Legal sentencing of Binance founder CZ postponed to late April

Changpeng Zhao, founder and CEO of Binance, attends the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris on June 16, 2022.

Benoit Tessier | Reuters

The criminal sentencing of Binance founder Changpeng Zhao on a money laundering rule charge has been postponed until April 30, according to a notice Monday in Seattle federal court.

That docket entry did not explain what would be a two-month delay in sentencing Zhao, a Canadian national widely known as “CZ” who is free on a $175 million release bond in the United States.

Zhao’s lawyer, William Burck, declined to comment when asked about the postponement. CNBC has asked the Department of Justice about the delay.

Federal sentencing guidelines suggest a maximum sentence of 18 months in prison for Zhao, but prosecutors reportedly have considered asking for a harsher sentence.

Zhao pleaded guilty on Nov. 21 to a charge of failure to maintain an effective anti-money laundering program at Binance, the world’s largest cryptocurrency exchange. As part of that plea, he agreed to step down as Binance’s chief executive officer and to pay a $50 million fine.

Binance at the same time agreed to pay $4.3 billion in fines and restitution as part of its guilty plea to conspiracy to conduct an unlicensed money-transmitting business, conducting such a business and violating the International Emergency Economic Powers Act.

Read more CNBC politics coverage

“Binance was allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism,” Treasury Secretary Janet Yellen when the company and Zhao pleaded guilty.

Zhao originally was scheduled to be sentenced on Feb. 23.

The judge in Zhao’s case in early December rejected his request to be able to travel to his home in the United Arab Emirates before he is sentenced.

U.S. District Judge Richard Jones cited Zhao’s “enormous wealth” and lack of ties to the United States in finding he was a flight risk.

Jones in late December rejected another bid by Zhao to travel to the U.A.E. Zhao in his new application had said he wanted to travel home for the “hospitalization and surgery” of a person in his life.

He had offered to post his equity in Binance as security for his return.

China and Russia not perceived as prime safety threats, analysis finds

Supporters of the Fridays for Future climate action movement, including one holding a sign showing Russian President Vladimir Putin, in Berlin, Germany.

Sean Gallup | Getty Images News | Getty Images

China and Russia are considered less of a threat to Western populations now than a year ago, as public concern pivots to non-traditional risks such as mass migration and radical Islam, new research said.

Public perception of traditional hard security risks remains higher now than three years ago but has fallen since 2022, the year Russia invaded Ukraine, survey results from the Munich Security Index 2024 showed.

The findings point to a disconnect between public sentiment and political policy as world leaders meet later this week at the Munich Security Conference to discuss what the organizers called a “downward trend in world politics, marked by an increase in geopolitical tensions and economic uncertainty.”

Top of the agenda will be the ongoing wars between Russia and Ukraine and Israel and Hamas, as well as NATO expansion and a potential return of Donald Trump to the White House.

Public opinion was broadly aligned on medium-term economic and geopolitical risks, however, with the majority of respondents in Western countries of the view that China and other powers from the Global South would become more powerful over the coming decade while Western powers were more likely to stagnate or decline.

In the polling of 12,000 people across G7 countries plus Brazil, India, China and South Africa, few Western respondents believed that their country would be more secure and wealthy in 10 years’ time. By contrast, most of those in emerging economies thought they would be better off financially and in political terms.

Russia, China risks on the decline

While Russia ranked as a top threat for G7 countries last year, the majority of those perceived risks have since faded, according to the study conducted from October to November 2023.

Only citizens from the U.K. and Japan still consider Moscow a top risk this year, while Germany and Italy recorded a significant easing of concerns. Included in that were waning worries around the risks of nuclear conflict and disruptions to energy supplies.

China was also seen more favorably this year than last by five of the G7 countries, with Canada and Japan the exceptions. Notably, though, Chinese respondents saw all countries apart from Russia and Belarus as more threatening now than before. It was also the only country to name the U.S. as a threat.

Perceptions of non-traditional risks increased across all countries, however, with people around the world expressing concern about environmental threats, the risks of mass migration as a result of war or climate change, and organized crime. Environmental issues ranked as a top three concern in all countries except the U.S.

