Wall Road fears GM is in for a more durable 2023 than it is letting on

General Motors Co. Chief Executive Officer Mary Barra during the South by Southwest Festival in Austin, Texas March 14, 2023.

Jordan Vonderhaar | Bloomberg | Getty Images

DETROIT – Doubts are creeping in on Wall Street about the rest of 2023 General Motors.

The company on Tuesday beat Wall Street earnings expectations for the first quarter and raised its 2023 guidance above analyst consensus, but investors are asking questions about the company’s ability amid broader economic challenges and an auto industry turning away from expensive ones Vehicles and record profits normalized to pass.

That helps explain why GM shares are down nearly 6% through Wednesday from GM’s first-quarter earnings report, trading just over $32 a share. Wednesday saw the stock’s lowest close since October, with the stock down 26% from its 52-week high of $43.63 a share. The stock is down 2.75% for the year after closing at $32.72 on Thursday.

“GM continues to do the right things, but we believe that the normalization of the cycle and the challenges in the EV ramp create a difficult investment thesis,” Barclays analyst Dan Levy said in an investor note on Wednesday, reiterating an equal-weight rating that was lowered however, the company’s target price for the stock by $3 to $42 per share.

Analysts say that declining pricing power, labor issues and electric vehicle manufacturing challenges will pose major challenges for the Detroit automaker.

price pressure

GM CFO Paul Jacobson said Tuesday that the company expects new vehicle prices to remain stable compared to last year. He said US consumers paid an average of $50,263 per vehicle during the quarter, down 1% year-over-year.

Higher prices are bad news for consumers but great news for automakers, BofA Securities analyst John Murphy noted in an investor note on Wednesday titled “They Hate It, We Like It: Execution and Price Drivers Beat and Raise.”

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GM’s stock price since Mary Barra became the automaker’s CEO on January 15, 2014.

GM on Tuesday raised its full-year adjusted earnings guidance to $11-13 billion from $10.5-12.5 billion. However, those results represent a decline of between 10% and 24% from the roughly $14.5 billion in adjusted revenue it reported in 2022.

Wells Fargo analyst Colin Langan called GM’s forecast upgrade on Wednesday “surprising given price risks, particularly in China, and rising steel costs.” He cited the company’s price expectations, which he described as “bullish,” as a key concern.

GM has shown caution not to overproduce this year, helping to keep inventories in line with demand and prop up prices. The company shut down pickup truck production at an Indiana plant late in the quarter to keep inventories below historical levels.

However, amid growing concerns of a union strike, such a review could take place later this year.

union threats

GM is nearing negotiations with the United Auto Workers and Canada’s Unifor union, bringing the potential for walkouts and increased labor costs.

Labor costs don’t usually skyrocket as a result of regular negotiations, but for the first time in decades a new leadership team is in place at the UAW and promises more contentious negotiations than in recent history. The new union leadership worked to reform the organization and stand up against the automakers.

“We are here to come together, to prepare for war against the only real enemy: multi-billion dollar corporations and employers who refuse to give our members their fair share,” said incoming UAW President Shawn Fainden members during a union convention in Detroit last month. “It’s a new day in the UAW.”

Labor strikes can be costly and deplete vehicle inventories. A 40-day strike against GM during the last round of negotiations four years ago cost GM about $3.6 billion in 2019, including $2.6 billion in fourth-quarter earnings before interest and taxes.

GM CEO Mary Barra told investors Tuesday the automaker is working to “build a strong relationship with new leadership,” but declined to speculate on the talks and the company’s expectations for the negotiations.

“We’re working to make sure we develop a strong relationship with the new leadership, getting to know them and making sure we identify the challenges the company is facing, and then we work together to resolve the issues that are in a good place,” she said.

GM’s shares are down 19.5% since Barra became CEO in January 2014 and 52% from a high of $67.21 set during intraday trade on Jan. 5, 2022. Her low during her tenure was $14.33 per share on March 18, 2020.

– CNBC’s Michael Bloom contributed to this report.

GM CFO Paul Jacobson on Q1 results, EV pricing strategy

Merck (MRK) Earnings Report Q1 2023

note on Thursday reported first-quarter sales and adjusted earnings that beat Wall Street expectations, despite a sharp drop in sales of its Covid antiviral treatment molnupiravir.

Sales of molnupiravir collapsed to $392 million during the period, down 88% from the $3.2 billion reported for the first quarter of 2022. Merck said the decline was primarily due to lower sales in the US, UK, Japan and Australia.

The company reported total revenue of $14.5 billion for the quarter, down 9% year over year. But excluding the Covid drug, Merck said its sales were up 11%.

