3. At risk
There’s a dangerous dynamic playing out in banking that’s left hundreds of institutions vulnerable, CNBC’s Hugh Son reports. An analysis by consulting firm Klaros Group found more than 280 banks have both high exposure to commercial real estate and sizable unrealized losses resulting from the Federal Reserve’s repeated rate hikes. Those challenges have left banks likely in need of private investment or consolidation. But M&A is hard to pull off right now, which means cracks may soon appear.
4. Up for a vote
Volkswagen workers at a plant in Chattanooga, Tennessee, have filed a petition with the National Labor Relations Board to hold a unionization vote. It’s a major milestone for the United Auto Workers in its push to organize workers at 13 automakers after its record-breaking contracts with Ford, GM and Stellantis last year. The UAW said a “supermajority of Volkswagen workers have signed union cards in just 100 days.” VW, which has more than 4,000 union-eligible employees at the Chattanooga plant, said it “fully” supports an NLRB vote.
5. Iced out
Unilever is spinning out its ice cream unit, which includes popular brand Ben & Jerry’s. The division generated 7.9 billion euros (about $8.6 billion) in revenue last year, accounting for roughly 13% of the company’s total 2023 revenue. But the UK company said it believes the unit will operate better as a standalone business. It announced the separation as part of a restructuring plan to become “a simpler, more focused company,” which also involves about 7,500 job cuts.
— CNBC’s Sara Salinas wrote this newsletter. Brian Evans, Kif Leswing, Hugh Son, Michael Wayland and Karen Gilchrist contributed.
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