The perceived threat of radical Islam also showed a marked increase, though the report’s authors noted that sentiment was mainly concentrated in Europe and North America, and was likely a consequence of the Israel-Hamas war.

Cybersecurity issues, meanwhile, ranked as a top risk in China and the U.S., as both countries step up their restrictions against one another in the race for technological dominance.

The index was accompanied by a report entitled “Lose-Lose?,” which pointed to the continued shift away from global cooperation and toward transactional, protectionist policies.

“As more and more states define their success relative to others, a vicious cycle of relative-gains thinking, prosperity losses, and growing geopolitical tensions threatens to unroll. The resulting lose-lose dynamics are already unfolding in many policy fields and engulfing various regions,” the report said.

It added that this year’s super election cycle could further exacerbate the risks of “democratic backsliding, growing societal polarization, and rising right-wing populism,” further unseating international cooperation.

“Populist forces have further amplified the sentiment that some actors are gaining at the expense of others, as an extreme form of liberalism ‘exacerbates who wins and who loses from economic globalization,'” it added.

The report suggested that the re-election of Trump as U.S. president could potentially “spell the end of trusted cooperation among democratic states.” Indeed, on Saturday the Republican presidential candidate said that he would “encourage” Russia to attack NATO allies if they did not meeting their spending commitments.

Extra part-time staff get entry to employer retirement plans in 2024

Like many workers, saving for retirement wasn’t a priority for Mark Zimmermann. The 72 year old thought he’d always run the family dairy farm in Wisconsin, but that didn’t go as planned.

“I struggled farming, I had too many disasters and was never able to put any money away,” Zimmermann told CNBC, speaking from an office at his current employer.

He’s now working in the manufacturing industry, maintaining equipment and setting up the sizing for customized metal parts. On his feet at the machines on the factory floor is physically demanding so Zimmermann works part-time.

More from Year-End Planning

Here’s a look at more coverage on what to do finance-wise as the end of the year approaches:

His employer, Mitchell Metal Products, has fewer than 100 workers and lets its part-time employees participate in the 401(k) plan.

“I really appreciate being able to [participate in the plan],” Zimmermann said. “I don’t have a lot of savings built up right now, not compared to what I’m going to need and with inflation with the way it is.”

The Merrill, Wisconsin-based manufacturer offers part-time workers access to the company 401(k) retirement plan as a way to attract and retain workers.

“Whether someone’s working full time or part time, we view them as our most valuable assets,” said Tim Zimmerman, president of Mitchell Metal Products, noting that 84% of his employees participate in the company retirement plan. 

More part-time workers to get 401(k) access in 2024

York, South Carolina, Now hiring, part time cooks sign posted outside Wing King Restaurant.

Jeff Greenberg | Universal Images Group | Getty Images

Just 66% of private-sector workers in the U.S. have access to an employer defined contribution plan, according to the U.S. Bureau of Labor Statistics. Tax breaks under recent legislation are aimed at making it easier for companies to offer the benefit. 

The incentives are among the sweeping changes to the laws governing retirement plans under the SECURE Act of 2019 and expanded under SECURE 2.0 at the end of last year. Also included are provisions to expand part-time workers’ access to retirement accounts. 

Under the original Secure Act, beginning in 2024, employers must extend eligibility for the company retirement plan to part-time employees who work at least 500 hours per year for three consecutive years. Starting in 2025, Secure 2.0 reduces the work requirement to two years. Companies already have been required to grant eligibility to employees who work at least 1,000 hours in a year.

Changes in the law, mandates in some states and the continued strong job market have many small businesses re-evaluating their retirement benefits.

“I think the real value is that we’re having conversations with plan sponsors,” said Eric O’Donnell, director of product strategy and marketing strategy for Sentry Insurance, which offers small and micro businesses retirement plan services.

Making part-time workers eligible for retirement benefits also opens up conversations about saving and investing with newly-eligible employees.

Such conversations, he said, helps them understand retirement plan investing “is for you, and it is something that you should be thinking about, it’s not for the wealthy, it’s for the everyday American.”

Novo Nordisk, Eli Lilly are tackling provide points

Injection pens of Novo Nordisk’s weight-loss drug Wegovy are shown in this photo illustration in Oslo, Norway, Nov. 21, 2023.