Here’s what Merck reported versus Wall Street expectations, based on a poll of analysts by Refinitiv:

  • Earnings per share: Adjusted $1.40 versus $1.32 expected
  • Revenue: $14.49 billion versus $13.78 billion expected

Merck stock closed more than 1% higher on Thursday. Shares are up more than 3% for the year, putting the company’s market value at more than $292 billion.

The pharma giant posted net income of $2.82 billion, or $1.11 per share. That compares to $4.31 billion, or $1.70 per share, for the same period a year ago.

Excluding certain items, Merck’s adjusted earnings per share for the period were $1.40. This includes charges of 52 cents related to Merck’s acquisition of cancer drug developer Imago BioSciences last year.

The Rahway, NJ-based company raised its 2023 revenue guidance to between $57.7 billion and $58.9 billion, slightly ahead of the $57.2 billion to $58.7 billion it provided earlier in February. The increased projections include sales of molnupiravir of approximately $1 billion.

The company also raised its full-year adjusted earnings outlook to $6.88 to $7.00 per share from a previous guidance of $6.80 to $6.95 per share.

The guidance does not reflect any financial impact from Merck’s proposed acquisition of biotech company Prometheus Biosciences earlier this month, the company noted. Merck said the deal is expected to close in the third quarter of 2023.

Merck’s Covid treatment molnupiravir first came to market after the Food and Drug Administration approved the pill for certain adults in December 2021. Once hailed as a breakthrough treatment for Covid-19, Merck signed multiple contracts to supply millions of courses of the drug to the US government and other nations.

But Merck and drug manufacturers such as Pfizer, Modern And Johnson&Johnson have braced themselves for a drop in Covid-related sales this year as the world emerges from the pandemic with less reliance on blockbuster vaccines and treatments.

Molnupiravir weighed on sales of Merck’s pharmaceuticals business, which fell 10% to $12.7 billion compared to the first quarter of 2022. Excluding molnupiravir, pharmaceutical sales increased by 14%.

Merck said diabetes treatments also drove the sales decline. Sales of sitagliptin and a related diabetes drug fell 29% to $880 million, mainly due to generic competition in several international markets and lower demand and prices in the U.S

But Merck’s pharmaceutical unit saw higher sales of Gardasil, Merck’s vaccine that prevents cancer caused by HPV. The company said revenue for the shot rose 35% to $2 billion, reflecting strong demand outside the US, particularly in China.

Sales of blockbuster antibody treatment Keytruda also rose 20% in the quarter to $5.8 billion. Keytruda is used to treat different types of cancer, including certain types of breast cancer and skin cancer.

Caroline Litchfield, Merck’s CFO, said Thursday when announcing the company’s results that the drugmaker expects continued strong growth from Keytruda. However, she noted that Keytruda’s pricing “is an increasing headwind,” especially as Merck rolls out new indications for the drug in key European markets.

The company has been under pressure to reduce its reliance on Keytruda, which is expected to lose patent protection in 2028. Merck highlighted some of its efforts to cushion this patent loss and expand its drug pipeline during the conference call.

Dean Li, President of Merck Research Laboratories, highlighted the acquisition of Prometheus Biosciences. He said the deal will bring a promising experimental treatment for ulcerative colitis and Crohn’s disease that will expand Merck’s footprint in immunology.

“By combining Prometheus’ deep understanding of inflammatory bowel disease and Merck’s deep expertise in developing and implementing biomarkers, we hope to usher in a new era in immunology where patients receive the right therapy based on a precision medicine approach,” said Li during the call.

Chuck Schumer urges finish to procuring of conservative judges in North Texas

Republicans have referred all sorts of problems to judges they know to be compassionate and unreasonable; For example, there is a 5th circuit court in north Texas where sanity reliably dies.

Here, the Trump judge overturned the FDA’s approval of the abortion pill, a federal organization over which he has no oversight.

Senate Majority Leader Chuck Schumer (D-NY) is calling it out, urging to end the “dangerous practice.”

In a letter sent to PoliticusUSA by the Chairman’s Press Office, the Senate Majority Leader noted that “litigants can now effectively choose which judge hears their cases, thereby undermining free and fair trials,” and called on the Chief Justice of the Senate to US District Court to do so Northern District of Texas, David Godbey, to reform the district court’s method of assigning cases.

Schumer highlighted the bill as apparently unfair: “Although there are a total of 16 judges who might hear cases, many departments in the county only have one or two judges who are assigned when a civil case is filed there.” The plaintiffs have unfairly exploited this practice to select district judges they believe agree with their cases.”

The only way Republicans could find a judge right-wing enough to try to take out the FDA without knowledge or expertise on the subject was to find a Trump-appointed judge with a history of (some of it hidden in the pending confirmation) far-right activism on abortion and LBGTQ rights.

