Looming Government Shutdown Threatens as House Rejects Financing Proposal
Good morning,
Prepared for around 40 million travelers to pass through security checkpoints in the upcoming two weeks, the Transportation Security Administration (TSA) is anticipating high volumes of passenger traffic. As a result, caution and endurance will be necessary.
Today marks one of just three days projected to have the highest airport passenger numbers, alongside December 27 and December 30. Regrettably, past events indicate that these peak days may result in further delays and cancellations.
To mitigate possible disruptions caused by inclement weather, take a look at the National Oceanic and Atmospheric Administration (NOAA)'s National Forecast Map. To swiftly navigate through the security checkpoint, ensure that any gifts you're carrying remain unwrapped.
TO BEGIN WITH
As numerous drone sightings have been reported throughout the eastern U.S., Robin Radar, a Dutch drone detection company, claims their radar technology can offer a solution. Sen. Chuck Schumer (D-NY) mentioned the company's name during a recent press conference about the sightings. The company's CEO claimed that their hardware costs less than $1 million per installation, significantly cheaper than traditional military-grade radar systems, which often struggle to identify small objects like drones.
Congress voted against a fresh funding bill supported by President-elect Donald Trump, marking the latest failed spending proposal this week. If the new bill fails to receive approval by midnight Friday, the government will partially shut down, leading to potential disruptions in Medicare applications, furloughs for hundreds of thousands of federal employees, and a decrease in the number of air traffic controllers and TSA agents, which could contribute to delays in travel.
MORE: The rise of Elon Musk's influence in Washington is highlighted by his opposition to the previous funding bill, which prompted at least two vocal Republican members of Congress to propose him as a potential candidate for the position of House speaker. Although unconventional aspirants for the role have been suggested in the past, these proposals have failed to gain traction.
WEALTH + ENTREPRENEURSHIP
Billionaire philanthropist MacKenzie Scott donated $2 billion to 199 organizations in 2024, according to a statement she released on Wednesday. This brings her total lifetime donations to an estimated $19.3 billion. Scott, known for her altruistic grants to local organizations, wrote that 75% of her gifts went to non-profit organizations supporting the economic stability and opportunities of disadvantaged individuals.
TECH + INNOVATION
Following the Federal Reserve's announcement that it expects only two interest rate reductions in 2025, biotech stocks and startups suffered significant losses. Persistent higher interest rates could pose challenges for new breakthrough startups, as industries with more predictable returns become more appealing to investors. This market environment that prioritizes investment in safer bets over innovation may result in patients missing out on crucial disease treatments.
MONEY + POLITICS
Like numerous social media platforms in the alternative internet sector, Rumble, a $2 billion video-sharing platform marketed as a pro-free speech alternative to YouTube, has struggled to generate profits. The company, backed by Vice President-elect JD Vance's former investment firm, reported losses of over $100 million in 2022 and has burnt through approximately two-thirds of the funding it obtained from its SPAC merger in September 2022.
Fulton County District Attorney Fani Willis was disqualified from overseeing the criminal case against Trump and his allies, ruling handed down by a state appeals court on Thursday. Trump and others indicted in Georgia voted for an appeals court judge to determine whether Willis should be disqualified based on her romantic relationship with prosecutor Nathan Wade.
SPORTS + ENTERTAINMENT
The NHL saw its average franchise value increase by 44% in 2024, reaching $1.9 billion, exceeding the growth in the value of pro football, basketball, and baseball teams this year, according to estimates from Our Website. The Toronto Maple Leafs remain the league's most valuable team, valued at $3.8 billion, falling short of the entire value of all 32 NFL teams, as well as 18 NBA teams and 4 MLB teams.
TRENDS + EXPLAINERS
The Malaysian government agreed to a plan to resume the search for the Malaysian Airlines MH370 flight, which disappeared nearly a decade ago and remains one of the world's most significant unresolved aviation disasters. The search will be carried out by American marine robotics and deep-ocean exploration company, Ocean Infinity, with Malaysian Transport Minister Anthony Loke stating that the company's search will focus on a new area estimated to be 15,000 square kilometers in the southern Indian Ocean.
