Week of May 15th, 2023

Plus, a round of Half Full/Half Empty.

It’s been a busy month in the corporate bond market. Big mergers and the looming debt ceiling deadline could be among the reasons. Plus, a potential nail in cable TV’s coffin.

Leaders at Disney, which owns ESPN, say it’s an inevitability that the cable channel will migrate to streaming. Such a move would shake up the cable industry.

Solid earnings posted by the farm equipment maker show many farmers had cash to spend, but that’s no guarantee for the year ahead.

Recent mergers and the ongoing debt limit negotiations in Congress could be prompting companies to borrow more.

Financial experts advise investors to not panic, reduce debt and build savings.

Econ Extra Credit newsletter #150

She’s likely to make more than $5 million a night in ticket sales alone.

There’s optimism from congressional leaders and the White House that we could see a vote on some sort of legislation to raise or suspend the debt limit as early as next week. But the clock is still ticking. We’re getting closer to June 1, the date that the Treasury Department has said could be when the U.S. runs out of money to pay its bills. Ian Bremmer, president of the risk consultancy Eurasia Group, breaks down the political standoff. And, the repercussions of a Supreme Court ruling yesterday that pop artist Andy Warhol violated copyright law in his creation of a silkscreen portrait of the musician Prince. Will it stifle creativity for artists going forward?

Every day there’s a warning about how catastrophic a default on the national debt would be. What’s it going to take to avoid that?

That’s because internet platforms are hanging on to a key legal shield that protects them from being liable for what users post. That shield is called Section 230, and the Supreme Court sidestepped directly addressing it in a pair of rulings that came out Thursday. We have more on the two cases that sought to make social media sites liable for terrorist content. Also, congressional leaders and the White House say there’s at least some progress on negotiations to raise or suspend the debt limit. And, the latest stop on Taylor Swift’s tour, which is selling out venues across the country. The tour’s economic impact is one few other artists can replicate.

From the BBC World Service: Russian diamonds are being added to the latest round of sanctions as the leaders of the G-7 nations meet in Hiroshima, Japan. The BBC’s Nick Marsh reports from there. Plus, the cost of the floods in northwest Italy will be in the billions of dollars. We hear from two people affected. And, finally, what’s the environmental cost of surfing? The BBC’s Clare Marshall has been finding out.

The Communications Decency Act provision shields platforms from liability for the things their users say online. Former Congressman Chris Cox says those protections end at artificial intelligence.

And how you can use that to your benefit.

We’ll unpack the Supreme Court’s decision not to mess with Section 230 (for now).

2023 is on track to be the biggest year for Chapter 11 bankruptcy filings in over a decade. What gives? Plus, hobby spending slows down.

Half a million jobs could be lost in the second-biggest state economy. Pensioners, the food insecure and many others could suffer.

As a small business, TukTuk YumYum Sweet Treats often struggles to reach the threshold of a bulk order when purchasing supplies. This means they often still pay retail prices.

More than 230 companies declared bankruptcy before the end of April. What is happening?

Commerce Department data shows retail sales for sporting goods, hobby, instrument and book stores were down 5.4% in April compared to a year ago. Sales for garden equipment and supplies were down too.

“In the past, we’ve studied social media ads as if they’re just like a billboard or a print magazine ad when they’re not,” said advertising professor Matthew Pittman. “You’re seeing an ad from any number of sources.”

The Burchams own an orchard in Firebaugh, California. Like other pistachio farmers, they’re grappling with a changing climate.

Can you put a price on the years lost to trauma? Quinn Topham wasn’t sure, but they would do whatever it took to be heard.

Ashleigh Griffin hoped the fertility industry could put her on the road to financial stability. But the decision to donate her eggs would lead her down an unexpected path.

The labor market is still tight, don’t get us wrong. Many employers are still looking for workers. And the economy is so resilient that the Fed has reason to be worried about sticky inflation. But all that said, jobless claims are ticking up. We’re keeping an eye on that with Diane Swonk, chief economist at KPMG. Plus, Russia has agreed to extend a deal allowing Ukrainian grain exports to safely travel out of the Black Sea. This helps both Ukraine and the lower-income countries that could use some relief from high food prices. And, why the unemployment rate for younger workers is so high in China.

