The U.S. Treasury Department began taking extraordinary measures on Thursday as the nation hit its $31.4T debt ceiling. In a letter addressed to House Speaker Kevin McCarthy, R-Calif., Treasury Secretary Janet Yellen said the Treasury will pause new investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund from Thursday until June 5, 2023. More: - Yellen had previously said the extraordinary measures would allow the government to pay its obligations until June.
- Yellen has asked Congress to either increase the debt limit or suspend it.
- Failing to do neither would cause the U.S. to default on its debt for the first time and could lead to global economic consequences.
- The Biden Administration also asked Congress to increase the debt ceiling without condition.
- The administration plans to negotiate a new bill to raise the debt limit after the April tax deadline.
- According to the Government Accountability Office, the debt ceiling has been raised 22 times from 1997 to 2022.
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Procter & Gamble released its fiscal Q2 earnings on Thursday, reporting declining sales and profits. The consumer goods company reported $20.8B in net sales, down 1% YoY. Organic sales rose 5% YoY due to higher prices. P&G posted $3.9B in net earnings, or $1.59 per diluted share, down ~8% YoY. More: - All P&G divisions reported declining sales volume but posted increases in organic sales due to higher pricing.
- Total sales volume declined 6% compared to last year.
- P&G executives blamed a decrease in consumer demand for half of the 6% decrease in sales volume.
- The other half was due to the company winding down its Russia business and COVID-19 disruptions in China, its second-largest market.
- The company returned $4.2B of cash to shareholders in the quarter, including $2.2B of dividend payments and $2B in stock repurchases.
- P&G shares were down ~0.5% during late morning trading on Thursday.
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Crypto lender Genesis Global Capital is planning to file for bankruptcy amid a liquidity crunch. According to sources, the lending arm of Barry Silbert’s Digital Currency Group has been in talks with various creditors and has previously warned it may need to file for bankruptcy if unable to raise new capital. More: - Genesis began facing financial pressure following the collapse of crypto hedge fund Three Arrows Capital.
- The firm suspended new loans and redemptions in November following the collapse of FTX.
- Genesis held some of its funds in FTX.
- Genesis’ liquidity pressure has impacted crypto exchange Gemini Trust, run by the Winklevoss twins Cameron and Tyler.
- Gemini allowed its users to earn a yield from lending their crypto assets through Genesis.
- Gemini paused redemptions from its Gemini Earn service shortly after Genesis paused withdrawals.
- Genesis and Gemini are facing SEC charges for selling unregistered securities to customers.
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Uber is working with automakers to design low-cost EVs for its ride-hailing and delivery businesses. While speaking at a WSJ event on Thursday, CEO Dara Khosrowshahi said the company is working with automakers to optimize its vehicles for city use, carrying passengers, and deliveries. More: - Khosrowshahi discussed lowering the top speeds for ride-share vehicles used for city driving, adding that a lower top speed means fewer specs and ultimately lower costs.
- The company is also considering two or three-wheeled vehicles for its delivery service.
- Khosrowshahi noted that these smaller vehicles could navigate traffic more efficiently and have a smaller carbon footprint.
- Uber aims to convert the vehicles its drivers use to electric by 2030, and in some places, by 2025.
- Khosrowshahi did not disclose which automakers the company is working with.
NOTE: Inside.com founder and CEO Jason Calacanis is an investor in Uber.
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LIV Golf has reached a multiyear agreement with Nexstar Media Group to broadcast its golf tournaments on the CW Network. The terms of the deal were not disclosed. LIV Golf, backed by Saudi Arabia’s sovereign-wealth fund, launched in July and has been embroiled in a legal battle with the PGA Golf tournament. More: - LIV CEO and Commissioner Greg Norman said the deal would provide accessibility to the league’s fans and maximum exposure for its athletes and partners.
- LIV’s first event this year is scheduled for Feb. 24 to 26 in Mexico.
- LIV has offered record-breaking prize funds at its tournaments as incentives to lure top golfers.
- According to sources, LIV offered Tiger Woods nearly $1B to participate in the league’s debut tournament in London in July.
- Saudi Arabia had committed at least $2B to LIV Golf.
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Crypto news site CoinDesk is exploring a sale. The company has retained investment bank Lazard to assist it in exploring options, including a partial or total sale. CEO Kevin Worth said the company had received multiple indications of interest over the last few months. More: - According to sources, CoinDesk’s parent company, Digital Currency Group, has received unsolicited offers north of $200M for CoinDesk.
- DCG acquired CoinDesk in 2016 for $500,000. Last year, the news site earned $50M in revenue from ads, its index, and events business.
- In November, CoinDesk published a report questioning crypto exchange FTX’s financial health.
- FTX filed for bankruptcy days later, causing a liquidity crisis across the crypto industry.
- DCG’s lending arm Genesis was also impacted by the fallout from FTX’s collapse.
- According to a recent Bloomberg report, Genesis is preparing to file for bankruptcy.
- Genesis is also facing SEC charges for selling unregistered securities to customers.
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- Amazon is ending its AmazonSmile charity donation program as the company continues to cut costs. Through AmazonSmile, the e-commerce giant donated a percentage of eligible purchases on its site to the shopper's chosen charity organization.
- Peter Thiel's Founders Fund exited most of its crypto holdings shortly before the market crashed last year. The VC firm generated about $1.8B in returns.
- U.S. jobless claims fell by 15,000 to a seasonally adjusted 190,000 for the week ended Jan. 14. Economists had forecasted 214,000 claims.
- Actor Alec Baldwin will be charged with two counts of involuntary manslaughter for the fatal on-set shooting of "Rust" cinematographer Halyna Hutchins. The movie's armorer, Hannah Gutierrez-Reed, will also be charged with two counts of involuntary manslaughter.
- Poland has signaled it may send German-made Leopard 2 tanks to Ukraine without Berlin's approval. Yesterday Germany said it would not allow the allies to send over German-made tanks to Ukraine nor send its own systems unless the U.S. agrees to send over U.S.-made battle tanks to Ukraine.
- Media startup Semafor is planning to buy out FTX founder Sam Bankman-Fried's $10M investment in the company.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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