Citi's Chronert says a recession is near; shares his 'top conviction calls' to tough it out


Ukraine war live updates: Putin orders cease-fire over Russian Orthodox Christmas; Ukraine dismisses temporary truce as 'hypocrisy'

Zelenskyy thanks U.S. and Germany for additional weapons, slams Russia for ‘temporary truce’

Ukraine’s President Volodymyr Zelenskyy attends the NATO summit via video link, as Russia’s attack on Ukraine continues, in Kyiv, Ukraine June 29, 2022.

Ukrainian Presidential Press Service | via Reuters

Ukrainian President Volodymyr Zelenskyy thanked U.S. President Joe Biden and German Chancellor Olaf Scholz for their decisions to equip his war-weary country with armored fighting vehicles.

“We will have another Patriot battery and powerful armored vehicles – this is really a great victory for our country. All the details and deadlines will be tomorrow – after my conversation with Mr. Chancellor,” Zelenskyy said in a nightly address on his official Telegram channel.

The Ukrainian president also rejected Russian President Vladimir Putin’s proposal of a temporary truce for Orthodox Christians to celebrate Christmas.

“They want to use Christmas as a cover to at least briefly stop the advance of our guys in Donbas and bring equipment, ammunition and mobilized men closer to our positions. What will this bring? Just another increase in the death toll,” Zelenskyy said, according to an NBC News translation.

“Everyone in the world knows how the Kremlin uses respites at war to continue the war with renewed vigor. But to end the war faster, that is not what is needed at all,” he added.

— Amanda Macias

Norway sends more fire power to Ukraine as Russia’s war drags on

Norway said that 10,000 artillery shells have arrived in Ukraine as Russia’s ongoing missile and drone attacks continue to rock cities and critical infrastructure.

“The artillery shells can be used in several types of artillery fire, including in the M109, which Norway has donated in the past,” Norway’s armed forces wrote in a tweet.

— Amanda Macias

U.S. to provide Ukraine with Bradley armored vehicles

A U.S. Army soldier pulls security next to a M2 Bradley Infantry Fighting Vehicle during a training exercise on Jan. 19, 2013 in Fort Irwin, California.

Sgt. Eric M. Garland II | US Army

The White House said the United States will supply Ukraine with Bradley Infantry Fighting Vehicles, in a readout of a call between President Joe Biden and German Chancellor Olaf Scholz.

Manufactured by BAE Systems, the tracked armored fighting vehicles will be included in the next U.S. security assistance package for Ukraine. It was not immediately clear how many Bradleys the U.S. would allocate to Ukraine.

Both countries plan to train Ukrainian forces on their respective systems.

What’s more, Scholz said that Berlin would provide Ukraine with Marder Infantry Fighting Vehicles.

— Amanda Macias

Three vessels will depart Ukraine’s ports under Black Sea Grain Initiative

The Sierra Leone-flagged cargo ship Razoni, carrying Ukrainian grain, is seen in the Black Sea off Kilyos, near Istanbul, Turkey August 3, 2022.

Mehmet Caliskan | Reuters

The organization overseeing the export of agricultural products said three vessels carrying corn and soybeans left Ukrainian ports.

The amount of grain and other crops exported under the Black Sea Grain Initiative so far exceeds 16.7 million metric tons.

The Black Sea Grain Initiative, a deal brokered in July among Ukraine, Russia, Turkey and the United Nations, eased Russia’s naval blockade and saw three key Ukrainian ports reopen.

— Amanda Macias

Ukraine’s economy shrank by more than 30% in 2022

Ukraine’s President Volodymyr Zelenskyy attends a working session of G7 leaders via video link, as Russia’s attack on Ukraine continues, in Kyiv, Ukraine June 27, 2022.

Ukrainian Presidential Press Service | via Reuters

Ukraine’s economy shrank by more than 30% in 2022 following Russia’s brutal late February invasion, according to the country’s economy ministry.

The Ministry of Economy of Ukraine said the country’s real GDP in 2022 fell by 30.4%, which beats preliminary forecasts of a contraction between 40% and 50%.

The ministry said that the fall in the GDP was estimated at 34% in December and 37% in November. The ministry added that Russian attacks on critical infrastructure have “put pressure on business confidence and activity.”

— Amanda Macias

Ukrainian official dismisses Putin’s call for a temporary truce

A Ukrainian service member is seen at a position on the front line in the north Kyiv region, Ukraine March 25, 2022.

Gleb Garanich | Reuters

A senior Ukrainian presidential adviser dismissed Russia’s call for a temporary truce.

Mykhailo Podolyak wrote on Twitter that Russian troops “must leave the occupied territories — only then will it have a ‘temporary truce.'”

“Keep hypocrisy to yourself,” he added.

The head of the Russian Orthodox Church, Patriarch Kirill I, who is a close ally of Russian President Vladimir Putin, called for a cease-fire earlier Thursday.

The cease-fire would allow Orthodox Christians in Russia and Ukraine to celebrate Christmas services.

