☕️ Race is on

A serial entrepreneur is on the move... January 16, 2021 [View Online]( | [Sign Up]( [Daily Brew]( TOGETHER WITH [Bose]( Good morning. So many things in this world are better crispy, but not dead Christmas trees. If you haven't taken down your holiday decor yet, this is your friendly reminder. And if you still have a pumpkin on your porch...this is your unfriendly reminder. MARKETS NASDAQ 13,030.94 - 0.62% S&P 3,776.56 - 0.50% DOW 30,896.05 - 0.31% GOLD 1,828.40 - 1.24% 10-YR 1.097% - 3.10 bps OIL 52.35 - 2.28% *As of market close - Covid-19 update: The global death toll from the coronavirus topped 2 million. The CDC [warned]( that a highly contagious UK variant could become the predominant strain in the US by March. And President-elect Joe Biden introduced his plan to [speed up]( the vaccination rollout. - Markets: You might have expected investors to rejoice following Biden’s speech laying out a $1.9 trillion stimulus plan. But other headwinds, including disappointing December retail sales and a dragging energy sector, [got in the way]( of celebrations. EARNINGS [Banks Channel Their Inner Annie]( [Banker walking out of a door leaving an umbrella behind] Francis Scialabba Banking titans Citigroup, JPMorgan, and Wells Fargo all [reported earnings]( yesterday and, like Jack Sparrow escaping from the East India Trading company, it went surprisingly well. - JPMorgan and Citi solidly beat analyst expectations, and Wells Fargo grew quarterly profits by 5%. Zoom out: 2020 was a weird year for banks. The home-buying boom led to a rush of [mortgage originations](, which are cash cows for the banks that back them. And a crop of mega-successful IPOs like DoorDash and Airbnb helped boost underwriting revenue. - But banks also set aside record amounts for rainy day funds over the course of the year in case a deluge of loan defaults rolled in from coronavirus-battered businesses.  The deluge never came Thanks to economic stimulus from Congress and lots of help from the Federal Reserve, defaults were kept relatively [in check](. Now, given the arrival of vaccines and Biden’s plans for more aid, banks are starting to stow their umbrellas. - JPMorgan and Citi both shaved down their piles of reserve cash, freeing up $2.9 billion and $1.5 billion, respectively. Still, the general attitude on Wall Street is walk-before-run. “Our credit reserves of over $30 billion continue to reflect significant near-term economic uncertainty,” JPMorgan CEO Jamie Dimon [said]( in a statement.   Wells Fargo and Citi, meanwhile, are still trying to clean up some unforced errors. Wells Fargo paid out another $321 million in customer refunds in Q4 as it tries to put the fake accounts scandal that broke over [four years ago]( in the rearview mirror. Citi is also retooling its internal risk controls after accidentally sending a group of lenders almost $900 million in August 2020. Bottom line: Banks are feeling especially motivated to get back on track in 2021; the Fed has given the greenlight for the industry to restart stock buybacks in the first quarter. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Banks%20Beat%20Earnings%20and%20Express%20Optimism%20for%202021%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F01%2F15%2Fbanks-beat-earnings-express-optimism-2021%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A RECAP [ICYMI]( [Blue Origin launch] Blue Origin Think of this as the Director’s Cut of Morning Brew—all the most interesting news stories from the week that never found a home in the newsletter. The space race is on: Blue Origin, Jeff Bezos’s space company, completed its [first mission of the year]( Thursday to test out a new capsule and booster. The next step to launching a commercial space tourism service? A crewed flight by early April, [CNBC reports](. The Yang Gang is back: Andrew Yang, entrepreneur and former Democratic presidential candidate, formally [announced]( his bid to become mayor of NYC on Thursday. It’s no surprise to anyone who’s followed Yang that his platform includes the “largest basic income program in the history of the country.” But Yang also wants to bring [TikTok Hype Houses]( to the Big Apple. Mealworms are on the menu: For those of you aching to snack on Tenebrio molitor larvae, we have some good news—the EU’s food safety agency found that the yellow mealworm is safe for human consumption, a ruling that could unleash mass production of mealworm smoothies, pasta, burgers, and more, [writes the Guardian](. High in protein and low on carbon emissions...what’s not to like? �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Stories%20You%20May%20Have%20Missed%20From%20the%20Week%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F01%2F15%2Fstories-may-missed-week%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A ENTREPRENEURS [Keep Your Eye on Marc Lore]( [Marc Lore] Mike Pont/Getty Images for AWXII Because this guy’s leaving his current job, and he’s always up to something interesting. The job he’s leaving: US e-commerce boss for Walmart. The backstory: Lore started Jet.com, the online shopping startup that was bought by Walmart for $3.3 billion just 15 months after Jet was founded. Walmart has since folded the Jet.com brand in order to streamline its e-commerce operations under the Walmart.com banner. What’s next? “I’m writing a book. I’m creating a reality TV show. I’m going to probably buy a sports team…” Lore [told the WSJ](. If you think he’s joking, then you haven’t heard his other post-Walmart goal. - Lore is [embarking]( on a multi-decade project to build a futuristic city with an innovative economic framework. “It’s the thing I’m most passionate about,” Lore explained to Recode. Zoom out: Before you call Lore crazy, you should know he’s what business people call a “serial entrepreneur.” Several years before he sold Jet.com to Walmart, he sold Quidsi, the parent of Diapers.com, to Amazon for $550 million. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Marc%20Lore%20Leaves%20Walmart%2C%20Eyes%20Building%20a%20%E2%80%9CCity%20of%20the%20Future%E2%80%9D%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F01%2F15%2Fmarc-lore-leaves-walmart-eyes-building-city-future%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A SPONSORED BY BOSE [Sleep Sheep Out of Work](#) [Bose]( [Bose Sleepbuds™ II]( are tiny, comfortable earbuds that sooth you with relaxing sounds all night long. They’re helping us sleep soundly; they’re also putting sleep sheep out of work. Sleep sheep are a specific breed of sheep who love to appear in the minds of people who can’t fall asleep. But with [Bose Sleepbuds™ II](, sleep sheep are obsolete! The [Bose Sleepbuds™ II]( fit snugly in your ear for passive noise blocking, and they play specially curated, soothing sounds straight from the [free Bose Sleep App](. Anyone who’s got a pair of Sleepbuds? Safe to say their struggles to fall asleep—and stay asleep—are over. Baaaaaaad luck, sleep sheep. [Get your best night’s sleep with the Bose Sleepbuds™ II today](. DATING [Bumble Prepares to Go Public]( [Bumble] Jaap Arriens/NurPhoto via Getty Images Ahead of its [upcoming public offering](, dating app Bumble yesterday dropped its S-1 form. It’s like a dating profile, but companies hold up important financial metrics instead of big fish. Here’s the scoop on Bumble: - The company had 42 million monthly active users in Q3. - It generated $377 million in revenue in the year through September, but posted an $84 million loss during that same period. Bumble’s claim to fame: Giving women pollice verso Even if both users swipe right, only women are allowed to make the first move. If they don’t send a message within 24 hours, the match expires. This women-first approach to mobile dating is reflected in Bumble’s leadership: Founder Whitney Wolfe Herd will become one of the [youngest female tech CEOs]( to take a company public. Bumble’s corporate board is also made up of [more than 70%]( women. Zoom out: Among the thousands of publicly traded companies in the US, only about 20 women have founded and led their business through to an IPO, according to a [recent analysis]( by Business Insider. + Because we know you’re wondering...here’s where [pollice verso]( comes from. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Bumble%20Reveals%20Its%20Financials%20Ahead%20of%20an%20IPO%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F01%2F15%2Fbumble-reveals-financials-ahead-ipo%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A ADVERTISING [No Disrespect to Chatty Geckos...]( But NFL quarterbacks are the [gold standard]( when it comes to insurance spokespeople. Ahead of this weekend’s playoff football games, advertising metrics firm EDO told CNBC that insurance ads featuring a QB who is playing in the game fans are watching “perform two–three times better” than other ads aired in that game. The outperformers On Sunday, Browns QB and Progressive Insurance spokesperson Baker Mayfield is taking on Kansas City QB and State Farm rep Patrick Mahomes in their second-round playoff matchup. Ahead of the showdown, Victoria Bussert, the director of musical theatre at {NAME}-Wallace University, [critiqued]( each superstar’s acting chops for Cleveland.com. - She roasted Mahomes: “He uses unnatural physical gestures that you wouldn’t really use when you’re talking to try and make him look natural.” - But stans Mayfield: “He has so much presence, physically, and he’s actually a brilliant comedian.” Looking ahead...Progressive’s CMO Jeff Charney agrees with Bussert and plans to hand Baker lots of airtime. “We’re going to run heavy this week,” he told CNBC.  �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=You%E2%80%99re%20Going%20to%20See%20Lots%20of%20Insurance%20Ads%20Featuring%20NFL%20Quarterbacks%20Throughout%20the%20Playoffs%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2021%2F01%2F15%2Fyoure-going-see-lots-insurance-ads-featuring-nfl-quarterbacks-throughout-playoffs%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3Da905682a%26utm_source%3Demail_share%0A TAXES [Tax illustration]( Mark Wang This article is part of our [ongoing series]( on taxes and the gig economy. One of the major challenges of filing taxes as a gig economy worker is figuring out which expenses to deduct. Deductions are important because you can use them to lower your tax liability with the IRS. Now, deductions can be confusing for the typical worker. But for the self-employed, for whom the line between the “personal” and the “business” is blurry, they can be tougher to crack than a 12-sided Rubik's Cube. To show the [complexities]( of deductions, let’s discuss two examples: the Uber driver and the Airbnb host. - The Uber driver uses the same car to drive their kids to soccer practice and to drive a client to the airport. The driver can claim auto expenses associated with working for Uber as a deduction on their tax form, but it can be complicated/tedious to track. - The Airbnb host runs into a similar issue, because they may use their house for both personal use and as a rental property. Bottom line: There is one, new-ish deduction that most gig economy workers can take advantage of—the provision on so-called “pass-through” businesses included in the 2017 tax bill. It allows for a 20% deduction of qualified business income.  + Optional homework...read this list on [15 tax deductions and benefits]( for the self-employed. WHAT ELSE IS BREWING - [The National Rifle Association]( filed for Chapter 11 bankruptcy. It’s going to restructure and leave New York to reincorporate in Texas. - [WhatsApp]( has delayed the rollout of its new privacy policy, which led to mass confusion among users. - [Total](, the French oil giant, is leaving the US trade group American Petroleum Institute because of disagreements over climate change. - [In more energy news](...Exxon Mobil is reportedly being investigated by the SEC for allegedly overvaluing one of its key assets. - [Amazon workers]( at an Alabama warehouse will vote next month on whether to form a union. It would be the first at a US Amazon facility. - [Major US airlines]( are banning passengers traveling to Washington, DC, from putting guns in their checked bags ahead of the inauguration. BREW'S BETS One click to double down. That’s all it takes to get access to [The Motley Fool’s]( newest Double Down stocks (past examples include Netflix, Amazon, and Apple). Click (once) [here to join Motley Fool Stock Advisor and see the picks](.* Raise some green. 95% of Americans now live in states with access to medical or recreational marijuana. And [GEO (Good Earth Organics)]( is on the literal dirt floor of this $52 billion industry. [Invest in their growing supplies for cannabis and hemp here](.* Very cool: A Spotify user with synesthesia [groups songs by color](. Success story: One entrepreneur’s take on how Israel [succeeded]( with Covid vaccinations. Weekend conversation starters, for the people you’ve been quarantining with for 10 months and are running out of things to talk about with: - A [unique way]( to determine someone’s Hogwarts house. - Try out these [short questionnaires](: Our favorite is the cube test. - Use this [master list]( of icebreaker questions *This is sponsored advertising content GAMES [Brew Crossword](#) [Crossword]( Francis Scialabba Today's super fun Brew Crossword, written by Zach Halberstam, is called "Look, Ma!" What could it possibly mean? [Find out by playing here](. + Think you have what it takes to make your own crossword? Spoiler: You do. Check out [our tutorial]( and then be sure to submit. If we select your crossword, we'll also send you the iconic Brewneck sweatshirt. 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. [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=a905682a](             Written by [Toby Howell](, [Neal Freyman](, and [Jamie Wilde]( 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](  Recommendations newsletter → [Sidekick](  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