make it more difficult if we do have a recession, where it’s harder for employees to find other employment, they [may] be less likely to take the risk of unionization,” Creighton said. “I don’t see that we are in that position at this point, because employers are still having a really hard time filling jobs, the baby boomers have retired and all evidence points to the fact that the labor market is going to be favorable to employees in the near future.”
For now, advocates believe the momentum will be hard to slow down. Whether it’s petitions or other wins, like a California law that creates a council to govern the fast-food industry labor conditions, 2022 has been a banner year for organizing.
“I think it’s the collective action that you’re seeing that isn’t going to get stopped by whatever the recessionary forces are, because working people have walked through fire during this pandemic, showed up every day to work, in many cases risk their lives,” said Mary Kay Henry, president of the Service Employees International Union. “And they’re ready to expect more in their work life and demand dignity and respect on the job.”

Starbucks petitions slow down

Some employees say interest in organizing has fallen somewhat as their employers appear to fight back, using tactics like shuttering stores, firing organizers and offering tantalizing benefits to non-union shops only.
At Starbucks, for example, the number of union petitions fell every month from March through August. There was a slight uptick in September with 10 petitions filed so far, according to the NLRB.

Since interim CEO Howard Schultz returned to the company in April, Starbucks has adopted a more aggressive strategy to oppose the union push and invest in its workers.
In May, the company announced enhanced pay hikes for non-unionized stores and extra training for baristas that went into effect in August. The union has said the coffee giant is illegally withholding the benefits from cafes, but Starbucks maintains it cannot offer new benefits without negotiations for union shops. Legal experts predict the benefits battle will wind up before the NLRB.
“Our focus is on working directly with our partners to reimagine the future of Starbucks. We respect our partners rights to organize but believe that working directly together – without a 3rd party – is the best way to elevate the partner experience at Starbucks,” Starbucks spokesperson Reggie Borges told CNBC.
Tyler Keeling works as barista trainer at a Starbucks in Lakewood, California, which has voted to unionize, and also is organizing other stores with Starbucks Workers United. He said the additional benefits not being offered to unionized stores has both intimidated and motivated people, and that better pay is important in this economic climate.
“People are seeing that Starbucks is willing to kind of mess with their livelihood to prevent this union, and that scares people. But at the end of the day, as far as it is driving people to not organize, it’s also driving people to organize,” Keeling said.
He added that he believes once the union makes continued progress on having fired workers reinstated and is successful in having benefits extended to union stores, there will be more headway made on petitions.
And stores are still pushing for more despite the threat of a looming recession. Billie Adeosun, Starbucks barista and organizer in Olympia, Washington, said unionizing is a “big risk,” claiming losing your job is a “real possibility,” but the prospect of successful contract negotiations with better pay and benefits is a motivator.
“Most of us make $15 to $18 an hour and none of us are working 40 hours a week, and that’s just not a living wage,” Adeosun said. “A lot of us have to get a second job or rely on government assistance to pay our bills, so yeah, we are terrified to be doing this work in spite of the economy and the fact that it is just falling apart right in front of us.”
About 240 locations out of its 9,000 company-owned cafes have voted to unionize as of Sept. 22, according to the National Labor Relations Board. But contract negotiations could help or hinder the push to unionize the nation’s largest coffee chain.
BTIG analyst Peter Saleh said signs of progress on a contract between the union and Starbucks could be one catalyst to reaccelerate organizing. On the other hand, if they don’t reach an agreement, workers can vote to decertify the union after a year.
So far, Starbucks has only begun negotiating with three stores, two in New York and one in Arizona. But the company said Monday that it sent letters to 238 cafes offering a three-week window in October to start negotiations.
And despite the petition slowdown at Starbucks, organizers’ success has inspired workers elsewhere, like Bradlea, the Trader Joe’s employee.
“Their stores are about the same number people as the Trader Joe’s wine store. This is doable, and they’re succeeding at it,” he said.

