Down Bad

Good morning, or konbanwa if you’re reading this from Japan — where, right now, the food is good, the stock market is bad, and the [hottest July]( on record brought some pretty unbearable temperatures. Today we’re exploring: - Stock market sell-off: The Nikkei 225’s no good, very bad day. - Michelin motivation: The iconic food guide is heading to Texas… thanks to some financial incentives. - Class action: Back-to-school spending is expected to drop this year. Have feedback for us? Just hit reply - we'd love to hear from you! TOGETHER WITH [Sponsor Logo](   After last week’s [disappointing jobs report](, in which US unemployment hit its highest level in more than two years, investors are once again dumping stocks, as a flurry of “risk off” trading activity reverberates around global markets. Most notable of this morning’s flashing red charts is that of the Nikkei 225, Japan’s flagship index, which has closed down 12.4%, its worst one-day showing since 1987. That’s a remarkable decline when you consider all that has happened in that time: Japan’s asset bubble bursting in the early 1990s, the dot-com crash, earthquakes, the global financial crisis, nuclear meltdowns, and COVID-19. It builds on the nearly 6% decline seen on Friday, which means that those two days have now wiped out all of the gains — and then some — that the index had notched in 2024. A rapid appreciation in the Japanese Yen against the US Dollar appears partly to blame for the Nikkei 225’s outsized decline, as [investors unwind]( the “carry trade” which had seen investors borrow in Japan, where interest rates have been very low, and re-invest elsewhere. Last week’s rate hike from the Bank of Japan turned that trade on its head. When America sneezes... Although Friday’s jobs report came with a large [weather-related asterisk](, the fundamental deterioration appears to have been enough to spook investors, with many of the more successful trades this year unwound quickly in the last two trading days. European stocks are also down, with the STOXX 600 off 2.3% at the time of writing, while shares of big US tech stocks are changing hands at significantly cheaper prices in early market trading, with AI darling Nvidia currently down more than 6%. Today’s sharp sell-off follows the most volatile day of the year [last week](, as the stock market’s “fear gauge” (the VIX) rose to its [highest level]( since the pandemic at 47 on Monday. [Read this on the web instead](   Texas could soon become the Lone Star (Studded) State, after Houston’s tourism department confirmed that it’s spending $90,000 a year for Michelin critics to come and review its top eateries over the next [three years](. Houston’s not the only city coughing up either — Austin, Dallas, Fort Worth, and San Antonio are also reportedly paying the $90,000 fee to compete with America’s current culinary hotspots like NY and Chicago, while the state’s tourism department will cover the rest, [according to]( the CEO of Visit Dallas. While the exact reasons that Michelin chooses to include or exclude specific regions from their critical rounds remain largely unknown, Texan officials certainly aren’t the first to pay for the pleasure: Florida [reportedly]( forked out $150,000 for an Orlando-Miami-Tampa Guide, while Visit California [paid]( $600,000 for a state-wide edition. Gastro-tourism The first ever Michelin Guide, originally published by the eponymous tire company to help motorists plan their road trips, was printed almost 125 years ago, but it wasn’t until 1926 that the company started dishing out its famous stars to the best restaurants to stop at [along the way](. Since then, the stars have become perhaps the most trusted seal of foodie approval — and some cities’ chefs have proved much more adept at earning the plaudits than others. Tokyo, for example, is home to a whopping 180 Michelin-starred restaurants, with 12 three-star establishments, 32 with two stars, and 136 one-star (or “high-quality cooking”) eateries. New York is the foodie capital of the US, according to Michelin at least, with 67 Michelin-starred restaurants, while SF is the 14th most decorated city in the world, with 30 spots making the Michelin cut. [Read this on the web instead](   [Sponsored by Incogni]( We’ve been trying to reach you… …about your car’s extended warranty. Tired of getting those calls? They’re a headache… at best. At worst, a sophisticated scam could set you back thousands. [Incogni is the service]( that gives you peace of mind online. By scrubbing your data from 175+ data broker databases and people search sites, Incogni undoes years worth of data collection (think: SSN, DOB, home addresses, health information, and personal contact details). With Incogni, you’ll worry way less about those details falling prey to identity thieves, scammers, and insurers looking for a reason to hike your rates. Protect yourself & friends and family, with [Incogni annual individual and group plans]( at 55% off for Chartr readers. [Get 55% off Incogni annual plans with the code CHARTR]( [Get 55% off Incogni annual plans with the code CHARTR](   With a jam-packed July in the rearview, August marks the height of summer for many vacation-endowed students and parents across the US… but not without the looming shadow of heading back-to-school. Interestingly, this time around, America’s in-store and online shopping carts might be filled with less books and stationery than before. The National Retail Federation’s annual [back-to-class survey](, released last month, forecast the total expected spend on supplies (combined over both college and school shopping) as $125.4 billion, down from a record $135.5 billion last year — more evidence that America’s consumers are starting to pull back on their spending. Back-to-college purchases are expected to come in at an average of ~$1,365 per household, some $490 more than reported planned spending for its graded counterpart. Of course, these days, classroom spending tends not to be just pens, paper, clothes, and backpacks: the largest category for both school and college cohorts is electronic devices, which accounted for ~35% and ~26% of the budgets, respectively. Cutting class Even with spending trailing behind last year’s high, the relative budget for school shopping still remains pretty large considering the [consumer pullback]( that’s been observed so far in 2024. Indeed, as was the case in [2009](, times of economic hardship have seen US households pare back on K-12 purchases, but still shell out for college-bound students. [Read this on the web instead](   More Data - The Park Fire in California has burned through more than 400,000 acres as of this morning, making it the 4th largest wildfire in [state history](. - Noah Lyles became the first American in 2 decades to take Olympic gold in the men’s 100 meters, beating second place by [0.005 of a second](. - Snickers x Pringles: Mars is reportedly exploring an acquisition of Kellanova, the ~$27 billion [snack giant]( behind Cheez-Its, Poptarts, and Pringles. - Katie Ledecky — already the most decorated female US Olympian in history — won her 9th gold medal on Saturday, equalling Russian gymnast Larisa Latynina’s current [world record tally](. - Honesty, leadership, and decision-making: Qualities that Americans value most in [their presidents](. Close call… Robocall tactics are getting more and more sophisticated. But without your data, scammers are stumped. Incogni stops them at the source by dealing with data brokers and people search sites for you, until all your data is wiped. [Take 55% off annual Incogni plans with code CHARTR](. Ad   Hi-Viz - A viz-driven history of the [Ancient Olympics](. - Gross figures: Which Deadpool & Wolverine cameo characters have made the most at the US [box office](? Off the charts: Which company, that just [struck a deal]( with Chinese electric vehicle giant BYD, were we charting about in July? [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. 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