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MARKETS

• Central bank mania: We'll get an interest rate decision today from the Fed...everyone's expecting a hike. Meanwhile, Argentina's central bank chief resigned (three months into the job) as the country's economy continues to struggle.
• Consumer confidence: It's high. Like, at an 18-year high.

TECH

For Instagram, It Was Never Just About the Likes

Instagram co-founders Kevin Systrom and Mike Krieger are leaving the company they started to explore their "curiosity and creativity." What's left behind? A transformed social media landscape and many, many questions.

Have fun on your three-month silent meditation retreat, boys!

Here's a recap

Since the two founders announced their departure, there has been a ton of speculation about why they're leaving. The loudest rumor? Systrom and Krieger are moving on because of differences in opinion with parent company Facebook.

• Remember, Facebook (-0.30%) bought Instagram back in 2012 for $1 billion. Insta is now worth more than $100 billion, per Bloomberg estimates. Question: Is a 100x return...good?

Fast forward six years...

...And Facebook user growth is stagnating. FB shares dropped the most in a single day ever in July after execs said declines in revenue growth would continue through year-end. Through that, though, Instagram has flourished (with 1 billion monthly active users).

So what's the plan for Zuck & Co.? "Bear hug" Instagram to squeeze out as much ad revenue and user growth as possible (even if it goes against the Instagram founders' ethos).

The only problem: Systrom and Krieger reportedly weren't too eager to hug Zuck back. And some analysts are just as uneasy about the bromance: "If Instagram too becomes chock-full of trashy ads, the user experience could suffer and people will move elsewhere," Bloomberg's Alex Webb wrote.

Quick intermission for "Instagram, by the numbers"...

• JPMorgan projects ~$7.5 billion in revenue for Instagram this year. That's ~14% of Facebook's total ad sales.
• Ad spend on Instagram grew 204% YoY in Q2.

What it means for Facebook

The reviews aren't so hot: CFRA analyst Scott Kessler called the exits a "notable negative." And Baird's Colin Sebastian said, "The Instagram founders probably stayed longer than many others would have."

The question for FB investors...without Systrom and Krieger's hands-on approach to running the Insta-unit, could Facebook mess up the magic that makes Instagram...Instagram?

INTERNATIONAL

Trump Sticks to His Script in UN Address

Thought running into your ex last weekend was awkward? Imagine being President Trump addressing the United Nations General Assembly yesterday.

• Remember, since he last schmoozed with the 192 other UN member states, Trump has pulled the U.S. from the UN Human Rights Council, thrown shade at NATO...and escalated trade conflicts with Canada, the EU, and China.

But the president didn't back down from his "America First" rhetoric at the UNGA yesterday: "We will no longer tolerate such abuse. We will not allow our workers to be victimized, our companies to be cheated, and our wealth to be plundered and transferred."

The 30,000-ft. view: Trump continued to cite efforts to renegotiate "broken and bad trade deals." Redrafting NAFTA? That's "just the beginning," he said.

Drilling down: No surprise that China was a main target. Trump zeroed in on the country's alleged product dumping, currency manipulation, and IP theft.

He also took aim at Iran, which is currently bearing the brunt of renewed economic sanctions from the U.S. Just yesterday, we learned that India, Iran's second-largest oil customer, will stop importing any Iranian crude by November.

APPAREL

Nike Earnings a Mixed Bag

Nike couldn't decide where to pick and where to roll with its fiscal Q1 earnings (released yesterday afternoon). Shares slumped ~4.5% after-hours as investors parsed through the so-so report.

The report: In the wake of some very controversial headlines (more on those in a sec), Nike's earnings and revenue topped Wall Street's expectations, but gross margins of 44.2% fell just short of forecasts. Here's the rundown:

• Profits surged 15% to $1.1 billion.
• Revenue rose 10% to $9.95 billion.

Zoom out: There was more pressure on Nike in Q1 than there is on the Pats heading into Week 4...

1) It was the first full quarter since Nike CEO Mark Parker said in May he'd root out sexual harassment after complaints of a toxic workplace. Several senior execs left in the wake of the scandal.

2) Earnings also came shortly after Nike's buzzy ad campaign featuring former NFL quarterback Colin Kaepernick sparked both support and outrage on social media (remember the burning sneaker tweet?). FWIW, Nike shares hit an all-time high last week.

COURTROOM

Qualcomm: Apple Can’t Keep a Trade Secret

We aren't law school students...but we're seriously considering it after reading a scandalous new court filing from Qualcomm (-1.14%) targeting Apple (+0.63%)—in sunny San Diego, no less.

What got our heart rate up: Qualcomm said it uncovered new evidence that "Apple has engaged in a yearslong campaign of false promises, stealth, and subterfuge designed to steal Qualcomm's confidential information...with the ultimate goal of eliminating Qualcomm's Apple-based business."

• Translation: As part of an agreement, Qualcomm had given Apple access to its secret sauce (aka its source code)...but it's accusing Apple of funneling that info to Intel, Qualcomm's chip-making rival.

Remember, if there's a word to describe Apple and Qualcomm's relationship it's..."litigious." The two firms are sparring in dozens of legal battles around the world over issues like antitrust and patent infringement.

Zoom out: Apple started using Qualcomm modems in 2011, but now it's said to exclusively use Intel's for the new iPhones.

CENTRAL BANKING

You Didn't Ask for It, so We Made It: Fed Bingo

Here’s your official Bingo board to help you follow along as Fed Chair Jerome Powell shares his thoughts on the economy this afternoon.

*Please raise rates responsibly...

MISC

It’s a Name-Changer

You got it, Heisenberg. Here's the latest on companies switching up their official monikers.

1. Dunkin' is ditching the Donuts...from its logo and branding, not the menu. Says the CMO of Dunkin' U.S., "By simplifying and modernizing our name...we have an opportunity to create an incredible new energy for Dunkin'." We're assuming "incredible new energy" just describes what happens after you chug a 24 oz. cold brew. Dunkin's all-in on coffee.

2. AT&T's hot-off-the-press advertising and analytics unit will be called Xandr. It's a new business created after the company acquired Time Warner—and digital ad platform AppNexus.

• Mid-newsletter trivia: "Xandr" was inspired by a specific person. Do you know who it is? (Answer at bottom.)

3. Weight Watche—we mean—WW is turning to a new name to reflect a shift into "wellness that works." Per CNBC, it "follows the trend of consumers wanting to eat clean or be healthier rather than focus on their waistlines."

WHAT ELSE IS BREWING

• Uber won a legal victory in its battle to classify its drivers as independent contractors, not employees.
• Inspire Brands, the parent of Arby's and Buffalo Wild Wings, agreed to buy Sonic (+18.71%) for $2.3 billion. That restaurant portfolio is growing...
• Amazon (+2.08%) made an investment in construction startup Plant Prefab. Keep your eye on the prize—this is all about dominating smart home tech.
• Bill Cosby was sentenced to three to 10 years in prison for sexual assault.
• Six big tech firms (from Apple to Twitter) will send reps to talk privacy on Capitol Hill this morning.
• Santander, Spain's largest bank, is getting a new CEO. Meet Andrea Orcel, an investment banker guru coming from UBS.

BREAKROOM

Guess the Logo

(Answer located at bottom of newsletter)

Breakroom Answers