| Good morning. What a fun weekend of football, baseball, and horror movie marathons. Now to the serious stuff: In case you live in a cave under a rock inside a volcano five miles under the ocean surface, you know the U.S. election takes place next week. But as much as Washington, D.C., dominates the conversation, individual states are dealing with their own unique issues—from tax changes to gig economy laws. This week, we'll take you on a tour of the country to spotlight some of the most interesting biz-related items on the ballot Nov. 3. You can check out the first piece in this series (on pot legalization) below. | | | |  | NASDAQ | 11,548.28 | + 28.71% | | | | S&P | 3,465.39 | + 7.26% | |  | DJIA | 28,335.57 | - 0.71% | | | | GOLD | 1,903.40 | + 25.22% | | | | 10-YR | 0.851% | - 106.90 bps | | | | OIL | 39.78 | - 35.01% | | | *As of market close | - Stocks: Futures fell last night as markets emotionally prepared themselves for the last full week before Election Day. So far this month, the major indexes have posted modest gains (the S&P is up more than 3%) despite *gestures at the state of the world*.
- Global economy: We'll learn a lot this week, says Bloomberg. Central banks in three G7 economies will announce interest rate decisions and countries accounting for 40% of global GDP will shower us with economic growth data.
| |  The COVID Tracking Project | LPT: The lower you set expectations, the less you disappoint. Yesterday, White House Chief of Staff Mark Meadows told CNN "we are not going to control the pandemic," and should instead focus on what we can control, like making vaccines and therapeutics. But with a record 83,000+ new cases reported both Friday and Saturday, a third wave of Covid-19 is already battering the country and threatening an uneven recovery for U.S. businesses. Remember the summer? When daily cases peaked at ~76,000 in July, officials reimposed restrictions on restaurants, public attractions, and gatherings in hard-hit states including California, Florida, Arizona, and Texas. - Airlines reported a drop in already anemic traffic, and Yelp data showed major declines in business reopenings in June and July. (Just one metro area, Buffalo, NY, experienced an increase.)
This third wave, however, is the result of rising infections across a larger swath of the country. Clustered in the Midwest and Mountain West, 15 states added more new cases last week than during any other seven-day period. Last week, Chicago Mayor Lori Lightfoot ordered non-essential businesses to close from 10pm–6am and put restrictions on bar and restaurant service. If the city's outbreak doesn't improve, she'll consider another shelter-in-place mandate. Yesterday, authorities in El Paso, TX, asked residents to stay home for a couple weeks following a 300% increase in hospitalizations. Plus, people are worried how well Covid will hit it off with the flu. Shoppers are raiding grocery stores and stockpiling supplies in case of a fall/winter surge. Around the world… Governments are hoping to avoid blanket shutdowns as their own second waves spiral. In Europe, where cases have more than doubled in the last 10 days, Italy is requiring bars and restaurants to close early beginning today—its most intense restrictions since lifting lockdowns this spring. Spain enacted a nightly curfew yesterday and will allow local authorities to restrict regional travel. And lockdowns across Britain are affecting nearly 6 million people. - Like the U.S., some countries are dealing with protests against new restrictions.
Big picture: The WHO said the Northern Hemisphere is at a "critical juncture" as cases and deaths rise. For the U.S., this third wave will dominate the national conversation heading into next week's election. | |  Chesnot/Getty Images | The Chinese billionaire behind Alibaba and Ant Group may have officially retired from his corporate roles, but he's still got plenty of opinions... ...which he shared during a speech at the Bund Summit in Shanghai on Saturday. Some choice cuts: On Ant's IPO: It's going to be the "biggest in history," according to Ma. Ant, the Chinese fintech giant that could be valued at $300+ billion, is projected to raise more than $30 billion in its upcoming public listing; that would top the $29.4 billion raised by Saudi oil company Aramco last December. More on Ant's IPO: Ma didn't call NYC a ghost town, but he did say it was a "miracle" that such a big tech IPO would take place in Hong Kong and Shanghai—not on Wall Street. On financial regulations: Ma called the current system of global regulations a "club of old people" and said China should overhaul its banking structure to encourage more innovation. As for digital currencies? Ma sees lots of potential. | |  Francis Scialabba | The only thing hotter than the city of Tampa Bay right now? ESG funds. Investors have poured a record $22 billion into ESG exchange-traded funds this year, nearly triple 2019's total, according to Bloomberg. What's ESG? It stands for environmental, social, and governance issues—and helps you determine the corporations you'd bring home to mom. Identifying companies rated highly on ESG metrics is an increasingly popular way for investors to deploy their money "responsibly." But the honeymoon is over First, the SEC doesn't regulate how companies apply the ESG label, so it's kind of like a farm calling itself "organic" without having to run it by anyone. These inconsistencies have led to awkward groupings, like fossil fuel company ExxonMobil's inclusion in one of BlackRock's ESG funds. And short-sellers smell blood, the Financial Times reports. These investors, who bet on a company's share price to fall, think the hype around ESG is inflating share prices—which presents an opportunity to make some money. Two companies focused on environmental issues, Nikola and Loop Industries, have recently been attacked by short-seller Hindenburg for exaggerating their tech capabilities. | |  | Trying to understand investing today can feel a bit like climbing Mt. Everest—without a sherpa. So we teamed up with our friends at Fidelity to help guide us—and other young investors out there—on everything from investing trends to economic shifts to the pandemic's effect on the market. Introducing, Fresh Invest: What to Know When Investing Today—a limited podcast series hosted by our very own Alex Lieberman, CEO of Morning Brew (you know, the media company behind this here newsletter). Each week, Alex and a guest from Fidelity will dig into an oh so fresh topic as it relates to investing today, and answer some of the biggest questions on the minds of young investors. The first episode is coming this Thursday, 10/29, and we recommend subscribing right here so you're ready when it drops. Now, go polish those earbuds, tell all your best buds, and we'll see you Thursday with some of the freshest investing knowledge around. Subscribe to the Fresh Invest podcast here. | |  Francis Scialabba | Each day this week, we'll fill you in on state election topics that have been overshadowed by the national presidential race. Let's kick off the series by exploring this year's marijuana legalization efforts. - FYI: We are serious business journalists who are above weed puns. Any suggestion otherwise stems chiefly from slander.
