MV TELEGRAPH

A picture taken on February 28, 2021 shows palm trees on the empty “Promenade des Anglais” in Nice on the French Riviera.

VALERY HACHE | AFP | Getty Images

LONDON – Airlines in Europe see sunshine and beaches as their way to make money again.

The sector has been badly hit by the coronavirus pandemic and people have been advised to stay home. Lufthansa announced on Thursday that the number of passengers had decreased by 75% between 2019 and 2020. This underscores the devastating impact many airlines have had since the Covid hit.

However, they are currently examining ways to adjust business models as economies seek to reopen in the coming months.

“European airlines will focus on vacation travel,” Adrian Yanoshik, a stock analyst at Berenberg, told CNBC on Wednesday. “This is a tactical answer. You follow the flow of people,” he said.

Given the easing of restrictions in European economies, people are expected to try to go on vacation as soon as possible after about a year at home. In contrast, it takes longer for business trips to recover.

I think we’ll see a little less business travel and more vacation travel.

Rickard Gustafson

CEO of Scandinavian Airlines

“Will I be making the one-day trip from London to New York for a three-hour meeting? Probably not, so this will have some impact on business travel,” Keith Barr, CEO of IHG Hotels & Resorts, told CNBC’s “Squawk” Box Europe “last Month.

Rickard Gustafson, CEO of Scandinavian Airlines, also expects “some significant changes in the dynamics of the (airline) market”.

“I think we’ll see a little less business travel and more vacation travel,” he told CNBC. “We have to adapt our operations more to the seasonality than we do today,” he added.

Low-cost airlines like Ryanair and easyJet have always tempted customers to take breaks in sunny European destinations like Greece, Spain and Italy. However, more airlines such as Lufthansa and British Airways, which traditionally cater to those who travel for work, could do the same.

“Business travel will be above 2019 levels by the end of the decade,” Stephen Furlong, senior analyst at wealth management firm Davy, told CNBC on the phone, adding that “leisure (travel) could snap back very quickly.”

Another mix of cabins

Business travel has led airlines to develop business class, premium seats and loyalty cards. However, as part of a new focus on leisure, analysts expect a different aircraft layout.

“You will get a cabin reconfiguration,” said Furlong, mentioning that business class will be a much smaller part of the aircraft. “The size of the plane is (also) smaller,” he added.

When you consider how low-cost airlines have traditionally organized their aircraft, the focus is far less on premium customers. In fact, for example, Ryanair does not have a frequent flyer loyalty card.

People sit on the “Castel” beach along the “Promenade des Anglais” on the French Riviera in Nice, southern France.

VALERY HACHE | AFP | Getty Images

“This is probably a temporary phenomenon. You will focus on business (travel) again,” said Yanoshik from Berenberg.

However, as more airlines focus on vacation travel in the short to medium term, he added that ticket prices “will be weak”.

Vaccination records

European airlines hope vaccine passports will be used to restore lost businesses this year.

The idea of ​​a vaccination pass is still debated by European politicians, but the travel industry sees it as a must that some trips can return during this summer season.

“IATA is pushing extremely hard within the industry,” Andrew Lobbenberg, equity analyst at HSBC, told CNBC.

The International Air Transport Association is currently working on a passport, a digital platform where passengers can upload their health information. She has asked the EU heads of state and government to introduce vaccination records so that customers can feel safe again.

Vaccination records “will be part of the reopening of air traffic,” said Lobbenberg.

In this handout image from SportsPro, Dan Porter, overtime speaks during the SportsPro OTT USA 2020 Summit at Turner Studios on February 19, 2020 in Atlanta, Georgia.

John Nowak | SportsPro | Getty Images

Dan Porter, CEO of Overtime, is losing his mind?

The sports company’s co-founder recalled the reaction of former National Basketball Association commissioner David Stern when he was building another Hoops League.

Overtime announced Thursday that it plans to create a basketball league for 16-18 year olds that can earn them at least $ 100,000 a year.

The Overtime Elite League allows players to bypass traditional high school and college levels while building their brand before qualifying for the NBA. It will start in September with 30 players and will take place in a single location that is still under discussion.

In an interview on Wednesday, Porter confirmed that overtime would pay for all health insurance and allow players to earn bonuses and equity in overtime. He also recalled the star’s skepticism.

“It’s a pretty interesting opportunity,” Porter said of OTE’s launch.

