Axios

Retail continued its turn for the worse Tuesday as fashion chain Abercrombie & Fitch reported an unexpected loss and lowered its sales outlook.

• The report follows disappointing news from benchmark retailers Walmart and Target, whose stocks dropped sharply last week amid higher costs and signs that consumers are worried about the economy.

The world might as well be spinning east to west this year for social media companies.

Why it matters: Last year’s record gains in user engagement and advertising revenue are being erased by changing consumer habits and advertiser worries ranging from domestic and international economic pressures to geopolitical risks.

Renewable energy doesn't just need buyers, it needs buyers who want to buy at the right time.

Driving the news: Bitcoin and other proof-of-work blockchains are exactly those kinds of buyers and can help drive demand and, by extension, more renewable capacity, industry members argued in D.C. Tuesday.

K-pop broke new ground this week as the all-girl quartet Blackpink landed on the cover of Rolling Stone.

Why it matters: They're the first all-girl K-pop band and first Asian all-girl group to be featured on the 55-year-old magazine's cover.

Details: The June issue features a profile of the members Lisa, Jennie, Rosé, and Jisoo.

• They've set numerous records, including for the most subscribed artist on YouTube (passing Justin Bieber). And they're the first K-pop girl group to perform at Coachella.

The Treasury Department said Tuesday in a note that it will not extend a waiver that allows Russia to pay its international debt holders through American banks, making the first Russian international default since the Bolshevik Revolution all but certain, AP reports.

Why it matters: The Kremlin has so far avoided a default despite the overwhelming sanctions imposed on Russia over its unprovoked invasion of Ukraine. That's likely to change when banks are unable to process dollar-denominated bonds payments from Russia after Wednesday.

Venture capital giant New Enterprise Associates has raised more than $5.1 billion for a pair of new funds, according to federal securities filings.

The big picture: Venture firms are flush with capital, even though the tech market reset has slowed startup investment activity.

The Federal Trade Commission is launching a probe into reports that baby formula sellers have engaged in deceptive practices, price gouging or other illegal tactics amid widespread shortages.

Why it matters: Parents have been scrambling to find baby formula after the collision of supply chain issues, a massive recall and the temporary shut down of a large Abbott Nutrition factory in Michigan.

Walmart is pulling pints of its store-brand Great Value ice cream labeled as “Celebration Edition Juneteenth” from store shelves after backlash on social media.

Why it matters: Amid discussions of racial injustice, Juneteenth became the 11th federal holiday last June and some major retailers and businesses started offering the day as a paid holiday. The holiday commemorates the formal end of slavery in the U.S.

A growing number of musicians, authors and actors say their management is pushing them to find ways to go viral on TikTok, even if it requires faking a "viral moment."

Why it matters: Viral posts can be very effective for marketing, but for some artists, manufacturing those moments is a slippery slope.

It’s graduation season and Krispy Kreme is celebrating high school and college seniors who wear class of 2022 swag Wednesday with free doughnuts.

Driving the news: The chain, which ran one of the largest COVID vaccine incentive programs last year and gave away millions of free pastries, will hold its annual Senior Day on Wednesday at participating locations. Expect long lines as this is a rare freebie in these inflationary times.

Central-bank issued digital currency experiments outside of the U.S. are making small steps forward amid heightened scrutiny of private-sector stablecoins.

Why it matters: Governments are keen on the potential for faster, more efficient payment options between countries with digital currencies, but want to preserve monetary and financial stability.

On Saturday, Axios brand studio editor Alexis Kleinman received a troubling pair of back-to-back emails.

• The first was from Zola, a wedding planning and registry website that's raised nearly $200 million in VC funding from firms like Lightspeed Venture Partners, Valor Equity Partners and Thrive Capital. It said that her account's email address and password had been changed.
• The second was from her credit card issuer, saying some new charges had exceeded her limit.

This was part of a hack that impacted nearly 3,000 Zola accounts.

Advent International raised $25 billion for its 10th flagship private equity fund.

Why it matters: This is the largest fund in Advent's 38-year history, and its timing gives the Boston-based firm tons of runway without having to worry about the denominator effect.

America's free speech frustration has pivoted from tech companies to media publishers, according to this year's Axios Harris Poll 100.

