Categories
Health

Firms rising extra cautious about delta variant, earnings calls present

A sign describes entry restrictions at a JLL office in the Aon Center in Chicago, Illinois, USA on Thursday, June 24, 2020.

Christopher Dilts | Bloomberg | Getty Images

When the reporting season started in earnest in mid-July, few companies asked questions or mentioned the Covid Delta variant.

That changed as new Covid-19 cases increased and the Centers for Disease Control and Prevention changed their stance on masks for vaccinated people, according to a CNBC analysis of transcripts of calls.

Between July 13 and Thursday, 142 S&P 500 companies out of 410 that reported quarterly earnings mentioned the Delta variant by name or answered a question about it in their earnings calls. Only 15% of those mentions came before July 27 – the same day the CDC said fully vaccinated people should wear masks in areas with high indoor transmission rates. New Covid cases also rose steadily as the highly contagious Delta variant became the dominant strain of the virus in the USA

The US reports a seven-day average of more than 109,000 new cases as of August 5, nearly 28% more than a week ago, according to Johns Hopkins University.

For the most part, executives said their companies did not see any significant business impact with the rise in new cases.

Becton, Dickinson & Co., a medical device company, was one of the few to report changes in consumer behavior and told analysts that fewer elective surgeries have been performed in some US states in recent weeks due to the variant. For the week ending August 1, 72% of beds in intensive care units in the United States were occupied, according to Johns Hopkins data.

But some companies with a more global footprint say it’s a different story outside of the US.

“An uneven recovery from the pandemic and an increasing delta variant in many countries around the world have once again shown us that the road to recovery will be a winding road,” said Apple CEO Tim Cook at the company’s conference call on April 27th. July.

Booking Holdings, the parent company of Kayak and OpenTable, said bookings were down 22% in July compared to 2019, a bigger decrease than the 13% decrease in June.

“In Europe, we noticed reductions in overnight stays in several of our most important countries, including Germany, France and Italy, in July,” said Booking CFO David Goulden on Wednesday at the company’s conference call.

Other companies reported supply chain disruptions as Covid cases accelerated in Asia and Europe. For example, rail operator Norfolk Southern said the Delta variant is affecting its suppliers in Southeast Asia.

“We have a couple of factories that source parts from Southeast Asia and due to manufacturing issues there, they had to bring forward scheduled production shutdowns later this year,” said chief marketing officer Alan Shaw on the company’s conference call on July 28th. “And that has now had an impact on our production and our volumes.”

The Delta variant has also led some companies to issue more conservative projections, although most companies said they don’t expect any further lockdowns in the US.

Abiomed, a medical device maker, told analysts on its conference call Thursday that the lower end of its full-year revenue forecast sees “some persistent unevenness” from the variant, even though the company raised its outlook.

Beyond Meat, which is not part of the S&P 500, said restaurant operators are more conservative with their food orders due to the uncertainty created by the Delta variant, as well as work-related challenges.

“For us, the main feature of the third quarter, and our forecast is simply a lack of visibility,” said CEO Ethan Brown on Thursday.

Categories
Health

Ceremony Assist plummets; CEO Heyward Donigan cites Covid for cautious outlook

Rite Aid CEO Heyward Donigan told CNBC on Thursday she’s “cautiously optimistic” the U.S. would avoid another round of strict Covid restrictions despite the presence of the delta variant.

“We all hope that enough people get vaccinated that we don’t have the variant become so significant that our markets shut down again,” Donigan said on “Squawk Box.”

Even so, the chief executive said the drug store chain was being judicious with its financial projections due, in part, to how unpredictable the coronavirus pandemic’s impact on business has been.

Shares of Rite Aid sank roughly 14% on Thursday, sending the company’s stock market value under $1 billion, as Wall Street digested mixed first-quarter results and weaker earnings guidance.

Rite Aid’s forecast for adjusted EBITDA — earnings before interest, taxes, depreciation and amortization — came in at $440 million and $480 million in fiscal year 2022, below estimates of $524 million, according to FactSet.