Victoria Klesty | Reuters

The insatiable demand for weight loss drugs is trouncing supply, leaving many patients struggling to find the injectable treatments. 

The dominant weight loss drugmakers, Novo Nordisk and Eli Lilly, have said supply woes likely won’t go away anytime soon, as the popularity of those medicines continues to soar. But both companies are showing encouraging progress in their efforts to increase supply. 

“I think it’s going to take a few years for it to resolve itself,” Cantor Fitzgerald analyst Louise Chen told CNBC of the supply issues. “But I think both companies will slowly start to meet the demand in the market.” 

Patients have flocked to weight loss drugs such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound as the treatments help them shed significant pounds over time, despite the drugs’ hefty price tags, mixed insurance coverage and handful of unpleasant side effects.

Goldman Sachs analysts expect 15 million U.S. adults to be on obesity medications by 2030. Some Wall Street analysts project that the weight loss drug market could be worth $100 billion by the end of the decade.

As demand spikes, most of the drugs have slipped into intermittent shortages. But there is limited data available on how significant shortages are or how much supply companies have.

“I hear all the time about patients going to pharmacies that just don’t have it in stock for them, especially since the summer,” said Dr. Jeff Friedman, the director of bariatric surgery at the University of Florida, who also prescribes obesity medications.

But both Novo Nordisk and Eli Lilly gave updates on positive supply developments to investors over the last week. They rounded out 2023 with a handful of new investments in expanding production capacity for their weight loss and diabetes drugs.

Those efforts aim to reassure anxious investors that they can capitalize on the success of the treatments and to reassure patients that they can access the treatments. Novo Nordisk and Eli Lilly look to maintain their edge in the market as other companies such as Amgen, Pfizer, AstraZeneca, Roche and smaller obesity drugmakers race to join the space. 

Drugmakers kick off 2024 with supply progress 

Novo Nordisk last week said it had more than doubled its supply of lower-dose versions of its weight loss injection Wegovy in January compared with previous months, which will allow more people to start taking the drug. Shortages have forced Novo Nordisk to restrict the availability of those lower “starter” doses in the U.S. since May. 

There is still “limited availability” of 0.25, 0.5, 1 and 1.7-milligram doses of Wegovy, according to a Monday update on the Food and Drug Administration’s drug shortage database. Patients typically start on the 0.25-milligram dose and increase the size over time to mitigate side effects such as nausea. 

Novo Nordisk plans to gradually increase Wegovy supply the rest of the year, executives said on the company’s fourth-quarter earnings call last week.

An Eli Lilly and Company pharmaceutical manufacturing plant is pictured in Branchburg, New Jersey, March 5, 2021.

Mike Segar | Reuters

Certain doses of Eli Lilly’s diabetes drug Mounjaro, which uses the same active ingredient as Zepbound, also have limited availability, according to the FDA. Both treatments are incretin drugs, which mimic gut hormones to suppress appetite and regulate blood sugar.

Still, Eli Lilly achieved its goal of doubling production capacity for such incretin drugs by the end of 2023, executives said during the company’s fourth-quarter earnings call Tuesday. They said the company will expand production with “equal urgency” this year, with the most significant production increases occurring in the second half of the year. 

By that point in the year, the company expects its production of sellable doses of incretin drugs to be at least 1.5 times higher than it was in the second half of 2023, executives said.

Catalent deal could boost Wegovy supply

Novo Nordisk and its parent company, Novo Holdings, unveiled multibillion-dollar deals that could increase Wegovy supply — just not yet.

Novo Holdings on Monday said it will acquire drug manufacturer Catalent in a $16.5 billion deal. Catalent is the main supplier of fill-finish work, which involves filling and packaging syringes and injection pens, for Wegovy. 

Novo Nordisk will then buy three of Catalent’s manufacturing sites from Novo Holdings for $11 billion. Novo Nordisk said that purchase will gradually increase the company’s manufacturing capacity starting in 2026. 

