☕ Kim K's court

Why McDonald’s is happy when consumers aren’t... [Advertisement] October 31, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [TheRAD]( Good morning, and Happy Halloween. Today used to be the day Spotify would cut off your listening data for inclusion in its end-of-year Wrapped list; however, this year, the company will keep collecting your info for at least a few more days. That means you could theoretically game the system by bingeing songs that would make your musical taste appear more sophisticated than it is. But, let’s be honest: No one actually cares about what music you’ve listened to this year. So we say let Creed rip. —Sam Klebanov, Molly Liebergall, Cassandra Cassidy, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 12,789.48 +1.16% S&P 4,166.82 +1.20% Dow 32,928.96 +1.58% 10-Year 4.895% +5.4 bps Bitcoin $34,513.90 -0.05% Nike $101.80 +3.90% *Stock data as of market close, cryptocurrency data as of 3:00am ET. [Here's what these numbers mean.]( - Markets: Stocks shook off any scary notions yesterday, with the S&P 500 climbing out of correction territory and the Dow notching its [best day]( since June as companies like Nike and Verizon jumped. Investors will be watching tomorrow to see whether the good vibes can continue after the Fed announces its latest decision on interest rates.  TECH [Biden makes serious AI regulation moves]( [Flag ones and zeroes]( Francis Scialabba President Biden issued an executive order on AI yesterday that is as comprehensive as a typical dad steakhouse order. The first-of-its-kind federal action [aims to regulate]( an industry that has been mostly left to its own devices. The biggest consequence? The developers of future advanced AI models will have to submit safety test results to Uncle Sam to prove they are not a public threat. It’ll be a group effort Different parts of the government will have a role in ensuring the tech doesn’t cause too much of a ruckus: - The National Institute of Standards and Technology will set benchmarks for safety testing, which the Department of Homeland Security and the Department of Energy will use to evaluate risks to national security and infrastructure. - The Department of Commerce will issue directions for watermarking AI-made content, so you can know if that Harry and Meghan divorce announcement is a deepfake. - The Department of Labor and the National Economic Council will study ways to mitigate the effects of AI on jobs. - The Department of Justice will get extra training and tech assistance to investigate cases of AI algorithmic bias. Landlords, federal benefits programs, and government contractors will receive guidance to ensure that they’re using AI equitably. What else? The White House will develop guidelines for federal agencies to strengthen AI privacy protection practices, but Biden said it’s up to Congress to pass consumer privacy rules for the industry. The order also aims to standardize the government’s use of AI by streamlining the process for federal agencies to buy AI tools and hire experts. And it provides resources for small developers and researchers in an attempt to prevent a handful of corporate behemoths from dominating the industry. But…the order is only a starting point that establishes important norms. It consists primarily of recommendations and contains some guidance that isn’t enforceable by the executive branch, making it unclear how effective it’ll be in practice. And, of course, it has little power over international AI developers.—SK   PRESENTED BY THERAD [Listen to the money masters]( [TheRAD]( At this point, the phrase “economic downturn” is as common as sliced bread. But did you know that some of the biggest fortunes were made during economic downturns? 2024 is set to be a challenge, but it’s possible to come out on top. To find out how, check out the Wall Street Journal bestseller [Money Shackles](. In it, Dutch Mendenhall reveals his comprehensive guide to alternative investing. Learn how to break free from the traditional system and build wealth your way. Download the [first chapter for free]( to: - discover how to develop your very own Redefined American Dream™ - learn how to create a positive relationship with money - gain access to a step-by-step process to escape the freedom trap [Download it here](. WORLD [Tour de headlines](#) [UAW strike signs in a pile]Scott Olson/Getty Images UAW’s big strike against Big Three ends. The autoworkers union reached a [tentative deal]( with GM, the last holdout after fellow Detroit car companies Ford and Stellantis reached tentative