They found that man in Judge Matthew Kacsmaryk, a controversial appointee with a history of hostility toward the LGBTQ community and women’s health, and now the sole U.S. District Judge in the North Texas District’s Amarillo Division.

Schumer objected to the fact that since Kacsmarky is the only judge in that department, every case filed there is assigned to him. This works like making a favorable decision instead of assigning a case.

“Currently, Judge Kacsmarky is the sole judge in the Amarillo Division, and subsequently every case filed there is inevitably assigned to him. In his previous judgments, Kacsmarky has shown himself to be sympathetic to the anti-abortion movement and it is clear that he was specifically targeted for this purpose. His ruling was unprecedented — it is the first time a judge has withdrawn a drug from the market over FDA objections.”

Schumer then pointed out that there is no legal obligation to operate in this way, citing recent precedent in Texas over concerns about judge shopping: “Last year, the Western District of Texas revised its case assignment rules for those filed in Waco Patent cases changed.”

The Democratic leader also pointed out that other counties “like the Northern District of New York — allocate cases at random among all currently serving district judges.”

Judge shopping has spiraled out of control in Texas insofar as the Justice Department has accused Texas of directing its litigation against the Biden administration to courthouses, “often in remote parts of the state — where a single, pre-designated judge is most or assigned to all cases.”

That sounds like the opposite of justice.

The Justice Department made this point in a brief filed February 28, 2023 (edited for clarity and brevity):

The Texas Attorney General’s office has now admitted that it brought this case in the Victoria Division to ensure it was heard by Judge Tipton: “The case is frankly being brought in Victoria, Your Honor, based on our experience with you .”

The plaintiffs “handpicked [a particular judge] to adjudicate on the particular case or application.”

This admission is critical. “Judge buying undoubtedly disrupts the proper functioning of the justice system.” Standing Comm. to the discipline of the US Dist. Kt. for cents. Dist. from California to Yagman…

“This is done by “contraven[ing] the very purpose of random allocation, which is to prevent judge buying by a party and thereby increase public confidence in the allocation process.” Coates v. SAIA Motor Freight Line, LLC.

The Justice Department has lost two “judge-buying” cases in Texas, the second being the Kacsmaryk abortion-pill case.

The Washington Post explained in March how judge-shopping works to achieve the desired outcome: “In the three trials over Biden administration policy, the attorneys general of Texas and a group of other states have filed in rural federal courthouses, each… single judges have a reputation for ruling against the policies of the democratic government. In contrast, most federal judicial departments across the country have multiple judges who are randomly assigned to cases as they are filed.”

At the risk of repeating myself, conservatives at CPAC literally took lessons from Hungary’s Prime Minister Viktor Orban on how to achieve autocratization in a free, democratic country. (The instruction is intentionally mislabeled, it does not admit its true aim.)

There have been several approaches to involving the media and taking control of education (as is already happening here in Florida, for example), but the major achievements have come from using the court system to make it legal to steal people’s rights and give more power to your party.

Back in 2018, Orban and his ruling party “rammed a law through parliament that poses a new threat to the independence of the country’s judiciary. The law creates a separate administrative court system that will deal with cases that have a direct impact on basic human rights, such as elections, the right to asylum, the right to assembly and complaints about police brutality.”

Cut to 2022 and Hungary is no longer considered a full democracy. “The lack of decisive EU action has contributed to the emergence of a ‘hybrid regime of electoral autocracy’, ie a constitutional system in which elections take place but democratic norms and standards are not respected, say MEPs.”

There is a lack of respect for democratic norms and standards.

We are witnessing the lack of respect for democratic norms and standards throughout America

The question now is, does anyone have the will to tackle it before it’s too late?

Schumer’s letter is a good start and the DOJ has already fought, but all of those fights now need to be properly escalated. There’s no time to wait.

**************

The whole letter:

Dear Chief Justice Godbey,

I am writing to you today, urging you to reform the way cases are assigned to judges in your federal district. As Chief Justice of the United States District Court for the Northern District of Texas, you have the authority to file orders that govern how cases filed in your district are assigned to judges. Although the Northern District has twelve active judges and another four senior judges still hearing cases, your orders provide that civil cases filed in many departments are always assigned to a single judge or one of only a few. Cases filed in the Amarillo Division are always assigned to Judge Kacsmaryk; Cases filed in the Wichita Falls Division are always assigned to Judge O’Connor; and cases filed in the Abeline, Lubbock, and San Angelo divisions are split between only two judges. As a result of your recent assignment orders, plaintiffs in your district can now effectively choose the judge to hear their cases.

