☕ Now in color

ROYGBIV comes to the Amazon Kindle... October 17, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Grayscale Investments]( Good morning. There’s a chill in the air, lips are getting chapped, and your neighborhood coffee shop is draped in cobwebs. That can only mean one thing: Hot chocolate season has arrived. If your office seems too calm this morning, ask your coworkers whether the superior hot cocoa topping is whipped cream or marshmallows. —Matty Merritt, Molly Liebergall, Cassandra Cassidy, Holly Van Leuven, Neal Freyman MARKETS Nasdaq 18,367.08 +0.28% S&P 5,842.47 +0.47% Dow 43,077.70 +0.79% 10-Year 4.016% -2.0 bps Bitcoin $67,535.87 +1.62% Nvidia $135.72 +3.13% Data is provided by *Stock data as of market close, cryptocurrency data as of 6:00pm ET. [Here's what these numbers mean.]( - Markets: The [major indexes rebounded]( from the fright ASML gave investors yesterday, and while Nvidia’s stock rose, all is not rosy for the industry (more on that below). Good earnings reports for big banks went a long way toward lifting the mood on Wall Street.  CHIPS [It appears chipmakers are mortal]( [Two fingers holding a computer chip ]( Bowonkitwanchai/Getty Images ASML, the leading supplier of vital semiconductor equipment, lowered its 2025 sales expectations Tuesday, [triggering]( a sell-off in the sector and combined market value losses for US and Asian markets of about $420 billion. What happened: ASML said in its earnings report that it received less than half of its expected equipment bookings last quarter. The Netherlands-based company is a vital part of the semiconductor supply chain. In one case, it’s the only company that makes and services a specialized chipmaking machine. - ASML is the only source of the ultraviolet lithography (EUV) machine, which can make powerful chips to run AI programs and smartphones. It’s considered one of the most complicated devices ever made, costing around $200 million. - It also produces a deep ultraviolet lithography (DUV) machine, which was cutting-edge before the EUV machine showed up and is still important. Two other companies also make them. AI was supposed to save the chips Investors expected the artificial intelligence boom to drive up demand for chips and the machinery needed to make them. But it wasn’t enough to counteract the lag from the automotive and industrial sectors. Plus, some of ASML’s biggest customers, like Intel and Samsung, have seen disappointing sales in recent quarters. The China market is about to dry up. ASML never sold China its EUV machines, but now new export restrictions will limit sales of DUV machines. - In its Q2 earnings report, ASML said 49% of its sales came from China, likely because companies wanted to snap up DUV machines before the restrictions were enacted. Bottom line: Even after the initial shock wears off, the problems facing ASML—and the rest of the chip industry—will likely linger.—MM PRESENTED BY GRAYSCALE INVESTMENTS [Do you know about the Bitcoin Mini?]( [Grayscale Investments]( Grayscale Bitcoin Mini Trust (“BTC”), an exchange-traded product, is not registered under the Investment Company Act of 1940 (or the ’40 Act) and therefore is not subject to the same regulations and protections as 1940 Act registered ETFs and mutual funds. Grayscale Bitcoin Mini Trust, aka the Bitcoin Mini [(ticker: BTC)]( is one of the lowest-cost* ways to gain exposure to Bitcoin directly through your existing brokerage or retirement account, the same way you would invest in any other stock or ETF (though brokerage fees may still apply). That’s right—you don’t need a separate crypto wallet or account on a crypto exchange! Simply search “BTC” on your preferred trading platform or [click here]( to learn more. [Grayscale]( has been offering exposure to crypto through investment products for over a decade. Today, they offer a suite of over a dozen different funds covering Solana, Filecoin, Chainlink, and others for investors to choose from. WORLD [Tour de headlines](#) [A SpaceX rocket launches next to the ocean ]Patrick T. Fallon/Getty Images Elon Musk sues California commission over rocket launches. SpaceX filed a suit against the California Coastal Commission on Tuesday, stating that the panel [improperly blocked]( an Air Force-backed plan to increase the number of Falcon 9 launches from 36 to 50. The commission, which is tasked with protecting California’s ~1,000 miles of coastline, rejected the bid for additional launches from the Vandenberg Space Force Base in Santa Barbara. One of the 12 commissioners mentioned Musk “spewing and tweeting political falsehoods” in