Jumping off the page

MARKETS

• U.S. markets: Stocks rallied all day after U.S.-China tensions eased, but a late-day FBI raid of President Trump's lawyer erased most of the gains.
• U.S. budget: The CBO projected the U.S. budget deficit will top $1 trillion by 2020, two years earlier than expected.

BIZ IN D.C.

Zuckerberg's Big Week in Washington

This morning, Facebook (+0.46%) CEO Mark Zuckerberg will look in the mirror, throw on a jacket and tie, and repeat a few vocal exercises.

"The arsonist has oddly shaped feet"..."The Human Torch was denied a bank loan"...

He's prepping for a two-day stint in front of Congress

...where he'll face questions about Facebook's missteps in handling user data. Most recently, we learned that info from 87 million Facebookers found its way to political consulting firm Cambridge Analytica without their knowledge.

But you could argue that's a symptom, not a cause of Facebook's recent troubles.

After all, lawmakers started throwing darts at Zuckerberg going back to the 2016 election, when bad Russian actors spread misinformation across the platform like it was Halloween candy.

The schedule: Today he's going to a hearing with the Senate Judiciary and Senate Commerce Committees. Tomorrow, Zuck clicked "Interested" in meeting with the House Energy and Commerce Committee, though we expect him to show up.

What we'll hear from Zuckerberg

No, these aren't our predictions...Congress released his prepared testimony (impress your friends and mouth along).

• Taking ownership: "We didn't take a broad enough view of our responsibility, and that was a big mistake. It was my mistake, and I'm sorry. I started Facebook, I run it, and I'm responsible for what happens here."
• Facebook's mission redux: "It's not enough to just connect people, we have to make sure those connections are positive."
• Three next steps: 1) "Building new technology to prevent abuse," 2) "Significantly increasing our investment in security," and 3) "Strengthening our advertising policies."

Bottom line: This is a pivotal moment for Zuckerberg, Facebook, and the country. The calls for reining in social media giants have gotten louder, but it could still take years to work out any significant regulation. Lawmakers have as much a challenge on their hands as Zuckerberg.

If you want to keep track of Zuck's tour of D.C., follow Morning Brew on Twitter for updates. And definitely check out tomorrow's Brew for a recap of the day's action

TRANSPORTATION

Uber Takes a Leap by Buying Jump

Dara Khosrowshahi might start biking to work after Uber acquired bike-sharing startup Jump for ~$200 million.

No, Uber's not shifting gears (not yet at least). Instead, it's a play to monopolize urban transportation, Uber's broader vision beyond ride-hailing.

By the numbers: Jump operates 12,000 dockless bikes across 40 cities. In hilly San Francisco, its latest testing ground, commuters average a sweaty 2.6 miles per trip—similar to the average ride-hailing trip in congested urban areas.

And that could be a gold mine for Uber, considering the one-time cost of a bike is just a tad less expensive than paying a driver. Although, who wouldn't love being picked up on a tandem bike?

Zoom out: Dara's simply following a global ride-hailing trend. Ola (India), Didi (China), and Grab (SE Asia), all invested bike-sharing services and are pumping more and more money into the rapidly growing industry.

The problem? At least in the U.S., bike-sharing in urban areas is a logistically complex and heavily regulated endeavor. So better strap on that helmet, Uber.

PHARMA

Novartis Places a Big Bet on Gene Therapy

Novartis (+1.08%) CEO Vasant Narasimhan was all smiles when he shared the good news: his pharma company will buy gene therapy leader AveXis (+81.57%) for $8.7 billion.

Follow the money: GSK bought out Novartis from their consumer health joint venture for $13 billion a few weeks ago. And at the time, Narasimhan said he would use the cash to acquire smaller companies on the cutting-edge of drug R&D.

He wasn't lying. AveXis is best known for an experimental drug called AVXS-101, which aims to treat spinal muscular atrophy (SMA). It's a rare genetic disease that affects 1 in 6,000-10,000 infants, who in the most extreme cases, die before they turn two.

The potential of AVXS-101: Repair the defective gene with a single treatment. Which is why, according to Narasimhan, his newest purchase could have "multi-billion dollar peak sales potential" (it could be priced in the hundreds of thousands of dollars).

INTERNATIONAL

A Cold Front Swept Through Russia’s Market

Some things Russian oligarchs like: money, power, and more money. Some things they don't like: U.S. sanctions severing their business ties with America.

They suffered the latter Friday when the U.S. targeted several high-ranking oligarchs and businesses with its harshest round of sanctions to date. That was especially clear Monday, when the markets opened and Russian stocks nearly sank their most in four years.

The biggest loser: Aluminum company Rusal watched its shares fall 50% and its owner, Oleg Deripaska, is the man responsible. Like any self-respecting oligarch, Oleg's hobbies (allegedly) include money laundering, threatening competitors, extortion, and racketeering.

But why is Russia in the hot seat?

Treasury Secretary Mnuchin called attention to Russia's intervention in Ukraine, ties with Syrian President Bashar al-Assad, and interference in the U.S. election.

Bottom line: The Trump-Putin bromance appears to be over, Russia's stock market could continue its rout, and aluminum prices around the world could rise from Rusal's turmoil.

WHAT ELSE IS BREWING

• The Justice Department OK'd Bayer's (-0.19%) $62.5 billion acquisition of Monsanto.
• Ray Dalio is worried about a trade war...and other wars.
• Apple (+0.99%) introduced a red iPhone 8 and 8 Plus to benefit Product RED's work with AIDS/HIV.
• Apple's business is now completely powered on clean energy.
• Viacom is asking CBS (+0.02%) to up its bid by $2.8 billion, or almost a quarter (Reuters).

WATER COOLER

VENTURE THIS

Each week, we’ll let you know about a startup making waves. We’ll tell you about the company, pitching you the good and the bad. Then we want to hear from you. Would you invest?

How much would you invest for a better hangover cure? For investors in 82Labs—maker of herbal hangover drink Morning Recovery—that number is about $8 million.

What's got us drinking

Since August, demand for Morning Recovery has been surging. All across the Valley, techies regretting last night's decisions are getting in line. Not to mention, it's already turning a profit on each new customer.

With a new round of funding, the drink could market its way to more shelf space and increase the brand's exposure.

Not so fast...

There are so many of these so-called "hangover cures" already on the market. If one of them worked, don't you think everyone would be talking about it?

And even if Morning Recovery is the solution taking our headaches to the promised land, large consumer goods companies with intricate supply chains and economies of scale could come in and squash it overnight.

But forget about us. We want to hear what you think. Are you IN or OUT?

THE BREAKROOM

TOGETHER WITH NASDAQ
The IPO is one of the most exciting events in the world of business. But that doesn't mean they're easy to understand. You might be wondering, "How does an IPO actually work?" or "What does an investment bank do?" Well, wonder no longer, because our friends at Nasdaq put together this short but sweet video which breaks down the whole process. Search #TradeTalks on Twitter for the latest trading trends, education and news.

SIP ON THIS
Want to turn your startup into a $1 billion company? Not sure we can help. But we can get you in the right mindset by providing you with the early pitch decks of 13 unicorns (including WeWork, Airbnb, and Oscar).

BRAIN TEASER
On one side of a river are three humans, one big monkey, two small monkeys, and one boat. Each of the humans and the big monkey are strong enough to row the boat. The boat can fit one or two bodies (regardless of size). If at any time at either side of the river the monkeys outnumber the humans, the monkeys will eat the humans. How do you get everyone on the other side of the river alive?

(See answer here)