Uber dreams big

MARKETS

• U.S. markets: Stocks finished lower after U.S. tensions with Russia and Syria escalated.
• A day of mixed feelings: There were a number of things pulling and tugging at the markets yesterday—Zuckerberg's second day of testimony, Paul Ryan announcing he wouldn't run for re-election, rising geopolitical risk, and the Fed minutes. Keep reading for more.

TRANSPORTATION

Uber Is on a Mission to Transform Urban Transportation

Mark Zuckerberg wasn't the only tech CEO doing his best Toastmasters impression in D.C. On a panel not far from Capitol Hill, Uber's Dara Khosrowshahi was busy laying out a bold vision for his company.

The gist? Uber will become much more than just a ride-hailing app. Eventually, it wants to be your one and only source for getting around.

Because when Dara closes his eyes at night, here's what he dreams...

A day in the life of an urban millennial, 2020 A.D.

Wake up. Read the Brew to get a jumpstart on the day. Then, open up the Uber app and buy your subway ticket to get to work. Looks like Uber's partnership with Masabi, announced yesterday, is paying off. Masabi offers mobile ticketing for transit systems in several global cities.

Lunch meeting across town. What used to be a 20-minute slog in a cab is now an enjoyable 5-minute jaunt on a shared electronic bike...which you also paid for on the Uber app ($2 per 30 min). Turns out, Uber's $200 million acquisition of Jump Bikes earlier this week was a steal.

You get home, but gaze into an empty fridge. Not a huge deal, because getting to the grocery store is no sweat. Thanks to Uber's new partnership with Getaround, a car-sharing service, you rent your neighbor's car for an hour to stock up on peanut butter.

Finally, you settle in for a nice, long —

Dara wakes up with a headache

Executing this dream could be nightmare. For starters, some of these initiatives are unproven pilot programs. And even if they do catch on, competitors are also diversifying their own transportation offerings, from established carmakers like GM and BMW, to tech upstarts like Lyft, Waymo, and Didi.

Because every one of those companies knows one thing: you may not own a car a couple years down the road...but you will own a phone.

TECH

Highlights from Washington—Day 2

On Day 2, not much changed on Capitol Hill. Congress came out firing, Zuckerberg calmly answered every question or promised, "I'll have my team follow up," and it became increasingly clear how little some members of Congress know about Facebook's (+0.78%) basic mechanics.

The best sound bites

"It's pretty obvious to me that someone is listening to the audio on our phones"—Congressman Larry Bucshon. Zuckerberg assured him Facebook wasn't, before proceeding to remove his ear piece.

"[It] is inevitable that there will need to be some regulation"—Mark Zuckerberg.

"In general, we collect data on people who are not signed up for Facebook for security purposes"—Mark Zuckerberg.

"Mr. Zuckerman"—Congresswoman Yvette Clarke. In her defense, there's no better way to disarm a witness than to call him by the wrong name.

Testimony takeaways: We learned: (1) FB's privacy policy could be better, (2) some form of regulation is almost a certainty, (3) FB has too much malicious content to possibly monitor—it's counting on AI to help, (4) the question, "Is FB a monopoly?" is now fair game.

The Crew's take: Regulation is necessary, but if this testimony made one thing clear, it's that some policymakers do not understand FB enough to dole out that regulation. At least not yet.

ECONOMY

The Fed Gave Us the Lowdown on the Economy

How's the economy doing? Here's the Brew's minutes on the Fed's minutes.

Views on the economy: The bulls are out. Unemployment is low (4.1%) and a $1.5 trillion tax cut had central bankers saying, ‘We need to raise growth projections.'

Views on inflation: ‘We got you right where we want you.' Inflation estimates ticked up towards the Fed's target 2% rate. Remember, raising interest rates too quickly might keep inflation low and derail the economy. But raising rates too slowly might let inflation run wild, which could also...derail the economy. Is this giving anyone else anxiety?

What's keeping economists up at night: Trade wars. Right now, the Fed is feeling confident about its rate hike plan—at least two more this year and three more next year. But instability from a trade spat between the U.S. and China could make economic growth less predictable and harder to plan for. If there's one thing economists like, it's predictability.

And of course, long-winded dialogues on the Nash equilibrium.

AGRICULTURE

John Boehner Does a 180 on Pot

With Paul Ryan not seeking re-election, another Speaker of the House showed him what retirement is all about. John Boehner is joining the advisory board of marijuana firm Acreage Holdings (along with former MA governor Bill Weld).

What is Acreage Holdings? It holds acres...of cannabis. From farm to dispensary, the company runs pot ops in 11 states and is one of the largest marijuana corporations in the country.

As a political heavyweight, Boehner coming on board is a big deal

And it's also a major surprise. Boehner may never have smoked pot, but he does seem to be suffering from short-term memory loss. Back in 2011, he said he was "unalterably opposed" to legalizing the drug.

So what changed? Public opinion, for one (64% of Americans favor legalization). But Boehner and Weld also mentioned the positive impact on veterans, 22% of whom use cannabis to treat a medical condition, per an American Legion survey.

Bottom line: As one analyst told Bloomberg, "It is difficult to overstate the impact of this monumental event for the U.S. cannabis sector."

WHAT ELSE IS BREWING

• Big news in Apple Music: the service hit 48 million subscribers and got a new chief.
• For $12.99, you'll be able to get both Spotify Premium and Hulu's Limited Commercials plan.
• The Nasdaq is delisting Long Blockchain (-37.14%), the company formerly known as Long Island Iced Tea. Raise your hand if you saw that coming.
• Snap (+2.21%) is working on a new pair of Spectacles, seemingly unfazed that its first version forced Snap to write down $40 million for too much inventory.
• In the AT&T-DOJ trial, an economist (called by the government as a witness) said that a merger with Time Warner would hurt consumers. Next up? AT&T (-1.56%) will call its own economist to testify.
• Reporting earnings today: BlackRock, Delta Air Lines

WATER COOLER

BIGGER PICTURE

They say a picture is worth a thousand words….which is great, because we definitely don’t have room for a thousand words.

There's no proof President Trump's Twitter account is directly correlated with the markets. BUT, there's not not proof...

Comments from the Russian ambassador to Lebanon prompted this tweet Wednesday:

The markets immediately dropped and oil prices surged. That continued oil's record-breaking week, matching levels not seen since late 2014. Brent crude is the global oil benchmark:

The bigger picture: Tensions are rising between the U.S., Russia, and Syria. Even Saudi Arabia is getting involved. Some fear that could short-circuit oil supply in the Middle East and cause prices to rise. Aka, we could see this rally continue.

THE BREAKROOM

STOCK WATCH
Stock up: #DeleteFacebook

Stock down: #DeleteUber

Not sure how this would work: #DeleteTwitter

TALK LIKE THE CREW
General Data Protection Regulation (GDPR)—A new set of EU data privacy rules intended to protect consumers (taking effect May 25). Basically, if companies want to collect data they'll have to follow this strict set of guidelines. Then, they'll follow another rulebook that provides the ‘dos and dont's' of storing that data. GDPR is a hot-button topic in tech circles right now.

BRAIN TEASER
How many times do all the hands on a clock go around in an hour?

(Answer located at bottom of newsletter)

Breakroom Answers