National

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Infrastructure investors are enthusiastic that Congress finally passed a giant infrastructure bill, but they tell Axios that it won't be a "game changer" for their strategies.

Between the lines: The bill is more of a stamp of approval for what these firms have already been doing.

Stay of play: Global infrastructure fundraising has been robust, with 107 funds raising a cumulative $93.6 billion in 2020 and 53 funds raising $73.3 billion in the first three quarters of 2021, per PitchBook.

PitchBook analyst Rebecca Springer says LPs are increasing their allocations to infrastructure because of strong returns and as an inflation hedge.

Big picture: The infrastructure bill authorizes about $1.2 trillion to be spent over the next 10 years in areas such as broadband, electric grids, public transit and EV charging.

What they’re saying: “It’s a really exciting bill because it’s so massive and brings a lot of attention on infrastructure, which is sorely needed,” says Alex Symes, director of global real assets research at BlackRock.

“It may help give us conviction around some of those assets or areas,” says Alex Darden, EQT president and head of U.S. infrastructure.

For example, school bus electrification “right now is not economic,” he explains. “So the grants that are in the infrastructure bill will hopefully allow us and others to accelerate our electrification strategies,” he adds, pointing to portfolio company First Student as one that could benefit.

Notably: Investors who spoke with Axios highlighted the bill’s provisions for broadband and other digital infrastructure as particularly exciting, both as a direct boon for their portfolio companies that provide internet connectivity and for the trickle-down effects of more Americans having access to high-speed internet.

Yes, but: The lack of overt mandates or support for public-private partnerships is where investors say the bill falls short (though none are surprised).

“As an American, it’s pretty disheartening because I think we are not taking advantage of all the resources that exist to improve our infrastructure,” says Darden. It's a pretty accepted strategy in other countries but has a negative connotation in the U.S., he adds.

Infrastructure investors see new bill as encouragement

"It’s a really exciting bill because it’s so massive and brings a lot of attention on infrastructure, which is sorely needed."

Illustration of a construction barrier and traffic cones in front of a broken up dollar bill.

Investors

Policymaking

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

Axios Media Trends

The Information is launching a new section called "The Information Weekend," that will offer long-form coverage of lifestyle and trend reporting. 

Why it matters: It's a departure from The Information's mostly business-focused breaking news content.

While The Information does publish some features right now, the new section is meant to provide lighter content that's focused on lifestyle trends.

The new team will be led by Jon Steinberg, former editor-in-chief of San Francisco magazine and senior editor at New York magazine, who will serve as editor.

Josh Duboff, formerly of Vanity fair, will serve as a contributing editor. Annie Goldsmith, previously a writer for Town & Country magazine, will report for the tech section. Journalist and researcher Emily Dreyfuss will author a regular column on modern parenting in the digital age.  

The section will focus on trends and lifestyle news via longer features that are meant to be witty, fun and practical.

New stories will publish every Friday and are meant to serve as softer weekend reads for The Information's audience of mostly business and technology executives. 

In the first edition out Friday afternoon, one story includes a feature on celebrities' kids souring on TikTok. 

The content will have a dedicated section on The Information's site and will have its own newsletter. 

The big picture: It's the latest product expansion from The Information, the subscription-based business and tech publication owned and launched by media veteran Jessica Lessin. 

Lessin told Axios earlier this week that the company is launching a newsletter network that will expand its current newsletter portfolio to more outside voices across a variety of topic areas that don't necessarily have to be focused on business or tech. 

The Information launches new long-form features section

The new section is meant to provide lighter content that's focused on lifestyle trends.

The Information’s founder and editor-in-chief Jessica Lessin. Photo: Bobby Longoria/Getty Images for SXSW

Publishing

Axios Pro Rata

Public company shareholders no longer need to pick sides when an activist investor tries to assume board control, as either/or votes will look more like mix-and-match.

Driving the news: The SEC yesterday adopted a rule whereby shareholders voting by proxy can pick individual directors, rather than being required to vote for an entire slate of nominees. This will be done via the introduction of what the SEC calls "universal proxy cards."

Most outside shareholders vote via proxy.

Between the lines: This change will give investors more say and flexibility, in keeping with the SEC's ethos under Biden/Gensler (not surprisingly, this rule change was first floated under Obama). It also could make it easier for activists to gain a foothold in the boardroom, but possibly harder for them to assume board control.

The new rule also requires some additional disclosures and explanation on proxy cards, and a requirement that activists solicit shareholders representing at least two-thirds of the voting power (although that solicitation can simply be via passive postcard, so it's a pretty toothless guardrail).

