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Billionaire Elon Musk runs Twitter, SpaceX, Tesla and Neuralink, among others.

Elon Musk

Dealmaking: Breaking news and top stories

Dealmaking

Latest news on Wall Street, Corporate America and financial regulation.

Business

National

Pro Rata

Axios Pro Rata

A federal Manhattan jury on Friday found Terraform Labs and co-founder Do Kwon liable for securities fraud in a civil trial brought by the U.S. Securities and Exchange Commission, Bloomberg reports.  

Why it matters: The 2022 collapse of Kwon's Terra stablecoin helped accelerate a brutal cryptocurrency downturn that obliterated billions in market value, wiped out many crypto investors — and eventually culminated in FTX's dramatic implosion.

Kwon eventually went into hiding, sparking a wild extradition saga that spanned Montenegro, South Korea and the U.S. 

The SEC's complaint against Terraform and Kwon also raises questions about the commission's views on stablecoins, and whether they're securities. 

Zooming in: The seven-person jury deliberated for less than two hours, finding that investors were misled about the stability of Terraform's UST stablecoin, which the company and Kwon was algorithmically pegged to the dollar. 

It also found that Kwon and Terraform falsely claimed that Korean payments app Chai used Terraform's blockchain tech for transactions. 

What they're saying: "We are very disappointed with the verdict, which we do not believe is supported by the evidence," a Terraform spokesperson said in a statement to Bloomberg. 

"We continue to maintain that the SEC does not have the legal authority to bring this case at all, and we are carefully weighing our options and next steps."

What's next: Kwon is also facing criminal fraud charges in the U.S. and South Korea. 

Terraform Labs and co-founder Do Kwon found liable in NY civil fraud trial

Terra's collapse wiped out many crypto investors, and obliterated billions in market value.

Photo collage of a gavel and a dollar bill. 

Cryptocurrencies

From Hawaiian cruises to curated viewing parties, wealthy travelers will be able to watch Monday's solar eclipse in the lap of luxury. 

The big picture: Cities and towns in the "path of totality" will be flooded with eclipse superfans, many of whom will be taking road trips or camping to catch a glimpse of this rare celestial event, but there are also more exclusive options — for a price.

For a little over $5,000, Smithsonian Journeys will take you on a five-day eclipse trip to the Texas Hill Country, including a tasting tour at a winery, a sunset cruise, guided nature tours and a private viewing party.

Adventure travel company TravelQuest International organized a 12-day, $7,000-plus eclipse tour across northern Mexico, as well as a multi-day tour across Texas.

Those who paid at least $1,400 for a 22-day Holland America cruise will launch from San Diego and see the eclipse off the coast of Mexico before landing in Hawaii.

Some airlines have offered special flights to chase the eclipse path across the country. Others are planning to give passengers eclipse glasses on normal flights scheduled to fly within the path of totality.

Zoom in: Texas, which appears to be this year's prime eclipse destination,  could see a massive $1.4 billion spending boom from the eclipse.

Based on spending rates during the 2017 eclipse, Vermont is expecting between $12.9 million to $51.8 million eclipse-related spending inside the state.

Officials in Oklahoma are expecting the state to pull in $7.4 million per day over the weekend and on Monday.

Whatever your vantage point, this will be the last total solar eclipse viewable from the contiguous U.S. until 2044.

Go deeper: Hundreds of schools are closing for next month's total eclipse

Hundreds of schools are closing for next month's total eclipse

Eclipse tourism for the 1%

The rare celestial event has ignited a tourism boom around the country.

Illustration of a giant coin blocking out the sun.

Total solar eclipse 2024

Latino

Axios Latino

Family members of the late Rev. Martin Luther King Jr. are commending Beyoncé for her new country album, "Cowboy Carter," which draws attention to other Black country artists. 

The big picture: From members of the Little Rock Nine to Beatles legend Paul McCartney, listeners are lauding Beyoncé's genre-bending project that pays homage to civil rights and Black Americans' legacy in country music.

