Finance

Pan Gongsheng, head of China’s foreign exchange regulator, was named to the position of party secretary for the People’s Bank of China on Saturday.
In a country ruled by the Communist Party of China, the party secretary of an institution typically holds the most sway.
Pan’s appointment comes as Beijing continues to unfurl leadership changes, especially in financial regulation.

Pan Gongsheng was named party secretary of the People’s Bank of China on July 1, 2023.
Vcg | Visual China Group | Getty Images

BEIJING — The People’s Bank of China announced Saturday that Pan Gongsheng, head of the country’s foreign exchange regulator, would become the central bank’s party secretary.
In a country ruled by the Communist Party of China, the party secretary of an institution typically holds the most sway.

Pan’s appointment to the role comes as Beijing continues to unfurl leadership changes. The Party’s twice-a-decade congress in October and an annual parliamentary meeting in March gave President Xi Jinping an unprecedented third term.
The PBOC’s previous party secretary, Guo Shuqing, headed the China Banking and Insurance Regulatory Commission.
That institution was absorbed into the National Financial Regulatory Administration in a financial regulatory overhaul announced in March and is set to take effect this year. The administration’s party secretary and director is Li Yunze, a rare minister-level appointee of the younger 1970s generation.

PBOC Governor Yi Gang was removed from the role of deputy party secretary, according to Saturday’s announcement. The central bank did not say whether Yi would also leave his governor position.
Pan’s appointment comes as China’s economic growth has slowed and the yuan has weakened against the U.S. dollar. The central bank in June cut major interest rates for the first time in months.
Meanwhile, Beijing has increased its focus on addressing financial risks. The Chinese government this year dedicated an entire section of its annual work report to preventing and defusing major risks — especially in real estate and local government debt.

Read more about China from CNBC Pro More

Berkshire inherited Squishmallows parent Jazwares through its acquisition of Alleghany in the fourth quarter of 2022.
Jazwares founder and president, Judd and Laura Zebersky, now report to and are in regular communication with Greg Abel, Buffett’s successor.
A whopping 100 million Squishmallow units — with prices ranging from $5 to $30 — were sold last year alone.
Squishmallows have driven 40% of Jazwares’ entire revenue for the past two years.

An image of Warren Buffett at the Berkshire Hathaway Shopping Day, May 5, 2023.
Yun Li | CNBC

Shrewd business legend Warren Buffett has a whimsical side, buying companies whose products he personally enjoys like Dairy Queen and See’s Candies. Now count plush toy phenomenon Squishmallows.
Squishmallows made its Berkshire Hathaway annual meeting debut this year in Omaha, Nebraska, with shareholders snapping up 10,000 snuggly dolls in the span of hours, including ones modeled after the “Oracle of Omaha” and his longtime business partner Charlie Munger. Berkshire inherited Squishmallows parent Jazwares through its acquisition of Alleghany in the fourth quarter of 2022.

Jazwares founder and CEO Judd Zebersky and president Laura Zebersky now report to and are in regular communication with Greg Abel, Berkshire’s vice chairman for non-insurance operations and Buffett’s successor. The South Florida-based couple, who are lawyers-turned-toy-entrepreneurs, said they are excited to be under the Berkshire umbrella and enjoy having the autonomy to run their own business.
“It’s an amazing structure. We’re thrilled to be part of it,” Laura Zebersky said in an interview. “It’s better than we could have ever anticipated and being around the greatest leaders in the world is phenomenal, and being able to explore the synergies is also something we are interested in.”
The 92-year-old Buffett sang Abel’s praises recently, saying he’s taken on most of the responsibilities. Abel has been overseeing a major portion of Berkshire’s sprawling empire, including energy, railroad and retail.
While Buffett only got into Jazwares indirectly through Alleghany, he has shown the willingness to invest in far smaller businesses that don’t have the heft to move the needle in terms of Berkshire’s massive earnings and revenue. Often Buffett admires the business’ management and expects it to continue to grow and remain profitable.