the decision. The lawsuit asserts that using the CEO’s public statements to block the plan would violate his free speech rights. Shrinkflation abates for some snacks. Good chip news: Some bags of Tostitos and Ruffles, which PepsiCo owns, will [get 20% bigger]( for the same price. The word first came down in Pepsi’s earnings call last week, but CNN got more details from the company: A spokesperson told the outlet that the “bonus” bags of Tostitos and Ruffles will only be available in select locations, and the 18-bag variety packs of chips will be getting two additional bags. Pepsi, whose snack sales dropped last quarter, is trying to bring consumers back to the chip aisle for football season. Italy criminalizes seeking surrogacy abroad. The Italian Senate passed a bill yesterday that makes it illegal for Italians [to pursue surrogacy]( anywhere in the world, including the United States and Canada. The ban was promoted by Italy’s far-right Brothers of Italy party, which Premier Giorgia Meloni belongs to, and the conservative League party. Meloni has pursued a conservative social agenda since taking office in 2022. While the ban applies to all couples, activists and some lawmakers see it as disproportionately affecting LGBTQ couples. Italians who pursue surrogacy overseas can face two years in jail and a $1.1 million fine.—HVL CONSUMER [Your subscriptions are about to get easier to cancel]( [gif of clicking unsubscribe]( Kim The days of crossing Middle-earth to end a gym membership are almost over: The Federal Trade Commission finalized a new rule yesterday that aims to make subscription-based services as easy to cancel as they are to sign up for. No more hoops. The rule, called “click to cancel,” [cracks down]( on the subscription “tricks and traps” that take advantage of our free-trial forgetfulness and impatience with lengthy customer service calls, FTC chair Lina Khan said. Under the rule: - Online memberships should take the same number of clicks to cancel as they do to initiate. - You need to be able to cancel via the same methods used for signup (but in-person signups should also have remote cancellation options). - For free trials, companies need to be clearer about their auto-renewal policies and can’t start charging customers without “informed consent” (which might just look like another box to check at signup). The protections kick in in about six months, which means we could be free of Rocket Money’s fake standup ads by Spring. Looking ahead…the rule should make it easier for regulators to sue companies with slippery subscriptions—like [Planet Fitness]( and HelloFresh, which are often mentioned in complaints filed with the FTC. Khan and co. are also pursuing subscription-related lawsuits against Amazon and Adobe.—ML Together With Miso Robotics [Miso Robotics]( Ending tomorrow: Up to 3x profits? Yes, chef! Carmy’s tattooed arms may no longer be the most distinctive ones in kitchens. That’s because [Miso just sold out initial units]( of their new kitchen robot in one week. The $1t fast-food industry faces 150% labor turnover, but Miso’s robots fill the gap and boost profits up to 3x. White Castle even announced interest in putting their tech in 100 locations. [Invest in Miso before tomorrow’s deadline](. TECH [Introducing: The Kindle, in color]( [A hand holding the Kindle Colorsoft in front of an airplane window]( Amazon just made it a whole lot easier to judge books by their cover. The Kindle-maker launched a new lineup of its [signature e-readers]( yesterday, including the Kindle Colorsoft, the first model to breathe a pop of color into the device beloved by Gen Z and BookTok. The Colorsoft is materially the same as the new Kindle Paperwhite, but you’ll see the full spectrum of ROYGBIV for in-book images and when browsing the library or store. Most importantly for literary motif lovers, you can highlight text on pages in yellow, orange, blue, or pink. It will sell for $280 and shipments begin on October 30. A new era for e-ink? Usually, adding color can create a lag in page turns, hurt battery life, and worsen resolution, but new display technology has prevented any of those downgrades, according to the company. Initial [reviews]( of the product say the display is sharp and bright but still easy on the eyes. Zoom out: Kindle sales grew double-digits in the past two years, according to Amazon. With competitors like Kobo and Boox on its heels, the king of e-readers had to step up its game outside of color, too: It also unveiled a new Kindle Scribe and a new entry-level Kindle model this week.