☕️ Inflated

Why sheep may be a big part of green energy... April 11, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [AT&T In-car Wi-Fi]( Good morning. The Masters begins today, which means it’s once again time to marvel at the dirt-cheap concession prices at Augusta National Golf Club. The classic pimento cheese sandwich costs $1.50, a chicken sandwich costs $3, and a beer costs $6. Think about it this way: You can get two egg salad sandwiches, a coffee, a breakfast sandwich, a ham & cheese on rye, a chicken biscuit, a blueberry muffin, and a beer for the same price as one honey deuce drink at last year’s US Open for tennis ($22). Of course, it’ll cost you well over $1,000 for a ticket, but that’s not really the point… —Holly Van Leuven, Matty Merritt, Molly Liebergall, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 16,170.36 -0.84% S&P 5,160.64 -0.95% Dow 38,461.51 -1.09% 10-Year 4.560% +19.4 bps Bitcoin $70,080.98 +1.36% Home Depot $350.56 -3.00% *Stock data as of market close, cryptocurrency data as of 2:00am ET. [Here's what these numbers mean.]( - Markets: Stocks [plunged]( yesterday after the new government inflation reading made like that awkward kid from your class who had a glow up before the reunion and came in hotter than expected. Home Depot was one of the hardest hit.  ECONOMY [Investors waiting for a rate cut right now]( [Homer Simpson in water up to his neck saying ]( Simpsons/20th Century Television via Giphy The latest inflation numbers are in and they’re higher than expected: The Consumer Price Index, which measures how much everyday goods and services cost, showed that that last month’s inflation remained stubbornly above where the Fed wanted it to be. Now, the hopes and dreams of the American stock market, which were pinned to an interest rate cut in June, are somewhere near Bikini Bottom. The big numbers from the data released yesterday: - In March, [inflation rose 3.5%]( from the year before, up from 3.2% in February. - The “core” CPI reading, which excludes volatile food and fuel prices, came in even higher, rising 3.8% on an annual basis. That’s the same as in February, but this time it’s serious. - Half of the increases came from rising gas prices and housing. Why is that such a problem? After seeing inflation fall by 3% over the course of 2023, Fed officials believed that higher inflation readings in January and February 2024 represented a hiccup in an otherwise downward trajectory. However, with the March reading also coming in hotter than anticipated, analysts say this is more than a fluke. That means hopes for a June interest rate cut are dashed. It could get political Traders in the Fed funds futures market now don’t expect an interest rate reduction from Jay Powell until September, according to the CME Group. UBS economists also penciled in September, while the ones at Goldman Sachs predicted a more optimistic July. One thing those potential rate-cut dates have in common is they’re closer to the presidential election, which could spice up the typically bland world of monetary policy. Principal Asset Management Chief Global Strategist Seema Shah said that even in July, “the US election will begin to intrude with Fed decision-making.” And even though [international market challenges]( also impact consumer prices, stressed-out citizens will likely take their frustrations to the polls. Voters are paying attention: The Wall Street Journal recently surveyed voters in seven of the states expected to be the most competitive in the 2024 presidential election and found that 74% thought inflation [had moved in the wrong direction]( over the past year.—HVL PRESENTED BY AT&T IN-CAR WI-FI [Boost your car beyond par]( [AT&T In-car Wi-Fi]( Sun’s out, clubs out. It’s golf season, and that means it’s time to dust off your swing and hit the range. But why limit the fun to the fairways and greens? With unlimited AT&T In-car Wi-Fi, your drive will be as rewarding as, well, your drive. Stay connected while en route to the clubhouse with [all your favorite podcasts, recaps, and live tournament broadcasts](. Talk about a hole in one. Gotta make a quick 1:1 before teeing off? [AT&T In-car Wi-Fi]( can help you crush your business calls so you can crush a round of nines. Plus, it powers lifesavers like real-time GPS and voice assistant. [Tee up your drive](. WORLD [Tour de headlines](#) [US President Joe Biden and Japanese Prime Minister Fumio Kishida raise their glasses to toast during a State Dinner at the White House]MANDEL NGAN/AFP via Getty Images Japan’s PM feted at state dinner, as Biden works to counter China. In addition to enjoying salmon tempura, dry-aged rib-eye beef, cherry blossom decor, and a performance by Paul Simon as the guest of honor at last night’s [state dinner]( Japanese