🇺🇦 The impact of Russia sanctions

…from oil to beer, companies and consumers are nervous about Russia sanctions [Disclosures](   This new Kanye album is fire [Photodisc via Getty Images]   Yesterday’s Market Moves   Dow Jones 33,132 (-1.38%) S&P 500 S&P 500 (-1.84%) Nasdaq 13,037 (-2.57%) Bitcoin $37,141 (-2.90%) Dow Jones 33,132 (-1.38%) S&P 500 S&P 500 (-1.84%) Nasdaq 13,037 (-2.57%) Bitcoin $37,141 (-2.90%) Hey Snackers, The conflict in Ukraine has unfortunately escalated: Late yesterday, Russian President Vladimir Putin ordered a military operation in Ukraine, and the country confirmed that several of its cities were under attack. President Biden said Ukraine is facing an "unprovoked and unjustified attack," and that the world would "[hold]( Russia accountable." Yesterday, the US sent extra troops to Eastern Europe to bolster security. FYI: [70K]( US troops are permanently stationed in Europe through NATO, the US-led org founded after WWII to protect its now 30 members. Ukraine isn’t part of it. Meanwhile, the Dow plunged to its [lowest]( level this year. Sanctioned Companies brace for impact from Russia sanctions, but consumers could get hit hardest Refresh for updates... Days after Russia sent troops into Moscow-backed regions of Ukraine, the US has been upping its response by adding to targeted financial sanctions. Yesterday the US [slapped]( sanctions on the company building Russia’s $11B Nord Stream 2 gas pipeline which spans from Russia to Germany after Germany [halted]( its opening. - Punishment: Western leaders are using the pipeline as leverage against Russia, since oil exports = 30% of Russia's economy. - Risk: Russia supplies more than a third of the EU’s natural gas, and could retaliate by shutting off some of those fuel exports. - Next: More sanctions seem likely. Late last night, President Biden [said]( the US and its allies "will be imposing severe sanctions" on Russia, and will continue to provide support to Ukraine. Companies are nervous... Most Western corporations don't have operations in Russia and Ukraine. But large multinationals that do are [bracing]( for further sanctions, which Western leaders could leverage: - Oil: [BP]( [Exxon]( and [Shell]( all have significant investments in Russia that could be threatened by sanctions on Russia’s energy market. - Banks: [Chase]( and [Citi]( which do business in Russia, would have to cut ties with local lenders if broad financial sanctions happen. Cross-border payments could be frozen, which might mean lost $$$. - Cars: Dodge and Jeep parent [Stellantis]( says it would limit production in Russia if sanctions disrupt its operations. - Beer: Danish brewer [Carlsberg]( is Ukraine’s biggest beer seller, while Russia accounts for 10% of its sales. It has breweries in both countries and said it’s working on contingency plans in case sanctions disrupt beer-making. THE TAKEAWAY Sanctions could hit consumers hardest… especially Europeans. Western companies were relatively unaffected by Russia’s 2014 annexation of Ukraine’s Crimean Peninsula. American and EU officials say sanctions will be harsher this time, and consumers could feel that at the pump. As the world’s #2 exporter of natural gas and #3 exporter of oil, Russia can cut supply at a time when prices are already sky high. Americans, who are [facing]( for the highest gas prices since 2013, could experience even more pump anxiety if global supply shrinks. Ye Kanye goes direct to consumer with his new album, as artists’ streaming frustration grows Yeezy taught me… Kanye West isn't afraid to be vocal, whether it’s about his [personal]( life or his moves to take on an "oppressive" music industry. The artist now known by “‘Ye’” live-streamed a “Donda Experience” event on Tuesday to [promote]( his new “Donda 2” album. Ye’s making the record available exclusively on a physical $200 “Stem Player” device (think: a new-age iPod that [looks]( like a smoke detector). Why: Ye wants to bypass streaming platforms like [Apple]( [Amazon]( [Spotify]( and YouTube. Kanye also tried to skip those streamers with his launch event: - Ye originally said the event would stream only at [IMAX]( theaters, and [later]( only on the Stem site. But ultimately it streamed free on YouTube and Amazon’s Twitch (awk). - The original Donda set a streaming record for Apple Music last year when it got 60M streams on day #1. Kanye [says]( he turned down $100M from Apple for “Donda 2.” The revolution will be streamed… but it’s less certain where. Many musicians have criticized streaming platforms for their payout structures: artists reportedly earn only about 10% of streaming revenue, so they have to hit 1M streams just to pocket $5K on Spotify, Apple, or Amazon. Several stars have attempted to ditch major platforms in a push to better control their earnings: - Beyoncé made her breakthrough 2016 album “Lemonade” exclusive to Tidal, a platform formerly co-owned by her husband, Jay-Z, and his frenemy Kanye. But Tidal never caught on, and last year [Square]( bought it. - Taylor Swift has shunned both Apple Music and Spotify at various times, and [re-recorded]( her “Red” album to claim streaming bucks back from labels. THE TAKEAWAY Habit platforms are sticky… It’s one thing to fight streamer payouts, but another to fight listener habits. Taylor, Kanye, and Beyoncé can afford to ditch Spotify or Apple temporarily to fight for better terms. But they’ve all returned to where the ears and playlists are: Spotify and Apple have a [combined]( global market share of more than 50%, but they’re not invincible. Example: Spotify shares [fell]( 6% in the days after Neil Young jumped ship in protest of Joe Rogan’s vax misinfo, and they still haven’t recovered. What else we're Snackin' - [Payout]( Lawmakers are finalizing a deal that would require pharma companies involved in the opioid epidemic to pay out $32B to victims — significantly less than the $246B Big Tobacco settlement of the ’90s. - [Reuse]( Tired: Milkmen. Wired: BBQ boys. Shoppers at some [Kroger]( Fred Meyer stores can now buy sauce and shampoo in glass bottles and return them, thanks to recycling platform [Loop](. - [Network]( LinkedIn is launching a podcast network to attract biz-friendly creators. The “networking network” plans to debut original pods, including one hosted by cofounder Reid Hoffman. - [Hacked]( A cyberattack took down some Ukrainian government and bank websites, part of what the White House says is an attempt by Russia to destabilize Ukraine. - [DIY]( [Lowe's]( raised its sales forecast for the year as Americans take on larger home renovations. The big-box retailer is also [partnering]( with Instacart for same-day delivery. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. The Snacks Daily Podcast Forget Bagel Bites: Kraft Heinz is tapping AI to create your next favorite snack, (plant-based hot dogs, anyone?). [Tune in]( to hear how the condiment legend is using “personalization at scale” to stage a comeback. Snack Fact Of the Day [The US is the world’s largest plastic polluter, contributing 278 pounds of plastic per person each year]( Thursday - Weekly jobless claims - Earnings expected from: Intuit, Moderna, Anheuser-Busch InBev, Block, Keurig Dr Pepper, Coinbase, Monster Beverage, Planet Fitness, Etsy, and Discovery Authors of this Snacks own shares of: Tesla, Amazon, Spotify, Apple, Block, Google, and Exxon ID: 2052707 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. 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