— Amanda Macias

Secretary Austin speaks with Israeli counterpart about Russia’s war in Ukraine

U.S. Defense Secretary Lloyd Austin testifies before the Senate Armed Services Committee during a hearing on “Department of Defense’s Budget Requests for FY2023”, on Capitol Hill in Washington, April 7, 2022.

Sarah Silbiger | Reuters

Secretary of Defense Lloyd Austin spoke with his Israeli counterpart on a wide range of security challenges, according to a Pentagon readout of the call.

“Secretary Austin and Israeli Minister of Defense Yoav Gallant also discussed Russia’s unprovoked war in Ukraine, including Russia’s brutal missile and drone attacks on Ukraine’s energy infrastructure and against civilian targets,” Pentagon Press Secretary U.S. Air Force Brig. Gen. Pat Ryder wrote in a release.

Austin also discussed Iranian destabilization actions in the region and reaffirmed the U.S.-Israel relationship.

Austin also invited the Gallant to visit Washington, D.C. for an in-person meeting at the Pentagon.

— Amanda Macias

Putin orders cease fire in Ukraine over Orthodox Christmas

Russian President Vladimir Putin talks on the phone with David Shmelev, a seven-year-old child from Stavropol Krai region, who took part in the New Year Tree of Wishes nationwide charity campaign, at the Novo-Ogaryovo state residence, outside Moscow on January 5, 2023.

Mikhail Klimentyev | Afp | Getty Images

Russian President Vladimir Putin has ordered a cease fire in Ukraine over Orthodox Christmas, the Kremlin said.

Russian troops must hold fire for 36 hours starting on Jan. 6, the Kremlin said.

Many Orthodox Christians, including those living in Russia and Ukraine, celebrate Christmas on Jan. 6 to 7. The head of the Russian Orthodox Church, called for both sides of the war in Ukraine to observe a Christmas truce, a step dismissed by Kyiv as a cynical trap.

Patriarch Kirill of Moscow and All Russia conducts a service in a church in Moscow, Russia November 18, 2022.

Yulia Morozova | Reuters

“Taking into account the appeal of His Holiness Patriarch Kirill, I instruct the Minister of Defense of the Russian Federation to introduce a ceasefire regime along the entire line of contact of the parties in Ukraine from 12.00 on January 6, 2023 to 24.00 on January 7, 2023,” Putin said in the order.

“Proceeding from the fact that a large number of citizens professing Orthodoxy live in the areas of hostilities, we call on the Ukrainian side to declare a ceasefire and allow them to attend services on Christmas Eve, as well as on Christmas Day,” Putin said.

— Reuters

UN says at least 6,900 killed in Ukraine since start of war

A woman kisses a cross on a grave of her mother killed by shelling during Ukraine-Russia conflict, in the besieged southern port of Mariupol, Ukraine March 23, 2022.

Alexander Ermochenko | Reuters

The United Nations has confirmed at least 6,919 civilian deaths and 11,075 injuries in Ukraine since Russia invaded its ex-Soviet neighbor on Feb. 24.

The Office of the U.N. High Commissioner for Human Rights said the death toll in Ukraine is likely higher, because the armed conflict can delay fatality reports.

“Most of the civilian casualties recorded were caused by the use of explosive weapons with wide area effects, including shelling from heavy artillery, multiple launch rocket systems, missiles and air strikes,” the international organization wrote in a release.

— Amanda Macias

Three family members reportedly killed as Orthodox Christians prepare to celebrate Christmas

Kyiv residents light candles during a service at a St. Michael’s Gold-domed monastery in Kyiv. The Orthodox church of Ukraine allows its adherents to celebrate Christmas on December 25th as well as on January 7th.

Sopa Images | Lightrocket | Getty Images

A married couple and their 12-year-old son have been killed during shelling of the town of Beryslav in the southern Kherson region as they were preparing to celebrate the Orthodox Christian Christmas, according to the deputy head of President Volodymyr Zelenskyy’s office.

“Tragic news in the city today. The shelling of the occupiers and a shell hitting the house killed the family,” Kyrylo Tymoshenko wrote on Telegram Thursday in comments translated by Google.

“This is all the baseness and meanness of Russia. In the morning they talk about the “Christmas truce”, and already at lunch they kill the whole family. What did the husband, wife and their 12-year-old son do? Because they are simply Ukrainians?,” he added.

“People were preparing to celebrate Christmas together, but a cynical attack by the Russians killed them in their own home,” he wrote.

Earlier this morning, the head of the Russian Orthodox Church Patriarch Kirill (who has been supportive of Russia’s invasion of Ukraine) called for a Christmas truce to begin on the Orthodox Church’s Christmas Eve on Jan. 6.

Russia denies deliberately targeting civilians but there are daily instances of residential buildings and civil infrastructure being attacked by its forces. CNBC was unable to verify the information in Tymoshenko’s post.