“We’re being very cautious because we had a miss last quarter due to the complete meltdown, I’ll call it, of cough, cold, flu — both in the pharmacy and in the front end because there just was no cough, cold, flu,” Donigan said, alluding to the recent surprisingly calm flu season in the U.S. and its impact on Rite Aid.

“We just didn’t realize how far down, how evaporated that business would actually be. So as we look forward, we think we need to be very cautious and prudent in our guidance,” said Donigan, who has been CEO of Pennsylvania-based Rite Aid since August 2019.

“We are expecting some improvement. We’re not expecting full improvement,” Donigan added.

She also acknowledged, “It’s very hard, it remains very hard to predict, a full-year result in a retail pharmacy in the middle of a pandemic because we are … still in the throes of this to some degree.”

The company projected full-year revenue of between $25.1 billion and $25.5 billion, which exceeded Wall Street’s expectations of $24.66 billion, according to FactSet.

Rite Aid’s outlook is not factoring in potential Covid vaccine boosters or vaccinations for children under the age of 12, Donigan noted. Trials examining the vaccine in kids under age 12 are currently ongoing.

The Food and Drug Administration cleared Pfizer’s Covid vaccine for use in kids ages 12 to 15 a little more than a month ago. Moderna, which also makes a two-dose vaccine, has asked the FDA to expand its emergency use authorization to cover adolescents from 12 to 17.

Categories
Entertainment

Performing Arts Make a Cautious Return in New York

The days are getting longer. The sun is shining. The number of New Yorkers vaccinated continues to grow every day.

And now, more than a year after the coronavirus pandemic suddenly dropped the curtains on theaters and concert halls across town and blacked out Broadway and comedy clubs alike, the performing arts are starting to bounce back.

Like budding flowers awakening just in time for spring, music, dance, theater and comedy returned cautiously over the past week as the venues were allowed to reopen with limited capacity – in most cases for the first time since March 2020.

But the pandemic remains unwieldy in New York and across the country. New York City is still a coronavirus hotspot. New cases persist at around 25,000 per week. In addition to the rush for vaccination, variants remain. And at least a number of appearances have already been postponed due to positive tests.

All of this leaves art institutions struggling to strike a delicate balance between ongoing public health concerns and a desire to serve weary New Yorkers seeking a sense of normalcy.

New York Times reporters visited some of the earliest indoor performances and spoke to the seminal viewers and staff who recorded them. Here is what they saw.

March 31

25-year-old Isaac Alexander went to the Guggenheim Museum with headphones on on a drizzly Wednesday evening and danced to the beat of Byrell the Great’s “Vogue Workout Pt. 5 ”and casually fashionable as he passed residential buildings on the Upper East Side.

He was en route to helping a friend in Masterz at Work Dance Family, a performance group led by Courtney ToPanga Washington, a transfemme choreographer from the ballroom scene. When Alexander reached the museum, he was escorted into the rotunda of the Guggenheim and pointed to a place along its spiral ramp. Like other viewers, he was masked and asked to leave immediately after the show for safety reasons.

“You can take any venue, set up a stage, invite people and turn it into a ball,” said Alexander, an artist who dances in the ballroom scene himself.

The show – a fusion of street dance, ballroom, and hip-hop – was allowed in the rotunda after the state inspected it and granted the Works & Process series special arrangements to hold socially distant performances there. The nine-person cast had spent two weeks with Washington in a quarantine bubble in New York State, whose accommodation, meals and coronavirus tests were paid for during rehearsals.

With a throbbing thump in the background, the dancers moved through intricate formations, some of which waited on the outskirts while solos and duets were in the spotlight. There were bangs and locks, pirouetting, somersaults, ducks running (a quiet, hopping walk) and cat running (a stylized walk with hips open and shoulders lowered) in exact synchronicity.

Alexander looked down from his seat and cheered the dancers during the 30-minute work. He said he hadn’t seen a show since January 2020 before the pandemic shutdown. As an artist who gets ideas when he watches his colleagues, he was happy to see a live performance.