Not surprisingly, litigants have taken advantage of these orders to select individual district judges deemed particularly benevolent to their claims. The state of Texas itself is the most egregious example. She has sued the Biden administration at least 29 times in Texas federal district courts, but she has not even filed any of those cases in Austin, where the Texas Attorney General’s office is located. Instead, Texas has always sued in divisions, where case assignment procedures ensure that a designated preferred judge, or one of a handful of preferred judges, hears the case. That includes the Northern District’s Amarillo Division, where Texas has filed seven of its cases against the federal government. Many other litigants have done the same, including the Alliance Defending Freedom, which in its case challenged the FDA’s approval of mifepristone.

Nothing requires the Northern District to let plaintiffs choose their judges in this way. Federal laws divide the Northern District into seven divisions, but that’s just one geographic division. The purpose of the split is to reduce travel times for juries, defendants and other local litigants by allowing cases to be tried locally. In the case of electronic filing in particular, this division does not have to affect the court assignments at all. Other circuit courts with many rural chambers arbitrarily apportion civil cases among all of their judges, regardless of where the case is filed. Like the Northern District of Texas, the Northern District of New York is a geographically large district divided into many divisions. But the Northern District of New York assigns all of its judges to all of its divisions and randomly allocates all cases to all, regardless of where the cases are filed. Thus, a litigant in the Northern Circuit of New York cannot select his judge by filing suit in Plattsburgh rather than in Utica. Missouri’s Western District is similar. And the Western District of Texas last year changed its case assignment rules for patent cases filed in Waco — apparently in response to forum shopping concerns — so that such cases are now randomized between all 11 active judges in the district and one senior Judges are assigned.

The Northern District of Texas could and should enact a similar rule for all civil matters. Currently, federal law allows each district court to decide for itself how to assign cases. This gives courts the flexibility to address individual circumstances in their districts and among their judges. However, if this flexibility still allows litigants to select their preferred judges and effectively guarantee their preferred outcomes, Congress will consider more stringent requirements.

sincerely,

Charles E Schumer
United States Senator

Listen to Sarah on the PoliticusUSA Pod on The Daily’s newsletter podcast here.

Sarah was accredited to report on President Barack Obama, then-Vice President Joe Biden, 2016 Democratic presidential nominee Hillary Clinton, and she exclusively interviewed spokeswoman Nancy Pelosi multiple times and exclusively reported on her first appearance at home after the first impeachment of then President Donald Trump.

Sarah is a two-time Telly Award-winning video producer and a member of the Society of Professional Journalists.

Connect with Sarah on Post, Mastodon @PoliticusSarah@Journa.Host and Twitter.

Eli Lilly (LLY) Q1 Income 2023

Medical bottles and syringes with the logo of Eli Lilly and Company are seen on a screen in the background in this illustrative photo taken in Krakow, Poland, on November 10, 2022.

Jakub Porzycki | Nurphoto | Getty Images

Eli LilliFirst-quarter results missed expectations on Thursday, but the drug company raised its full-year guidance.

Before releasing the results, the company also reported positive data on its weight-loss drug, Tirzepatide.

Shares of Eli Lilly are up more than 3% in morning trade.

The company’s revenue declined 11% from the year-ago quarter, driven by a $1.5 billion decline in sales of its Covid-19 antibodies. Lilly reported sales of $6.96 billion for the quarter, slightly beating analysts’ expectations, but sales declined from $7.81 billion in the year-ago quarter.

The company posted adjusted earnings of $1.62 per share, falling short of analysts’ expectations of $1.73 per share for the quarter.

Here’s how the company compares to analyst estimates compiled by Refinitiv:

  • Adjusted earnings: $1.62 per share versus $1.73 per share expected
  • Revenue: $6.96 billion versus $6.86 billion expected

The company reported net income of $1.3 billion, or $1.49 per share, for the quarter, down 29% from the first quarter of 2022.

Eli Lilly raised its forecast for the year largely due to the US dollar’s weakening against major currencies. The company expects revenue of between $31.2 billion and $31.7 billion compared to previous guidance of $30.3 billion to $30.8 billion.

The company raised its adjusted earnings guidance to between $8.65 and $8.85 per share for the year, up from $8.35 to $8.55.

Lilly also released data on its weight-loss drug Tirzepatide on Thursday morning ahead of the win. Patients who were overweight and had type 2 diabetes lost an average of between 30 and 34 pounds depending on the dose they took, compared with 7 pounds in the placebo group.

Lilly plans to complete its application for Food and Drug Administration approval in the coming weeks.

CNBC Health & Science

Read CNBC’s latest global health coverage:

The FDA approved tirzepatide under the brand name Mounjaro in May 2022 for the treatment of adults with type 2 diabetes. Lilly’s Mounjaro sales were approximately $587 million in the first quarter.

Sales for several of Lilly’s key products increased year over year. Sales of Trulicity, Lilly’s weekly injectable for type 2 diabetes, were $1.98 billion for the quarter, up 14% from $1.74 billion for the same period last year.

