Good morning. On the Friday before Christmas, it’s finally the day to pull out the ultimate office humor. The Holy Grail of water cooler bits. The funniest thing anyone in business casual attire is allowed to say ahead of clocking out for the holiday break: “See you next year .”
—Neal Freyman, Cassandra Cassidy, Dave Lozo, Matty Merritt
Markets: Stocks held mostly steady after a Fed-induced shellacking on Wednesday, while the Dow finally snapped its historic 10-day skid by the tightest of margins. Soho House, which operates private clubs in your city’s most expensive neighborhood, jumped after receiving a $1.7 billion takeover bid. It’s been more like So-So House this year (sorry), with shares down 30% before their spike yesterday.
The US federal government will partially shut down at 12:01am ET on Saturday if a spending bill is not passed by Congress and signed by President Biden today. But what was expected to be a drama-less affair has been thrown into chaos from new demands by President-elect Trump and fierce criticism from Tesla CEO Elon Musk, who has flexed considerable influence over the Republican Party as an unelected individual.
How we got here: On Tuesday, GOP House Speaker Mike Johnson unveiled a bipartisan spending plan that would fund the government through March 14—but it included a number of expensive side quests (measures that have nothing to do with keeping the government running) that outraged right-wing Republicans…and Musk.
On Wednesday, Musk railed against the bill in more than 150 posts on X throughout the day, boosting opposition to it with his social media megaphone.
Trump effectively tanked the agreement when he said he was “totally against” it Wednesday evening.
Then on Thursday, a curveball: Trump said he would only endorse a spending bill that raises or eliminates the US’ debt ceiling, which puts a cap on the amount the government can borrow to pay its creditors. Lifting the debt ceiling, or abolishing it entirely, is not what the GOP typically supports.
With the first bill torpedoed, Republicans released a much slimmer second one yesterday that was championed by Trump and Musk. It would avert a shutdown, suspend the debt ceiling for two years, and include $110 billion in disaster aid. But that failed to pass the House after opposition from some from Republicans (over the debt ceiling measure) and nearly all Democrats, who accused the GOP of cowering to Musk.
What would happen if the government shuts down? Among the impacts: Federal employees would be furloughed, but those who are deemed essential (TSA, air traffic controllers, etc.) would stay on the job without pay until a bill is passed to fund the government.—NF
Nike’s turnaround shows signs of working. The slumping sportswear giant’s stock jumped as much as 12% after reporting better-than-expected earnings last quarter, the first under the leadership of new CEO Elliott Hill. He didn’t have a high bar to clear—Nike sales fell 8% from a year earlier, and that was enough to impress investors. But the hard work is just beginning: Hill has plans to shake up Nike’s stale product lineup and work more closely with wholesalers who felt stiffed by previous management. In an early win for Hill, the NFL re-upped its deal with Nike to provide its uniforms through 2038.—NF
Luigi Mangione appeared in Manhattan federal court. The suspected killer of UnitedHealthcare CEO Brian Thompson was charged with murder, a firearm offense, and two counts of stalking. In court, Mangione acknowledged the federal complaints against him, which open up the possibility for prosecutors to pursue the death penalty. The 26-year-old waived his extradition to New York and arrived in the city from Pennsylvania via helicopter, escorted by a crowd of police officers and NYC Mayor Eric Adams. Mangione faces state charges in NY and PA in addition to the federal charges and will remain in New York custody as his attorneys said they are not currently seeking bail.—CC
The FAA bans drones over parts of NJ. The agency placed temporary restrictions on drone flights over “critical New Jersey infrastructure” across a large stretch of the state, including the cities of Elizabeth, Camden, and Bayonne. It’s a response to reports of unexplained drone sightings from residents over the past month. Meanwhile, officials are telling people in New Jersey to knock it off with the laser pointers at planes. Reported laser strikes on planes are up 269% in NJ this month over the same period last year, the agency said.—NF
Groundbreaking moments in the smartphone space have been lacking for years. But a new smartphone company, boasting an astonishing 32,481% revenue growth rate over three years, is stepping up to deliver.