Sports wagering revenue is also up 70%, a sign of the gambling industry’s strength.

A new report finds that funding has stagnated in the last two decades. Some states are trying to buck the trend.

New data from the American Gaming Association show that revenues for the legal gambling industry totaled almost $17 billion in just the first three months of the year. Plus, a major opioid crisis settlement between the city of San Francisco and Walgreens. The city’s attorney says it’s the biggest award to a municipality in a case involving opioids. And, public spending on preschool has stagnated for two decades when you adjust for inflation, according to a new report. A big part of increasing public support for early education is finding more teachers.

From the BBC World Service: An agreement allowing Ukraine to export millions of metric tons of grain through the Black Sea, despite Russia’s ongoing war, has been extended. The deal will allay concerns over global food supplies, but it only lasts 60 days. And, the British telecoms group BT plans to shed 40% of its staff in the coming years as part of a major shake-up. Plus, as end-of-year college exams loom, we look at the impact of apps like ChatGPT on the world of education.

Artists worry AI will take away jobs. But for those who never went to fashion school, does it provide opportunities?

You asked. We answered.

New homes have been gobbling up an increasing share of the overall market. Plus, a report on the diminishing opportunities in China’s labor market.

The number of U.S. rigs has dropped along with natural gas prices. Here’s what that means for the “shale revolution.”

The U.K. has adopted an additional fiscal statistic that suggests public finances are not in such a bad shape after all.

China’s job market remains competitive as the economy recovers from zero-COVID. But some young people have lost their eagerness to compete.

Jayne Ehrlich wants to make it easier for boomers to live “alone together.”

Target, for example, warned investors of price promotions in the pipeline.

Most new homes are going up in the South and states like Utah and Nevada, where homes are generally more affordable than on the coasts.

A new federal program is dropping rural hospitals a lifeline to keep emergency services available as they struggle to turn a profit.

That’s according to a new report this week from the consulting group GEP. And it’s partly because companies have been able to get rid of their mountains of unsold stuff. Plus, more data on consumer behavior in this economy. Big-box retailers are seeing sales stagnate some, but there are some bright spots in housing construction data. And, the rise of Wrexham. The economics behind a small Welsh soccer team’s ascension, thanks to some Hollywood investment.

But tackling the issue is another story.

Three years after the start of the pandemic, inventories are down and supply chains are less volatile.

Economic coercion is essentially economic bullying. And later this week at the Group of Seven summit in Japan, the U.S. and its allies are expected to tackle this problem. There are many examples of this form of economic retaliation, and recently China’s economic policies are under scrutiny. We speak with someone whose jobs it is to address these international economic issues, U.S. Trade Representative Katherine Tai. Plus, we look at the Biden administration’s latest challenge to a big corporate merger, this time in the pharmaceutical industry.

From the BBC World Service: As the ChatGPT creator warns of the dangers of artificial intelligence, we hear from a European lawmaker involved in drawing up the world’s first comprehensive AI legislation. He thinks the U.S. will follow suit. And, we look at how Welsh soccer club Wrexham has fared under the ownership of American actors Ryan Reynolds and Rob McElhenney. They’ve helped turn the club’s fortunes around and have become the poster boys for U.S. investment in European soccer.

Self-driving cars are increasingly common in a handful of U.S. cities, but as their numbers grow, so do reports of problems. The Verge’s Andrew Hawkins says humans are less tolerant of robocars’ errors than of the safety risks posed by other humans.

What started on Facebook evolved into a dysfunctional app and a fractured community, as chronicled by Wired contributor Vauhini Vara.

Recent economic data shows an economy that diverges from pre-pandemic norms, but what’s even “normal” anymore? Then, a look at the rise and fall of Buy Nothing groups.

Between the pandemic and its economic ripple effects, the consumer experience has been a wild ride.

Plus, any “Succession” fans out there?

When people buy new homes, they buy a lot of other things too, like furniture, appliances and electronics. When home buying slows, that can have a real ripple effect on other industries.