Look ahead: Expect to see more activist campaigns, now that the bar has been lowered for them to acquire at least some boardroom influence.

SEC changes the rules for activist investors

The SEC will now allow shareholders voting by proxy can pick individual directors, rather than voting for a slate of nominees.

A bunch of swivel chairs with a red background

Securities and Exchange Commission (SEC)

Sierra Space, a Louisville, Colo.-based commercial space transportation and infrastructure company, raised $1.4 billion in Series A funding at a $4.5 billion valuation.

Why it matters: This is one of the largest VC raises ever for an aerospace company, and moves Sierra Space closer toward its ultimate goal of building a private space station in orbit. In the meantime, it's also working on low-orbit spaceplanes that can deliver cargo and, eventually, crew.

Investors: Coatue, General Atlantic and Moore Strategic Ventures co-led, and were joined by BlackRock, AE Industrial Partners and family offices of Stanley Druckenmiller and Vincent Viola.

History: Sierra Space was formed earlier this year via a spinout from Sierra Nevada Corp., which said the move was partially designed to secure outside investment.

The bottom line: "Sierra Space's planned space station, Orbital Reef, is a joint project with Jeff Bezos's Blue Origin and may be operational by 2027. Companies seeking zero-gravity or microgravity environments for pharmaceutical research, 3D-printed human organs, or work in fiber-optics, energy and semiconductors, have expressed interest in station, [CEO Tom] Vice said." — Gillian Tan, Bloomberg

Sierra Space raises $1.4 billion at $4.5 billion valuation

It moves the company closer toward its ultimate goal of building a private space station in orbit.

Space

A look at the scientific breakthroughs changing the world, explorations in space and in worlds beyond our own and the threats posed to us by our own planet, both out of our control and of our own making.

Science

A high-stakes battle over the next bank cop just got shoved into the spotlight. 

Driving the news: A crucial hearing yesterday — that was ugly and tense at times — made one thing clear: Saule Omarova's shot at leading one of the nation's most powerful financial regulators may be at risk, with growing opposition from both sides of the aisle.

Why it matters: The law professor — a vocal critic, who's put forth proposals that would "end banking as we know it” — is gunning to oversee lenders whose assets make up two-thirds of the banking system's total.

If confirmed as head of the Office of the Comptroller of the Currency, Omarova could leave a mark on hugely important issues, including how banks interact with cryptocurrency or lend to controversial industries — and who gets to be a national bank.

The latest: Omarova's critics are getting louder.

Republicans claim her academic research suggests support for nationalizing the bank sector. Moderate Democrats don't like that she opposed a law that eased some regional bank regulations — or that she said earlier this year that small oil-and-gas companies should go bankrupt to help “tackle climate change.”

During yesterday's hearing before a key Senate panel, Omarova pushed back: She said the fossil fuel industry was “a very important part of the economy” and that her research isn't an endorsement of any one idea.

Catch up quick: The OCC has had temporary leaders — though, acting heads might not feel totally entitled to pursue an aggressive agenda.

By the numbers: The office has been without a permanent head for nearly 18 months straight — including the 10 months Biden has been in office, according to data from the nonprofit Partnership for Public Service.

What we're watching: Other Democrats on the committee, including Sen. Elizabeth Warren (D-Mass.), support Biden's pick.

Warren said Republicans who oppose Omarova "are doing the bidding of giant banks that want to keep gobbling up smaller competitors, want to keep ripping off their customers, and want to keep getting away with it.”

If there’s no Republican support, just one Democratic opposition could sink the nomination. That may extend the regulatory limbo. 

One thing looming: A half-century-old anti-redlining law that the next leader could revamp.

What's next: There's no date yet, but the banking committee will vote on whether to advance Omarova — who would be the first nonwhite and first female to permanently get the job — to a full Senate vote.  

Go deeper: More Democrats cool on Biden currency comptroller pick

Biden's top bank regulator nomination at risk after tense hearing

A high-stakes battle over the next bank cop just got shoved into the spotlight.

Saule Omarova, nominee for Comptroller of the Currency, at a confirmation hearing on Nov. 18.

Saule Omarova, nominee for Comptroller of the Currency, at a confirmation hearing on Nov. 18. Photo: Anna Moneymaker/Getty Images

Senate

Supply chain snarls are probably here to stay. That’s not to say that today’s specific challenges won’t abate at some point. But there will be new ones — different from our current variety of chip shortages and a dearth of truck drivers.