— Holly Ellyatt

Putin tells Erdogan the West has ‘destructive role’ in Ukraine war

Russia’s President Vladimir Putin speaks on the phone during a conversation with Agatha Bylkova from the Kurgan region, an 8-year-old participant of a New Year’s and Christmas charity event, in Moscow, Russia, January 3, 2023. 

Mikhail Klimentyev | Sputnik | Via Reuters

Russian President Vladimir Putin claimed once again that the West is playing a “destructive role” in the Ukraine war.

Speaking to Turkish President Recep Tayyip Erdogan Thursday, Russia’s leader touched upon economic ties between the two countries, specifically in the energy sector, as well as the conflicts in Syria and Ukraine.

“The situation around Ukraine was touched upon. On the Russian side, the destructive role of Western states is emphasized, pumping up the Kyiv regime with weapons and military equipment, providing it with operational information and target designation,” the Kremlin said on its Telegram channel, according to a Google translation of the comments.

“In the light of Recep Tayyip Erdogan’s readiness for Turkish mediation for a political settlement of the conflict, Vladimir Putin reaffirmed Russia’s openness to a serious dialogue, provided that the Kyiv authorities comply with the well-known and repeatedly voiced demands and take into account new territorial realities,” the Kremlin added, alluding to Russia’s insistence that Kyiv recognize territories it has illegally annexed from Ukraine.

While Russia’s relations with the West and, specifically, NATO, has declined steeply since the war in Ukraine began last February, Turkey has managed to maintain diplomatic and business links with Russia despite being a member of NATO itself. Ankara has helped to broker prisoner swaps and a grain export deal between the warring countries, for example, and has offered to mediate peace talks.

— Holly Ellyatt

Erdogan tells Putin ceasefire needed in Ukraine peace efforts

Russian President Vladimir Putin and Turkish President Tayyip Erdogan arrive for a news conference following their talks in Moscow, Russia March 5, 2020.

Pavel Golovkin | Reuters

Turkish President Tayyip Erdogan told Vladimir Putin in a phone call that peace efforts in the Russia-Ukraine war should be supported by a unilateral ceasefire and a “vision for a fair solution”, the Turkish presidency said on Thursday.

It said in a statement the two leaders discussed energy and the Black Sea grains corridor and that Erdogan told Putin concrete steps needed to be taken to clear Kurdish militants from the Syrian border region.

— Reuters

Russians shelling ‘the entire front line’ in Donetsk, official says

A destroyed residential building in the city of Lyman in the Donetsk region of Ukraine on Jan. 4, 2023.

Dimitar Dilkoff | Afp | Getty Images

Intense shelling is taking place along the entire front line in Donetsk in eastern Ukraine, according to one official, who said residential buildings and a hospital had been damaged during the attacks last night and this morning.

“At night and in the morning, the Russians intensely fired along the entire front line,” Pavlo Kyrylenko, head of the Donetsk Regional Military Administration, posted on Telegram Thursday.

Kurakhove, Maryinka and Avdiivka in Donetsk had been targeted, with houses, shops and equipment at an infrastructure facility damaged during the latest round of shelling.

He said two people had been killed around Horlivka and another was injured in Bakhmut, the epicenter of fighting in the Donetsk region. In Chasiv Yar, a high-rise building was destroyed, and four more houses and a hospital building were damaged, he said, while in Soledar a five-story building was damaged, although no one was injured.

In the Lysychansk area in neighboring Luhansk, Kyrylenko said Russian forces had fired an S-300 missile at Lyman.

— Holly Ellyatt

Ukraine’s economy estimated to have shrunk by 30.4% in 2022

Firefighters conduct search and rescue operations after Russian forces hit a cultural center in Chuhuiv, Kharkiv Oblast, Ukraine, on July 25, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

The Ukrainian economy contracted 30.4% in 2022, according to a preliminary estimate from the Ukrainian economy ministry.

Economy Minister Yulia Svyrydenko said in a statement Thursday that Ukraine had suffered its largest economic losses and damage since its independence from the Soviet Union in 1991, as a result of Russia’s invasion of Ukraine that began in February 2022.

The economy ministry noted that the estimated contraction in 2022 was smaller than previously forecast, noting “this is objectively the worst result since independence, but better than most experts expected at the start of the full-scale invasion, when estimates ranged from 40-50% drop in GDP and beyond.”

Svyrydenko said Ukraine’s successes on the battlefield, the coordinated work of government and business as well as “the indomitable spirit of the population” and the speed of restoration of destroyed or damaged critical infrastructure as well as financial support from international partners had enable Ukraine to maintain the economic front during wartime.

Last September, the Ukrainian government, European Commission and World Bank, in cooperation with partners, estimated that the cost of reconstruction and recovery in Ukraine amounted to $349 billion; that figure is now likely much higher as the war continues.

— Holly Ellyatt

Kyiv given more light combat vehicles — but it wants heavy tanks

Ukraine is continuing to press its international partners to provide it with heavier tanks to fight Russia, having been offered more armored fighting vehicles by its allies this week.

