☕ Danger vs. efficiency

Why Apple is pulling some watches off shelves... [Advertisement] December 19, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [The Ascent]( Good morning. Feel like you’ve been seeing a lot of Travis Kelce lately, even when he’s not playing football? You’re not wrong: The Chiefs tight end/most famous boyfriend in the world has hawked products in [more commercials]( during NFL games so far this season than any other celeb, with 375 ad appearances, according to iSpot. Kelce’s teammate Patrick Mahomes was in second place (341), followed by Kevin Miles, aka Jake from State Farm (247). Before you ask, these deals were locked in before he started dating Taylor Swift, but advertisers ramped up Kelce’s exposure knowing they had marketing gold on their hands. —Molly Liebergall, Sam Klebanov, Dave Lozo, Abby Rubenstein, Neal Freyman MARKETS Nasdaq 14,905.19 +0.62% S&P 4,740.56 +0.45% Dow 37,306.02 +0.00% 10-Year 3.95 +0.66% Bitcoin $42,614.12 +3.06% VF Corp $18.36 -7.79% *Stock data as of market close, cryptocurrency data as of 4:00am ET. [Here's what these numbers mean.]( - Markets: Stocks kept up their holiday spirit yesterday, [rising]( to keep the December rally going. But it looked more like a lump of coal for the company that owns Vans and The North Face, VF Corp., which fell after revealing that a cyberattack would prevent it from fulfilling some orders in time for Christmas.  TECH [Facing antitrust snags, Adobe and Figma call it quits]( [Adobe and Figma logos tear in half]( Francis Scialabba The next time you’re feeling sad about a breakup, just be glad you don’t have to pay a fee for ending the relationship—like Adobe. The software giant’s planned $20 billion acquisition of the design tool Figma officially [fell apart yesterday]( amid mounting pressure from competition regulators, putting the kibosh on what would have been one of the largest private software takeovers in history. While the two companies mutually decided to cancel their deal, Adobe now has to pay its almost-subsidiary a $1 billion cash termination fee. Rewind: In September 2022, Adobe [agreed to buy]( Figma—a [fast-growing rival]( to some of Adobe’s tools that’s used by Big Tech firms, including Uber, Zoom, and Google—for roughly double its value. Since then, EU and UK antitrust [investigators said]( that the acquisition would harm customers and stifle innovation in product-design software by eliminating competition between two leaders in the space. Regulators suggested the software companies sell off competing products to save the deal, but the CEO of Figma [said]( his company and Adobe “no longer see a path toward regulatory approval.” It’s a tough time to be in Mergers & Acquisitions The Adobe x Figma breakup is one of many recent acquisition attempts that have landed in the regulation hot seat in what appears to be an era of heightened antitrust enforcement in both the US and Europe, especially in tech: - Meta finally sold off Giphy in May after UK regulators [blocked the acquisition]( two years ago. - On Sunday, the American biotech company Illumina agreed to sell off its cancer diagnostic test-maker, Grail, after losing a court battle with the Federal Trade Commission (which is challenging mergers at a [record pace]( under Biden). Zoom out: Some analysts worry that antitrust crackdowns will dampen opportunities for dealmaking, but for now, the sun is still shining—companies announced [more than $40 billion in proposed M&As]( yesterday, more than quadruple the value announced on the last Monday before Christmas in 2022.—ML   PRESENTED BY THE ASCENT [Take a financial W]( [The Ascent]( Ever tried to level up your money game when you’re dealing with debt? It’s like running a marathon where the finish line keeps getting moved a few miles ahead. Talk about discouraging. But you don’t have to go it alone. Say hello to your interest-crushing ally: [this balance-transfer credit card](. The team at The Ascent gave it five stars, and it’s easy to see why—this bad boy comes with: - 0% intro APR for 18 months on balance transfers - up to 5% cash back Say you’ve got $10,000 in debt. You can potentially [save $1,863 in interest charges]( using this card’s 0% intro APR offer. [Leave debt in the dust](. WORLD [Tour de headlines](#) [A US Steel plant]Drew Angerer/Getty Images US Steel is turning Japanese in a $14.1 billion deal. US Steel, once the world’s largest company and a symbol of US manufacturing might that counts J.P. Morgan and Andrew Carnegie among its founders, has [agreed to be bought]( by Japan’s Nippon Steel. The deal ends months of speculation over the 122-year-old steel company’s fate after it rebuffed a $7.3 billion offer from domestic rival Cleveland-Cliffs over the summer. Assuming regulators and US Steel’s shareholders sign off on the purchase, it would make Nippon the second-biggest steel company globally and give it a major presence in the US market, which uses a lot of steel, especially to make cars. Nikola founder gets four years for fraud. Trevor Milton was [sentenced]( to