Axios

Massive cleanup operations recently kicked off inside three of America's most iconic companies: Boeing, Starbucks and Nike.

Why it matters: Each dominate vastly different industries, but they all have two main problems — focus and culture.

McDonald's confirmed Wednesday that, as a precautionary measure, one-fifth of its restaurants are temporarily not selling Quarter Pounders because of the E. coli outbreak.

Why it matters: The fast-food giant is trying to reassure consumers that this doesn't appear to be a widespread or nationwide issue.

Dow Jones is expanding the Wall Street Journal's flagship Tech Live event to Qatar next year as a part of a broader effort to build its business in the region.

Why it matters: "All of our verticals are growing in the Middle East," said Josh Stinchcomb, global chief revenue officer at the Journal.

Democratic vice presidential candidate Gov. Tim Walz took aim at SpaceX CEO Elon Musk at a campaign stop Tuesday, blasting him as a "dips--t."

Why it matters: Walz shirked his "Minnesota nice" demeanor to scorch the billionaire who is helping bankroll former President Trump's campaign.

Twenty-three Nobel prize-winning economists are backing the economic policies of Vice President Kamala Harris in a letter released Wednesday, warning that former President Trump's economic policies would increase national debt and lead to higher prices.

Why it matters: With the economy a top priority for voters in the 2024 election, the signees backing Harris' policies are a boost for the Democratic nominee with less than two weeks until Election Day.

The U.S. Department of Transportation (DOT) slapped American Airlines with a record-setting $50 million fine on Wednesday for violating laws meant to protect passengers with disabilities.

The big picture: American Airlines was one of the worst performers among U.S. airlines in wheelchair and scooter mishandling claims and the rate of mishandling claims, the DOT said in a release announcing the penalty for violations between 2019 and 2023.

Two of America's biggest business titans — Bill Gates and JPMorgan Chase CEO Jamie Dimon — are secretly supporting Vice President Kamala Harris, the N.Y. Times reported yesterday in separate stories.

Why it matters: Former President Trump has threatened retribution against Democratic donors and political opponents.

In the closing days of what he says is his last campaign, Donald Trump has launched a strategy combining splashy, attention-getting stunts with dark, apocalyptic messaging.

Why it matters: It's a scaled-up version of a familiar Trump routine — stay in the news, be provocative, deflect.

An E. coli outbreak linked to McDonald's Quarter Pounders has left one person dead and caused 10 hospitalizations, the CDC said Tuesday.

The big picture: There are 49 cases in 10 states, the CDC said in a food safety alert.

Forms of generative AI are playing a role in all of Vista Equity Partners' portfolio companies, founder Robert Smith said at Axios BFD, and are driving innovation across product lines.

Why it matters: Smith made the point that AI innovation is not leading to headcount reductions inside his firm or within Vista's portfolio company universe.

Walmart is jumping into same-day prescription drug delivery in direct competition with its rival Amazon and struggling drugstores.

Why it matters: It's the latest battleground in a rapidly changing pharmacy retail industry.

General Motors today raised its full-year earnings outlook after its third-quarter performance sailed past expectations.

Between the lines: The automaker is containing losses in China, growing its EV market share and maximizing the profit potential of its gas-powered vehicles in North America.

• GM posted revenue of $48.8 billion, up 10.5% compared with a year earlier and beating S&P Capital IQ expectations of $44.4 billion.

Former Abercrombie & Fitch CEO Mike Jeffries, his partner Matt Smith and another man, Jim Jacobson, were arrested Tuesday as part of a criminal sex trafficking investigation, a spokesperson for the U.S. Attorney's Office for the Eastern District of New York confirmed.

The big picture: Their arrest comes nearly a year after a former model sued the fashion brand, accusing Jeffries of leading a "widespread sex-trafficking operation."

Starbucks sales plunged in its most recent quarter, increasing the urgency for new CEO Brian Niccol to pull off a turnaround.

Why it matters: The company has been struggling to reverse a decline in foot traffic as it grapples with sluggish service and pressure from activist investors.

Heightened regulation is a major stumbling block for innovation and dealmaking, Nasdaq CEO Adena Friedman told Axios on Tuesday.

Why it matters: The FTC and DOJ have ramped up enforcement actions in response to the growing number of large transactions, leading to nearly a dozen mergers abandoned or restructured last year alone.

A group of senior investors and advisers joined Axios moderators for a private credit roundtable ahead of the Axios BFD conference in New York on Tuesday.

What they're saying: The hourlong discussion featured a range of views and insights on the growth and innovation of private credit, and the challenges of lending in a market where deal flow is historically low.

• Asset-backed loans, banks vs. direct lenders, GP-LP dynamics, and private credit's potential move into the public domain all featured in the conversation.
• Below is a quick snapshot of views shared by the 18 speakers at the roundtable.

Private credit is supporting capital-intensive transitions.

• "I think the demand for capital to finance this transition around AI and energy transition, that the amount of capital that's required ... that's just the big tip of the iceberg," said Goldman Sachs' Christina Minnis, global head of acquisition finance.
• "There's a voracious need for capital to get our economy through this AI transition and the need for energy and everything we're reading about data centers, etc.," Minnis added.

Companies large and small have access to a range of products.

• "There's an economy of these up-and-coming origination businesses ... that don't have enough track record to get money-center-bank money or they have some structural issue with the product that they're originating that doesn't allow them to get a rating from the ratings agency yet," CoVenture partner Brian Harwitt said.
• "We're looking at things that are way pre-ratings ... finding new payment streams that are fragmented, that are not large enough for any kind of investment grade or securitized financing and figuring out creative ways to provide solutions to those companies and rights holders," said Josh Harlan, managing partner at Harlan Capital Partners.