TRENDS + EXPLAINERS
Luigi Mangione, the 26-year-old suspect in the killing of UnitedHealthcare CEO Brian Thompson, is now facing federal charges of stalking and murder. Federal prosecutors may seek the death penalty, as Mangione allegedly used interstate travel and communication to plan the crime.
A district court judge ruled that a preliminary nationwide injunction barring the Treasury Department from enforcing the Corporate Transparency Act (CTA) will remain in effect while the government's appeal proceeds. The government's request followed a judge's earlier decision declaring the CTA unconstitutional.
How Clase Azul Crafted a Billion-Dollar Tequila Empire Off the Top Shelf
LEADING STORY For the past three decades, Arturo Lomeli, founder and CEO of elite tequila label Clase Azul, has honed a blueprint centered on authenticity. He adopts a long-term strategy and has made investments vertically, even when it appears irrational.
Experts in the culinary sphere speculate that if Clase Azul ever put itself up for sale, the transaction would total billions. This reflects not only the exorbitant multiples now commonplace in the liquor trade but also the robustness of Lomeli’s operation.
Clase Azul shrouds its financials in secrecy. From 200,000 global accounts, Clase Azul estimates its annual revenue to be around $150 million—surpassing the sales Casamigos had when Diageo acquired it in 2017 for $1 billion, or a deal value of 10 times revenue.
Our Platform predicts that Clase Azul could be valued beyond $1.5 billion. Using a multiple of 10 times sales, which is on the modest side for today’s market, especially for a tequila brand.
Those sky-high multiples mirror the profitability. Clase Azul’s net income margins are estimated to be over 30%. Gross margins hover around 70%. This outperforms publicly traded spirits behemoths like $9 billion (sales) Constellation Brands (proprietor of Svedka and tequilas Casa Noble and Mi Casa) or $20 billion (sales) Diageo (Don Julio tequila, Johnnie Walker and Smirnoff).
However, do not anticipate an acquisition or IPO any time soon—Lomeli declares Clase Azul will stay autonomous and wholly Mexican-owned.
WHY IT’S RELEVANT “Clase Azul is the only premium tequila that insists on remaining autonomous and wholly Mexican-owned,” says Our Platform editorial team member Chloe Sorvino. “There’s been a surge of interest in cashing in on tequila in the last five years as it’s become one of the most dynamic sectors in the spirits industry. But Lomeli sticks with Clase Azul for the long haul.”
MOREThe $100 Million Family-Owned Italian Restaurant Dynasty Challenging Nobu and Carbone
FACTS + COMMENTS
The number of cold-weather fatalities has more than doubled since 1999, per recent studies. Experts attribute this to increasing frequency of extreme weather events due to climate change:
109%: The amplification in the rate of cold-weather fatalities since 1999, rising from 0.44 per 100,000 people to 0.92
75 years and older: Cold-related deaths were highest among this demographic
8% to 12%: The rise in death rates during winter months versus non-winter months in the U.S., as per the EPA, for the past several years
STRATEGY + SUCCESS
Although it may appear daunting to ask for a raise, it’s essential for career growth and financial mobility. Begin by investigating your standing in the industry and where your current paycheck ranks relative to industry norms, then scrutinize your performance and contributions to the company. Make sure to select an opportune moment for the discussion and articulate your case, while maintaining an ear for feedback.
VIDEO
QUIZ
A new Fodor’s report uncovers 15 overcrowded tourist destinations you might want to reconsider visiting next year. Which of the following countries does not house one of those destinations?
A. Vietnam
B. Japan
C. Indonesia
D. Mexico
Answer your question here.
Cheers for reading! This edition of Our Platform Daily was compiled by Sarah Whitmire, Chris Dobstaff and Caroline Howard.
The government shutdown threatens potential disruptions in Medicare applications and a decrease in the number of air traffic controllers and TSA agents, leading to travel delays. Interest rates are expected to impact biotech stocks and startups, making investments in safer bets over innovation more appealing. The Federal Reserve's announcement of only two interest rate reductions in 2025 has been met with significant losses in the biotech sector. To mitigate drone-related disruptions at airports, Dutch drone detection company Robin Radar claims their radar technology can provide a solution. Senator Chuck Schumer mentioned the company during a recent press conference about drone sightings. After a state appeals court ruling, District Attorney Fani Willis was disqualified from overseeing the criminal case against Trump and his allies.