Sales of Verzenio, Lilly’s breast cancer pill, rose 60% to $751 million, compared to $469 million in the first quarter of 2022.

And sales of Jardiance, a pill that lowers blood sugar in patients with type 2 diabetes, rose 38% to $578 million, compared with $419 million for the same period last year.

Pras Michel discovered responsible in worldwide conspiracy

rapper Pras Michel was found guilty on Wednesday of 10 counts related to an international conspiracy to help China influence US politics and government.

The former refugee member has been accused of helping a fugitive Malaysian businessman Yeh low in assisting the Chinese government in gaining access to the highest levels of US government. This allegedly included access to former presidents donald trump And Barack Obamaaccording to CNN.

RELATED: Refugee’s Pras faces trial on conspiracy charges as jury selection begins this week

Pras Michel found guilty of 10 counts related to international conspiracy with China

The rapper was reportedly found guilty of “conspiracy to defraud the United States” and “witness tampering.” In addition, he was found guilty of “acting as an unregistered agent of a foreign government.”

CNN reports that Michel faces up to 20 years in prison. However, no judgment date has been scheduled for the rapper just yet.

In addition, the rapper claims his innocence, as reported by the New York Post.

WASHINGTON (AP) — Refugee rapper Pras Michel has been found guilty of multimillion-dollar political conspiracies across two presidencies. pic.twitter.com/73Ns2EPUte

— Philip Lewis (@Phil_Lewis_) April 26, 2023

More details on the International Conspiracy Scheme

Last week, the Grammy winner testified that Low paid him $20 million in 2012 to get a picture of himself with Obama. Prosecutors allege that Michel then used over $800,000 of those funds through multiple sponsors for Obama’s re-election campaign.

Michel testified that he thought he could spend the money as he saw fit. He also added that he never acted under Low’s direction.

“I could have bought 12 elephants with that,” he told the jury.

Low reportedly rejoined Michel after Trump’s election in 2016, according to prosecutors.

Around that time, federal authorities began intensifying investigations into Low and his alleged embezzlement of billions of dollars from 1MBD – a Malaysian sovereign wealth fund and strategic development company.

Low reportedly sent Michel over $100 million to try to influence the US government. In addition, the money was supposedly used to stop the investigation into the Malaysian businessman.

According to the federal prosecutor, on instructions from the Chinese government, Michel also approved the extradition of the Chinese dissident Guo Wengui.

Pras tries to explain distant links to fugitive Malaysian businessman who was lightly sentenced in absentia

Meanwhile, Michel testified that he was merely trying to find an attorney for Low in the United States. He also added that the $100 million was for a media company he was in the process of founding.

He further denied that the massive investment came from Low.

Low, who is believed to be in China, was sentenced in absentia to 10 years in prison in Kuwait last month for his role in laundering at least $1 billion related to $4.5 billion stolen from 1MDB , reported the New York Post.

The $1 billion was laundered with Chinese currency via Kuwait. This was due to Low’s efforts to keep the funds out of the US banking system “and out of the reach of the Justice Department and its investigators,” the outlet reported.

Comcast (CMCSA) Q1 2023 outcomes

Komcast topped analysts’ expectations with its first-quarter earnings report on Thursday, despite the cable and media giant’s slowing growth in consumer broadband and mounting Peacock losses.

The company’s shares are up more than 3% in premarket trading. The stock is up more than 4% this year through the close on Wednesday.

Here’s how Comcast performed versus estimates from analysts polled by Refinitiv:

  • earnings per share: 92 cents adjusted versus 82 cents expected
  • revenue: $29.69 billion versus $29.3 billion expected

For the quarter ended March 31, Comcast reported earnings of $3.83 billion, or 91 cents a share, compared to $3.55 billion, or 78 cents a share, a year ago. Adjusted for one-time items, Comcast reported earnings per share of 92 cents for the most recent period.

Revenue fell 4% to $29.69 billion from $31.01 billion in the year-ago period, with the company noting that it broadcast both last year’s Super Bowl and Beijing Olympics in the first quarter .

The Philadelphia-based company said its adjusted earnings before interest, taxes, depreciation and amortization rose 3% in the first quarter to $9.42 billion in the first quarter.

Comcast said it returned $3.2 billion to shareholders during the quarter through a mix of $1.2 billion in dividend payments and $2 billion in share repurchases.

Comcast lost 21,000 residential broadband customers during the quarter, but got a slight boost from its business customers. Company executives warned earlier this year that Comcast was likely to lose broadband subscribers in the first quarter.

Still, it was a sign that Comcast, like its peers, continues to face slowing growth in its broadband business. Executives have said that while the rate of customer loss is very low, growth — especially since the early days of the pandemic — has stalled as they face increased competition from telecom and wireless carriers.

