Good morning. The slow, lumbering migration back to the office reached a major milestone last week, when 50.4% of employees in the largest US cities commuted to work, according to Kastle Systems. It's the first time since the pandemic hit that return-to-office rates exceeded 50% of pre-Covid levels. Depending on your perspective, the takeaway could be that offices are half full…or remain half empty. —Sam Klebanov, Jamie Wilde, Max Knoblauch, Neal Freyman, Abby Rubenstein | | | |  | Nasdaq | 11,393.81 | | | | | S&P | 4,017.77 | | | | | Dow | 33,717.09 | | |  | 10-Year | 3.538% | | | | | Bitcoin | $22,721.00 | | | | | Carvana | $10.00 | | | | *Stock data as of market close, cryptocurrency data as of 4:00am ET. Here's what these numbers mean. | - Markets: Stocks closed lower yesterday, with the Dow snapping a six day hot streak as investors started to get antsy about the size of the rate hike the Fed is likely to announce tomorrow. One stock managed to soar, though: Caravana, the flailing online used car marketplace. Despite still being way down from the highs it hit during the pandemic, it's up more than 100% from where it started this year.
| | | | Illustration: Francis Scialabba, Photo: Ford It looks like electric vehicle Black Friday has officially kicked off. Ford announced yesterday that it'll cut prices on its electric Mustang Mach-E models by as much as 8%, putting the price range at about $46,000 to $64,000—which means it'll be selling some of them at a loss. The move follows the unprecedented and sweeping discounts that rival EV manufacturer Tesla rolled out earlier this month. Both companies hope that making the cars cheaper will convince more customers to buy them. Why discount now? Demand for pricey EVs is under threat as high interest rates make financing auto purchases more expensive and recession fears leave people less willing to crack open their piggy banks to snag dream cars. Ford and Tesla may also be considering the government tax credits, worth up to $7,500, for EVs priced under a certain threshold (some Tesla Model Ys and Mach-E models will now be eligible). And there's more competition from automakers like Nissan and Chevrolet that are producing increasingly cheap EVs. But it's not just EVs becoming more affordable: - New car prices have been slowing their ascent, and used cars were 9% cheaper last month compared to a year prior, when your 200k-miles-strong 2006 Corolla was a hot commodity amid supply chain issues and parts shortages.
Not everyone is celebrating Many people who purchased a Tesla shortly before the price cuts are not thrilled about having to make hefty loan payments on what is now a less valuable depreciating asset. Some disgruntled Tesla buyers signed a petition demanding free or discounted software downloads for their vehicles, while others have inquired about refunds, according to the Wall Street Journal. Big picture: Major automakers, which enjoyed soaring profits last year, are now bracing for a reversal of fortunes and looking at ways to cut costs. But difficulties notwithstanding, many companies are still ramping up EV production, and legacy car manufacturers are pushing forward with electrification goals.—SK | | TOGETHER WITH RAD DIVERSIFIED | | Not all economic periods are created equal. But don't sweat it—some investment opportunities are well-equipped to handle any economic period, good or bad. RAD Diversified is built to last through those ups and downs. They're a nontraded public REIT (aka real estate investment trust) that invests in residential, commercial, and multifamily properties (not to mention income-producing farms) across the US. Best of all? Their performance is *unaffected* by the stock market. Need some receipts? RADD made a 35.35% return in 2021. And RAD Diversified REIT stock value has increased by 122.2% since October 2019. That's how RADD is built different. Join the waitlist today. | | Scott Olson/Getty Images  Two more officers relieved of duty over the deadly beating of Tyre Nichols. The Memphis Police Department revealed yesterday that in addition to the five officers charged with murder over the fatal beating, Preston Hemphill and another officer whose name was not released were taken off duty after the incident. Although Hemphill's lawyer told the Associated Press Hemphill was not present during the violence that killed Nichols, the officer was involved in the traffic stop that preceded it, and body cam footage appears to show him saying he had tased Nichols and "I hope they stomp his ass." In addition, three employees of the Memphis Fire Department were fired yesterday for their involvement. Nichols's funeral tomorrow will be held tomorrow.
 Appeals court declines to dance the "Texas two-step." That's not a new TikTok craze: It's a corporate maneuver under Texas law whereby a company facing major liabilities spins off a new company to take them on, has the new company file for bankruptcy, and walks away unburdened—and yesterday, a federal appeals court refused to let Johnson & Johnson do it. J&J created a new unit to shoulder ~38,000 lawsuits claiming its talc-based products caused cancer, and the court's ruling dismissed that unit's bankruptcy case. J&J, which maintains that its products are safe, said it would seek to have the ruling overturned.
 Spring will bring flowers and an end to official Covid emergencies. President Biden plans to end both the public health and national emergencies originally declared to address the Covid pandemic in 2020 (and extended several times since) on May 11. The White House disclosed the plan yesterday while opposing efforts by Republican lawmakers to end the emergency declarations immediately with a bill called the Pandemic Is Over Act. The end of the emergencies will mean that many Americans will have to start paying for Covid tests, treatments, and vaccines. It also signals a shift in how serious the government considers the pandemic to be.
| | MetaBirkins Luxury retailer Hermès and non-fungible token designer Mason Rothschild faced off in court yesterday in the first major test of how trademark law applies to NFTs and other digital designs. Hermès claims Rothschild infringed on its trademark by digitally depicting furry versions of its iconic Birkin bag in his collection of 100 "MetaBirkin" NFTs. But Rothschild argues that MetaBirkins are a lawful, artistic interpretation of the brand's product—similar to Andy Warhol's prints of Campbell's soup cans. NFTs have been a moneymaker for luxury brands Though the crypto downturn has deflated the value of NFTs from when Justin Bieber was bragging about his Bored Ape, Hermès says that Rothschild swooped its chance to capitalize on digital collectibles at the height of the craze, like its peers did: - Dolce & Gabbana sold nine NFTs for about $6 million in September 2021.
