☕ Strings attached

Tech startups announce more layoffs... August 13, 2022 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [CardCritics]( Good morning. Humans have a reputation for being ridiculously good at things that do not matter, like tying cherry stems with their tongues or getting a high GPA in college. But the Baltimore Ravens might just take the cake for excellence in the inconsequential: After their victory on Thursday, the Ravens have now won 21 straight preseason NFL games. —Neal Freyman, Matty Merritt, Jamie Wilde, Joe Abrams, Abby Rubenstein, Max Knoblauch MARKETS Nasdaq 13,047.19 +2.09% S&P 4,280.15 +1.73% Dow 33,761.05 +1.27% 10-Year 2.842% -4.5 bps Bitcoin $24,109.51 +0.05% Apple $172.10 +2.14% *Stock data as of market close, cryptocurrency data as of 8:00pm ET. [Here's what these numbers mean.]( - Markets: After wrapping up another week in the green, the S&P 500 has now posted gains for [four straight weeks](—its longest winning streak since October. Boosted by encouraging data about the jobs market and inflation, some big names, such as Apple, are close to turning positive for the year, per Bloomberg. AUTO [New EV incentives come with strings attached]( [Electric vehicle being helped up like a puppet](Illustration: Francis Scialabba, Photo: Macida/Getty Images The climate, tax, and healthcare bill passed by the House yesterday includes a tax credit of $7,500 for Americans buying electric vehicles. There’s just one small problem: The vast majority of EVs on the market [won’t actually qualify]( for it. The Alliance for Automotive Innovation, an influential trade group, estimates that 70% of the 72 EV and plug-in hybrid vehicles currently available in the US market will not be eligible for the credit. Here’s why Democrats who wrote the bill wanted to accomplish two goals with the EV subsidies: 1) spur electric vehicle adoption to reduce emissions and 2) incentivize automakers to establish more of their supply chains in the US or in allied countries—cutting unpredictable rival China out of the equation. So, to qualify for the credit, EVs would need to… - Be assembled in North America—a provision that will [kick in immediately]( after President Biden signs the law. - Have at least 50% of components in its battery come from North America by 2024, and 100% by 2028. EVS are also going to need to meet new sourcing thresholds for minerals in batteries. Thing is, many of the materials that go into an electric vehicle, such as rare earth metals, aren’t currently produced at home. They come from places like China, the Democratic Republic of Congo, and Myanmar—places the US isn’t especially keen on trading with going forward. Short-term pain for long-term gain The Biden administration thinks automakers are exaggerating the problem, and encouraged them to simply rejigger their supply chains in the next few years in order to comply with the requirements. “Industry is capable of sometimes more than they will at first see,” Transportation Secretary Pete Buttigieg told Reuters, in the same way a parent assures their kid, “Don’t give up on the accordion—you’ll thank me later.” Plus, some automakers, such as Tesla and GM, have already been investing in production in the US, so they’ll be in a stronger position when the restrictions kick in. Bottom line: Overall, this bill is seen as a big win for the US electric vehicle industry and green transportation in general because, despite the tax credit kerfuffle, it provides billions in funding for manufacturing in the US and also establishes a new $4,000 credit for used EVs. + If you’re in the market for an EV…Consumer Reports has the [breakdown]( of which models will qualify for the credit under the law.—NF �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=New%20EV%20incentives%20come%20with%20strings%20attached%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F08%2F12%2Fnew-ev-incentives-come-with-strings-attached%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%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%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A TOGETHER WITH CARDCRITICS [More cash back than we can count]( [CardCritics]( Not because we can’t count that high—because the cash back [this card]( offers is unlimited, which is more than anyone can literally count. [Unlimited 2% cash back]( with no restrictions, to be precise. That’s one of the highest cash-back rates around. And that’s not all: This card boasts a pretty sweet $200 welcome offer, plus it’s a fave among credit card critics. You might be wondering what the catch is, but TBH, we can’t think of one. What we do know is that this card carries an annual fee of $0—a very easy number to count (or not count?) to. [Apply here](. �  �  �  WORLD [Tour de headlines](#) [Salman Rushdie]Ullstein Bild/Getty Images Salman Rushdie attacked onstage. Author Salman Rushdie was [stabbed]( in the neck onstage as he prepared to speak at a prestigious literary event in western New York on Friday, according to state police. Rushdie was airlifted to