Prime Minister Fumio Kishida likely chatted about expanding military and industrial ties. The fancy meal (and the rest of the leader’s US visit) symbolizes the two countries’ efforts to strengthen their relationship to help fend off potential threats from China. But this overture to Japan, an important ally, highlights the difficulty President Biden faces as the US weighs whether to allow Japan’s Nippon Steel to [purchase]( US Steel. Republicans block vote on surveillance bill after Trump objects. In defiance of their GOP colleague House Speaker Mike Johnson, far-right Republicans [blocked]( a bill to renew a key section of the Foreign Intelligence Surveillance Act, which expires soon. FISA allows a controversial warrantless spying program targeting foreigners abroad that its defenders say is vital to combating terrorism and gathering intelligence. The defection came after Trump posted “KILL FISA” on Truth Social, bringing internal Republican tensions to the fore since Johnson says passing the bill is necessary for national security. EPA imposes limits on “forever chemicals” in drinking water. You’ll likely soon be drinking less perfluoroalkyl and polyfluoroalkyl substances, known as PFAS, thanks to the EPA setting the first-ever national [restrictions]( on how much is allowed in tap water. The agency is imposing the strict new rules because PFAS have been associated with higher risk of cancer, heart disease, and several other health problems. Some states already measure and limit PFAS but areas that don’t will have three years to start and another two to reduce PFAS if the levels they find are too high. ENTERTAINMENT [Broadway is crowded with April premieres]( [Broadway street sign]( Saez Romero/Getty Images Good luck trying to find a spare dressing room—Broadway is packed. The musical adaptation of S. E. Hinton’s novel The Outsiders opens tonight, but audiences in search of the hot new show will hardly have any breathing room as 13 other productions are also slated to [open]( before the end of the month. A spring premiere scramble is standard on Broadway as producers hope to stay fresh in Tony voters’ minds before the April 25 cutoff for award eligibility. But this year, nearly a third of the 2024–2025 Broadway season will open this month, according to an [analysis]( from Time Out. Nine of those shows will open in the final week before the cutoff. On the outside, it looks like Broadway is so back, baby. But industry vets fear the scene might be oversaturated. Especially since theater attendance this season is still down 16% compared to where it was at the same point in 2020, according to the New York Times. And those coveted Tony noms (and wins) sell tickets. It’s going to take a lot to stand out this season: There’s reimagined well-known IP like Water for Elephants and Back to the Future. Hillary Clinton and Malala Yousafzai are [attached]( to the suffragist musical Suffs. Even Netflix is heading to the stage to help produce The Crown creator Peter Morgan’s play Patriots.—MM PRESENTED BY CARDCRITICS [CardCritics]( You’ve earned it. Ready to earn the cash rewards you deserve? This credit card offers [unlimited 2% cash rewards]( a generous welcome bonus, a long intro APR, and more. Can your card compete? [Learn more about the perks](. ENERGY [Sheep are a solar panel’s best friend]( [Sheep graze around solar panels in PA]( Lawdermilk/Getty Images News that’ll make science and econ teachers high-five: Incentivized by tax breaks in the Inflation Reduction Act, Wall Street big dogs are softening the green transition’s rural impact by paying local farmers to graze their sheep around solar panels and prevent grass from growing too high, the Financial Times [reported]( this week. It’s called solar grazing. And while the practice of ditching pollutant-heavy lawnmowers for sheep isn’t new, it is spreading rapidly as more investors pivot to green energy. - The number of sheep-mowed solar farms in the US has multiplied 10x over the past two years, according to the American Solar Grazing Association. - Meanwhile, the US solar industry grew at its fastest rate ever last year, thanks in part to backing from the energy subsidiaries of large financial institutions like Berkshire Hathaway. This is “the biggest opportunity [the sheep] industry has seen in at least a generation,” one rancher told the FT. After decades of lagging demand for wool and lamb meat, solar grazing is giving some farmers a [side-hustle]( revenue stream (~$1/acre grazed) and free food for their sheep, which helps solar companies garner local support for their ventures.