The price of eggs is expected to rise by 41.1% this year as the bird flu continues to rip through the nation's agricultural economy, the federal government projected in a new report.

Why it matters: That's more than double the 20% increase predicted in January.

• Egg prices have been climbing to record highs daily and shortages have been growing, which has led stores to limit how many eggs any one shopper can buy.

The big picture: The outbreak of the highly pathogenic avian influenza that begun in 2022 has recently intensified.

• In January, it affected 18.8 million egg laying hens, the highest monthly total of the three-year crisis, according to the U.S. Department of Agriculture.

By the numbers: The USDA's Economic Research Service provided a range for its 2025 price-growth prediction of between 15% to 74.9%.

• Egg prices already increased 13.8% in January after rising by 8.4% the prior month, the report said.
• Prices this January were 53% higher than they were 12 months earlier.

State of play: Restaurants, including Waffle House and Denny's, have added temporary egg surcharges because of high egg prices and shortages.

• But McDonald's has no plans to add an egg fee and is expanding its breakfast menu and offering a deal on Egg McMuffins this Sunday.
• Michael Gonda, the fast-food giant's McDonald's North America chief impact officer, wrote on LinkedIn Tuesday that "unlike others making news recently, you definitely WON'T see McDonald's USA issuing surcharges on eggs, which are 100% cage-free and sourced in the U.S."

Trump admin plan to "make eggs affordable again"

What's next: Agriculture Secretary Brooke Rollins said today in a WSJ op-ed that the Trump administration "will invest up to $1 billion to curb this crisis and make eggs affordable again."

• "We are working with the Department of Government Efficiency to cut hundreds of millions of dollars of wasteful spending," Rollins wrote. "We will repurpose some of those dollars by investing in long-term solutions to avian flu, which has resulted in about 166 million laying hens being culled since 2022."
• Rollins noted prices should "start coming down maybe this spring, this summer as we work to implement some of these bigger picture solutions."
• "Once we're past Easter, then we'll hopefully have some really good solutions for the American people," Rollins said.

The intrigue: If egg prices are still high for Easter, expect families to turn to alternatives like painting and hiding potatoes, an idea that sprouted in 2023 because of high prices.

More from Axios:

• Tooth fairy payouts drop to lowest rate in years
• Crafts retailer Joann going out of business; 19,000 jobs lost
• Peter Rawlinson out as CEO of luxury EV maker Lucid

The New York Stock Exchange is announcing plans to launch an equities exchange in Texas.

Why it matters: The move comes amid growing interest in corporate America in locating operations in Texas, viewing the Lone Star State as business friendly.

Zoom in: The NYSE, part of the Intercontinental Exchange, said it will launch NYSE Texas based in Dallas.

• The "fully electronic" exchange — which will provide a venue for listing and trading securities — will mark the reincorporation of NYSE Chicago in Texas.
• "As the state with the largest number of NYSE listings, representing over $3.7 trillion in market value for our community, Texas is a market leader in fostering a pro-business atmosphere," NYSE Group President Lynn Martin said in a statement.

State of play: The move comes less than two weeks after TXSE Group announced it had filed a Form 1 registration with the SEC to launch the Texas Stock Exchange, also in Dallas.

• TXSE, which has raised $161 million in capital, has landed investments from the likes of BlackRock, Citadel Securities and Charles Schwab.

What they're saying: "We have known all along that Texas is the best place to do business," the Texas Stock Exchange said today in a statement in response to the NYSE announcement.

• Texas Gov. Greg Abbott told CNBC in 2024 that rules involving environmental, social and governance, or ESG, served as an impetus to create a stock exchange in the state: "We need to make sure that Texas companies, and companies similarly situated, are not going to be cut off from capital markets in New York with policy decisions made from the left in places like New York."

The big picture: Companies and organizations frustrated with what they view as an anti-business atmosphere in other states have been increasingly drawn to Texas.

• Elon Musk last year secured shareholder approval to reincorporate Tesla from Delaware to Texas after a Delaware judge rejected his pay package.
• The WSJ reported Jan. 31 that Facebook owner Meta is also weighing reincorporating from Delaware to Texas.
• A slew of companies have moved global or U.S. headquarters to Texas in recent years, including Chevron, Caterpillar and Toyota.

🥊 Reality check: The New York Stock Exchange and Nasdaq are the entrenched leaders in a space that has not seen significant disruption in decades for a reason: They're really good at what they do.

The escalating bird flu crisis is ravaging the nation's supply of eggs, leading to increased prices and low-to-no stock at grocery stores, while chicken supply appears largely unchanged.

The big picture: The hens that lay eggs are not the same as the chickens raised for consumption.

• Broiler chickens, raised for meat, are completely different from layer hens raised to lay eggs, according to Tom Super of the National Chicken Council, which represents the country's chicken producers.
• "They're raised on different farms in completely different industries," Super told Axios.

Zoom in: Egg-laying hens typically start laying eggs after around 18 weeks, at which point they can stay productive for a year or longer, said Matt Sutton-Vermeulen, a supply chain expert on eggs, milk and meat for management consultancy Kearney.

