The U.S. government will reach its debt limit on Jan. 19 and initiate so-called "extraordinary measures" to avoid default, Treasury Secretary Janet Yellen told House Speaker Kevin McCarthy in a letter Friday.
Why it matters: House Republicans are interested in using debt ceiling negotiations to cut spending, but Yellen said Treasury's extraordinary measures could last until the summer.
Three major banks are bracing for an economic downturn in 2023, including an uptick in unemployment, even as they continue to benefit from strong consumer spending and higher interest rates.
Why it matters: The banking industry's convergence on the 2023 outlook comes after a period of widespread disagreement among corporate executives, economists and the public over the trajectory of the economy.
Activist hedge fund Trian Fund Management won't pursue a takeover bid for Wendy's, the company said in a securities filing Friday.
Why it matters: In May, Trian, which holds a roughly 19% stake in the company, had proposed taking over Wendy's, either alone or with third parties, as a way to bring value to shareholders.
What they're saying: "In light of the company’s current business momentum and strong liquidity position, returning additional capital to shareholders through additional stock repurchases and increased cash dividends was the appropriate path to enhance shareholder value at this time," Trian said in the filing.
What's happening: Wendy's said in a separate filing that it launched a new $500 million buyback plan and doubled its quarterly dividend to 25 cents a share.
The company also said it will reorganize its corporate structure, and announced the departures of U.S. CFO Leigh Burnside and CMO Kurt Kane. Kane’s position will be eliminated.
Shares rose over 5% on Friday afternoon
Context: Trian, which is helmed by billionaire Nelson Peltz, has a long history with the company, with Peltz serving on the board of Wendy's predecessor companies, and then on Wendy's board since 2008 when the company merged with Triarc Cos.
U.S. Customs and Border Protection officials have seized $806 million worth of imports since a forced labor law aimed at Chinese manufacturers went into effect last June, Axios has learned.
Why it matters: Intended to punishChina for its treatment of Uyghurs and other minorities across Xinjiang province, the crackdown has had the corresponding effect of crippling the U.S. solar market and freezing its supply chain.
Six months after CEO Elon Musk told investors that Tesla "does not have a demand problem" — which, to be fair, might've been true at the time — Tesla now appears to have a demand problem.
Driving the news: The company overnight "dramatically" cut prices of its Model 3 and Model Y in the U.S. by a weighted average of about $10,000, or 16%, according to Evercore ISI analysts.
There's a sharp rebound in the net number of people migrating to the United States, following back-to-back years of historically low levels that contributed to the nation's labor shortages.
Details: Tucked in the Census Bureau population estimates — released late last year — was a huge jump in net international migration. It added more than a million people to the U.S. population.
Used vehicle prices — once at the bleeding edge of the post-COVID inflationary upswing — are falling fast. And the pace of the downturn is building, according to a leading indicator.
Why it matters: While auto price movements are typically a small factor in overall inflation, outsized moves can exert a big influence on inflation data.
After nearly three years of unprecedented economic and geopolitical shocks, experts are effectively throwing up their hands and admitting they don't know what's coming next.
The latest: The probability of a recession in 2023 is between 45% and 55%, per the authors of a report from Goldman Sachs' Investment Strategy Group released Friday morning.
A new era of short-form video is sweeping the internet, forcing every kind of creator — from podcasters to photographers and publishers — to adjust their media strategies.
Why it matters: There have never been so many opportunities to create content online, but business incentives are driving all kinds of creative individuals and enterprises to chase the same viral trends.
Sequoia Capital partner Alfred Lin said on Thursday at an event in San Francisco that the firm believes it was misled by FTX when it invested in the company.
Why it matters: Sequoia, which is widely regarded as the most successful venture capital firm in Silicon Valley, has faced a lot of questions over its investment in the collapsed crypto exchange.
Tesla has made significant cuts to the prices of new electric vehicle models in the U.S., according to listings on its website.
Driving the news: Elon Musk's firm has cut the price of its bestselling Model Y and Model 3 vehicles, along with its Model X sport utility vehicles and Model S luxury sedans.
This article originally appeared in Axios Finish Line, our nightly newsletter on life, leadership and wellness.Sign up here.
Occam's razor teaches us that the simplest explanation is usually the right one.
Here's the new Axios' Razor: The simplest way of doing things is usually the right one.
Why it matters: Too many people too often lard up ideas, processes, teams or companies with needless complexity. Simplicity, by contrast, greases velocity, productivity and profitability.
/2023/01/13/1673634323359.gif?w=3840)