Overtime distributes original sports content on social media, including Snapchat, Google’s YouTube, and Facebook’s Instagram, and sells apparel with logos and branding. Most of the content revolves around high school or other amateur players, but no highlights or materials from major sports leagues are licensed.

Porter and Zachary Weiner, both former William Morris Endeavor executives, formed Overtime in 2016 with investments from Stern and others.

Since then, the company has built a massive Generation Z followed by high school basketball players. The company has over 40 million followers on its social media channels and has built credibility among NBA stars like Zion Williamson and Atlanta Hawks point guard Trae Young.

The company says its content is streamed over 1.7 billion times a month across all social platforms – mostly from Gen Z. According to surveys, this group of 13- to 24-year-olds prefer highlights and fast-paced sports content over traditional formats they prefer Basketball versus other sports.

Overtime’s revenue comes from two sources. You target brands indirectly by incorporating them into their content and making money from video ads. The other is direct revenue from e-commerce, where Porter says the company makes “millions of dollars” in clothing.

“Just like with a sports team, when you buy a hat or jersey,” Porter said, “people feel part of that community and they buy clothes to represent that. We believe there is a great opportunity to lean into the essentials. ” Basketball for young people and create a clothing brand. “

Overtime refused to disclose its financial information.

With OTE, Porter expects the sales model to change a little “from e-commerce and media to e-commerce, media, rights and licenses similar to a league”. He said OTE would eventually sell its media rights.

“Not early. We’ll take our time,” said Porter.

Overtime also has active conversations for brand partners and sales for the league.

LaMelo Ball # 2 of the Charlotte Hornets dribbles the ball during the first half of an NBA basketball game at the Chase Center on February 26, 2021 in San Francisco, California against the Golden State Warriors.

Thearon W. Henderson | Getty Images

A new basketball farm system?

Porter said he spoke to families of elite athletes for two years to get information about OTE. He said families frowned upon the current path to the professionals where prominent colleges earn millions of talent in exchange for free education.

OTE says it will provide world-class education, residencies and training, and offer advanced analysis of players’ performance to help them improve. The big advantage, however, is that OTE gives players the right to benefit from their brands while getting paid to participate.

“We’re the only country in the world that forces you to go to high school and then to college to become a professional athlete, at least in basketball and soccer,” Porter said.

As part of its collective agreement, the NBA prohibits players under the age of 19 from entering the league. Some players attend college for at least a year while awaiting eligibility. hence the popular term “one and done”.

Porter pointed to players like former NBA security guard Brandon Jennings and Charlotte Hornets security guard LaMelo Ball, who both bypassed college.

“We’re doing this based on watching these young athletes try to change the system and make it work for them,” Porter said.

“We’re a great platform and that makes us a good place to find talent,” said Porter. “We’re starting a league from scratch. We don’t have an old overhang. We can build a model that feels like a 21st century model, both in terms of starting startups and creating digital businesses.”

An overtime logo on a basketball court

Source: overtime

Porter said OTE could serve as a new avenue to the NBA. The NBA already has a non-college route with its NBA G League Ignite program with top high school prospects Jalen Green and Isaiah Todd. This route allows younger players to train in the program until they are eligible.

Players in the NBA program can earn anywhere from $ 200,000 to $ 500,000 while waiting to be eligible.

Should OTE players fail to pursue a career, an additional $ 100,000 will be made available for tuition fees. When teenagers enter the league, players will lose their NCAA eligibility for receiving payment.

“It’s a professional way,” said Porter. “But in contrast to a pure farm system, this is competition. We expect tens of millions of people to tune in and want to watch. And why do we expect that? Because they are already watching on our platforms today.”

Portland Trail Blazers forward Carmelo Anthony, an OTE investor and board member, said many athletes are not properly prepared for the life of a professional athlete.

“We need to better empower the next generation of players and prepare them for success,” he said. “OTE leads the way in this regard by providing players with a comprehensive route that fully develops the athlete – not just basketball skills, but education, economic empowerment, and branding. That kind of guidance for high school players is critical to recruitment. ” them for a successful career on and off the pitch. “

Then-NBA Commissioner David Stern speaks to the media ahead of the first game of the 2013 NBA Finals between the Miami Heat and the San Antonio Spurs at the American Airlines Arena on June 6, 2013 in Miami.

