Agree to disagree

MARKETS

  • Trade: That President Trump/President Xi Jinping meeting we’ve been telling you about finally happened. No deal yet, but more details on what did happen below.
  • U.S. markets: Here’s to hoping the next six months are as strong as the last six were—stocks had their best start in 20+ years, the U.S. tallied its best six months for IPOs since 2014, heck, even bitcoin rallied.
  • Reality check: Now that it's July, we're officially in the longest U.S. economic expansion ever.

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GEOPOLITICS

World Leaders Say World Has Some Problems

If you’re wondering why your Instagram feed was flooded with omakase boomerangs, wonder no more. Everyone’s been celebrating the weekend’s G20 meeting in Osaka, Japan.

President Trump had a series of rendez-vous with other world leaders, and some pretty weighty issues hung in the balance. Here’s a rundown:

China

Trump and Chinese President Xi Jinping agreed to take a step back from the trade war and continue negotiations, but no definitive end is in sight.

As part of the agreement, Trump said there will be no new tariffs on Chinese goods while trade talks are underway, backing down from his earlier threat of an added 25% levy on $300 billion in Chinese imports. The president also walked back the ban on sales of American equipment to Huawei. In return, China agreed to buy a “tremendous amount” of American agricultural goods.

Still, the tea in Japan was served piping hot.

  • President Xi accused rich countries of protectionism that's “destroying the global trade order.”
  • G20 leaders didn’t go as far as denouncing protectionism in their post-summit communiqué, but they did call for “free, fair, nondiscriminatory, transparent, predictable” trade.

North Korea

Trump became the first sitting U.S. president to enter North Korea after a meeting with Supreme Leader Kim Jong-un yesterday in the demilitarized zone between South and North Korea. The administration is hoping the overture will lead to a nuclear agreement, though some are skeptical.

Climate change

French President Emmanuel Macron and other European leaders sparred with Trump over whether to reiterate support for the Paris climate agreement. The final communiqué mentioned both the agreement and U.S. objections to it.

Oil

The world’s two largest crude oil exporters, Russia and Saudi Arabia, decided to extend their production agreement for at least six months.

Looking ahead: Host and Japanese Prime Minister Shinzo Abe declared the G20 a success...even though no one offered to help with the dishes. But the meeting also highlighted some deep divisions.

BANKING

Deutsche Bank's Got Shrinking Pains

And let’s just say laying off 20% of your workforce hurts in a different kind of way. In the Deutsche Bank's latest drama, the German lender is reportedly cooking up a turnaround plan that could see it eliminate up to 20,000 jobs globally and shut entire divisions on Wall Street.

The end goal: Keep the pink slip industry in business. Plus, a nuclear option like this could a) prove DB is capable of turning around its disastrous financials, iffy reputation, and affinity for multi-billion dollar fines and b) comfort worried investors.

And investors are plenty worried. DB’s watched 95% of its market value go poof, and since 2012, the bank’s gone through five CEOs, each of whom thought they could make a turnaround work.

That’s part of why DB has failed to keep up with Wall Street heavyweights like JPMorgan and Goldman Sachs in its riskier investment banking unit.
Looking ahead...DB reports earnings July 24. But we may not have to wait long. Reuters reports DB's supervisory board is meeting Sunday to discuss the restructuring plans.

DELIVERY

Grubhub Accused of Getting too Hungry

Grubhub has allegedly bought some 23,000 domains posing as websites for businesses the delivery company either works with or is pitching—without those businesses’ knowledge, according to New Food Economy.

What that looks like: When you order cookies to cure your Chernobyl-induced anxiety, you might end up on a Grubhub-owned site that looks just like the page of your local sweet tooth fix, order form and all. But Betty's Bakery had nothing to do with the website.

FYI, Grubhub denies the so-called “cybersquatting,” saying the sites it owns boost orders and do restaurants a favor.

But restaurants are up in arms, suggesting Grubhub’s misleading customers who want to circumvent the service and its fees.

  • Grubhub, which is the largest online ordering platform in the U.S., charges restaurants a 3–15% commission fee on regular orders. Orders on Grubhub’s shadow sites can add a fee of up to 20%.