Arrows pointing outwards

A whopping 100 million Squishmallow units — with prices ranging from $5 to $30 — were sold last year alone. Laura Zebersky said the pandemic turbocharged Squishmallows’ growth. Endorsements from celebrities from Kim Kardashian to Lady Gaga on TikTok also helped.

“The idea of having something that was nurturing, cozy, cuddly, it was affordable and accessible. Instant gratification,” Zebersky said. “We really touch on all walks and areas. So it’s been really interesting to see that it’s not just kids, it’s adults. Our demographic is very wide and broad and it’s very unusual in our business to have that.”
In April 2020, Jazwares bought toymaker Kellytoy, which created the Squishmallow brand in 2017.
Not a flash in the pan
In order to sustain the success of Squishmallows, Jazwares is conscious about oversaturation and tends to be very selective about partnerships, Zebersky said. The plush toy brand has driven 40% of Jazwares’ entire revenue for the past two years.
“We’re on year six of the brand … it’s not a flash in the pan,” Zebersky said. “It’s growing smartly and sustainably. We make sure we limit the amount of production. We make sure that there’s something different for each channel of retail, that there’s collectability, that there’s unique styles, unique sizes.”
Squishmallows recently announced a partnership with McDonald’s Happy Meal, which will roll across 70 different countries throughout 2023.

Arrows pointing outwards

Last month, Jazwares participated in VidCon in California, an annual convention for content creators and online brands. The company featured a pit stuffed with a sea of Squishmallows for visitors to jump into.
“We don’t do traditional marketing. We are where our fans are. And a great example of that is VidCon, the largest gathering of influencers,” Zebersky said.
Squishmallows is one of Jazwares’ fully owned intellectual property, but the company also sells products with licensed partnerships with Disney and Pokemon, etc. More

WisdomTree is attempting to launch a spot bitcoin exchange-traded fund even though its peers have failed.
The firm filed with the U.S. Securities and Exchange Commission last week, making it its second bitcoin ETF application after an initial rejection two years ago.

However, WisdomTree’s Jeremy Schwartz believes this time could be different. 
“We’ve been able to successfully launch products in Europe,” the firm’s global chief investment officer said on CNBC’s “ETF Edge” this week. “The European regulators have been more friendly, and they’ve been able to get comfortable with the mechanisms, the custodians [and] how the markets work.”
The SEC rejected WisdomTree’s previous applications in 2021 and 2022 on the notion they came in short to protect investors and the public interest.
Schwartz hopes the changes made in the firm’s updated filing will satisfy regulators.
“Some of the new filings have these data sharing agreements, surveillance sharing, new ways of doing it,” he said. “Now the question is: Will that address the SEC’s concern on market manipulation? But that is one of the things I think we’re all trying to address.”

WisdomTree’s latest launch effort comes during an increased appetite for bitcoin. As of late Friday, prices are up almost 84% so far this year.
“It’s hard for me to comment too much about all the details while you’re in these [filing] periods,” Schwartz said when “ETF Edge” host Bob Pisani asked him why he thinks the SEC will approve the spot bitcoin ETF this time. “But I think the key is, will the exchanges share data … and [will the SEC] have more comfort than what was previously done before? I think the data sharing agreements are the key element for that.”
It appears interest is climbing.
According to an SEC filing this week, Fidelity Investments is also trying to launch a spot bitcoin ETF despite its prior failures. It joins WisdomTree, BlackRock, VanEck and Invesco.

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Traders on the floor of the NYSE, June 29, 2023.
Source: NYSE

The majority of Wall Street investors believe stocks have entered a new bull market and the U.S. economy will skirt a recession in 2023, according to the new CNBC Delivering Alpha investor survey.
We polled about 400 chief investment officers, equity strategists, portfolio managers and CNBC contributors who manage money about where they stood on the markets for the third quarter and forward. The survey was conducted over the last week.