a nearby hospital where he was placed on a ventilator and was likely to lose an eye, his agent said. A suspect was arrested at the scene. Rushdie has been both a symbol of free expression and the dangers of free speech ever since the publication of his 1988 novel The Satanic Verses prompted Iran’s then-leader Ayatollah Ruhollah Khomeini to call for his death the next year. Rushdie then spent nine years in hiding. The FBI found “top secret” documents at Mar-a-Lago. A judge unsealed the FBI’s [warrant]( to search former President Donald Trump’s Florida home, revealing that the agency was looking for evidence of possible violations of the Espionage Act, as well as signs of removing or destroying evidence and obstruction of justice. A newly public property receipt shows that the agency seized 11 sets of classified documents, including some marked as “top secret.” Trump, meanwhile, maintains he declassified all the material before leaving office. Polio is circulating in NYC. New York City health officials said that the virus was [detected]( in the city’s sewage system, which implies that it’s circulating in the local area. They urged people who aren’t yet vaccinated against the virus—which can cause permanent paralysis of the limbs and in some cases, death—to get their shots. The discovery of polio in NYC comes after the first identified polio case in the US in years: an unvaccinated adult in Rockland County, NY, last month. ENVIRONMENT [This story is really dry]( [A dry River Rhine](Andreas Rentz/Getty Images Europe’s rivers are drying up and no amount of La Mer can replenish them. Amid an ongoing drought, a key point in the Rhine River in Germany [fell below]( 40 centimeters (16 inches) yesterday. At that threshold, the waterway is essentially a no-go for ships carrying critical goods, such as coal and gas. To float safely through shallow rivers, container ships have lightened their loads—dramatically raising the cost of cargo transport and delaying deliveries. The Rhine’s water level hasn’t yet fallen below its lowest ever recorded: 25 cm in October 2018. But experts don’t see any wet weather in the forecast and are predicting that this year’s drought will be even more severe than 2018’s—which was the worst one in 500 years and skimmed billions off of Germany’s GDP. Why are drying waterways so detrimental to the economy? For one, they’re crippling agriculture. European sunflower production is down, compounding a global cooking oil shortage, and grain mills along the Rhine will likely close soon. Cows are producing less and lower-quality milk, and the impacts could get worse as the production of corn (which is used as cow feed) dips way below last year’s yield. Nondomesticated animals can’t escape the drought’s impacts, either, as thousands of dead fish have washed up on the shore of France’s Tille River, and aquatic life is endangered throughout Europe. Zoom all the way out: Historic droughts are currently affecting regions around the globe, from East Africa to Northern Mexico and the Western United States.—JW �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=This%20story%20is%20really%20dry%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F08%2F12%2Feurope-s-supply-chain-agriculture-struggle-as-rivers-dry-up%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%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%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A ENTERTAINMENT [More like 41st Street]( [Fake playbills for Bridgerton the Musical and Shamilton.](Dianna “Mick” McDougall, Photo: Getty Images Summer ’22 isn’t just for debating the definition of a recession and sweating your way through record heat waves—it’s also rife with [legal action]( against rip-off musicals. Last weekend, a church in Texas was served a cease-and-desist order for an unauthorized production of Hamilton. And on Wednesday, the Unofficial Bridgerton Musical canceled its upcoming live concert after Netflix sued its creators. Let’s start with Hamilton, which had more Jesus than we remember. The Door McAllen Church was flooded with attention when clips from its pitchy production of Hamilton went viral last weekend. Viewers noticed the church tweaked the OG lyrics to include more religious themes, and the performance was followed by a sermon with anti-LGBTQ+ messaging. Hamilton’s official reps, The Dramatists Guild, and creator Lin-Manuel Miranda criticized the church for its production. In a tweet Wednesday, Miranda said, “Now lawyers do their work.” There’s only one Bridgerton allowed to cash in. Abigail Barlow and Emily Bear won a Grammy this year for an album of 15 original songs paying homage to the steamy, regal romance. But when the two hosted a for-profit live concert at the Kennedy Center last month, Netflix sued them for copyright infringement. Then again, Netflix loved the project when it was simply free publicity for the show, giving its blessing to the original album, which began as a fan project on TikTok.