• Broiler chickens, on the other hand, are typically led to the slaughterhouse after anywhere from six to eight weeks, he told Axios.
• "It's a whole different cycle," Sutton-Vermeulen said. "You don't have the pressure of time that they can be exposed to the virus."

Between the lines: This helps explain why Tyson Foods recently projected a 2% increase in its chicken production for its 2025 fiscal year even as the bird flu ravages egg production.

• The company said its chicken business turned in its best performance in eight quarters in the latest three-month period on an adjusted operating income basis.
• Tyson also says it has a strong biosecurity plan to protect its operations from the bird flu.

Yes, but: Chickens have also been susceptible to the bird flu, just not to the same extent.

• Between Feb. 8, 2022, and Jan. 29, 2025, less than .0005% of all broiler production in the U.S. was impacted by the bird flu, per data from the Animal and Plant Health Inspection Service of the USDA.
• The age of the chicken, geographic region and relation to migrant bird flyways can affect its susceptibility to avian influenza, Super said. Biosecurity on farms and different housing styles could also be factors.

More from Axios:

• Waffle House adds egg surcharge, citing bird flu-fueled shortage
• Egg shortages, higher prices spike as bird flu grows
• Bird flu causing egg prices to soar to new record high

Restaurants are starting to crack under the weight of the nation's egg crisis.

Why it matters: A devastating outbreak of the bird flu has ravaged the nation's supply of eggs, leading to egg shortages and increased prices at grocery stores.

• The bird flu has affected at least 22.8 million birds in the last 30 days, according to USDA data.

Driving the news: Waffle House said Tuesday it's adding a temporary surcharge of 50 cents per egg as the crisis escalates.

• While several major restaurant chains are not commenting on their egg plans in response to Axios requests, industry experts don't think Waffle House will be the last.
• Smaller, more local chains and individual restaurants have already added surcharges for eggs, said Amanda Oren, a vice president at supply-chain platform RELEX Solutions.
• "Waffle House is the only major chain I've heard of so far that is adding a surcharge," Karyn Rispoli, Expana's managing editor for eggs in the Americas, tells Axios. "But I wouldn't be surprised to see others follow suit."

Threat level: Part of the problem is that restaurants have few options to mitigate the crisis.

• Restaurants typically aren't able to lock in egg prices in the same way that airlines hedge fuel costs, International Foodservice Manufacturers Association CEO Phil Kafarakis tells Axios.
• Some restaurants will respond by promoting other items to "manage the demand" for eggs, Kafarakis says.
• "There's no quick fix," says Matt Sutton-Vermeulen, a supply chain expert on eggs, milk and meat for management consultancy Kearney. "That's the harsh reality."

State of play: Egg prices keep breaking new records and no end is in sight for the increases.

• Midwest large eggs will be at $7.79 per dozen after today's market, Rispoli says.
• "I'm also hearing from sources that food manufacturers are evaluating ways to work eggs out of their formulations because these high prices are just not sustainable," she tells Axios.
• But part of the challenge is that eggs aren't just sold individually — they're a crucial ingredient in many dishes, raising the prospect of broader food price hikes, "so we have an inelasticitiy in that commodity," Sutton-Vermeulen says.

Zoom out: For restaurants, pricing decisions are often left to local franchisees.

• IHOP told Axios that franchises "ultimately manage pricing per restaurant" and said its "House Faves menu remains available Monday through Friday for just $6, $7 in some locations."

What we're watching: How low the nation's flock can go.

• Today it's estimated at about 305 million, but "a good rule of thumb is you need a hen per U.S. citizen," Kearney's Sutton-Vermeulen says — and the U.S. population is about 340 million.

Tesla plans to launch its robotaxi business and pilot production of its humanoid robot in 2025, the company said Wednesday.

Why it matters: CEO Elon Musk has described self-driving car services as critical to the company's future.

Driving the news: Musk said on an earnings call that the company is "confident" it will launch "unsupervised" full-self-driving cars "as a paid service" in Austin, Texas, in June.

• He predicted the company would also launch robotaxi services in California this year, plus other U.S. markets.
• Tesla's "supervised" FSD — a partially autonomous driving system requiring occasional driver intervention — "continues to rapidly improve with the aim of ultimately exceeding human levels of safety," the company said in its earnings report.
• Tesla said its Cybercab — a vehicle with no steering wheel built to serve as a robotaxi — will begin "volume production starting in 2026."

Between the lines: Tesla also said Wednesday it remains committed to delivering "more affordable models," with production set to begin on these electric vehicles in the first half of 2025.

• "These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be produced on the same manufacturing lines as our current vehicle line-up," the company said.

By the numbers: In the fourth quarter, Tesla's revenue rose 2% compared with a year earlier to $25.7 billion, falling short of S&P Capital IQ's estimate of $27.1 billion.

• Its net income fell 71% to $2.3 billion, in line with S&P's estimate.
• Tesla shares jumped over 4% in after hours trading.

