BREW WITH HEADLINES

 

September 12, 2020 View Online | Sign Up TOGETHER WITH Good morning. The new English Premier League season begins this morning, and today's newsletter authors, Toby and Neal, have a little bet going about who's team will finish higher in the standings this year. Toby is a Manchester United supporter, while Neal roots for Liverpool (the defending champs). What do you think the wager should be?  MARKETS NASDAQ 10,853.55 - 0.60% S&P 3,340.90 + 0.05% DJIA 27,665.18 + 0.47% GOLD 1,949.90 - 0.73% 10-YR 0.673% - 0.60 bps OIL 37.52 + 0.59% *As of market close Stocks: The high-flying Nasdaq had its worst week since March, and the S&P and Dow didn’t do so hot either. Nation: Historic wildfires continue to rip across the Western U.S. More than 10% of Oregon’s population has been ordered to evacuate their homes, and Portland and Seattle now have the worst air quality in the world. California Gov. Gavin Newsom called it a "climate damn emergency." CORPORATE GOVERNANCE Mining Giant Caves to Shareholders

Aaron Bunch/Getty Images Jean-Sébastien Jacques, the CEO of mining giant Rio Tinto, is stepping down in what could be a landmark moment for shareholder activism.  First, the backstory In May, Rio Tinto blew up ancient rock shelters in Western Australia sacred to local Aboriginal groups. How ancient? These caves contained artifacts, such as a kangaroo bone sharpened into a tool, showing humans lived there more than 46,000 years ago.  Rio Tinto destroyed the caves to get to the iron ore that lies beneath. The commodity is both a mega-export of that region of Australia, known as the Pilbara, and a major source of income for Rio Tinto.  90% of Rio’s earnings comes from its flagship iron ore operation located in the Pilbara, writes the Financial Times.  And about 60% of global iron ore traded by sea comes from the region.  Rio got permission from the Australian government to blast the site, but later apologized for its actions and docked bonuses of a few senior execs.  That didn’t satisfy shareholders. Australian pension funds, other Rio Tinto investors, and activists said that response was a measly attempt at reconciliation. In a statement yesterday, Rio Chairman Simon Thompson said he listened to shareholders’ concerns about the lack of individual accountability, and that Jacques and two other Rio leaders would be packing up their things in the next few months. The big picture Investors are increasingly scrutinizing companies not only for their profits, but for their attention to environmental, social, and governance (ESG) issues. Recent Black Lives Matter protests have only amplified calls for corporations to boost their focus on social justice problems. ESG is especially top of mind for mining companies, which often operate in lands owned by indigenous groups. So will Rio bowing to angry shareholders move the needle? Experts say it is an important moment for ESG shareholder activism, but doesn’t necessarily change the longstanding power imbalance between global mining firms and local indigenous communities.

ECONOMY An Unlikely Driver of U.S. Inflation

Francis Scialabba As the economy tries to claw back from the pandemic, consumers have shown a surprisingly strong appetite for cassette players. Used cars are giving a big lift to consumer prices. What’s that mean? The core Consumer Price Index, which tracks price trends sans volatile food and fuel costs, rose 0.4% last month after a 0.6% bump in July that was the biggest increase in nearly 30 years.  The huge bump in the price of used cars and trucks accounted for a whopping 40% of last month's gain.    New car sales, especially in China, have rebounded since March lows, but used cars have been the star of the roadshow. What's driving the trend? With tens of millions of Americans unemployed, people are opting for used cars over new.  And Covid-related supply chain disruptions have made it tough for dealers to get new cars on the lot.  Zoom out: Considering the Fed just switched up its policy to accommodate more inflation, this bump in consumer prices isn’t going to do anything to budge chair Jerome Powell's decision to keep interest rates near-zero for a long time.

MOVIES Box Office Update

Warner Bros. There’s a lot going on in the movies despite nothing going on in the movies. Wonder Woman 1984: delayed to Christmas. Warner Bros. said yesterday it’s pushing back the release of the sequel by more than two months, because it spent a lot of money making the movie and it would like to make some of that back.  With about 35% of theaters still shuttered in the U.S., Warner Bros. is betting that a few more months of rising consumer confidence will get butts in the seats.  Tenet: True to form, Christopher Nolan’s latest flick is really hard to interpret...from a financial standpoint. It grossed about $20 million in North America last weekend, which would’ve been a big flop in normal times, but these aren’t—you get it. Its performance this weekend will be closely watched. Mulan: The live-action remake was supposed to be a victory lap for Disney, but it’s turned into a major bungle. The film's credits thanked agencies with links to human rights abuses in China’s Xinjiang region, provoking criticism and calls for a boycott. Yesterday, Mulan had a disappointing opening in China.

