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Why gas is cheaper than it’s been all year… [Advertisement] December 13, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Apollo Global Management]( Good morning. In an optimistic sign for group projects everywhere (and climate change), nearly 200 countries reached a [historic agreement]( at COP28 that calls for a transition away from fossil fuels, which account for more than 75% of global greenhouse gas emissions. Not everyone is satisfied with the deal—it is a compromise, after all—but it marks the first time that a global climate agreement specifically calls to limit the use of fossil fuels. —Sam Klebanov, Matty Merritt, Cassandra Cassidy, Adam Epstein MARKETS Nasdaq 14,533.40 +0.70% S&P 4,643.70 +0.46% Dow 36,577.94 +0.48% 10-Year 4.204% -3.3 bps Bitcoin $41,063.52 -0.42% Oracle $100.81 -12.44% *Stock data as of market close, cryptocurrency data as of 12:00am ET. [Here's what these numbers mean.]( - Markets: Stocks climbed on Tuesday and the S&P 500 hit its [highest level]( since January 2022 as investors got more solid news on inflation (it’s cooling). Eyes are now back on the Fed, which is widely expected to keep interest rates the same at its policy meeting today. Things were not so chill for Oracle, whose shares plunged after the software giant [fell short]( of expectations for its cloud revenue.  ECONOMY [Affordable gas is emitting positive economic vibes]( [The Office]( The Office/NBC Three sights that’ll captivate you forever: fire burning, water flowing, and gas prices dropping. The last one is now easy to spot countrywide, with a [gallon of regular]( going for $3.14 on average this week—the lowest it's been all year and down from $3.87 in August. Since driving a gas-guzzler is as American as apple pie, smaller receipts at the pump go a long way toward keeping Americans’ cost of living at bay. Consumers feel more at ease The Bureau of Labor Statistics [said yesterday]( that, largely thanks to cheaper gas… - The Consumer Price Index rose only 3.1% year over year in November, and just 0.1% from the previous month. - The monthly price growth is on par with the no-increase reading in October, and lower than it was in preceding months. After months of sagging consumer confidence, waning inflation might be making the public more optimistic about what the future holds. A recent University of Michigan survey showed that Americans have a more upbeat outlook about the economy and their own finances compared with last month and this time last year. Why is gas cheaper now? Cheaper oil is the short answer: Prices have been falling on lower demand from China and the US, coupled with more supply from increased stateside production. Enhanced extraction methods are helping the US pump a near record number of barrels. Plus, the Biden Administration has expanded drilling permits, which could further boost American oil. But while Biden is eager to show voters that he’s the ultimate inflation tamer worthy of re-election, he’s kept mostly mum on why gas is cheaper. More oil drilling on US soil is at odds with the wishes of many of his eco-conscious supporters. Inflation wasn’t so rosy under the hood…Prices for all goods and services excluding volatile food and fuel grew at a faster pace in the fall than during the summer months. Rent prices also jumped, and while fueling a car might’ve become cheaper, buying a used one became a little more expensive in November. This complicates the Fed’s inflation fight, and might make it less inclined to lower interest rates soon.—SK   TOGETHER WITH APOLLO GLOBAL MANAGEMENT [Seize your golden years]( [Apollo Global Management]( Saving for retirement isn’t what it used to be. The shift to defined contribution plans and a longer life expectancy amid a challenging investment landscape have placed a much greater burden on individuals when it comes to retirement. Here’s the good news: There are alternatives out there that are helping people achieve financial security so they can retire better—no matter where they are on their journey toward retirement. [Meet Apollo and Athene](. From alternative investment strategies to lifetime income products, they’ve got innovative solutions for institutions, companies, individuals, and families. Start building the future you’ve always imagined. [Get started here](. WORLD [Tour de headlines](#) [US President Joe Biden meets with Ukrainian President Volodymyr Zelensky in the Oval Office]Mandel Ngan/AFP via Getty Images Zelensky met with President Biden and Congress to ask for more aid. For the second time in the last three months, Ukrainian President Volodymyr Zelensky [visited DC]( to lobby US officials for more aid before lawmakers leave for the holidays next week. He found an ally in President Biden, who stressed the importance of the ~$60 billion in additional aid he asked for to help