☕ Nepo billionaires

What’s behind the record-breaking bond blowout... December 01, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [EnergyX]( Good morning. It’s December, which means that as of today, you’re officially allowed to hang up Christmas lights without any judgment from your neighbors. We don’t make the rules: A survey of ~4,000 US homeowners found that Dec. 1 was the day most people identified as acceptable to put up Christmas lights. OK, but on what day is it acceptable to set out the sacrificial pot roast to appease Yeetch, the snow creature, so it doesn’t change all the wi-fi passwords in your neighborhood? —Matty Merritt, Molly Liebergall, Cassandra Cassidy, Adam Epstein, Neal Freyman MARKETS Nasdaq 14,226.22 -0.23% S&P 4,567.80 +0.38% Dow 35,950.89 +1.47% 10-Year 4.333% +6.8 bps Bitcoin $37,760.69 -0.27% Ford $10.26 -3.12% *Stock data as of market close, cryptocurrency data as of 12:00am ET. [Here's what these numbers mean.]( - Markets: The Dow [surged]( 500 points on Thursday to a new high for the year thanks to more optimism around cooling inflation. The surge capped off an excellent November for stocks (more on that later), with all three major indexes gaining at least 8%. Unfortunately for Ford, the automaker could not join in the fun: Its shares dropped after it estimated it lost $1.7 billion in profits due to the six-week UAW strike.  AUTO [The Cybertrucks are here]( [Tesla Cybertruck]( Tesla A vehicle for people who earnestly ask “What if they just made the plane out of the black box material?” is finally here. After much delay, Tesla delivered 10 of its hefty, angular Cybertrucks at a launch event in Austin, Texas, yesterday. A closer look at the Cybertruck Tesla CEO Elon Musk boasted to the crowd that the full-size electric pickup is the “most unique thing on the road.” The event focused heavily on the Cybertruck’s alleged toughness: A premade video showed someone shooting the side of the truck to prove it’s bulletproof. The Tesla designer who infamously threw a metal ball and [shattered]( windows on the vehicle at a 2019 event tried again—but with a much softer baseball—and didn’t break any glass this time. So, you’re safe to park your Cybertruck next to Little League games. As far as actual brags go: - The Cybertruck can tow 11,000 pounds, which is 1,000 pounds more than the Ford F-150 Lightning. - It can also out-pull an F-350 diesel and out-race a Porsche 911, according to the prerecorded test videos Musk showed at the event. - The truck starts at around [$61,000]( and gets 340 miles of range. Red flags: The Cybertruck, which is exceedingly complex to make, has already been [marred by production challenges]( and delays (it was originally supposed to be ready in 2021). Musk admitted to investors in October that the Cybertruck would be hard to make at high volumes and that it would take at least a year of sales to make any money off it. And that’s if people buy the truck. The vehicle’s waitlist is hundreds of thousands of people long, per Tesla. But only about half of the 2 million people who placed refundable preorders for one are expected to follow through and buy, according to Wedbush analyst Dan Ives. And the EV has scores of critics who argue it [missed its chance]( to stand out.—MM   PRESENTED BY ENERGYX [The next oil boom?]( [EnergyX]( Lithium is essential for batteries in electric cars, renewable energy storage, and even smartphones. That’s why demand for lithium is projected to increase 20x by 2040. So when [EnergyX]( revealed that their technology could extract 300% more lithium than traditional methods, investors took note—General Motors included. GM was the lead investor in EnergyX’s $50m funding round, and now [you can join them](. That means you have the unique opportunity to get in on the ground floor of a company just as they’re set to unlock the US lithium supply. [Click here]( to learn more about becoming an EnergyX shareholder and transform the future of renewable energy. WORLD [Tour de headlines](#) [A gay rights protest in Saint Petersburg, Russia, in 2017]AFP Contributor/Getty Images Russia’s Supreme Court banned LGBTQ+ activism. In an [extreme escalation]( of its campaign against expressions of “nontraditional” sexual orientation, Russia’s highest court ruled that the international gay rights movement is an “extremist” organization. Experts say the ruling could put gay people and allies at risk of prosecution and jail time for merely displaying a rainbow pride flag. Since invading Ukraine last year, Russia has increased its efforts to curtail LGBTQ+ rights in order to maintain what Vladimir Putin calls “Russian traditional values” and position itself against the “degrading” influence of the West. Inflation continues to cool. The Fed’s preferred inflation measure increased 3% in October, down from 3.4% in September and [getting closer]( to the central bank’s much-ballyhooed target of 2%. A drop in gas prices—down 4.9% from the previous month—was a major factor. Increases in core prices, which strip out food and energy costs, also slowed last month. In the last six months, core inflation has grown at a 2.5% annual rate—down significantly from 5.1% last year. The news means the Fed will likely keep interest rates unchanged at its final 2023 meeting on Dec. 12 and 13. Cristiano Ronaldo faces a $1 billion lawsuit for hawking NFTs. Investors are suing the Portuguese soccer star in a Florida court over [his partnership]( with the crypto exchange Binance to promote non-fungible tokens of himself, which are now pretty much worthless. The class-action lawsuit alleges Ronaldo made deceptive statements and failed to disclose how much he was getting paid by Binance—in breach of a US law that has tripped up other celebrities like Kim Kardashian. It adds to the mounting drama surrounding Binance, which forked over a $4.3 billion fine to the DOJ last week to settle [money laundering charges](. As recently as Nov. 28, Ronaldo was still promoting Binance on social media. WEALTH [Nepo billionaires just overtook self-made ones]( [Baby hand holds a silver spoon with money]( Illustration: Francis Scialabba, Photos: Getty Images The great generational wealth transfer is upon us. In a first for the world of superyachts and Picasso auctions, new billionaires now inherit more money than they make. According to a UBS [report]( on some of the Swiss bank’s wealthiest clients, 53 heirs inherited $150.8 billion from deceased relatives in the year leading up to April 2023, eclipsing the $140.7 billion brought in by 84 new self-made billionaires over the same period. That marks the first time that billionaires have gotten richer [from generational wealth]( than from entrepreneurship in the nine years since UBS started surveying its fattest cats—who account for half of the world’s billionaires. Why? High interest rates, a chilled IPO market, and geopolitical challenges are making wealth creation harder, per UBS. At the same time, deep-pocketed families running consumer-centric companies—like [LVMH]( chairman Bernard Arnault and his clan—have benefited from shoppers’ post-pandemic, treat-yourself mentalities. Looking ahead…as more than 1,000 billionaires die in the next 20–30 years, UBS projects that their children will inherit $5.2 trillion. But they’ll likely spend some of that dough differently than their mommies and daddies. The youngest members of the 0.00004% worry more about long-term risk, so they’re into impact investing rather than conventional philanthropy.—ML   TOGETHER WITH EDMUNDS [Edmunds]( Faster than you can say zoom. [Edmunds’ free appraisal tool]( gives you an accurate price for your vehicle in as little as a minute. It helps you determine the average transaction price—i.e., what others are paying in your area—for new or used cars. That way you can begin your negotiations with a fair price in mind. The tool can even show you an offer for your current car! [Try the Edmunds Appraisal tool for free](. ECONOMY [What happened in November]( [Stonks meme]( Special Meme Fresh Someone call Bowling for Soup—bonds are bringing back 1985. The bond market just finished its [best]( month since 1985, according to the Financial Times, with investor optimism creating a surge in bond prices and a plunge in yields (reminder: they move in opposite directions). The yield on the benchmark 10-year US Treasury note dipped below 4.3% for the first time since [September](. And other economic measures are looking good like Billy Ray: - The bond rally spilled over to stocks, where the S&P 500 and Dow just clinched their best months since July 2022 and October 2022, respectively. - Mortgage rates [dropped]( for the fifth consecutive week, to 7.22%. What’s behind the bond blowout? Traders are optimistic that the Fed may be done hiking interest rates. With recent data showing both consumer spending and the job market cooling down—but not too much—economists see the once-aspirational economic soft landing as achievable, which is great news for Wall Street (and anyone else hoping to avoid a recession). Looking ahead…the Fed will hold its last meeting of the year on December 12 and 13. No rate changes are expected, but analysts will be clinging to every word that JPow says about what may be coming for rates in the new year.