SPONSORED BY THE MOTLEY FOOL Fact: There Is a lot of Fiction Out There When it comes to investing, there’s a heck of a lot of noise out there. Screaming pundits in pinstripes, unsolicited chain emails from uncles, articles with “foolproof” in the title. So how can you know what’s fact, and what is definitely, 100%, holy cow is that some fiction? That’s where we come in. We’ve put together a handy starter article with the big brains over at The Motley Fool that aims to cut through the crud and give you straight up answers about investing. So whether it’s your first foray into the market, or you’ve been doing it for years, we think this is a must-read (yes, we’re bragging).  Give it a read and get to the truth.

AUTO Nikola’s Shareholders Need a Neck Massage

Francis Scialabba Nikola's week was a lot like Lost—started out real hot then fizzled spectacularly.  On Tuesday, the electric truck maker announced a $2 billion investment from GM to help manufacture its new models. Shares jumped more than 40%. Then, on Thursday, short-seller Hindenburg Research published a report calling Nikola an “intricate fraud.” Hindenburg accused Nikola’s founder, Trevor Milton, of nepotism and overstating the level of functionality of Nikola’s unreleased trucks. Nikola called the report a “hit job,” while Milton promised a detailed rebuttal of the report’s claims. Shares fell 8%. But no rebuttal emerged. Milton tweeted yesterday that, on the advice of outside counsel, he would not “comment further now other than saying that we have involved SEC.” The hits kept coming, though. Citron Research congratulated Hindenburg for “exposing” Nikola and offered to cover half its legal expenses. Shares fell another 14%. Bottom line: Nikola has symbolized the rise of special purpose acquisition companies (SPACs) as a popular way to go public. If the Hindenburg report holds up, it “could cast a pall over SPAC deals more broadly,” Axios writes.

SPORTS You Call That a Saddle?

MARCO BERTORELLO/AFP via Getty Images The Tour De France, cycling’s premier race, has been underway for two weeks. The French government has strongly urged the typically rowdy fans to stay home, though nothing was specifically mentioned about watching on a horse.  Staging a three week, multi-city event in a pandemic has been as tough as it sounds. But cycling’s culture of cleanliness has helped the cause: “We were all germaphobes before,” American rider Tejay van Garderen told the WSJ. “In the Covid era, it’s like that on steroids.” Bottom line: Despite Tejay’s unfortunate choice of words, the race has gone smoothly so far. As of Tuesday, none of the 166 riders had tested positive for the coronavirus.

WHAT ELSE IS BREWING VMware and Twitter are cutting pay for remote employees who move out of the Bay Area, per Bloomberg. The UK signed a trade deal with Japan, its first major trade pact since Brexiting. Florida will allow bars to reopen on Monday at 50% capacity. Dr. Fauci called new U.S. coronavirus data "disturbing." The Chinese government would rather TikTok shut down in the U.S. than be sold to an American company, Reuters says.

BREW'S BETS Crypto can be confusing. So we’ve put together a virtual roundtable, “The What, Why (and WTF?) of Crypto Investing,” presented by Grayscale Investments and hosted by our very own Kinsey Grant. The event is September 17th, so sign up to learn about crypto investing from the experts.* 0% APR. 14 Months. You’ve already clicked, right? This cash back card can help you save up to $1,148 with no annual fee. It only takes two minutes to apply. So, like, apply.* Weekend conversation starters: What is your favorite island in the ocean of books?  Thoughts on Scottie Pippen’s house? Yay or nay on Spotify karaoke? *This is sponsored advertising content

SATURDAY HEADLINES Holiday szn is fast approaching, but like everything else, celebrations are going to look a lot different this year. Three of these headlines signal real changes happening to holidays, but one is made of tinsel. Can you spot the fake?  "Old Navy to ban all images of Santa without a mask from stores" "Mountain Dew is reportedly coming out with a gingerbread flavor for the holidays" "L.A. County walks back Halloween ban, says trick-or-treating 'not recommended'" "Peeps not producing Halloween, Christmas Peeps due to pandemic"

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SATURDAY HEADLINE ANSWERS

I'm sure we'll see plenty of masked Santas, but in Old Navy's case, we made that story up. 

SATURDAY 9.12.2020
BREAKING NEWS

Media Caught Using Dirty Editing Tactics To ‘Protect’ Biden

by National Insiders Retire Rich From These COVID 'Crisis' Stocks

by OANN President Trump Makes Stunning Revelation About Biden’s Plan For America

by Western Journal 
[WATCH]The Twenty Second Video That Completely Shreds Democrats’ Hit Piece On Trump

 

 

ALSO BORN ON THIS DAY

1967 Louis C.K. American comedian, writer, director, and producer 1980 Yao Ming Chinese basketball player 1981 Jennifer Hudson American actress and singer 1913 Jesse Owens American athlete 1880 H.L. Mencken American writer 1494 Francis I king of France

September 12

FEATURED BIOGRAPHY Jesse Owens READ MORE   FEATURED EVENT 1764 Death of French composer Rameau READ MORE