Zoom in: The 27-song track list released last week includes previously released singles "Texas Hold 'Em" and "16 Carriages," which have already garnered hundreds of millions of plays on Spotify. 

"Texas Hold 'Em" also reached No. 1 on Billboard's Hot Country Songs, making Beyoncé the first Black woman to top the chart.

The album also features a cover of The Beatles' "Blackbird," a song written by Paul McCartney in 1968 about the Civil Rights Movement.

 Beyoncé invited Black country singers Tanner Adell, Brittney Spencer, Tiera Kennedy, and Reyna Roberts to join her on the cover. 

What they're saying: "I'm grateful because she brings all of this to me personally but also in our home. And it's joyous, It's positive. It's reaffirming," Martin Luther King III tells Axios.

King said his mother, Coretta Scott King, mainly listened to classical but occasionally put on some country music. His father, Dr. Martin Luther King Jr., loved all music.

"Beyoncé is bringing the conversation to the actual origins of country music in the black community," King III's wife, Arndrea Waters King, tells Axios.

She called Beyoncé "courageous" for stepping into the country scene that recently has produced artists accused of promoting gun violence and racism.

State of play: "Cowboy Carter" comes as a growing number of Black country artists have been organizing to get more recognition in an industry that gives them little airtime and attention.

They've helped create the Black Opry, an American music website and touring revue.

Mickey Guyton became the first Black woman to co-host the Academy of Country Music Awards in 2021 and her song "Black Like Me" garnered attention during the 2020 national racial justice protests.

The intrigue: On Thursday, McCartney posted on Threads that he was happy with Beyoncé's cover of "Blackbird."

"I think she does a magnificent version of it, and it reinforces the civil rights message that inspired me to write the song in the first place," he wrote.

"I think Beyoncé has done a fab version and would urge anyone who has not heard it yet to check it out."

Yes, but: Beyoncé has faced criticism from some white country music fans for using explicit lyrics in her new album.

Reality check: A number of country music artists, from Wheeler Walker Jr. to Trey Lewis, have sung songs with explicit lyrics.

The bottom line: Beyoncé is earning respect and support from other Black country artists like Julie Williams for highlighting other Black country musicians and bringing attention to Black country history. 

Go deeper: Harris hails Beyoncé: "Your music continues to inspire us all"

Harris hails Beyoncé: "Your music continues to inspire us all"

King family praises Beyoncé for "reaffirming" country album

Martin Luther King III says Beyoncé's album hits him personally and his parents listened to country music.

Martin Luther King III, the son of Dr. Martin Luther King Jr., speaks during a wreath-laying ceremony at the Martin Luther King Jr. Memorial in Washington. Beyoncé accepts the Innovator Award onstage during the 2024 iHeartRadio Music Awards in Los Angeles. Photo: Samuel Corum/Getty Images/Kevin Mazur/Getty Images for iHeartRadio

Beyoncé

P&G recalls 8.2 million bags of laundry detergent pods

The recalled products were sold at Target, Walmart, CVS, Home Depot and other retailers.

Bag of Gain Flings laundry detergent and two bags of Tide Pods

Select P&G laundry detergent is part of a new recall. Photo: Courtesy of Procter & Gamble via Business Wire

Product recalls

Retail

Top stories & latest news on the Federal Reserve, real-time data, plus the biggest shifts happening in the U.S. and global economy.

Economy

Whats Next

Axios What's Next

Tesla's stock partially recovered from a sharp drop in mid-day trading Friday after CEO Elon Musk refuted a report that the company is killing off a long-planned affordable electric car.

Why it matters: Tesla and other automakers simply need to make affordable, mass-market electric cars in order to stay competitive — especially with cheaper Chinese EVs knocking on America's doorstep.

Driving the news: Tesla is canceling its plans to build a "Model 2" sedan, Reuters reported, which many believed would start around $25,000, compared to around $40,000 for today's Model 3.

