From BBQ joints to "Texas-style" steakhouses and bars draped in Lone Star memorabilia, the Texas brand is thriving in Japan.

Why it matters: It's not just cultural crossover. Economic ties between the two powerhouses are stronger than ever, with billions of dollars in trade and a surge in direct travel connecting the two.

Driving the news: Air arrivals from the U.S. to Japan surpassed 900,000 in the first five months of 2024 — up 35% from pre-pandemic levels.

• A weaker yen is giving Texans more spending power abroad, fueling interest in Japanese vacations and investments.

By the numbers: We found roundtrip airfare from Austin to Tokyo in mid-January as cheap as $875 roundtrip on ANA Airlines.

• Including a layover, air travel time is nearly 17 hours each way.

Zoom in: Japan is Texas' fifth-largest trade partner, with $31.2 billion in trade last year.

• In July, Gov. Greg Abbott signed a landmark agreement with Aichi Prefecture to boost cooperation in sectors like life sciences, energy and biotechnology.

The intrigue: While Texans flock to Japan, Japan is embracing Texas.

• Tokyo's Little Texas bar is a shrine to Texan culture, with walls covered in cowboy hats, Buc-ee's merch and memorabilia.
• Texans visiting Japan can also dine on Texas-style barbecue, tacos and steaks inspired by Texan cuisine.
• Texas pop culture influence extends into anime, fashion, sports and music.

What to watch: The economic partnership could face uncertainty as global trade shifts. Policies under the Trump administration could influence trade with Japan, especially as companies like Nippon Steel navigate U.S. regulatory hurdles.

The University of Texas' loss in the SEC championship a couple of weeks ago was the best outcome for the Austin economy.

Driving the news: UT hosts a home College Football Playoff quarterfinal game Saturday against Clemson.

• If the fifth-seeded Longhorns had won the SEC championship game, they would have earned a bye — and played their next game in a semifinal in a neutral site, never getting the chance to host a playoff game.

Why it matters: Home UT football games pump tens of millions of dollars into the local economy.

What they're saying: "The bump in activity is a bonus for local businesses this holiday season," Austin Chamber of Commerce CEO Jeremy Martin tells Axios.

💰 The bottom line: What might have been a sleepy pre-Christmas weekend in Austin will instead see thousands of fans descend on the city, picking up hotel rooms, renting cars, buying souvenirs on South Congress and eating out (and tipping servers) at restaurants.

👀 How to watch: UT faces the 12th-seeded Clemson Tigers at 3pm at DKR-Memorial Stadium.

• Tickets were available for as little as $82 apiece yesterday.
• The game airs nationally on TNT, with Texas a 12-point favorite.

What's next: The winner will play fourth-seeded Arizona State in the Chick-fil-A Peach Bowl in Atlanta on New Year's Day.

Sen. Rand Paul (R-Ky.) is floating local car guy Elon Musk as speaker of the House after the powerful, billionaire tech businessman helped torpedo a bipartisan agreement on a short-term spending bill.

Why it matters: Paul is the first GOP lawmaker to explicitly suggest Musk should be speaker, and his comments come as Speaker Mike Johnson's (R-La.) bid to keep his job is under serious threat.

• Musk has already emerged as one of the most powerful voices in politics, and has become one of President-elect Trump's closest confidants.

What he's saying: "Nothing would disrupt the swamp more than electing Elon Musk," Paul posted on X yesterday.

• "[T]hink about it . . . nothing's impossible. (not to mention the joy at seeing the collective establishment, aka 'uniparty,' lose their ever-lovin' minds)"

Between the lines: The Constitution does not specify that the speaker of the House has to be a member of the chamber — though they always have been.

• Non-representative names have been floated over the years during speaker elections.
• Trump, meanwhile, told Fox News Digital yesterday that Johnson will "easily remain speaker" if he "acts decisively and tough" and eliminates "all of the traps being set by Democrats" in the spending package.

💰 Health data warehouse SuperTruth bought Austin-based home diagnostics company Imaware, creating a combined company valued at $100 million, CEO Bobby Hill tells Axios exclusively. (Axios Pro 🔒)

🏛️ U.S. Rep. Michael McCaul, an Austin Republican and the House Foreign Affairs Committee chair, called Tulsi Gabbard a "baffling" pick to lead the nation's intelligence community. (Texas Tribune)

🎵 Austin officials are reworking a grant program that provides funds for struggling musicians after artists criticized the application and selection process. (KUT)

🚙 The co-CEO of Waymo shared video on social media of one of the company's driverless cars avoiding a person who fell off a scooter. (Fox 7)

Time to test your smarts in this week's news quiz.

You know the drill: Answer these three questions correctly for a chance to win a special shoutout in our Monday newsletter.

1. A sculpture from which museum was under a ceiling that collapsed at UT?
2. Which Hill Country town claims that NASA can see its holiday lights from space?
3. Which generation is most likely to wait in line for over 30 minutes for food?

📬 Just reply to this email with your answers.