Power in the balance

Even with talk of a potential recession, some workers say they’re undeterred, given the competitive job market. Brandi McNease, organizer at a now-closed location of Chipotle Mexican Grill in Augusta, Maine, said the decision to petition was driven by the power workers have and the current economic climate.
“We looked around at the endless now-hiring signs plastered on every fast food drive-through menu and decided that we could just quit and take another job or we could fight, and if we lost, still take another job,” McNease told CNBC in an email.
The store was the first to file for a union election at the burrito chain, and the company said the location was permanently closed due to staffing challenges, not the union petition.  Workers called the move retaliatory and have filed multiple unfair labor practice charges against the company with the NLRB, McNease said.
Chipotle declined to comment.
Some workers say the last recession has informed the need for better worker protections today, and now is the time to push.
“I had coworkers who lived through the 2008 recession and had a really tough time finding jobs then,” said Smith, the REI employee in California. “Creating a union now, it felt like a way to protect for that in the future.”

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Formula One is revving up for the Singapore Grand Prix this weekend with a stunning cast of racers, but none of them are from the U.S. — and McLaren’s CEO Zak Brown has a theory about that.
“The talents are there, the resources are there. It’s really about when and where they get started and to get into Formula One,” Brown told CNBC’s John Patrick Ong. 
When asked about the absence of female racers in F1, Brown likened the situation to the one American drivers face. 

Formula One is revving up for the Singapore Grand Prix this weekend with a stunning cast of racers, but none of them are from the United States — and McLaren’s CEO Zak Brown has a theory about that.
“The talents are there, the resources are there. It’s really about when and where they get started and to get into Formula One,” Brown told CNBC’s John Patrick Ong. 

As is usually the case, this year’s F1 drivers are mostly from European countries, such as Italy, Spain, France, the United Kingdom.
“The traditional route is you start in carts in Europe and you work your way up through the European Junior formulas, and we don’t have enough American drivers.”
F1 has a series of young driver development programs based in Europe, such as the Ferrari Driver Academy in Italy and Sauber Academy.

“Because of the testing restrictions, it’s now difficult to take a driver out of America who maybe hasn’t been around these tracks,” McLaren’s CEO Zak Brown said.
Dan Mullan | Getty Images Sport | Getty Images

In the United Kingdom alone, there are a few programs like the Mercedes Junior Team, Mclaren Driver Development Programme and Williams Driver Academy. 
Brown added that testing restrictions are another barrier for American drivers.

“Because of the testing restrictions, it’s now difficult to take a driver out of America who maybe hasn’t been around these tracks,” Brown said. “We only get three days of preseason testing, so you want a driver that knows the tracks, knows the team.”
The CEO said that what F1 really needs are more American drivers in the junior formulas rising through the ranks.
“But for sure, we will have an American World Champion rider one day.”

Lack of female racers

When asked about the absence of female racers in F1, Brown likened the situation to the one American drivers face. 
“It’s about having more young girls racing karts … at seven, eight years old and having enough of them that the best rise to the top.”
“But I believe we’ll see a female racing driver, and I hope she’s driving a McLaren.”

Youth factor

McLaren recently announced it will be replacing eight-time Grand Prix winner Daniel Ricciardo with 21-year-old Oscar Piastri.
When asked if McLaren is looking at a long-term strategic shift toward young drivers, given that McLaren’s other driver Lando Norris is just a year older than Piastri, Brown said, “no, you always want a blend of experience.”

McLaren recently announced it will be replacing eight-time Grand Prix winner Daniel Ricciardo with 21-year-old Oscar Piastri (above).
Bryn Lennon – Formula 1 | Formula 1 | Getty Images

“I couldn’t be happier because all our of our big competitors have a young driver and an experienced [older] driver,” Brown said. 
“We’re lucky that we got Lando at such a young age that he’s now experienced, but also has youth.”
Norris joined the McLaren F1 racing team in 2019 at the age of 19. Prior to his F1 debut, he was a test and reserve driver for McLaren.

Tighter budget

F1 cut its cost cap to $140 million at the start of the year in the face of soaring inflation, and that’s affected how McLaren runs things. The cost cap limits how much each team is allowed to spend throughout the season. The amount is set to drop by another $5 million next year.
But although the tighter budget has made it more difficult to allocate resources, it has balanced the F1’s playing field because contractors “can’t just spend more” now, Brown said.
“Formula One, historically, has been a sport where you can spend your way out of a problem. Now you can’t because we all have a ceiling on how much we can spend.”