A general view of the drug product manufacturing laboratory in biologics and sterile injectables, Catalent, in Brussels, Belgium June 27, 2023. REUTERS/Yves Herman

Yves Herman | Reuters

In a note Tuesday, TD Cowen analyst Michael Nedelcovych wrote the Catalent deals will likely “boost production faster” than building entirely new plants or adding more production lines to existing sites, moves Novo Nordisk is still pursuing. Those efforts are more “expensive and time consuming” than the acquisition, he noted.

Eli Lilly CFO Anat Ashkenazi told investors during an earnings call Tuesday that the company has concerns about Novo Holdings’ acquisition, especially since Eli Lilly contracts Catalent to manufacture some of its medications. 

But Eli Lilly has said it doesn’t have meaningful production coming from Catalent, so the acquisition may have little effect on its business, Cantor Fitzgerald’s Chen said.

New plants could increase long-term supply 

Novo Nordisk and Eli Lilly have both poured billions into building new production sites that could boost supply of their weight loss and diabetes drugs in the coming years. 

On Tuesday, Eli Lilly said a new plant in Concord, North Carolina, will start production of incretin drugs as early as the end of the year, with products available to ship in 2025. 

In a note Sunday, Morgan Stanley analysts said they expect that facility and one in North Carolina’s Triangle Park, which started production last year, to help the company significantly increase its capacity for supplying autoinjector forms of Mounjaro, Zepbound and Eli Lilly’s other diabetes drug Trulicity. Autoinjectors are the traditional delivery devices of those medicines.

The company also will build a handful of other facilities over the next few years. Eli Lilly in November said it would spend $2.5 billion to open a manufacturing site for injectable products in Germany, with construction beginning this year.

The drugmaker has also invested more than $3 billion to build two new production facilities in its home state of Indiana. 

Meanwhile, Novo Nordisk in November said it would invest $6 billion to expand its manufacturing sites in Denmark, noting it will finish construction from the end of 2025 through 2029. The company also said it would spend around $2.3 billion to build out another production facility in France. 

Other forms of weight loss drugs could help 

Alternative forms of weight loss drugs could also help alleviate supply constraints in the future.

Eli Lilly has limited capacity to make autoinjectors for Mounjaro and Zepbound. So, the company plans to launch Mounjaro in a delivery device called KwikPen in certain countries outside of the U.S. The method requires additional regulatory approvals. The UK recently approved Mounjaro in KwikPen form. 

The drugmaker has said launching KwikPen forms of its incretin drugs will expand supply. That’s because Eli Lilly for years has used that device for insulin, so the company can tap into existing manufacturing resources to make more of other incretin drugs. 

KwikPen is a single four-dose pen that covers a month’s treatment. Patients using autoinjectors go through four different pens per month.

Wells Fargo analyst Mohit Bansal wrote in a note last month that if Eli Lilly launches its diabetes and weight loss drugs in KwikPen form in the U.S., it could be a “source of supply upside” in the market for 2025.

But both Eli Lilly and analysts have said that oral forms of weight loss and diabetes drugs, which are typically easier and cheaper to manufacture, will be key to meeting demand.

Eli Lilly is developing an oral drug called orforglipron, which may have an edge over experimental weight loss pills from Novo Nordisk and Pfizer. 

Eli Lilly’s pill helped overweight or obese patients lose up to 14.7% of their body weight after 36 weeks in a midstage trial. The result appeared to be consistent with the weight reduction caused by Novo Nordisk’s oral drug, but over a shorter trial period. 

Still, Eli Lilly may release late-stage trial data on the pill in 2025, so it won’t be entering the market any time soon. 

Biden Makes The Hur Report Backfire On Trump

President Biden seized on the report by Special Counsel Hur to talk about the classified documents crimes of Trump.

What Did Biden Say About The Special Counsel Report And Trump

Biden said:

I was especially pleased to see the special counsel make clear the stark differences between this case and Donald Trump. As the special counsel wrote, and I quote, several material distinctions between Mr. Trump’s case and Mr. Biden’s are clear. By the way, this is a Republican counsel. Most notably, after being given multiple chances, this is a continuation of the quote: he returned classified documents and avoided prosecution here, while Mr. Trump allegedly did the opposite.