Arrows pointing outwards

Sixty-one percent of respondents believe the market has entered a new bull run, while 39% think this is a bear market rally.
Technically speaking, some have already declared a brand new bull market after the S&P 500 met the most simplistic standard by closing up 20% from its October bear market low. However, many investors do not consider it the end of a bear market until the S&P 500 reaches a new high. The all-time closing high for the broader benchmark is 4,796.56. The S&P 500 closed Thursday at 4,396.44.
The market has managed to climb a wall of worries so far this year, including rate hikes, a debt ceiling debate and a series of bank failures. The S&P 500 is about to end the first half with flying colors, up nearly 15% after four straight winning months in a row. The performance of the tech-heavy Nasdaq Composite is even more impressive — up 30% this year — amid Wall Street’s obsession with artificial intelligence.
“There are many reasons to be constructive on U.S. stocks in the second half of 2023, particularly because we have finally started to see more market breadth,” said Carol Schleif, chief investment officer at the BMO Family Office.

Arrows pointing outwards

The majority of the investors believe the economy will avoid a severe downturn at least for this year despite the Federal Reserve’s aggressive rate increases. The Fed hiked at each meeting since March 2022, a span that included four straight three-quarter point moves, before taking a break in June.

Many think the unique circumstances this time around — an unprecedented pandemic, which prompted historic fiscal and monetary responses — might result in a downturn unlike any other in the history.
“We should not expect a standard recession in this unorthodox cycle,” said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management. “The economy may instead experience rolling recessions across different segments.”

Arrows pointing outwards

In terms of where investors are putting money to work for the rest of 2023, they believe the best returns can be found in short-term Treasurys and the S&P 500 as well as foreign stock markets like Japan, China and Europe. More

The 2023 Apple Worldwide Developers Conference logo is displayed on a smartphone screen.
Rafael Henrique | Lightrocket | Getty Images

Check out the companies making headlines in midday trading Friday.
Apple — Shares of the tech giant gained more than 1%, bringing the company’s market value to more than $3 trillion, a milestone first achieved in January 2022. Citi also slapped a $240 price target on the stock, the highest on Wall Street.

Coinbase — Shares of the crypto services company slid 4% midday, pressured by a dip in the bitcoin price that followed a Wall Street Journal report that the U.S. Securities and Exchange Commission is calling recent bitcoin exchange-traded funds filings inadequate. Coinbase is the crypto custody partner for BlackRock, whose bitcoin ETF filing earlier this month set off a wave of followers and a rally in the price of bitcoin and Coinbase shares.
Pacific Biosciences — The biotech stock popped 5.8% after Goldman Sachs initiated coverage at a buy, noting the company could be at an inflection point with a new sequencing instrument.
SolarEdge — The solar stock rose 3.3% after Bank of America raised its price target to $396 from $379. The new target implies upside of more than 50% from Thursday’s close. The bank also said it has a healthy diversified structural growth story.
Bright Health Group — Shares added 2.6% in midday trading after the health insurer announced a deal to sell its California Medicare Advantage business to Molina Healthcare for roughly $600 million.
Nike — Shares of the sneaker giant fell 2.5% after Nike posted its first earnings miss in three years and reported a decline in margins for its fiscal fourth quarter, which it attributed to higher product input costs, elevated freight and logistics costs, an uptick in promotions and unfavorable currency exchange rates.

Meta Platforms — The social media stock added 2.1% after the U.K.’s Competition and Markets Authority closed its investigation into the company’s sale of Giphy to Shutterstock.
Xpeng — The Chinese electric-vehicle maker surged more than 12% after unveiling its G6 SUV, which Xpeng is pricing competitively with Tesla’s popular Model Y.
Carnival — The cruise stock climbed more than 8% after an upgrade from Jefferies to buy from hold, citing leadership changes and an improved outlook.
— CNBC’s Alex Harring, Tanaya Macheel and Sarah Min contributed reporting. More

The July 4 holiday weekend is expected to be the busiest on record. It may also come with thousands of flight delays and cancellations.
Consumers who experience a flight disruption have recourse in some cases.
U.S. Department of Transportation’s Airline Customer Service Dashboard outlines commitments that the largest airlines have made to passengers, if a disruption is their fault.

