Monday morning and you thought this was going to be your week. You have woken up early to exercise and so I’m sorry to inform you that your Peloton bike has been recalled by US regulators, along with 2.2 million others. The news for investors is also not good because, just like Peloton riders, shares in the company have fallen and they cannot get up.

The lowdown

• 🚳 Peloton shares fall after US consumer watchdog orders recall of 2.2 million bikes.

• 🦢 Elon Musk names former NBCUniversal advertising chief Linda Yaccarino as new Twitter CEO.

• 👟 Adidas to sell Kanye West merchandise after all, but proceeds will be donated.

Flex your finance muscle

Section Four of the Fourteenth Amendment

With US lawmakers once again playing chicken with a debt default, Section 4 of the 14th Amendment to the US constitution has become a hot topic.

Some legal scholars argue that the section could be used to prevent the government from defaulting on its debt even if the debt ceiling is not raised. Other legal scholars argue that the section does not apply to the debt ceiling, maintaining that it was intended to prevent the US from assuming the debts of the Confederacy, and that it does not apply to the government's own debts.

The Supreme Court has never ruled on the question of whether the section applies to the debt ceiling and so it's unclear whether it could be used in this way. We may eventually find out or it may just be another tactic to encourage the other side to swerve.

Featured stories

Tiger Global offloading companies to raise cash

Tech-heavy hedge fund Tiger Global is looking to offload some of its $40 billion portfolio of private companies. It has been working with investment banks to line up sales in the secondary market.

Tiger was forced to mark down its venture investments by a third in 2023, resulting in a $23 billion decline in value. Now that valuations have declined and IPO activity has slowed, Tiger is struggling to find an exit to return cash to its backers hence the use of the secondary market.

Tiger Global has been one of the most active investors in the tech sector in recent years. According to Crunchbase data, Tiger invested in 139 startups in the first quarter of 2022 alone. Its investing activities drove valuations to heights that now seem absurd. Possibly the only bigger villain in this respect was SoftBank, and we all know how that’s going.

The content we're consuming today

• The Economist: Six books that tell the history of money ($).

• Odd Lots podcast: Ben Smith on the End of an Era for Digital Media.

• Liberty Street Economics: Bank Funding during the Current Monetary Policy Tightening Cycle.

Off-balance sheet items

• Adam Ragusea’s videos combine cooking with science and history and his recipes are much loved by this newsletter. Given it’s Monday and you may be doing some meal planning, here is one that could set you up for all your work lunches this week.

The bottom line