Tesla analysts are more focused on the company's future ambitions — including the development of its Optimus humanoid — than its past financial performance, according to Evercore ISI analyst Chris McNally.

• Musk said the company will make at least several thousand Optimus robots in 2025, adding that their initial use will be for tasks inside Tesla factories.
• Eventually, "Optimus will be able to play the piano and thread a needle," he said.

Editor's note: This article was updated with further information from Tesla's earnings call.

Target is pulling back on some of its diversity, equity and inclusion (DEI) efforts, days after President Trump returned to the White House.

Why it matters: The retailer follows a litany of major companies that have already scaled back DEI initiatives, including Walmart, McDonald's and Meta.

The big picture: The landscape for DEI initiatives has weakened in recent months as Trump and the MAGA movement targeted companies that have made it a priority.

• In his first week in office, Trump has ramped up his anti-DEI campaign, issuing executive orders banning DEI efforts in the federal government and raising the prospect that private DEI programs could be illegal.

Target Belonging at the Bullseye strategy

State of play: Target posted a fact sheet on its corporate site Friday titled "Target's Belonging at the Bullseye Strategy" that lists some of its actions, including:

• Concluding its "three-year diversity, equity and inclusion goals" and "Racial Equity Action and Change (REACH) initiatives in 2025 as planned."
• "Stopping all external diversity-focused surveys, including HRC's Corporate Equality Index."
• Evolving its "supplier diversity team" to "supplier engagement" to "better reflect our inclusive global procurement process across a broad range of suppliers, including increasing our focus on small businesses."

Zoom out: Target has been a lightning rod on social issues in recent years.

• The company previously implemented a policy allowing transgender people "to use the restroom or fitting room facility that corresponds with their gender identity."
• The retailer last year reduced Pride Month products after a backlash tied to its sales of LGBTQ+-themed items in 2023.

What they're saying: "We remain focused on driving our business by creating a sense of belonging for our team, guests and communities through a commitment to inclusion," Target said in its fact sheet.

• Target did not immediately address whether it was changing its bathroom policy.

More from Axios:

• Trump's DEI orders may halt progress for disabled workers
• Skyline Chili and Graeter's release "sweet, savory" ice cream
• Walmart boosts some top managers to over $600,000 a year
• Egg shortages, higher prices spike as bird flu grows

President Trump left Washington four years ago touting a revolutionary new consensus on the threat posed by China.

• He returned this week seeming to downplay that threat — signaling a potential thaw in relations between the world's two leading superpowers.

Why it matters: The stakes are enormous. How Trump deals with Chinese President Xi Jinping over the next four years will have sweeping implications for the global economy, AI, climate change, national security and more.

The big picture: After mentioning China just once in his inauguration address, Trump revealed he's considering 10% tariffs on Chinese products — far lower than the 60% duties he had threatened during the campaign.

• Trump held a phone call with Xi just days before the inauguration to discuss trade, fentanyl and TikTok — the Chinese-owned app that the president is now seeking to protect from a U.S. ban.
• Beijing's readout of the call was exceedingly warm, with state media declaring the two superpowers "can become partners and friends ... prosper together, and benefit both countries and the world."

Trump has struck a similar tone with his own rhetoric, even while insisting on the need for trade "fairness" and criticizing China for its operations near the Panama Canal.

• "I like President Xi very much. I've always liked him. We always had a very good relationship," he said at the World Economic Forum in Davos, acknowledging tensions ran high during the COVID pandemic.
• Trump went on to say he hopes China "can help us stop the war" in Ukraine, citing Beijing's close ties with Russia — and even suggested the three countries could work together on "denuclearization."

What they're saying: Trump's early actions undoubtedly signal a "more restrained" approach to Beijing, Jacques deLisle, a China scholar at the University of Pennsylvania Carey Law School, tells Axios.

• In a remarkable moment on Fox News, Trump was pressed by interviewer Sean Hannity on why he has defended TikTok given its reputation as a "spying app for the Communist Chinese."
• "You can say that about everything made in China," Trump shot back, citing cell phones and other imports. "Is it that important for China to be spying on young people, on young kids watching crazy videos?"

Flashback: It was Trump who first signed an executive order in 2020 warning China could use TikTok to conduct disinformation campaigns, build data dossiers for blackmail, and conduct corporate espionage on U.S. soil.

Between the lines: Investors like the sound of what Lu Zhou, CEO of investment firm Vanquor, called "a more pragmatic economic approach towards China."

• Zhou predicted Trump would "artfully implement certain tariffs on China" to satisfy the American people and his voters, but potentially hold back on blanket tariffs to satisfy certain Chinese officials.
• Mark Malek, chief investment officer of Siebert.NXT, agreed that Trump appears to be moderating his stance toward China — a dynamic that Wall Street and the bond markets "would love to see" continue.

The intrigue: Some experts believe Elon Musk could be a moderating influence on Trump's approach to China.

