☕️ Plush wars

Why some Uber and Lyft drivers are on strike today... February 14, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [SmartAsset]( Good morning. Roses are red Violets are blue Happy Valentine’s Day From us at the Brew —Sam Klebanov, Cassandra Cassidy, Matty Merritt, Adam Epstein, Neal Freyman MARKETS Nasdaq 15,655.60 -1.80% S&P 4,953.17 -1.37% Dow 38,272.75 -1.35% 10-Year 4.316% +14.4 bps Bitcoin $49,719.19 -0.44% JetBlue $7.38 +21.58% *Stock data as of market close, cryptocurrency data as of 2:00am ET. [Here's what these numbers mean.]( - Markets: Stocks [tanked]( on Tuesday, shattering investors’ hearts, after the latest inflation data came in hotter than expected (more on that below). But things were rosier for JetBlue, which skyrocketed nearly 22% on the news that activist investor Carl Icahn bought a 10% stake in the airline.  ECONOMY [Inflation is in retreat, but prices still bite]( [A graphic of a food receipt in the shape of an upward arrow]( Francis Scialabba Off-the-charts inflation may be a distant 2022 phenomenon, but—unlike the buzz around the Oscars slap—we’re not entirely over it. Price growth is [still not back]( to levels that would satisfy Jay Powell, and shoppers continue to deal with the fallout. Prices grew faster than economists expected last month, according to the consumer price index data the government released yesterday. - They climbed 0.3% in January (slightly more than in December) and 3.1% from a year prior. - Excluding food and energy prices, January’s inflation was 0.4%, a bit over December’s reading, and 3.9% more than the prior January. Finance freaks who talk about interest rates in social settings will point out that things aren’t so bad, since inflation isn’t too far from the Fed’s 2% annual target. But shoppers might argue that just because prices are growing more slowly doesn’t mean things are costing them less. Checkout aisle blues While used cars and clothes became cheaper last month, a big jump in housing costs was the culprit for most of last month’s consumer price growth. Food is also getting more expensive: Grocery prices rose more than in previous months, while dining out became 5.1% pricier than a year before. Food inflation has also taken more insidious forms. Some brands are engaging in a devious tactic dubbed “shrinkflation”—keeping sticker prices the same while reducing the portion contained within a package. President Biden shared a [video]( on Super Bowl Sunday in which he scolded companies for selling downsized game day snacks without downsized prices. He’s hoping the message will hit a nerve with Americans who’ve been feeling glum about the economy despite low unemployment, rising wages, and a surging stock market. As for the mythical rate cuts…the latest inflation report makes it more likely the Fed will wait longer to lower interest rates.—SK   PRESENTED BY SMARTASSET [Navigate retirement wisely]( [SmartAsset]( This Princeton grad’s startup raised $161m to [help people plan for retirement](. If you’re one of the whopping 110 Americans over age 50—or a wise millennial planning ahead—SmartAsset’s no-cost tool makes it easy to find vetted financial advisors who serve your area. Research suggests that people who work with a financial advisor could end up with 15% more money to spend in retirement.* Kick-start your retirement plans today. Try SmartAsset’s [no-cost tool]( to get matched with up to three financial advisors serving your area, each legally bound to work in your best interest. It’s never too late to work toward a comfortable retirement. [Get your financial advisor matches today](. WORLD [Tour de headlines](#) [Department of Homeland Security Secretary Alejandro Mayorkas]John Moore/Getty Images House Republicans impeached Alejandro Mayorkas on their second try. The Homeland Security Secretary was [impeached]( by a single vote on Tuesday night, preventing a second embarrassment for House GOP members after their first attempt to punish Mayorkas for his alleged mishandling of the southern border failed. Republicans tried for months to impeach Mayorkas, even though bipartisan legal scholars say his actions do not constitute “high crimes and misdemeanors” required for a conviction, while many observers argue the impeachment attempt itself is unconstitutional. Mayorkas is now the first sitting cabinet member in US history to be impeached. The charges are likely to be rejected in the Senate. Leaders met in Cairo to negotiate a Gaza cease-fire agreement. CIA Director William Burns [held talks]( with Egyptian President Abdel Fattah Al-Sisi, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani, and David Barnea, the head of Israel’s Mossad intelligence