Why it matters: Pandemic-driven turmoil may have put supply chains on the public’s radar, but major disruptions were picking up even before COVID — think trade wars, Brexit, and an increasing number of extreme weather events.

Meanwhile, some of the most disruptive events of the COVID era were not COVID-related: the Texas freeze, Hurricane Ida, cargo ships stuck in canals.

What they’re saying: “Supply chain disruptions will continue to happen both more frequently, and with potentially larger magnitude,” Dan Swan, co-lead of McKinsey's operations practice, tells Axios.

For companies, these issues have grown from being a responsibility handled by operations teams, into a CEO-level priority — and that’s likely to continue, he says.

State of play: In McKinsey's latest survey of global supply chain leaders, released today, 92% of respondents said they had changed their supply chain footprints in the last year to boost resilience.

That compares to the less than three-quarters who thought they'd do so, as of the same survey last year.

What’s next: Almost 90% of survey respondents expect to pursue some sort of regionalization — moving certain operations, like factories, closer to customers — during the next three years (Ford and GM, for example, are both forging deals with chipmakers to produce domestically).

And it'll be more common for companies to ask for information about their suppliers' suppliers — because breakdowns there can ripple through the chain, Swan says.

We're not there yet: Less than half of the company leaders in McKinsey's survey said they understand the risks their key suppliers face.

The bottom line: As a supply chain professional, Swan jokes that he has “never been more popular” than he is right now.

Supply chain woes aren't going anywhere — and job postings on Indeed.com for logistics specialists and coordinators are up 37% since April.

The big picture: Digitization has accelerated a skills gap. Jobs in demand-planning have transformed into roles that require data scientists, McKinsey's Swan says.

Only 1% of respondents to McKinsey's survey of global supply chain leaders said they have sufficient in-house digital talent.

And 55% of survey respondents said they are investing in re-skilling their existing employees to address the shortfall.

Supply chain troubles aren't going anywhere

Some of the most disruptive events of the COVID era were not COVID-related.

Illustration of a metal chain with a paperclip as a link.  

Logistics

NW Arkansas

Axios Northwest Arkansas

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A Zipline drone takes off with Walmart products from a Neighborhood Market in Pea Ridge, Arkansas. Photo: Worth Sparkman/Axios

Starting today, drones shaped like miniature airplanes will drop packages of 4 pounds or less in customers' yards when they order from a Walmart Neighborhood Market in Northwest Arkansas.

Why it matters: The era of ubiquitous delivery by drone is inching forward, with scattered pilot programs involving pizzas and other light shipments — and the imprimatur of Walmart on this service is a big deal.

Driving the news: Walmart and its partner, the drone-maker Zipline, announced their new service Thursday. It will operate from a 25-foot takeoff and landing platform behind a Neighborhood Market in rural Pea Ridge, Arkansas, about 20 minutes from the retailer's home office.

The companies will use the results of the trial program to figure out how — or if — to expand the service to other markets. 

The big picture: Customers increasingly expect to have their orders delivered as soon as possible, and the "last mile" persists as the thorniest issue. According to Deloitte, delivery-by-drone is estimated to become a $115 billion industry by 2035.

Zipline says its cute little aircraft can loft packages of about 4 pounds, and can get them to customers within 30 minutes of an order.

How it works: Customers within the service area place and schedule an online order — for now, nonprescription drugstore items and some types of (lightweight) food are allowed. A Walmart employee bundles it up and hands it off to a Zipline staffer. 

Zipline preps and launches the drone, which drops the package with a biodegradable parachute. The drone returns to the platform for another order. 

Officials told Axios that packages consistently land in an area the size of two parking spots.  

A Zipline drone drops a package. Photo: Courtesy Zipline 

The intrigue: The Zipline drones do all the flying on their own, with no cameras or remote human pilots.

The drone will circle its target to determine wind direction, then approach the drop zone from the best angle so the package lands nearest the target.  

The drone's 11-foot wings are equipped with proprietary sensors to ensure that it doesn't go where it's not supposed to. 

What they're saying: Zipline COO Liam O'Connor told Axios that it could launch a drone from the platform every 90 seconds, potentially making hundreds of deliveries a day. 

He acknowledged the market is competitive, with companies like Alphabet and Amazon racing for primacy.

He said Zipline's track record of delivering medicine in Rwanda and Ghana gives it an edge. 

What we're watching: The drones are operating under a waiver from the Federal Aviation Administration that permits flight within limited airspace and only during daylight. Eventually, Zipline could operate within a 50-mile radius of its home Walmart store. 

Walmart says it's working with the FAA to expand delivery to even more customers in Northwest Arkansas, but had no timeline. 