This is a continuing quote, according to the indictment, he is not only refused to return documents for many months, he also obstructed justice by enlisting others to destroy evidence and lie about it. In contrast, Mr. Biden turned in classified documents to the national archives, and the Department of Justice considered a search of multiple locations, including his homes, and set for a volunteer interview and, in other words, cooperated with the investigation. That is the distinction, among others. The bottom line is that the special counsel in my case decided against moving forward with any charges. This matter is now closed.

To get more stories like this, subscribe to our newsletter The Daily.

Video:

Biden Turns The Hur Report To An Advantage

The Hur report confirms that Biden committed no crime, but the Trump-nominated special counsel used his report to offer an opinionated characterization of President Biden’s memory that had nothing to do with the classified documents case.

The President has turned the report to his advantage even though the White House is unhappy about the subjective characterizations because it gives the President an opportunity to discuss Trump’s alleged crimes.

Biden will have plenty of chances to prove that his memory is fine, but all it will take is one felony conviction for Trump to be finished.

A Special Message From PoliticusUSA

If you are in a position to donate purely to help us keep the doors open on PoliticusUSA during what is a critical election year, please do so here. 

We have been honored to be able to put your interests first for 14 years as we only answer to our readers and we will not compromise on that fundamental, core PoliticusUSA value.

Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.

Awards and  Professional Memberships

Member of the Society of Professional Journalists and The American Political Science Association

Tish Cyrus & Dominic Purcell Stated “I Love You” One Day After Assembly

Tish Cyrus Reveals She Had “Psychological Breakdown” Amid Divorce From Billy Ray Cyrus

When you know you know—at least that’s the case for Tish Cyrus and her husband Dominic Purcell. 

The 56-year-old recently revealed that she exchanged “I love you’s” with the Prison Break actor after only going on one date with him.

“The next day, he was like ‘Yeah, I love ya,'” Tish shared on a Feb. 7 episode of the Call Your Daddy podcast. “And I was like, ‘I love you too.'”

She added to host Alex Cooper, “After that, it was just on.”

But the Cyrus matriarch—who shares kids Brandi Cyrus, 36, Trace Cyrus, 34, Miley Cyrus, 31, Braison Cyrus, 29, and Noah Cyrus, 24 with ex Billy Ray Cyrus—and Dominic’s love story started long before they met up in a “hole-in-the-wall” bar. In fact, Tish joked that she considered the actor to be her “hall pass” throughout her marriage to Billy Ray, which ended in 2022 after 29 years.

Banking fears stir as soon as once more

A sign is pictured above a branch of the New York Community Bank in Yonkers, New York, U.S., January 31, 2024.

Mike Segar | Reuters

T

his report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

The bottom line

Trouble is brewing around another U.S. regional lender that has renewed Wall Street worries.

New York Community Bank moved quickly to reassure investors about its financial health after Moody’s cut its credit rating to junk.

The bank also named Alessandro DiNello as the new executive chairman to help stabilize the operations.  

Trying to calm market jitters, DiNello said NYCB has seen “virtually no deposit outflow” from retail branches, adding its liquidity position remained strong.

The moves sparked a 7% jump in NYCB shares Wednesday after an initial decline. Yet, it’s a small dent in the stock’s more than 50% fall since the bank posted a surprise fourth-quarter loss last week. Fears were also exacerbated as the results showed mounting losses on commercial real estate.

Moody’s cited “multi-faceted financial, risk-management and governance challenges” at NYCB in its note late Tuesday downgrading the bank.

“In Moody’s view, control functions with strong knowledge of a bank’s risks are key to a bank’s credit strength.”

NYCB’s problems are reminiscent of the pressure the sector came under last year following the failure of Silicon Valley Bank, that sparked a regional banking crisis.  

It remains to be seen whether the latest measures will be enough to boost investor confidence or will there be more surprises to come.

— CNBC’s Hugh Son contributed to this report. 

Ford (F) This fall 2023 earnings

Ford CEO Jim Farley poses for a photo before announcing at a press conference that Ford Motor Company will be partnering with the world’s largest battery company, China-based Contemporary Amperex Technology, to create an electric vehicle battery plant in Marshall, Michigan, on Feb. 13, 2023, in Romulus, Michigan.

Bill Pugliano | Getty Images

DETROIT — Ford Motor beat Wall Street’s top- and bottom-line expectations for the fourth quarter while forecasting better-than-expected results for 2024.

