Good morning and Happy National Coffee Day. For free coffee today, bring a reusable cup into Starbucks or show up at any Wawa. For a free newsletter, just keep on reading. —Neal Freyman, Max Knoblauch, Jamie Wilde, Sherry Qin | | | |  | Nasdaq | 14,546.68 | | | | | S&P | 4,352.63 | | | | | Dow | 34,299.99 | | |  | 10-Year | 1.543% | | | | | Bitcoin | $41,796.58 | | | | | Amazon | $3,315.96 | | | | *Stock data as of market close, cryptocurrency data as of 5:00pm ET. Here's what these numbers mean. | - Markets: Stocks crumbled, and the tech-focused Nasdaq posted its worst day since March due to a spike in bond yields. We'll unpack that in just a bit.
- Economy: Treasury Secretary Janet Yellen said the US needs to do something about the debt ceiling by October 18, or else risk defaulting on its loans shortly after. Senate Republicans blocked a Democrat-proposed bill to raise the debt ceiling on Monday, which will likely force the Dems to tack on the debt ceiling measure to their budget bill.
| | | Spencer Platt/Getty Images 10-year Treasury yields rose for their sixth straight day on Tuesday to their highest level since June. And while the 10-year note may not be the main conversation topic in your group chat, investors pay close attention to it as a benchmark for borrowing costs and future economic growth. - Quick note: Bond yields move inversely to prices, so yields increase when investors sell bonds.
So what is the 10-year trying to tell us? By selling off bonds, investors are preparing for the Fed to wind down its economic stimulus measures later this fall and an interest rate hike in the not-too-distant future. Surging yields also signal that higher inflation could last longer than expected, a reality that Fed Chair Jerome Powell acknowledged in remarks on Capitol Hill yesterday. (Don't look now, but used car prices are on the rise again, too.) Tech companies were hit the hardest Despite all three major indexes tumbling yesterday, one was not like the rest. The Nasdaq, which is more focused on the tech sector than the S&P or Dow, got bruised the most. - Wall Street's top tech names, such as Nvidia, Facebook, and Amazon, lost more than $200 billion in market value.
Rising yields don't necessarily spell doom for stocks. In fact, right now they appear to be signaling that a more "normal" economy—one that doesn't require unprecedented government stimulus—is arriving. But high-growth tech stocks can take a hit when yields spike. These companies are expensive relative to their current earnings, and are priced based on their growth prospects five or 10 years down the road (see: Tesla's mammoth $770 billion market cap). Rising yields, and the higher returns they offer investors, can make bonds more attractive relative to riskier stocks. Big picture: Some market watchers were concerned about a choppy September, and they've been proven right—the S&P is on pace for its first monthly loss since January.—NF | | | Francis Scialabba If you're not experiencing an energy crisis, are you even a country in 2021? As the UK confronts its own gas shortages, a widespread energy crunch in China has led to power cuts and forced a chunk of its muscular manufacturing sector offline. Goldman Sachs became the latest bank to cut China's GDP forecast on account of the energy shortages. It calculates that up to 44% of the country's industrial activity has been affected. What's going on? A couple of things. - Beijing has instituted tougher emissions standards to curb the country's coal use, which accounts for more than 70% of China's electricity generation. Current production is not meeting demand.
- The soaring price of coal has made producing electricity an unprofitable endeavor, so utilities aren't exactly rushing to make more.
