☕️ Toxic

The C-suite will never be the same [Advertisement] June 12, 2020 [Read in Browser]( [Daily Brew]( TOGETHER WITH [Electric]( Good morning. Weekend. Now. Please. MARKETS NASDAQ 9,492.73 - 5.27% S&P 3,002.10 - 5.89% DJIA 25,128.17 - 6.90% GOLD 1,735.20 + 0.84% 10-YR 0.673% - 5.20 bps OIL 36.00 - 9.09% *As of market close - Energy: We’ll survey the wreckage in the stock market in just a bit, but for now we’ll leave you with oil [tumbling]( on fears that the economic rebound could take longer than anticipated. - Jobless claims: It’s been the same story for a few weeks now. First-time unemployment claims decreased to [1.5 million last week](, but that’s still an egregiously high number. CORPORATE [Black Lives Matter Reckoning Reshuffles the C-Suite]( [Vacant c-suite chair] Francis Scialabba The past week has brought one of the biggest shifts in corporate leadership since #MeToo. High-level executives [have left]( their corner offices as complaints of mistreatment of black workers, and other troubling behavior, come to light in a newly charged environment around racial justice. No industry is safe from problematic execs In media: You can now add “former” before the following people’s titles: Bon Appétit Editor in Chief Adam Rapoport, NYT Opinion Editor [James Bennet](, founder of the fashion site Man Repeller Leandra Medine, and Refinery29 Editor in Chief and cofounder Christene Barberich. In retail: Yael Aflalo, founder of the sustainable clothing brand Reformation, [posted on Instagram]( that she had “failed” after a former general manager for the brand posted that women of color were “overlooked and undervalued.” Founder of stationery brand Ban.do Jen Gotch resigned as chief creative officer after acknowledging she was “guilty” of being racist. In fitness: When CrossFit dragged its dumbbells in releasing a statement supporting the protests, gyms began cutting their affiliations with the company. But it didn’t end there: CEO Greg Glassman [posted offensive tweets]( about George Floyd, after which brand partners bailed and Glassman resigned. In coworking: Audrey Gelman, CEO of women-focused coworking business The Wing, [announced]( her departure yesterday. Rumblings of a toxic culture for women of color had been growing since March—then lockdown restrictions hammered revenue and forced mass layoffs. - In October, Gelman [became]( the first visibly pregnant woman to cover a business magazine when she appeared on Inc.’s cover. This is Major Challenge No. 2 in a matter of months  “Just like businesses have to change their realities following COVID-19, they have to do the very same in the era of Black Lives Matter,” [writes Marker](. Bottom line: In many of these instances, the alleged problems weren’t just about toxic behavior, they were about hypocrisy. Companies like Refinery29, Reformation, and The Wing talked a big game about supporting people of color, but employees said that didn’t extend to their internal policies. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Executives%20Leave%20Over%20Racial%20Insensitivity%20Amid%20Renewed%20Black%20Lives%20Matter%20Movement:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 MARKETS [Investors This Week]( [Angry] Giphy All the Buzz Killingtons who predicted the recent stock market rally was a charade were proven correct yesterday, as the Dow took its [biggest tumble]( since March and the broader market sold off in epic fashion. What happened: We [wrote]( earlier this week that when individual investors send shares of bankrupt companies skyrocketing 100%+ in a single day...it’s a worrying sign for valuations. But yesterday’s sell-off may reflect deeper worries that spiking COVID-19 cases in some U.S. states will derail the economy’s rebound. - Florida, one of the earlier states to partially reopen its economy last month, reported a [record-high]( 1,698 new coronavirus cases yesterday. Huge states such as California and Texas also have rising caseloads. - In his remarks Wednesday, Fed Chair Jerome Powell [dashed hopes]( that a V-shaped recovery was possible. Bottom line: The market tumble + a higher number of cases indicate early reopenings may have taken the economy two steps forward, 1.5 steps back. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Markets%20Sell%20Off%20as%20Reality%20of%20Rising%20Cases%20Sets%20In:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 REOPENING [June Waits Bring July Dates]( Despite investors' heebie-jeebies, many companies are still targeting July as the month they'll pick up where they left off in March.  Sports: On July 8, Major League Soccer [will return]( with a World Cup-style tournament. The NBA also expects to resume in Orlando, likely on July 30. Entertainment: In its earnings report Tuesday, AMC [said it plans]( to reopen 97% of its theaters in July after suffering a $2.2 billion net loss in Q1. Disneyland in California is slated to [reopen]( July 17, but there’s a [petition]( to delay it over health risks. Auto: Ford [plans]( to bring its plants back to pre-pandemic production rates by July 6. Many U.S. carmakers [resumed operations]( May 18, but at partial capacity. Also happening in July... Pharma: Johnson & Johnson [will begin]( testing its coronavirus vaccine on people, and Moderna will conduct the final-stage [clinical trial]( of its version. The big question: Will new waves of COVID-19 infections disrupt any of these plans? Treasury Secretary Steven Mnuchin [told CNBC]( yesterday, "We can’t shut down the economy again." �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=July%20Is%20Packed%20With%20Activities,%20but%20Will%20COVID-19%20Derail%20Reopening%20Plans?:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 SPONSORED BY ELECTRIC [Time Is Money a Home Security Camera](#) [Electric]( Attention: If you can make IT decisions for your company—and if your company has between 20 and 2,000 employees—Electric has a deal for you. [You take a short meeting with them](. Then they give you a super nice home security camera—for free. But here’s the real deal. [Electric]( is the IT solution that protects your company from security threats, enables remote work at half