—MM �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=More%20like%2041st%20Street%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2-unofficial-musical-productions-are-facing-potential-legal-action%3Futm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%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%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A GRAB BAG [Key performance indicators](#) [Calm app]Getty Images/Staff Stat: At least 520 tech startups have [laid off staff]( this year as the worsening economy (and overzealous hiring) clipped the wings of high-flying Covid darlings, according to the tracker Layoffs.fyi. Added to the list yesterday: meditation and wellness app Calm, which [cut 20%]( of its workforce. Calm became the first meditation app to hit unicorn status in 2020, when it raised money at a $2 billion valuation. Quote: “Cash is oxygen. Oxygen is life.” That’s how Peloton CEO Barry McCarthy justified more layoffs at his company. As part of Peloton’s [biggest overhaul]( during McCarthy’s tenure, it’s slashing nearly 800 jobs, raising prices for some of its machines, and outsourcing more operations to third-party providers. “We have to make our revenues stop shrinking and start growing again,” McCarthy said in a memo provided to Bloomberg. Read: The power of hugs in anime. ([New York Times]() CARTOON [Saturday sketch](#) [Sports announcers calling a person touching nectarines at the grocery store like it's a match]Max Knoblauch TOGETHER WITH APOLLO NEURO [Apollo Neuro]( A stressless solution. [The Apollo™]( wearable delivers silent, soothing vibrations to your body that help you recover from stress. Its neuroscience-backed tech doesn’t track your health—it actually improves it in real time, all while helping you sleep, stay calm, and focus too. [Get $40 off your purchase here](. �  �  �  WHAT ELSE IS BREWING - [Fernando Tatis Jr.](, the star San Diego Padres shortstop, was banned by the MLB for 80 games without pay after testing positive for a banned performance-enhancing substance. - [Workers]( without paid leave lost out on about $28 billion in wages during the Covid pandemic, according to a report from the Urban Institute. - [Experts]( are troubled by Canada’s euthanasia laws, AP reports. - [Actor Anne Heche](, who became famous for her portrayal of twins on the soap opera Another World, died at 53 following a car crash. Heche is still on life support so that the OneLegacy Foundation can determine whether organ donation is viable. BREW'S BETS Weekend conversation starters: - [What do you hear](? - Why aren’t [smart people happier](? - Difficult [Pokémon choices]( - Can [gossip be…good](? Thread that is actually useful: This guy taped his mouth before going to bed for the past six weeks. Here are the [eight things he learned](. GAMES [The puzzle section](#) Brew Crossword: Gather ’round the brunch table—today’s Brew Crossword is served (mimosas included). [Play it here](. Open House Welcome to Open House, the only newsletter section that is not afraid to feature another brain-bustingly expensive New York apartment. We’ll give you a few facts about a listing and you try to guess the price. [Manhattan suite in Plaza hotel.]Zillow What today’s [apartment]( lacks in space, it makes up for in amenities and dangerously placed chandeliers. This 904 square-foot “Edwardian Suite” in Manhattan’s historic Plaza Hotel has a giant bathtub that can double as a guest bed, if your mother-in-law prefers an aquatic experience. Amenities include: - 1 bed, 1.5 baths - Access to the “white-glove” service of the hotel - Champagne bar in your building - Technically a hallway How much for a luxurious little box? [Excel shortcut and function guides available!]( [Excel shortcut and function guides available! ]( NEW life hack alert: Master Excel proficiency and efficiency with our Excel Digital Guides + Dictionaries. Made for the on-the-go, go-getter in your life. [Shop now](. Check out more from the Brew: ️ Why did gas prices spike this summer? We explain how sanctions on Russia may have tightened energy supply, and why gas prices vary state-to-state. [Watch now](. “What’s the worst that can happen?” Find out with scenario planning and forecasting. Prove yourself right using data with our [Analytics Accelerator](. ANSWER $1.65 million � � � � � Written by [Neal Freyman](, [Matty Merritt](, Joseph Abrams, [Jamie Wilde](, [Max Knoblauch](, and [Abigail Rubenstein]( Was this email forwarded to you? Sign up [here](. WANT MORE BREW? Industry news, with a sense of humor → - [CFO Brew](: your go-to source for global finance insights - [Future Social](: the Brew's take on the world of social media Accelerate Your Career with our Courses → - [Business Essentials Accelerator](: Become a better communicator, operator, and innovator. - [Leadership Accelerator](: Grow your team, grow yourself, grow your impact. - [Business Analytics Accelerator](: Understand the business of numbers and make better decisions with data. [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2022 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011