agreements with the UAW, ending the six-week strike GM said was costing it $200 million per week. Although all the tentative deals must still be ratified by union members, the proposed four-year contracts look like big wins for the UAW, which got its members the biggest wage increases in decades. Netanyahu says no to cease-fire. As Israel continued to push deeper into the Gaza Strip, Prime Minister Benjamin Netanyahu [rejected]( growing calls for a cease-fire to facilitate the release of the more than 200 Israeli hostages held by Hamas or allow more humanitarian aid to reach Palestinians. “Calls for a cease-fire are calls for Israel to surrender to Hamas,” he said. In a first, Israel rescued a soldier held hostage by Hamas (Hamas had previously released four civilians), but one German-Israeli hostage is believed to be [dead](. In the US, the Biden administration said it’s taking action to combat antisemitism on college campuses a day after Jewish students at Cornell were [threatened]( with violence. Apple upgrades its chips. The tech giant hopes to juice its computer sales by putting a new line of [processing chips]( into its Macs that, in keeping with the Halloween theme of Apple’s announcement last night, the company billed as “scary fast.” The Macs with the speedier chips will be available as of next week, and Apple is counting on them to get snapped up during the holiday season after Mac sales slumped 7% last quarter. In addition to the souped-up chips, Apple is also making some computers cheaper: The 14-inch MacBook Pro will go for $1,599, while last year’s model was $1,999. FOOD [McDonald’s is lovin’ the economy’s ‘difficult times’]( [Illustration of a burger with stacks of money as the meat]( Francis Scialabba When you combine rising costs of living with a hankering for chicken nuggets, you get honey mustard stains on your shirt and a butt-kicking [earnings report]( from Mickey D’s. Thanks largely to menu price hikes (which have made a Big Mac combo [cost $18]( at one Connecticut location), McDonald’s reported $6.69 billion in global revenue for Q3 yesterday—a 14% increase from this time last year that beat Wall Street estimates. CEO Chris Kempczinski said it proved that the economy’s “[difficult times]( present an opportunity for the chain. Why are economic woes a McBoon? In the US, McDonald’s has been [gaining market share]( among middle- and high-income customers who are cutting their spending by trading fancy meals for fast food. Meanwhile, people making less than $45,000 pulled back on Big Macs in Q3, but the foot traffic dip was offset by the higher menu prices. McDonald’s also attributed its above-expectation earnings to recent [marketing campaigns]( and to its app, delivery, and in-store kiosks, which drove 40% of Q3 sales. Looking ahead…McD’s will raise menu prices again in California next year to counteract the cost of the state increasing its [minimum wage]( for fast-food workers to $20/hour.—ML   TOGETHER WITH SLACK [Slack]( Unleash the possibilities. Becoming a leader in the pet wellness space is no walk in the park. Bettering the lives of animals while scaling a biz + managing 24/7 teams? Ruff stuff. But [Modern Animal]( was able to do it, thanks to Slack’s top-notch productivity platform. [Read the story](. RETAIL [Skims is going after the hunks]( [Kim Kardashian posing at the announcement of Skims partnership with the NBA]( Dimitrios Kambouris/Getty Images Fellas, make some space in whatever corner of your room is used as a closet. Kim Kardashian’s $4 billion underwear company, Skims, [debuted its first men’s collection]( last week. Presumably inspired by the basketball practice scene in John Tucker Must Die, it’s hitting the courts, too: NBA and Skims announced [a multiyear deal]( yesterday that makes Skims the official underwear partner of the NBA, WNBA, and USA Basketball. Big picture: The market for men’s underwear has long been dominated by Hanes and Fruit of the Loom, but Skims CEO Jens Grede thinks the company can disrupt the industry with its functional fabrics in chic neutral shades. It’s brought in male athletes with plenty of panache to help. Brazilian soccer star Neymar, Oklahoma City Thunder’s Shai Gilgeous-Alexander, and San Francisco 49ers defensive end Nick Bosa were tapped for the first ad campaign. Skims said men accounted for 20% of its website traffic prior to the release of the men’s line. Within the [first five minutes]( of launch, the website had 25,000 orders. Looking ahead…as Skims sees continued success, we may see more than underwear. A men’s shapewear line is reportedly in the works.