Benefits that exist in the private market are growing, Ro CEO Zach Reitano said at Axios' BFD event in New York on Tuesday.

Why it matters: The company has raised over a billion dollars, but it sounds like Ro won't be going public anytime soon.

NCAA president Charlie Baker harshly criticized NIL (name, image, likeness) collectives for preying on college athletes at Axios' BFD event in New York on Tuesday.

Why it matters: Collectives have been blamed for turning college sports into a Wild West that ends up harming students.

TollBit, a two-sided marketplace for publishers and AI companies, has raised a $24 million series A round led by Lightspeed Venture Partners, executives told Axios.

Why it matters: TollBit hopes its marketplace can reduce the legal and business friction that's made data-sharing between the media industry and AI firms tense and complicated.

Child welfare advocates are pressuring New Mexico, which has the largest proportion of Latino residents nationwide, to create state-funded saving accounts for children born into poverty.

Why it matters: Roughly 28% of New Mexico children under age 5, and a quarter of those under 18, live in poverty — while the official poverty level nationally is 11.1%.

Spotify is piloting an ad exchange, or a supply-side platform (SSP), to help scale its automated ad offerings, three sources familiar with the effort told Axios. The focus will be on video to start.

Why it matters: In building its own exchange, Spotify can capture more ad revenue from small- and medium-sized businesses and make it easier for existing clients, including big brands, to spend more efficiently with the platform.

The Internal Revenue Service released its annual inflation adjustments Tuesday with new federal income tax brackets and standard deductions for the 2025 tax year.

Why it matters: The changes, which include other tax provisions, are going up by the smallest amount in recent years.

Horror fans and Halloween party hosts, these are the terrifying titles available to stream this October on Netflix, Hulu, Peacock, Apple TV+, Prime Video and Max.

What we're watching: Horror, thriller and suspense from "Dracula," "Ghostface" and "Coraline" to paranormal mysteries and true crime.

The NewsGuild of New York has filed an unfair labor practice charge with the National Labor Relations Board against the New York Times, claiming management violated the National Labor Relations Act by interrogating employees about their strike sentiments within the past six months.

Why it matters: The complaint adds to growing tensions between the unions the NewsGuild represents and the Times' management as the Tech Guild threatens to strike, possibly around the election.

College athletes are on their way to becoming paid school employees.

Why it matters: The House vs. NCAA legal case and pending settlement on name, image and likeness (NIL) has set the stage for radical changes that will forever alter the experience of athletes and college students.

Morning Brew, the decade-old newsletter startup, is rebranding its corporate name to Morning Brew Inc., a reflection of its growth outside of its core daily email newsletter and most popular product, Morning Brew.

Why it matters: The rebrand further distinguishes Morning Brew's consumer brands from its professional brands, which today drive $25 million in annual revenue for the company, according to an internal note from CEO and co-founder Austin Rief.

The Energy Department just announced 14 "clean" manufacturing projects it plans to stake in regions hit by closures of coal mines and coal-fired power plants.

Why it matters: Many of the projects use recycled materials and aim to shore up domestic supply chains, officials said.

OpenAI and its minority owner Microsoft are funding a $10 million AI collaborative and fellowship program operated by the Lenfest Institute, a nonprofit that supports local journalism.

Why it matters: The partnership represents the largest local news development collaborative working on AI specifically, per Jim Friedlich, executive director and CEO of The Lenfest Institute.

Three major retailers — Target, Walmart and Aldi — are promising to cut prices for the holidays after four years of higher costs.

Why it matters: Discounts were hard to come by during the inflation crisis but now retailers are getting more competitive to entice shoppers to spend.

After two years of doom and gloom, digital health deals are showing signs of life, with venture capital firms making more focused bets and interest rate cuts rekindling some of the COVID-era optimism around the sector.

Why it matters: The pandemic experience was supposed to be a boon for direct-to-consumer disease treatments, digital therapeutics and decentralized care.

For the last 15 years, all you've needed to do to achieve double-digit returns on your money was park it in an S&P 500 index fund, reinvest dividends, and forget about it. That happy ride may be over, according to a new note from Goldman Sachs that has Wall Street abuzz.

The big picture: The S&P is on track to return only about 3% a year in the coming decade, Goldman's portfolio strategy group estimates. Compare that to 13% average annual returns over the last ten years.

Weeks before "Wicked" flies into movie theaters, promotions for the film are starting to pop up everywhere from grocery stores to Starbucks and beyond.

Why it matters: "Wicked" is on track to have one of the biggest opening weekends of 2024 with first-day ticket presales on Fandango trailing only "Deadpool & Wolverine," according to NBCUniversal.

Once a bastion for buttoned-up center-right executives, corporate America has drifted left, a new study finds.

Why it matters: While radical leftists have hardly conquered the business world, the research is a sign that the strong connection between the Republican party and corporate America is loosening.

Elon Musk, Tesla and Warner Brothers Discovery are being sued by "Blade Runner 2049" production firm Alcon Entertainment for alleged copyright infringement, which accused them on Monday of "a massive economic theft."

The big picture: Alcon alleges the defendants used an AI-generated image like the one from "Blade Runner 2049" to promote Tesla's robotaxi concept at Warner Bros. Discovery's studio lot in Burbank, California, earlier this month after it denied their request to use "an iconic still" from the 2017 movie at the event.