Guac this way

MARKETS

• Economy: U.S. consumer prices posted strong growth in July, according to the Labor Department. But what’s bad for your wallet is good for the economy—the Fed has been waiting for years for inflation to pick up.
• Markets: Stocks rebounded in a big way as the Trump administration delayed tariffs on some Chinese imports.

MANUFACTURING

Western PA Passes Gas

Yesterday, President Trump visited a multibillion-dollar Royal Dutch Shell plastics plant under construction in Monaca, PA. He was there to gin up support for a second term, but the visit also highlighted an ongoing shift in U.S. energy and plastic production.

Why this plant matters

Located in Beaver County about 25 miles from Pittsburgh, Monaca is in a part of the country that’s still recovering from the hollowing out of the steel industry in the 1980s.

When drillers figured out how to access vast natural gas reserves in the Marcellus Shale reservoir, it seemed fracking could help bring the region back. In 2012, then-Gov. Tom Corbett gave Shell a $1.6 billion tax break to set up camp in Monaca.

But then natural gas prices tanked, nearly sinking the plant.

Plastics to the rescue

Turns out, even natural gas can be upcycled. When natural gas shale is fracked it releases ethane, which can be turned into a useful form of plastic when heated in a giant furnace. The Monaca plant will do just that—“cracking” gas molecules pumped in from both the Marcellus and Utica shales.

• Shell says it’ll create a virtuous cycle by using the plastic to make fuel-efficient cars and recyclable items. But even in Beaver County, yinz can’t recycle all plastic items. And the “cracker plant” is allowed to emit 2.2 million tons of carbon dioxide annually.

Environmentalists aren’t buying it

They say plastic is one thing the world has enough of, citing...

• Microplastics showing up in people's guts
• The climate change impact of the plant’s emissions
• Potential threats to local air quality and groundwater

Bottom line: As one of the largest construction projects in the country, the Monaca plant is undeniably an economic boost for an area that needs it. But the long-term environmental consequences will be closely monitored.

TRADE

How the Trump Administration Stole (Then Saved) Christmas

After a call with Chinese officials yesterday, the Trump administration delayed tariffs on several categories of Chinese imports—including laptops, cellphones, gaming consoles, toys, and apparel—’cause not even a trade war gets in the way of America’s holiday shopping. The new deadline is December 15.

Plus, the administration removed some items affecting “health, safety, national security, and other factors” from the tariff list entirely.

• The products in question are part of the $300 billion of Chinese imports President Trump threatened to tax with a 10% tariff starting September 1.
• Two weeks ago, his surprise announcement knocked markets and sent businesses, especially retailers, into close-to-panic mode.

Next steps: The two countries are expected to have another phone call in two weeks and resume in-person trade talks next month.

AUGMENTED REALITY

Snap’s Making a 3rd Spectacle of Itself

Snap’s future is so bright, it has to record video in 3D.

Snap (+1.13%) unveiled the third version of its augmented reality (AR) sunglasses yesterday. At $380, the Spectacles are pricier than ever, but at least the steel frames got a redesign. They’re now a bit sleeker and might even be “vaguely fashionable,” says Engadget.

But they’re more than vaguely high-tech. The new Spectacles...

• Can take 70 videos and over 200 photos per charge.
• Have a second HD camera for 3D effects (because apparently we’re not living in 3D already?).
• Still can’t automatically transfer to the Snapchat app. Users will have to sync with their phones using wi-fi or Bluetooth.
• Will ship in the fall in a limited amount, though Snap isn’t specifying production numbers.

Zoom out: Forbes writes that the Spectacles may not be an extension of Snapchat but a “possible foundation from which an AR ecosystem can emerge.” Just last week, Snap said it was raising $1 billion in part to invest in AR technology.

CONSTRUCTION

This Guy Could Use Some Better Tech

Yesterday, the venture capital fund Brick & Mortar Ventures said it raised $97 million to invest in companies pushing the construction industry into the 21st century. A good start: It waited until after 6am to let us know.

The backstory: Brick & Mortar’s founder, Darren Bechtel, was born wearing a hard hat. His great-great-grandfather Warren started Bechtel Group, the legendary construction and engineering firm that celebrated its 120th birthday last year with $25.5 billion in annual revenue.

But instead of raiding the family bank account for funds, Brick & Mortar has lined up strategic limited partners (LPs) in the construction tech space, including Alphabet’s Sidewalk Labs and the software company Autodesk.

Zoom out: If you’re looking for an industry to disrupt, construction should be on your target list. Construction materials account for roughly 40%–50% of the world’s solid waste, according to Reuters, while labor could be deployed far more efficiently than it is now. 21st century technology like 3D printing and virtual reality training software will likely lead to major changes in the sector.

AGRICULTURE

Avocado's Got Royalty Inside Its DNA

Do you want to live in a world without guac? Us neither. Fortunately, scientists at the National Laboratory of Genomics for Biodiversity in Mexico, Texas Tech University, and University of Buffalo have cracked the Hass avocado’s genetic code.

Why that’s a BFD: Sequencing the genome could help researchers...

• Figure out how to improve avocado farming to avoid shortages like the one Europe suffered last winter.
• Boost avocados’ resistance to disease.

The more you know: In sequencing the genome, the scientists found that the megapopular Hass variety gets 61% of its DNA from Mexican avocados and the remaining 39% from Guatemalan ones.

Finally...designer avocados. The breakthrough opens up the possibility of creating new avocado varieties that are better suited to withstand climate change.

They didn’t ask, but here’s our pitch: Modify the genome so that instead of pits, avocados grow a central pouch filled with tomatoes, lime juice, salt, garlic, onion, and cilantro. That way, you’d cut open your avocado, puncture the pouch, mush it up a bit, and boom—guac town USA.

WHAT ELSE IS BREWING

• ViacomCBS is a go after years of off-and-on-again merger talks between the media companies. Shari Redstone is popping some bubbly tonight.
• Boeing (-0.02%) delivered 38% fewer planes through the first seven months of 2019 than a year ago.
• Protestors disrupted operations at Hong Kong’s airport for the second straight day.
• Facebook (+1.66%) is the latest tech company exposed for having human contractors listen in and transcribe recordings from unwitting users, Bloomberg reports.
• Chick-fil-A added mac & cheese to the menu, its first permanent side dish addition in three years.

BREAKROOM

Cartographers R Us
What is represented by the green shading on the map?

Ok...do we actually expect you to guess this? No, but you can use it to stump your friends. And if you do nail it on your first try, you are a genius and please apply to the open positions at the Brew here.

Breakroom Answers