Mike Ehrmann | Getty Images

I am seeking approval

Porter said the early reactions in the league have been positive and that they are made up of NBA names that can help OTE operate efficiently.

In addition to Anthony, investors include Brooklyn Nets star Kevin Durant and Silicon Valley venture capital firm Andreessen Horowitz. The commissioner is former NBA manager Aaron Ryan and ex-Sacramento Kings deputy general manager Brandon Williams will oversee the operation of the league.

“There’s a lot of NBA DNA in there,” Porter said.

But Stern was the most influential. He was the first investor in overtime, helping it raise $ 2.5 million in 2017, three years before his death.

Porter remembered Stern telling him to avoid starting a league. “I’ve spent 30 years on it. You don’t want to do that,” Porter recalled.

“But we are annoyingly persistent,” he added.

When Stern watched overtime take off at GenZ, he believed OTE was a good idea and agreed, Porter said.

“He said, ‘I think you not only can do this, you have to do it,” Porter recalled. “We were like wow. It’s like a 180, so we felt we could do it. If you’re building a business in this world, you can’t rely on people to give you opportunities,” added Porter . “You have to go your own way.”

Richard Besser, who served as the deputy director of the Centers for Disease Control and Prevention under former President Barack Obama, said he feared people will discount Covid numbers if governors decide to reopen their states.

“In Texas, where they lifted the mask mandate, less than 10% of the people have been vaccinated and the levels are higher than last summer when they first put the mandates on,” Besser said. “I worry these numbers are going a little numb, and we don’t remember the fact that over 2,000 people die from Covid every day in America.”

Texas and Mississippi governors announced Tuesday that they were lifting mask mandates and allowing companies to reopen at full capacity.

“Now is the time to open Texas 100%,” said Texas Republican Governor Greg Abbott.

Connecticut governor, Democrat Ned Lamont, announced Thursday that some of his state’s businesses will be allowed to operate at full capacity again from March 19.

Besser told CNBC’s The News with Shepard Smith that states should follow the CDC’s lead and take into account the concerns of Director Rochelle Walensky, who said she was still “deeply concerned” about the virus.

“Our recent declines seem to be stalling – at over 70,000 cases a day,” Walensky said during a press conference Monday at the White House. “With these new statistics, I am very concerned about reports that more and more states are rolling back the exact public health measures we have recommended to protect people from Covid-19.”

Besser’s old agency is expected to release new guidelines on Friday for people who are fully vaccinated. He advised host Shepard Smith that people should meet their expectations.

“I don’t think they will give the go-ahead to wholesale that many people are hoping for. There will be another downward trend and more people will be vaccinated than we currently have in the country,” Besser said.

Democrats urge FDA to regulate toxic metals in baby food after research finds high levels.

Chris Tobin | DigitalVision | Getty Images

Top Democrats are urging the FDA to regulate toxic metals in baby formula after a Congressional investigation found metals like arsenic, lead, and cadmium to be found in far higher amounts than permitted in bottled water and other products.

Sens. Amy Klobuchar, D-Minn. And Tammy Duckworth, D-Ill. As well as the representatives Raja Krishnamoorthi, D-Ill. And Tony Cardenas, D-Calif., Told CNBC that they are asking regulators to limit the levels of toxic heavy metals in baby food.

The Food and Drug Administration does not currently set limits for heavy metals in baby food, particularly for arsenic in rice grain. The agency regulates other toxins in consumer products such as lead, arsenic, and cadmium in bottled water.

The four Democrats said Thursday they had drafted laws that would tighten regulations on baby food safety and sent them to FDA staff for technical review. However, lawmakers want the FDA to use their existing regulator to take immediate action.

“Through our legislation and FDA regulations, we will ensure that the baby foods we put on the market are safe and that our children are safe,” Krishnamoorthi said in a statement. “I am proud to work with my colleagues, along with the FDA, stakeholders and health professionals across the country, to develop major reforms.”

An FDA spokeswoman said the agency takes exposure to toxic metals in food “extremely seriously” and that the agency is reviewing the results of the Congressional investigation. She added that “The FDA has not commented on whether it has received requests for technical assistance regarding the legislation, but we would look forward to working with Congress on the matter.”

Rep. Raja Krishnamoorthi, D-Ill., During the House Oversight and Reform Committee hearing titled Protecting the Timely Delivery of Mail, Medicines and Postal Ballots on Monday, Aug. 24, 2020, in the Rayburn House office building.