four years in prison yesterday after having been found guilty of defrauding investors in the electric vehicle company he founded. While that’s less than the Elizabeth Holmes-level, 11-year sentence prosecutors had pushed for, it’s more than the probation he requested. Nikola was briefly the third-most-valuable vehicle company in the US, but its value plunged when a short seller accused the company of lying about its tech. Prosecutors agreed and [claimed]( Milton fibbed about the company’s progress, including in an infamous video that purported to show one of its trucks operational and moving when it was really just rolled down a hill. The pope says priests can bless same-sex couples. In a major shift for the Roman Catholic Church, the Vatican handed down [new rules]( yesterday allowing priests to give blessings to same-sex couples—but stressed that this blessing could not resemble a wedding. Although the church did not change its position on marriage, the new guidelines do effectively overturn a 2021 decision that prohibited any blessings for gay couples. It’s the latest sign of Pope Francis softening the church’s stance toward LGBTQ people, which has drawn backlash from more conservative clergy. INTERNATIONAL [Red Sea attacks are disrupting global supply chains]( [BP vessel]( Chris Graythen/Getty Images British Petroleum became the latest company to pause shipping via the Red Sea yesterday, citing the violent threat of Iran-backed Houthi rebels in Yemen. At least nine other carriers, including the Danish cargo giant Maersk, have recently said they’ll temporarily steer clear of the treacherous waters. The Houthi militants have been attacking commercial vessels passing through the southern part of the sea ever since the Israel–Hamas war erupted in October. It’s creating a [global issue]( The Red Sea flows into the Suez Canal, the fastest maritime link between Europe and Asia, which about 12% of world trade passes through. Danger vs. efficiency Many shipping companies have decided to [sacrifice speed]( for safety by sailing around the southern tip of Africa instead. While Houthi attacks have already [made]( moving cargo pricier, maritime journalist John Konrad [pointed out]( that rerouting energy shipments is likely to cause even bigger headaches since there are fewer spare oil tankers than container ships, and they don’t have the ability to win back significant ETA by speeding up. Though most oil carriers aren’t rerouting, oil futures prices went up 1.6% yesterday, along with a rise in the cost of insuring ships against the perils of Red Sea voyages. Ships will soon get more bodyguards: The US, multiple European countries, Bahrain, and several others have agreed to vastly expand the international naval force that already patrols the Red Sea. The US also moved the USS Dwight D. Eisenhower aircraft carrier near Yemen’s coast as it reportedly considers launching a strike at Houthi positions.—SK   TOGETHER WITH FIDELITY [Fidelity]( A 401(k) built for a small biz. Many small-business owners assume that providing their employees with a traditional 401(k) only = high costs and time-consuming administrative tasks. That’s why [Fidelity Advantage 401(k)]( was designed with affordable, transparent pricing—and fewer management responsibilities for employers. [Learn more](. INTELLECTUAL PROPERTY [You’re running out of time to buy these Apple watches]( [Apple Ultra 2 watches for sale]( Justin Sullivan/Getty Images Apple is accepting a slap on the wrist. The company will [halt sales]( of its Series 9 and Ultra 2 smartwatches in the US due to a pending import ban stemming from a patent dispute with medical tech company Masimo over a sensor that measures blood oxygen saturation. Apple announced it would preemptively pull the watches from its online store on Thursday and physical locations on Dec. 24 to comply with an order from the International Trade Commission (ITC) barring the import of the watch models after it found them to violate Masimo’s IP. While the outlook is bleak, Apple can still hope for a Christmas miracle. - The Biden administration has until Dec. 25 to overturn the ITC ruling. But history shows that’s unlikely; the last time a president vetoed an ITC decision was in 2013, when Barack Obama overturned an Apple import ban from a patent dispute with Samsung. Another hit to the bottom line: Apple, already coming off four straight quarters of declining sales for the first time since 2001, cautioned investors in November that holiday sales were expected to be sluggish and specifically cited an expected drop in sales from its wearables category. Still, Apple is working on possible technical and legal [workarounds]( to protect its $17 billion watch business, according to Bloomberg.—DL   GRAB BAG [Key performance indicators](#) [ Southwest plane]Aaron P, Bauer-Griffin/Getty Images Stat: Is gearing up for holiday travel giving you unpleasant flashbacks to last year when Southwest canceled almost 17,000 flights, leaving more than 2 million people stuck (some at their in-laws’ house!)