agency, in an attempt to advance negotiations between Israel and Hamas. National Security Council Spokesperson John Kirby told reporters that talks were “moving in the right direction” but cautioned that “nothing is done until it is all done.” President Biden said the US-brokered deal would free hostages and pause fighting for about six weeks. The CDC is reportedly considering dropping its five-day Covid isolation recommendation. Starting in April, the agency will instead advise Americans that they no longer need to stay home if they are fever-free for at least 24 hours without the help of medication and their other symptoms are improving, the Washington Post reported. The [guidelines under consideration]( which would mark the CDC’s first change to Covid isolation protocol since 2021, come as most Americans have some immunity to the virus from vaccination or prior infection. According to experts, the decision would align Covid guidelines with those for flu and RSV. LABOR [Uber and Lyft drivers plan Valentine’s strike for fair pay]( [Uber logo on a picket sign in the shape of a broken heart]( Francis Scialabba If your romantic plans for today involve calling a car to get to your date, ordering in, or picking up your paramour from the airport, you may want to fire up Plan B. As part of a nationwide strike by Uber and Lyft drivers and DoorDash delivery workers, more than 130,000 workers are expected to [refuse rides]( to and from airports in 10 US cities from 11am to 1pm today. An estimated 3,000 Deliveroo and UberEats drivers in the UK will also halt work for five hours. The strike, on one of the busiest days of the year for ride-hailing and delivery apps, comes a week after Lyft announced it would guarantee weekly earnings in a bid to [attract more drivers]( and Uber posted its first annual profit since going public. Lyft has had a bumpy ride this week: Its stock shot up yesterday in after-hours trading due to a typo in its earnings release, and then pulled back once it was corrected. Why are they striking? Blame it on the a-a-a-a-a-algorithm. Since companies started using an algorithmic pricing model, drivers are no longer guaranteed a fixed payout from a ride, and many have seen their earnings [decrease](. In 2023: - Uber drivers’ monthly average take-home earnings fell 17%, according to gig data provider Gridwise. - Roughly 15% of Lyft drivers in the US earned less than 70% of what riders paid. But…Uber claims drivers in the US make roughly $33/hour and are satisfied with their earnings. It also said it doesn’t expect the strike to have a significant impact on trips or prices.—CC   TOGETHER WITH KNIGHTSCOPE [Knightscope]( Make money while you sleep. Everyone could use some extra cash. That’s why [Knightscope]( high-yield investment opportunity is so exciting. You could earn 10% annual interest on your investment for up to five years. But you’ll need to move quickly to take advantage of it—this opportunity ends March 14. [Learn more and start earning interest today](. RETAIL [Squishmallows and Build-A-Bear are suing each other]( [Build-A-Bear Skoosherz frog plushie next to Jazwares Squishmallows frog plushie. Both look similar with simple smiling faces and round bodies.]( Build-A-Bear Skoosherz (left), Jazwares Squishmallows (right). A very soft legal battle is brewing between two powerful plush-makers. Jazwares, the owner of the popular Squishmallows toys, [sued]( rival Build-A-Bear, claiming the latter’s Skoosherz stuffed creatures are a knock-off of its flagship product. Build-A-Bear then countersued, arguing it’s not against the law to slap a tiny face on a pillow. Some background…Squishmallows [exploded in popularity]( with the help of celebrity buzz and TikTok mentions during the pandemic. Warren Buffett’s Berkshire Hathaway got hold of those cuddly guys when the firm purchased a $12 billion controlling stake in Jazwares in 2022. A Squishmallows offering was the most popular toy of that year, per research firm Circana, with 100 million units sold. Last month, Build-A-Bear began selling its own line of huggable, round stuffed animals with small smiles. Jazwares claims the toys are too close to its own with their “simplified Asian-style kawaii faces.” This legal battle isn’t just for shelf space. The stuffed animal industry is Beanie Babies mania-level hot right now, especially for adults. Plushie sales were [up 4%]( last year, hitting $1.7 billion in October even as overall toy sales decreased. Toy brands reported that people over the age of 12 make up about a quarter of all sales.