Time for change

MARKETS

  • Markets: The S&P had its worst day in nearly a month as earnings season rolls on.
  • COVID-19 update: The U.S. crossed 4 million coronavirus cases yesterday. That means at least one in 82 people in the U.S. have been infected, Reuters calculates.
  • 2020: President Trump canceled parts of the Republican National Convention taking place in Jacksonville, FL, next month.

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MONEY

It's Time for Change

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How many years of bad luck do we get for fishing a penny out of the wishing well? U.S. businesses are facing an unprecedented (sorry) shortage of loose change as a result of the pandemic.

What happened?

In addition to slowed production from the U.S. Mint, customers have been increasingly buying things online while holed up at home. Which means a big chunk of the estimated $47.8 billion worth of coins in circulation...isn’t circulating.

As cash registers run short, it’s become a challenge for local laundromats and the nation’s biggest retailers alike:

  • Walmart made some self-checkout registers card-only.
  • Kroger is letting customers load change onto loyalty cards for future purchases.
  • Wawa is letting you swap a roll of dimes for a hoagie in some locations.

Some banks are now paying customers to unload their piggy banks. A handful of retailers are trying to make the most of the disruption: Kroger, Wawa, and Texas grocer HEB are helping customers donate leftover cents to charities.

The U.S. isn’t alone in facing currency circulation problems. Argentina is combatting 40%+ inflation and a national mint at capacity by importing printed bills for the first time in years.

That’s a pricey penny

With coins in short supply, the anti-penny crowd is once again finding its voice.

For 16 years, rising metal costs have made it more expensive to make and ship pennies than they’re worth. The two-cent price tag amounted to a loss of $72+ million for the Mint last year. Nickels cost 7.62 cents apiece.

  • The pro-penny lobby argues dropping the penny would burden businesses and disproportionately hurt low-income Americans.

The government has thought about it. The Mint estimated the U.S. could save $250 million over a decade by suspending penny production.

Looking ahead…the Fed’s U.S. Coin Task Force is expected to release recommendations this month. In the meantime, consider putting your coins back into circulation by donating or converting them to gift cards (Amazon, Starbucks, Lowe’s, and Best Buy do it free).

ECONOMY

We Like Our Showdowns Congressional

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There’s a major one brewing over the next round of pandemic relief. Yesterday, Senate Republicans continued hammering out a set of initiatives aimed at buoying the economy as the latest infection spike threatens to sink it (again).

Also yesterday, the Labor Department reported that the number of Americans filing for unemployment benefits rose week-over-week for the first time since March.

What’s inside this relief package

Senate Republicans would launch another round of direct payments of $1,200 for people earning up to $75,000 (plus $500 per dependent child), pouring $300 billion in lighter fluid on the smoldering economy.

  • The plan also includes $70 billion for schools, $16 billion for new coronavirus testing, and added tax credits and funding for the infamous Paycheck Protection Program.

House Democrats’ proposal would continue the extra $600/week in unemployment benefits past its expiration date on July 31. Senate Republicans also want to extend the income supplement, but at a lower level, potentially 70% of people’s lost wages.

Looking ahead...Republicans plan on unveiling the plan early next week. Congress will likely miss the deadline to renew extra unemployment benefits before they expire.

SPORTS

Brew Exclusive: The PLL's Paul Rabil on Navigating a Sports League Through the Pandemic

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If yesterday’s MLB action didn’t scratch your sports itch, allow us to present a different, faster-paced option. Tomorrow, the Premier Lacrosse League kicks off its Championship Series—a winner-take-all tournament held over 16 days on a single campus in Herriman, UT. If you thought starting a new sports league was hard, try navigating one through a global pandemic.

The Brew sat down with PLL cofounder and midfielder, Paul Rabil, to understand how he rolled with the punches and got his fledgling league back on the field.
Check out the conversation.

ANTITRUST

Sundar Searching “How to Testify”

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This week, the Brew is previewing next Monday's antitrust hearing by profiling each Big Tech company at the table.

Company name: Google

Volunteered as tribute: CEO Sundar Pichai

The charges: We know Google for products like Maps and Gmail (and a little thing called Search). But the tech giant also has a system of digital ad buying products that dominate the market—about one-third of all online ad spending goes to Google. Lawmakers and regulators are wondering if that’s too much.

The rebuttal: Google says online ad players don’t have to use its products. Plus, antitrust law is about consumer protection...and it’s hard to see how Google’s online ad system harms consumers.

SPORTS

Tokyo Tries to Keep the Torch Burning

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Tonight, we were supposed to be huddled around the TV saying things like, “Do you think the Danish handball team has a shot at gold?” and “So that’s where Micronesia is.”

But like everything else, the pandemic caused the postponement of the Tokyo Olympics and its opening ceremony, which was scheduled for today.

Where do things stand?

The Olympics are slated to start one year from yesterday—July 23, 2021—with a full squad of athletes.

But doubt is starting to creep in. The president of the organizing committee said Wednesday that if the current situation with COVID-19 continues, Tokyo can't hold the games. The International Olympic Committee has pledged it won’t postpone the Olympics again—they’d just be canceled.

Zoom out: Japan reported a record high in new daily coronavirus cases yesterday, and the population seems about as excited to play host as Larry David. A new poll this week showed only 24% of people in Japan want the Olympics to go on as scheduled next year.

WHAT ELSE IS BREWING

  • E-Trade reported a 267% annual increase in daily active revenue trades last quarter.
  • SpaceX is in talks to raise up to $1 billion at a $44 billion valuation, per multiple reports.
  • Twitter’s average daily user growth increased a record 34% last quarter, but advertising dried up—revenue fell about 20%.
  • American Airlines and Southwest are reconsidering the flights they planned to add over the next two months.
  • Curaleaf Holding's CEO: Cannabis demand is at an all-time high.
  • Seattle’s new NHL team has a name: the Kraken. Washington’s NFL team will reportedly go by the “Washington Football Team” for now.

FRIDAY PUZZLE

The following four groups of letters are nonsense. But, if you add just one letter to each group then rearrange the letters, you'll create four real words. The letter you need to add is the same across all four groups. What is it?

AEEHRT
AGINNR
CEELMO
DEFLNORU

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FRIDAY PUZZLE ANSWER


The letter is W...how many of you got it?

1. Weather
2. Warning
3. Welcome
4. Wonderful

 
 

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