The company’s full-year forecast calls for adjusted earnings before interest and taxes, or EBIT, of between $10 billion and $12 billion, adjusted free cash flow of $6 billion to $7 billion and capital spending of $8 billion to $9.5 billion.

Analysts had expected Ford’s adjusted earnings guidance to be roughly $9 billion to $11 billion, according to investor notes from several analysts.

The automaker also announced a special dividend of 18 cents per share in addition to a first-quarter regular dividend of 15 cents per share. The dividends are payable March 1 to shareholders of record at the close of business Feb. 16.

Shares of Ford were up roughly 6% during after-hours trading, adding to a 4.1% increase during trading Tuesday to close at $12.07.

Here’s how Ford did during the fourth quarter compared with what Wall Street expected, based on average estimates compiled by LSEG, formerly known as Refinitiv:

  • Earnings: 29 cents per share adjusted vs. 14 cents per share adjusted, expected
  • Automotive revenue: $43.2 billion vs. $40.12 billion expected

Ford CEO Jim Farley described last year as a “foundational year” for the automaker, specifically calling out several cost-improvements; high gross margin on its hands-free BlueCruise highway system; and hybrid vehicles, which the company expects to increase sales of by 40% this year.

“It was a solid year, but I want to be really clear we are nowhere near our earnings potential for Ford Motor Co.,” Farley told investors Tuesday. “We are really positioned well this year for growth and profitability, for revenues as well.”

For the fourth quarter, Ford reported a net loss of $526 million, or 13 cents per share, compared to a profit of $1.29 billion, or 32 cents per share, during the same period a year earlier. Adjusting for one-time items, the company reported earnings per share of 29 cents.

Overall revenue during the period increased about 4% to $46 billion, up from about $44 billion a year earlier. Adjusted earnings before interest and taxes (EBIT) declined 59% to $1.05 billion from the year-earlier period.

Adjusted earnings of Ford’s traditional business, known as Ford Blue, were down about 48% during the fourth quarter compared to a year earlier to $813 million. Its Ford Pro commercial business earned $1.81 billion, up 25% from a year earlier. Ford’s Model e electric vehicle unit posted a $1.57 billion loss from October through December, more than doubling a loss of $631 million during the fourth quarter of 2022.

Stock Chart IconStock chart icon

Ford’s stock during the past year.

For the full year 2023, Ford reported $10.42 billion in adjusted EBIT, in line with 2022; revenue of $176.2 billion, up 11% compared to the prior year; and adjusted free cash flow of $6.8 billion, down $2.3 billion from the year earlier. Net income was $4.33 billion, up from a $2.15 billion loss in 2022.

The company’s traditional and fleet businesses assisted in offsetting $4.7 billion in losses for its electric vehicle business.

Ford in November lowered its full-year forecast in light of contract negotiations with the United Auto Workers union.

Ford CFO John Lawler said Tuesday the company continues to look for ways to offset increasing labor costs due to the new UAW contract, which the company said is expected to cost $8.8 billion over the life of the deal, ending in April 2028. Ford has already announced plans to delay or cut spending on several EV products.

“All of our EV teams are ruthlessly focused on cost and efficiency in our EV products because the ultimate competition is going to be the affordable Tesla and the Chinese [automakers]” Farley said.

Ford is expected to face headwinds this year, including lower vehicle prices, warranty costs and continued losses for all-electric vehicles. Bright spots are expected to be its Ford Pro fleet unit and traditional Ford Blue internal combustion engine business.

— CNBC’s Michael Bloom contributed to this report.

Eli Lilly (LLY) earnings This fall 2023

Eli Lilly logo is shown on one of the company’s offices in San Diego, California, U.S., September 17, 2020. 

Mike Blake | Reuters

Eli Lilly on Tuesday reported fourth-quarter revenue and adjusted earnings that topped expectations on the strong launch of its new weight loss drug, Zepbound, and higher prices for its blockbuster diabetes drug, Mounjaro.

Here’s what Eli Lilly reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $2.49 adjusted vs. $2.22 expected
  • Revenue: $9.35 billion vs. $8.93 billion expected

Eli Lilly posted net income of $2.19 billion, or $2.42 a share, for the fourth quarter. That compares with a profit of $1.94 billion, or $2.14 a share, a year earlier. 

