Good morning. Yesterday had enough news for 10,000 emails, but before we get to all that, here's a game we saw on the internet: Name a celebrity (real or fictional) and their archnemesis. For example, Mr. T  Mr. Coffee and Keira Knightley John Daly. We thought of a few more: - Clippy Chris Stapleton
- Winona Ryder Adam Driver
- Olivia Wilde Tame Impala
Send us some of the duels you come up with. —Matty Merritt, Jamie Wilde, Neal Freyman | | | |  | Nasdaq | 11,418.15 | | | | | S&P | 3,923.68 | | | | | Dow | 31,490.07 | | |  | 10-Year | 2.970% | | | | | Bitcoin | $29,198.53 | | | | | Target | $161.61 | | | | *Stock data as of market close, cryptocurrency data as of 7:00pm ET. Here's what these numbers mean. | - Markets: Yesterday, the stock market imploded like an already peeved person who was told to "calm down." The Dow posted its biggest one-day drop since 2020, and just eight companies in the S&P 500 closed higher. The dramatic sell-off was sparked by Target's earnings, which showed that soaring costs are putting the squeeze on margins (it didn't help that Walmart said the same thing the day before). Target's stock suffered its worst drop since the market meltdown of 1987.
- Economy: While it's bad news for anyone with a stock portfolio, dismal retail earnings might be a hopeful sign for the Fed in its fight against inflation. Both Target and Walmart execs said that consumers were spending less on merchandise and big-ticket items like TVs, which is the type of demand slowdown that could cool prices for goods in the future.
| | | | ![Elon Musk tweet "Exxon is rated top ten best in world for environment, social & governance (ESG) by S&P 500, while Tesla didn]() Elon Musk Tesla has been booted from the S&P 500 ESG Index, and Elon Musk thought the decision was bad. After the news broke, he went on a Twitter tirade, calling ESG "an outrageous scam" that "has been weaponized by phony social justice warriors." What is ESG? Short for environmental, social, and governance, it's an increasingly popular investment strategy for socially conscious investors to evaluate companies that align with their values. Assets in ESG funds hit $2.74 trillion at the end of last year, according to Morningstar. This particular ESG index, which is controlled by the S&P Dow Jones Indices, ranks companies in the S&P 500 based on criteria like whether or not they release sustainability reports, use renewable energy, pay fair wages to their employees, have ethical supply chains, and have a diverse board of directors, among other metrics. During its annual rebalancing, the S&P said Tesla didn't make the cut for inclusion this year. Why? Margaret Dorn, the S&P's head of ESG indices for North America, wrote in a blog post that Tesla lacked "low carbon strategy," amassed complaints of poor working conditions and racial discrimination in its Fremont factory, and mishandled investigations into injuries and deaths involving the car's Autopilot feature. Musk calls hypocrisy As part of his barrage, Musk argued that electric-vehicle leader Tesla has done "more for the environment than any company ever!" while noting that Exxon Mobil, which literally extracts oil from the ground, was rated in the top 10 for ESG. And a growing number of ESG critics think Musk has a point, arguing that the climate pledges and disclosures measured by the index lack the teeth to do anything but get them on a fancy list. - For example: JPMorgan, the largest lender to the fossil-fuel industry, remains on the index this year. Same with Amazon, which has had its own spats with the National Labor Relations Board.
