| Good morning. On some slow news days we're left wondering whether we should cover a 2% bounce in lean hog futures. Yesterday was not one of those days. | | | |  | NASDAQ | 11,516.49 | + 0.33% | | | | S&P | 3,443.14 | + 0.47% | | | | DJIA | 28,308.49 | + 0.40% | | | | GOLD | 1,913.00 | + 0.07% | | | | 10-YR | 0.797% | + 2.60 bps | | | | OIL | 41.51 | + 1.67% | | | *As of market close | - Housing: Single-family homebuilding hit its highest level since 2007 in September, cementing the housing market as the MVP of the economic recovery.
- Crypto: Bitcoin topped $12,000 for the first time since August, according to CoinDesk. Cue everyone scrolling to the fourth page of their phone's home screen to open Coinbase.
| |  Francis Scialabba | Yesterday, the U.S. Department of Justice plus 11 state attorneys general filed an antitrust lawsuit against Google and every single one of its nap pods. This is big. The U.S. government hasn't brought an antitrust case of this size since it tried to chop up Microsoft in 1998. The government's case The DOJ says Google abused its market power to stifle competition. - Remember, it's not illegal to be a monopoly in the U.S.—otherwise, why would we have a board game celebrating them? What is illegal is using that market dominance to box out rivals.
- The DOJ argues that Google illegally used contracts to ensure its search engine was the default option pre-loaded on cell phones, including Apple's iPhones and its own Androids, blocking competitors.
The response from Mountain View: Google said in a blog post that the DOJ's case is "deeply flawed" and, if successful, would hike up phone prices and force inferior search products onto consumers. What it all means: If you're an antitrust hawk or someone Sundar Pichai once cut off in traffic, you may be getting tingly. But Google potentially getting cut down to size just isn't going to happen anytime soon. This case will likely take more than a year to go to trial—if it isn't settled before then. - Experts also say we could be in for an outcome similar to what happened in the EU: antitrust case opened → heavy fines levied → Google continues to dominate.
Still, this is just one front in a broader U.S. v. Google scuffle. Texas Attorney General Ken Paxton, for one, is crossing the t's on a complaint about Google's commanding presence in the digital advertising market. Bottom line: It's unclear whether or not this lawsuit is the beginning of the end of Google as we know it, but it's a historic day for the U.S. government's relationship to big business. + Learn more: There's no better time to refresh your knowledge of Big Tech's recent tangle with lawmakers. Check out the Brew's guide to antitrust and our piece on Google. | | | Yesterday, House Speaker Nancy Pelosi continued stimulus negotiations with the White House. Yes, they've been doing that since July, but yesterday was special because: - It was exactly two weeks from Election Day.
- It was the deadline Pelosi set last weekend for a stimulus deal before Election Day.
But as we learned in college, deadlines can be flexible if you just ask. Pelosi said lawmakers needed to get "terms on the table" and can finish the bill later this week. White House Chief of Staff Mark Meadows said "big differences" remain, but an agreement could arrive before you hit the pumpkin patches this weekend. Those differences? After working through details around national Covid testing, remaining hang-ups include aid for state/local governments, business liability protections, and total price tag. - Yesterday, Trump said he wants to go bigger than Democrats' $2.2 trillion proposal, but GOP lawmakers are still averse to four-comma price tags.
Senate Majority Leader Mitch McConnell did say that if the House passes an agreement, he'll put it to a vote "at some point"...but carefully avoided a hard commitment before Nov. 3. | |  Giphy | You can probably guess how Netflix's Q3 earnings went based on your own 2020 experience. Starting in March, you spent more time with the streaming service than with your closest friends, but by July, you started to figure out quar life without Jim Halpert and Dustin Henderson. Netflix lost momentum last quarter, missing Wall Street expectations on earnings as well as subscriber additions. - Analysts had targeted 3.3 million new paying subscribers. Netflix only brought in 2.2 million.
- Netflix did eke out a beat on revenue, raking in $6.44 billion versus an expected $6.39 billion.
