☕ Netflix takes on Blockbuster

Dan Snyder might finally sell the Commanders... [Advertisement] November 03, 2022 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [The Motley Fool]( Good morning. The Houston Astros no-hit the Phillies to tie up the World Series at 2–2 last night, which means Mattress Mack is inching closer to making sports gambling history. Jim “Mattress Mack” McIngvale, a Texas furniture mogul known for placing huge bets on sports, has wagered about $10 million on the Astros to win the World Series. If they do win, he’ll earn almost $75 million—the largest payout on a legal sports bet ever in the US. “I have a high tolerance for risk,” Mack says. —Neal Freyman, Matty Merritt, Abby Rubenstein MARKETS Nasdaq 10,524.80 -3.36% S&P 3,759.69 -2.50% Dow 32,147.76 -1.55% 10-Year 4.105% +5.9 bps Bitcoin $20,159.18 -1.49% Airbnb $94.41 -13.43% *Stock data as of market close, cryptocurrency data as of 3:00am ET. [Here's what these numbers mean.]( - Markets: Jerome Powell did not say what investors wanted to hear about future rate hikes, sending [stocks plummeting](. More on that in just a sec... - Stock spotlight: Airbnb shares did a swan dive yesterday despite reporting its most profitable quarter ever the day before. The catch? The company warned of challenges for the next quarter. You will also be interested to hear that Airbnb is working on showing you an “all-in” rate that encompasses all those fees earlier in the booking process.  ECONOMY [The response to yesterday’s Fed announcement]( [A meme saying "everyone disliked that" ]( Fallout 4 Facing a series of interest rate hikes that threaten to slow the economy, weary Americans are asking, “Are we there yet?” Fed Chair Jerome Powell, the grumpy dad driving the car, delivered a firm message yesterday: “No.” After Powell announced the central bank’s [fourth straight interest rate hike]( of 75 basis points, he signaled a plan that sent investors scrambling for the exits: - Powell indicated that it might be time to lower the size of rate hikes as soon as the next meeting (good news). - But...because inflation is being so stubborn, he also expects to raise rates to a peak level that’s higher than anticipated. So to recap: smaller hikes, but on aggregate a tighter squeeze on the economy. Stocks crashed after hearing this news. Powell faces his critics The Fed has recently been getting heat for deliberately throttling the economy with its rate-hike extravaganza. Progressive Democrats, such as Sen. Elizabeth Warren, have told Powell to cut it out or millions of Americans will lose their jobs. In response, Powell and other big-name economists have argued that a full Heimlich maneuver, however painful in the moment, is needed to dislodge inflation from the economy. The alternative—letting inflation run rampant—would be more damaging for American prosperity, they say. And inflation isn’t finished with us yet. Recent data shows that the Fed’s rate hikes have not pierced the armor of America’s economic engine: - American consumers are still continuing to [drop cash]( like they won the Powerball jackpot. In recent earnings reports, execs in industries spanning hospitality to transportation to banks said they saw no indication of consumers pulling back. McDonald’s is even planning to raise prices because people seem willing to pay. - The labor market is still incredibly strong. The unemployment rate is at a 50-year low and there are 1.7 job openings for every unemployed person. For all those reasons, Powell said the Fed has “some ways to go” with hiking interest rates.—NF �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=The%20response%20to%20yesterday%E2%80%99s%20Fed%20announcement%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F11%2F02%2Fthe-fed-hikes-rates-yet-again-signals-more-to-come%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 THE MOTLEY FOOL [If the bear market has ya down…]( [The Motley Fool]( We have a nice dose of economic optimism for you. Yes, the stock market has taken a hit, but with that, the stock prices of some pretty fantastic companies have also dropped. Looking at the historicals, [the S&P 500 has gained over 400%]( since the bottom of the 2008–2009 financial crisis bear market. Here’s an even better stat: Since the same rock-bottom point in ’09, Motley Fool Stock Advisor’s average pick has [beaten the S&P by an average of 37 percentage points](. If you’re looking to carpe this economic diem, check out [Stock Advisor’s recommendations for the 10 best stocks to buy right now](. WORLD [Tour de headlines](#) [Foxconn employees take shuttle buses to head home on October 30, 2022 in Zhengzhou, Henan Province of China]Foxconn employees take shuttle