I like, like you

MARKETS

• U.S. economy: Hope you’re wearing your lucky underwear, because it’s jobs report Friday. Economists project that the U.S. economy added 160,000 jobs in August. We got great news on employment from a separate ADP report yesterday, so...might not need any underwear at all.
• Stocks went full commando on that encouraging economic data and news that the U.S. and China would meet to talk trade next month.

SOCIAL MEDIA

You Had Me at Log In

Facebook’s just a social media giant, standing in front of its U.S. users, asking them to date each other using its platform. Facebook Dating launched to U.S. users 18 and older yesterday as a new tab on the Facebook (+2.01%) mobile app.

How it works: People who want to find a date through Facebook can create a profile that’s separate from their main Facebook profile.

• You can choose to look for a date within your Facebook friend network, or avoid your roommate’s sisters and sister's roommates.
• The app will suggest matches based on your Facebook activity, likes, and preferences.
  It’s more like Hinge than Tinder—no swiping.
• It’s free, and there are no ads or in-app purchases.
• Plus, Facebook Dating users can add their Instagram posts to their dating profiles, and in the coming months they’ll be able to add Facebook and Instagram stories.

And...yes, it has a “secret crush” feature

You can use it to ask up to nine Facebook friends or Instagram followers, “Do you like me? Y/N.” If the feeling’s mutual (and your crush also has Facebook Dating), Facebook will let you know and you can start brainstorming wedding venues.

Zoom out: The dating feature, which was first announced in May of last year, is a big focus for Facebook as it pivots to more intimate connections and private messaging. Shares in Match Group (the owner of Tinder) fell 4.55% yesterday, but analysts don’t see FB as a major threat.

As for the other question on your mind

Yes, there are privacy concerns. Just over a month has passed since the FTC fined Facebook $5 billion over the Cambridge Analytica scandal and other privacy issues. That’s raised questions about the wisdom of telling the platform some of your most personal details.

Looking ahead...including the U.S., Facebook Dating is now available in 20 countries. Next up: Europe, early next year.

STARTUP

WeWork Gives Itself a Shave

The We Company, parent of WeWork, is considering dramatically lowering its valuation target when it IPOs, according to multiple reports.

• Valuation at its last fundraise in January: $47 billion
• Valuation it’s targeting now: around $20 billion

What does it mean? WeWork realized it looks less like Richard Gere and more like Joaquin Phoenix's Joker. It's awful news for SoftBank, which invested in WeWork at that $47 billion valuation.

Critics have raised some red flags as the company gears up for its IPO. They include 1) a business model that's vulnerable to economic downturns 2) an SEC filing with murky financial metrics and 3) billions of dollars in losses.

The markdown also shows that investors might be experiencing IPO fatigue. Symptoms include Snap, Uber, and Lyft all trading below their IPO prices. And Slack said Wednesday its revenue growth would slow in this half of the year.

Looking ahead...WeWork could hit the road to pitch investors as early as Monday, and it might have better luck. It’s easier to sell a Timex than a Rolex.

MUSIC

RIAAlly Good Numbers for Music Streaming

The music biz reviewed its stats, and they’re looking great.

The stats, we mean. The Recording Industry Association of America (RIAA) released its midyear report yesterday that showed revenue of recorded music in the U.S. grew 18% to $5.4 billion in the first half of 2019.

The heavy hitters: streaming services like Apple Music and Spotify.

• They averaged over 1 million new subscriptions a month over the last year.
• Overall, music streaming revenue (both ad- and subscription-generated) grew 26% and accounted for 80% of total industry revenue.

If streaming is the lead vocals, you might call physical products like CDs the rhythm guitar. After years of decline, sales rose 5% thanks to fewer physical product returns.

Zoom out: Looks like streaming is the glue keeping the band together after the digital collapse; revenue grew in 2018 for the third consecutive year. “It’s a reminder of what we can accomplish when the whole music community—and our music service partners—work together,” said RIAA President and CEO Mitch Glazier while strumming “Mr. Tambourine Man.”

GEOPOLITICS

Brexit Is Political Theater of the Absurd

This week, Brexit shenanigans cost British Prime Minister Boris Johnson his majority in Parliament and lunchtime wedgies from his brother Jo, who resigned as MP and minister citing “unresolvable tension.”

The prime minister's attempts to regain a majority through October snap elections were stymied by opponents who want a no-deal Brexit off the table. Johnson wants to keep it as an option.

• Leaving the EU without a deal will likely disrupt the U.K's economy, hurting some industries (like Northern Irish dairy farming) and reducing Britain's income per capita.
• Meanwhile, there are reportedly “no real negotiations going on in Brussels,” one European Parliament member said.

Politics or comedy?

As John Oliver reminded us, in the U.K. it is "against the law to use footage from the House of Commons for the purpose of comedy." Maybe because it’s too easy. Just this week...

• Johnson referred to Labour Party leader Jeremy Corbyn as a “chlorinated chicken.”
• House of Commons Speaker John Bercow told Conservative lawmaker Michael Gove to “be a good boy.”
• Jacob Rees-Mogg, leader of the House of Commons, became a meme after laying on a bench during critical Brexit debates.

Countdown to Brexit: 55 days. Maybe.

WHAT ELSE IS BREWING

• Kroger (+0.73%), the second-largest grocer in the country, said it’s going to sell its own line of meatless burger patties.
• Walgreens, CVS, and Wegmans are joining Walmart and Kroger in asking customers to not openly carry firearms in their stores.
• Michigan became the first U.S. state to ban flavored e-cigarettes this week, a move intended to curb underage vaping.
• GM (+1.18%) tapped Google to run some of its in-car infotainment systems, admitting Google can do it better.
• Goldman Sachs (+2.62%) is shaking up its ranks with an internal review that commits executives to future financial targets. At least a dozen partners are reportedly in negotiations to leave.

BREAKROOM

Friday Puzzle
As you all know, Sacramento is the capital of California. Rearrange its 10 letters to spell two words that are synonyms.

Breakroom Answers