Andrew Bret Wallis | DigitalVision | Getty Images

Why are flight interruptions expected?

Over 2.8 million travelers are expected to pass through airport security checkpoints on Friday — a single-day record, according to the Transportation Security Administration.
The TSA is prepared for “sustained higher passenger volumes” throughout the summer, with June 29 through July 5 being the busiest period.
This comes as severe storms and staffing shortages have already derailed thousands of flights this week. Storms are forecast across swaths of the U.S. heading into the weekend.

A technology issue may also snarl air travel this weekend. Starting Saturday, wireless carriers will be allowed to boost their 5G signal power, and planes that aren’t retrofitted with certain equipment to prevent interference from such transmissions won’t be allowed to land when visibility is poor, as during bad weather, said Transportation Secretary Pete Buttigieg.

“It’s a whole mix of factors,” said Kimberly Palmer, personal finance expert at NerdWallet. “We do expect to see a lot of delays, unfortunately.”

What is your recourse for a delayed or canceled flight?

Travelers impacted by a flight disruption may have some recourse. But the rules differ depending on the situation and airline.
Federal law doesn’t require airlines to pay compensation to passengers for delays, Palmer said.
If airlines cancel a flight for any reason, passengers are legally entitled to a full refund, including for ticket price, taxes, baggage fees, extra charges and ancillary fees. Travelers must receive that refund within seven business days if they paid by credit card, and within 20 days if by cash or check.
“You don’t have to accept a rebooking, voucher or anything,” Murray said. “They have to give you a refund if that’s what you want.”

We do expect to see a lot of delays, unfortunately

Kimberly Palmer
personal finance expert at NerdWallet

Of course, that policy doesn’t necessarily help defray other incurred costs like food and lodging, or help travelers who would rather continue to their destination instead of accept a refund.
Here, airlines have some discretion to dole out money — especially if a delay or cancellation is their fault and not due to something beyond their control, like bad weather.
“There’s no reason not to ask,” Palmer said.
The U.S. Department of Transportation’s Airline Customer Service Dashboard outlines passenger rights for specific airlines. The list outlines commitments made by the 10 largest carriers in the event of “controllable” cancellations and delays.
“These aren’t suggestions,” Murray said of the commitments. “It’s binding.”

For example: All major carriers will rebook passengers on the same airline at no additional cost for “significant” delays and will cover meals if there’s a delay of three hours or more. Some will rebook on a partner airline at no additional cost.
All major airlines (except for Frontier) will cover a hotel stay and transportation to the hotel in the event of an overnight cancellation. Six of 10 will rebook on another airline at no extra cost. Just two offer credits or travel vouchers if a cancellation causes a wait of at least three hours.
Even if a delay isn’t their fault, many airlines will transfer your ticket to another airline’s flight with available seats at no additional cost — if you ask, according to the U.S. PIRG Education Fund.
Of course, none of these options help travelers who, in the face of a flight disruption, opt for another mode of transit like a rental car, Palmer said.
“I think this is a really common situation for people” that could come with “a lot of extra costs,” she said.

How to reduce the odds of flight woes

Here are some general travel tips from experts to reduce the odds that a delayed or cancelled flight will impact you.

Fly early in the day. This is generally when airlines experience the fewest disruptions; if there is one, passengers would likely have ample flight alternatives during the remainder of the day, depending on the route and carrier.
Try to avoid a connecting flight. Taking two flights instead of one doubles your odds of a disruption.  
Choose an airline with multiple flights per day to your location, if possible. If a disruption occurs, there are more chances to get on another flight.  
Check if your credit card offers a payout for flight delays and cancellations. If it does, and you purchased your travel with that card, you may be entitled to certain benefits. More

A shopper leaves a Nike store along the Magnificent Mile shopping district with a purchase on December 21, 2022 in Chicago, Illinois. 
Scott Olson | Getty Images

Check out the companies making the biggest moves in premarket trading:
Nike — Shares dropped nearly 3% following the sports apparel giant reported an earnings miss for the first time in three years. Nike’s fiscal fourth-quarter earnings were 66 cents per share, versus the 67 cents consensus estimate, per Refinitiv. However, revenue topped expectations.