• Tesla has a factory in Shanghai and gets about 37% of its sales from China, according to Evercore ISI estimates, and Musk rarely criticizes Beijing —while constantly railing against "censorship" in Western countries.
• So if China were to retaliate against the U.S. over tariffs, TikTok or other Trump policies, Tesla would make a convenient target — especially now that Musk is so close to the new president.
• Chinese officials have also privately discussed the possibility of selling TikTok to Musk to allow the app to keep operating in the U.S., Bloomberg and The Wall Street Journal reported last week.

Reality check: Trump's Cabinet is stocked with China hawks like Secretary of State Marco Rubio and national security adviser Michael Waltz.

• Few experts view Trump's first week as a full retreat from his previous policy views, especially his plans for tariffs.
• "If the question is, 'Are we going to be back to sunshine and puppies?', the answer is definitely not," deLisle says.

What to watch: Trump's policies toward Taiwan, which Beijing has vowed to bring under its control, could be the ultimate indicator of where U.S.-China relations are heading.

• "Taiwan doesn't give us anything. Taiwan is 9,500 miles away. It's 68 miles away from China," Trump told Bloomberg Businessweek when asked whether the U.S. would come to the island's defense.
• "They did take about 100% of our chip business," he added. "I think, Taiwan should pay us for defense."

The escalating bird flu crisis is ravaging the nation's supply of eggs, leading to increased prices and presenting an immediate challenge for the Trump administration.

Why it matters: An outbreak of avian influenza is growing and has affected nearly 13 million birds in the last 30 days, according to USDA data.

• Some retailers are limiting how many eggs consumers can purchase while others are having a hard time keeping shelves stocked.
• "It's really a crazy situation and an unfortunate situation for consumers because the supply situation is what it is due to the bird flu," Jason Hart, CEO of grocery chain Aldi, tells Axios.

State of play: Egg prices are climbing to new record highs daily, Karyn Rispoli, managing editor for eggs in the Americas for price-reporting service Expana, tells Axios.

• A dozen large eggs in the Southeast and South Central "will be north of $7," while Midwest eggs are $6.95, Rispoli said Tuesday.
• Brian Moscogiuri, a global trade strategist at Eggs Unlimited, an egg supplier based in Irvine, California, told Axios that the "transactional values of eggs are as high as we've ever seen them."
• "Some of the retailers are short because their suppliers have been directly impacted and their replacement cost is extremely high right now because there's not much egg to be had in the market," he said.

Meanwhile, Emily Metz, president and CEO of the American Egg Board, said demand "for eggs at retail has been exceptionally high for a sustained period, and failing to act quickly and identify new ways to fight [highly pathogenic avian influenza, or HPAI] could mean continued challenges for customers and consumers who need the nutritious foods impacted."

What's next: Egg prices are expected to fly to new highs in the coming weeks and months.

• Hart said Aldi is committed to keeping prices as low as possible on eggs, consistent with its general pricing philosophy. "We view ourselves as that shock absorber for the consumer, so wherever we can we hold the line" on prices, he said.
• Walmart, the nation's largest retailer, told Axios in a statement that it "does not have a purchase limit on eggs, and although supply is very tight in some areas, we're working with suppliers to try and help meet customer demand."

What we're watching: It remains to be seen whether the Trump administration will take any action in addition to efforts already underway to address the crisis.

• Last week, the Department of Health and Human Services announced it would give Moderna approximately $590 million to accelerate bird flu vaccine trials.
• The American Egg Board tells Axios it's eager to work with the Trump administration as farmers, distributors and retailers all grapple with egg shortages and price hikes.
• Department of Agriculture representatives did not immediately respond to a request seeking comment from Axios.

Reality check: "There's no real silver bullet for this thing right now, outside of trying to stop the spread of the virus and get birds repopulated as quickly as possible," Moscogiuri said, adding that "farms are doing to their best of their ability."

• "It's unlikely that the new administration will be able to bring about significant change in just a matter of weeks, especially when it comes to the bird flu itself," Rispoli said.

The bottom line: Eggs are considered safe to eat but don't expect them to get cheaper until bird flu is under control.

Starbucks is rolling back a policy that allows people to hang out there or use the bathroom without buying anything.

Why it matters: The chain implemented the policy in 2018, following a national uproar when two Black men who hadn't purchased anything were arrested at a Starbucks in Philadelphia.

• Starbucks later apologized, reached a settlement with them and trained its workers on racial biases.

The big picture: The shift is part of a new code of conduct at Starbucks cafes.

• Among the changes will be the posting of signs banning discrimination and harassment, violence or abusive language, outside alcohol, panhandling, drug use, and other disruptive behavior.

What they're saying: "By setting clear expectations for behavior and use of our spaces, we can create a better environment for everyone," Starbucks spokesperson Jaci Anderson says.

Between the lines: It's one of the first big changes after the company hired CEO Brian Niccol, who is under pressure to pull off a turnaround amid disappointing sales.

• "Our values, developed with input from hundreds of partners, aren't changing," Niccol wrote Thursday in a message posted on Starbuck's website before the policy change surfaced.

McDonald's on Monday said it is rolling back some of its diversity, equity and inclusion programs.