On Wednesday, France announced that it was giving Kyiv light tanks, AMX-10 RCs, and President Joe Biden hinted that the U.S. could provide Ukraine with Bradley Fighting Vehicles (armored troop carriers) — but both still fall short of the modern, heavy tanks that Ukraine has been seeking, such as the U.S.’ M1 Abrams battle tanks and Germany’s Leopard 2s.

A U.S. soldier near a Bradley Fighting Vehicle.

Delil Souleiman | Afp | Getty Images

Ukraine’s President Zelenskyy on Wednesday thanked President Emmanuel Macron “for the decision to transfer light tanks and Bastion APCs [armored personnel carriers] to Ukraine,” but in his nightly address, Zelenskyy again questioned why its allies have been reluctant to supply Ukraine with modern Western armored vehicles and tanks.

“We will receive more armored vehicles, in particular wheeled tanks of French production. This is what sends a clear signal to all our other partners: there is no rational reason why Ukraine has not yet been supplied with Western-type tanks,” Zelenskyy said.

An AMX-10 RC tank deployed in Bosnia in 1995.

Gabriel Bouys | Afp | Getty Images

“This is very important in order to restore security for all Ukrainians and peace for all Europeans,” he added.

Zelenskyy said Ukraine’s allies should “not delay any of those defense opportunities that can speed up the defeat” of Russia, adding that “modern Western armored vehicles, Western-style tanks are just one of these key opportunities.”

— Holly Ellyatt

Biden says Bradley Fighting Vehicles are on the table for Ukraine

U.S. President Joe Biden speaks prior to signing railroad legislation into law, providing a resoluton to avert a nationwide rail shutdown, during a signing ceremony in the Roosevelt Room at the White House in Washington, U.S., December 2, 2022. 

Kevin Lamarque | Reuters

U.S. President Joe Biden said that sending Bradley Fighting Vehicles to Ukraine was being considered to help the Ukrainians in combating Russia’s invasion.

“Yes,” Biden said when asked if the option was on the table.

— Reuters

Claims that war pits Russia against NATO are ‘a bunch of BS,’ White House spokesman says

White House National Security Council Strategic Communications Coordinator John Kirby speaks during a press briefing at the White House in Washington, November 28, 2022.

Kevin Lamarque | Reuters

Russian claims that Moscow’s war in Ukraine is really a fight against NATO and Western countries are “a bunch of BS,” a Biden administration spokesman said.

“This is about a Russian invasion of Ukraine,” said U.S. National Security Council spokesman John Kirby. “And Russia is the one who started it. Russia is the one who’s visited violence on the Ukrainian people at a scale.”

Kirby added that the U.S. will “continue to provide [Ukraine] the kinds of systems and assistance they need to defend themselves,” including the coveted High Mobility Artillery Rocket System.

— Jacob Pramuk

Heavy fighting likely to persist in Ukrainian-held Bakhmut, U.S. official says

Ukrainian soldiers with the 43rd Heavy Artillery Brigade sit atop 2S7 Pion self propelled cannon on the battlefield, as Russia’s attack on Ukraine continues, during intense shelling on the front line in Bakhmut, Ukraine, December 26, 2022.

Clodagh Kilcoyne | Reuters

Heavy fighting around the largely ruined, Ukrainian-held city of Bakhmut is likely to persist for the foreseeable future, with the outcome uncertain as Russians have made incremental progress, according to a senior U.S. administration official.

— Reuters

Russian torture chambers uncovered in Kherson, Ukraine

Kherson police said local residents were held in cells and rooms for days, tortured with electricity and batons and forced to write Russian patriotic texts. Kherson was the only regional capital captured by Russia since the invasion, and Ukraine liberated it late last year.

KHERSON, UKRAINE – JANUARY 04: Officers of the War Crimes Prosecutor office and police officers investigate war crimes committed by the Russian occupying forces on the local civilian population in the basements and rooms of Ukrainian penitentiary buildings on January 4, 2023 in Kherson, Ukraine. According to the Kherson police, local residents were held in cells and rooms for days, tortured with electricity, batons and forced to write Russian patriotic texts. Kherson was the only regional capital captured by Russia since the invasion and it was liberated by Ukraine late last year. (Photo by Pierre Crom/Getty Images)

Pierre Crom | Getty Images

A burnt bed within a room as officers of the War Crimes Prosecutor office and police officers investigate war crimes committed by the Russian occupying forces on the local civilian population in the basements and rooms of Ukrainian penitentiary buildings on January 4, 2023 in Kherson, Ukraine. 

Pierre Crom | Getty Images

A general view of the basement and rooms as officers of the War Crimes Prosecutor office and police officers investigate war crimes committed by the Russian occupying forces on the local civilian population in the Ukrainian penitentiary buildings on January 4, 2023 in Kherson, Ukraine. 

