Musk trims the fat
MARKETS
- U.S. markets: As tensions between the U.S. and China appeared to ease up, the Dow charged forward to its 8th straight day of gains. Oh right, and big tech is back. Apple and Facebook have been leading the charge.
- Earnings today: Home Depot.
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GAMBLING
Supreme Court Ends PASPA, Opening Door to Legal Sports Gambling
Gambling fanatics across America all texted their college group chats yesterday, saying: "The Supreme Court just nixed PASPA. RIP to our bank accounts." After all, it's the only natural way to celebrate the end of a 25-year ban on sports gambling.
But if you didn't get that text, you might be scratching your head, wondering, what's PASPA?
Good question—it's the Professional and Amateur Sports Protection Act of 1992 that placed red tape on sports gambling in all but four states: Nevada, Delaware, Oregon, and Montana.
That is, until New Jersey had something to say about it
Flashback to 2011. New Jersey introduced sports gambling legislation to legalize betting in casinos and racetracks. And just as it was about to give it a stamp of approval (in 2012)...the NCAA, NFL, NBA, MLB, and NHL all said, "Oh, you are so sued."
Why? Corruption, lack of proper regulation, and infringing on PASPA. One by one, courts nodded in agreement, until it was appealed all the way up to the Supreme Court.
But as the court date inched closer, a strange thing happened: anecdotal support from justices showed the tide was turning in New Jersey's favor.
Because as Justice Alito explained...
"Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own."
Translation: PASPA was declared unconstitutional, and the decision has big (like tell-your-friends big) implications:
- Sports gambling in New Jersey could sprint out of the gate in the next two weeks.
- 20 states have already drafted legislation to regulate sports gambling. 32 states could offer legalized sports betting in the next five years.
- Struggling companies like DraftKings and FanDuel have a new lease on life.
- Sports leagues (especially the NBA and MLB) are already vying for pieces of the $150 billion gambling pie, asking for a 1% sports integrity fee.
Bottom line: If you thought the legalization of marijuana spread fast, just wait...
AUTO
When Musk Sends a Memo, the World Holds Its Breath
Especially when he announces a "thorough reorganization" at Tesla (-3.02%) and hints at "trimming activities." Go ahead, read the juicy excerpt:
"As part of the reorg, we are flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission."
What does this mean in practice? Your guess is as good as ours (but we'd bet some execs are getting a one-way Hyperloop ticket out of town).
And they wouldn't be the only senior employees to leave Tesla. Just in the past week...
- Matthew Schwall, who served as the primary contact with safety regulators, ditched Tesla for Waymo.
- Doug Field, the Senior VP of Engineering, is "taking some time off to recharge." He'll be returning to the company at some point, but with Model 3 production ramping up, now doesn't seem the best time for some R&R.
PUBLIC HEALTH
Trans Fats Might Go the Way of the Dodo
The World Health Organization, a UN agency you might call the earth's primary care doctor, unveiled a six-point proposal to eliminate trans fats from global diets by 2023.
Chalk one up to progress: In the '50s, trans fats (aka "partially hydrogenated vegetable oils") were once considered the next-big-thing, bringing you novelties like margarine and cookies that lasted forever.
But now, their artery-clogging ways have been exposed as a major killer—trans fats dramatically increase the risk of heart disease, and lead to half a million deaths per year.
So how are companies responding?
Most multinationals are way ahead of the curve. The largest food company of all, Nestle, said it eliminated 99.8% of trans fats from its fats and oils. Consumer goods giant Mondelez is also on board with the WHO's plan.
But don't think global, think local: Trans fats remain a huge problem in developing regions like South Asia, which are dominated by small-time producers and suffer from weak regulations.
TECH
Ride-Hailing Roundup: Lyft Gains on Uber, and Didi Is California Dreaming
Lyft is telling Uber it better watch its mirrors, because it's much closer than it appears. For the first time, the startup revealed its internal metrics on market share, and the numbers were impressive: it claims to have 35% of the U.S. ride-sharing market (jumping from 20% a year-and-a-half ago).
The problem with that? Uber claims it's got 70-72% market share. And if you do the math, that should tell you a little something about the reliability of "internal metrics."
Either way, both of them should keep an eye on Didi, the Chinese ride-sharing leader. California recently gave it the green light to start testing autonomous cars, which it'll do out of its new Mountain View office (that's right in Google's ‘hood).
And if you didn't think the self-driving space was competitive, chew on this: Didi is the 53rd company to receive a permit to test autonomous vehicles in California with a safety driver.
CRYPTO
Pic of the Day: Lambos Take Over Manhattan
"Blockchain Week" has officially hit NYC, and you can practically smell the hype on the subways (actually, that might not be hype...).
But when Bitcoin millionaires come into town, they're not riding the subway...they're rolling up in Lamborghinis. These luxury cars have become the favorite toys of crypto moguls looking to turn digital currency into social currency.
+ The Consensus crypto summit tripled in size from last year, selling more than $17 million in tickets.
STARTUP
Venture This: Rubicon, the On-Demand Trash Company
You know the saying: One person's trash is another person's $1 billion business.
That's especially true in the case of on-demand trash collection startup Rubicon Global, aka the "Uber for trash." No, it's not the catchiest slogan. But that didn't stop New Zealand's wealth fund from plugging it with $65 million of what could be a $140 million round total.
Why we'd get collecting
- This old-fashioned industry smells ripe for disruption. Rubicon is bringing tech to efficiently connect cities with collectors.
- It just poached Cars.com vet Elaine Richards to be its new president.
Why we're taking out the trash
- Three of the top public trash agencies (Waste Management, Republic Services, and Waste Connections) have a combined market cap of ~$70 billion.
- Rubicon only brought in over $300 million in revenue in 2016.
But enough from us. We want to hear from you. Would you pick up the trash with Rubicon? Are you IN or OUT?
WHAT ELSE IS BREWING
- Facebook (-0.19%) suspended around 200 apps in its purge following the Cambridge Analytica scandal.
- Aurora Cannabis (-2.11%) is buying rival MedReleaf (+1.45%) for $2.2 billion. It's the biggest weed merger to date.
- Google (+0.29%) introduced Google One, its brand new storage plan.
- Netflix (+0.63%) will spend 85% of its $8 billion content budget on original content.
- CBS (+2.17%) filed a lawsuit with the Redstone family, a controlling shareholder trying to merge CBS and Viacom.
BREAKROOM
BREW MD
Want to live longer? Following five simple habits during adulthood could add a decade to your life expectancy, according to a new study from Harvard's School of Public Health. All you have to do is eat healthy, exercise regularly, maintain a normal body weight, don't drink too much, and don't smoke. Okay then, see everyone on the golf course in the year 2100!
BRAIN TEASER
How much money would you have had if, in spending 1/5 and then 1/5 of the remaining, you had altogether spent $36.00?
(Answer located at bottom of newsletter)
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Breakroom Answers
Brain Teaser
$100
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Rem vitae asperiores odio magni. Quod autem non fuga est qui et dolorum.
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