- Gucci bagged $25,000 on one short-film NFT two months prior.
While it's unclear how much Rothschild himself made off the project, MetaBirkens debuted at Art Basel in December 2021, and were sold and resold for tens of thousands of dollars. The platform they were originally listed on, OpenSea, pulled the collection at Hermès's request, but copies continued to sell elsewhere—and Hermès argues that consumers might wrongly believe them to be connected to the brand. Zoom out: The case's outcome could set a precedent in this new area, but no matter who wins, the lawsuit itself may deter digital artists from featuring branded products in their designs.—JW | | Roy Rochlin/Getty Images The Academy of Motion Picture Arts and Sciences will meet today to determine whether to rescind Andrea Riseborough's best actress nomination, and if it does happen, it would be the Academy's most anti-indie-darling move of all time. Riseborough's nomination for her performance in To Leslie was a shock when it was announced, as the film had seemingly less heat than some Roku originals. To Leslie made less than $28,000 at the box office in a limited theatrical run. But in the waning days of the nominations voting period, endorsements poured in from stars like Jennifer Aniston, Kate Winslet, and Edward Norton. Cate Blanchett (also a nominee) even mentioned Riseborough in her Critics Choice Award acceptance speech. What's the issue? Well, there are many rules involved in Oscars voting, and in its campaign to receive votes, To Leslie may have violated a few. Potential issues are: a rule against contacting voters directly and encouraging promotion, and a rule against singling out competing nominees by name. Zoom out: Most insiders predict that Riseborough's nomination will be upheld, but some in the industry are upset that it takes away a place for lauded performances from Black actresses, like Danielle Deadwyler and Viola Davis, to be celebrated. Nominations have only been rescinded nine times in the history of the Oscars, and never for an acting nomination.—MK | | | Marketing must-have. After growing to $5b as an industry in 2022, it's safe to say influencer marketing is sticking around for a while. And impact.com has created the ultimate influencer toolkit to help your brand's program thrive. Learn how to leverage 2023's most important influencer marketing trends. | | Hannah Minn Stat: As of the end of last year, 64% of US consumers were living paycheck to paycheck, up from 61% the year before, according to a survey of ~4,000 people released yesterday by Pymnts.com and LendingClub. Even people earning more than $100,000 annually might be thinking twice about adding guac to their burritos as pay fails to keep up with inflation—more than half of them said they were part of the paycheck-to-paycheck club, per the survey. Quote: "Boris, I don't want to hurt you but, with a missile, it would only take a minute." Boris Johnson, the former British prime minister known for his floppy hair and partying during Covid lockdowns, told the BBC that Vladimir Putin threatened him by saying that or "something like that" on a phone call prior to Russia's invasion of Ukraine. Still, it's not clear whether the threat, which did not appear in the publicly released record of the call, was sincere as Johnson said Putin spoke in a "relaxed tone." Russia claims no threat (joking or otherwise) was ever issued. Read: A deep dive into what China's reopening means for markets. (Financial Times) | | - Impossible Foods is planning to cut its 700-person staff by 20%, per Bloomberg.
- TikTok's CEO will testify before Congress in March about the app's security and privacy policies as the company tries to stave off a US ban.
- A suicide bomber targeting police killed at least 59 people and wounded more than 150 at a mosque in Pakistan.
- Boeing will deliver its last 747 today, half a century after debuting the jumbo jet.
- Priscilla Presley is contesting her daughter, Lisa Marie Presley's, will.
| | Parks and Recreation/NBC via Giphy Asking for more money is as scary as realizing you were unmuted in an all-hands Zoom. But with the right approach, a grasp of the details, and a boatload of confidence, you can get what you want. The Brew's brand-new Get-A-Raise Toolkit will help you build your case, do effective market research, and actually get that raise you've been hoping for. Join the waitlist today and get 25% off—we'll never offer it at a lower price. Sign up for the waitlist now. | | They can't all be Olivia or Liam. These are the baby names on the brink of disappearing, in case you're looking for something so your kid won't have to use their last initial to stand out from their classmates. It's not just for celebrity apology tweets: Learn what else you can do with the iPhone's Notes app. Toast the end of Dry January. Mocktails had their moment, but now it's time to make yourself these classic cocktails. Delivered with love: Make a mouthwatering meal this Valentine's Day with ButcherBox. For a limited time, new customers can get 14% off their first box with code VDAY14.* Breaker, breaker 1-9: Who's got the scoop on innovation in the freight industry? LaneAxis. They've reinvented shipping by building the first brokerless, shipper-to-carrier direct freight network. Get up to speed on this investment opportunity.* *This is sponsored advertising content. | | Brew Mini: Mary obviously included a Super Bowl clue in today's crossword. See what it is here. Chinese zodiac signs Earlier this month, Lunar New Year ushered in the Year of the Rabbit. The rabbit is one of 12 animal signs that make up the Chinese zodiac—can you name the other 11 animals? For the competitive people: Give yourself 1 point for every correct animal, but take off .5 for a wrong answer. | | 🛒 Inclusivity, simplicity, and sustainability will be key in CPG this year. Dive into these 2023 trends with Retail Brew.  We're bringing back our hit one-week virtual course, Financial Forecasting. Get a thorough understanding of business finances and learn how to forecast against the challenges ahead. Secure your spot now while they last.
 Looking to get rich this year? Money with Katie is here to help. Her weekly newsletter is filled with tips and tricks to make the most out of your money. Subscribe for free.
| | | Rat, ox, tiger, dragon, snake, horse, sheep, monkey, rooster, dog, pig | | |
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