Pierre Crom | Getty Images

KHERSON, UKRAINE – JANUARY 04: Russian patriotic written letters as officers of the War Crimes Prosecutor office and police officers investigate war crimes committed by the Russian occupying forces on the local civilian population in the basements and rooms of Ukrainian penitentiary buildings on January 4, 2023 in Kherson, Ukraine. According to the Kherson police, local residents were held in cells and rooms for days, tortured with electricity, batons and forced to write Russian patriotic texts. Kherson was the only regional capital captured by Russia since the invasion and it was liberated by Ukraine late last year. (Photo by Pierre Crom/Getty Images)

Pierre Crom | Getty Images

Walls are marked with the Russian war symbol Z as officers of the War Crimes Prosecutor office and police officers investigate war crimes committed by the Russian occupying forces on the local civilian population in the basements and rooms of Ukrainian penitentiary buildings on January 4, 2023 in Kherson, Ukraine.

Pierre Crom | Getty Images

A general view of the basement and rooms as officers of the War Crimes Prosecutor office and police officers investigate war crimes committed by the Russian occupying forces on the local civilian population in the Ukrainian penitentiary buildings on January 4, 2023 in Kherson, Ukraine.

Pierre Crom | Getty Images News | Getty Images

A calendar marked on a wall in a cell as officers of the War Crimes Prosecutor office and police officers investigate war crimes committed by the Russian occupying forces on the local civilian population in the basements and rooms of Ukrainian penitentiary buildings on January 4, 2023 in Kherson, Ukraine.

Pierre Crom | Getty Images

— Pierre Crom | Getty Images

Zelenskyy and Macron discussed aid to boost Ukraine’s air defenses

Ukrainian President Volodymyr Zelenskyy shakes hands with French President Emmanuel Macron during a news briefing following their talks in Kyiv, Ukraine on February 8, 2022.

Gleb Garanich | Reuters

Ukrainian President Volodymyr Zelenskyy and French President Emmanuel Macron had a “long and detailed conversation” about efforts to boost Ukraine’s defenses against Russian attacks.

“We agreed on further cooperation to significantly strengthen our air defense and other defense capabilities,” Zelenskyy said in a post on his Telegram channel.

France and other European nations have funneled aid to Ukraine since Russia invaded its neighbor last year. Zelenskyy has pleaded for air defenses in particular as Russia pummels his country with missile strikes.

— Jacob Pramuk

Russia blames use of mobile phones for deadly Makiivka attack

Russia has been left reeling as the death toll rises following a Ukrainian strike on newly conscripted soldiers in Makiivka, a town in the partially Russian-occupied eastern Donetsk region in east Ukraine.

Russia’s Defense Ministry said Tuesday night that the death toll from the attack, which took place on New Year’s Eve, had risen to 89, according to reports by Russian state news agencies.

It had previously said 63 soldiers had died in the attack, which struck a college for conscripts in Makiivka, in a rare admission of multiple losses.

It blamed the unauthorized use of cellphones for the strike, saying their use had allowed Ukraine to locate and strike its personnel.

“This factor allowed the enemy to locate and determine the coordinates of the location of military personnel for a missile strike,” the ministry said in a statement, reported by RIA Novosti.

Mourners gather to lay flowers in memory of Russian soldiers who were killed in a Ukrainian strike on a college for newly conscripted Russian soldiers in the occupied city of Makiivka in eastern Ukraine on New Year’s Eve.

Arden Arkman | Afp | Getty Images

The ministry said Ukraine had struck the building in Makiivka using missiles from a HIMARS rocket system and claimed that Russian forces had intercepted four of six rockets. It claimed it had destroyed the HIMARS rocket system from which the attack was carried out. CNBC was unable to verify the defense ministry’s claims.

The attack has caused consternation in Russia, with mourners gathering in Samara, the region where the majority of the mobilized soldiers reportedly came from.

— Holly Ellyatt

Read CNBC’s previous live coverage here:


Here's how the House speaker debacle is paralyzing the U.S. Congress

The chair of the Speaker of the U.S. House of Representatives sits empty as the House embarks on another round of voting for a new House Speaker on the second day of the 118th Congress at the U.S. Capitol in Washington, U.S., January 4, 2023. 

Jonathan Ernst | Reuters

In her prayer pleading for an end to the “imbroglio of indecision” roiling the House of Representatives, the chamber’s chaplain sounded an alarm Thursday about the risk to the U.S. of not electing a speaker during a historic standoff that has effectively paralyzed the legislative branch of government.

“Watch over the seeming discontinuity of our governance, and the perceived vulnerability of our national security. Build your hedge of protection against those who would take advantage of our discord for their own gain,” said House Chaplain Margaret Kibben as she opened a third day of voting to elect the top official in the House.

Kibben wasn’t the only one worried about how the government would function after the new Republican majority failed to elect a House speaker during the first two days of the 118th Congress. As GOP leader Kevin McCarthy enters Thursday showing few signs of breaking an impasse with hardline conservative holdouts, it could take days more to fill the top House post.

The once-in-a-century stalemate has frozen governance in one of the two chambers of Congress. The longer the infighting prevents the election of a speaker, the more havoc it will wreak on the federal government.