Big picture: Those so-so numbers may be the result of controversy over Netflix original Cuties, which conservative critics said promoted child exploitation. Competition from Disney+, NBCUniversal's Peacock, and live sports could also have rained on Netflix's parade. But the company may bounce back in Q4, with winter approaching and rising Covid-19 infections pushing us all back into our living rooms. | |  | We were so young back then. We'd LOL about how someone always turns on a jackhammer when it's our turn to talk. Or how our background was accidentally our cat's butt for a couple of meetings. But now we're all video call vets, haggard and harried, and it's time to upgrade our video conferencing tech. To what? To Cisco Webex. Webex provides simple and reliable video communication tools that give you and your team (or your family, softball roster, or classmates) the power to connect and collaborate securely. "Securely" being the keyword there—because if there's one thing a budget meeting doesn't need, it's someone sneaking in and dancing to techno music dressed as a banana. So whether you're the head of your household or the head of state, Webex is the best choice for video conferencing and collaboration. Check out Cisco Webex right here. | |  GMC | Starting next year, if your friends roll up in a new Hummer, they can skip the guilt screening of An Inconvenient Truth. GM unveiled the new electric Hummer last night, which features a 350+ mile range, "crab mode" for diagonal off-road movement, driver-assist software, and a digital cockpit system designed with Fortnite creator Epic Games. Under the GMC brand, GM will pump these out at its Detroit-Hamtramck plant, recently renamed "Factory Zero." Once the site of the original Dodge factory, it's now the cornerstone of GM's zero-emission, zero-crash, zero-congestion roadmap. 1 down, many to go By 2023, GM plans to unveil at least 20 electric vehicles. To get there, it's set aside $4.5 billion to upgrade factories for EV production, including… - $2.2 billion for Factory Zero, which will also produce the electric Cruise Origin
- $2 billion to reconfigure a Tennessee plant to produce the Cadillac Lyriq
- $300 million for a plant in Orion Township, MI
Big picture: The new Hummer is the crown jewel of GM's electric collection. It also gives the legacy automaker a challenger against the upcoming Tesla Cybertruck and the electric Ford F-150. | | | Companies that make cleaning supplies continue to impress, because whereas before the pandemic people used to hang out, now we just...wipe counters all day. - P&G, the maker of Tide, reported its biggest global sales increase in 15 years last quarter and raised its annual sales forecast.
- Reckitt Benckiser, a P&G rival that makes Lysol, also revealed a bumper quarter yesterday. (Interesting note: RB also said sales of its condom brand Durex rebounded in a big way after lockdowns eased).
The big question: Is nonstop cleaning here to stay? These execs say yes. P&G CFO Jon Moeller said "there is some stickiness to new habits that are being formed." And the CEO of Albertsons, a major grocery chain, told Bloomberg there was "a lot of steadiness" in shopping patterns. Bottom line: The pandemic has led to a stunning turnaround for consumer goods companies that were recently considered dinosaurs. | |  Kanye's Instagram / Toby Howell Photoshop | You're probably wondering, "How in the world did Kanye and Elon earn those ultra-comfy Brew joggers?" We're glad you asked—through the magical power of photoshop referrals. All you need to snag a pair for yourself is to refer five friends to the Brew this week using your unique referral code. - Quick note: It doesn't matter how many referrals you currently have—you need to refer five additional people this week.
- Also, U.S. only.
Claim your joggers today. | | - Snap stock jumped more than 20% after hours when the company reported a surprise Q3 profit. It also hinted that the StopHateForProfit ad boycott of FB allowed it to capture more business.
- Mike Bloomberg has held talks to take his media company public via a SPAC controlled by hedge fund manager Bill Ackman, the NY Post reports.
- The fiancee of journalist Jamal Khashoggi and a human rights organization accused Saudi Crown Prince Mohammed bin Salman of ordering Khashoggi's killing in 2018, per a lawsuit filed yesterday.
- U.K. researchers are preparing for a "human challenge" study for developing a coronavirus vaccine, which means they'll infect healthy young people with the virus as part of the trial.
- SSC's Tuatara became the world's fastest car, hitting 331 mph.
| |  | The biggest question of 2020: Who will be leading the U.S. in 2021? UBS has been hosting a series of virtual events with policymakers and their own market experts to provide insight into how the election can affect you. While the long-term outlook on the economy remains positive, the top 3 election concerns are Covid-19, healthcare, and you guessed it, the economy. UBS's final must-watch event is Thursday, October 29—but you can watch the previous discussions on-demand now. | | | Business breakdown: The New York Times is one of the few bright spots in media. Here's a fun, visual dissection of how they're not failing. Incredible election resource: There is no 2020-related question Ballotpedia can't answer. Really good ideas: Morning Brew readers shared their favorite purchases they've made for under $10. The Word Market: Head to Narnia, Wonderland, or Dictionopolis with the 100 best fantasy books. Pics or it didn't happen: *This is sponsored advertising content | | | Washington, Franklin, Arlington, Centerville, Lebanon. Those are the top five names in what list? | | |
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