buses to their hometowns after Covid-19 infections were reported in Zhengzhou. VCG/VCG via Getty Images. The world’s biggest iPhone plant has been locked down. China imposed a seven-day [lockdown]( yesterday on the Zhengzhou area that houses the largest iPhone assembly factory, run by Foxconn, as part of the country’s zero-Covid policy. Quarantine practices at the manufacturing facility already had workers fleeing, and it’s possible that the new restrictions could hinder Apple’s ability to meet demand for the iPhone 14. CVS, Walgreens, and Walmart agree to pay $13 billion over opioids. The pharmacy chains have reached a [tentative deal]( to settle thousands of lawsuits brought by state and local governments that accuse them of contributing to the opioid epidemic. If the deal goes through, CVS and Walgreens will each cough up around $5 billion, and Walmart will reportedly be on the hook for $3 billion. Yesterday in Musk: The new Twitter CEO plans to cut [about half]( of its workforce, about 3,700 jobs, on Friday in an attempt to slash costs, according to Bloomberg. And the majority of the employees who remain will be required to come back into the office—a reversal of the company’s previous work-from-anywhere policy. Musk could also start charging $8/month for blue checks as soon as Monday, Bloomberg reported. Keep in mind: As of today, Musk has owned Twitter for just one week. SPORTS [Dan Snyder might sell the Commanders after all]( [Fans urging Dan Snyder to sell the Commanders]( Michael Reaves/Getty Images In the biggest about-face in the NFL since Tom Brady decided to unretire, Dan Snyder has taken a big step toward [selling]( the Washington Commanders. He previously insisted he would never let the franchise he’s owned since 1999 go. The team said yesterday that Snyder and his wife, Tanya, hired Bank of America to consider potential transactions. And Snyder has already fielded four calls from groups that want the team, according to Forbes, which recently valued the franchise at $5.6 billion. At that price, it would be the most-expensive sale of a sports team ever. The backstory: Snyder’s recent history with the Commanders has been marked by scandal after scandal. - The team has faced investigations from the league, Congress, and state attorneys general over allegations ranging from a toxic workplace culture and sexual misconduct to accounting shenanigans. - He refused to change the team’s offensive name for years before finally relenting in July 2020. So who might buy the team? We don’t know, but many fans seem pretty convinced it’ll be Amazon founder Jeff Bezos. The NFL noted yesterday that its finance committee would need to sign off on any deal—and the world’s second-richest person probably makes an attractive pick.—AR �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Dan%20Snyder%20might%20sell%20the%20Commanders%20after%20all%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2F2022%2F11%2F02%2Fdan-snyder-may-sell-the-washington-commanders%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 [‘Blockbuster’ comes to Netflix]( [Main actor talking on phone from Blockbuster movie.]( Netflix Netflix released its newest original comedy, Blockbuster, today. The show is about the last remaining branded video rental store—which feels a little personal, since Netflix helped [stamp out]( its once-dominant competitor. At Blockbuster’s peak, the movie rental chain had 9,000 stores and raked in $6 billion in annual revenue, mainly from our 10 Things I Hate About You late fees. But in the late ’90s, Blockbuster passed on the chance to buy Netflix for $50 million. Not a great call, since the company is now worth over $120 billion. Instead, Blockbuster partnered with Enron to create its own video-on-demand platform. In 2001, the chain abandoned the project, thinking the future of the industry would still involve blue-carpeted video rental stores. Over the next decade Blockbuster couldn’t keep up with Netflix and filed for bankruptcy. As of 2018 only one store, more of a shrine to the way things were than an actual business, remains in Bend, Oregon. And now…Netflix, the once scrappy underdog that defeated Blockbuster, is back to hustling as it strives to set itself apart from other streaming services. The company rolled out its first ad-supported tier today to juice flagging subscriber numbers.