Next week, residents of five states—Arizona, Montana, New Jersey, South Dakota, and Mississippi—will vote on various legalization measures. The state of play - Eleven states plus D.C. have legalized recreational pot. Thirty-three allow medical marijuana.
- Legalization is increasingly popular among U.S. voters. According to Pew, 91% of adults think it should be legal either for medical or recreational use.
Voters may be eyeing the economic windfall that legalization can provide. Cannabis sales in states where it's legal totaled about $15 billion last year, and that's projected to double by 2024, per BDS Analytics. And when it's legal, it's taxable, meaning more $$$ for state coffers. Zoom out: You can accuse us of being coastal elites, but New Jersey is the state to watch. Per CNN, if NJ votes to legalize, neighbors New York and Pennsylvania could be next. | | | Even if it weren't the week before Election Day, we'd still have our hands full with about a third of the S&P 500 reporting earnings and the first reading of Q3 GDP. Monday: NASA is announcing an "exciting new discovery" about the moon; Senate confirmation vote for Supreme Court nominee Amy Coney Barrett Tuesday: Earnings (Microsoft, Caterpillar, Pfizer, AMD, BP, Crocs) Wednesday: Senate hearing on Section 230, feat. testimony from Zuck, Jack Dorsey, and Sundar Pichai; earnings (Boeing, UPS, Gilead, Pinterest) Thursday: Q3 GDP data; earnings (Apple, Alphabet, Facebook, Twitter, Starbucks, Activision Blizzard); Halloween Eve Eve Friday: ExxonMobil earnings; The Mandalorian returns for Season 2; new Ariana Grande album; Halloween Eve Saturday: Halloween | | - Dunkin' Brands is in talks to sell itself to private equity-backed Inspire Brands for about $9 billion, per the NYT. Inspire owns other chains including Arby's, Buffalo Wild Wings, Sonic, and Jimmy John's.
- PG&E began to shut off power to about 361,000 California customers over wildfire risks.
- President Trump's trade war with China did not achieve its goal of reversing the downward trend in American manufacturing jobs, according to the WSJ.
- Lee Kun-hee, the Samsung chairman who transformed the South Korean tech conglomerate, died at 78.
- Multiple aids to VP Mike Pence tested positive for Covid-19 this weekend.
| | | "Spooky" applies to Halloween, not your home. SimpliSafe has you protected with 24/7 professionally monitored home security that experts trust. Get 25% off + a free HD camera when you purchase a new system today.* Falling for faulty lash extensions this fall? Thrive Causemetics's Liquid Lash Extensions support lash health and help stimulate longer-looking lashes over time—for a fraction of what you'd expect to pay. Get 15% off your best lashes today.* Top Essentials rec: Rachel Cantor, the writer of our Essentials recommendations newsletter, knows exactly what we need before we need it. Like GOTs: going-out throws for pandemic-era outdoor dining. Here are a few options. Dive back into the week: *This is sponsored advertising content | | | Every Monday, we curate a handful of balanced resources about a hot-button business issue and encourage you to discuss with friends, family, or coworkers. Today's topic: During last week's presidential debate, "wages" was the most-Googled issue in 44 states. While Joe Biden has planted himself firmly on the side of a $15 federal minimum wage, President Trump is arguing for a state-specific floor. Which side are you on? - A map of minimum wages across the U.S. (EPI)
- How many workers will a $15 wage help...and hurt? (NPR)
- How a higher minimum wage could help the economy. (NBC)
- Some economists are skeptical of a one-size-fits-all approach. (AEI)
- The case for regional minimum wages. (Third Way)
| | |  Sometimes you edit a crossword puzzle and think, "wow that's good." Today's, created by Anika Arvanitis and titled "Odd Sand Ends," is one of those crosswords. Make sure you give it a try. Of course, everyone has a genius crossword or two inside them. If you're inspired to write your own Brew Crossword, check out the guidelines here and please submit! | | | You only need 5 more referrals to receive Morning Brew stickers. If there's one thing we know about laptops, it's that they hate being naked. Get your comp some fresh Morning Brew stickers. 
Hit the button below to learn more and access your rewards hub. Click to ShareOr copy & paste your referral link to others:
morningbrew.com/daily/r/?kid=8386977e | | | ** A Note From Fidelity Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Morning Brew and Fidelity Investments are independent entities and are not legally affiliated. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 | | |
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