Why it matters: Backlash against corporate DEI efforts appears to be intensifying ahead of Donald Trump's inauguration.

• The president-elect has been an outspoken opponent of corporate diversity efforts.

Where it stands: In a letter to franchise owners, suppliers and current employees, McDonald's proclaimed its commitment to diversity and inclusion but said it would modify some practices after conducting a "civil rights audit."

• The fast food company cited the Supreme Court ruling in 2023 that ended affirmative action in universities, and the shifting legal landscape.

Zoom in: The company said it would end "aspirational representation goals." That could include specific hiring targets that have come up for criticism in the wake of the Supreme Court decision.

• It will pause "external surveys," which could include participation in the Human Rights Campaign's Corporate Equality Index.

Between the lines: The announcement came just days after anti-DEI activist Robby Starbuck first reached out to the fast food giant, he said in a post on X.

• Starbuck said the company made its decision just three days after he'd told them he'd be doing a story on their "woke policies," he wrote. "As our first corporate flip of 2025 I just want to say, HAPPY NEW YEAR!"
• "Things move faster now because so many companies have hired consultants to pre-plan how to respond to me," Starbuck told Axios in a text, taking credit for the changes.
• His campaigns have led to similar retreats at Walmart, Tractor Supply Company, and John Deere.

Context: This update has been "considered over recent months," the company told Axios in an email from its press account.

• "Our plan has been to communicate our updated approach at the start of the year." The message on Monday noted the "evolving landscape around DEI policies and programs in the U.S."

Flashback: McDonald's has repeatedly hailed DEI as essential in the past.

• "We believe everyone deserves a safe, inclusive and accepting workplace where they can thrive," McDonald's global chief diversity officer Suheily Natal Davis said last year on LinkedIn.

Editor's note: This story has been updated with comment from McDonald's.

McDonald's on Monday said it is rolling back some of its diversity, equity and inclusion programs.

Why it matters: Backlash against corporate DEI efforts appears to be intensifying ahead of Donald Trump's inauguration.

• The president-elect has been an outspoken opponent of corporate diversity efforts.

Where it stands: In a letter to franchise owners, suppliers and current employees, McDonald's proclaimed its commitment to diversity and inclusion but said it would modify some practices after conducting a "civil rights audit."

• The fast food company cited the Supreme Court's ruling in 2023 that ended affirmative action in universities, and the shifting legal landscape.

Zoom in: The company said it would end "aspirational representation goals." That could include specific hiring targets that have come up for criticism in the wake of the Supreme Court's decision.

• It will pause "external surveys," which could include participation in the Human Rights Campaign's Corporate Equality Index.

Between the lines: The announcement came just days after anti-DEI activist Robby Starbuck first reached out to the fast food giant, he said in a post on X.

• Starbuck said the company made its decision just three days after he'd told them he'd be doing a story on their "woke policies," per his post.
• "As our first corporate flip of 2025 I just want to say, HAPPY NEW YEAR!," he posted to X.
• "Things move faster now because so many companies have hired consultants to pre-plan how to respond to me," Starbuck told Axios in a text, taking credit for the changes.
• His campaigns have led to similar retreats at Walmart, Tractor Supply Company, and John Deere.

Context: This update has been "considered over recent months," the company told Axios in an email from its press account.

• "Our plan has been to communicate our updated approach at the start of the year."
• The message on Monday noted the "evolving landscape around DEI policies and programs in the U.S."

Flashback: McDonald's has repeatedly hailed DEI as essential in the past.

• "We believe everyone deserves a safe, inclusive and accepting workplace where they can thrive," McDonald's global chief diversity officer Suheily Natal Davis said last year on LinkedIn.

Editor's Note: This story has been updated with comment from McDonald's.

Fixing America's elevators is becoming a heavy lift.

Why it matters: The U.S. has about 1 million elevators, with Americans traveling about 2.55 billion miles a year altogether on elevators and escalators, according to trade association National Elevator Industry.

The big picture: America's aging elevators are time-consuming and costly to fix.

• The workforce of technicians who know how to fix them is aging.
• And buildings with elevators in need of repair often need to wait ages for replacement parts due to arcane supply-chain issues.

What they're saying: "Everyone is born needing an elevator, and if they're lucky they die needing one too," says Stephen Smith, executive director of the Center for Building in North America, who has studied America's elevator issues.

Threat level: When elevators are out of order, people who are unable to take the stairs or have difficulty doing so are thrust into a crisis.

• The upper levels of tall buildings are effectively rendered useless until repairs can be made.
• Nearly 1.1 million Americans end up in the emergency room every year due to incidents stemming from taking the stairs, according to a study published in 2017 based on data from the National Electronic Injury Surveillance System.
• The number of injuries from elevator trips is miniscule, Smith says: "The real safety problem with elevators is we don't have enough of them."

Reports of inconveniences are widespread:

• In San Jose, California, residents of a supportive housing complex were stranded for more than a week when their second elevator went down, according to the San Jose Spotlight.
• In Fort Lauderdale, Florida, both elevators at an affordable housing complex were out of service for more than a month, stranding elderly residents, according to 7 News Miami.
• In Detroit, which "is full of old elevators," there are "fewer people who know how to fix them" — and that's contributed to construction delays, according to Crain's Detroit Business.

