☕ Burnt out

Chicago wades into the great tipping debate... October 04, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [AT&T Connected Car]( Good morning. Heads up: If you’re in the US, your phone will vibrate with a message at 2:20pm ET as the government conducts a nationwide test of its emergency alert system, the first time it’s spammed everyone in the country since 2021. Don’t be the one person to reply all. —Sam Klebanov, Cassandra Cassidy, Matty Merritt, Adam Epstein, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 13,059.47 -1.87% S&P 4,229.45 -1.37% Dow 33,002.38 -1.29% 10-Year 4.803% +11.6 bps Bitcoin $27,297.90 -0.89% Airbnb $127.73 -6.47% *Stock data as of market close, cryptocurrency data as of 12:00am ET. [Here's what these numbers mean.]( - Markets: Annnnd it’s gone—the Dow turned negative for the year as stocks [got crushed]( yesterday. The reason: Bond yields are surging, with the 10-year Treasury yield reaching a 16-year high, which is putting major downward pressure on stocks. Companies that rely on consumer spending, like Carnival and Airbnb, got hit the worst.  TECHNOLOGY [Celebrity deepfakes are having a moment]( [Tom Hanks deepfake creation]( Illustration: Cameron Abbas, Photo: Taylor Hill/FilmMagic via Getty Images Videos circulating of Tom Hanks promoting a dental plan or MrBeast giving out $2 iPhones are about as legit as that email from a foreign royal begging you to spot them $5K . The Forrest Gump star and the YouTube philanthropist [warned their fans]( this week that clips making the rounds on social media are AI deepfakes created without their consent. And that’s just a tiny taste of how the nascent tech that can animate celebrity faces and put words in their mouths has been roiling showbiz. - Tom Brady, who probably wishes his FTX ad was a deepfake, threatened to sue the creators of a [crass standup special]( made with an AI-generated version of his voice and likeness earlier this year. - Robin Williams’s daughter, Zelda Williams, posted on Instagram over the weekend that she’s disturbed by attempts to “recreate actors who cannot consent,” like her late father. AI makes waves in Hollywood The issue of restricting the use of deepfakes has also been a central sticking point in the negotiation between the SAG-AFTRA union and Hollywood studios amid the ongoing actors strike. Background actors worry their employers could replace them with animated versions of their avatars. Performers also say that without proper AI guardrails, studios could use their work to train artificial intelligence without consent or cast an actor’s likeness in a role that they might find objectionable. (Williams said she’s rooting for SAG in its “fight against AI.”) AI was also an issue in the recently negotiated contract (not yet finalized) that ended the strike by TV and film writers. The agreement limits the extent to which producers can use AI-generated content to replace the work of human pros. Deepfakes aren’t just entertainment bogeymen. Doctored content is also disrupting politics. A few days before this weekend’s parliamentary election in Slovakia, AI-made audio clips featuring what sounded like one of the front-runners discussing plans to buy votes and double the price of beer circulated on social media, and…he lost his bid to become prime minister.—SK   PRESENTED BY AT&T CONNECTED CAR [Car Wi-Fi]( [AT&T Connected Car]( Can you name a more dynamic duo? …Yep, didn’t think so. Imagine hitting the open road with access to everything the internet has to offer. Well, [AT&T In-car Wi-Fi]( is making that dream a reality. With AT&T In-car Wi-Fi, you can stay connected to the office, family, and everything in between. That’s right. Stream, browse, share, and download, all while cruising the byways. Trying to get to a mountain hideout to catch the fall foliage but have a 1-on-1 you can’t miss? With [AT&T In-car Wi-Fi]( you can do both since AT&T covers more roads than any other carrier. [Hit the road connected](. WORLD [Tour de headlines](#) [Kevin McCarthy]Alex Wong/Getty Images Kevin McCarthy no longer speaks for his party. For the first time in US history, a House speaker was [removed]( from their post—and this one was an inside job. After McCarthy worked with Democrats to avert a government shutdown, a faction of hard-right Republicans pushed to oust Kevin McCarthy from the speakership, and they