Visa Getting Sued

Good morning! After speculation about whether her “exemplary” cooperation would translate to jail time, Caroline Ellison was sentenced to 2 years in prison yesterday for her role in the [FTX fraud scheme](. Today we’re exploring: - Stretched: Jeans giant Levi’s is pushing back its targets. - Monopoly money: The DoJ is suing Visa. - Startup central: San Francisco is still the heart of the VC world. Have feedback for us? Just hit reply - we'd love to hear from you! TOGETHER WITH [Sponsor Logo](   Levi Strauss is making some material changes — including resorting to plan Bey — in an effort to win back consumers following years of disappointing sales results. New CEO Michelle Gass, appointed earlier this year, told the [Financial Times]( that the company's existing revenue target of hitting $9-10 billion by the year 2027 would need to be pushed back, explaining that there’s been “a lot of disruption in the industry” since those goals were set in 2022. Despite a relative bounce-back from the pandemic — jeans survived the [shift to “comfort”](, after all — the retailer’s revenues have since stagnated at ~$6 billion. And profits have tumbled: net income fell 56% to $250 million for the year to Nov 2023, continuing a long history of meagre sales growth. Still the biggest name in the denim game, Levi’s has had to weather stiff competition in recent decades. This has squeezed its profit [margin](, which fell to a tight ~6% last year. Nonetheless, the success of the company’s direct-to-consumer segment will see hundreds more Levi’s stores open in the next few years in a bid to get back to growth. Add to Carter Gass also outlined her plan to reposition the brand to appeal to more women — who, today, only account for roughly one-third of Levi’s sales. Indeed, Levi’s is trying to tap into its icon status to attract a broader range of customers. After featuring in a song title in Beyoncé’s latest album Cowboy Carter, Levi’s teased a collaboration with the superstar in an [Instagram post]( yesterday… and tomorrow, Paris’ Le Marais district will see the opening of a ‘Haus of Strauss’ retail space, featuring made-to-order jeans that are set to cost some €595 ($663). Go deeper: [Why America Still Loves Jeans](. [Read this on the web instead](   Yesterday, the Department of Justice [announced]( that it’s suing Visa for monopolizing the debit payment market, alleging that the company paid competitors like PayPal to stay out of its way and entered into various agreements with merchants that meant they could face penalties for using alternative providers. Debit dominance On the face of it, Visa looks a lot like a monopoly. The company’s ~60% share of all US debit card transactions helps it rack up more than $7 billion in processing fees, according to the DOJ, with Attorney General Merrick Garland observing: “Visa’s unlawful conduct affects not just the price of one thing – but the price of nearly everything”. It’s not just in America either, as debit payments have become an increasingly important part of Visa’s global business too. In 2009, Visa processed $2.68 trillion in payments, with around a third coming from debit transactions, while credit cards accounted for almost 55%. Fast forward almost 15 years, and about $86 trillion worth of Visa transactions later, the bulk now comes from debit cards, which accounted for 45% (a whopping $5.5 trillion) of all Visa payments. The new lawsuit marks the first major antitrust case in the financial services industry under Biden, though the administration has been looking into Visa’s debit market practices since 2021. Given its staggering market share, as well as the company’s rising processing fees, which have drawn the attention of other [regulators around the world](, many may feel that the DOJ’s action could have come a little sooner. [Read this on the web instead](   [Sponsored by Jurny]( Hospitality Disruption for Early-Stage AI Investors Jurny, an AI startup powering thousands of property rentals worldwide, has developed an AI tech that fundamentally changes the hospitality industry. The tech targets over $355B in estimated inefficiencies with partners like Airbnb, Vrbo, and Expedia, delivering more ROI to both investors and property owners. Featured in CNBC, Forbes, and Bloomberg, [Jurny has raised over $12M]( and is backed by industry leading VCs including Mucker Capital and Okapi Venture Capital. Now’s your chance to get in early on an AI startup with traction and upside potential. If you invest today, you can [secure a 25% discount on your investment](. This limited offer is nearly 80% full and selling fast.* [Learn more: Invest in Jurny while early-bird terms last]( [Learn more: Invest in Jurny while early-bird terms last](   In the same way that aspiring actors head to Hollywood to make it as a star (which now [might be harder than ever](), San Francisco — and its surrounding suburbs and towns — has long been the mass at the center of the startup universe, with founders flocking to the city, hoping to absorb the magic they’ll need to turn their company into a household name. During COVID, as remote work spread across the country, there were a [number of threats]( to its dominance. Austin and Miami pulled fledgling companies to their streets and some predicted San Francisco’s downfall as the tech hub. But, despite competitors at home and abroad, SF remains the largest hotspot for venture capital activity. Indeed, according to PitchBook’s latest [Global VC Ecosystem Rankings](, in the six years leading up to Q2 2024, a massive $430 billion in venture funding flowed into SF-based startups — more than double the amount raised in New York, which was second. By comparison, Beijing attracted just over a third of San Francisco’s total deal flow. On a global scale, the US leads with a total deal value of $1.2 trillion, more than double China’s $545 billion and substantially ahead of the UK’s $144 billion figure. And, with $300 billion worth of “[dry powder](” in the VC ecosystem, there's plenty of cash waiting to fuel the next generation of unicorns. Much of it is in San Francisco, and much of it is likely to end up in the bank accounts of AI startups, which have come to [dominate the space](... and led to some truly [outlandish valuations](. [Read this on the web instead](   More Data - New Yorkers can now [rent an apartment]( in Goldman Sachs’ former HQ for $4,000 a month. - New [FBI data]( has found that violent crime across the US fell by 3% in 2023, with murder rates in particular dropping by more than 11%. - Pandora, the world's largest jewelry brand, will now exclusively use [recycled silver and gold](, saving approx. 58,000 tons CO2 per year compared with newly mined metals. - Since Sean “Diddy” Combs was arrested last week on charges of sex trafficking and racketeering, streams of the R&B singer’s music catalog have increased by ~18%, per [Luminate](. - Olympic shooter Kim Yeji, who went viral after representing South Korea at Paris ‘24, has landed her first [acting role](… playing an assassin. AI bnb… Jurny’s AI is powering thousands of property rentals worldwide. Partnered with Airbnb, Vrbo, and Expedia, Jurny is leading the AI revolution in hospitality. Don’t miss your chance to [invest and secure a 25% discounted stock price]( — Jurny’s special limited offer is 80% full, and selling fast.* Ad   Hi-Viz - Can you strategize a presidential campaign all the way to the White House? Find out by competing in the FT’s [Election Game](. - Visualizing how the perfect baseball lineup has evolved from 1970 to [present day](. Off the charts: Which unexpected sector helped to boost King Charles III of Britain’s official annual income by more than 50% last financial year? [Answer below] [Answer here.](   Thanks for stopping by! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi, I like the newsletters, but I had a thought for you...) or want to [sponsor this newsletter](mailto:advertising@sherwoodmedia.com?subject=I’m interested in advertising with Sherwood Media)?   Not a subscriber? Sign up for free below. [Subscribe](   Advertiser’s disclosures: * This is a paid advertisement for Jurny’s Regulation CF Offering. Please read [the Form C](, [offering circular](, and related risks at [Jurny’s Wefunder site](. Equity crowdfunding investments in private placements, and start-up investments in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment through equity crowdfunding tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. 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