—CC   GRAB BAG [Key performance indicators](#) [Magic Johnson]Axelle/Bauer-Griffin/Getty Images Stat: Another day, another new high-profile member of the billionaires club: Forbes says Magic Johnson is worth $1.2 billion. He’s the [fourth athlete]( to cross the nine zeros threshold after fellow NBA stars Michael Jordan and LeBron James and golfer Tiger Woods. But only $40 million comes from his time on the basketball court. Turns out he’s also an MVP at investing—he’s made bank from putting money into sports teams, Starbucks, movie theaters, Burger King, 24 Hour Fitness, and, most significantly, if least dramatically, his controlling stake in Iowa-based life insurer EquiTrust. Quote: “I disagreed with nearly every article written about me then.” Sam Bankman-Fried talked to the media a lot, both when he was the face of a crypto exchange that appeared to be thriving and after FTX collapsed (a move just about any criminal lawyer would advise against). Testifying for a [third day]( in the criminal fraud trial against him, SBF mostly claimed not to remember many of the things he said to reporters when prosecutors brought them up, including comments he’d made about the relationship between FTX and Alameda Research and also whether he objected to comments printed in the New York Times about his hair. But he did recall not loving most of what got printed after things went south. Read: Millennial meme marketing must end. ([Embedded]( NEWS [What else is brewing](#) - [X]( is now worth less than half of what Elon Musk paid to buy Twitter last year. A memo to employees said the company was valued at $19 billion—55% less than the $44 billion that Musk shelled out. - [The FDA]( has warned not to use dozens of over-the-counter eyedrops because they may cause infections that lead to blindness. - [FIFA]( has banned the former Spanish soccer federation president who forcibly kissed a player after the women’s team’s World Cup victory from the sport for three years. - [Sesame Street]( is getting a makeover next season. As its streaming deal with Max ends, the show will switch its format from magazine style to two longer narrative segments and one short animated one. RECS [Tuesday To Do List] Watch: The [history]( of how one fed-up gardener created trick-or-treating. Go Gothic: These [novels]( are scarier than any slasher flick. Think fast: Choose from more than 100 [easy DIY costumes]( for that last-minute party invite, or take inspiration from a Japanese contest and go as something [mundane](. Don’t waste it: The [recipes]( to make with your leftover candy. Never fear: Does planning business budgets for 2024 feel scarier than your neighbor’s obsession with Halloween decor? It shouldn’t. Our Financial Forecasting course returns on Nov. 13 to give you the tools to brave the budgeting storms ahead. [Register today](. Holiday hurrah: Wondering which channel is best to sleigh the festive season? We teamed up with [Intuit Mailchimp]( to show you why email and SMS can level up your strategies. [Take a look]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: Today’s Mini will spook you in all the best ways. [Play it here](. Nutritional facts We’ll give you the ingredient list of a popular food product, and you have to name it. Sugar, Corn Syrup, Confectioner’s Glaze (Shellac), Salt, Dextrose, Gelatin, Sesame Oil, Artificial Flavor, Honey, Yellow 6, Yellow 5, Red 3. 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 Brach’s Classic Candy Corn, of course! Word of the Day Today’s Word of the Day is: panache, meaning “flamboyance in style or action.” Thanks to Gretchen from Nashville, TN, for having the flair to make the suggestion. [Submit another Word of the Day here](. ✤ A Note From Intuit Mailchimp This is sponsored content. SMS is available as an add-on to US paid plans only. Visit [Mailchimp.com]( for details. Written by [Neal Freyman]( [Abigail Rubenstein]( Sam Klebanov, [Molly Liebergall]( and [Cassandra Cassidy]( Was this email forwarded to you? Sign up [here](. Take The Brew to work - Marketers: [Marketing Brew]( - Corporate: [CFO Brew](  [HR Brew]( - Tech: [IT Brew](  [Tech Brew]( - Retailers: [Retail Brew]( - Healthcare: [Healthcare Brew]( Get smarter in just 5 minutes - Money & Career: [Money With Katie](  [Raise](  [Bossy]( Business education without the BS - Programs in [Business Essentials]( [Analytics]( and [Leadership]( Interested in podcasts? - Check out ours [here]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2023 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011