Carpe diem

MARKETS

  • U.S. markets: The S&P finished the day with a record closing high.
  • Trade: Alibaba cofounder Jack Ma injected fresh optimism into the U.S.-China trade war discussions yesterday, predicting tensions between the two countries could last only 20 years.
  • Debt: Global debt topped $250 trillion in the first half of 2019, per data from the Institute of International Finance cited by Axios. Total debt is 320% of what the world produces, a record high.

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AUTO

In Consumer Reports We Trust

Picture
Ahead of the busy season for school parking lot donuts, Consumer Reports released the results of its closely watched automobile reliability survey.

The deets: Every year, the nonprofit magazine collects responses on its members' experiences with their cars. This year, it received reviews for over 420,000 vehicles. It then ranks 30 auto brands sold in the U.S. in terms of their "reliability," which factors in potential problems in 17 trouble areas.

What we learned this year...

Rule #1: If it ain't broke, don't turn it into the Batmobile

Consumer Reports found that newly redesigned models gave owners more problems than vehicles bought close to the end of their production runs.

  • A common complaint: Automakers have added gears to transmissions to meet fuel economy rules, but sometimes driving with 10 speeds is a little intense. Many readers reported rough, jerky transmissions in redesigned models, CR's director of auto testing told the AP.
  • In all, 45% of new or redesigned vehicles have predicted reliability that's below average.

Rule #2: Japanese cars are the most reliable

Lexus, Mazda, and Toyota were named the most reliable car brands in that order (Lexus is Toyota's luxury brand). South Korea's Hyundai also had a strong showing; its Genesis, Hyundai, and Kia brands all made it into the top 10.

U.S. and European automakers...get your shift together. GM's Cadillac brand came in dead last, while Ford's F-150 pickup—despite being the top-selling vehicle in the U.S.—has below-average reliability. Meanwhile, CR members consider VW's and Acura's SUVs to be "problematic."

Rule #3: Always close your auto stories on a high note
After pulling it last year, Consumer Reports restored Tesla's Model 3 and Model S "recommended" rating. Turns out, when your CEO doesn't have to sleep under a desk at the factory to oversee production, you can make a more reliable car. As a brand, Tesla moved up four spots to #23.

NEWS

Open the GateHouse and Seize the Day

Ladies and gentlereaders, meet the largest newspaper publisher in the U.S. Yesterday, shareholders approved GateHouse parent New Media Investment Group's ~$1.1 billion acquisition of Gannett.

Run the numbers:

  • The combined company will publish 260+ daily newspapers and 300+ weeklies, including USA Today, The Detroit Free Press, and The Palm Beach Post.
  • Print circulation is estimated to top 8 million, while web traffic is expected to average more than 145 million monthly unique visitors.

To stay out of the Newseum, Gannett (the new company's name) has said it will find up to $300 million in savings. That worries the U.S.' top newspaper union, which warned that "local papers will likely disappear, jobs will be slashed, and journalism will suffer" because of the deal.

Zoom out: The U.S. has lost almost 1,800 papers since 2004, per UNC research. And the majority of those remaining have a circulation of less than 15,000.

Looking ahead...the companies expect the deal to close next Tuesday, Nov. 19.

2020

It's Round 2 for Warren vs. the Billionaires

Yesterday, presidential candidate Sen. Elizabeth Warren released an ad, "Elizabeth Warren Stands Up to Billionaires." It alleges former Goldman Sachs CEO Lloyd Blankfein, investor Leon Cooperman, and VC Peter Thiel engaged in some shady dealings.

  • Blankfein shot back on Twitter, "Maybe tribalism is just in her DNA," an apparent reference to Warren's previous claims of Native American ancestry.

Zoom out: Warren's been bare-knuckle boxing with billionaires for weeks. An aggressive wealth tax is key to funding her ultra-expensive plans like Medicare for All. But many on Wall St. are balking at the proposed 6% hit on assets above $1 billion.

Blankfein's co-stars also have thoughts:

  • Thiel: "I'm most scared by Elizabeth Warren." Warren's response: "Good."
  • Cooperman: "This is the f—ing American dream she is s—ting on." Cooperman got teary on CNBC thinking about it. Warren's response: Adding a "billionaire tears" mug to her merch offerings.

Looking ahead...a recent analysis from the Penn Wharton Budget Model estimated Warren's plan would depress economic growth about 0.2% over a decade. But economists in Warren's corner say that doesn't account for the indirect jumpstart the economy would get from expanded social programs.

