Do the Stankey leg

MARKETS

  • U.S. markets: Financials finally found some momentum, helping the Dow jump more than 300 points.
  • IPOs: Xiaomi, a major Chinese smartphone maker, had a forgettable public offering. It finished down 1.2% on its first day of trading.

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INTERNATIONAL

Enjoy Your Breakfast with a Little Brexit

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Britain finally woke up from its wild weekend celebration to find itself back at work, hungover, and down two high-ranking government officials.

  • On Sunday night, Brexit secretary David Davis resigned.
  • Yesterday, foreign secretary and major Brexit advocate Boris Johnson also said, ‘I'm out.'

And no amount of Advil is going to cure this Brexit headache for the UK's prime minister, Theresa May.

How we got here

In June 2016, the British people voted to leave the European Union. Apparently, 52% of voters felt that membership in this club (which allows for the free movement of goods, services, labor, and more) wasn't doing the country any favors.

But as singer Neil Sedaka will tell you, breaking up is hard to do. And over two years after the vote, the government is still trying to figure out the right way to separate (aka what should the economic relationship with the EU look like post-Brexit?).

On Friday, it agreed to a tentative plan

The setting: Chequers, the prime minister's country house. Nice pad.
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The agreement:

  • It's very complicated, but the tl;dr is that the UK and the EU would keep many of the existing free trade rules for goods, but not for services.
  • This proposal isn't as clean a break as Brexit fans had hoped. Davis hated it, and Boris Johnson reportedly called it "a big turd."

And now, this chaos is raising anxiety levels among businesses

Tom Enders, the CEO of Airbus (which employs 14,000 people in the UK), blasted the government.

  • He said the uncertainty was "very discomforting" and the government has "no clue or at least no consensus about how to execute Brexit without severe harm."
  • What severe harm? The UK's largest car manufacturer, Jaguar Land Rover, wrote that a bad Brexit deal would cost $1.6 billion in annual profit and put future investments on ice.

+ Because there's no such thing as a stupid question: What's the difference between England, the UK, and Great Britain? We got you covered.

TRANSPORTATION

Uber Puts Skin in the E-Scooter Game

Here's a new term: FOMOES—Fear of missing out on e-scooters.

Everyone's got it these days...especially Uber, which is participating in Lime's $335 million round. That values the e-scooter startup at $1.1 billion, still shy of rival Bird's $2 billion valuation.

But Uber's not worried: Lime scooters already zip their way through 70 U.S. and European markets. And with this new partnership, Uber will allow users to book Lime scooters right through its app.

Let's take it one scoot further

Could this investment be an acquisition in the making?

  • Uber invested in e-bike company Jump before acquiring it for over $100 million.
  • Lyft bought Motivate (operator of Citi Bike) for around $250 million and is in talks to expand into its own e-scooter service.
  • Practically overnight, VCs have flocked to e-scooter startups as demand for affordable transportation skyrockets.

So basically, as the urban transportation ecosystem expands, we wouldn't be surprised if Uber bought itself a Lime.

INTERNATIONAL

Tale of the Tape: France vs. Belgium

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Later today, two friendly neighbors, France and Belgium, square off in the World Cup semifinal. And you can debate soccer X's and O's all you want...we're here to break down the economics.*

Population

  • France: 67.1 million
  • Belgium: 11.5 million

GDP per capita

  • France: $42,858
  • Belgium: $47,942

Unemployment rate

  • France: 9.4%
  • Belgium: 7.1%

Key exports

  • France: Machinery, aircraft, pharmaceuticals, vehicles
  • Belgium: Vehicles, chemicals and pharmaceuticals, machinery, diamonds

Our pick: Belgium's got the ace in the hole with the EU based in its capital city, Brussels. But, France's strong industrial backbone should help it overpower any regulation from Belgium's midfielders. We'll take France in a close match.

*Data from the OECD, OEC, and CIA.

