Axios

Ramesh "Sunny" Balwani, the former president and chief operating officer of failed blood-testing company Theranos, on Wednesday was sentenced to 12 years and nine months in prison, plus three years of probation.

Driving the news: Balwani's sentencing comes less than three weeks after his former boss and girlfriend, Elizabeth Holmes, received a prison sentence of 11 years and three months that's scheduled to begin in April.

Americans' real incomes are stagnating or declining thanks to high inflation, yet consumers are still spending at a rapid pace — two things that, taken together, are a bit of an economic puzzle.

What’s going on: One explanation dates back to pandemic-era fiscal policy, the effects of which are still rippling through the economy.

Sam Bankman-Fried was a prolific investor in the two years prior to FTX's collapse, pumping billions of dollars into startups and venture capital funds.

Why it matters: Many of those recipients are wondering what happens next, and if the money could be clawed back.

Drivers are facing car insurance premium hikes in 2023 as more expensive vehicles and higher rates of crashes translate into more expensive coverage.

Why it matters: Drivers can't avoid insurance costs, so increases tend to hurt low-income and fixed-income people more than others.

Debt pains are growing in lower-income nations, according to the World Bank’s annual International Debt Report, out Tuesday.

Why it matters: Fiscal crises can lead to both political instability and rising poverty.

Chip giant Taiwan Semiconductor Manufacturing Co.'s decision to triple its investment in Arizona is part of a national rush to re-shore key inputs for the American economy.

Driving the news: President Biden traveled to TSMC's Arizona plant on Tuesday to bask in the glow of the announcement. The company — which by some measures manufactures over half the world's chips — said the three-fold increase would bring its investment to around $40 billion.

What goes down must go up. That's the message being sent by big global investors managing trillions of dollars in savings and retirement funds.

Why it matters: Most investors think we're either in a recession already or that one is inevitable — but that doesn't mean they're pessimistic when it comes to the markets.

A competition bill aimed at funneling funds from online platforms to the news industry was removed from a must-pass defense bill Tuesday at the last minute by congressional leaders.

Why it matters: The bill, known as the Journalism Competition and Preservation Act (JCPA), would have forced Big Tech firms like Google and Meta to pay hundreds of local news outlets for their content.

A growing number of GOP-led states are barring state employees and contractors from using TikTok on government-issued devices as the FBI warns of possible threats to national security posed by the Chinese-owned social media platform.

Driving the news: Texas became the latest to do so on Wednesday, joining South Dakota, South Carolina and Maryland, all of which banned the app on government devices in the past week. Wisconsin Republicans are urging their Democratic governor to do the same.

Five women, including two former actresses on "The Cosby Show," have filed a lawsuit against comedian and actor Bill Cosby, alleging sexual assault, battery and false imprisonment that went back as far as 1969.

The big picture: A new law in New York enables adult survivors to sue their abusers within a one-year window even if the statute of limitations on their claims has expired. Over 50 women have publicly alleged that Cosby sexually abused them, often after dosing them with drugs.

Sweeping layoffs in tech are leaving thousands of people holding H-1B work visas stranded and scared.

Why it matters: In the event of a layoff, H-1B holders have 60 days to find new companies to sponsor their visas. If they can't, they can try switching to a different kind of work visa or look into non-work visas, such as a self-sponsored green card.

How does a retail brokerage stop its customers from leaving when the markets turn south? By giving them a retirement product designed to last for decades.

Driving the news: That's the latest move from Robinhood, which launched a new retirement account this morning.

Sports merchandising giant Fanatics has raised $700 million in a new round of funding that now values the company at $31 billion, Axios has confirmed. The investment was first reported by the Wall Street Journal.

Why it matters: Fanatics will use the funds to invest in M&A at a time when dealmaking has cooled amid growing recession fears.

A coalition of business owners in California announced yesterday they had enough signatures for a ballot measure to overturn a historic law that will give fast-food workers more power.

Why it matters: The law gives California fast-food workers more say on wages, hours and working conditions.

Jennifer Choi yesterday was named permanent CEO of the Institutional Limited Partners Association (ILPA), a trade group representing around 600 institutions that manage over $2 trillion in assets.

Why it matters: Choi, who had been acting CEO since June, now leads the only organization dedicated to foundational investors in alternative assets like venture capital and private equity. The endowments and pension funds and charitable foundations that pay their 2-and-20 in exchange for outsized returns (or so the theory goes).

• Axios asked Choi about ILPA's top priorities for the coming year:

NRG Energy on Tuesday said it's agreed to buy Vivint Smart Home, a Provo, Utah-based home security and automation company, for $2.8 billion.

Why it matters: This is a big boomerang for the SPAC market, which on Monday was stung by a pair of large deal terminations (Circle and Footprint).

Ledger had its two highest demand days ever immediately following the FTX bankruptcy (the Sunday and Monday), and then November became its best month of sales.

Why it matters: It's a good time to be a crypto hardware wallet maker. One clear lesson for digital-asset owners after FTX crashed is this: third-party crypto storage is risky. And now Ledger is pouncing with a brand new hardware wallet for do-it-yourselfers.

Since Elon Musk took over Twitter, engagement with his tweets has increased significantly, growing much faster than his actual follower count, according to an analysis by Axios.

Why it matters: For Musk, owning Twitter, and using the app to present and defend his plans for the company, has energized his personal platform.

Global GoFundMe campaigns for gas, grocery and baby formula needs raised more than $80 million this year, the platform announced Tuesday.

Why it matters: Raging inflation dented savings and wages, prompting families and individuals to look for aid from strangers online.

Growth in global ad spending is going to be slower next year than originally anticipated, according to two new forecasts, a troubling sign for media and tech firms that rely on advertising to fuel their businesses.

Why it matters: Much of the slowdown is driven by economic uncertainty, rather than true economic indicators that would cause an advertising recession.

There's a growing split between two major segments of the economy: manufacturing and services.

What's happening: Economic activity in the service sector grew in November, slightly above analysts' expectations, per the Institute for Supply Management's latest survey of activity at these businesses — which includes companies in retail, health care and transportation.

The Russian oil price cap that went into effect Monday could, over time, be an important Western counterweight to OPEC in determining world oil prices.

Driving the news: After months of wrangling, the mechanism to try to cap prices of Russian crude oil shipped by sea went into effect on Monday.

From frozen sandwiches that don't need to be nuked to pies and waffles that go from freezer to plate, food manufacturers are racing to introduce products in the nascent "thaw and eat" category.

Why it matters: Americans have gotten used to eating more meals at home during the pandemic. Now that schools and offices are beckoning people back, they're seeking easier-than-ever options.

Lawmakers have added a measure to Congress' must-pass defense funding bill that would force Big Tech firms like Google and Meta to pay hundreds of local news outlets for their content, sources tell Axios.

Why it matters: Barring last-minute Capitol Hill maneuvering, the news-funding measure is now on track to pass after failing for years to gather enough support to become law.

The New York Times on Tuesday unveiled a unique version of its weekday print paper featuring more than two dozen ads from just one advertiser — General Electric.

Why it matters: It’s the first time in the paper’s 171-year history that any advertiser has gotten to own all of The Times’ print real estate exclusively — in addition to most of its premier digital advertising real estate.

Elon Musk is the latest patron for an alternative-media ecosystem — right-leaning but not conventionally Republican — that has emerged in the last two years.

The big picture: Feeding on resentment against mainstream media, new media players have established a power base via Substack newsletters, podcasts and other independent channels.