Zoom out: When did food delivery get so cutthroat? When other services (like Uber Eats, with its gross bookings of $3.1 billion in Q1) started coming for Grubhub’s crown.

MEDIA

There's Gonna Be One Less Lonely Record Label

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Scooter Braun, the celebrity talent manager whom the world can thank for discovering Justin Bieber, has reached a deal to buy the label Big Machine for a reported $300 million.

Big Machine’s name says it all. It’s one of the largest labels on Nashville’s Music Row, specializing in country and pop. With Big Machine under his Gucci belt, Braun gets access to artists including Sheryl Crow, Florida Georgia Line, and Lady Antebellum, as well as Big Machine’s music publisher, Big Machine Music.

  • Big Machine was founded in 2005 by Scott Borchetta. The first act he signed: a 15-year-old Taylor Swift. The deal gives Braun access to Swift’s six studio albums, though she signed with Universal last year.

While we're here...Swift wrote on Tumblr yesterday that Braun owning her discography was her "worst case scenario" and that he's been bullying her for years.

Zoom out: We know you’re tired of reading the words “media” and “world” and “changing,” but...you get it. Over the past few years, the seismic shifts of streaming and the digital economy have forced media companies to consolidate at a rapid clip.

CALENDAR

The Week Ahead

The U.S. turns 243 years old this week. Its birthday wish? No more American flag shorts.

Monday: First day of Q3; OPEC meeting begins; ISM and PMI manufacturing reports; federal tax credit for Tesla buyers falls; Wimbledon starts; Fed Vice Chair Richard Clarida speaks in Helsinki; Japan resumes commercial whaling

Tuesday: The U.S. takes on England in the Women’s World Cup; earnings (Simply Good Foods, Acuity Brands); motor vehicle sales

Wednesday: NYSE closes at 1pm; ADP employment stats; earnings (International Speedway Corp.)

Thursday: U.S. Independence Day; markets closed; Stranger Things season 3 binge begins

Friday: June jobs report

FOURTH OF JULY

OOO Messages for You to Use This Fourth of July

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Tired of using out of office messages that make you sound like a robot? Want to spice up your inbox and get a laugh? The Brew is here for you. We had fun writing a few OOO templates and encourage you to use them while you take time off this week.

Option #1: If you’re keeping things basic

Hi!

It’s July 4th and I’m fully occupied celebrating American independence.

That means grilling hot dogs, enjoying time with the fam, and freedom from my inbox.

If there’s an emergency or you need to contact me for an important matter, please reply to my fireworks Snap story.

Cheers,

[insert name]

Option #2: If you’re really just over it

Sorry I’m out of the office today, didn’t want to come.

+ We’ve got plenty more options

WHAT ELSE IS BREWING

  • Former Equifax CIO Jun Ying has been sentenced to four months in jail for insider trading. He pled guilty to selling stock before Equifax’s data breach was disclosed.
  • The Department of Justice reportedly issued subpoenas for Boeing production records in early June.
  • Toy Story 4 again topped North American box offices with almost $58 million in week two.
  • Motel 6 has agreed to pay $10 million to settle a class action lawsuit alleging it was in cahoots with ICE agents in Arizona.
  • President Trump will name economist Tomas Philipson the next head of the White House Council of Economic Advisers, per the WaPo.

BREAKROOM

Greater Than or Less Than

  1. Number of acres in Central Park // Number of eastern gray squirrels in Central Park
  2. Ariana Grande monthly Spotify listeners // Justin Bieber monthly Spotify listeners
  3. Population of Queens, NY // Population of New Mexico
  4. Crowd watching the U.S. vs. France Women’s World Cup match Friday // 40,000

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Breakroom Answers


Greater Than or Less Than

    1. Less than. Central Park is 840 acres and home to ~2,373 eastern gray squirrels.
    2. Less than. As of yesterday afternoon, Ari has 41,216,202 monthly listeners. The Biebs has 48,129,542.
    3. Greater than. Queens has 2.4 million people. New Mexico has 2.1 million.
    4. Greater than. The USWNT took down France in front of 45,595 spectators.
 

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