🚗 Biden’s EV labor clash

…and Coach’s parent adds Michael Kors to its (designer) bag   Bidin’ time till a deal is reached (Mandel Ngan/Getty Images)   [Sponsored by]( Yesterday’s Market Moves   Dow Jones 35,176 (+0.15%) S&P 500 4,469 (+0.03%) Nasdaq 13,738 (+0.12%) Bitcoin $29,436 (-0.47%) Dow Jones 35,176 (+0.15%) S&P 500 4,469 (+0.03%) Nasdaq 13,738 (+0.12%) Bitcoin $29,436 (-0.47%) Hey Snackers, An update on Subway’s bizarre promo: the sandwich chain said that nearly 10K people offered to legally [change]( their first name to “Subway” for a lifetime of free footlongs. Move over, Sarahs — the Subways are coming. Stocks squeaked out tiny gains yesterday after July’s consumer-price report showed that inflation continued to slow, raising hopes that the Fed won’t hike rates in September. Prices were up 3.2% from a year ago (housing and rent = biggest contributors by far). Charging 2 Biden priorities clash as a major strike threat looms for GM, Ford, and Stellantis Revvin’ the labor engine… Tensions are [mounting]( between the 150K-member United Auto Workers union and the Detroit Three automakers ([GM]( [Ford]( [Stellantis]( as the parties negotiate a new contract. Central to the talks is the EV transition and what it means for workers — a conflict that could pit two of President Biden’s top priorities (green tech and pro-labor policy) against each other. The main issue: most EV-battery plants aren’t unionized. Meanwhile, Biden wants two-thirds of all new cars to be electric by 2032. - Charging: Calling for a “just transition” to EVs, the UAW wants workers at EV plants to be protected by the same wage/safety standards enjoyed at union plants. Automakers want more flexibility to compete with nonunion rivals like [Tesla]( and [Toyota](. - Keyed up: Typically the UAW holds strikes against one company at a time, but this year it says a strike against all Big Three is possible. This week, UAW President Shawn Fain literally threw proposals from Jeep maker Stellantis into the trash. It’s a stick(y) shift… The UAW has blasted the Biden admin over not tying its big EV incentives (like the $9.2B loan Ford received in June to build three US battery factories) to wages or working conditions. Pay at one Ohio EV-battery plant owned by GM and LG Energy starts at $16.50/hour, compared to the $32/hour workers earned at a traditional car plant in the area that closed in 2019. THE TAKEAWAY Adoption isn’t just on consumers… it’s also on workers, companies, and governments. The UAW, which has refused to endorse Biden’s reelection, says the president must link federal incentives with union standards. While EVs require about 30% less labor to produce than gas cars, the industry needs to get workers on board to scale the electric transition. If not, a pricey strike could ensue. The 2019 strike against GM cost the company $4B. Sponsored by Hedonova Art, wine, music — but for your portfolio High net worth and institutional investors add up to a third of their portfolio in alternative assets to reduce stock market volatility risk. [Hedonova]( streamlines the time-consuming process of researching and choosing investments by providing exposure to alternative assets that were once out of reach, like equipment finance, litigation finance, startups, music royalties, wine, art, and more — all in one diversified fund. Managed by investment veterans, Hedonova has +$700 million assets under management and was awarded [Best Multi-Strategy Hedge Fund]( at Hedgeweek European Awards 2023. Open to accredited investors and SEC-regulated, [you can get started with as little as $5,000](. Clutch Coach’s parent is adding Versace owner Capri to its bag in an $8.5B designer merger Coach clutch & Jimmy Choos… a 2000s fashion icon. Yesterday, Coach parent [Tapestry]( agreed to buy rival US luxury house [Capri]( for $8.5B. Capri owns luxe names like Jimmy Choo, Versace, and Michael Kors. Tapestry’s collection includes designers like Stuart Weitzman, Kate Spade, and Coach. Tapestry and Capri earn about $12B in combined annual sales, and Coach alone hopes to bring in $8B by 2025. Now Tapestry wants to use its new bag of brands to go from fashion house to fashion mansion: - #Synergy: By joining, both companies are expected to save $200M in operating and supply-chain costs within the next three years. Capri shares soared 55% after the announcement, while Tapestry plunged 16%. Not your mom’s leather bag… For years, US luxury houses have lagged behind European rivals like LVMH, which owns pricier aspirational brands like Louis Vuitton, Fendi, and Dior. As luxury spending cools, brands are revamping to stay in vogue. Lately, Coach has shed its signature leather monogrammed bags for quirkier prints with sustainable materials (see: [Coachtopia](. Coach has also launched viral TikTok and IG campaigns. It’s working: In May, nearly half of Tapestry's 1.2M new North American customers were Zillennials. Coach is the #1 handbag for teens for the second year in a row, and Capri’s Michael Kors has been in the top three for years. THE TAKEAWAY The best tapestries have many strands… to cover more ground. Michael Kors can join Coach in drawing younger, more diverse shoppers, while Versace and Jimmy Choo can help Capri attract wealthier international customers. Fashion consolidation is trending: last month Gucci parent Kering added another label to its tote by taking a 30% stake in Valentino. Estée Lauder bought fashion house Tom Ford last year for $3B. FEDUP The Crypto Catch-Up… 🪙 Coins… Bitstamp said it’ll [suspend]( trading of several altcoins — including matic and solana — for its US customers. The exchange pointed a finger at regulatory uncertainty (see: SEC’s crypto crackdown). Speaking of… ⚖️ Judgy… The SEC said it would [appeal]( last month’s ruling that Ripple’s XRP token was not a security when sold to the public. The decision was seen as a blow to the SEC’s position that nearly every crypto is a security (aka: under the regulator’s purview). 📜 Policy… The Fed said it would more closely [monitor]( banks’ crypto activities, including custody and stablecoin programs. Five months after the collapse of the crypto-friendly Silvergate bank, regulators continue to warn about crypto-related risks. What else we're Snackin' - [Injection]( Novo Nordisk said it’ll acquire obesity-drug maker Inversago Pharma for $1B. Novo Nordisk’s Ozempic and Wegovy (and Eli Lilly’s diabetes med, Mounjaro) have seen soaring sales as people use them to lose weight. - [Unvest]( Biden ordered a ban on new investments in key emerging tech in China, including chips and AI, piling on efforts to “de-risk” its relationship with the second-largest economy. - [PopUp]( Lyft plans to start showing ads in its app (images first, videos later), while adding more ad screens in cars. Uber’s been showing in-app ads since October and is targeting $1B in annual ad revenue by next year. - [UnMooch]( Disney is following Netflix with plans to fight password-mooching and raise Disney+ and Hulu prices by up to 27%. Netflix gained nearly 6M quarterly subs following its account crackdown. - [Add2Cart]( Alibaba’s revenue jumped 14%, led by its core shopping biz at Tmall and Taobao. The “Amazon of China”’s affordable goods are appealing to Chinese consumers, who’ve cut back on spending. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day The average monthly rent in Manhattan has hit $5.6K [Read more]( Friday - Producer Price Index - Earnings expected from Spectrum Brands Authors of this Snacks own shares of: Disney, GM, Tesla, and Uber Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( • [Our Editorial Principles]( • [Contact Us](mailto:hellosnacks@sherwoodmedia.com) • [Privacy Policy]( • [Advertise with us](mailto:advertising@sherwoodmedia.com) [Unsubscribe](