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After a two-year hiatus thanks to the pandemic, the Singapore Grand Prix — Formula One’s first ever night race — is roaring back this Sunday on a circuit that Oracle Red Bull’s Max Verstappen says he’s thrilled about.
Though the Belgian-Dutch racer, who’s racing for the Netherlands, said Singapore’s Marina Bay street circuit is “always a challenge,” it’s one he looks forward to.
“It is a very tough track just because it’s a street circuit … and you have to always leave a bit more margin than on [a] normal track.” 

After a two-year hiatus thanks to the pandemic, the Singapore Grand Prix — Formula One’s first ever night race — is roaring back this Sunday on a circuit that Oracle Red Bull’s Max Verstappen says he’s thrilled about.
“We’re always very excited to come here because the track is amazing to drive,” the defending champion told CNBC’s John Patrick Ong on Wednesday.

Though the Belgian-Dutch racer, who’s racing for the Netherlands, said Singapore’s Marina Bay street circuit is “always a challenge,” it’s one he looks forward to.
“It is a very tough track just because it’s a street circuit … and you have to always leave a bit more margin than on [a] normal track.” 
F1’s street circuits are generally bumpier than regular race tracks and have more corners. Of all the F1 circuits, Marina Bay’s 3-mile loop has the second-highest number of corners, with at least one safety car deployed in every race to date.

Max Verstappen wins third place and celebrates on the podium during the Singapore Grand Prix at the Marina Bay Street Circuit on Sept. 22, 2019. The Singapore Grand Prix is set to return as the Formula One’s only night race on Oct. 2.
Clive Mason | Getty Images Sport | Getty Images

“Normally, it’s one of the tougher or toughest ones on the calendar,” Verstappen said, but it’s one he will “try to win.”
Referring to the city-state’s humidity, he added that he isn’t looking forward to “[losing] a lot of fluid.”

“We haven’t been here in a while… so it will be very interesting for us to understand the track [and] how much has changed.”
The No.1 Red Bull driver boasts a 116-point lead at the top of the standings, and has a mathematical chance of winning the championship.

Hungarian Grand Prix hiccup

But things haven’t always been smooth sailing for Verstappen.
In July’s Hungarian Grand Prix, he had to start at the 10th position after a power unit hiccup during the qualifying session. In spite of that, he managed to pull off a victory.
“As a team, I think we made all the right calls, in terms of when to pit, and we jumped a few people,” he said.

Max Verstappen won the race at Hungarian Aramco Formula One Grand Prix on July 31, 2022, in Mogyorod, Hungary. Though he had to start in the 10th position after a power unit hiccup during the qualifying session, he managed to pull off a victory.
Robert Szaniszló | Nurphoto | Getty Images

In his 42nd lap, Verstappen did a 360-degree spin, which initially cost him the lead to Ferrari driver Charles Leclerc.
“You have to just try and stay patient and just wait for your moment again, and we got back into the lead and we could win the race,” he said.
“It was definitely really satisfying. Because when I woke up that day, I didn’t expect that I was going to win the race.”
Ground effect, a car design feature that F1 outlawed in 1982, was reintroduced this year. It enables drivers to follow the car in front of them more closely, allowing for more exciting wheel-to-wheel racing.
While Verstappen said he had to readjust to the newer designs at the beginning of the season, his grip on the car has been improving.
“I think you could see already on quite a few tracks that there was a bit more overtaking, a bit more racing. And I think that’s what we want to see.”

‘Sometimes second’s OK’

The Red Bull Racing team announced a multi-year partnership with cryptocurrency exchange company Bybit in February.
Verstappen drew similarities between the crypto industry and the world of F1, saying, “in a way, it’s always about risk management as well.”
“In a way that’s the same for a market right? Of course you try to make a lot of money but sometimes actually settling for maybe a safer bet can actually work out better in the long term.”