MORE EVENTS ON THIS DAY 2014: Politician Ian Paisley—who was a militant Protestant leader in the factional conflict that divided Northern Ireland from the 1960s until the early 21st century—died in Belfast. 2003: Country music legend Johnny Cash—whose craggy baritone, simple poetics, hard-won integrity, and advocacy of the dispossessed transformed him into an American icon—died in Nashville. [Test your knowledge of musicians.] 1980: The senior command of the Turkish army, led by General Kenan Evren, carried out a bloodless coup in their homeland. [Take our Turkish and Ottoman history quiz.] 1977: South African activist Steve Biko died from injuries suffered while in police custody; he subsequently became an international martyr for South African Black nationalism. [Sort fact from fiction in our quiz about South Africa.] 1974: Emperor Haile Selassie I of Ethiopia was deposed by the Derg, a committee of revolutionary soldiers. [Test your knowledge of African leaders.] 1959: The TV series Bonanza premiered on NBC, and it became one of the longest-running westerns in broadcast history. [Sort fact from fiction in our pop culture quiz.] SEE ALL EVENTS ON THIS DAY

Columnists Democrats and Their Media Allies Want You to Forget How They Downplayed Wuhan Coronavirus Katie Pavlich 'Cuties': Obama Silence = Violence Larry O'Connor Here's Why I Believe Trump Will Win David Limbaugh Publishers Release Flood of New Books to Generate a Blue Wave Even as Trump Saves Their Industry Brad Slager Public Policy Without Ethics John C. Goodman September 11th: We Said We’d Never Forget, But We Did Erin Elmore, Esq. Questions the Media Should Ask Joe Biden David Harsanyi Jeffrey Goldberg Shudders That Trump’s Actions 'Create a Sense of Horror'—But He Praised Fidel Castro as 'The Great Man' Humberto Fontova The Perils of Ideology Kathryn Lopez ADVERTISEMENT Trump Administration’s Pro-life Mexico City Policy Jeanne Mancini In 2020, Preborn Lives Are on the Line: We Have a Duty To Vote Accordingly Chelsey Youman A Very Stable Foreign Policy Genius Jeff Davidson Al Sharpton is Right about Defunding Police Departments Hugo Dante Centers for Disease Control and Prevention: Reopen America’s Schools Chris Talgo Nike and Other Companies Profit From Slave Labor. As Pastors, We Say 'Enough!' Bishop Aubrey Shines The Suicide of Congress George Liebmann Say Goodbye to Costco’s Kirkland Brands if Rep. Cicilline Gets His Way Carl Szabo You Can Make This Stuff Up but Journalists Do Loyd Pettegrew How The Left Learned to Love The Guillotine Rainer Zitelmann The Depravity of a Culture That Celebrates the Sexploitation of Young Girls Michael Brown Wisconsin Supreme Court Blocks Order Barring Schools From Opening M.D. Kittle Sharing a 9/11 Photo Got My Social Media Accounts Disabled Steve Sherman Video Gov. Evers: Saying Abortionists 'Execute Babies' Is 'Blasphemy' Trump blasts Schiff as 'political hack' Pelosi's condescension offers some laughs Pelosi open to border infrastructure INVESTING Benghazi for Dummies Why The Founding Fathers Despised Democracy Beware of Panic Attacks - Mark Skousen The OECD Urges Big Energy Tax On American Families How To Apply Reciprocity To Race-Based Accusations Teeka Tiwari - Articles & Political Commentary

TIpsheet Chinese Scientist: I Have Proof Wuhan Coronavirus Was Made in a Lab Matt Vespa Are There Durham Indictments Coming? Fox News Reporter's DOJ Source Told Him to Set His Alarm Clock Matt Vespa Sorry Dems: Appeals Court Won't Let Felons Vote in Florida Until They Repay Their Debts to Society Bronson Stocking Trump's Nominations for the Nobel Peace Prize Are Too Much for The Atlantic Bronson Stocking Photo Journal: AG Barr Details the Results of a Major Meth Takedown Operation in Arizona Katie Pavlich Everyone Who Isn't Nancy Pelosi Will Soon be Allowed to Get a Haircut in San Francisco Bronson Stocking CBP Holds Annual 9/11 Memorial Ceremony at Juarez-Lincoln Bridge Bronson Stocking Officer Killed During Operation Legend Is Honored in Cleveland Katie Pavlich President Trump Awards Medal of Honor to Army Vet Who Freed Hostages Reagan McCarthy WSJ Editorial Board Torches Flawed Study That Blamed Sturgis Motorcycle Rally for Being 'Super-Spreader' Event Matt Vespa ADVERTISEMENT Political Cartoons Bearing Arms PA Town Nixes GOP Rally With McCloskeys | Cam Edwards GOA's Erich Pratt On 5 Key Races For Gun Owners | Cam Edwards Dear Abby's Gun Advice May Land Person In Jail | Tom Knighton Police Group's Billboard Warns Against Entering Austin | Tom Knighton VIP Gold Chat: Ed Morrissey, Cam Edwards - LIVE NOW | Cam Edwards