☕ Fire and rain

Why California’s storms won’t solve its drought problem... January 11, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Babbel]( Good morning and Happy National Milk Day—the day that celebrates all kinds of milk: whole, skim, 2%, the kind that expired yesterday but still smells OK, the one in the fancy glass bottle from the good store, chocolate, and even melk. —Matty Merritt, Sam Klebanov, Max Knoblauch, Neal Freyman MARKETS Nasdaq 10,742.63 +1.01% S&P 3,919.25 +0.70% Dow 33,704.10 +0.56% 10-Year 3.621% +8.2 bps Bitcoin $17,448.17 +1.42% Coinbase $43.23 +12.96% *Stock data as of market close, cryptocurrency data as of 4:00am ET. [Here's what these numbers mean.]( - Markets: So far, stocks are generally making good on their New Year’s resolution to [only go up](, but they’ll face several AP-level tests in the coming days, including the monthly inflation report release (Thursday) and the start of earnings season (Friday). Over in cryptoland, Coinbase investors applauded the company’s dramatic moves to cut costs—the crypto exchange said it would lay off 20% of its workforce and drop “several” projects.  WEATHER [When 20 trillion gallons of water is too much—and not enough]( [Flooding in California.]( George Rose/Getty Images A deadly barrage of storms has been dumping seismic amounts of rain on California over the past few weeks. On Monday, millions across the state experienced an “atmospheric river” that dropped a month’s worth of rain in one day. And as the downpours continued yesterday, 90% of the state’s population (which equates to 10% of the entire US population) was under flood watch. Forecasters estimate more than [20 trillion gallons]( of water will have fallen on California by mid-January. Surely all this water will cure the state of the devastating drought that’s parched it over the last few decades, right? Not quite In fact, most parts of California are simultaneously under drought and flood emergencies, a bizarre consequence of climate change that will likely stick around—despite more rainstorms projected to hit the state throughout the rest of the month. Experts say California would need a lot more rain to completely reverse the drought that has put the Southwest in its driest condition in 1,200 years. One scientist [told]( the WaPo that these storms are like getting a normal monthly paycheck after several months of not getting paid at all—the influx is welcome, but your bank account will still be depleted. Another problem: Right now, there’s too much water and nowhere to put it. While California has gargantuan reservoirs to store rainwater and snow melt, most of the state has received rainfall anywhere from 400% to 600% above average since the storms began a few weeks ago. And once reservoirs are full, the water just flows into the ocean. - For instance, Lake Cachuma Reservoir in Santa Barbara County was hovering around 30% capacity in early December. After rising 34 feet yesterday, it’s expected to start overflowing Friday or Saturday. - Plus, in cities like LA (which has received around three inches so far), rainwater can’t be collected because it’s been contaminated by road runoff. The current state of the storms: Around 93,000 customers were left without power as of 11pm ET yesterday and the death toll has [risen]( to 17. Mudslides and flooding have forced residents of many areas, including the ritzy neighborhoods of Montecito, to evacuate.—MM �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=When%2020%20trillion%20gallons%20of%20water%20is%20too%20much%E2%80%94and%20not%20enough%3A%20https%3A%2F%2Fmorningbrew.com%2Fdaily%2Fstories%2Fcalifornia-storms-likely-won-t-make-a-huge-dent-in-drought%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A TOGETHER WITH BABBEL [Mark your calendar: It’s day numero uno.]( [Babbel]( Maybe learning a new language has been your goal for a few years now. Maybe it’s an idea that’s recently transpired. Either way, [Babbel](’s language learning platform can help you take it from the goals column to the achievements section. With just 10 minutes of daily practice with Babbel, you can [start having actual conversations in as little as three weeks](. That’s right—if you start today, you could be chattin’ it up in another language by the end of the month. Here’s another nudge to get you to the starting line: [You can save 60% on your Babbel subscription]( for a limited time only. WORLD [Tour de headlines](#) [Goldman Sachs logo]Michael M. Santiago/Getty Images 🪓 “David’s Demolition Day” has arrived. Today, Goldman Sachs will begin [laying off]( up to 3,200 employees (~6% of its total workforce) as part of its largest cost-cutting efforts since the 2008 financial crisis. The bank has been hit hard by the market downturn and