? You haven’t been forgotten—the Department of Transportation just slapped Southwest with its largest consumer protection [fine]( ever over the meltdown. The fine is $140 million, with $35 million going to the government and the rest covering perks that went to passengers affected by the 2022 snafu or for travelers facing future delays and cancellations. And the DOT means business: The Southwest penalty is ~30x the next largest fine an airline has paid for such violations. Quote: “Blue Origin needs to be much faster.” Jeff Bezos said that in a [recent interview]( but the former CEO didn’t get his wish, because yesterday, Blue Origin had to [scrub]( its first planned rocket launch in more than 15 months at the last moment due to what it described as “a ground system issue.” Even after it gets its rocket off the ground again, Blue Origin has some catching up to do: The company employs the same number of people as Elon Musk’s SpaceX (11,000), but it has launched zero rockets this year, while SpaceX [has sent]( almost 100 rockets and thousands of satellites into space over the same period, per Ars Technica. Read: All the articles Bloomberg’s editors wish they had written this year. ([Bloomberg]( NEWS [What else is brewing](#) - [A volcano]( erupted on Iceland’s Reykjanes Peninsula yesterday near a town that was evacuated last month after a series of earthquakes signaled an eruption was coming. The government said the volcanic activity was the most powerful the area had seen since a major disaster in the 1970s. - [An earthquake]( in northwestern China killed more than 100 people, state media said. - [Jonathan Majors]( was convicted of assaulting and harassing his former girlfriend but was acquitted of some charges. [Disney]( dropped the actor from its Marvel franchise following the jury’s decision. - [A new Texas law]( will allow police to arrest migrants for unauthorized border crossings, setting up a future confrontation with the federal government over immigration. - [A powerful rainstorm]( along the East Coast knocked out power to more than 800,000 people at one point and caused flooding. - [The EU]( opened a formal investigation into whether X is breaking European laws on disinformation and hate speech. It’s the first probe ever under the new Digital Services Act, and potential penalties include a fine equal to 6% of the company’s global income. RECS [Tuesday To Do List] Have a good cry: [This site]( claims a weekly tear session is good for your mental health and provides the lachrymose videos to make it happen. Decide what to eat: A tuna melt, brownies, and tender meatballs all made this list of the year’s [most popular recipes](. Watch: The sitdown between Cameo star and ex-congressman [George Santos and interviewer Ziwe]( is worth viewing, even if you’re not very online or very political. Let it snow: [This map]( shows your probability of a white Christmas based on past satellite data. A fair point: Proposed legislation could [disrupt the future]( of credit card points, such as cash back and travel rewards. Wanna speak out? [Learn more]( with The Points Guy.* Small microchip, big potential: This startup’s microchip fits on the head of a pin—and it could change [the way pain is diagnosed]( and treated. Learn more in [our latest video]( *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: No black squares in today’s Mini. It’s a little more challenging, but you’ve been practicing all year. [Give it a shot](. Most popular cars Experian released its list of the [top 10 new cars by registration]( in the US last quarter. We’ll give you the make of the vehicle, but you have to determine the model. See how many you can get. - Ford _____ - Tesla _____ - Toyota _____ - Chevrolet ______ - Honda ______ - Toyota ______ - Nissan ______ - Toyota ______ - Toyota ______ - Tesla _______ FROM THE CREW [Ensure your access]( [Introducing All Access, with $200 off for a limited time]( In case you missed it—Morning Brew Learning has officially launched All Access: the one-stop shop for career development. For the first time ever, get access to unlimited content, networking, and live events for a full year. You can dive into them whenever you need to build influence at the office, create a dashboard your boss can understand, or finally talk to the intern about them calling the CEO “mother.” And you get $200 off if you [sign up now](. ANSWER 1. Ford F-150 2. Tesla Model Y 3. Toyota RAV4 4. Chevrolet Silverado 5. Honda CR-V 6. Toyota Camry 7. Nissan Rogue 8. Toyota Tacoma 9. Toyota Corolla 10. Tesla Model 3 Word of the Day Today’s Word of the Day is: lachrymose, meaning “tending to induce tears.” Thanks to Chris Hamby from Lexington, KY, for making us weepy with the suggestion. Submit another [Word of the Day here](. ✳︎ A Note From Fidelity Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 © 2023 FMR LLC. All rights reserved. 1120216.1.0 Written by [Neal Freyman]( [Abigail Rubenstein]( [Molly Liebergall]( Sam Klebanov, and Dave Lozo 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