Good morning and happy Sunday. Here’s what you need to know in business and tech news for the week ahead. — Charlotte Cowles
What’s Up? (May 9-15)
Panic at the Pump
A cyberattack on Colonial Pipeline, one of the biggest fuel arteries in the United States, pushed the average price of gas above $3 per gallon for the first time since 2014. Fearing a shortage, panicked buyers lined up at the pump, which, of course, made the problem worse. To appease the hackers, who are believed to be part of a foreign organized crime group, Colonial Pipeline paid nearly $5 million in ransom — a capitulation that could embolden other criminals to take American companies hostage. The pipeline’s operators restored service late last week but said the supply chain would need several days to return to normal.
It’s Not Your Imagination
A new report from the Labor Department confirmed what you may have noticed: Prices for consumer goods like clothes, food and other household goods were up 4 percent in April from a year ago, blowing past forecasts. Economists are attributing the spike to pandemic-related issues like higher shipping and fuel costs, supply disruptions, rising demand and understaffing at factories and distribution centers. The Federal Reserve tried to assuage fears of inflation by insisting that the increase was temporary. But the news spooked the stock market all the same. And retail sales in April fell short of expectations, holding steady but showing a slowdown in growth after a blockbuster March.
Facebook’s Crypto Bid
Still eager to get a piece of the cryptocurrency market, Facebook is overhauling its digital-currency project (formerly known as Libra, now called Diem) to address concerns from U.S. officials that it could be used for money laundering and other illegal purposes. The company is also moving the project to the United States from Switzerland after a stalled attempt to gain approval from Swiss regulators. In other crypto news, Tesla’s chief executive, Elon Musk, abruptly reversed his support for Bitcoin, tweeting that his company would no longer accept the cryptocurrency as payment because of the fossil fuels used in its mining and transactions. After his tweet, the price of Bitcoin dropped more than 10 percent.
What’s Next? (May 16-22)
Free Rides for Shots
As part of an effort to get 70 percent of American adults at least partly vaccinated by July 4, federal and state governments are adding extra incentives. (In case keeping yourself and others safe, and the ability to go maskless, wasn’t a good enough reason.) The Biden administration has partnered with the ride-hailing companies Uber and Lyft to provide free transportation to vaccination sites nationwide starting May 24. West Virginia is working on a plan to offer $100 savings bonds to people ages 16 to 35 who get their shots. And those who receive the vaccine in Ohio will be entered into a lottery that awards a $1 million prize each week for five weeks, starting May 26.
Ellen’s Last Dance
Ellen DeGeneres will end her talk show next year after nearly two decades on the air. Her program has seen a steep decline in ratings after employees complained of a toxic workplace and accused producers of sexual harassment. The accusations looked particularly bad in light of Ms. DeGeneres’s tagline, “Be Kind,” which has become a branded juggernaut used to market merchandise to her fans. Although Ms. DeGeneres apologized publicly in September for the incidents, the show has since lost more than a million viewers, a 43 percent decline from about 2.6 million last season. It also saw a 20 percent decline in advertising revenue from September to February compared with the previous year.
(Slightly) More Golden Arches
In the battle to recruit workers in a tight job market, McDonald’s has become the latest fast-food company to raise hourly wages, following in the recent footsteps of chain restaurants including Chipotle and Olive Garden. But the McDonald’s pay increase applies only to its company-owned restaurants, which make up a small fraction of its business. About 95 percent of its U.S. restaurants are independently owned and set their own wages.
What Else?
Low-income households can now apply for a $50 monthly discount on high-speed internet services. Hearst Magazines sold the American edition of Marie Claire to a British publisher. And after more than a year of trying to figure out what to do with the embattled retailer Victoria’s Secret, the brand’s parent company has decided to split itself into two independent, publicly listed entities: Victoria’s Secret and Bath & Body Works.
Join Andrew Ross Sorkin of The Times in conversation with Dame Ellen MacArthur and other economic experts to explore what it will take to transform the economy in the battle against climate change. May 20 at 1:30 p.m. E.T. RSVP here.