Ukraine fend off Russia’s invasion. But Zelensky hit a wall with congressional Republicans, including House Speaker Mike Johnson, who likely said that allowing more aid for Ukraine is contingent on passing US–Mexico border reforms. Netflix expanded its data transparency. We finally know exactly how many of you are watching Love Is Blind. Its reputation long besmirched by a lack of transparency, Netflix released its [biggest data dump]( yet on Tuesday, with its first semiannual report of viewing across the streaming service. From January to June of this year, the most-watched Netflix show was The Night Agent, with 812.1 million hours viewed, followed by season two of Ginny & Georgia (665.1m) and then Korean drama The Glory (622.8m). Netflix co-CEO Ted Sarandos said it initially wasn’t in the company’s interest to be transparent, but now that it’s matured, divulging viewing stats “creates a better environment” for Netflix and its content partners. The rift between Biden and Netanyahu is growing. The disagreements between the US president and Israeli prime minister—which had been largely kept private—[escalated]( yesterday, when Biden criticized Israeli’s government and called on Netanyahu to make changes as the country loses international support for its war against Hamas. Netanyahu, meanwhile, acknowledged that he disagrees with Biden over what will happen “the day after Hamas.” Biden supports a two-state solution, which Netanyahu has not endorsed. AUTO [No flipping the Cybertruck]( [Tesla Cybertruck]( Tesla Attention, Cybertruck owners: The only thing you’ll be able to do with your new vehicle is drive it. Tesla added a clause to its purchase contracts allowing it to [sue]( buyers for at least $50,000 if they try to resell their Cybertruck within a year of purchase. So what are unhappy cybertruckers supposed to do if they realize they don’t actually need a bulletproof futuristic truck? The contract requires owners to offer to sell it back to Tesla for a discounted price and to only resell the vehicle with the company’s written consent, according to ArsTechnica. If customers breach the contract, they could get banned from owning a Tesla in the future, in addition to the financial penalty. - The lawsuit threat appeared in an earlier public version of the Cybertruck contract last month, but was removed after backlash. Now it’s resurfaced in recent order agreements. - Clauses like this aren’t unprecedented for exclusive high-end vehicles, and Tesla hasn’t specified if the rules will apply to all Cybertrucks or just the initial release. But at least trucks are finally moving: After years of delays, the EV maker finally handed over the keys to its first 10 Cybertrucks in a brief [delivery event]( last month. CEO Elon Musk revealed some highly anticipated specs, including the Cybertruck’s ability to tow 1,000 more pounds than the Ford F-150 Lightning and outrace a Porsche 911.—MM   TOGETHER WITH APPLE GIFT CARD [Apple Gift Card]( This gift card is all fun and games. Show your love by giving ’em a gateway to nonstop entertainment with [Apple Gift Card](. It unlocks thousands of ad-free games through App Store, the latest products (including AirPods and iPhone), and 100+ million songs through Apple Music. [Give a gift of joy](. SPORTS [What Shohei Ohtani can teach us about money]( [Shohei Ohtani at a Los Angeles Angels game]( Michael Reaves/Getty Images It’s not every day that a baseball contract is so consequential that it could be featured in business textbooks. Then again, not every baseball player is Shohei Ohtani. The Japanese star’s decision to defer $680 million of his 10-year, $700 million contract with the Los Angeles Dodgers is an extremely large-scale version of someone getting you Taco Bell and saying “don’t worry, you can pay me later.” But, unlike a Crunchwrap Supreme, the price of Ohtani is not so simple. That $700 million contract? It’s more like [$460 million]( to the MLB, which calculates payroll in terms of its annual average value. That’s still bigger than most other athletes’ contracts—but not quite the jaw-dropping $700 million figure on Ohtani’s contract. There’s also the possibility that it’s a massive mistake. If inflation hits 5% every year, a $68 million payout in 2034 could feel more like $40 million in today’s money, per Axios. But as Bloomberg’s John Authers points out, thinking about the [time value of money]( is likely not top of Ohtani’s mind. In Japan, where Ohtani lived until he started with the LA Angels in 2018, interest rates are basically zero—meaning there’s no incentive for you to get paid now because the money’s value won’t change in the future. Big picture: Deferring 97% of your contract is not a move that any ol’ ball player could make. Ohtani is uniquely positioned because 1) his manifold skills make him more desirable than most other players and 2) he makes an estimated $50 million a year from sponsorships alone, negating the need for a large salary.