—CC STAT [Prime number: Americans’ negative equity in autos](#) [an upside down car and a red arrow pointing downward next to ]Francis Scialabba The average amount owed on “upside down” auto loans, in which the balance is more than the car is worth, [hit a record high]( of $6,458 in the third quarter, according to Edmunds, a site that helps consumers research and buy cars. That’s compared to $5,808 for the same period last year. “Consumers owing a grand or two more than their cars are worth isn’t the end of the world, but seeing such a notable share of individuals affected at the $10,000 or even $15,000 level is nothing short of alarming,” Edmunds Head of Insights Jessica Caldwell said. If borrowers don’t pay off their car before trading it in, the negative equity is applied to the new car loan.—HVL NEWS [What else is brewing](#) - [Impact Plastics]( and its CEO were sued by the family of a worker killed at a plant due to flooding from Hurricane Helene. Surviving employees said they were not allowed to leave. - [A Georgia judge]( blocked the state election board’s new rule requiring Election Day ballots to be counted by hand, citing the potential for “administrative chaos.” - [Two boys]( died over the weekend, one in Tennessee and one in Minnesota, in incidents at haunted hayrides. - [Lufthansa]( received a record $4 million penalty from the Department of Transportation for preventing Jewish passengers from boarding a flight in 2022. - [Liam Payne]( a member of the band One Direction, died after falling from a hotel in Buenos Aires. He was 31. RECS [To do list Thursday] Budget: [Here’s a game]( that asks you to run the British economy. Read: How horror movies set in stores show the [evolution of retail](. Think of the children: [This site]( rates a movie’s kid-friendliness through three quick metrics. Explain: [Chasms]( helps you help your mom when she needs tech support for Windows Vista. Your logo embroidered here: Introducing the Queensboro Sampler: polos, hats, tees, beanies, and more. Try them [for just $4.95]( including logo setup and embroidery. [Queensboro.com]( since 1982. Trust the Queen!* *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: Your time to beat on today’s crossword is 45 seconds. Get in the zone, then [click here to play](. Three Headlines and a Lie Three of these headlines are real and one is faker than an invite to swing by “any time.” Can you spot the odd one out? - Robot vacuum starts [hurling]( racial slurs at its owner after being hacked - [New Croc clogs]( mean matching togs for your dogs - A mysterious buyer just made the largest ThighMaster [bulk order]( in history - Russell Brand is now [flogging]( a ‘magical amulet’ that costs $240 SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER We made up the one about the ThighMaster order. Word of the Day Today’s Word of the Day is: abates, meaning “to decrease in force or intensity.” Thanks to John from Denver, CO, for hitting us hard and soft with the suggestion. Submit another [Word of the Day here](. ✢ A Note From Grayscale Investments *Low cost based on gross expense ratio at .15%. Please read the [prospectus]( carefully before investing in the Trust. Foreside Fund Services, LLC is the Marketing Agent for the Trust. Investing involves significant risk, including possible loss of principal. The Trust holds Bitcoin; however, an investment in the Trust is not a direct investment in Bitcoin. As a non-diversified and single industry fund, the value of the shares may fluctuate more than shares invested in a broader range of industries. Extreme volatility, regulatory changes, and exposure to digital asset exchanges may impact the value of Bitcoin and, consequently, the value of the Trust. Digital assets are not suitable for an investor that cannot afford loss of the entire investment. There is no guarantee that a market for the shares will be available, which will adversely impact the liquidity of the Trust. The value of the Trust relates directly to the value of the underlying digital asset, the value of which may be highly volatile and subject to fluctuations due to a number of factors. There is no certainty that an active trading market for shares will develop or be maintained which will adversely affect the liquidity of shares of the Trust. ✳︎ A Note From Miso Robotics This is a paid advertisement for Miso Robotics’ Regulation A offering. Please read the offering circular at [invest.misorobotics.com](. Written by [Matty Merritt]( [Molly Liebergall]( [Cassandra Cassidy]( [Holly Van Leuven]( and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. 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