Apple — Apple shares rose 0.8%, putting the tech giant on track to reach a $3 trillion market cap. The move came after Citi set a new price target on shares at a Street-high price of $240.
Carnival — Shares of the cruise line rose 3% in premarket trading after Jefferies upgraded Carnival to buy from hold. Jefferies cited changes during the first year new CEO Josh Weinstein’s tenure and improving leverage as reasons to be optimistic about the stock.
Savers Value Village — Shares slipped 2% in the premarket, after jumping 27% during their first day of trading Thursday. The largest for-profit thrift operator in the U.S. priced shares at $18 and closed at $22.91.
Dominion Energy — Shares fell nearly 2% after the company revised its second-quarter operating earnings guidance range to 44 cents to 50 cents a share, down from 58 cents to 68 cents per share. Dominion Energy blamed historically mild weather and unplanned outages at the Millstone Power Station.
Constellation Brands — The Corona and Pacifico owner slipped 1.6% despite reporting an earnings beat. First-quarter adjusted earnings per share came in at $2.91, topping the $2.83 expected from analysts, per StreetAccount. Revenue was $2.52 billion, versus the $2.47 billion expected.

Freyr Battery — The stock popped another 5% in premarket trading, following an 11% gain on Thursday. The company was upgraded to overweight from equal weight by Morgan Stanley on Thursday.
— CNBC’s Sam Subin, Jesse Pound and Alex Harring contributed reporting. More

An employee scans an order in the shipping area at the Overstock.com distribution center in Salt Lake City, Utah.
Ken James | Bloomberg | Getty Images

Check out the companies making headlines in midday trading.
Freyr — Freyr Battery surged 18% after Morgan Stanley upgraded the battery maker to overweight from equal weight. Analyst Adam Jonas’ $13 price target implies more than 70% upside from Wednesday’s close for the stock.

Wells Fargo, JPMorgan Chase, Bank of America — All three banks were trading higher Thursday after passing a key annual stress test Wednesday, showing the central bank that the firms could adequately withstand a recession scenario. Wells Fargo climbed 3.4% while JPMorgan and Bank of America added more than 2% each.
Tenaris — The pipe manufacturer rose 2.4% after Jefferies initiated coverage of the stock at a buy, citing a compelling risk/reward ratio. The firm said shares can rise more than 45%.
Micron Technology — The chip stock dropped 3.4%. Micron reported revenue of $3.75 billion late Wednesday, topping the $3.65 billion expected by analysts, per Refinitiv. Micron said it believes the memory chip industry has passed its trough in revenue, but said its situation in China — which announced in May it would bar some purchases of Micron’s products — “remains uncertain and fluid.”
Occidental Petroleum — Shares of the oil giant rose nearly 1% after Warren Buffett’s Berkshire Hathaway once again increased its stake. The conglomerate purchased an additional 2.1 million Occidental shares Monday, Tuesday and Wednesday, boosting its stake in the Houston-based energy producer to 25.1%.
Joby Aviation — Shares climbed nearly 14% in midday trading. The company announced a $100 million investment earlier Thursday from SK Telecom. The stock has been on a hot streak this week. On Wednesday, shares surged 40% after the company said it received a permit to begin flight testing its first electric vertical takeoff and landing aircraft.

Overstock.com — Stock in the online retailer added 16% Thursday after the company closed a deal to purchase the Bed Bath & Beyond brand out of bankruptcy.
Sigilon Therapeutics — Shares soared more than 500% on news that pharmaceutical company Eli Lilly would purchase Sigilon for as much as $126.56 per share.
BioXcel Therapeutics — BioXcel stock plummeted 65% after the company reported an issue with the timeliness of correspondence between a principal investigator with the U.S. Food and Drug Administration concerning a phase 3 trial for an Alzheimer’s treatment.
— CNBC’s Michelle Fox, Alex Harring, Sarah Min and Yun Li contributed reporting. More