Editor's note: Reporter Worth Sparkman is a Walmart shareholder. 

A milestone in delivery by drone

A Walmart pilot drops 4-pound packages in people's yards

Drones

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

Data: American Farm Bureau Federation; Chart: Sarah Grillo and Will Chase/Axios; Note: Milk was removed from our analysis, resulting in minor differences between our totals and those reported by the Farm Bureau Federation

Putting together a traditional Thanksgiving meal will cost about 14% more this year than it did in 2020.

Why it matters: Thanksgiving inflation, according to price estimates from the American Farm Bureau, is even greater than the overall increase in the cost of food.

Details: A 16-pound turkey will set you back about $24, almost $5 more than the average cost a year ago, according to the American Farm Bureau's informal survey of prices at grocery stores across the country.

The ingredients for a "classic" Thanksgiving meal add up to $53, per the Farm Bureau. Add a ham and a couple more sides to the table, and the total rises to $65.

Inflation, supply-chain problems and "high global demand for food, particularly meat" have all contributed to the rising costs, Farm Bureau senior economist Veronica Nigh said in a release.

Yes, but: The Farm Bureau's math is based on the quantities of food you'd need to feed 10 people, and for a 10-person gathering, a $53 meal would still come out to less than $6 per person.

What's next: Shortages and supply-chain problems are likely to persist throughout the holiday season. 

Thanksgiving inflation: Cost of turkey feast up 14%

The cost of a turkey dinner is up by about 14%.

Thanksgiving

A graphic showing the average 2021 Thanksgiving table costs

Greece on Thursday became the latest country to announce additional restrictions on people not vaccinated against COVID-19.

Why it matters: Like other countries imposing restrictions on the unvaccinated, Greece is facing a spike in coronavirus cases and 61.1% of people are vaccinated in the country, compared to 64.5% in the EU, per the European Centre for Disease Prevention and Control. 

Prime Minister Kyriakos Mitsotakis noted in his nationally televised address Thursday that "this is indeed a pandemic of the unvaccinated," per Reuters, which reports officials had aimed to have 70% vaccinated by the fall.

The big picture: From Monday, unvaccinated people will be prohibited from entering indoor spaces, such as cinemas, theaters museums and gyms — even if they test negative for the virus.

In September, the Greek government announced restrictions preventing the unvaccinated from entering indoor areas of cafes and restaurants, the New York Times notes.

By the numbers: New daily COVID-19 cases have jumped from an average of about 2,100 at the end of September to over  6,500, according to the Oxford University-based Our World in Data project.

The average number of deaths from the virus has risen from an average of about 30 to over 74.

Greece to add restrictions on unvaccinated as COVID cases jump

"This is indeed a pandemic of the unvaccinated," Greece's prime minister said.

People visit the Archaelogical Musuem in Athens, on the International Museums Days, on May 18, 2021. 

The Archaelogical Musuem in Athens, Greece. Photo: Louisa Gouliamaki/AFP via Getty Images

Greece

Coronavirus

China is becoming the most formidable rival America has faced, and the risk of confrontation with Russia, North Korea or Iran still looms. Authoritarians are rising, the chaotic Afghanistan exit revealed the limits of U.S. power, and the pandemic, climate change and other critical challenges continue to pose grave threats.

World

The U.S. faces a range of health care flashpoints — unaffordable drugs, opioids, vaping — as we debate whether to adopt universal care. For now, the Affordable Care Act is the law of the land, but Republicans want to issue it a final death blow.

Health

India's Prime Minister Narendra Modi announced Friday that his government will repeal the country's farming laws that were introduced in September 2020.

Why it matters: The laws to deregulate agriculture sparked months of massive protests, led by thousands of farmers who said the legislation threatened their businesses and livelihoods.

The significant backflip by Modi's government coincided with the Sikh's Guru Purab festival and ahead of crucial elections in states including Punjab, where the majority religion is Sikhism.

The majority of demonstrators are Sikh farmers from Punjab, AP notes.

Details: Modi said during a televised address that his government had decided to withdraw all three of the controversial agricultural laws, per Reuters.

"In the parliament session starting later this month, we will complete the constitutional process to repeal these three agricultural laws," he said.

India's Modi to repeal farm laws that sparked massive protests

The significant backflip by Modi's government comes ahead of crucial state elections.

 Indian Prime Minister Narendra Modi presents his national statement on day two of COP26 at SECC on November 1, 2021 in Glasgow, Scotland. 

Indian Prime Minister Narendra Modi. Photo: Alastair Grant/Pool/Getty Images

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