☕️ Luxury lapped

LVMH suffers from champagne problems... July 25, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Miso Robotics]( Good morning. The global IT outage caused by a botched CrowdStrike update on Friday is expected to cost US Fortune 500 companies $5.4 billion, insurers estimate. And for their troubles, CrowdStrike is offering…discount pad thai. According to TechCrunch, the cybersecurity firm sent its partners [$10 Uber Eats gift cards]( to show it was sorry for “the additional work that the July 19 incident has caused.” The email to partners also included the line (for real), “apologies for the inconvenience,” which now gives you cover to use it for any mistake you’ve made under $5.4 billion. —Sam Klebanov, Molly Liebergall, Cassandra Cassidy, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 17,342.41 -3.64% S&P 5,427.13 -2.32% Dow 39,853.87 -1.25% 10-Year 4.286% +5.0 bps Bitcoin $65,470.41 -0.76% Tesla $215.99 -12.34% Data is provided by *Stock data as of market close, cryptocurrency data as of 6:00pm ET. [Here's what these numbers mean.]( - Markets: Big Tech suffered big losses yesterday after Tesla and Alphabet posted disappointing quarterly results the day before. The Magnificent Seven tech stocks [lost]( a combined $750 billion in market cap for their worst day ever, while the S&P 500 and the Nasdaq had their worst days since 2022—with the S&P ending its longest streak without a 2% dip since the financial crisis began in 2007, per Bloomberg.  RETAIL [No popping bottles at LVMH as luxury sales slow]( [Champagne sales down]( Kim, Photo: Adobe Stock Waning appetites for the “caviar by the spoonful, washed down by champagne” lifestyle are hurting the high-end conglomerate LVMH. The French luxury empire behind brands like Louis Vuitton and Hennessy said this week that people are [spending less]( on its haute handbags and customers are cutting down on its upscale cognac and champagne. Tightening LV belts LVMH’s stock dropped over 4% on the London Stock Exchange yesterday after the company reported a sales slowdown. - The downturn hit particularly hard in Asia (excluding Japan), where sales fell 14% last quarter compared with Q2 of 2023. Japan stuck out as a bright spot—the company said sales grew there thanks to a weaker yen, which had Chinese tourists chasing bargains at its boutiques. - Operating profit dropped 8% in the first half of the year from the same period in 2023. LVMH noted that more modestly priced products sold worse than upscale items, indicating that economic challenges were weighing on the middle class. The retreat from prestige purchases marks the end of the conspicuous consumption boom of 2022 and 2023 that lifted the luxury industry, and competing brands such as Burberry and Gucci are also struggling. Publicity splurge But its brands still have cultural power. Even if your wardrobe consists mostly of Target couture, you’ll be seeing a lot of LVMH in the coming days. The company spent over $160 million to become a major sponsor of the Paris Olympics with bespoke items from its subsidiary brands gracing the festivities. - The Olympic torch has been portered around in a Louis Vuitton trunk. - Athletes will be awarded medals designed by the jeweler Chaumet. - Berluti teamed up with French fashion guru Carine Roitfeld to design the uniforms the French team will wear at the opening ceremony, which 1.5 billion people worldwide are expected to watch. In another bold sports foray…LVMH is in talks with Formula 1 to have its luxury watch brand Tag Heuer replace Rolex as the timekeeping sponsor of the world’s most popular motorsport, which would be a major publicity coup.—SK PRESENTED BY MISO ROBOTICS [Fast-food’s future = kitchen AI]( [Miso Robotics]( Working the local burger joint’s fryer is tough—so much so that it’s getting harder and harder for fast-food restaurants to staff their kitchens. In fact, ~3m jobs will go unfilled in the US alone. Thankfully, “[Miso Robotics]( has created some of the only restaurant-robot experiences that actually work.” That’s what Fast Company said in one of Miso’s back-to-back Most Innovative list inclusions. It’s why brands like White Castle turned to Miso’s AI-powered robot, Flippy, to operate their fryers and boost their profits up to 4x. Now, Miso’s ready to scale. They’re even [collaborating with NVIDIA](. To fuel their growth, Miso’s opened a funding round for investors to tap into the $1t fast-food industry’s automation. [Check out Miso’s investment opportunity and bonus stock offer today](. WORLD [Tour de headlines](#) [Israeli Prime Minister Benjamin Netanyahu addresses the US Congress]Justin Sullivan/Getty Images Netanyahu defended the war in