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TOGETHER WITH
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Good morning. Today,
the UAE's Hope spacecraft will arrive at Mars after a seven-month
journey spanning more than 290 million miles. That's actually insanely
fast. Consider how long it would take to get to Mars using these other
methods of transportation:
- 1,191 years by getting a piggyback ride on Usain Bolt going his top sprinting speed.
- 441 years by driving 75 mph on a highway.
- 61 years by commercial jet (not counting the layover in Charlotte).
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NASDAQ
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13,987.64
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+ 0.95%
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S&P
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3,915.59
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+ 0.74%
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DOW
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31,385.76
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+ 0.76%
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GOLD
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1,831.40
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+ 1.01%
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10-YR
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1.167%
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- 0.20 bps
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OIL
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58.08
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+ 2.16%
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*As of market close.
Here's what these numbers mean.
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Government: Former President Trump's second impeachment trial
kicks off today over his alleged role inciting the violent mob that
attacked the Capitol just over a month ago. Two-thirds of the Senate
(which is currently split 50-50 among Dems and Republicans) is required
to convict Trump.
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Markets: Six straight days. That's the Dow and S&P's current winning streak, their longest since August. Only two more to catch the 1959–1966 Boston Celtics.
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Francis Scialabba
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While Elon
Musk has moved crypto markets before with a single meme, yesterday he
sent the price of bitcoin soaring the old-fashioned way: buying a
truckload of it.
According to an SEC filing Monday, Tesla purchased $1.5 billion worth of bitcoin
using its cash reserves. Tesla also announced it would accept payment
for its products in bitcoin on a limited basis, becoming the first major
automaker in the world to do so.
- Musk's
moves were the mentos to the cryptocurrency's Coca-Cola. The price of a
single bitcoin gained as much as 15% on the day and briefly surpassed
its record high of over $44,000.
Why did Tesla hop on the bitcoin train?
Despite being a company that has struggled with profitability, Tesla actually has over $19 billion
in cash and cash equivalents sitting around. In its SEC filing, the
company stated the move was to "further diversify and maximize returns
on our cash." In other words, it was looking to put some of that $19
billion to good use and Elon felt that sinking 8% of it into bitcoin was
the best way to do that.
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Tesla isn't the first: Jack Dorsey's
fintech Square made a $50 million investment in bitcoin last October,
and business analytics platform Microstrategy has accumulated over $3
billion worth of bitcoin using its excess cash reserves.
Tesla is by
far the biggest fish in the corporate world to embrace bitcoin, but
Elon's move may not have been a huge surprise to his 46.2 million
Twitter followers. Musk added #bitcoin to his bio a few weeks ago,
tweets about crypto more than Tesla, and mentioned he was a supporter of bitcoin during a conversation on the social media platform Clubhouse last week.
Bottom line: Tesla's
stock (+1.7%) hardly budged yesterday, a signal that Tesla's stamp of
approval is a much bigger deal for crypto enthusiasts who have been
advocating for widespread adoption than it is for the automaker's
underlying business.
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Francis Scialabba
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People argue
about the minimum wage more than the ideal thermostat temperature.
Yesterday, the nonpartisan Congressional Budget Office (CBO) gave both sides some ammunition.
- Proponents
seized on CBO data that phasing in a $15 federal minimum wage by 2025
would lift 900,000 people out of poverty and boost pay for up to 27
million workers.
- What critics heard: Doubling the minimum wage could cost 1.4 million jobs and add $54 billion to the deficit.
The CBO ran a similar study in 2019, predicting increased pay for 27 million, 1.3 million lost jobs, and 1.3 million lifted from poverty.
Why are they double checking their work?
Against the
backdrop of a pandemic-stricken economy, President Biden made $15/hour a
key component of his proposed stimulus. He'll have trouble winning over
Republicans and moderate Democrats, but some members of his party think
they can use other means to get it passed.
Zoom out: While some states have voluntarily increased their wage floor, the federal minimum hasn't budged from $7.25 in a dozen years, even as purchasing power has fallen.
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Francis Scialabba
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The Flying Dutchman just got demoted as KLM's signature cocktail. The Amsterdam-based airline said it successfully completed the first passenger flight powered by a synthetic fuel mixture last month.