“Now that we’re opening up again, I can feel my wings coming back,” he said. “The inspiration comes back.” JULIA JACOBS

2nd of April

It was the middle of the afternoon on a Friday, an unusual time for a show, but still the opening of “Blindness” at the Daryl Roth Theater. Only about 60 people were allowed to participate. Bundled in their parkas, they stood on the sidewalk along East 15th Street and stood on green dots.

Mayor Bill de Blasio arrived and added a pompous element to the otherwise Off Broadway soundshow. The theater staff put on emerald green jackets and matching green face coverings – “Green for go!” One employee said – that hid the smile their eyes had betrayed. For about 10 minutes, the scene near Union Square felt like a cross between a political campaign event and a Hollywood premiere.

“This is a really powerful moment,” said de Blasio on the steps of Daryl Roth’s entrance. “The theater is returning to New York City. The curtain rises again and something amazing happens. “

Updated

April 5, 2021, 12:58 a.m. ET

He and producer Daryl Roth, who gave the theater its name, greeted the guests waiting to be let inside. Some thanked the mayor for helping the performing arts return. Some asked for a selfie; others exchanged wrist and elbow bumps. There were theater-goers celebrating birthdays, people eager to post on social media, and a San Francisco artistic director who’d come to do a safety research every time his playhouse reopened.

As the audience entered the theater, they put their wrists to a machine that checked their temperatures. An usher led them to their seats, which came in pods and were spread out under a labyrinth of fluorescent tubes. As soon as everyone was settled in, a welcome message rang out over the speakers. it was greeted with cheers.

The small crowd took out headphones from sealed bags hanging from their chairs and tucked them over their ears. A couple held hands. A man closed his eyes. And “Blindness”, a haunting audio adaptation of the dystopian novel by Nobel Prize winner José Saramago, began.

For the next 75 minutes, viewers heard of a city ravaged by an epidemic of blindness. For a long time people were plunged into complete darkness in their seats; but towards the end of the show there was a glimmer of light.

“It was very familiar,” said Dean Leslie, 58, after the show. “One of the moments that really spoke to me is now – when I was back on the road.”

“It’s poetic,” he added. “It’s something we’ve all lived. We have now shared that. “MATT STEVENS

2nd of April

“Make Sure They Practice Social Distancing!” One guard called another as people descended into the dimly lit basement of the comedy basement.

About 50 spectators – a crowd of mostly 20 people smart enough to buy tickets online – sat at their tables for the club’s first live show in over a year.

Outside, two 23-year-olds were waiting on the sidewalk, hoping for the waiting list. They’d moved to New York City in the fall and decided to live together in the West Village because of the nearby music venues and comedy clubs that they couldn’t go to until Friday.

John Touhey, 27, who was lucky enough to get tickets to this first show, said his reason for coming was simple: “Just to feel something again.”

Downstairs in the club, the host of the show, Jon Laster, jumped onto the stage with a triumphant cry: “Comedy Cellar, how are you feeling?” Some of the spectators had taken off their masks as soon as they reached their tables; others waited for their food and drinks to arrive.

The pandemic was an inevitable theme of the night: it had dominated the lives of everyone in the room for the past year. Vices interviewed the mostly white crowd about where they had fled to during the pandemic months (Kansas City, Mo., Savannah, Ga., Atlanta). When he put each comic on stage, he unplugged the socket and allowed the cast to use their clean microphones, the spherical tops of which had disposable covers that looked like miniature shower caps.

Only a third of the room’s capacity was allowed, but the small crowd’s laughter filled the room. And the comedians talked to the audience as if they were old friends who were catching up after a year. Gary Vider joked about his new baby; Tom Thakkar recounted his drunken celebrations when President Biden won the election; Colin Quinn wondered why the subway still stank without the crowds. and Jackie Fabulous was telling stories about living with her mother for the first time in 20 years.

Halfway through her set, Fabulous paused and took a breath.

“I feel the adrenaline,” she said. “It’s finally settling down.” JULIA JACOBS

2nd of April

Towards the end of the last third of a performance with mixed ambient sound, classical cello, opera singing, pop music and much more, Kelsey Lu appeared in a pink floral costume and proclaimed: “Spring has sprung.”