RETAIL

Large Space to Wait Out a Downpour Opens in Chicago

Today, the world’s largest Starbucks opens in Chicago. The 35,000 square-feet of awkward networking space will join seven other Starbucks stores already located on the Magnificent Mile.

  • This one, of course, is different. It’s the company's sixth “Reserve Roastery,” mega-locations handcrafted to match each city’s vibe. Roasteries can serve over 8,000 visitors per day on average.

We know what you’re thinking: How many beans does one city need?

Ask the Roastery's architects, who were clearly ripping triple-shots during the design process. A 56-foot cask (or bean container) forms the spine, supporting a hamster cage-esque system of tubes that uses air pressure to zoom beans throughout the store.

  • Across the five floors you'll find three coffee bars, a bakery, a roof terrace, and a cocktail bar (heck yeah they serve Malört).

Zoom out: The other roasteries are located in NYC, Tokyo, Shanghai, Milan, and Seattle.

Why Aren't Sports and Streams the Dream Team?

Why Aren't Sports and Streams the Dream Team?

It’s Day 4 of our teardown of the streaming industry to mark the launch of Disney+. If you missed them, here are part 1, part 2, and part 3.

Now that you have hundreds of hours of The Simpsons at your fingertips, it's no sweat to cut the cord...right? Turns out, there's one thing traditional TV customers still cling to: live sports.

Networks like CBS, Fox, and ESPN have together paid billions for the exclusive rights to air U.S. professional sports games. But starting in 2021, bidding rights for the big leagues start to reopen.

We hear Big Tech has a big wallet

Bezos, forget buying an NFL team...what about buying the streaming rights?

With expansive media platforms already spun up, tech companies could bring professional sports to a streaming-first model without starting from scratch.

  • They could layer on features like in-game polls to create personalized, interactive experiences.
  • Some leagues and tournaments have tested live st**ms that allow viewers to follow a single player or watch in virtual reality.

The catch: Leagues have been hesitant to give exclusive live rights to tech companies, Quartz reports. Hulu and YouTube TV have crashed during major sports broadcasts. And even Disney+ was stumbling on Tuesday.

Quiz

Quiz+

Still missing our hot pink RAZR. Only flies out of EWR. The last remaining newsletter that drinks milk. It's the Brew's Weekly News Quiz.

1. Fill in the blank: According to LinkedIn's 2019 Veteran Opportunity Report, a third of veterans are _________, meaning their jobs don't take full advantage of their skills and capabilities.

2. Is Walgreens's debt greater or less than $15 billion? Private equity firm KKR wants to know.

3. What is the nickname of Google's new banking initiative?

  1. Nightingale
  2. Cache
  3. Needlefish
  4. Michael Guglé
  5. 4. True or false: Within 90 minutes, Alibaba's Singles Day sales beat the total from Singles Day 2016.

    5. Match the streaming service to its starting monthly price:

  • Streaming service: Disney+, Hulu, Netflix, HBO Max
  • Monthly price: $8.99, $6.99, $14.99, $5.99

Answers: 1. underemployed 2. greater than ($16.8 billion) 3. Cache 4. true 5. Disney+ = $6.99, Netflix (basic) = $8.99, Hulu (basic) = $5.99, HBO Max = $14.99

WHAT ELSE IS BREWING

  • Walmart has now posted quarterly sales growth for five straight years. “Our strength is being driven by food,” CEO Doug McMillon said. There you have it, corporations are people.
  • Amazon will protest the award of a $10 billion Pentagon cloud contract to Microsoft, citing “unmistakable bias” in the evaluation process.
  • Apple launched three new health studies on its new Apple Research app.
  • Goldman Sachs promoted a smaller than usual class of 465 employees to the role of managing director. 29% are women, a record high.

FRIDAY PUZZLE

Rearrange the letters of the word "stepparents" to spell two words that are opposites.

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Breakroom Answers


FRIDAY PUZZLE ANSWER
Past and present

 

Animi et ut odio autem dignissimos. Tenetur possimus sed tenetur cupiditate. Nesciunt qui et laudantium illum eaque rem eos. Illum illo illo quidem sit. Sunt molestiae sequi occaecati ea enim praesentium.

Architecto id et fuga omnis recusandae nobis pariatur. Rerum occaecati placeat voluptas. Natus minima incidunt consectetur impedit est. Odit quia atque eaque cupiditate et.

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