Max Verstappen of the Netherlands and Oracle Red Bull Racing celebrates his win on the podium after the Italian Grand Prix on Sept. 11, 2022 in Monza, Italy.
Dan Istitene – Formula 1 | Formula 1 | Getty Images

F1, which involves cars racing over 200mph, has always been known as a risky contest. But Verstappen expressed faith in his team’s car.
“I know that I have a car to fight for the championship, so you don’t always need to risk everything,” he said.
“Sometimes second’s OK, instead of trying to go for the ultimate goal of winning a race, it’s all about always scoring points.”

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Nike first fiscal quarter revenue was up 4% to $12.69 billion, beating estimates.
Nike net income was down 22% to $1.5 billion.
The sneaker giant said inventory on its balance sheet was up 44% to $9.7 billion, driven by continued supply chain issues.

A woman shops for shoes in the Nike Factory Store at the Outlet Shoppes at El Paso, in El Paso, Texas on November 26, 2021.
Paul Ratje | AFP | Getty Images

Nike on Thursday said it had a strong first fiscal quarter despite supply chain issues, as well as declining sales in Greater China, its third biggest market by revenue.
But Nike’s shares dropped in after-hours trading as the company described problems with overstocked inventory levels and the aggressive steps it’s taking to lower them.

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Nike and other retailers have been facing supply chain headwinds and Covid-related store closure disruptions.

Like other retailers, Nike has been facing supply chain headwinds, such as a rise in both shipping costs and shipping times in recent quarters.
Here’s how Nike did in its first fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

Earnings per share: 93 cents vs. 92 cents expected
Revenue: $12.69 billion vs. $12.27 billion expected

As delivery times and consumer demand rose this year, retailers responded by ordering inventory earlier than usual. When in-transit shipping time began to improve quickly, Nike CFO Matthew Friend said, it led to swelling inventories. 
The Nike executive noted that this, mixed with consumers facing greater economic uncertainty, promotional activity has accelerated across the marketplace, especially for apparel brands. 

“As a result, we face a new degree of complexity,” Friend said on the call with investors on Thursday, adding that Nike will look to clear inventory for specific pockets of “seasonally late products,” especially apparel. 
Nike executives said its inventory in North America alone grew 65% compared to last year, reflecting a combination of late deliveries for the past two seasons and early holiday orders that are now scheduled to arrive earlier than planned. 
That has resulted in having a few seasons’ worth of merchandise available at the same time. Because of that, Friend said, “we’ve decided to take that inventory and more aggressively liquidate it so that we can put the newest and best inventory in front of the consumer in the right locations.”
Nike reported net income for the three-month period ended Aug. 31 fell 22% to $1.5 billion, or 93 cents per share, compared with $1.87 billion, or $1.18 per share, a year earlier.
Revenue during the period was up 4% to $12.7 billion, compared with $12.2 billion a year earlier.
Recently, Nike has been shifting its strategy and looking to sell its sneakers and other merchandise directly to customers and scale back on what is sold by wholesale partners like Foot Locker. The company said on Thursday its direct sales grew by 8% to $5.1 billion, and sales for its digital-brand rose 16%. On the flip side, sales for Nike’s wholesale business sales increased by 1%.
In its first fiscal quarter, Nike said its inventory rose 44% to $9.7 billion on its balance sheet from the same period last year, which the company said was driven by supply chain issues and partially offset by strong consumer demand.
Total sales in Greater China were down 16% to about $1.7 billion, compared with nearly $2 billion a year earlier. The company has faced disruption in its business in the region, where Covid lockdowns have affected its business. Nike had said in the previous quarter it expected issues in Greater China to weigh on its business.
Meanwhile, total sales in North America, Nike’s largest market, increased 13% to $5.5 billion in the first fiscal quarter, compared with roughly $4.9 billion in the same period last year. The sneaker giant has continuously said consumer demand, especially in the U.S. market, hasn’t waned despite inflation.
The company said Thursday it expects revenue in the second fiscal quarter to grow low double digits based on strong consumer demand, despite supply chain and foreign exchange currency headwinds.
Read the company’s earnings release here.

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