Instead, Tesla CEO Elon Musk reportedly wants to go all-in on robotaxis, which he has long seen as one of Tesla's ultimate ambitions.

The Reuters report was based on "three sources familiar with the matter and company messages" seen by the news agency.

Musk responded to the report on X by claiming Reuters was "lying."

By the numbers: Tesla's stock plunged by around 6% when the Reuters report dropped, recovered most of those losses after Musk's denial, then slid again to finish the day down 3.6%.

Context: The Reuters story was the latest in Tesla's no good, very bad week, coming after disastrous first-quarter vehicle delivery numbers.

EV sales growth overall, meanwhile, has been slowing.

Between the lines: The entire American automotive industry is freaked out about cheap Chinese EVs, as Axios' Joann Muller has reported.

They're not yet for sale in the U.S., but that appears inevitable — despite Washington's efforts to keep them at bay.

Reality check: Tesla's current driver-assist technology is far from perfect, with some users reporting erratic and sometimes dangerous behavior.

Other robotaxi companies have been finding the road harder than envisioned.

GM-owned Cruise, for example, is undergoing a painful retrenchment after one of its vehicles was involved in an incident that left a pedestrian badly wounded.

Some local officials, meanwhile, have turned skeptical of robotaxis, though others are still rolling out the welcome mat.

💬 Our thought bubble: Whether or not the Reuters story is true, imagine where Tesla would be today if it had prioritized cheaper EVs rather than the Cybertruck — which seems destined for the "ambitious failure" wing of the proverbial automotive history museum, along with the likes of the DMC DeLorean.

The bottom line: Cheap EVs are hard for American companies to make, especially with China still controlling so much of the supply chain. But they're simply table stakes these days.

Tesla stock seesaws as Musk denies report cheap EV will be scrapped

Tesla is canceling its plans to build a "Model 2" sedan, Reuters reported.

Tesla

Electric vehicles

Breaking climate science and policy coverage as extreme weather events reshape communities. Keep tabs on the race to a low carbon economy, which may be bumpy as governments, climate tech startups and major oil and gas companies race to find their niche amid the changing energy landscape.

Energy & Environment

Communicators

Axios Communicators

Longtime communication strategists Stephen Reiff and Steve Soltis have launched executive communications firm Arvo Advisory.

Why it matters: The firm's goal is to bridge the gap between business strategy and communication.

Context: Reiff worked in corporate strategy, politics and management consulting before most recently serving as head of strategy and corporate communication for MoneyGram International.

Soltis previously ran CEO and employee communication at Coca-Cola, UPS and MCI. He also teaches strategic communication at the Darden School of Business at the University of Virginia.

What they're saying: "Chief communications officers are being called upon more and more to be strategic partners in the business, not just great communicators," Soltis told Axios. "So we think connecting corporate strategy and communication strategy can be very additive to the overall success of a business."

The big picture: Arvo Advisory is one of the many boutique challenger firms to launch in recent months amid a shifting agency landscape.

Zoom in: Arvo's differentiator is its connection to communicators with MBAs, who have come up through the business strategy ranks, says Reiff.

Arvo Advisory has assembled a bench of subject matter experts — like Coca-Cola alum Doug Busk, investment banking and McDonald's alum Danielle Cupps, former Home Depot chief communications officer Steve Holmes, and Corteva alum Dana Bolden  — who will serve as advisors in support of specific client work.

The bottom line: "Disney CEO Bob Iger has said that your strategy is only good as your ability to articulate it. That perfectly summarizes what we're trying to do," says Reiff.

Go deeper: "Challenger" firms rising: Top PR talent defect from big agencies

"Challenger" firms rising: Top PR talent defect from big agencies

Industry vets launch strategic communications firm Arvo Advisory

The firm's goal is to bridge the gap between business strategy and communication.

Image of the Arvo logo, featuring a mountain graphic

Communications

McDonald's has agreed to buy all of its Israel franchises from local operator Alonyal Ltd., which includes 225 stores with more than 5,000 employees.