Why it matters: It's a sign of growing hostility toward publishers, with little recourse for people who think they don't do enough to guard against bias or misinformation.

Professional investors think we're headed into one of the most risky environments for corporate credit outside the beginning of the pandemic.

Driving the news: The CDX North America High Yield Index, used by institutional investors like hedge funds, has moved down about 10 points since late December. The index represents a basket of default insurance contracts on bonds (known as credit default swaps).

It's not just the cost of borrowing to buy a home that's getting more expensive. Pricier credit card debt is also putting a squeeze on consumers who are relying more on plastic amid the worst inflation shock in decades.

Why it matters: For those carrying a balance, that debt is expected to get even costlier to pay off, as the Federal Reserve continues an aggressive interest rate hike campaign to tamp down red-hot price growth.

Fox Corporation CEO Lachlan Murdoch isn't afraid to clap back at critics who say Fox News' programming has become too divisive.

• "I think when you're in the news business, and you're number one ... you get a lot of heat and it just comes with the territory," he told Axios, referring to the company's longtime cable news ratings lead.

Fox Corp. is in the early stages of expanding into lifestyle verticals across categories like outdoors, home and books, CEO Lachlan Murdoch told Axios in an interview.

Why it matters: The hope is that new lifestyle verticals, in addition to streaming, sports betting and web3 projects, will "give us our growth going forward," Murdoch said.

Walmart customers in six states will soon be able to have their orders delivered by drone in less than 30 minutes.

Why it matters: This will be the first large-scale drone delivery operation in the United States. So far, drone deliveries have been available only in a few small towns, with customers selecting from a short list of items.

An overwhelming majority of Americans (77%) whose job can be done remotely say it’s important that their employer allow them to work remotely when they want to, according to new rankings from the annual Axios Harris 100 poll.

Why it matters: As the country transitions from lockdowns to living with COVID-19, Americans want to retain at least some of the flexibility they've had during the pandemic.

Even in a remarkably tight labor market, Americans with disabilities are struggling to land jobs.

Why it matters: These are folks who are willing and able to work, and getting them into jobs would help alleviate the labor shortage.

Companies that once seemed immune from partisan backlash are seeing their reputations plunge in response to political drama, according to new rankings from the annual Axios/Harris Poll 100.

Why it matters: The findings suggest that companies that are slow to respond to political crises, or do it inconsistently, suffer the most in terms of consumer reception and trust.

Candle Media, the new media rollup company backed by Blackstone and led by former Disney executives Tom Staggs and Kevin Mayer, is acquiring Exile Content Studio, an independent Spanish-language production company.

Why it matters: The deal gives Candle access to premium Spanish content. Exile is one of the fastest-growing Spanish language production studios in the world.

This survey is the result of a partnership between Axios and Harris Poll to gauge the reputation of the most visible brands in America, based on 20 years of Harris Poll research. From Trader Joe's to Disney, here's how this year's class stacks up.

Ukrainian President Volodymyr Zelensky signed a sanctions law Monday enabling officials in the country to seize and sell Russian assets related to Russia's military invasion in order to support Ukraine's war efforts.

Driving the news: The law is designed to rapidly resolve cases and targets Russian oligarchs, covering offenses including donating to the Kremlin and setting up puppet governments or elections in Russian-controlled parts of Ukraine, per an NPR translation. It'll remain in effect while Ukraine remains under martial law.

Go deeper... Watch: Volodymyr Zelensky interviewed by Jonathan Swan

Amazon’s package delivery business is closing in on UPS.

Why it matters: Amazon’s shipping division, Amazon Logistics, already surpassed FedEx in terms of market share by volume in 2020.

SpaceX president and COO Gwynne Shotwell defended Elon Musk after Business Insider reported last week that SpaceX paid $250,000 to settle sexual misconduct allegations against the billionaire, CNBC reports.

Driving the news: Insider reported a SpaceX flight attendant had alleged sexual misconduct against Musk, including that he exposed his erect penis to her and touched her inappropriately while aboard a private flight in 2016. SpaceX later settled with her for $250,000 in a deal that also barred her from discussing the payment or disclosing any information about Musk, according to Insider.