While the lack of a speaker doesn’t pose an imminent threat to the U.S. economy, it paralyzes all action on the Hill. That could be especially detrimental if the nation were to face a major catastrophe that needed quick congressional votes or approval on emergency spending, as it did in the Sept. 11th attacks or during Covid.

Republicans still deadlocked over who should be Speaker of the House

As of Thursday, the chamber could not pass legislation or respond to a national emergency. Representatives-elect had not taken office, as the speaker swears them in after the election.

Representatives-elect across the country cannot provide formal services for constituents. Those include help with receiving federal benefits or recovering missing payments from the government.

“We cannot organize our district offices, get our new members doing that political work of our constituent services, helping serve the people who sent us here on their behalf,” incoming Democratic Whip Katherine Clark, D-Mass., told reporters in the Capitol Thursday morning.

CNBC Politics

Read more of CNBC’s politics coverage:

Within the House, the lack of a speaker has prevented the chamber from voting on a rules package governing the new Congress. The stalemate has stopped Republicans from installing their committee chairs or starting work on the panels.

If the House does not pass rules by Jan. 13, committee staff could start to lose pay, according to guidance sent to those panels reported by Politico.

The delays could also disrupt student loan forgiveness programs for House employees, the report said.

Lawmakers causing the chaos may not share in their staff’s pain. The pay period for House members typically begins Jan. 3, even if the new Congress starts later.

Democrats also emphasized that the absence of a speaker was threatening U.S. national security by keeping members of Congress from accessing classified intelligence that is only available to lawmakers after they have taken the oath of office, which none of them can take without a speaker.

Without committee chairs, they also cannot hold hearings; investigations underway in the last Congress come to a standstill. The debacle has delayed promised GOP-led committee probes into the Biden administration, which appear likely to dominate the early days of the new divided government.

In making their case to elect McCarthy and end the logjam, three likely incoming GOP committee chairs argued the delay has hampered their ability to protect national security and oversee the Biden administration.

“The Biden administration is going unchecked and there is no oversight of the White House, State Department, Department of Defense, or the intelligence community. We cannot let personal politics place the safety and security of the United States at risk,” Reps. Michael McCaul, R-Texas; Mike Rogers, R-Ala.; and Mike Turner, R-Ohio said in a statement Thursday. The lawmakers are in line to lead the House Foreign Affairs, Armed Services and Intelligence Committees, respectively.

Congress has already passed legislation funding the government through Sept. 30, at least removing the threat of a shutdown that could have displaced federal workers and disrupted government functions early this year.

— CNBC’s Chelsey Cox and Christina Wilkie contributed to this article.


Constellation Brands' shares tumble as higher costs hit beer supply chain

A worker stacks cases of Constellation Brands’ Corona beer for delivery at the Euclid Beverage LLC warehouse in Peru, Illinois.

Daniel Acker | Bloomberg | Getty Images

Shares of Constellation Brands fell Thursday after the wine, beer and spirits company reported ongoing supply chain costs that offset sales growth in its beer category.

The stock closed down nearly 9% Thursday.

The company, which makes Corona beer and Svedka vodka, also lowered its earnings out look for the fiscal year. Constellation said it now projects earnings of $11 to $11.20 per share for the year, down from its previous guidance of $11.20 to $11.60 per share. 

For the three months ended Nov. 30, Constellation’s beer segment posted year-over-year net sales growth of 8%, driven by continued growth of its Modelo Especial and Modelo Chelada brands.

However, the company cited higher costs from raw materials, packaging and logistics, brewery expansions and marketing, which offset beer sales growth.

In a conference call with analysts Tuesday morning, Chief Executive Officer Bill Newlands added that a “recent series of headwinds” hit the company’s beer business towards the end of its fiscal third quarter, including poor weather and economic conditions in California.

Its operating margin in the beer business decreased during the quarter to 37.5% from 41.3% a year earlier.

The company said it plans to continue price increases on its beer products to match higher operating costs plaguing its supply chain.

For its third quarter, Constellation’s over net income fell to $467.7 million, or $2.52 a share, from $470.8 million, or $2.48 a share, from a year ago.


China's new Covid surge is crippling the world's most important factories and biggest ports

Workers test transformers at a workshop of Hebei Gaojing Electric Equipment Co LTD in an industrial park in Handan, North China’s Hebei province, Jan 3, 2023.

CFOTO | Future Publishing | Getty Images

The surge in Covid-19 cases in China is impacting the completion of manufacturing orders, according to CNBC Supply Chain Heat Map data.

Logistics managers are warning clients that because of the spike in infections, factories are unable to complete orders — even with U.S. manufacturing orders from China already down 40% due to an unrelenting demand collapse.

Orders for ocean bookings continue to be softer according to SONAR Data.