—MM   GRAB BAG [Key performance indicators](#) [A silverback gorilla and a baby gorilla]Paul Souders/Getty Images Stat: What do apes, elephants, and whales have in common, other than being NFT collections? Sadly, they are among the 44% of migratory species with declining populations, according to a new United Nations report. One-fifth of the 1,200 migratory species monitored by the UN are [threatened with extinction](. While some conservation efforts like wildlife crossings and poaching regulations are helping species relocate safely, experts say those initiatives need to be strengthened. The report follows a 2019 UN assessment that found that 1 million of the Earth’s 8 million species are at risk of extinction due to overconsumption, pollution, and other human activities. Quote: “A genuine Chernobyl-level disaster.” If you avoided being compared to the worst nuclear disaster in history yesterday, you had a better day than Madame Web. The upcoming superhero movie, which stars Dakota Johnson as the titular Marvel character, is getting thoroughly [trashed by critics]( including Rolling Stone’s David Fear, who called it “the Cats: The Movie of superhero movies” in addition to equating it with a nuclear event responsible for the deaths of thousands of people. The film looks to be another major setback for Sony’s Spider-Man cinematic universe following the similarly skewered Morbius. Read: The Tesla worker who died in a 2022 crash may have been the first “Full Self-Driving” fatality. ([Washington Post]( NEWS [What else is brewing](#) - [OpenAI]( is testing a new ChatGPT feature that gives the chatbot the ability to remember information about users from one interaction to the next. - [Elon Musk]( denied reports that Starlink is selling terminals to Russia amid its invasion of Ukraine. - [Netflix]( will hold its first in-person upfront presentation for advertisers in May as it builds out its cheaper, ad-supported subscription tier. - [Paramount Global]( cut 800 jobs, or about 3% of its workforce, just two days after its network, CBS, garnered record-breaking Super Bowl ratings. - [Katy Perry]( announced she’s leaving American Idol at the end of this season, after seven seasons as a judge on the reality singing show. Q&A [Serena Kerrigan is here to spice up your V-Day]( [Serena Kerrigan]( Gilbert Flores/Getty Images Morning Brew chatted with Serena Kerrigan, the self-proclaimed Queen of Confidence, about growing her brand, hiring the right people, and making first dates less awkward. [Check it out here](. RECS [Wednesday to-do list] Play: This game shows you a photo from history, and you have to guess [where and when]( it was taken. Crack your knuckles: [Nine myths]( about joints and arthritis. Let’s have a word: Dictionary.com’s new words and phrases [for 2024]( include “greedflation,” “shacket,” and “Barbiecore.” Walk into Mordor: The Fantasy Hike app uses your walking data to [track your progress]( across (a copyright-friendly version of) Middle-earth. Let’s ride: Rep your favorite business podcast and grab our limited-release [Morning Brew Daily sweatshirt]( before we run out. Unlock euphoria: Feel all sorts of this V-Day with MysteryVibe’s [Crescendo 2]( the bendable vibrator that improves experiences and arousal. Here’s [30% off]( *A message from our sponsor. GAMES [The puzzle section](#) Word Search: Our Valentine’s Day gift to you is [this romantic Word Search](. Famous duos On Valentine’s Day, let’s see how well you know famous pairs. We’ll give you one half of a famous pairing, and you have to name the other. - Founders Bill Gates & _____ - Cartoon characters Yogi Bear & ______ - Lakers dynamic duo Magic Johnson & _____ - Sister, Sister stars Tia & ______ - Traditional succotash pairs corn & _____ - Pennsylvania cities Scranton & ______ - Outkast members Big Boi & ______ 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 - Paul Allen (they co-founded Microsoft) - Boo-Boo - Kareem Abdul-Jabbar - Tamera - Lima beans - Wilkes-Barre - André 3000 Word of the Day Today’s Word of the Day is: paramour, meaning “a lover, especially the illicit partner of a married person.” Thanks to Tom from Grand Haven, MI, for the sneaky suggestion. Submit another [Word of the Day here](. ✢ A Note From SmartAsset *[The Journal of Retirement, Winter 2020](. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of your future results. Please follow the link to see the methodologies employed in [The Journal of Retirement study](. ✳︎ A Note From Knightscope This is a paid advertisement for Knightscope Inc.’s Reg A offering. Please read the offering circular at [(. Written by [Adam Epstein]( Sam Klebanov, [Cassandra Cassidy]( [Matty Merritt]( and [Neal Freyman]( 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 © 2024 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011