☕ Sacrifice

Liz Truss makes a desperate attempt to keep her job... October 15, 2022 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Cariuma]( Good morning on this beautiful fall weekend. Here’s what’s on our radar today: - Sneaking Milk Duds in to Halloween Ends - Watching Penn State vs. Michigan and the rest of the epic sports weekend - Tracking down a pumpkin ale Have a great one. —Neal Freyman, Matty Merritt, Abby Rubenstein, Max Knoblauch MARKETS Nasdaq 10,321.39 -3.08% S&P 3,583.07 -2.37% Dow 29,634.83 -1.34% 10-Year 4.024% +7.9 bps Bitcoin $19,194.94 -1.02% Tesla $204.99 -7.55% *Stock data as of market close, cryptocurrency data as of 10:00pm ET. [Here's what these numbers mean.]( - Markets: This week the stock market was the [opposite of a snoozefest](, as a torrent of economic data sent markets swinging wildly in both directions. The Dow closed higher for the week, but the S&P and Nasdaq closed in the red. After another nasty day, Tesla shares have now fallen 50% below their peak. ECONOMY [Truss offers up sacrifices to keep her job]( [A broken Big Ben clock]( Francis Scialabba British Prime Minister Liz Truss [sacked]( a longtime political ally and backtracked on another of her signature tax proposals in an attempt to calm dysfunctional markets. It didn’t seem to lower the temperature. Now, Truss is on such shaky political ground that some news outlets are wondering whether she’ll [outlast a head of lettuce]( with a shelf life of 10 days. What happened: Yesterday, Truss threw her finance minister, Kwasi Kwarteng, under the bus after just 39 days on the job, making him the second-shortest-serving leader in that role since 1945. Kwarteng (and Truss) were put on blast after unveiling a “mini” budget that contained unfunded tax cuts, which raised concerns about the UK government’s financial position. Market mayhem ensued. After the mini budget was announced, investors staged a mini rebellion, selling off government bonds so ferociously that the Bank of England had to step in with an emergency bond-buying program to prevent a financial calamity. At first, Kwarteng and Truss said they would keep calm and carry on with their plans. But the pressure grew so intense that Kwarteng ditched one proposed tax cut earlier this month, then yesterday Truss shelved another plan that would’ve reversed a corporate income tax increase. Now, about half of all the tax-cutting plans in that budget are in the trash can—er, rubbish bin. Where do we go from here? Leaders from both parties are calling this administration a show. And while Truss may outlast the lettuce, her credibility perhaps has been permanently damaged by her flip-flopping. The market chaos is impacting regular Brits, too. Already dealing with soaring inflation and an impending recession, they must now contend with [jacked up]( mortgage costs that have risen along with bond yields. And unlike in the US, where homeowners can lock in a fixed-rate mortgage over 30 years, most of the UK’s mortgage rates reset every two or five years. So, when 2.4 million mortgage rates expire in the remaining part of this year and 2023, the people who have them could see their payments double, or even triple.—NF �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Truss%20offers%20up%20sacrifices%20to%20keep%20her%20job%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F10%2F14%2Fliz-truss-sacks-finance-minister-in-a-bid-to-save-her-job%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 CARIUMA [Our fave fall shoes are baaaack]( [Cariuma]( You’ve got a pile of leaves just begging you to crunch them, and [Cariuma](—the sustainable sneaker company loved by skaters, surfers, and celebs—has got the stylish and comfortable kicks for all those festive fall activities filling up your calendar. That’s right: Their bestselling OCA sneakers (with over 20k 5-star reviews)—made from consciously sourced materials including suede, leather, and organic cotton—are finally back in stock after a 77k waitlist , as are the innovative IBI kicks, made from bamboo and recycled plastics. Cariuma’s beloved [styles]( come in a wide range of colors and prints (including limited-edition collabs!) and have been featured in Vogue, Rolling Stone, and GQ. [Shop for fall footwear + get 20% off with code MBOCT20](. �  �  �  WORLD [Tour de headlines](#) [Protestors after pouring soup on a Van Gogh painting]Just Stop Oil An iconic Van Gogh gets souped. Climate