The crowd of about 150 in the airy McCourt room of the shed giggled. And when Lu’s performance was over, the audience did something they hadn’t been able to do indoors for more than a year: They gave a standing ovation.

“You could feel it,” said Gil Perez, the Shed’s chief visitor experience officer. “The excitement, the fun, the energy of a live show – there’s nothing like it.”

The McCourt, the Shed’s flexible indoor and outdoor area, is cavernous in size (17,000 square feet) and has a high quality air filtration system. Participants entered through doors that led directly into the room and their temperatures were checked immediately. Digital programs were accessed on smartphones using a bar code on the arm of the seats, which were individually and in pairs, approximately 12 feet from the stage and six feet or more apart.

The staff checked in the audience with tablets. Ticket holders had to provide proof of vaccination or a negative Covid-19 test. They flipped through their phones to bring it up. As soon as they were cleared, they entered a timed entry line: one for 7:40 p.m. and one for 10 minutes later.

“I’m an important worker,” said Roxxann Dobbs, a 37-year-old postman as she waited to be let in and had fun. “

Ian Plowman, her husband, added, “I feel on the verge of next time in New York, the next period.”

Before and after the show, people got the looks of old friends and stood in their seats to chat. One woman congratulated another on a coronavirus vaccine. One person leaned over to a friend and remarked, “This is so beautiful!”

Alex Poots, the Shed’s artistic director and general manager, said he got “quite emotional” as the evening ended and he pondered Lu’s description of a spring awakening.

“Very nice,” he said. “I missed that so much.” MATT STEVENS

Categories
Politics

Biden advisor’s lobbyist brother has connections however is cautious on conflicts

The lobbyist brother of one of President-elect Joe Biden’s top advisors has made a name for himself for his deep connections in DC and for decades of experience serving corporate clients.

Some of Jeff Ricchetti’s former employees and clients also said he had turned down requests to lobby his brother, longtime Biden aide and new White House advisor Steve Ricchetti.

CNBC spoke to several people who worked with Jeff Ricchetti for insights into how he could go into the new year to influence lawmakers.

These discussions also provide insight into how Jeff Ricchetti could handle and potentially avoid potential conflicts of interest during in-depth administration.

CNBC reached out to Ricchetti on Wednesday. He did not return a request for comment on this story. A spokesman for the Biden transition team also did not return a request for comment.

In 2020, Jeff Ricchetti had its largest client base since 2014, according to the non-partisan Center for Responsive Politics. The surge in clients came when Biden won the Democratic primary and eventually defeated President Donald Trump in the general election.

Biden later named Steve Ricchetti, who also presided over the former Vice President’s election campaign, as his adviser to the White House. Jeff Ricchetti has signed nearly a dozen contracts this year and received lobbying fees of at least $ 635,000. Amazon is one of its newest customers, as CNBC first reported. Others are Horizon Therapeutics, Evofem Biosciences, Finseca, GlaxoSmithKline, and Applied Materials.

People who know Jeff Ricchetti say he pushes back customers seeking access to his brother. However, his staff also noted that customers will likely still get in touch with the Biden team.

“That doesn’t mean potential customers won’t come back to see him partly because of his brother,” said a lobbyist who has known Jeff Ricchetti for nearly a decade. “But he’s a professional and knows how to work properly.” This person declined to be named in order to speak freely.

A person familiar with the brothers’ relationship previously told CNBC that Jeff Ricchetti would never lobby Steve Ricchetti and that the two would keep their professional lives separate.

Before opening his company Ricchetti Inc., Jeff Ricchetti worked with Tony Podesta in the late 1990s. Steve and Jeff Ricchetti founded their company of the same name in the early 2000s.

Podesta told CNBC in an email that Jeff Ricchetti was recognized as a talented and strategic lobbyist while working there for a number of years. Podesta, the brother of former Clinton White House Chief of Staff John Podesta, was once known as the kingmaker of the Democratic Party and a major corporate lobbyist. Steve Ricchetti also served in the Clinton administration and later with Biden during President Barack Obama’s tenure as President. Steve Ricchetti was signed off as a lobbyist in 2008.