MEDIA

The Future of HBO Looks Bright and Stankey

Get excited: HBO might be expanding after AT&T acquired its parent, Time Warner, for $85 billion. In a town hall meeting between CEO Richard Plepler and his new boss, WarnerMedia CEO John Stankey, the two discussed the future of the premium TV network.

Luckily for us, the NYT got a hold of a recording from that meeting.

Stankey: "We need hours a day. You are competing with devices that sit in people's hands that capture their attention every 15 minutes."

  • His theory? Spend, spend, and spend some more to compete with Netflix. HBO's current ~$2 billion original content spend versus Netflix's $13 billion simply won't cut it.

Plepler downplayed Stankey's enthusiasm. When Stankey said, "We've got to make money at the end of the day, right?" Plepler responded, "We do that."

So who's right in this friendly battle?

Actually, both of them. HBO casually raked in $6 billion in profit over the last three years, so it's not in any trouble. But that won't stop John from doing the Stankey Leg and ramping up content investment.

+ HBO's competitors are also making moves: Sacha Baron Cohen (aka Borat, aka Bruno, aka Ali G), is coming to Showtime for a seven-episode series, "Who is America?" It debuts Sunday.

TECH

10 Years Ago Today...The App Store Was Born

It weighed 8 lbs and offered more than 500 software applications—33% of which were games.

One decade later? The App Store has been pretty, pretty lucrative for third-party developers who wrote software for iOS...and Apple's not doing too badly either (it takes a 30% cut).
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An actual quote from the New York Times story from 2008: "Apple has a substantial way to go to catch its competitors. Palm, Microsoft, R.I.M., Nokia and Symbian have all enticed developers to write software for their smartphone operating systems."

WHAT ELSE IS BREWING

  • President Trump nominated conservative federal appeals court judge Brett Kavanaugh to the U.S. Supreme Court. But the fun is just getting started...
  • Twitter (-5.40%) is trying to calm investors down by clarifying that most of the 70 million accounts it recently purged were not included in its reported metrics.
  • Tesla (+3.11%) has raised the price of some of its cars in China by more than $20,000, per Electrek. You can thank the recent tariffs.
  • President Trump attacked Pfizer on Twitter for raising drug prices "for no reason."

BREAKROOM

PRODUCTIVITY TIP
Creating the perfect to-do list—not quite as simple as we'd all hope. But here's one method that works for us:

Step 1) Brain dump all of your tasks into a list.

Step 2) Categorize each task you listed into separate lists (work, home, school, etc.).

Step 3) Use those lists to craft your daily to-do list by ranking the tasks in the order you want to accomplish them in.

+ Take it to the next level (some apps we like): Wunderlist, Trello.

BRAIN TEASER
You have the numbers 2 3 4 6 7 8 represented by the symbols # $ & % ? ! Each symbol represents one and only only number. From the following can you figure out which number matches which symbol? (X means multiplied by)

?#=# X !

?#=$ X %

#?=! X &

$?=% X #

(Answer located at bottom of newsletter)

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Breakroom Answers


Brain Teaser
?=2, $=3, #=4, !=6, &=7, %=8

 

Reprehenderit blanditiis quia assumenda inventore. Voluptates aut minus sit molestiae et saepe dolorum odio. Architecto qui est eum nihil voluptatem quidem iusto et. Sit mollitia voluptas blanditiis adipisci voluptate.

Ut perferendis quia ut. Ipsum iste culpa est quibusdam harum. Explicabo enim ea ut molestiae et cum et. Ut molestias atque quas neque et.

Quis ea dolorem cupiditate voluptas. Reprehenderit magni quo dolore animi doloremque unde deleniti. Magnam harum explicabo vero et et ut et. Velit quae qui qui ea omnis itaque culpa et. Eaque totam qui modi.

Vero in ea nobis voluptatum ipsam. Aut ut laborum labore et explicabo aliquam. Illum rerum eos voluptatibus cumque amet consequatur expedita. Incidunt odit alias consequatur quis. Temporibus sunt sint rerum vero harum architecto rem. Dolorum harum sint et repellat id iste aut. Corrupti ea eum quia nihil iste sunt est.

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