the cost, and provides full visibility into your IT infrastructure. They’ll bring [peace of mind to your office]( and your home. At work, your company devices and data will be secure, and your stuff will function like it should. On the home front, you’ll have that free security camera. If this was a prominent game show whose title features the word “deal,” we would now say, “We’ll take that deal.” (We can’t say the actual name of the show, because their lawyers are as aggressive as their host is fastidious.) For the best IT and a free home security camera, [get to know Electric](. SOCIAL [Snapplay Has a Good Ring to It]( [Snapchat feature] Snap At a virtual partner summit yesterday, Snap redug its trenches in the mobile app battlefield. Will those moves be enough to put it back in Kylie’s good graces? Entertainment: Snap [announced]( expanded deals for short-form content with Disney, ViacomCBS, NBCUniversal, the NBA, and the NFL. - Snap reaches more U.S. consumers ages 13–34 than Facebook or Instagram—making it attractive to organizations like the NFL that want to hook young fans. Gaming: 100+ million users have played Snap’s in-app games since last year’s launch. Snap is now [partnering]( with game developer Zynga for multiplayer games. Integrations: Yesterday’s really interesting [announcement]( was “Minis,” a developer platform that lets third parties run applications in Snap’s app. Users can coordinate Coachella plans with friends, buy movie tickets, or meditate together. - Sound familiar? Chinese superapp WeChat hooked over 1+ billion users with a combination of social and payment features. + While we’re here: CEO Evan Spiegel [defended]( his company’s decision to stop promoting President Trump’s account in its Discover page, saying Snap is "well within" its First Amendment rights. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Snap%20Unveils%20New%20Entertainment,%20Gaming,%20and%20Third-Party%20Partnerships:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 ENTERTAINMENT [Annnnnd...Action!]( Despite rising COVID-19 cases, Los Angeles County is moving into stage three of its reopening plan. That means today, Hollywood studios can [resume production]( on TV shows and movies. Here’s what will change for... The cast: Actors might need to hit up [Hermione and Ron]( for guidance on green-screen acting, because more sex and fight scenes will be filmed using CGI. There’ll be fewer close-contact scenes in general, too, which might be a more accurate representation of modern times anyway. The crew: Fewer days and shorter hours could [become the norm](, both to limit in-person interactions and boost immune systems. The switch could stress studios’ budgets and viewers’ patience between Fast and Furious installments. You: Live studio audiences are discouraged for now, meaning more laugh tracks and fewer chances to see SNL live. You also might see your first televised zits, since cast members will be DIY-ing their hair and makeup more often. Takeaway: All these changes + COVID-19 PPE + higher insurance premiums = [more expensive budgets](, according to Tyler Perry and other execs Variety spoke to. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Hollywood%20Studios%20Resume%20Production:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 QUIZ [Gotta Quiz Myself I'm So Pretty]( [Weekly news quiz]( How closely did you read the Brew this week? There's only one way to find out: [Take the Brew's weekly news quiz](. WHAT ELSE IS BREWING - [Instacart]( raised $225 million at a $13.7 billion valuation following a surge in business from coronavirus lockdowns. - [New apartment leases]( in Manhattan tanked 62% in May. - [Joe Biden](, the presumptive Democratic candidate for president, called on Facebook to crack down on misinformation ahead of the election. - [Apple]( is launching a $100 million Racial Equity and Justice Initiative. - [Sony]( unveiled its new PS5 console and a lineup of big-name games yesterday.  SPONSORED BY WEWORK [WeWork]( The world is changing—your office should too. We’ve once again teamed up with [WeWork]( to discuss how to navigate the new future of work. In the [second installment of our guide](, we’re talking about the need for flexibility in the workplace. To help you create a workspace designed around your team’s needs—from how and where they work to keeping company culture alive—our guide is worth your time. [Read Part 2 of our guide here](. BREW'S BETS New movies: Spike Lee’s back with Da 5 Bloods, available now [on Netflix](. In the NYT’s words, the film’s here to [tell you]( that “Black Lives Mattered in Vietnam, Too.” Pete Davidson also stars in [The King of Staten Island](, which is out today. Other recs for your Friday... - Watch: Ava DuVernay’s [When They See Us]( on Netflix - Read: Texas Monthly’s [BBQ coverage]( - Listen: The "[Zona Indie](" playlist on Spotify All those recommendations come from The Essentials, our 3x/week newsletter helping to keep you sane during these crazy times. You can get curated tips sent straight to your inbox by [signing up here](. FROM THE CREW With all 50 states at least partially open for business, we asked our readers what kinds of activities they’ve been up to in the past two weeks. Here’s what we found: - 38% of readers have eaten out at a restaurant (not takeout or delivery) - 19% have worked in a group office setting - 30% have shopped at a nonessential retailer or a mall - 33% got a haircut from a professional - 52% have attended a gathering of 5+ people FRIDAY PUZZLE Which U.S. state shares no letters in common with its own capital city? SHARE THE BREW When you share the Brew, you earn rewards. From Brew swag like t-shirts and coffee mugs to exclusive content, we've got something for everyone in our premier rewards program. [Click here to get free swag.]( Hit the button below to start sharing the Brew. [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( FRIDAY PUZZLE ANSWER South Dakota (Pierre)             Written by [Alex Hickey](, [Jamie Wilde](, [Neal Freyman](, and [Eliza Carter]( Was this email forwarded to you? Sign up [here](. WANT MORE BREW? 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