“He does things,” said Podesta. “Very talented, hard-working, strategic, easy-going, content.” Records show that Ricchetti, as a lobbyist for Podesta’s company, represented companies like Dow Chemical, Eli Lilly, Novartis, eBay, and Roche Holdings.

Marc Cadin, CEO of the professional association Finseca, told CNBC that he has known Ricchetti for almost 20 years. One of the bills that Ricchetti and other members of Cadin’s team hired Congress to do was Trump’s 2017 tax reform bill.

“Most notable is a 199A deduction that we applied to life insurance companies to give our members a significant tax break there,” said Cadin, discussing Ricchetti’s recent efforts for Finseca, which has over 6,000 members.

The IRS calls this deduction a qualified business income deduction. “The deduction allows eligible taxpayers to deduct up to 20 percent of their qualifying business income as well as 20 percent of qualifying dividends from real estate mutual funds and income from qualifying publicly traded partnerships,” the IRS website states.

Cadin, who described Ricchetti as a lobbyist with extensive expertise in tax policy, expects him to lobby the new Congress and possibly the finance department for Finseca from 2021.

“We have some problems in and around the finance department. I can see how he is doing there,” said Cadin.

He also said that, in his experience, the Ricchetti Brothers always found a way not to address ethical issues. “These people know how to do it right and how not to push boundaries,” he said.

He was hired by some of Jeff Ricchetti’s recent clients to seek the support of moderate lawmakers for progressive tax policy proposals. Biden has proposed raising taxes for the rich and corporations.

Chuck Collins, a member of the Advisory Board of the Patriotic Millionaires Advocacy, told CNBC that his organization hired Ricchetti in 2020 to get support from moderate Democrats in both the House and Senate for what was on the group’s website referred to as the “Emergency Promotion Bill”.

In an open letter to Congress leaders, including House Speaker Nancy Pelosi, D-Calif., And Senate Minority Chair Chuck Schumer, DN.Y., the group urged Congress to pass emergency relief legislation to be included in an aid package for coronaviruses. The letter said the legislation would “double the Foundation’s mandatory annual payout from five to ten percent over the next three years and require the same ten percent payout obligation for Donor Advised Funds (DAFs).”

The Charity Act campaign was run by the Patriotic Millionaires, Wallace Global Foundation, Voices for Progress, the Institute for Political Studies – Inequality Program, Solidaire Network, and Edge Funders Network.

Collins, great-grandson of meat packer Oscar Mayer, told CNBC he has known Ricchetti for over a decade. The group selected him for the project, Collins said, not because of his connections with his brother, but because of his deep insight into current and past policy makers in Washington.

“I think he has a good inner compass of what is working and what obstacles you are going to run into and whether to waste your time,” said Collins.

A Patriotic Millionaires spokesman did not return a request for comment.

Frank Clemente, executive director of Americans for Tax Fairness, a project by a progressive nonprofit called New Venture Fund, said the organization hired Ricchetti in late 2019 to drive a “millionaire side tax”. Similar to his efforts on behalf of the patriotic millionaires, Clemente said Ricchetti had targeted moderate Democrats in the house.

“We just felt like he brought something we didn’t have. He brings connections,” said Clemente.

The Americans for Tax Fairness website is promoting the additional tax as “a 10% surcharge on income over $ 2 million could raise $ 635 billion over 10 years.” Senator Chris Van Hollen, D-Md., And MP Don Beyer, D-Va., Presented the proposal to Congress in November 2019. Democrats running for president, including billionaire Mike Bloomberg and Senator Elizabeth Warren D-Mass., Also endorsed similar concepts.

When Biden ran for president, Clemente said he tried to get Ricchetti to push the Biden campaign to support the surcharge, but the longtime lobbyist declined.

“I think I asked him, ‘Can you help me with your brother?’ but it was always very clear – this was never a place to go, “said Clemente.