Sorry Disney

MARKETS

• Economy: We got another look at Q2 GDP yesterday, which was revised downward to a 2% annualized growth rate. Give yourself a pat on the back. The consumer is the hero driving economic growth in the U.S.
• U.S. markets: Stocks had a good day after China signaled it didn’t want to punch back following the U.S.’ latest tariff increase.

BIG IDEAS

Elon: We're Doomed; Ma: We'll Be Fine...Maybe

Folks, it's been a great run, but this will be the final Brew ever. After listening to Elon Musk and Alibaba's Jack Ma debate yesterday at the World AI Conference, we're headed to a remote Pacific island to live out the rest of our days in a blissful stupor.

What they said: Humanity is doomed by an impending population collapse.

Okay, maybe we’re being dramatic. Elon thinks we're in a simulation and AI will destroy us. Ma thinks we're irreplaceable and AI will dramatically reduce our work.

Let’s dive in.

On learning

Both Ma and Musk think tech will transform education as we know it.

• Ma: "For the next 10, 20 years, every human being, country, government should focus on reforming the education system, making sure our kids can find a job, a job that only requires three days a week, four hours a day." Keep in mind, Ma endorses a grueling 996 work schedule (9am–9pm, six days a week).
• Musk: "The way education works right now, it's really low bandwidth, it's extremely slow, lectures are the worst...Down the road with Neuralink you can just upload any subject instantly, it will be like the Matrix."

The future of work

Ma, the AI optimist, and Musk, the pessimist, revisited their long-held beliefs:

• Ma: "I don't worry about jobs...Computers only have chips, men have the heart. It's the heart where the wisdom comes from."
• Musk: "AI will make jobs kind of pointless...Probably the last job that will remain will be writing AI, and then eventually, the AI will just write its own software."

The one thing they agreed on…

...is what no one wants to hear.

• Musk: "The biggest issue in 20 years will be population collapse, not explosion collapse."
• Ma: "I absolutely agree with that."

We'll close off with some classic Elon zingers:

• "We are already a cyborg."
• "The first thing you should assume is that we are very dumb, and that we can definitely make things smarter than ourselves."

WEATHER

Who Needs Beaches When You Can Have Storm Shutters

Hurricane Dorian visited Puerto Rico and the Virgin Islands Thursday, largely sparing them from serious damage. Now, it's drinking in the warm ocean water like a protein shake and has the potential to hit Florida as a Category 4.

That means by the time it makes landfall Monday, Dorian could bring 130 mph winds. Analysts are predicting anywhere from $10 billion to $30 billion in insurance losses.

Dorian really couldn't have picked a worse time

You wore shorts to the office today, so you know better than anyone: Labor Day is one of the busiest weekends of the year for traveling. A record 2.5 million daily travelers are expected across U.S. airlines around the holiday.

• American and Southwest are helping passengers change their tickets.
• Other airlines are offering vouchers and waivers to help travelers passing through Florida or the Caribbean.

And while most things have gone right for Disney this year, this is not one of them. Dorian is set to slam Florida the opening weekend of Disney World’s new Star Wars attraction.

ENVIRONMENT

The EPA Goes Insane in the Methane

The Environmental Protection Agency proposed rolling back regulations on methane emissions to make life easier for the oil and gas industry.

Specifically, the EPA wants to remove a rule requiring oil and gas companies to install tech that monitors and fixes methane leaks in their equipment. It's also wondering whether it can legally regulate methane in the first place.

The case for regulation: climate change. You've heard about the heat-trapping effects of CO2 in the atmosphere, but swap the oxygen atoms for four hydrogens and now we're really cooking. Methane, or CH4, is estimated to have over 80x the heat-trapping effects of carbon dioxide, though it doesn't stay in the atmosphere as long.

What's the industry's reaction? Depends who you ask, according to the WSJ.

• The big guns (ExxonMobil, Shell, BP) think more methane emissions would hurt the case for natural gas as a source of cleaner fossil fuels.
• Independent, small, and midsized producers feel they disproportionately suffer from the regulations, so they're happy to see the rules go.

You know what comes next...legal battles.

RETAIL

Bezos Is a Messy Shopkeeper

ne week ago, the WSJ published a report documenting Amazon's (+1.26%) lax oversight on items listed by third-party sellers. Browsing the website, you could have stumbled across a product banned by federal regulators, or searched for toys that neglected warnings about health risks for children.

Yesterday, three Democratic senators wrote a letter to Jeff Bezos telling him to clean up his store. "Unquestionably, Amazon is falling short of its commitment to keeping safe those consumers who use its massive platform," they wrote.

• The Journal notes that since its report, Amazon has changed the wording on listings or removed most of the red flag items, but many are cropping back up.

Zoom out: Amazon doesn't just have the biggest stand at the digital farmers market...it runs the market. Last year, third-party merchants contributed 58% of Amazon's gross merchandise sales, up from 30% a decade ago. Plus, third-party sales have much higher margins than when Amazon sells directly to you.

Looking ahead...Connecticut Sen. Richard Blumenthal said he wants to hold congressional hearings once Bezos responds to the letter.

QUIZ

I Love It When You Call Me Quizorita

Busier than a Chinese Costco. Lower than government bond yields. Ready for the long weekend. It's the Brew's Weekly News Quiz.

1. Name the restaurant chain behind each plant-based meat substitute:

1. Impossible Whopper
2. Beyond Taco
3. Impossible Slider
4. Beyond Sausage Breakfast Sandwich

2. Martin Scorsese’s upcoming movie will be released in indie theaters before coming to Netflix less than a month later. What is the movie called?

3. Fill in the blank: 32 companies in the ______ industry signed a sustainability pact at the G7.

4. Which country’s president announced he’s moving the capital to another island?

5. On Sunday, Toyota revealed an electrified fleet of vehicles, including this autonomous e-Palette. What major event will it be used for?

Answers: 1. a) Burger King b) Del Taco c) White Castle d) Dunkin’ 2. The Irishman 3. Fashion 4. Indonesia 5. 2020 Olympics

WHAT ELSE IS BREWING

• The FTC is investigating Juul's marketing practices, reports the WSJ.
• Apple (+1.69%) picked a date for its annual iPhone event: Sept. 10.
• Pure Alpha, the flagship fund at Ray Dalio's Bridgewater, is down about 6% so far this year.
• Best Buy (-8.03%) lowered revenue estimates for the year, citing trade war uncertainty.
• Huawei’s facing new investigations by U.S. prosecutors for technology IP theft.

BREAKROOM

Friday Puzzle
Today’s puzzle from Braingle is all about two letters: “re.” You’ll get two definitions, one for a word that starts with “re” and the second for the remaining word without the “re.”

Example: Exhausting / ceasing employment

Answer: Tiring / Retiring

Ready? Here we go.

1. Rental contract / let go
2. Give back / change direction
3. Give food / hold back
4. Illegal seizure of power / get back something lost
5. Nuclear power structure / one who portrays others
6. Money paid as a penalty / purify

Breakroom Answers