☕️ Delayed until Christmas

Nikola's week started real hot. Then... September 12, 2020 [View Online]( | [Sign Up]( [Daily Brew]( TOGETHER WITH [The Motley Fool]( Good morning. The new English Premier League season begins this morning, and today's newsletter authors, Toby and Neal, have a little bet going about who's team will finish higher in the standings this year. Toby is a Manchester United supporter, while Neal roots for Liverpool (the defending champs). What do you think the wager should be? MARKETS NASDAQ 10,853.55 - 0.60% S&P 3,340.90 + 0.05% DJIA 27,665.18 + 0.47% GOLD 1,949.90 - 0.73% 10-YR 0.673% - 0.60 bps OIL 37.52 + 0.59% *As of market close - Stocks: The high-flying Nasdaq had its [worst week]( since March, and the S&P and Dow didn’t do so hot either. - Nation: Historic wildfires continue to rip across the Western U.S. More than 10% of Oregon’s population has been ordered to evacuate their homes, and Portland and Seattle now have the [worst air quality]( in the world. California Gov. Gavin Newsom [called it]( a "climate damn emergency." CORPORATE GOVERNANCE [Mining Giant Caves to Shareholders]( [Iron ore mine] Aaron Bunch/Getty Images Jean-Sébastien Jacques, the CEO of mining giant Rio Tinto, is [stepping down]( in what could be a landmark moment for shareholder activism. First, the backstory In May, Rio Tinto blew up ancient rock shelters in Western Australia sacred to local Aboriginal groups. How ancient? These caves contained artifacts, such as a kangaroo bone sharpened into a tool, showing humans lived there more than 46,000 years ago. Rio Tinto destroyed the caves to get to the iron ore that lies beneath. The commodity is both a mega-export of that region of Australia, known as the Pilbara, and a major source of income for Rio Tinto. - 90% of Rio’s earnings comes from its [flagship iron ore operation]( located in the Pilbara, writes the Financial Times. - And about 60% of global iron ore traded by sea comes from the region. Rio got permission from the Australian government to blast the site, but later apologized for its actions and docked bonuses of a few senior execs. That didn’t satisfy shareholders. Australian pension funds, other Rio Tinto investors, and activists said that response was a measly attempt at reconciliation. In a [statement yesterday](, Rio Chairman Simon Thompson said he listened to shareholders’ concerns about the lack of individual accountability, and that Jacques and two other Rio leaders would be packing up their things in the next few months. The big picture Investors are increasingly scrutinizing companies not only for their profits, but for their attention to environmental, social, and governance (ESG) issues. Recent Black Lives Matter protests have only amplified calls for corporations to boost their focus on social justice problems. - ESG is especially top of mind for mining companies, which often operate in lands owned by indigenous groups. So will Rio bowing to angry shareholders move the needle? Experts say it is an [important moment]( for ESG shareholder activism, but doesn’t necessarily change the longstanding power imbalance between global mining firms and local indigenous communities. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Rio%20Tinto%20CEO%20Steps%20Down%20After%20Shareholder%20Revolt:%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 ECONOMY [An Unlikely Driver of U.S. Inflation]( [Used cars for sale] Francis Scialabba As the economy tries to claw back from the pandemic, consumers have shown a surprisingly strong appetite for cassette players. Used cars are giving a big lift to consumer prices. What’s that mean? The core Consumer Price Index, which tracks price trends sans volatile food and fuel costs, rose 0.4% last month after a 0.6% bump in July that was the [biggest increase]( in nearly 30 years. - The huge bump in the price of used cars and trucks accounted for a whopping 40% of last month's gain.   New car sales, [especially in China](, have rebounded since March lows, but used cars have been the star of the roadshow. What's driving the trend? - With tens of millions of Americans unemployed, people are opting for used cars over new. - And Covid-related [supply chain disruptions]( have made it tough for dealers to get new cars on the lot. Zoom out: Considering the Fed just [switched up its policy]( to accommodate more inflation, this bump in consumer prices isn’t going to do anything to budge chair Jerome Powell's decision to keep interest rates near-zero for a long time. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Used%20Cars%20Sales%20Fuel%20Rise%20in%20Consumer%20Prices:%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 MOVIES [Box Office Update]( [Wonder Woman running in front of U.S. Capitol Building ] Warner Bros. There’s a lot going on in the movies despite nothing going on in the movies. Wonder Woman 1984: delayed to Christmas. Warner Bros. said yesterday it’s pushing back the release of the sequel by [more than two months](, because it spent a lot of money making the movie and it would like to make some of that back. - With about 35% of theaters still shuttered in the U.S., Warner Bros. is betting that a few more months of rising consumer confidence will get butts in the seats. Tenet: True to form, Christopher Nolan’s latest flick is really hard to interpret...from a financial standpoint. It grossed about [$20 million]( in North America last weekend, which would’ve been a big flop in normal times, but these aren’t—you get it. Its performance this weekend will be closely watched. Mulan: The live-action remake was supposed to be a victory lap for Disney, but it’s turned into a major bungle. The film's credits thanked agencies with links to human rights abuses in China’s Xinjiang region, provoking criticism and calls for a boycott. Yesterday, Mulan had a [disappointing opening]( in China. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Wonder%20Woman%201984%20Pushed%20Back%20to%20Christmas:%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 THE MOTLEY FOOL [Fact: There Is a lot of Fiction Out There](#) [The Motley Fool]( When it comes to investing, there’s a heck of a lot of noise out there. Screaming pundits in pinstripes, unsolicited chain emails from uncles, articles with “foolproof” in the title. So how can you know what’s fact, and what is definitely, 100%, holy cow is that some fiction? That’s where we come in. [We’ve put together a handy starter article with the big brains over at The Motley Fool]( that aims to cut through the crud and give you straight up answers about investing. So whether it’s your first foray into the market, or you’ve been doing it for years, we think [this is a must-read]( (yes, we’re bragging). [Give it a read and get to the truth](. AUTO [Nikola’s Shareholders Need a Neck Massage]( [Nikola truck] Francis Scialabba Nikola's week was a lot like Lost—started out real hot then fizzled spectacularly. On Tuesday, the electric truck maker announced a [$2 billion investment]( from GM to help manufacture its new models. Shares jumped more than 40%. Then, on Thursday, short-seller Hindenburg Research published a [report]( calling Nikola an “intricate fraud.” Hindenburg accused Nikola’s founder, Trevor Milton, of nepotism and overstating the level of functionality of Nikola’s unreleased trucks. Nikola called the report a “hit job,” while Milton promised a detailed rebuttal of the report’s claims. Shares fell 8%. But no rebuttal emerged. Milton [tweeted yesterday]( that, on the advice of outside counsel, he would not “comment further now other than saying that we have involved SEC.” The hits kept coming, though. Citron Research [congratulated Hindenburg]( for “exposing” Nikola and offered to cover half its legal expenses. Shares fell another 14%. Bottom line: Nikola has symbolized the rise of special purpose acquisition companies (SPACs) as a popular way to go public. If the Hindenburg report holds up, it “could cast a pall over SPAC deals more broadly,” [Axios writes](. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Nikola%E2%80%99s%20Shares%20Fall%20After%20Rebuttal%20of%20Scathing%20Report:%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 SPORTS [You Call That a Saddle?]( [Riding a horse next to the Tour De France ] MARCO BERTORELLO/AFP via Getty Images The Tour De France, cycling’s premier race, has been underway for two weeks. The French government has [strongly urged]( the typically rowdy fans to stay home, though nothing was specifically mentioned about watching on a horse. Staging a three week, multi-city event in a pandemic has been as tough as it sounds. But cycling’s [culture of cleanliness]( has helped the cause: “We were all germaphobes before,” American rider Tejay van Garderen told the WSJ. “In the Covid era, it’s like that on steroids.” Bottom line: Despite Tejay’s unfortunate choice of words, the race has gone smoothly so far. As of Tuesday, [none of the 166 riders]( had tested positive for the coronavirus. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Tour%20De%20France%20Chugging%20Along:%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 WHAT ELSE IS BREWING - [VMware and Twitter]( are cutting pay for remote employees who move out of the Bay Area, per Bloomberg. - [The UK]( signed a trade deal with Japan, its first major trade pact since Brexiting. - [Florida]( will allow bars to reopen on Monday at 50% capacity. - [Dr. Fauci]( called new U.S. coronavirus data "disturbing." - [The Chinese government]( would rather TikTok shut down in the U.S. than be sold to an American company, Reuters says. BREW'S BETS Crypto can be confusing. So we’ve put together a virtual roundtable, “[The What, Why (and WTF?) of Crypto Investing](,” presented by Grayscale Investments and hosted by our very own Kinsey Grant. The event is September 17th, so [sign up to learn about crypto investing from the experts](.* 0% APR. 14 Months. You’ve already clicked, right? This [cash back card]( can help you save up to $1,148 with no annual fee. It only takes two minutes to apply. [So, like, apply](.* Weekend conversation starters: - What is your favorite island in the [ocean of books](? - Thoughts on [Scottie Pippen’s house](? - Yay or nay on [Spotify karaoke](? *This is sponsored advertising content SATURDAY HEADLINES Holiday szn is fast approaching, but like everything else, celebrations are going to look a lot different this year. Three of these headlines signal real changes happening to holidays, but one is made of tinsel. Can you spot the fake? - "Old Navy to [ban all images]( of Santa without a mask from stores" - "Mountain Dew is reportedly coming out with a [gingerbread flavor]( for the holidays" - "L.A. County [walks back]( Halloween ban, says trick-or-treating 'not recommended'" - "Peeps [not producing]( Halloween, Christmas Peeps due to pandemic" SHARE THE BREW It only takes 3 referrals to earn access to Light Roast, our exclusive Sunday newsletter. Just the right amount of Brew to go with your lazy Sunday morning. You don’t even need to train the dog to fetch it from the driveway. [Share your unique link]( to start racking up referrals. [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]( SATURDAY HEADLINE ANSWERS I'm sure we'll see plenty of masked Santas, but in Old Navy's case, we made that story up.             Written by [Toby Howell]( and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. WANT MORE BREW?  Retail newsletter → [Retail Brew](  Tech newsletter → [Emerging Tech Brew](  Marketing newsletter → [Marketing Brew](  Quarantine newsletter → [The Essentials](  Business podcast → [Business Casual]( [ADVERTISE]( // [CAREERS]( // [SHOP]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright ©2020 Morning Brew. All rights reserved. 40 Exchange Pl., Suite #300, New York, NY 10005