Excluding one-time items, the company posted a per-share profit of $2.49 cents for the fourth quarter of 2023.

The pharmaceutical giant booked fourth-quarter revenue of $9.35 billion, up 28% from the same period a year ago.

The quarterly results are the first to include sales of Eli Lilly’s new weight loss drug Zepbound, which won approval from the Food and Drug Administration in early November. 

Some analysts expect Zepbound to rake in more than a billion dollars in sales in its first year on the market, and are enthusiastic about the drug in part because it may cause more weight loss than Novo Nordisk’s blockbuster obesity injection Wegovy. 

Shares of Eli Lilly jumped almost 60% last year as weight loss drugs skyrocketed in popularity despite hefty price tags, mixed insurance coverage and a handful of unpleasant side effects. With a market cap of roughly $673 billion, Eli Lilly is the largest pharmaceutical company based in the U.S. 

Eli Lilly will hold an earnings call with investors at 10:00 a.m. ET on Tuesday. 

Executives will likely be asked about whether the company has made more progress in addressing the supply issues plaguing its weight loss and diabetes drugs. 

There may also be questions related to the timing of the FDA’s decision on Eli Lilly’s experimental Alzheimer’s drug, donanemab, which significantly slowed the progression of the memory-robbing disease in patients at the early stages of it.

This is breaking news. Please check back for updates.

Trump floats ‘greater than’ 60% tariffs on Chinese language imports

US President Donald Trump and China’s President Xi Jinping attend a business leaders event inside the Great Hall of the People in Beijing on November 9, 2017.

Nicolas Asfouri | AFP | Getty Images

Former President Donald Trump plans to escalate the U.S-China trade war he launched during his first term as president if he is elected to the office again in November.

The GOP frontrunner confirmed in an interview broadcast on Sunday that he is considering a plan to impose tariffs of 60% or higher on Chinese goods in his potential second term.

“We have to do it,” Trump said in an interview on Fox’s “Sunday Morning Futures.”

The Washington Post first reported the Trump campaign was weighing a theoretical 60% Chinese tariff plan.

On Sunday, the former president said he might even go higher: “Maybe it’s going to be more than that.”

Beyond China, the former president has said he would impose a blanket 10% tariff on all U.S. imports, despite broad criticism over how that could hurt consumers.

Former UN ambassador Nikki Haley, Trump’s sole remaining presidential challenger, criticized that policy proposal for the impacts it would have on American pocketbooks.

“What Donald Trump’s about to do, is he’s going to raise every household’s expenses by $2,600 a year,” said Haley in a January interview on CNBC’s “Squawk Box,” referencing data from the fiscally conservative National Taxpayers Union.

Her disapproval echoes the concerns of Wall Street investors who worry that another China trade war would disrupt markets again.

Starting in 2018, Trump began a wave of $250 billion in tariffs against China. The country then struck back with its own set of tariffs against the U.S. in a back-and-forth economic battle that lasted years and disrupted global trade dynamics.

Trump’s trade war with China cost Americans an estimated $195 billion since 2018, according to the American Action Forum, a conservative think tank. The economic battle also led to the loss of more than 245,000 U.S. jobs, according to the U.S.-China Business Council.

At the time, Deutsche Bank estimated that the trade war was causing the stock market to hemorrhage trillions.

The tariff dispute also left the U.S. and China, once each other’s biggest trading partners, on rocky geopolitical terms. President Joe Biden has been trying to warm the icy relations throughout his administration.

Trump has attacked Biden for appeasing China while simultaneously expressing cozy sentiments toward China’s authoritarian president, Xi Jinping.

“I like President Xi a lot,” Trump said Sunday. “He was a really good friend of mine during my time.”

Trump has in the past praised Xi for the ironclad grip he has on his government and his people. In an interview with Fox News’s Sean Hannity in December, Trump said if he is re-elected for a second term he would be a dictator “from day one.”

Trump later claimed in an interview broadcast Sunday that he had meant he would be “a dictator” on his first day in office, his “day one,” but only for a day. The comment nonetheless alarmed election experts, and provided grist for his opponents.