protesters [poured soup]( on Vincent Van Gogh’s masterpiece “Sunflowers” at London’s National Gallery yesterday. The protesters, who were arrested by police, are part of a group called Just Stop Oil, which aims to stop the UK government from taking on new oil and gas projects. They’ve staged multiple protests recently, including blocking roadways and gluing themselves to the frame of Leonardo da Vinci’s “The Last Supper.” The museum said “Sunflowers” wasn’t harmed. Kroger and Albertsons make it official. The grocery giant Kroger agreed to [acquire]( its smaller rival in a deal valued at $24.6 billion. While the two may not have the brand affinity of, say, Wegmans, together they would have grocery market share within striking distance of the leader, Walmart. Which could be a problem—regulators are expected to take a hard look at this deal. Alaska’s snow crab season is canceled. For the first time ever, the state’s Department of Fish and Game [canceled]( the winter snow crab season due to a dramatic (and perplexing) plunge in the snow crab population. An estimated 1 billion of the crustaceans have vanished in the past two years, amounting to a 90% drop in their numbers. The cancellation of crab season will hit the US seafood industry hard, particularly in the local communities in Alaska that depend on the harvest. ELON [Liz Truss wasn’t the only one making U-turns yesterday]( [Elon Musk presenting about Starlink at a conference]( NurPhoto/Getty Images Billionaire perfume salesman and SpaceX CEO Elon Musk said yesterday that his company can’t continue funding its Starlink satellite internet for Ukraine “[indefinitely](,” threatening to pull the technology that has kept Ukraine’s military online during Russia’s invasion unless the US government starts footing the bill. Musk tied the decision to a Twitter spat he instigated by posting a proposal to end the war that would result in Ukraine ceding territory (which he may or may not have first discussed with Vladimir Putin). In response, Ukraine’s ambassador to Germany suggested Musk “F— off.” Yesterday, Musk tweeted: “We’re just following his recommendation.” But Musk actually asked the US for cash before the Twitter kerfuffle took place, and his motives are likely financial rather than petty. - Musk claims it’s already cost SpaceX $80 million to provide the service in the face of efforts to jam it. - The cost will grow to $100+ million by the end of the year, according to Musk. Bottom line: As one senior US defense official put it to the Washington Post, Musk’s request that the government start paying instead of SpaceX “sticks the DoD with the bill for a system no one asked for but now so many depend on.” But, like the rest of us, the official knows: “Elon’s gonna Elon.”—AR �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Liz%20Truss%20wasn%E2%80%99t%20the%20only%20one%20making%20U-turns%20yesterday%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F10%2F14%2Felon-musk-ukraine-starlink%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 RESALE [Diesel jeans could never]( [1880s levis found in abandoned mineshaft]( Denim Doctors Earlier this month, a pair of Levi’s [sold for $76,000](. And before your dad asks, yes, the two buyers purchased them with a hole already in them. The pricey jeans were worn by someone all the way back in the 1880s, presumably in the mineshaft where they were found. A match made in denim. 23-year-old Kyle Haupert, one of the buyers of the jeans and a vintage clothes reseller, said he and his friends didn’t know what to expect at the Durango Vintage Festivus, which took place on the plains of New Mexico. “We thought it was going to be the Fyre Festival of vintage,” he [told]( the WSJ. When the jeans were up for auction, Haupert made a deal to cover 90% of the bid while Zip Stevenson, who runs the LA vintage shop Denim Doctors and has some serious pants contacts, chipped in the last 10%. The jeans also reflect a dark moment in US history. A note printed on the inside pocket reads, “The only kind made by white labor.” This slogan was used by Levi’s beginning in 1882 after the US passed the Chinese Exclusion Act, which banned Chinese workers from entering the US. The slogan was discontinued along with the company's anti-Chinese labor policy in the 1890s.