Why it matters: Alonyal last October sparked global boycotts against McDonald's, particularly in some Muslim-majority countries, after saying it would donate free meals to the Israeli military.

It also gave out meals to Israeli police, hospital workers, and residents near Gaza.

Details: McDonald's said it would retain all of Alonyal's workers "on equivalent terms," but didn't disclose financial terms for a deal that's slated to close within the next few months.

The bottom line: The fast food giant reported only 0.7% growth during Q4 2023 in the unit that includes Middle East and Southeast Asia franchises, versus 5.5% estimates. 

Group CEO Chris Kempczinski had previously said that the Israel-Hamas war, and "associated misinformation" about the Chicago-based company's position, had resulted in a "meaningful business impact."

McDonald's buying back Israel restaurants after protests

The deal includes 225 locations and more than 5,000 employees.

Protesters outside a McDonald's in Turkey

Protesters last November outside a McDonald's in Turkey. Photo: Onur Dogman/SOPA Images/LightRocket via Getty Image.

McDonalds

Conflicts, policies and powers are intersecting and shaping the world. Breaking news and analysis of national security, foreign policy and global crises.

World

The rock band KISS has become the latest musical act to sell its catalog to private equity, fetching more than $300 million from Sweden's Pophouse.

Why it matters: The deal structure is unusual, and could spark the creation of a new private investment asset class.

Zoom in: Pophouse not only is buying the rock band's music, but also its name, image, and likeness.

"The NIL inclusion was critical to Pophouse's vision," explains Spencer Klein, a Morrison Foerster attorney who represented KISS on the transaction. "The catalog has tremendous value on its own, but Pophouse believes it can continue the legend of KISS by having ownership and use of the iconic KISS images and other assets that their fans love.

Catch up quick: Influence Media Partners, a BlackRock-backed investment firm, included NIL rights when it struck a catalog deal with Enrique Iglesias late last year, and has since done five more.

Lylette Pizarro, IMP's founder and co-managing partner, argues that NIL can drive significant alpha to royalties deals, which otherwise have fairly predictable return profiles.

The big picture: Don't be surprised to not only see NIL get incorporated into future music deals, but also as standalone agreements with other sorts of entertainers and cultural icons. It's even possible to see entire funds raised for this purpose.

"What's becoming really interesting is that we're getting organic inbounds  from outside of music, mostly from sports," Pizarro says.

The bottom line: KISS is arguably more popular for its visual style than for its music, and was a proud sellout before it became cool. Others will follow its lead.

KISS deal could spark an NIL boom for other entertainers

KISS was a proud sellout before it became cool. Others will follow its lead.

Photo illustration of Gene Simmons in white makeup with black painted dollar signs

Photo illustration: Sarah Grillo/Axios. Photo: Jeff Kravitz/FilmMagic, Inc via Getty Images

Music

Markets

Axios Markets

South America's Amazon region, while extremely poor, sits on hugely valuable natural resources. The resulting tensions between environmentalists and wealth seekers are exploding once again.

Driving the news: The president of Guyana, Mohamed Irfaan Ali, went viral this week for a video in which he lectured a BBC journalist on hypocrisy around climate change.

The developing world, he says, has no right to lecture him about the carbon emissions from offshore oil drilling, when those countries had been emitting vast amounts of carbon for centuries during which Guyana itself was consistently carbon-negative.

The big picture: Whether or not Guyana drills for oil is very unlikely to meaningfully change the total global demand for oil or the total amount of carbon produced by burning oil.

It will increase carbon emissions attributable to Guyana — but Guyana also has a desperate economic need to be able to provide a reliable electricity supply to its citizens and companies.

Now it's going to be able to do that by piping in natural gas from the oilfields and then using that gas to power the national grid.

Zoom out: The Amazon provides Guyana not only with a certain amount of moral high ground when it comes to climate change but also with cash; in 2009, for instance, Norway paid Guyana some $250 million to continue to avoid deforestation.