“With 1/2 or even 3/4 [of the] labor force being infected and not able to work, many China manufacturers can not operate properly but produce less than their optimal outputs,” Hong Kong-based shipping firm HLS wrote in a note to clients. “The container pickup, loading, and drayage (trucking) are also affected as all businesses are facing the impacts of COVID. We expect a very soft volume after the Lunar New Year because a lot of factories have slowed production due to the increasing infection, and have to cancel or delay the bookings for the 2nd half of January and also early February.”

HLS also noted that “All indications that the Chinese cities are experiencing infection peaks is based on the surge of infected family members, friends, and colleagues, the long lines at the fever clinics at hospitals across the country.”

Three major ports across China are experiencing supply chain delivery problems because of Covid, according to the note.

For the Port of Shanghai, the world’s number one container port, the report warned that “Cancellations are increasing as many factories can’t operate properly due to a lot of workers getting infected with Covid.”

The same warning was also highlighted for the Port of Shenzhen, the fourth-largest container port in the world and the city that is home to Apple manufacturers. “The booking cancellation is increasing as many factories can’t operate properly due to a lot of workers getting invested with Covid,” the report said.

How dynamic Covid restrictions are impacting trade

Qingdao, the sixth-largest port in the world, is reported as having factories with only “1/4 labor force and can not ensure normal production.”

This data falls in direct contrast with reports from Chinese state media, which have looked to reassure the public that the outbreak is under control. The accuracy of data being released by the China CDC has come under increasing scrutiny around the world.

“Factory orders are down between 30%-40%, which you would think would help in the completion of the products,” said Alan Baer, CEO of OL USA. “This is not happening in some areas of the country which is troubling. Then you have to factor in the additional Covid surges after Chinese New Year. Q1 will be challenging.”

As a result of the Covid impact on trucking, MarineTraffic is seeing a slowdown in port productivity in Shanghai.

“While China has recently removed its zero-Covid restrictions, the congestion in Shanghai seems to have risen as MarineTraffic data shows that during the first week of 2023 that the average vessel TEU (twenty-foot equivalent unit) capacity waiting out of port limits was 321,989 TEUs, which is the highest amount recorded since April 2022,” said Alex Charvalias, Supply Chain In-Transit Visibility Lead at MarineTraffic. “Also, the congestion in Ningbo and Qingdao is rising as well, with 273,471 TEUs and 277,467 TEUs, respectively.

The record congestion was a result of the Covid lockdowns that started on March 28th. It took the city until mid-June to reopen after two failed attempts.

In prior outbreaks, the ports of Ningbo and Qingdao have been used as alternatives to avoid the Shanghai congestion. As a result of the logistics strategy, congestion can then follow. According to the HLS report, Ningbo was expected to have peak infections this week.

U.S. inventories could be impacted

Looking ahead at manufacturing orders and if there will be any increase in the near future, Baer told CNBC that “Transpacific to East Coast port volume will remain under pressure until companies reach a balance between existing inventory levels and their expected sales rate.” 

Data from WarehouseQuote shows inventories are still at all-time highs.

“We are still seeing an extremely tight market with limited [third-party logistic] and industrial capacity nationwide,” said Jordan Brunk, chief marketing officer for WarehouseQuote. “We are continuing to see consistent increases in storage rates all over the U.S., with the exception of the southeast, which would indicate capacity is still tight across nearly all regions.”

CNBC Supply Chain Heat Map data providers are artificial intelligence and predictive analytics company Everstream Analytics; global freight booking platform Freightos, creator of the Freightos Baltic Dry Index; logistics provider OL USA; supply chain intelligence platform FreightWaves; supply chain platform Blume Global; third-party logistics provider Orient Star Group; global maritime analytics provider MarineTraffic; maritime visibility data company Project44; maritime transport data company MDS Transmodal UK; ocean and air freight rate benchmarking and market analytics platform Xeneta; leading provider of research and analysis Sea-Intelligence ApS; Crane Worldwide Logistics; DHL Global Forwarding; freight logistics provider Seko Logistics; Planet,  provider of global, daily satellite imagery and geospatial solutions, and ITS Logistics provides port and rail drayage services in 22 coastal ports and 30 rail ramps throughout North America.


SBF's Robinhood stake seized, and Silvergate reports $8.1 billion in withdrawals: CNBC Crypto World


CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Tim Rice of Coin Metrics reveals the most important data crypto investors should watch in 2023.


Bed Bath & Beyond shares plummet after company warns of potential bankruptcy

What Bed Bath and Beyond's bankruptcy warning could mean for meme stocks

Bed Bath & Beyond warned Thursday it’s running out of cash and is considering bankruptcy.

The retailer, citing worse-than-expected sales, issued a “going concern” warning that in the upcoming months it likely will not have the cash to cover expenses, such as lease agreements or payments to suppliers. Bed Bath said it is exploring financial options, such as restructuring, seeking additional capital or selling assets, in addition to a potential bankruptcy.

Shares of the company fell about 30% to close the day at $1.69 after Bed Bath issued the updates in a pair of financial filings. The stock earlier touched a 52-week low earlier in the day. Its market value has fallen to about $149 million as of Thursday’s close.