—ML GRAB BAG [Key performance indicators](#) [A hand giving money to gold Costco cards]Francis Scialabba Stat: Toilet paper and giant tubs of peanut butter might be at the top of your Costco shopping list, but the big-box chain is also turning gold into, well, gold. Costco started selling gold bars to its members last August, and Wells Fargo analysts [believe]( that the product is now bringing in between $100 million and $200 million a month. The retailer doesn’t reveal the price of the 1-ounce bullion to nonmembers online, but it’s estimated to be ~2% above the spot price gold trades at, per CNBC—and that price has soared since Costco got into the [gold game](. The price of gold has gone up 13% this year and reached record highs as investors pile in amid inflation worries. Quote: “We continue to learn and evolve. We would have never imagined the Dune thing. We would have never created it knowing it would be celebrated or mocked.” AMC’s chief content officer knows what you’ve been saying about the theater chain’s popcorn buckets. The executive admitted that the internet’s raunchy response to its Dune-themed bucket was unexpected in an [interview]( with Variety and noted that despite all the, erm, buzz around the product, collectible buckets make up only a small part of AMC’s food and beverage sales. Still, she was pretty impressed that the bucket, which does not look like anything else to us, got its own SNL sketch, saying, “You couldn’t make it happen if you wanted to.” Read: This woman (and her fertility startup) will decide which babies are born. ([Wired]( NEWS [What else is brewing](#) - [Arizona Republicans]( shut down Democrats’ attempts to overturn the 1864 abortion ban the state’s Supreme Court revived this week. - [An Israeli airstrike]( killed three sons of Hamas political leader Ismail Haniyeh. It’s not clear how this will impact cease-fire talks: Haniyeh said the strike was carried out in “the spirit of revenge and murder,” while Israel claimed the three were militants. - [Allen Weisselberg]( the former CFO of the Trump Organization, was sentenced to five months in prison for giving false testimony in the New York attorney general’s civil fraud suit against Trump and his company. - [Italy]( began a new slander trial against Amanda Knox, the latest in a long-running saga that continues even after she was cleared of murder charges. The alleged slander stems from a false accusation Knox made while being questioned by police. - [The postal service]( plans to raise the price of “forever” stamps to $0.73 in July, so you may want to get yours now. - [Margot Robbie]( and her production company are working on a Monopoly movie, and we’re looking forward to a press tour where she wears a monocle. RECS [To do list Thursday] Watch: Why [streaming]( stopped being cheap. Destination inspiration: UNESCO named 18 new [global geoparks]( to add to your list of dream vacations. Play: There’s a new, [less competitive version]( of Scrabble, so you don’t have to memorize the list of acceptable two-letter words. Look: These [award-winning nature photos]( capture the world around us at its most alluring. Last chance: Map your road to financial independence at Money with Katie’s free live workshop tonight at 7pm ET. [Reserve your spot now](. What’s the future of energy?: Hydrogen is key to powering EVs, spaceships, aircrafts, and more. [Learn more about how you can invest in a leader, Infinity Fuel Cell & Hydrogen, Inc.]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: Before we share the link to the puzzle, please clap, because Morning Brew’s crosswords have been named one of the [10 best free crosswords to play right now]( See why IGN called Mary’s puzzles full of “idiosyncratic charm” by solving today’s [idiosyncratic and charming Mini](. Three Headlines and a Lie Three of these headlines are real and one is faker than a short Midwestern goodbye. Can you spot the odd one out? - French spies are [immune]( to honeytrap schemes as their wives ‘already know they’re having affairs’, France’s ‘MI6’ reveals - Commercial featuring nuns taking potato chips for communion [sparks]( outrage in Italy - Ultra rare Moon Pie package misprint from last eclipse [sold]( for nearly $3,000 - Have a tattoo you regret? PetSmart will [pay]( to cover it up 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 Moon Pie one. Word of the Day Today’s Word of the Day is: feted, meaning “honored publicly with a lavish celebration.” Thanks to Caroline from Burlington, VT, for a suggestion worth throwing a party for. Submit another [Word of the Day here](. ✤ A Note From Infinity Fuel This is a paid advertisement for Infinity Fuel Cell & Hydrogen, Inc.’s Reg CF offering. Please read the offering circular at [(. Written by [Neal Freyman]( [Abigail Rubenstein]( [Holly Van Leuven]( [Matty Merritt]( and [Molly Liebergall]( Was this email forwarded to you? Sign up [here](. 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