Axios

Shareholders of Hawaiian Airlines got a very happy surprise this week when Alaska Airlines agreed to buy their company at $18 a share, an eye-popping 270% premium over where the shares closed the prior Friday.

Why it matters: Because most acquisitions of public companies take place at a premium of roughly 30% to where the stock had been trading, exceptions to that rule are always intriguing. In this instance, there's a case to be made that the price being paid is not excessive.

When British American Tobacco acquired Reynolds American in 2017, it was — by far — the most valuable brand acquisition of all time, involving brands (Newport, Camel, American Spirit, and more) worth $93.6 billion.

Why it matters: Today, the market capitalization of the entire combined company is just $65 billion.

"Books are best enjoyed when read out loud," children's book author (and former FDIC chair) Sheila Bair tells Axios.

Why it matters: Bair is an adviser to the Foolproof Foundation, which encourages a skeptical attitude toward financial-services messaging in its school curricula.

High mortgage rates have all but frozen the U.S. housing market.

Why it matters: The "lock-in effect" is real. As one real estate agent put it, 2023 was "the year your first home accidentally became your forever home."

As American office workers go back to working in person, pet adoptions are declining — and that's taking a toll on pet product sellers.

Why it matters: The pandemic brought about a boom in pet adoptions, but the peak is past.

The "vibe-cession" is on hold: American consumers felt much better about the economy in early December, Axios' Courtenay Brown writes.

• So says the University of Michigan's widely followed consumer sentiment index, which jumped a whopping 8 points from the prior month.
• It was the first increase in four months, with broad improvement in sentiment across all age groups and political affiliations.

Why it matters: A key question has been why Americans felt so down about the economy when key indicators — cooling inflation, boom-like economic growth and healthy jobs growth — have been so strong.

Teeth aligner company SmileDirectClub is shutting down.

Why it matters: SmileDirectClub filed for Chapter 11 bankruptcy protection in September, having failed to profitably corner the promising but highly competitive world of removable, clear-plastic teeth aligners.

November's jobs report shows the American labor market is still flourishing with strong employment and wage growth — alongside workers flooding into the labor force.

Why it matters: The penultimate payrolls release of 2023 shows that the economy skirted recession fears, underpinned by a strong labor market.

Alaska Airlines' proposed merger with Hawaiian Airlines would mark the latest in a decades-long run of industry consolidation that's left travelers with just five major carriers to choose from, per an Axios analysis of Airlines for America data.

Driving the news: Today's five biggest airlines — Delta Air Lines, American Airlines, United Airlines, Alaska Airlines and Southwest Airlines — have gobbled up 42 others since 1960.

The U.S. labor market added 199,000 jobs in November, while the unemployment rate fell to 3.7% from 3.9%, the Labor Department said on Friday.

Why it matters: The jobs market surprised to the upside, with more jobs than economists anticipated, easing concerns that the labor market is rapidly cooling.

U.S. tariffs on women's clothing are higher than on men's clothing, finds a new analysis from a former U.S. trade official.

Why it matters: It's an illustration of how gender discrimination can get embedded into policy — in this case in the taxes the federal government tacks on to imported goods.

Global markets think the war against inflation is over. And the Fed won.

Why it matters: Reading the tea leaves from bond, stock and currency markets sheds light on how investors believe the economy will develop next year.