MARKETS
- U.S. markets: You can get an aerial survey of the damage up top, but read on for some analysis. Banks had an especially rough day, while those safe-haven utilities gained.
- On Capitol Hill: A bipartisan group of U.S. senators appeared certain Saudi Crown Prince Mohammed bin Salman ordered the killing of journalist Jamal Khashoggi.
- And in France: Prime Minister Edouard Philippe suspended a proposed fuel tax hike in response to the "Yellow Vest" protests.
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MARKETS
Tariff Man, Bond King, and a Brutal Day for Markets
Markets got clobbered yesterday, with investors asking tough questions about global trade wars and a potentially slowing economy.
Where did the President Trump of the G20 summit go?
He left Buenos Aires, went into a phone booth, and emerged as...
Remember: Over an elegant Saturday night dinner, President Trump and Chinese President Xi Jinping agreed to put their trade war on hold for 90 days. But mixed messages and a change in tune following the G20 meeting has investors wondering, "So...what exactly was agreed to, again?"
- Here's one example of the confusion: President Trump tweeted that China will "reduce and remove tariffs on cars coming into China." But his top economic adviser, Larry Kudlow, said a deal hadn't been reached yet.
Also, what's going on with the yield curve?
Don't look now, but the yield curve has (sort of) inverted. On Monday, the spread between three- and five-year U.S. government bond yields dropped below zero for the first time since 2007.
Quick vocab break: The yield curve is the difference between interest rates on short-term government bonds and long-term government bonds. When it inverts, long-term rates are lower than short-term rates.
- So why is that spooking investors? Every time the yield curve's inverted since 1960, a recession has followed.
- This may help explain: In a strong economy, long-term rates are higher to offset the risk of any growth-induced inflation. When they're lower? The economy could be "poised to weaken," as DoubleLine CEO Jeff Gundlach said of the most recent inversion. And when Wall Street's "Bond King" speaks, people tend to listen.
But if history is any indication...a recession is still a ways off. Plus, the two- to 10-year yield curve (considered the better indicator of a possible recession) remains upwardly sloped...even though it's at its narrowest since 2007.
BIZ IN DC
Markets Will Hit Pause Today
How do you honor someone who's been called a "patriot and humble servant," and "a man for all seasons"? By holding a National Day of Mourning—happening today to honor the late 41st U.S. President, George H.W. Bush.
On Wall Street, that means it'll be a bare-bones markets section atop tomorrow's Brew.
- Both the New York Stock Exchange and the Nasdaq will be closed for the day.
- Bond markets will be closed, too, per the recommendation of an important trade group.
This kind of grind-to-a-halt day is rare. The last time markets closed to mark a president's death was Jan. 2, 2007, following the passing of President Gerald Ford.
On Capitol Hill, Bush's funeral likely means a two-week postponement of the ongoing government shutdown battle.
- Government funding had been set to expire Dec. 7 for a number of departments, including Homeland Security. Be on the lookout for a stopgap funding extension instead.
And around the country, non-essential federal employees will not have work, most mail delivery will be postponed, and post offices will be closed.
MEDIA
I’ll Be There for Youuuu...
...when the rain starts to pour. Or at least through 2019.
If you managed to somehow avoid the internet completely yesterday, you may not know that some Netflix (-5.16%) users went into panic mode upon finding an expiration date of Jan. 1, 2019 on the Friends page.
But Netflix put those fears to rest—Friends is sticking around through 2019. Keeping Miss Chanandler Bong on Netflix, though, comes at a hefty cost.
- After doing some negotiating with AT&T (whose WarnerMedia owns Friends)...Netflix will now pay $100 million to continue licensing the sitcom through 2019, per the NYT, up from the $30 million/year Netflix had paid.
But that's showbiz, baby—at least in the streaming age. With legacy media firms from WarnerMedia to Viacom to CBS focusing on their own streaming platforms, streamers like Netflix are spending big to snag (and even produce themselves) your favorite shows.
And come 2020...your Friends binge could also come courtesy of AT&T's (-3.09%) future streaming service. "That's content we definitely want on our platform," said AT&T's CEO. "And clearly it's important to Netflix as well."
TECH
iGoodbye, 2018
Dim the lights, pull up the PowerPoint montage, and cue Green Day's "Good Riddance"...Apple (-4.40%) just released its "Best of 2018" list.
Music
Apple Music's most-streamed artist: Drake, who also earned top billing for the No. 1 album ("Scorpion") and No. 1 single ("God's Plan") based on stream counts. Now try getting it out of your head...
- Spotify saw the same Drake domination. The rapper racked up 8.2 billion streams in 2018, with Post Malone, XXXTentacion, J Balvin, and Ed Sheeran rounding out the top five.
- Ariana Grande was the most-streamed female artist globally on Spotify.
Apps
App Trend of the Year, per Apple editors: Self-care. It's never been easier to (at least attempt to) live our best lives with mobile apps like Calm, Shine, Fabulous, etc.
Top free iPhone apps: Just some no-names...1) YouTube 2) Instagram 3) Snapchat 4) Messenger and 5) Facebook. And Fortnite was the top free iPhone game.
Best of the rest
The most downloaded podcast was The New York Times's "The Daily."
For the "Book of the Year," Apple editors went with An American Marriage. And for top business audiobook, they selected Dare to Lead.
FOOD
Burger King Never Trolls on an Empty Stomach
The scene: You're hungry. You want a really cheap burger. And look at that—you just happen to be within 600 ft. of a McDonald's.
- Option 1: You could head toward the golden arches and grab a burger there, or...
- Option 2: Whip out your phone, open the Burger King app, and order a Whopper for just a single penny.
The Whopper Detour promotion, which ends Dec. 12, is all about encouraging signups on BK's new relaunched app. And yes, the Whopper will cost one cent, but only if you're within 600 ft. of a McDonald's (which the app determines using geofencing tech).
Zoom out: U.S. fast-food brands are not afraid of a little trash talk. Burger King has knocked McDonald's before over the way it cooks its burgers, and Wendy's has become popular for its sarcastic, take-no-prisoners Twitter feed.
WHAT ELSE IS BREWING
- Kroger and Walgreens are deepening their ties by testing branded Kroger Express grocery sections inside some Walgreens stores.
- Apple gave the go-ahead to a new TV drama dubbed "Swagger" from NBA superstar Kevin Durant, per CNBC.
- Thomson Reuters (+2.37%) will slash 3,200 jobs, or 12% of its workforce, in order to...you guessed it: cut costs and streamline its businesses.
- Volkswagen said it's working on a tie-in with Ford (-4.42%) to use some of the U.S. automaker's plants to build its own models.
- Morgan Stanley gave a warning to UPS (-7.37%) and FedEx (-6.31%), saying "the market is missing the risk Amazon Air poses" for their freight delivery services.
BREAKROOM
From the Crew
You like things to be convenient. That's why everyone stares jealously as you skip the line to pick up the coffee you already ordered on your phone.
We think finding holiday gifts should be just as convenient...so we created the Brew's holiday gift guide. Six emails. Top brands. Brew exclusive deals. Zero stress. Sign up here.
Guess the Logo: Circle of Life Edition
It's official: Seattle will be getting an NHL team. We'll get to that...but first, try to complete the circle of life by guessing the beautiful logo of this NHL squad that isn't around anymore.
Looking ahead...ESPN asked readers to come up with a name and design for the new Seattle franchise. They're all impressive, but we're bullish on the "Seattle Sushi." See the best entries. (Answer located at bottom of newsletter)
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Breakroom Answers
Guess the Logo
Hartford Whalers