Zoom in: Elevator parts shortages appear to stem largely from two issues: Parts suppliers often prioritize their biggest customers, which in this case happens to be builders in China, where the vast majority of the world's new elevators are installed, according to Smith.

• And parts are often no longer available for aging — and often obsolete — elevators, meaning they often have to be custom made.
• "In some cases, the entire elevator system may need to be modernized or replaced, leading to substantial costs and potential disruptions to building operations," an advisory called The Elevator Consultants reports.

State of play: A patchwork of state regulations and union rules make it laborious for building owners and contractors to comply with current standards, according to Smith. who said the U.S. would benefit from federal elevator standards.

• "The feds have not involved themselves in regulations of the construction industry since Reagan took an axe to it in the 1980s," Smith said.

Yes, but: The good news is that "about 80 percent of reliability issues can be solved by replacing the doors," Joseph Bera, at VP at Schindler Elevators, tells commercial real estate publication Propmodo.

The bottom line: When elevators get stuck in repair mode, the public suffers.

Contributing: Alex Fitzpatrick

Losing weight in the new year won't take the same shape as it did in the past.

Why it matters: The emergence of groundbreaking new weight-loss drugs is transforming how Americans shed pounds.

• Nearly 18 million Americans are expected to be taking versions of GLP-1 drugs by 2029, according to investment bank UBS.

By the numbers: The drugs — which are currently administered in the form of regular injections — may already be reversing America's obesity crisis.

• In a survey conducted from 2021 through 2023, 40.3% of adults 20 and older were classified as having obesity, down from the all-time high of 41.9% from 2017 through 2020.
• The data from the National Health and Nutrition Examination Survey has prompted observers to say that the U.S. may have passed peak obesity.

Threat level: GLP-1 drugs are leaving a trail of disruption throughout the economy.

• Companies like WeightWatchers are struggling to adapt as Americans rethink the concept of dieting. The company's CEO, who apologized for the company's past role in fostering a culture that shamed people for being overweight, recently resigned.
• Bariatric surgery is declining in popularity, prompting some health systems to shutter or cancel investments in facilities.
• Demand for treatments like hip and knee replacements could decline over time as lighter bodies put less pressure on joints, some experts believe.

Yes, but: Price and access remain significant challenges.

• List prices for a month's supply of GLP-1s range from about $936 to $1,349 before insurance, which often doesn't pay enough for people to afford the drugs, according to Kaiser Family Foundation research.
• Widespread shortages have prevented some patients from getting prescriptions filled, though the FDA has said the shortages are improving. Meanwhile, pharmacies are introducing compounded alternatives that critics say allow them to skirt regulatory review.

The big question: Will the U.S. government authorize Medicare to cover weight-loss drugs?

• The Biden administration in November proposed having Medicare cover the drugs beginning in 2026, but the Trump administration will have the final say.
• Opponents of Medicare covering the drugs say the federal budget can't handle the extra costs.

What to watch for: Whether the pharmaceutical companies successfully develop pill versions of GLP-1 drugs. They're currently under development, and the early results look promising.

Bankrupt retailer Big Lots said Friday it struck an 11th-hour deal to save hundreds of its stores via a sale to Gordon Brothers and Variety Wholesalers.

Why it matters: The Columbus, Ohio-based company had about 27,700 employees and more than 1,300 stores in 48 states when it filed for Chapter 11 bankruptcy protection in September.

• Last Friday, the company said its restructuring plans had collapsed and it would have to liquidate all its stores.

Zoom out: Big Lots said Variety Wholesalers would take over somewhere between 200 and 400 locations, which will keep the Big Lots name; and up to two distribution centers.

• Variety operates chains including Roses, Maxway and Bargain Town.

Yes, but: The deal that saves stores gives no guarantee on jobs.

• In a statement, Big Lots said Variety "may" employ current associates at the saved facilities.
• The deal still has to be approved by the bankruptcy court.

Honda and Nissan face a litany of difficult decisions about their competing vehicles and overlapping U.S. manufacturing jobs if they move forward with a merger.

Why it matters: A combination of Honda and Nissan — formerly fierce competitors — would create the world's third-largest automaker by vehicle sales behind Toyota and Volkswagen.

• It would also raise concerns about plant consolidation for two companies that have invested heavily in U.S. manufacturing.

Driving the news: The Japanese automakers confirmed Monday that they are aiming for a merger via a joint holding company.

• They plan to sign an agreement by June 2025 and get shareholder approval by April 2026.
• The tie-up could also bring along Mitsubishi, a longtime partner of Nissan's.

Between the lines: Honda is the bigger and healthier of the two and would appoint a majority of the holding company's board, the automakers said.

• The proposal comes as Nissan is urgently cutting costs, having fallen behind in the global EV race, while both companies are struggling in the bruising Chinese automotive market.
• The companies said in a statement they expect to standardize their vehicle platforms, "optimize" their manufacturing footprints, "create stronger products, reduce costs, enhance development efficiencies, and improve investment efficiencies."