—CC   GRAB BAG [Key performance indicators](#) [A Red Lobster restaurant in Times Square, New York]Richard Levine/Getty Images Stat: Red Lobster has apparently learned nothing from its “Endless Crab” debacle [of 2003](. The seafood chain’s “Ultimate Endless Shrimp” promotion is so popular that it’s literally hurting business. Parent company Thai Union revealed that it lost $11 million in Q3 because it [miscalculated]( how popular the $20 all-you-can-eat shrimp deal would be. Red Lobster made it a permanent fixture on the menu in June as a way to boost foot traffic in restaurants—which it did, leading to a 4% jump from last year—but execs underestimated how much of that new traffic would be there solely for the endless shrimp. Red Lobster has since increased the price to $25. Quote: “Quantity, in our case, diluted quality, and Marvel has suffered greatly from that.” Disney CEO Bob Iger shares the same sentiment you had after walking out of Ant-Man and the Wasp: Quantumania: Marvel’s in a rut. Speaking at the New York Times DealBook Summit this week, Iger admitted the renowned superhero brand [has faltered]( following a string of underwhelming box-office results and middling reviews. He said Marvel will still pump out sequels, but only if “the story that the creators want to tell is worth telling.” Read: Inside Beyoncé’s growing empire. ([Washington Post]( QUIZ [Quiz wrapped]( [New Friday quiz image]( The feeling of getting a 5/5 on the Brew’s Weekly News Quiz has been compared to when a loose acquaintance responds to your Insta story to tell you that your skin looks amazing. It’s that satisfying. [Ace the quiz](. NEWS [What else is brewing](#) - [Israel]( said it resumed its combat operations in Gaza after its cease-fire with Hamas ended. Qatar said negotiations for another truce are continuing. - [The first]( wireless charging public roadway for electric vehicles was installed in Detroit. - [Meta]( will reportedly launch its X competitor, Threads, in Europe this month. - [McDonald’s]( is overhauling the Big Mac with more special sauce, fresher lettuce and pickles, and a brioche bun, among other changes. - [Microsoft]( secured a nonvoting board seat at OpenAI, seemingly answering questions about its commitment to the startup following the surprise fire and rehire of CEO Sam Altman. - [The Oscars]( will start earlier than ever next year (7pm ET) in an effort to reel in more viewers, the Academy of Motion Pictures Arts and Sciences announced. RECS [Friday to-do list] Clean: Why the [Dyson cordless vacuum]( is an “almost weirdly sexy” Gen Z status symbol. Listen: The 100 best [albums of the year]( according to Rolling Stone. Watch: How Harvard’s [$50 billion endowment]( works—and who’s really benefiting. Party: We made it—it’s officially holiday party season. Here’s how to [throw one in an instant](. Make better decisions: Vibes alone don’t cut it. Learn how to make smarter, faster business decisions using data with our new course starting on Monday, Dec. 4. [Reserve your spot now](. Mental leaps: Sharpen your mind in five minutes a day with Brilliant’s [bite-sized lessons]( in tech, programming, and more. [Try it free for 30 days]( *A message from our sponsor. GAMES [The puzzle section](#) Jigsaw: Niagara Falls knows how to put on a winter festival. [See for yourself here](. Friday puzzle This is an epic puzzle from the puzzle guru Nobuyuki “Nob” Yoshigahara. Can you figure out what number should replace the question mark (orange circle)? [Graphic of the Friday Puzzle] Source: Brain Easer 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 At first glance, you might think that each circle gets its number from the difference between the two numbers with arrows pointing to it (99−72 = 27, etc.). But, actually, each number is the sum of the digits of the two numbers pointing to it (9+9+7+2 = 27, etc.). So, the question mark should be replaced by the number 12. Ingenious! [Source](. Word of the Day Today’s Word of the Day is: ballyhooed, meaning “blatantly advertised or publicized.” Thanks to Thunder Frost from Hawaii and others for being discreet with the suggestion. Submit another [Word of the Day here](. ✢ A Note From EnergyX This is a paid advertisement for EnergyX’s Regulation A+ Offering. Please read the offering circular at [(. Written by [Adam Epstein]( [Neal Freyman]( [Matty Merritt]( [Molly Liebergall]( and [Cassandra Cassidy]( Was this email forwarded to you? Sign up [here](. Interested in podcasts? - Check out ours [here]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2023 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011