Even influential ESG proponents are questioning whether the approach has lived up to its principles. BlackRock, the largest asset manager in the world, said it won't support as many climate disclosure proposals this year because most are pretty arbitrary. Zoom out: Musk's misery has companies. Delta Air Lines, Home Depot, Meta, Johnson & Johnson, and Warren Buffett's Berkshire Hathaway have all been left off of the S&P's ESG index.—MM | | TOGETHER WITH FACET WEALTH | | You've got your IRA, your 401(k), and even some investments, but you're still not 100% sure you're making the right financial moves for you. Facet Wealth believes financial planning should be highly personal—not recycled cookie-cutter advice. That's why you'll receive the right tech tools and customized, unbiased advice from your own CERTIFIED FINANCIAL PLANNER™ professional (the industry gold standard) to help you make choices suited to your life. On top of investment strategies and retirement planning, Facet advises on the more personal aspects of your funds too, like understanding your company's stock options, saving up to start your dream biz, and much more. No wonder they're one of the fastest-growing financial services companies, scoring a 95% customer satisfaction rating. The future of financial planning has arrived, and it's right on the money. Team up with Facet Wealth here. | | Eduardo Munoz Alvarez/Getty Images  "Pharma Bro" is out of prison. Yesterday, Martin Shkreli was released from prison early and transferred to a halfway house. Shkreli had been serving time for securities fraud, but he became infamous for buying a lifesaving AIDS drug and hiking the price more than 5,000%. Don't expect a second act, at least in pharma: He's been banned from working in the industry ever again.
 Melvin Capital is shutting down. The hedge fund that was one of the main villains during the meme stock boom is winding down its funds after an "incredibly trying time," founder Gabe Plotkin told clients. Melvin had a short position on GameStop when its stock went to the moon in early 2021, leading to losses of 55%. And it hasn't fared much better in this year's brutal market, falling 23% through April.
 War in Ukraine update: Nearly 1,000 Ukrainian soldiers defending Mariupol's Azovstal steelworks have surrendered, Russia said. A Russian soldier pleaded guilty to killing an unarmed civilian in the first war crimes trial since the war in Ukraine began. And Sweden and Finland formally applied for NATO membership, but Turkey is trying to slow down the process.
| | Alex Grimm/Getty Images The US men's and women's soccer teams will receive the same salaries and bonuses, pool prize money for World Cup performances, and share revenue for TV and sponsorships under a landmark agreement announced by the US Soccer Federation yesterday. It's six years in the making. After hoisting their third World Cup trophy in 2015, members of the US women's national team (USWNT) wondered why they were bringing in less $$$ than their less successful male counterparts, and they alleged wage discrimination against US Soccer in a civil rights complaint the next year. They ramped up the pressure in 2019 with a lawsuit, which was resolved with a $24 million settlement three months ago. The new World Cup pay arrangement is especially notable—the US' soccer federation says it's the first country in the world where national teams will pool their World Cup prize money and split it. That will likely lead to the men handing over some proceeds to the women, given the huge discrepancy in FIFA payouts between the two tournaments: - When the US women won the tournament in 2019, they received a total of $4 million.
- Men's teams received $8 million just for qualifying for the 2018 World Cup.
Looking ahead…advocates hope this agreement will fuel growth in women's soccer around the globe. But at least in this country, it has "changed the game forever," US Soccer President Cindy Parlow Cone said.—NF | | "Toxic"/Jive Records via Giphy K–12 school districts in the US haven't spent 93% of the $122 billion in Covid relief they were awarded last year, the WSJ reports. And the country's second-largest district, in LA, hasn't spent a single dime of its $2.57 billion booster. They better get going. The funds—the most the federal government has ever disbursed to schools—will go poof if they aren't allocated by September 2024. So what's the hang-up? It's a little more nuanced than "the dog ate my stimmy check": - Hiring full-time staff with the money isn't really an option, since it has to be spent in a limited time frame. When it dries up, so will any new workers' salaries.
- Hiring's tough all-around because of workforce shortages—but it's particularly bad in schools.
- Supply chain issues mean infrastructure projects, such as installing ventilation systems, are slow-going.
- LA in particular is still racing to spend several hundred mil left over from previous stimulus packages.