Xfinity’s wireless business grew to nearly 5.67 million customers in the quarter, a sign that its wireless service — provided in conjunction with an agreement to use Verizon’s network — remains a bright spot.

Cable TV subscribers continued their exodus from the traditional bundle, with Comcast losing 614,000 subscribers during the quarter.

Last month, Comcast announced that it was changing the reporting of its segments, now merging its Xfinity-branded broadband, cable and wireless services with its UK company Sky, which includes Sky-branded pay-TV services and entertainment television channels to form the Connectivity and Platforms segment. Total segment revenue was approximately $20.15 billion, down slightly from last quarter due to the impact of foreign currencies.

The second segment, Content and Experiences, includes all of NBCUniversal’s television and streaming businesses, its international networks and Sky Sports channels, as well as its film studios and theme parks. Total segment revenue fell nearly 10% to $10.26 billion in the quarter.

Media business revenue declined in the first quarter, with revenue down nearly 40% to $6.15 billion due to last year’s comparison when NBC aired the Super Bowl and rights to the Olympics in Beijing for its television stations and Peacock. However, Comcast said that excluding the $1.5 billion incremental revenue from those two major sporting events, media revenues were still down about 2%.

The tightening advertising market showed up on Comcast’s balance sheet this quarter, as did its peers Paramount Global and Warner Bros. Discovery. Excluding the Olympics and Super Bowl — two events that generate a lot of advertising revenue — domestic advertising declined about 6% in the quarter due to lower TV station revenue and declining audience ratings.

Earlier this week, NBCUniversal faced the ousting of CEO Jeff Shell over a sexual harassment and discrimination complaint filed by an employee.

Revenue from domestic television distribution increased, except for the Olympics, which Comcast said was primarily due to higher revenue at Peacock, which had more paying subscribers.

According to Comcast, Peacock subscribers grew more than 60% year over year to 22 million and revenue rose 45% to $685 million. Peacock had losses of $704 million, up from losses of $456 million in the same period last year.

Last quarter, the company noted that Peacock’s losses would be about $3 billion this year. Streaming service costs continued to weigh on Media segment earnings.

NBCUniversal’s film segment was boosted during the quarter by the animated “Shrek” spinoff Puss in Boots and the horror film “M3GAN,” with revenue increasing nearly 2% to $2.96 billion rose.

CEO Brian Roberts praised NBCUniversal’s movie listings in Thursday’s earnings call with the success of “The Super Mario Bros. Movie,” which released earlier this month. This week it surpassed $900 million at the global box office, including $444 million domestically.

NBCUniversal’s upcoming film listing includes Fast X, the next installment in the popular Fast and Furious franchise, as well as Christopher Nolan’s next epic Oppenheimer, about the scientist who led the development of the atomic bomb during World War II. It will appear in the July.

The company’s theme park segment continued to grow, especially since parks closed during the height of the pandemic, with revenue up 25% to $1.95 billion. The opening of Super Nintendo World also contributed to the increase in sales.

Disclosure: Comcast owns NBCUniversal, CNBC’s parent company.

A brand new Senate invoice would urge ticket sellers to reveal charges up entrance

Price starts at: $25 Whether you have a brother who appreciates a live football game or a wife who adores Michael Bublé, places like SubHub and Ticketmaster offer gift certificates you can use to take someone to a show. You also have the option to purchase live tickets that can be printed directly from your computer or wireless device. Why not buy an additional ticket and share in the live show experience? This could be a gift that you too will remember.

Photo: Getty Images

WASHINGTON — Swifties, the BeyHive and Cure fans may have something to celebrate: Senators are set to introduce bipartisan bill Wednesday targeting hidden ticket fees for live events.

The measure, dubbed the TICKET Act (Transparency in Charges for Key Events Ticketing Act), would require ticket retailers to disclose full ticket prices, including fees, in advance for concerts, sporting events and other large gatherings.

The new bill follows the reintroduction of the Junk Fee Prevention Act in the House of Representatives earlier this month by Reps. Ruben Gallego, D-Ariz., and Jeff Jackson, DN.C., and the Biden administration is seeking to push fee transparency.

It also comes as lawmakers wage a broader fight against ticket sellers. In December, Taylor Swift fans sued Live Nation after the Ticketmaster website crashed during presales for the artist’s The Eras Tour. The fiasco prompted the Senate Judiciary Committee to probe the entertainment conglomerate’s power over the industry in a January hearing. Back then, some critics on Capitol Hill called Live Nation a monopoly.

Ticketmaster also pledged to return some money to fans who bought tickets to goth rock band The Cure’s Shows Of A Lost World Tour earlier this year after group leader Robert Smith slammed the prizes. The ticket seller offered up to $10 back to verified fan accounts after agreeing with the band that many of the fees charged during transactions were “unreasonably high,” Smith tweeted March 16.