dealmaking drying up, plus its highly anticipated plans to build a consumer business failed to find…any consumers. We’re sure CEO David Solomon will have more to say about his restructuring plan on Goldman’s earnings call next Tuesday. Biden launches another student debt overhaul. While the Biden administration’s student loan debt wipeout is held up in court, the Education Dept. is moving ahead with another [student debt revamp]( to lessen the burden for borrowers. This proposal would change the rules of existing income-driven repayment plans to slash the payments millions of borrowers need to make on their loans by more than 50%, allowing them to pay off their debt more quickly. As for the broader student loan cancellation plan, the Supreme Court is expected to hear the case next month. France could make seniors work longer, and unions are angry. The French government released plans to gradually [raise the age of retirement]( by two years, to 64, in the hopes it’ll boost employment among seniors and put funds back into its strained pension system. But French unions, which staged massive protests the last time this plan was floated, have already made plans to strike on Jan. 19 in opposition to the move, which they call unjustified. But even at 64, the retirement age in France would still be lower than it is in other higher-income countries. TECH [Microsoft chats up ChatGPT]( [Microsoft chats up ChatGPT]( Francis Scialabba Microsoft is reportedly preparing for its largest startup investment in history: a [$10 billion stake]( in OpenAI that could value the research lab at $29 billion. OpenAI is the creator of potentially groundbreaking AI tools like ChatGPT, the multitalented chatbot that can code in Python and help high schoolers cheat on English essays. What’s in it for Microsoft? The company has already invested $1 billion in OpenAI, but thinks an even tighter relationship would help it better compete with Big Tech rivals like Google (which reportedly declared a “[code red](” over ChatGPT’s threat to its search dominance). But Microsoft’s AI ambitions go beyond just [integrating]( ChatGPT know-how into its own search engine, Bing. The company wants to use OpenAI’s tools in its Office suite—and it’s already experimenting with algorithms to help users craft emails in Outlook. So, what is OpenAI? It was founded in 2015 as a mission-based AI research organization by a roster from Silicon Valley’s A-list, including Elon Musk. Its stated goal is to develop safe AI for the benefit of humanity. But OpenAI has plenty of critics who have called it out for ethical concerns, a lack of transparency, and abandoning its mission for profits. Zoom out: A slew of buzzy AI product releases in 2022 has startup investors forgetting they ever heard the word “metaverse.” Languishing in the prolonged crypto winter and facing an uncertain economic environment, many venture capitalists see the field as the next big thing to shovel money into.—SK �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Microsoft%20chats%20up%20ChatGPT%3A%20https%3A%2F%2Fmorningbrew.com%2Fdaily%2Fstories%2F2023%2F01%2F10%2Fwhy-openai-might-be-getting-usd10b-from-microsoft%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A TECH POLICY You can now fix your tractor (if you know how) [John Deere]Photo Illustration: Dianna “Mick” McDougall, Source: Getty Images As tractors have evolved to include high-tech features like self-driving capabilities, GPS, obstacle detection, and—soon, with any luck—League of Legends compatibility, they’ve become all but impossible for farmers or third-party shops to repair. But on Sunday, John Deere [committed]( to making that easier. Together with the American Farm Bureau Federation, the company signed a memorandum of understanding (MOU) that’s aimed at providing farmers with greater access to tools, diagnostic codes, and manuals. Until now, the company’s high-tech tractors could only be repaired by authorized dealers due to software locks, which farmers claimed raised costs and caused delays (and even led to some farmers [hacking]( their tractors). While this represents a victory for the burgeoning right-to-repair movement, advocates are wary of the MOU’s lack of enforcement measures and certain sections in the agreement, including one that gives John Deere (or the AFBF) the ability to withdraw from the deal if any federal or state right-to-repair legislation is enacted. Zoom out: This isn’t the first time a deal like this has been made in the private sector. In 2018, a similar agreement was reached between a lobbying group representing Deere and the California Farm Bureau, but many of the promises didn’t come to pass.