Why it matters: Add China's electricity shortage to the laundry list of problems crimping the global supply chain, which is about to come under even more pressure ahead of the holiday shopping season.—SQ | | | Amazon At its fall product event on Tuesday, Amazon announced its first home robot: a distinguished little gentleman named Astro that looks kind of like a Kindle glued to a travel toaster oven. Astro can keep a watchful eye on pets, children, and would-be home invaders, all while topping out at speeds of 2 mph. Users will be able to set boundary limits on which rooms Astro can enter, and even make it beatbox. It's basically a very slow guard dog that can't use the stairs and also has a cupholder. Astro is $999 for Day One purchasers, and will cost $1,499 once widely released. Other products announced at the event: - The Always Home Cam: a security drone that will fly around your home when you aren't there and have a will-they-won't-they thing with Astro, probably
- The Halo View: a fitness band à la Fitbit
- Hey Disney: a Disney-themed voice assistant working alongside Alexa
- Alexa Together: a subscription service aimed at helping users care for elderly loved ones
- A $60 smart thermostat to take on Google's Nest—MK
| | | | Have no fear, your favorite food isn't in jeopardy. Quite the contrary, in fact, thanks to Piestro. Piestro is the robotic pizzeria you knead (sorry) to know about. Not only does it make artisanal pies at a fraction of the cost of traditional pizzerias, it also thinks you should join the pizza revolution as an investor. Seems that plenty of others are excited about Piestro's potential too, considering their robots have received $580M in pre-orders via commercial contracts. That's a lotta cheese...and a delicious investment opportunity. Your chance to invest ends TOMORROW, 9/30. Get in on the future of artisanal pizza with Piestro here. | | | Candidates stand in line before taking the Rajasthan Eligibility Exam for Teachers. Vishal Bhatnagar/NurPhoto via Getty Images Stat: India shut down the internet for more than 25 million people across the state of Rajasthan on Sunday. Why? To prevent cheating at a time when hundreds of thousands of candidates took a standardized test to become eligible for teaching roles. Quote: "You have acted to make our banking system less safe, and that makes you a dangerous man to head up the Fed and that is why I will oppose your renomination." At a Senate hearing yesterday, Sen. Elizabeth Warren told Fed Chair Jerome Powell to his face that she doesn't think he deserves another four years in the position. President Biden must decide whether to reappoint Powell, who has broad bipartisan support, before his term expires in February. Read: Is going to the office a broken way of working? (New Yorker) | | | MacArthur Foundation Every year, the MacArthur Foundation awards $625,000 apiece to 25 individuals doing remarkable things in their respective fields—and no field's off limits: Winners range from poets to humanitarians to, in Miele's case, a designer at Amazon. In a nutshell, Miele creates accessible technology for blind people like himself. When he was four, he was blinded by a neighbor who poured sulfuric acid on him, and he's been advocating for the blind community since. "I want to be famous for the right reasons, for the work I've done, and not for some stupid thing that happened to me 40 years ago," he told the NYT in 2013. Here are some of the amazing projects Miele has led: - Fire tablets that are Braille-compatible, and a "Show and Tell" feature on Echo devices that can identify different foods and pantry items
- "Tactile maps" for the Bay Area's BART train—known for ferrying tech workers to and from San Francisco and the suburbs—that users can explore with their fingers and an audio smart pen
- "YouDescribe," a platform that crowdsources audio descriptions for popular videos
+ Read Miele's backstory here, and learn more about the 24 other 2021 MacArthur fellows here.—JW | | - US home prices continued to stay white hot, jumping the most ever in July from a year earlier.
- Japan is lifting its Covid-19 state of emergency this week to juice the economy as cases decline.
- 131 federal judges in the US violated the law by overseeing cases involving companies they or their families had invested in, according to the WSJ.
- Microsoft CEO Satya Nadella said former President Trump's threat to ban TikTok, and the ensuing acquisition talks by Microsoft, was the "strangest thing I've ever sort of worked on."
| | Word Search: Today's theme? None other than Broadway. Play the puzzle and try not to sing along. National Coffee Day Trivia Can you identify the following six espresso drinks?  | | | Did you know? Next year's Met Gala theme is "Newsletters." And if you want to rock the same look as this definitely not not Photoshopped pic of Kim K., we're here to make your dream a reality. To get Brew joggers, all you need to do is refer 5 people to the Brew this week using your unique link. The details: - Regardless of how many people you've already referred, you need to get at least 5 new confirmed referrals by October 3rd to win joggers.
- Only the first 2,000 people to hit this threshold will get joggers, so lock them in now.
- Only participants with a US address can win.
Grab your joggers here. | | | 1. Americano
2. Cappuccino
3. Irish Coffee
4. Macchiato
5. Affogato
6. Mocha | | | Written by Neal Freyman, Max Knoblauch, Sherry Qin, and Jamie Wilde Was this email forwarded to you? Sign up here. WANT MORE BREW? Industry news, with a sense of humor → - Emerging Tech Brew: AI, crypto, space, autonomous vehicles, and more
- HR Brew: analysis of the employee-employer relationship
- Marketing Brew: the buzziest happenings in marketing and advertising
- Retail Brew: retail trends from DTC to "buy now, pay later"
Tips for smarter living → - Money Scoop: your personal finance upgrade
- Sidekick: lifestyle recs from every corner of the internet
 Podcasts → Business Casual and Founder's Journal Accelerate Your Career → - MB/A: virtual 8-week program designed to broaden your skill set
| ADVERTISE // CAREERS // SHOP // FAQ
Update your email preferences or unsubscribe here.
View our privacy policy here.
Copyright © 2021 Morning Brew. All rights reserved.
22 W 19th St, 8th Floor, New York, NY 10011 | |
on the market and ready to break your 
habit while eliminating bloat and boosting metabolism. No wonder supplies are low. 
No comments:
Post a Comment