Generative artificial intelligence is advancing quickly, and it’s not clear if legislators and regulators can keep up.

In some counties, the rates for property owners have increased on average more than 600 percent.

There are multiple congressional hearings underway today to take a look back at what happened with the failures of Silicon Valley Bank and Signature Bank earlier this year. In the Senate, we’re hearing from former executives of those banks. In the House of Representatives, the Federal Reserve’s top banking watchdog and other regulators are speaking. Also today: we have the latest data on retail sales. How are consumers holding up? And lastly, why you might be paying more for flood insurance.

Generative artificial intelligence has gripped the world’s imagination with its potential to disrupt our economy and way of life. The Senate is tackling that today in a hearing which includes the chief executive of OpenAI. Plus, add up everything all of us consumers in this country owe and you will get … a bill of more than $17 trillion. What can this household debt number tell us about where the economy’s headed? And, a change to Medicare that Congress is considering which could save the federal government as much as $150 billion over a decade.

From the BBC World Service: The European Union has given the green light to Microsoft’s $68 billion acquisition of Call of Duty-maker Activision Blizzard. Meanwhile, the U.K. antitrust regulator is standing firm on its view the transaction will be bad for consumers, and it’s still being challenged in the U.S. Plus, telecommunications giant Vodafone is cutting 10% of its workforce after missing targets. And, the Sudanese film industry has reached a major milestone: a movie from the country has made the official selection at the Cannes Film Festival for the first time.

A little-known payment change could save the federal government $150 billion over the next 10 years.

Passwords are an enormous security risk, and big tech companies are looking at passkeys as a tentative solution to the perils of password breaches and lost phones. Chester Wisniewski of Sophos unlocks the secrets of the technology.

Preventative mammograms are covered by most insurance providers. But follow-up exams might not be.

Plus, we’re getting close to the edge of the debt ceiling.

China has been accused of exerting its power by refusing to buy certain products from countries that cross it. Beijing is pushing back.

Federal tax revenue is coming up short, which is part of why the debt limit talks are so urgent. Plus, why Google is piloting a new price-drop guarantee.

Google’s piloting a new, free price drop guarantee. Why, and how useful is it?

Federal tax revenue is coming in short while the debt ceiling remains unresolved. The problem was signaled by meager refunds.

Hedge funds and private equity loans might lend like banks, but they’re not regulated like them.

The exact amount left from pandemic spending bills could be as little as $30 billion — a fraction of this year’s federal deficit.

“You go out there right now in our store and there’s a community,” said Jamie York, owner of Game Underground.

Or maybe we should be asking how it’s continuing to play a role in voters’ decisions. The presidential election in Turkey is, after all, headed to a runoff after no candidate was able to secure at least half the vote. We check in with reporter Victoria Craig in Ankara for the latest, including how the candidates are approaching the economic situation in Turkey. Plus, a new Marketplace podcast looks to break down the basics about money and financial literacy, lessons we should all get when we’re younger but often don’t. The show is called “Financially Inclined.”

Case in point: Peloton’s latest recall.

They’re not exactly household names, but ONEOK and Magellan Midstream Partners are coming together in a deal valued at nearly $20 billion to create a behemoth in the energy industry. The deal will give ONEOK, which transports natural gas, a new role in the oil business. Plus, we use the news of a big Peloton recall to look at where the company is headed next. And, China’s government says it is open to foreign investors and businesses now that it has declared victory over COVID. But foreign businesses aren’t quite so sure they’re really welcomed.

From the BBC World Service: Turkey’s President Recep Tayyip Erdoğan is leading the presidential election, but he’s just shy of winning a key 50% of the vote. That means a runoff with opposition candidate Kemal Kılıçdaroğlu is expected in a few weeks. Victoria Craig joins us from Ankara for more. Plus, the BBC’s Leonardo Rocha reports on Argentina as it raises interest rates to 97%. And, China announces a raft of measures aimed at encouraging couples to have children.

Google executive James Manyika emphasizes the benefits of artificial intelligence projects and points to the “collective effort” needed to mitigate the risks.