That number pales in comparison, however, to the amount of money Guyana stands to make from offshore oil drilling. The country has already received $3.5 billion from ExxonMobil and stands to make much more in the future.

Zoom in: Across the border with Brazil, environmentalists are fighting — with guns! — criminal garimpeiros, miners drilling for gold and cassiterite, who are threatening the livelihood of the indigenous Yanomami tribe.

In a report for the New Yorker about a special forces unit of armed environmentalists, reporter Jon Lee Anderson unpacks a lot of the complex politics involved in the region.

One of his interviewees was a Brazilian judge, Luís Roberto Barroso, who tried to intervene to protect the Yanomami.

What they're saying: "There is an inescapable reality," Barroso told Anderson, "which is that you have people living in poverty sitting on top of vast wealth."

When that happens, the wealth almost always ends up getting realized, one way or another. The indigenous tribes, and the Amazon itself, invariably end up much worse off as a result.

Go deeper: In the NYT, Gaiutra Bahadur asks, in another deeply reported story, whether Guyana's oil is a blessing or a curse.

Climate hypocrisy takes center stage in the Amazon

Guyana's president went viral for lecturing a journalist about the complexities of drilling for oil.

Illustration of an oil barrel rolling through a rainforest and leaving a dirt path behind it

Guyana

Macro

Axios Macro

GUANGZHOU, China — Treasury Secretary Janet Yellen told U.S. executives in southern China on Friday that it's neither "practical nor desirable" to cut off economic relations with the country — even as the Biden administration is moving to contain huge business threats from China.

Why it matters: Yellen is aiming to strike a balance between calling out China for "unfair practices" she said were hurting American firms — while highlighting the importance of maintaining U.S.-China economic ties.

What they're saying: "A full economic separation is neither practical nor desirable," Yellen said. "We reject the idea that we should decouple our economy from China."

Yellen said she was addressing her concerns about the economic and business backdrop in China in the "spirit of continuing to move the U.S.-China relationship in a constructive direction." 

Zoom in: Yellen spoke at an event hosted by the American Chamber of Commerce, a China-based group that represents U.S. firms doing business in the region. 

Before an audience of business executives in Guangzhou — a trade hub known for its large presence of U.S. firms — Yellen said the Biden administration has watched China's government "pursue unfair practices" against companies operating in China.

Yellen said that includes imposing high barriers to access for these companies, among other "coercive" actions.

"I strongly believe that this doesn't only hurt these American firms: ending these unfair practices would benefit China by improving the business climate here," Yellen said, adding that she plans to bring up these issues in meetings with Chinese counterparts, including the country's top economic policymaker, this week. 

The big picture: China's economy is on rocky footing and foreign investment is slumping. That's one reason why leader Xi Jinping met with U.S. chief executives last month in an effort to gin up support for a presence in China. 

The Biden administration is wary of other moves the Chinese government is taking to shore up its economy, including offering massive subsidies to its factory sector. The problem, officials say, is that China doesn't have adequate demand to absorb the goods being produced. 

In her remarks Friday, Yellen doubled down on the warning that China's state aid is causing a production glut of green energy products, like solar panels and electric vehicles.    

"Direct and indirect government support is currently leading to production capacity that significantly exceeds China's domestic demand, as well as what the global market can bear," Yellen said. 

"This can undercut the business of American firms and workers, as well as of firms around the world, including in India and Mexico."

Earlier this week, Yellen said she "wouldn't rule out" measures, including possibly trade barriers, to protect U.S. companies that might be at risk from China's efforts to unload its slew of products on global markets. 

The intrigue: Yellen, a trained economist who previously served as Fed chair, said China would help its domestic economy by changing its subsidies approach.

Yellen: Cutting off economic relations with China isn't "practical"

During her latest trip to China, the Treasury secretary is trying to strike a delicate balance.

Business

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