—CC   GRAB BAG [Key performance indicators](#) [An Ancient Greek vase from the British Museum]Costas Baltas/Anadolu via Getty Images Stat: While you search your coat pockets for that one ChapStick from 2018, the British Museum is still looking for 1,500 ancient artifacts. Per an independent review commissioned by the world-famous museum’s trustees, 2,000 items are [damaged or missing]( while 350 others have had portions removed. Many of the missing objects are unregistered artifacts—mostly jewelry and gems—in the museum’s Greece and Rome departments. While that’s a lot of missing valuables, consider that the museum holds more than 8 million artifacts—meaning that 99.9% of items are intact and accounted for. Can you say the same about all your stuff? Quote: “He may be at the very top of the list as the worst person I’ve ever seen do a cross examination.” On the one hand, at least Sam Bankman-Fried didn’t admit to ordering the Code Red. On the other hand, he was still perhaps the [worst witness]( Stanford Law professor David Mills has ever seen—and he’s seen a lot of them. Mills, a veteran criminal lawyer, represented SBF during the highly publicized FTX trial last month as a favor to the now-convicted crypto fraudster’s parents. But according to Mills and anyone who was following the trial, SBF ignored his legal advice and [buckled]( under the pressure of prosecutors’ questioning. SBF’s testimony was so bad that Mills is now cross-examining his own career. “I’m not going to get myself emotionally involved on a very deep personal level in a case like this again,” he told Bloomberg. Read: What makes a good cat? ([Vox]( NEWS [What else is brewing](#) - [Choice Hotels]( launched a hostile $8 billion takeover bid of its budget hotel rival Wyndham, after its repeated attempts to make a deal were rebuffed. - [E3]( once the gaming industry’s premier event, is permanently canceled, its organizers confirmed. - [Zara]( pulled an ad campaign after critics argued it evoked images of the Israel-Hamas war. - [Harvard]( president Claudine Gay will not resign, the school’s governing board announced, following her widely panned appearance at a congressional hearing on campus antisemitism. - [Al Michaels]( was reportedly removed from NBC’s NFL playoff coverage this year, which surely has nothing to do with the longtime broadcaster’s painfully sleepy call of last year’s thrilling Wild Card game. RECS Dive into cinema history: 101 of the greatest films you’ve [never seen before]( according to the British Film Institute. Read: Why your office’s [holiday party]( is probably going to be pretty lame this year. Play: The best family [board games]( and where to buy them. Watch: The new [trailer]( for Dune: Part Two has sandworms galore. Manage your $$: Money with Katie’s 2024 Wealth Planner can help you start 2024 right with an expertly crafted budget plan, debt payoff tracker, and more. [Shop now](. Intelligent investment: The AI marketing platform of the future is offering early investors 20% bonus shares. [Invest in RAD AI by midnight PST]( *A message from our sponsor. GAMES [The puzzle section](#) Word Search: Today’s puzzle is for all the people who ate lunch in the high school band room. The jocks can play too, we suppose. [Solve it here](. 1989 birthdays trivia Taylor Swift celebrates her 34th birthday today, but this trivia section is not about Taylor Swift—it’s about other famous people born the same year she was, in 1989. We’ll give you the initials of a celebrity born in 1989 and what they’re known for, and you have to guess the name of the person. - Actor D.R. - Actress D.J. - Football player T.K. - Singer J.D. - Actress B.L. - Singer J.J. - Soccer player A.M 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 - Daniel Radcliffe - Dakota Johnson - Travis Kelce - Jason Derulo - Brie Larson - Joe Jonas - Alex Morgan Word of the Day Today’s Word of the Day is: besmirched, meaning “sullied” or “having one’s reputation damaged.” Thanks to Ryan Maxey from Michigan and others for the honorable suggestion. Submit another [Word of the Day here](. ✤ A Note From RAD AI This is a paid advertisement for RAD AI’s Regulation CF offering. Please read the offering circular at invest.radintel.ai Written by [Adam Epstein]( Sam Klebanov, [Matty Merritt]( and [Cassandra Cassidy]( Was this email forwarded to you? Sign up [here](. Take The Brew to work - Marketers: [Marketing Brew]( - Corporate: [CFO Brew](  [HR Brew]( - Tech: [IT Brew](  [Tech Brew]( - Retailers: [Retail Brew]( - Healthcare: [Healthcare Brew]( Get smarter in just 5 minutes - Money & Career: [Money With Katie](  [Raise](  [Bossy]( Business education without the BS - Programs in [Business Essentials]( [Analytics]( and [Leadership]( 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