The intrigue: In a press conference in Japan, Honda's CEO was forced to fend off suggestions his company "was being railroaded into a deal by Japanese officials concerned about the survival of Nissan," the Wall Street Journal wrote.

• "This is not a rescue," Honda CEO Toshihiro Mibe said, though the WSJ said he "struggled when asked what attracted him to Nissan as a partner."

Reality check: A deal, no matter the terms, poses vexing questions.

• Which vehicles will survive? Their vehicle lineups are not complimentary — indeed, there's significant overlap. In the U.S., for example, the Honda Accord competes with the Nissan Altima in the sedan segment, while the Honda CR-V competes with the Nissan Rogue in the crossover category.
• Will they cut jobs in the U.S.? Honda has more than 23,000 workers at 12 factories in the U.S., while Nissan has some 15,000 workers at three plants here. The companies said they "anticipate ... optimizing their manufacturing plants." Honda's factories are heavily concentrated in Ohio, Indiana, North Carolina, South Carolina and Alabama, while Nissan's are located in Tennessee and Mississippi.
• How will a merger help them compete in China? Chinese automakers are exerting extraordinary pressure on their competitors in the EV space. A combined Honda-Nissan would have greater scale to compete in China, but Mibe reportedly said at the press conference there wouldn't be any significant merger benefits until 2030.
• Can they avoid culture clash? Honda is known for its high quality standards and commands higher prices than Nissan, which has shown more willingness to discount vehicles in the past.

The bottom line: Making this a good fit will require some heavy lifting.

If Elon Musk can effectively veto a congressional budget deal, imagine how much influence he might wield over more arcane policy issues affecting his pantheon of business interests.

Why it matters: The incoming Trump administration and Congress could soon take action on a litany of regulatory matters and spending affecting the self-proclaimed First Buddy's business empire, including self-driving cars, space and AI.

Catch up quick: Musk on Wednesday played a central role in scuttling a bipartisan House spending bill meant to avoid a government shutdown.

• Axios' Jim VandeHei and Mike Allen called it "a breathtaking preview of the new power centers that will rewire Washington."
• The move came after Trump already appointed Musk to jointly lead the informal Department of Government Efficiency, which is promising to slash federal spending and regulations.

The big picture: The reality that Musk is capable of turning his political influence into action suggests that investors have been right to believe that his companies will benefit from a Trump administration and Republican Congress.

• Musk's net worth has climbed by nearly $200 billion since Election Day to $458 billion, according to the Bloomberg Billionaires Index.

What to watch for: His influence could play out in a variety of ways:

• Tesla — and other autonomous vehicle companies — would benefit from a national regulatory framework for self-driving cars, rather than the patchwork of rules that currently exists.
• SpaceX would benefit from a continued flow — or perhaps even an increase — in federal funding for its interstellar endeavors.
• xAI, Musk's increasingly valuable startup, could be affected by any Congressional action — or, perhaps more significantly, inaction — on AI regulation.

The intrigue: On a personal level, Musk is mired in another stare-down with the Securities and Exchange Commission — this time over his handling of his Twitter acquisition — which will get new leadership under Trump.

• Musk's attorney also claimed last week in a letter that the agency has "reopened" a probe into Neuralink, Musk's neurotechnology startup.

The bottom line: After Musk wielded a cudgel with the federal budget, there's no reason to believe he won't deploy a pencil and eraser to federal regulations.

Japanese automakers Honda and Nissan are reportedly in talks about a merger in a deal that would combine two household names.

Why it matters: Nissan is urgently cutting costs, while both companies are struggling to compete on electric vehicles and in the bruising Chinese automotive market.

Driving the news: Honda and Nissan are weighing a deal in which they would both be placed into a holding company, Japanese newspaper Nikkei reported.

• The two companies would be "joining their resources to better compete against Tesla and Chinese electric vehicle makers in a rapidly changing automobile industry," according to Nikkei.
• The Wall Street Journal confirmed the talks.

What they're saying: Representatives of Nissan and Honda issued nearly identical statements in response to Axios' request for comment.

• Neither company denied the news, saying that they had not announced anything but that they are "exploring various possibilities for future collaboration," as first announced in March.
• The companies are already working together on EV technologies including batteries.

Zoom in: Such a deal could be aimed at stopping the bleeding at Nissan, which recently announced 9,000 global job cuts and plans to shed a fifth of its global production capacity.

• Nissan described the cuts as "urgent measures" in a bid to return to profitability.
• Nissan has struggled to regain momentum following the dramatic ouster of Carlos Ghosn, who became an international fugitive after his escape from custody in Japan five years ago.

Honda's troubles are not as immediate as Nissan's, but the company faces the same competition that's confronting Nissan and the rest of the global auto industry in China.

• Known for its high-quality production and resistance to discounts, Honda recently announced plans to collaborate with General Motors on vehicle development.