Tom Williams | CQ Appeal, Inc. | Getty Images

A subcommittee of the House Committee on Oversight and Reform, chaired by Krishnamoorthi, released the results of its 15-month investigation in February. It used data from four companies – Nurture, Hain Celestial Group, Beech-Nut Nutrition, and Gerber, a unit of Nestle – that responded to the subcommittee’s requests for information on testing guidelines and test results for their products.

The research found that “baby food companies weren’t looking for parents and young children the way we all expected – instead they knowingly sold us tainted products,” said Krishnamoorthi.

Hain said at the time that the investigation “did not reflect our current practices,” adding that the company’s internal standards “meet or exceed current federal guidelines.”

Gemma Hart, a spokeswoman for Nurture, told the New York Times at the time that their products were safe and that the metals were only present in “trace amounts”. Beech-Nut said Thursday that the company is “committed to continuously improving its internal standards and testing processes as technology and knowledge evolve.” Dana Stambaugh, a spokeswoman for Gerber, said the company is taking steps to minimize metals in its products.

Three other baby food companies – Walmart, Sprout Organic Foods, and Campbell Soup – did not provide all of the information requested. At the time the investigation was published, Campbell said its products were safe and cited the lack of FDA standards for heavy metals in baby food.

A Walmart representative told Reuters at the time that private label product suppliers must meet their own specifications, “which for baby and toddler foods means the levels must meet or fall below the limits set by the FDA.”

Sprout did not immediately respond to CNBC’s request for comment.

“Like parents across America, I was horrified to learn that trusted baby food brands knowingly sell products that are high in toxic lead, arsenic, mercury and cadmium,” Rep. Cardenas said Thursday. “I urge the FDA to use their existing agencies to take immediate regulatory action.

The investigation found that heavy metals are naturally found in some grains and vegetables, but added that levels can be increased if manufacturers add other tainted ingredients to baby food. According to the report, companies rarely test their products for contamination before sending them to stores.

“It is unacceptable that, despite parents’ efforts to protect their children, some leading baby formula manufacturers have launched products that expose children to dangerous toxins,” Klobuchar said in a statement. “This legislation will protect children and ensure a healthy start by holding manufacturers accountable for removing toxins from infant and toddler foods.”

Ford Motor has quietly started production in Mexico on a new pickup truck that the automaker says is expected to be smaller than its current Ranger model.

The new truck was announced to investors on Wednesday in the automaker’s monthly production data as the “C-Pick Up,” which is manufactured at its Hermosillo plant. Only 21 vehicles were assembled in February, which likely indicates early prototype models for testing. A Ford spokesman declined to comment beyond what the company stated in its monthly production report.

“C-Pick Up” is expected to represent a compact pickup truck that would expand the company’s highly profitable trucking business among its current mid-size Ranger pickups. Auto analysts expect the truck to be sold in the US and other markets such as South America, where smaller pickups have traditionally been more popular.

When Ford CEO Jim Farley led the automaker’s global markets, he said Ford was investing “in cheaper versions” of the company’s trucking business. He said, “expect new nameplates down below where we compete today.”

“When you think of Ford, we have a truck franchise that dominates the world, namely vans and pickups, and now we’re going to dramatically improve our supply offering around the world,” he said at a Deutsche Bank investor conference in January 2019. And that’s exactly what will bring our global profitability together for the next few years. “

2021 Ford Bronco Sport

ford

The pickup is produced at the plant along with the company’s new Ford Bronco Sport SUV. This could mean that the pickup truck shares the platform and base of the vehicle. Auto enthusiasts and trade publications have reported that a compact pickup truck – possibly called a Maverick – is expected from Ford by the end of this year.

Factory production is a likely sign that the vehicle will be available shortly. According to Ford, it took the Bronco Sport about nine months to increase production from 29 units to more than 8,000 in November. The factories slowly increase production before the vehicles are delivered to the dealers.

Jessica Caldwell, Edmunds’ executive director of Insights, said the auto industry is in need of cheaper pickups as some larger models like the F-Series can top $ 100,000. However, she doesn’t expect the vehicle to sell in large quantities in the U.S.

“It is extremely difficult to find an inexpensive truck that is something new,” she said. “I think it definitely makes sense for Ford, especially since they got rid of a lot of their passenger cars. So you definitely need something that is offered to consumers at a lower price.”