Gaza to (some of) Congress amid protests. As thousands protested outside the US Capitol, Israeli Prime Minister Benjamin Netanyahu [addressed]( a joint session of Congress yesterday—though more than 60 Democrats chose not to attend, including former House Speaker [Nancy Pelosi]( and Kamala Harris (nearly 100 interns also called in sick as a protest). Harris cited a scheduling conflict and will meet with him later in the week, as will Donald Trump. In his pugnacious speech, Netanyahu pledged to achieve “total victory” in Gaza and did not mention the status of ongoing negotiations for a cease-fire and return of hostages. He said the US and Israel must stand together and praised both Trump and President Joe Biden, while dismissing the protesters as “Iran’s useful idiots.” Biden says he passed the torch for democracy despite “merited” second term. Speaking to the nation from the Oval Office for the first time since dropping his reelection bid and endorsing Kamala Harris, President Joe Biden [said]( “I revere this office. But I love my country more.” He said that he left the presidential race because it was time for fresh, younger voices. “Nothing, nothing can come in the way of saving our democracy,” he said in the 11-minute speech. “That includes personal ambition.” Biden pledged to keep fighting on issues like gun control and Supreme Court reform and praised Harris as experienced, tough, and capable. The NBA sticks with Amazon for broadcast deal. Blowing past Warner Bros. Discovery’s attempts to play defense by [invoking]( its matching rights to try to keep games on TNT, the basketball league said yesterday it had [signed]( 11-year media rights deals with Amazon, Disney’s ESPN, and Comcast’s NBCUniversal worth $77 billion cumulatively. The NBA said that the last-minute offer from Warner Bros. “did not match” Amazon’s offer to put the games on Prime Video. The new deals mean the NBA will get more than twice as much in fees from broadcasters per season than it does now. But TNT fired back that the NBA can’t reject its offer and said it plans to “take appropriate action,” which is likely code for a lawsuit. SOCIAL MEDIA [Grindr appears to be blocked in the Olympic Village]( [Screenshot of Grindr block in Paris Olympic Village]( via X Parisians will be hard-pressed to swipe their way into a gay Olympic affair this summer: The popular gay dating app Grindr is partially disabled for the Paris Olympic Village, according to [users]( who [reported]( getting a “No profiles available” screen this week when they set the athlete-centric location as their search area. Olympians can still access dating apps within the Village, the Paris 2024 organizing committee [told]( the Daily Mail, but “for some [apps], geolocation has been deactivated by the app publisher.” Grindr hasn’t commented, but this wouldn’t be the first time it’s restricted Olympic swiping. Why? To protect the privacy of athletes who aren’t open about their sexuality—especially those hailing from countries where homosexuality is criminalized. - In 2016, a Daily Beast article about Grindr at the Rio Games outed some Olympic athletes, including some from what it called “notoriously homophobic” countries. - During the Tokyo Games in 2021, TikTok users posted viral screen recordings of matches with Olympians on the app that included athletes’ faces and identifying information. To help gay Olympians find each other without being outed, Grindr changed its privacy settings for the 2022 Beijing Winter Olympics to hide profiles located in or around the Village from users anywhere else in the world. At this year’s Games, only 155 of ~10,500 athletes are [openly gay]( per Outsports.—ML FROM THE CREW [The Crew]( Join the Brew Crew. It’s too hot outside to pay full price for anything. So we’re giving you a treat: [up to 70% off our best-selling Morning Brew merch](. You can snag mugs for $6, the comfiest Brew hoodies for $14, tees for $9, and more. The sale is almost over, so you don’t want to miss out—[rep the Brew today](. SCIENCE [Scientists say this rock can make its own oxygen]( [Polymetallic nodules, collected from the ocean floor, sit in simulated seawater in chemist Franz Geiger’s laboratory at Northwestern University. Platinum electrodes measure the nodules voltages.]