—MM �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=%E2%80%98Blockbuster%E2%80%99%20comes%20to%20Netflix%3A%20https%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fstories%2Fnetflix-blockbuster-comedy%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 AC+ION [Ac+ion]( Quench your thirst. When you take a sip of [AC+ION Ion Charged Alkaline Water](, you’re enjoying premium hydration. AC+ION Water is designed with a specific balance of electrolytes and minerals for a refreshingly crisp taste. It goes through a multistage purification process to unlock water’s potential—so that you can unlock yours. [Learn more](. GRAB BAG [Key performance indicators](#) [A small pile of money next to a large pile of money]Francis Scialabba Stat: An NYC law that requires employers to include pay ranges in job listings went into effect Tuesday, and some of the ranges posted have been [so wide](, there’s really no telling how much you would make. A “reasonable estimate” for what you’ll earn as a Tax Senior at Deloitte is between $86,800 and $161,200. The WSJ advertised an executive producer role for $50,000–$180,000. And Citigroup posted several job listings with an expected salary of $0–$2 million, though it said that was a glitch. Quote: “We can’t ignore the impact this is having on our country. It’s damaging, it’s corrosive, and it’s destructive.” In a prime-time speech last night, President Biden pleaded with Americans to [reject]( the more than 300 election deniers on the ballot in the midterms. He added that conspiratorial rhetoric around the 2020 presidential election has led to political violence, like the attack on House Speaker Nancy Pelosi’s husband, Paul, last week. Read: How an unverified screenshot spurred a $450 billion stock rally in China. ([Bloomberg]() WHAT ELSE IS BREWING - [Russia]( agreed to rejoin its grain deal with Ukraine. It had temporarily backed out after an alleged strike on its Black Sea fleet. - [Ethiopia’s government]( and Tigray authorities agreed to end a devastating two-year war. - [South Korea]( and its northern neighbor exchanged missile launches after North Korea launched at least 23 ballistic missiles in a day—a new record. - [TMRW Sports](, a sports startup from Tiger Woods and Rory McIlroy, received an investment from a group of super-athletes including Serena Williams, Alex Morgan, Lewis Hamilton, and Stephen Curry. FROM THE CREW [How business leaders overcame personal challenges]( [Imposters promo image]( On Imposters, we sit down with titans of industry, sports, and entertainment to discuss the personal challenges they’ve overcome to get where they are today. It’s honest, raw, and a reminder that we’re all just doing the best we can. Check out some popular episodes: - [How this Nike exec went from prison to the boardroom]( - [How to find support when building a business | The (definitive) mental health toolkit]( - [A Harvard psychologist teaches us how to increase our emotional intelligence]( This editorial content is supported by Ac+ion. BREW'S BETS Extremely satisfying: The ancient Turkish art of marbling, called Ebru. [Watch]( and your heart rate will lower immediately. WFH inspiration: See how tech workers around the world [set up their workspaces](. ’Tis the szn: We haven’t made it to Turkey Day yet, but Starbucks holiday drinks go on sale today and will come in [snazzy new cups](. Also, [Mariah Carey](, the unofficial Queen of Christmas, says it’s time. GAMES [The puzzle section](#) Brew Mini: Spill the beans in today’s Mini Crossword. [Play it here](. Three headlines and a lie Three of these headlines are real and one is faker than your first morning alarm. Can you guess the odd one out? - Ancient beaver relative bigger than most humans [voted]( as Vermont’s state fossil - Ikea asks horror game to change so people stop [comparing it to Ikea]( - ‘Planet killer’ asteroid [spotted]( that poses distant risk to Earth - Detroit suburb forced to [cancel]( trick-or-treat due to cockroach infestation If you love Three Headlines and a Lie, [play along]( on The Refresh from Insider and dive deeper into these weird headlines. [Should you buy as cheaply as possible?]( [Should you buy as cheaply as possible?]( Money with Katie explores spending habits through the lens of the supply chain and why equitable business models are better for everyone. [Listen here](. Want to be more data-driven?[Check out our program guide]( for the upcoming Business Analytics Accelerator and get a peek at all there is to learn. 🩲 Her period underwear brand Thinx and bidet company Tushy both quickly landed at the center of the public eye. Come hear Miki Agrawal at [The Brief]( to learn how she comes up with game-changing ideas that keep people talking, even in today’s crowded economy. 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 We made up the Vermont ancient beaver. � � � � � Written by [Neal Freyman](, [Abigail Rubenstein](, and [Matty Merritt]( Was this email forwarded to you? Sign up [here](. WANT MORE BREW? 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