—MK �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=You%20can%20now%20fix%20your%20tractor%20%28if%20you%20know%20how%29%3A%20https%3A%2F%2Fmorningbrew.com%2Fdaily%2Fstories%2Fjohn-deere-right-to-repair%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A TOGETHER WITH THRIVE CAUSEMETICS [Thrive Causemetics]( You’ll want allll eyes on this. After the busy holiday season, we could all use a makeover on our makeup routine. Combine these clean, bestselling products from Thrive Causemetics for the ultimate eye look and start 2023 with eyes as bright as your future. [Brew readers, get 15% off your entire order](. - [Mascara that makes lashes look like extensions]( - [Highlighting stick that brightens + opens the eyes]( - [Waterproof, smudge-proof eyeliner that lasts all day]( GRAB BAG [Key performance indicators](#) [Skyline of Chicago]Interim Archives/Getty Images Stat: Chicagoans have a lot of time to contemplate what the Bears should do with the No. 1 NFL Draft pick. That’s because Windy City drivers wasted an average of 155 hours sitting in traffic last year, making Chicago the [worst US city]( for congestion, according to INRIX’s global traffic scorecard. Traffic picked up in cities all over the world last year, to match (and in some cases exceed) pre-pandemic levels. London was found to be the most congested city globally. Quote: “We are not, and will not be, a ‘climate policymaker.’” In a speech in Stockholm, Fed Chair Jerome Powell said it’s [not his job]( to play climate cop for the global financial system. Powell has heard from critics in both directions that the Fed should play a larger (or smaller) role in promoting environmental sustainability in the financial world. Powell also emphasized the need for the Fed to maintain its independence, since political influence could disrupt necessary—but unpopular—interest rate hikes to stamp out inflation. Read: The gripping obituary of a Frenchman whose forgeries saved thousands of Jews during the Holocaust. ([New York Times]() WHAT ELSE IS BREWING - [Republican lawmakers]( called for investigations into classified documents that were discovered in President Biden’s former office at a Washington, DC, think tank. Biden said he was surprised by the findings and is “cooperating fully.” - [Here]( are all of the winners from last night’s Golden Globe Awards. And this was the [speech of the ceremony](. - [Allen Weisselberg](, the former CFO of the Trump Organization, was sentenced to five months in NYC’s Rikers Island jail for his role in a tax fraud scheme at the company. - [Guinness]( is raising its prices by 12 euro cents per pint to help meet rising costs. The Irish PM said it would create “financial hardship for many” pubs. BREW'S BETS Do you have an extremely weird/unique job? We want to feature you in our upcoming series on the most interesting careers in the world. If your job makes people go “By golly, I never knew that was a thing…tell me more!” [fill out this form](. Always worth a scan: MIT Tech Review’s [10 breakthrough technologies]( for 2023. History Maps: It’s pretty much exactly what the title suggests (but seriously—this site is [very cool](). Hey, healthcare industry readers: Start 2023 by staying on top of the sector’s biggest headlines in Healthcare Brew. [Check it out](. New year, new brew: Less calories + more caffeine = a morning routine you feel better about. [Wandering Bear](’s five sugar-free, organic flavors are so tasty, you can drink them straight from the tap. [Get 20% off](.* *This is sponsored advertising content. GAMES [The puzzle section](#) Word Search: How well do you know your tech logos? Find out in [today’s Word Search](. Typeface trivia Where are you most likely to see this font, called Clearview, in your daily life? [An image of Clearview font]Dafont Free AROUND THE BREW [Wanna retire early?]( [Wanna retire early?]( Money with Katie wants to help you retire early with her latest email series. Get everything from tax strategies to retirement account recs all in one free [deep dive](. Today on [The Crazy Ones](, hosts Alex and Jesse discuss their 2023 predictions for the business world. Being a great leader means continuing to hone the skills that help your team succeed. The Brew’s Leadership Accelerator is built to push you forward to become the best manager you can be. [Apply now](. 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 It’s commonly used for highway signs in the US and in some other countries. � � � � � Written by [Neal Freyman](, [Matty Merritt](, [Max Knoblauch](, and Sam Klebanov Was this email forwarded to you? Sign up [here](. Take The Brew to work - Marketers: [Marketing Brew](  [Future Social]( - Tech: [IT Brew](  - Retailers: [Retail Brew]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2023 Morning Brew. 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