The new bill is co-sponsored by Sen. Maria Cantwell, D-Wash., Chair of the Chamber’s Commerce Committee, and Senior Member Sen. Ted Cruz, R-Texas.

“The price they say should be the price you pay. This bill is part of broader legislation I want to introduce to curb misleading junk fees that are skyrocketing costs to consumers,” Cantwell said in a statement.

In his statement, Cruz said, “The TICKET Act brings transparency to the entire ticketing industry, which is dominated by a few major players who can benefit from these hidden fees.”

Ticket fees can account for anywhere from 21% to 58% of the total cost of tickets, according to a statement from the committee. The bill aims to encourage competition “by providing ticket fees and speculative ticket transparency for the benefit of all consumers,” the committee said.

If the measure passes, ticket sellers in the primary and secondary markets — like Live Nation, owned by Ticketmaster and SeatGeek — would have to disclose the full ticket price, including itemized fees, at the start of a transaction and prior to ticket selection. Total ticket prices must also be clearly displayed during event marketing.

Secondary market sellers would be required to fully disclose speculative ticket status, meaning the seller has no actual ownership of the ticket.

President Joe Biden emphasized the government’s efforts to crack down on junk charges during his State of the Union address in February. Among other areas, he called for action against excessive fees for concerts, sporting events and other forms of entertainment. Sens. Richard Blumenthal, D-Conn., and Sheldon Whitehouse, DR.I., introduced Senate legislation accompanying Biden’s plan in March.

In parallel with the government’s goals, the Federal Trade Commission also released a rulemaking process on November 8, 2022 – the day of the midterm elections – to investigate unfair acts or practices related to ticket sales and other various fees.

Ticketmaster has said it doesn’t control fees but retains some of its operating costs, according to a Feb. 7 blog post. The provider also said it already supports “all-in” pricing in New York state and advocates statewide adoption of the policy.

“We remain committed to an industry-wide bid for upfront pricing so fans can see full face value and royalty costs up front. This only works if all ticketing marketplaces together do everything possible so that consumers have really accurate comparisons when buying tickets,” Ticketmaster said in the blog post.

Medicare will take over Alzheimer’s remedy Leqembi after FDA approval

Chiquita Brooks-LaSure testifies before the Senate Finance Committee during her nomination hearing for Administrator of the Centers for Medicare & Medicaid Services in Washington on Thursday, April 15, 2021.

Caroline Brehmann | CQ Roll Call, Inc. | Getty Images

Medicare will cover new Alzheimer’s treatment Leqembi for all patients eligible under the drug’s label when the Food and Drug Administration fully approves the drug in July, a federal official told congressmen Wednesday.

Official Chiquita Brooks-LaSure testified before Congress Wednesday for the first time since being confirmed as the administrator of the Centers for Medicare and Medicaid Services.

Brooks-LaSure has been harshly criticized by Democratic and Republican members of the House Health Subcommittee over Medicare’s controversial coverage policy for new Alzheimer’s treatments.

The Food and Drug Administration approved Leqembi, a collaboration of biogenic And Eisai Antibody treatment accelerated in January.

Twice-monthly intravenous infusions of the drug, commonly known as lecanemab, have shown promise in slowing the progression of early-stage Alzheimer’s disease.

But Medicare, which primarily provides health insurance for seniors, will currently only cover most of Leqembi’s costs for patients participating in federally approved clinical trials.

Because Eisai’s clinical trial for the drug has already concluded, this policy means Medicare enrollees with Alzheimer’s won’t have access to the treatment, which costs $26,500 a year, unless they pay out of pocket

Brooks-LaSure told the committee Wednesday that guidelines will change if the FDA approves the drug in July, as expected.

“Eligible individuals are based on the FDA label,” Brooks-LaSure testified.

“If the FDA approves the drug, that will be the basis of which demographics people will get the drug in, regardless of which populations they think it’s appropriate for,” she said.

Rep. Nanette Barragan, D-CA, pressed Brooks-LaSure for clarity.

“So you’re basically saying that all patients for whom the drug lecanemab is indicated and all future therapies will be covered in the class after full approval?” Barragan asked.

Brooks-LaSure replied, “That’s right.”

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The FDA’s label for Leqembi under the agency’s accelerated approval says the treatment was intended for use in patients with mild dementia caused by Alzheimer’s and tests have confirmed that they have brain plaques associated with the disease, among other things.

It’s unclear if the FDA’s label would change in any way once Leqembi receives full approval in July.

CMS’ insurance policy for Alzheimer’s drugs has caused confusion and controversy.

The agency has said Medicare will cover patients who participate in federally approved “registries,” which collect data about the drug after the treatment has received full approval.