secured enough support to vote him off the island. There’s no roadmap for what happens next—this has never happened before, after all—but House Republicans will have to select a new leader. McCarthy said he wouldn’t run again. Spotify starts a turf war with Audible. The streaming service that began with music, then dove into podcasting, is now [getting into audiobooks](. Spotify will allow paying subscribers to listen to 15 hours of audiobooks for free each month, beginning in the UK and Australia and expanding to the US this winter. The company will offer 150,000+ books, including more than 70% of the NYT’s bestsellers list. Spotify is hoping to swipe market share from Amazon’s Audible, the dominant player in an industry that’s expected to nearly double in size from 2021 to 2026, per media consultancy Omdia. SCOTUS doesn’t seem eager to upend financial regulations. The Supreme Court heard [oral arguments]( yesterday in a case over whether the way the Consumer Financial Protection Bureau gets its funding is constitutional. If the court rules against the agency, it could throw into question every regulation the financial watchdog has made about consumer issues like credit cards and mortgages since it was formed in 2010. But the justices did not appear to be leaning that way during the arguments, with both liberal and conservative members of the court side-eying the claims made by the payday lenders that brought the case. The court’s decision is expected by June. LABOR [Burnt-out healthcare workers are about to strike]( [Photo of healthcare workers on strike]( Dania Maxwell/Getty Images Hot Strike Summer has ended, but despite the chill in the air, labor is still running a fever. Next up: the [biggest healthcare strike]( in US history. More than 75,000 workers employed by Kaiser Permanente, one of the largest nonprofit healthcare providers in the US, plan to walk off the job for three days—starting today. Why are they striking? Healthcare workers across the industry are experiencing challenges, which Kaiser acknowledged in response to the looming strike. According to a statement by the company, up to two-thirds of healthcare staff everywhere are [burnt out](. That’s exacerbated by the issues Kaiser employee unions say they’re striking over, including: - Acute staffing shortages: Short-staffing is a common problem in healthcare, but union members say that it has worsened between the pandemic and the Great Resignation—and patient safety is in danger. - Wage increases: The union wants what it describes as competitive compensation that accounts for the increased cost of living: a $25/hour wage floor and increases between 6.25% and 7% over the next four years. Kaiser insists it pays a cromulent wage and denied claims of being short-staffed, saying it hired 22,000 people already this year. How the strike may affect Kaiser’s 13 million patients: Physicians, hospitals, and emergency rooms will not be impacted, but some facilities will have [reduced staff]( for nursing and support roles.—CC   TOGETHER WITH LMNT [LMNT]( Quench your potential. While conventional sports drinks slip in sugar and subpar ingredients, [LMNT’s electrolyte drink mix]( gives you a science-backed electrolyte ratio in every clean, tasty gulp. No sugar, no artificial ingredients, no fillers. Prevent and eliminate headaches, boost performance and recovery—and do it all with a [free sample pack with any purchase](. FOOD & BEV [Chicago could upend restaurant tipping]( [Carmy from The Bear]( The Bear/FX Networks River North waiters might finally be able to afford the brunch they’re serving. Chicago is set to become the second-biggest city in the country to [eliminate]( subminimum wages for tipped employees. The city council could pass the law as early as today, and Mayor Brandon Johnson is expected to sign it. The measure would require the nearly 7,000 restaurants in the city to boost pay from around $9/hr to the city’s standard minimum wage of $15.80/hr for tipped workers like servers and bartenders. But the old model would be phased out slowly by increasing wages for tipped workers by 8% every year for the next five years—a compromise that Mayor Johnson made with the Illinois Restaurant Association, an industry group that previously rejected the wage bump. It sparked more controversy than the mayo in Portillo’s cake. Opponents of the change were primarily restaurant owners, who [said]( their already razor-thin profits would force them to jack up menu prices and perhaps even cut down on staff. But supporters say relying on tips is an unsustainable way to make a living, and it can disproportionately harm minority workers.