A Bed Bath & Beyond store is seen on June 29, 2022 in Miami, Florida.

Joe Raedle | Getty Images News | Getty Images

Still, CEO Sue Gove said the retailer is focused on rebuilding the business and making sure its brands, Bed Bath & Beyond, Buybuy Baby and Harmon, “remain destinations of choice for customers well into the future.”

Among its challenges, Bed Bath said it is having trouble getting enough merchandise to fill its shelves and is drawing fewer customers to its stores and website.

The retailer also said it wasn’t able to refinance a portion of its debt, less than a month after notifying investors it planned to borrow more in order to pay off chunks of existing obligations.

Bed Bath’s debt load has been weighing on the company. The retailer has nearly $1.2 billion in unsecured notes, which have maturity dates spread across 2024, 2034 and 2044. In recent quarters, Bed Bath has warned it’s been quickly burning through cash.

Bed Bath’s notes have all been trading below par, a sign of financial distress. 

Stalled turnaround

Bed Bath has been through an especially tumultuous stretch, with the departure of its CEO and other top executives, companywide layoffs, store closures and an overhaul of its merchandise strategy. As sales declined, its CEO Mark Tritton got pushed out in June. Gove, who stepped in as interim CEO, has assumed the role permanently.

She laid out a comeback strategy in late August. As part of the plan, she said the company would cut costs by shrinking its store footprint and workforce. Gove said it would add back more items from popular national brands, as it shifted away from an aggressive private label strategy. And she said it had secured more than $500 million in new financing to help steady the business.

The company said during its last earnings report it believed it had enough liquidity to forge ahead.

In a news release Thursday, Gove said recent sales results illustrate why that turnaround plan is so important.

“Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress,” she said.

The company is also looking for a chief financial officer after executive Gustavo Arnal died by suicide in September.

If you are having suicidal thoughts, contact the Suicide & Crisis Lifeline at 988 for support and assistance from a trained counselor.

Mounting losses


CNBC Pro Talks: Goldman's top picks in the energy sector, which it sees winning again this year



CNBC Pro takes you to the Goldman Sachs Global Energy Conference in Miami. Brian Sullivan sits down with Goldman Sachs Head of Americas Natural Resources Equity Research Neil Mehta to discuss the macro outlook for the energy sector and which stocks Mehta likes most in 2023.


Thu, Jan 5 20232:06 PM EST


Amazon’s 18,000 job cuts don't go far enough. We expect more layoffs are on the horizon

The regulator was concerned with Amazon’s dual role as both a marketplace and a competitor to merchants selling on its platform.

Nathan Stirk | Getty Images

Amazon‘s (AMZN) plans to cut 18,000 workers is a drop in the bucket relative to its workforce of roughly 1.5 million. It’s likely just the beginning as the e-commerce and cloud giant struggles to get a grip on its expenses.


Dow closes 300 points lower after strong jobs data signals more rate hikes

Pro Picks: Watch all of Thursday's big stock calls on CNBC

Stocks fell Thursday after jobs data showed the labor market is still strong despite the Federal Reserve’s interest rate hikes to tame inflation.

The Dow Jones Industrial Average fell 339.69 points, or 1.02%, to 32,930.08. It was weighed down by Walgreens, which lost 6.13% after earnings showed a $5.2 billion opioid litigation settlement drove a quarterly loss.

The S&P 500 shed 1.16% to close at 3,808.10 and the Nasdaq Composite slipped 1.47% to 10,305.24. Bed, Bath & Beyond shed 29.88% after saying its short on cash and considering bankruptcy, and crypto-friendly bank Silvergate Capital plummeted 42.73% after it disclosed major customer withdrawals. All three averages are on track to notch five weeks of losses

Stocks rose from lows of the day in the afternoon but remained down when St. Louis Federal Reserve President James Bullard said that 2023 may be a disinflationary year in a speech. He also noted that while current policy isn’t “sufficiently restrictive,” it’s moving in that direction and should reach it this year.

Stocks opened lower after the ADP private payrolls report showed that employers added 235,000 jobs in December, well above economist estimates. Wages also increased more than anticipated, another sign that the labor market remains hot. Later in the morning, weekly jobless claims came in below expectations and showed a drop in continuing claims.

“While we will get a better overall picture of the jobs market tomorrow, private payrolls beating expectations and jobless claims coming in below are indications that the labor market remains resilient,” said Mike Loewengart of Morgan Stanley Global Investment Office.

“These come on the heels of big-name companies announcing sizable job cuts so there is no doubt the market’s pressures are weighing on companies, but it remains to be seen when hiring will slow demonstrably,” he added.

On Friday, investors will review the December jobs report for updated data on employment and hourly wages. Economists estimate that U.S. employers added some 200,000 jobs in December, which would represent a moderate slowdown from gains in the previous month.

A higher number would be further bad news to the Fed that the labor market is still strong. In addition, investors don’t want to see big gains in wage growth, which could signal higher inflation.

Correction: A previous version misspelled Loewengart’s last name.