The requirement to participate in CMS-approved registries has raised concerns that access to Leqembi could remain restricted even after full FDA approval.

Brooks-LaSure said Wednesday that a registry “does not in any way prevent people from having access to the drug.”

“All we state is that people taking the drug will have their doctors enter that information into a private registry,” the CMS administrator said.

But the registries have yet to be set up for patients.

Brook-LaSure said the goal is to have the registries ready for registration by July 6, should the FDA fully approve Leqembi by that date.

“Private sector companies can start setting them up now,” Brooks-LaSure told the committee.

Rep. Anna Eshoo, D-CA, criticized Medicare for not giving patients and doctors clear information about what exactly the registries are and how they will work.

“If doctors don’t know, if patients don’t know, and Medicare doesn’t seem to really know what this registry entails, how are Medicare patients possibly going to get the drug starting in July?” Eshoo asked.

Rep. Morgan Griffith, R-VA, accused CMS of effectively undermining the FDA’s accelerated approval of Leqembi by imposing restrictions that make the drug largely inaccessible to seniors.

Unlike Medicare, the Veterans Health Administration has agreed to cover Leqembi for veterans who are over the age of 65 and meet other eligibility criteria.

“You have turned yourself into a scientific regulator by refusing to pay for the Alzheimer’s drugs that this subcommittee and committee have been working hard on on a bipartisan basis to ensure they are available to Alzheimer’s patients,” Griffith said to Brooks-LaSure.

Brooks-LaSure told the committee that Medicare is bound by law.

“Our legal requirement is to determine whether a drug is appropriate and necessary for the Medicare population,” the CMS administrator said.

Griffith asked, “So you’re saying we need to change your laws?

“Of course, Congress has the power to change our rules,” Brooks-LaSure said.

Why John Stamos Fired Mary-Kate & Ashley With a Full Home

Full house alum John Stamos wasn’t always thrilled with the idea of ​​working with babies.

As the actor who played Uncle Jesse on the series recently revealed he is working with him Mary Kate Olsen And Ashley Olsen In the early days of her hit sitcom, she first laid out her challenges, considering the twins landed the role of Michelle Tanner when they were just six months old.

And as the 59-year-old noted, he didn’t hesitate to let her team know it wasn’t working out, confirming a rumor he had applied to oust her.

“I did it,” John said during the April 25 episode of The Good Guys podcast. “I didn’t try, I did.”

Regarding filming a particular scene, John explained that the then 11-month-old twins weren’t all that excited about one day being on set.

“She screamed – both of them,” he continued. “They wanted to be somewhere else than there and so did I. They were 11 months old and God bless them … but I couldn’t handle it.” And as the You actor noted, he followed up with a request for her show’s crew.

CinemaCon 2023: Warner Bros. Teases ‘Barbie’, ‘Dune: Half Two’

Margot Robbie will star as Barbie in an upcoming Mattel and Warner Bros. film.

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LAS VEGAS – Let’s Go Barbie.

Warner Bros. Discovery put the upcoming film at the center of its studio presentation at CinemaCon on Tuesday, with executives – including Jeff Goldstein, president of domestic sales, and Andrew Cripps, president of international sales – and Hollywood stars Greta Gerwig, Margot Robbie and Ryan Gosling all dressed up were different shades of pink.

And all this to the tune of “Barbie Girl”.

Warner Bros. offers a wide range of drama, comedy, horror and action movies in 2023. CEO David Zaslav told attendees at the annual cinema conference that the studio will release 16 films in 2023 and hopes to release more than 20 releases per year in the future.

But Tuesday was all about Barbie.

The company showed extended clips from the film, which elicited roars of laughter from the audience. Director Gerwig promised big laughs and big hearts from the film, which arrives July 21.

Warner Bros. also rolled trailers and clips from Wonka, Meg 2: The Trench, The Nun 2 and The Color Purple, as well as an early look at Dune: Part Two, which was shot entirely with IMAX -Cameras.

Director Denis Villeneuve promised more action and political intrigues in the second part. Released in 2021, Dune grossed nearly $400 million at the global box office and picked up six Academy Awards during the 2022 Academy Awards.

Warner Bros. capped off its presentation with words from Peter Safran, one half of the new duo of creative leaders at DC Studios.

Safran shared footage from Aquaman and the Lost Kingdom, Blue Beetle, and The Flash. The company is showing “The Flash,” directed by Ezra Miller, to CinemaCon attendees Tuesday.

Zaslav says he’s seen “The Flash” three times and told the CinemaCon audience, “It’s the best superhero movie I’ve ever seen.”

He also assured media and insiders that Warner Bros. Discovery is committed to long-term theatrical releases, saying the company is “in no rush to bring movies to Max,” the company’s forthcoming flagship streaming service.