Turning smartphones from an expense into an income stream, Mode has already helped users earn and save an eye-popping $325m+, driving $60m+ in revenue and a massive 45m+ consumer base. This ranked them last year’s #1 fastest-growing software company in North America, according to Deloitte.
One of America’s largest unions just collided with America’s favorite online store. The Teamsters launched strikes at seven Amazon warehouses yesterday, with roughly 9,000 workers walking off the job during the peak holiday shipping season.
Teamsters say the workers are joining the picket line after Amazon ignored a Dec. 15 deadline the union set for contract negotiations. “If your package is delayed during the holidays, you can blame Amazon’s insatiable greed,” Teamsters President Sean O’Brien said in a statement. Amazon responded that the Teamsters, who represent less than 1% of Amazon’s US workforce, won’t disrupt operations by striking.
At the heart of the strike: Amazon has not recognized this union and says it illegally coerced workers to join.
Amazon claims that the delivery drivers are not employees because they’re contracted by a third-party business. “What you see here are almost entirely outsiders—not Amazon employees or partners,” an Amazon spokesperson said.
The drivers are contracted by a third-party, but argue that since Amazon controls their working conditions, it’s obligated to bargain with them.
Looking ahead…unions may find an unexpected ally in Trump 2.0. The president-elect has a good relationship with the Teamsters boss, and his choice for labor secretary has a pro-union record. Last week, he supported the Longshoremen in their fight against port automation.—CC
If a three falls in the forest, and no one is around to watch it, does it still make a sound?
NBA ratings have flopped this season. Through Saturday, viewership was down 19% from this time last year across ABC, ESPN, and TNT, and down 25% with NBA TV included, per Sports Media Watch. Many critics blame the league’s infatuation with 3-pointers. Teams are hoisting up a record 37.5 attempts per game this season, about 15 more than the average a decade ago.
That’s the result of teams embracing analytics, which has shown how chucking up threes is a more efficient strategy than attempting shots inside the arc. Some NBA legends think that’s created a homogenized product: “We’re looking at the same thing,” Hall-of-Famer Shaquille O’Neal said about the decline in viewership.
NBA Commissioner Adam Silver brushed off the downturn, pointing to the league having its highest attendance during the past two years and strong performance on social media. And the NBA isn’t alone: Men’s and women’s college basketball ratings are down 21% and 38% this year, respectively, the NHL is down 28%, and even college football lost viewers.
It’s not that deep: The NBA probably isn’t sweating this early season rating downturn, because it’s already locked in a long-term TV megacontract. Starting next year, new broadcast deals worth $76 billion over 11 years will begin.—DL
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Timothée Chalamet look-alikes are out, and Jesus look-alikes are in.
At least in Utah, where some long-haired and bearded men are charging $100–$200 per hour in the growing market for Jesus models, the WSJ reported. They’re being hired for occasions like the family photo shoot for the Christmas card or wedding announcements.
The hourly rate is so high because the labor pool is low. Many people who live in Utah are Mormons, and the men who work or volunteer for the Church of Jesus Christ of Latter-Day Saints tend not to look like Jesus, because they frequently shave and have short hair. So there’s a lucrative side-hustle opportunity for strapping fellas with long hair and beards who haven’t aged into the Mall Santa market yet.—NF
Recalculating your route: Wish your maps platform did more for less? Check out our article on Radar’s enterprise-ready geocoding. We break down its features to help you decide if it’s right for your team. Read it.*
Jigsaw: Today’s puzzle depicts a charming scene from the annual holiday train show at the New York Botanical Garden (which you should visit if you’re in town). Solve it here.
Friday puzzle
Which US state name consists of two words with opposite meanings that are separated by a vowel?
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Today’s Word of the Day is: gastronomy, meaning “the practice or art of choosing, cooking, and eating good food.” Thanks to Namrata from San Jose for the delicious suggestion. Submit another Word of the Day here.
✢ A Note From Mode Mobile
Please read the offering circular at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A offering. A reservation of the ticker symbol is not a guarantee that we will be listed on the Nasdaq. Any IPO timing is unknown, general steps to be accepted have not been undertaken at this point, and that listing is not guaranteed.