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| Hey Insiders, In today's Inside Business newsletter, we take a look at how the Biden administration's crackdown on "junk fees" may affect certain companies' revenue. We also discuss Virgin Galactic's plans for its first commercial space flight. Want to learn more about a certain topic? Let us know! Christopher
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| 1 | | Virgin Galactic is bringing consumers to space with the announcement of its first commercial space tourism service. The first commercial flight into space has been long awaited since the company was founded by billionaire Richard Branson in 2004. More: - The flight, called Galactic 01, targets a launch window of June 27 and will run until June 30.
- The second commercial flight will happen in early August and will set up a schedule of monthly flights after that.
- Galactic 01 will carry three members of the Italian Air Force to conduct microgravity research with science payloads.
- The company completed its last test flight in May, and commercial trips are vital to the company's success.
- "We are launching the first commercial spaceline for Earth with two dynamic products — our scientific research and private astronaut space missions," Virgin Galactic CEO Michael Colglazier said in a statement.
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What the numbers say: Ticketmaster has seen an exponential rise in revenue over the past two years. While many entertainment companies have also seen rises in revenue in the post-COVID era, Ticketmaster has done particularly well, banking $16.7B in annual revenue in 2022. The entertainment ticketing service saw a 166.11% growth from 2021 to 2022 and a 236.8% growth from 2021 to 2020. Relevance: Ticketmaster and SeatGeek have come under fire for not showing the total price of fees during the transaction process of buying tickets on their platforms. The Biden administration has set out to eliminate "junk fees" that Live Nation, the company that owns Ticketmaster and SeatGeek, has slapped onto the end of transactions. The company, in working with the Biden administration, announced a commitment to making pricing more transparent throughout the process. "Junk fees" are being targeted, as they are tacked on to goods like concerts, sporting events, hotel stays, and airline tickets. Other data: Few changes have been made by companies, especially on concert tickets, until now, as it was previously a state-mandated issue, as many of the fees go to venue rentals. This became a larger issue this year with the botched ticket sales of the Taylor Swift Eras tour that led to Live Nation's president being called to testify in front of a Senate Judiciary Committee. | | | |
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| 3 | | The European Central Bank raised interest rates to their highest in more than two decades as a measure to curb inflation. Unlike the U.S. Federal Reserve, which stood pat yesterday, European policymakers lifted rates by a quarter of a point to 3.5%. More: - This is the highest the interest rate has been since 2001 for the 20 countries that utilize the Euro currency.
- Officials said inflation was forecast to remain too high for too long.
- This was expected following May's meeting of the Bank's Governing Council, where concerns were expressed about inflation pressures from wage growth.
- It is "very like" the Bank will raise rates again in July, according to Christine Lagarde, the president of the European Central Bank.
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| 4 | | A potential crisis was averted Thursday when longshoremen and a group representing U.S. west coast port employees reached a tentative contract agreement. It averts a potential strike that could have cost the U.S. economy $1B a day. More: - This comes after negotiations have been going on for the past 13 months as President Joe Biden sent acting U.S. labor secretary Julie Su to push for an agreement following work stoppages at ports from Seattle to Los Angeles.
- The six-year contract agreed upon covers 22,000 workers and 29 west coast ports.
- The preliminary deal will provide stability for workers and the economy, according to Su.
Zoom Out: - This is the second time during his presidency that Joe Biden has had to step in to avoid work stoppages at west coast ports, as the president was forced to intervene and address bottlenecks at ports in Los Angeles and Long Beach.
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| 5 | | Restaurant chain Cava Group Inc. delivered one of the largest first-day gains in the past two years after nearly doubling its trading debut. It exceeded the target for its initial public offering by raising $318M. More: - Cava's shares closed Thursday at $43.78, a 99% gain from the IPO price of $22 per share.
- The company sold 14 million shares after marketing them for $19 to $20, a range it had elevated earlier.
- Analysts aren't sure that it will last, though, as they are comparing Cava to Portillo's Inc. and Sweetgreen Inc., two other restaurants that saw initial pops in trading debuts before eventually cooling over time.
- Still, the fast-casual Mediterranean restaurant's IPO is the sixth-largest of 2023.
- "The market's always welcoming and ready for long-term sustainable growth stories, especially ones that are category-defining brand," Cava Chief Executive Officer Brett Schulman said in an interview. "That's what we're trying to do in the Mediterranean cultural cuisine category that we've established a clear dominant leadership position in."
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| 6 | | Walt Disney Company Chief Financial Officer Christine McCarthy is stepping down and taking a family medical leave of absence. Kevin Lansberry, the company's CFO of Parks, Experiences, and Products, will take over as interim CFO effective July 1. More: - McCarthy has been the CFO of Disney for the past eight years.
- She will serve as a strategic adviser while on leave and will be a part of the team that chooses the long-term successor.
- "Although I am leaving the CFO role, I look forward to helping with the transition and will always be rooting for the success of my extended Disney family," McCarthy said in a statement.
- Disney's stock dipped in after-hours trading following the announcement.
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INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Editor | | Christopher Hachey is a freelance writer and editor based in the New York City area. He has spent most of the past 15 years in newsrooms covering all kinds of topics like sports, tech, business, finance, and commerce. He's now returning to his broadcast journalism roots by diving into podcasting news. Reach out to him at chris@inside.com | | This newsletter was edited by Aaron Crutchfield | |
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