—MM �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Diesel%20jeans%20could%20never%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2Fa-pair-of-old-pants-sold-for-over-usd76k%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](#) [Mountain and stream scape from Decentraland]Decentraland Stat: Decentraland, a metaverse company that sells virtual real estate, has just 8,000 daily users despite being valued at [$1.2 billion](. That means it’s worth more than Denny’s, but fewer people use it than attend a high school football game in Texas. Quote: “Yer a wizard, Harry.” Those iconic words were spoken by Scottish actor Robbie Coltrane, who [died]( yesterday at 72. He was most famous for playing Hagrid in the Harry Potter series and making one of the most [delicious-looking cakes]( we’ve ever seen on screen. Coltrane was actually born Anthony Robert McMillan, but changed his name in his twenties to honor the jazz musician John Coltrane. He also had memorable roles in the UK drama Cracker and the James Bond movies GoldenEye and The World is Not Enough. Watch: A never-before-seen video shows how congressional leaders responded during the attack on the Capitol on January 6, 2021. ([January 6th Committee]() CARTOON [Saturday sketch](#) [Regulars on a bike bar]Max Knoblauch WHAT ELSE IS BREWING - [The Fed]( is investigating trades made by Atlanta Fed President Raphael Bostic during restricted periods, rekindling a controversy that has dogged the central bank. Bostic said that the trades were made by third-party managers and were not directed by him. - [Trevor Milton](, the founder and former CEO of electric automaker Nikola, was found guilty of fraud for lying to investors about the business. - [A 15-year-old suspect]( was taken into custody in connection to a shooting that killed five people in Raleigh, North Carolina. - [Beyond Meat]( is cutting about 20% of its workforce, and its COO who allegedly bit someone’s nose post-college football game is also leaving the company. - [The Smithsonian National Air and Space Museum]( reopened for the first time in more than six months, with lots of new treats for AV geeks. BREW'S BETS Weekend conversation starters: - Who exactly are you [supposed to tip]( these days? - How do you [dance when no one’s watching](? - Is [karma]( real? - If you set a microwave to cook for 45 minutes, will it explode? (Someone asked Neal this the other day and he wasn’t sure.) Lights out: The [energy vigilantes of Paris]( are really into parkour. Don’t mi$$ it: The biggest players in fintech, payments, banking, and financial services are gathering at Money20/20 USA this Oct. 23–26. Get the full agenda, keynote announcements, and your pass [right here](.* Nosh worth wagging about: Start your pup on a cleaner + healthier diet with [Nom Nom](’s fresh, individually packaged meals tailored to your pet’s exact needs. [Get 50% off your first 2 weeks](.* *This is sponsored advertising content. GAMES [The puzzle section](#) Brew crossword: Take the private elevator up to corporate in today’s “Executive Level” 15x15 crossword. [Play it here](. Open House Welcome to Open House, the only newsletter section that is a rich man, despite what mom thinks. We’ll give you a few facts about a listing and you try to guess the price. [Cher's mansion in Malibu aerial view]Jason Kirk/Staff via Getty Images Today’s [home]( in Malibu is the former residence of superstar Cher. The 13,200-square-foot mansion is just off the PCH behind a gate and at the end of a long driveway lined with 40 palm trees. Amenities include: - 7 bedrooms + a guesthouse - Pool overlooking the Pacific - Climate-controlled wig room that can fit ~100 hair pieces How much to host a more authentic Burlesque watch party? AROUND THE BREW [Work smarter, not harder]( [Work smarter, not harder]( 🖥 Want immediate access to 200+ Excel shortcuts and 100+ functions? Look no further than the Mac Excel Dictionary Bundle. Also available for PC users. [Shop now](. ⏱ Our most recent episode of Can Brew Do It? explains how to create a great business pitch in just 90 minutes. [Watch here](. 🏼 Is there anything women can’t do? (The answer is no.) Join us for a free leadership workshop with Julia Boorstin, author of When Women Lead, on Oct. 19 at 7pm ET. [Register now](. 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=4904f90a]( ANSWER $85 million � � � � � Written by [Neal Freyman](, [Matty Merritt](, [Abigail Rubenstein](, and [Max Knoblauch]( Was this email forwarded to you? Sign up [here](. 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