The bottom line: "This marks the end of an era," Dunne Insights auto analyst Michael Dunne said on X. "A forever fiercely independent Honda bends to hard new realities. Not because they want to but because they have to."

The Biden camp is scrambling to finalize new business regulations, including rules affecting ticket sellers, automakers and banks.

Why it matters: With barely over a month to go before leaving office, the administration is aiming to follow through on a litany of policy promises.

The latest: A rule banning junk fees was finalized Tuesday after a 4-1 vote by the FTC.

• A rule finalized Monday by the National Highway Traffic Safety Administration requires automakers to implement a new back-seat seat belt warning system by September 2027, and to strengthen front-seat warnings.
• And the Consumer Financial Protection Bureau last week finalized a new rule capping overdraft fees at large banks.

And don't chalk this up to procrastination. Through October 2024 — meaning before this lame-duck session of rules — the Biden administration had published 292 "economically significant" rules, according to George Washington University's Regulatory Studies Center.

What we're watching: That's a large number facing the incoming Trump administration, which has promised to roll back many of the rules implemented over the last four years.

• And Elon Musk and Vivek Ramaswamy — co-leaders of Trump's informal Department of Government Efficiency advisory — have said they plan to nullify "thousands" of federal regulations, Axios Markets co-author Emily Peck has noted.

Yes, but: Some of the new rules are popular.

• For example, Tuesday's junk fees ban — which forces companies to disclose previously hidden fees upfront when consumers are making purchase decisions — has "overwhelming, bipartisan support," according to pollster Morning Consult.

The bottom line: Once new rules are finalized, it becomes politically complicated to reverse them — but that doesn't mean the Trump administration won't try.

The CEO of UnitedHealthcare's parent company says he wants to help fix the U.S. health care system.

The big picture: The comments come nine days after the public killing of UnitedHealthcare CEO Brian Thompson in an act that has sparked a national discussion about the insurance industry.

Driving the news: UnitedHealth Group CEO Andrew Witty — who was Thompson's boss — wrote in a New York Times op-ed published Friday that the company recognizes "the health system does not work as well as it should, and we understand people's frustrations with it."

• "No one would design a system like the one we have. And no one did. It's a patchwork built over decades. Our mission is to help make it work better," Witty wrote.
• He added: "We are willing to partner with anyone ... to find ways to deliver high-quality care and lower costs."
• UnitedHealthcare is a division of UnitedHealth Group.

The op-ed marks Witty's first public comments about the nation's reaction to Thompson's death.

• Luigi Mangione, 26, was charged with shooting and killing Thompson outside a Hilton hotel in midtown Manhattan.
• The public reaction has included widespread support for the alleged killer.

In his op-ed, Witty said UnitedHealth Group is "struggling to make sense of this unconscionable act and the vitriol that has been directed at our colleagues who have been barraged by threats."

• "No employees — be they the people who answer customer calls or nurses who visit patients in their homes — should have to fear for their and their loved ones' safety," he wrote.
• Thompson, he said, "pushed us to build dedicated teams to help the sickest people navigate the health system" and "fought for preventive health and quality health outcomes rather than simply adding ever more tests and procedures."

General Motors CEO Mary Barra said Wednesday the automaker is aligned with President-elect Trump's goal of boosting American manufacturing, despite tensions with him when he was first in the White House.

Why it matters: Trump is expected to pursue a wide range of policies that would directly affect the auto industry.

• Barra is the latest blue-chip CEO to take a publicly warm stance toward Trump since his election, part of a broad shift in corporate sentiment.

Driving the news: In an interview with Axios' Joann Muller at an Automotive Press Association event in Detroit, Barra addressed several policy issues:

• She said there's "ample room" to streamline the environmental permitting process, which Trump has pledged to do.
• On the Biden administration's vehicle emissions targets — which Trump is expected to roll back — she said that "getting to some of the standards that are set right now are going to be challenging."
• She said a federal regulatory framework for self-driving cars — which advocates hope the Trump administration will pursue at Elon Musk's suggestion — would be better than a state-by-state patchwork of regulations.
• "I'm actually looking forward to working with with the president and with the administration, because I think we can grow the importance of the auto industry and manufacturing, and so I think there's a lot that we have in common," Barra said.

Yes, but: Trump has threatened tariffs on Mexico and Canada, where GM builds numerous vehicles, in a move that could increase costs for the company.

• "It could have a very substantial impact" on GM, Barra said.
• But she said she heard that conversations between Trump, Canadian Prime Minister Justin Trudeau and Mexican officials have been productive: "I think they're understanding the implications."

Zoom in: Barra's appearance at the APA event came a day after GM announced that it would discontinue its pursuit of a Cruise robotaxi.

• She emphasized Wednesday that the company is still pursuing autonomous vehicle technology but doesn't want to operate a fleet of robotaxi vehicles, especially considering that "this is one of the biggest technological challenges" of our time.
• "We're taking a different path," she said. "I hope you see we're being proactive in making decisions."

Flashback: During his first term, Trump blasted GM for a wide assortment of reasons, including the company's job cuts, plant closures and China strategy.