—MM   GRAB BAG [Key performance indicators](#) [Jeff Bezos, Elon Musk, Larry Ellison, Jensen Huang ]Illustration: Francis Scialabba, Photos: Getty Images Stat: Forbes released its annual [Forbes 400 ranking]( of the richest US citizens, and we regret to inform you that you’re not on it. Elon Musk topped the list again with an estimated net worth of $251 billion, followed by Jeff Bezos ($161b) and Larry Ellison ($158b). The Forbes 400 are collectively $500b richer than last year and are worth a combined $4.5 trillion, tying 2021 for the most ever. One newcomer to the top 20 is Nvidia CEO and co-founder Jensen Huang, whose net worth ballooned to $41b alongside tech’s AI boom. Among those to fall off the list entirely is Donald Trump, whom Forbes now [categorizes]( as “too poor to make the cut.” Quote: “We’ve been working on this for 24 hours. Our first response was awful.” Our long national nightmare is over—Catgate has been solved. An Austin man [went viral]( this week after a Lyft driver drove away with his cat, Tux, still in the car. He begged Lyft’s customer service for help but didn’t get it, and at one point was told he’d be charged $20 if the “item” (his cat) was returned. His complaints reached the desk of CEO David Risher, who [apologized]( for the company’s initial response. Eventually, Tux was reunited with her owner, and Lyft said it would foot the vet bills. But a whole lot of people still want more details on what happened to this guy’s cat. Read: Dan Ariely and Francesca Gino became famous for researching why we bend the truth. Now, they’ve both been accused of fabricating data. ([The New Yorker]( NEWS [What else is brewing](#) - [A bus]( carrying foreign tourists crashed near Venice, Italy, killing at least 21 people when it fell from an elevated road. - [Netflix]( plans to raise prices on its ad-free tier once the actors strike ends, the WSJ reported. - [Dish Network]( was fined $150,000 by the FCC for “failure to properly deorbit” one of its satellites—the first-ever fine levied for space junk. - [Krispy Kreme]( is selling its majority stake in Insomnia Cookies, the go-to 2am dessert destination for college students. - [Zoom]( is releasing its own version of Google Docs, while [Google]( is making a slew of changes to Gmail to reduce spam in your inbox. RECS [Wednesday to-do list] Watch: How can you not be romantic about baseball after watching this [montage of movies]( about America’s pastime? Listen: These gloopy [frog beats]( are going viral on TikTok. “This music is very wet. Kind of has a humidity to it,” one user observed. Read: The 104-year-old who suddenly decided to become a [thrill-seeker](. Win: The Powerball jackpot is at an estimated [$1.2 billion]( third-highest ever—ahead of tonight’s drawing. Your chances of winning are one in 292 million. Engine-nuity paying off: [LiquidPiston]( has $30m+ in government contracts and 377% revenue growth since the end of 2021. Join them as they revolutionize the $400b combustion engine industry. [Invest by Oct. 24]( *A message from our sponsor. GAMES [The puzzle section](#) Word Search: With the hype building for the NBA season, today’s Word Search asks you to identify pro basketball team mascots. [Play it here](. Leaf peeping It’s that time of the year. Can you identify the trees from their leaves? Your options: ginkgo, holly, maple, ash, chestnut, oak [Six different leaves for trivia] 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 1. Oak 2. Maple 3. Ginkgo 4. Holly 5. Chestnut 6. Ash Word of the Day Today’s Word of the Day is: cromulent, meaning “acceptable or fine.” Thanks to Dave Wright from Raleigh, NC, for the perfectly adequate suggestion. Submit another [Word of the Day here](. ✤ A Note From LiquidPiston This is a paid advertisement for LiquidPiston’s Regulation A+ Offering. Please read the offering circular at [invest.liquidpiston.com](. Written by [Adam Epstein]( [Neal Freyman]( Sam Klebanov, [Cassandra Cassidy]( [Matty Merritt]( and [Abigail Rubenstein]( Was this email forwarded to you? Sign up [here](. 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