( Bridgewater/Northwestern University Dark oxygen isn’t just a great name for a Kentucky Derby-winning horse. It’s also what scientists are calling a discovery that could have implications for the critters at the bottom of the ocean and the treasure-seeking, deep-sea mining industry. In a [study]( published in Nature Geoscience, scientists examined large chunks of minerals called polymetallic nodules in the Clarion-Clipperton Zone of the Pacific Ocean and found they can [produce]( oxygen in total darkness (hence: dark oxygen). - This challenges the long-standing thinking that organisms need light to make oxygen through photosynthesis and could change how scientists view the [origin]( of life. - Scientists hypothesize that these nodules act as a “geobattery,” emitting electrochemical activity that separates H2O into oxygen and hydrogen. The human world, it’s a mess If the study’s findings hold true in further research, it may make the controversial practice of deep-sea mining, which retrieves minerals from the ocean floor (via polymetallic nodules), even more contentious since it could deplete the oxygen source that deep-sea life may depend on. (The study received funding from companies involved in mining.) But…some see deep-sea mining as necessary since the minerals—mainly iron, manganese, lithium, cobalt, and copper—are crucial for producing green technology like solar panels and EV batteries.—CC STAT [Prime number](#) [Cubans in line to enter the US embassy in Havana.]Cubans in line to enter the US embassy in Havana. Yamil Lage/Getty Images A whole lot of Cubans recently decided they no longer wanted to live in Cuba as the country’s economy tanked and the government suppressed dissent. Between 2022 and 2023, 10% of the country’s population [emigrated]( newly released official figures show. That’s 1,011,269 people—a group larger than the entire population of Austin, Texas. Experts told The Miami Herald it was the biggest migration wave out of Cuba, both before and after its revolution in 1959, reflecting growing disillusionment, especially among young people. Most of those who left ended up in the US, Canada, and Mexico, per Semafor. NEWS [What else is brewing](#) - [Salt Lake City]( will host the 2034 Olympics—though the decision came only after the IOC pressured Utah to help stop an FBI investigation into an Olympic doping scandal. - Here in 2024, the opening ceremony isn’t until tomorrow, but the Olympic Games are off to quite a start. During the first match of the men’s soccer tournament, [Morocco fans]( ran onto the field to protest a goal for Argentina that was ultimately disallowed, cementing Morocco’s win. - [Monday]( was the world’s hottest day ever on record. It broke the previous record set by…Sunday. - [The shooter]( who tried to assassinate Donald Trump googled “How far away was Oswald from Kennedy?” a week before the rally, FBI Director Christopher Wray told a Congressional committee. - [The UK’s King Charles]( is getting a £45 million ($58 million) pay raise after profits at the public estate that supports the monarchy more than doubled. He’s also planning to convert two of the [Bentleys]( that he’s driven around in to biofuel cars in keeping with his green ambitions. RECS [To do list Thursday] Hop in the pool: Science says you [don’t have to wait]( after you eat to swim. Catch some Zzzs: How to [sleep well]( when it’s hot out. Be glad you can’t smell it: [This livestream]( lets you watch a giant Corpse Flower bloom without experiencing the odor. Watch: Why the internet is [running out of electricity](. Commercial real estate: Learn the latest on office, industrial, and life science real estate with [The Corporate Real Estate Insider podcast](. Subscribe on your favorite [podcast platform or YouTube]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: “___ Jr.” (2024 presidential candidate) is your sample clue of the day. If you know who’s running against Trump and Harris, [fill in the grid here](. Three Headlines and a Lie Three of these headlines are real and one is faker than the taste of banana-flavored taffy. Can you spot the odd one out? - 72-year-old [fends off grizzly bear]( with handgun while picking huckleberries - Is [silica]( a trendy new smoothie supplement? - Sharks off Brazil coast [test positive]( for cocaine - Bratz releases [Kamala Harris doll]( to capitalize on viral meme 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=a905682a]( ANSWER We made up the one about the VP Bratz doll. Word of the Day Today’s Word of the Day is: pugnacious, meaning “displaying eagerness to fight.” Thanks to Katie B. from Richmond, Virginia, and several other aggressive readers for the forceful suggestion. Submit another [Word of the Day here](. ✢ 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 [Neal Freyman]( [Abigail Rubenstein]( Sam Klebanov, [Molly Liebergall]( and [Cassandra Cassidy]( Was this email forwarded to you? Sign up [here](. Interested in podcasts? - Check out ours [here]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2024 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011