Looking ahead…32 organizations emailed the professor—err, sent a letter to Education Secretary Miguel Cardona—for a two-year extension for districts to spend the funds. Federal officials are accepting requests from districts directly, too.—JW | | Francis Scialabba Stat: According to new research, the biggest contributor to surging housing prices wasn't a speculative bubble…or lower interest rates…or federal stimulus. It was actually you banging away on your keyboard in your PJs. The shift to remote work explains more than half of the 23.8% increase in US home prices since December 2019, per a new study for the National Bureau of Economic Research. Quote: "We have no idea how cryptocurrency works (even after having it explained to us repeatedly), don't own it, and don't follow its market." Jeff Schaffer, the director of a Super Bowl commercial for crypto exchange FTX, said that he and the star of the spot, Larry David, are clueless about crypto and "just set out to make a funny commercial!" During the recent crypto crash, some of the biggest celebs who hyped cryptocurrencies have gone silent, the NYT reports . Read: I had a passionate love affair with a robot. (Dazed) | | History game: Can you place the events in the correct order? Find out here. Life lessons from Taylor: T-Swift gave the commencement address for NYU's Class of 2022 yesterday at Yankee Stadium. Read the full thing here. If you haven't applied for Morning Brew Leadership yet, now's the time. Why? Because the founding cohort gets $500 off the regular tuition price. This eight-week virtual program will change the way you think about leadership, so download the syllabus now to learn more. Award alert: This Allure Best of Beauty Award-winning serum will have you saying farewell to $200 anti-wrinkle creams. A bottle of The INKEY List's 1% Retinol Serum sells every 38 seconds—get yours for 10% off with code BREW10.* Dabble and diversify: eToro Smart Portfolios let you invest in multiple crypto assets at once using curated collections. Rebalances are automatic, so you can invest, kick back, and relax. Score an extra $50 when you invest $500.* *This is sponsored advertising content. | | - President Biden invoked the Defense Production Act to help alleviate the country's baby formula shortage. Producers of baby formula ingredients will need to prioritize sending those supplies to formula manufacturers ahead of other customers' needs.
- A recount is expected in the GOP Senate race in Pennslvania, with Dr. Mehmet Oz and former hedge fund CEO David McCormick basically tied after an initial tally.
- UK inflation jumped 9% to a 40-year high last month. The Bank of England's governor warned of an "apocalyptic" rise in global food prices due to the war in Ukraine.
- A large chunk of North America is at risk of blackouts this summer due to drought, supply chain disruptions, and other pressures, according to the US' electric grid regulator.
- The "unretirement" trend picked up steam. As of April, 3.3% of workers who were retired a year earlier are back to work.
| | Brew Mini: "Word with Beastie, Backstreet, or Beach in music" (four letters) is your clue of the day. Play today's puzzle here. Three headlines and a lie We're heading to the startup world, where apparently they've run out of normal words. We'll give you three real headlines about weirdly named startups, and one that's faker than the plant-based meat so many of them make. Can you guess the odd one out? - Beauty startup SHEtake raises $110 million to expand mushroom makeup empire
- Flink acquires Cajoo as speedy grocery consolidation gathers pace
- Yo! Egg cracks into US restaurants with plant-based sunny-side-up, poached eggs
- WNWN announces world's first consumer sale of cacao-free chocolate
| | | We made up the mushroom makeup company. But hey, free business idea. | | | ✢ A Note From Facet Wealth Facet Wealth is an SEC Registered Investment Advisor headquartered in Baltimore, Maryland. This is not an offer to sell securities or the solicitation of an offer to purchase securities. This is not investment, financial, legal, or tax advice. ✤ A Note From eToro Securities trading through eToro USA Securities, Inc. Member of FINRA and SIPC. Crypto Trading through eToro USA LLC, not FDIC insured. | | | Written by Neal Freyman, Jamie Wilde, and Matty Merritt 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
- IT Brew: moving business forward; innovation analysis for the CTO, CIO & every IT pro in-between
- Marketing Brew: the buzziest happenings in marketing and advertising
- Retail Brew: retail trends from DTC to "buy now, pay later"
Tips for smarter living → ADVERTISE // CAREERS // SHOP // FAQ
Update your email preferences or unsubscribe here.
View our privacy policy here.
Copyright © 2022 Morning Brew. All rights reserved.
22 W 19th St, 4th Floor, New York, NY 10011 | | |
No comments:
Post a Comment