Why it matters: Jet
fuel accounts for an estimated 5% of human-induced global warming. With
demand for fuel expected to more than double by 2050, aircraft manufacturers and airlines are working on more efficient planes and sustainable fuels.
- In 2019, EasyJet became the first major carrier to operate net-zero flights by purchasing emissions offsets.
- United Airlines is investing big in carbon capture.
KLM was the
first to use plant-derived biofuels for commercial service in 2011—but
while biofuels have since become more common, synthetic alternatives are
taking longer
to develop. Until the aviation industry turns futuristic dreams of
electric- and hydrogen-powered planes into a commercial reality, those
fuel alternatives are one of the most promising paths to tackle aviation
emissions.
Bottom line: KLM's
sustainably produced kerosene substitute was still mixed with regular
fuel, but it's a symbolic step for a gas-guzzling industry looking to
ease its climate impact.
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Listen, the stock market can be great. Sometimes it’s stable, everything’s in the green, and you put “investing genius” in all your dating profiles.
But the
stock market can also be unpredictable. And when you wake up to see all
your highly considered positions in the red, you should give yourself
some peace of mind by diversifying your portfolio.
Here’s where Fundrise comes in.
They make it easy to invest in private market real estate, an alternative to the stock market, but one that used to only be accessible to the ultra-wealthy. Fundrise has changed that. Now, with just a $500 minimum investment, you can access real estate’s historically strong, consistent, and reliable returns.
No need to feel all that stock market stress, reader. Start diversifying with Fundrise today.
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Now that
we've got your attention, let's talk about the bond market, where things
are heating up: Long-term US bond yields hit their highest level in a
year yesterday.
Big picture: You score bond yields a little like golf—when prices go down, yields go up. And rising yields mean that investors are optimistic that more stimulus + vaccines will lead to economic growth.
- But with economic growth comes the potential for more inflation
(an increase in prices). Some economists, including former Treasury
Secretary Larry Summers, warn we're not taking the threat of inflation
seriously enough.
The current
Treasury Secretary Janet Yellen might have been flagged for a 15-yard
taunting penalty with her response: "I've spent many years studying
inflation and worrying about inflation. And I can tell you we have the
tools to deal with that risk if it materializes."
Bottom line: Stocks sell tickets, but bonds win championships. Investors always look to the bond market, in particular the yield curve, for clues on future economic growth. They like what they see: Goldman Sachs just raised its Q2 GDP forecast to 11% from 10%.
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SoftBank
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While some
couples have struggled to make it through the pandemic, Japanese tech
conglomerate SoftBank's steamy relationship with amateurish slide decks
is strong as ever.
Slides from
its investor presentation on Monday show that CEO Masayoshi Son's latest
goal is to turn his company into a goose that lays golden eggs (i.e., makes smart investments in late-stage private companies).
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It's actually been a solid strategy: SoftBank's Vision Fund brought in $25 billion
in realized and paper gains last quarter, powered by a $5.2 billion
gain in its Uber stake and an $11.2 billion return on DoorDash.
Zoom out:
So far, the Vision Fund has returned just $15 billion of the $190
billion that SoftBank expects it to generate over its 12-year term. But
Son isn't worried—the latest presentation outlines how the Vision Fund
is entering the "harvest phase," when more golden eggs will
materialize.
+ While we're here: Let's check out some other legendary slides from previous SoftBank presentations.
1. The "valley of coronavirus"
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SoftBank
2. WeWork's Magical Turnaround
SoftBank
3. A little lost here tbh
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Reddit raised $250 million at a $6 billion valuation. That's double its valuation in February 2019.
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Update from yesterday's newsletter: Clubhouse is now blocked in China.
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Women's
labor force participation rate in the US hit a 33-year low in January.
Women accounted for almost 80% of workers age 20 and over who left the
workforce last month.
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Facebook is getting tougher on Covid-19 vaccine misinformation.
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DoorDash bought the startup Chowbotics, which is known for its salad-making robot, Sally.
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Mark Cuban is cofounding Fireside, a podcast app that encourages live conversation, according to the Verge.
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DreamKnitTM = Your Dream Fit. Vuori makes their Ponto Performance Shorts out of 4-way stretch, moisture-wicking, and quick-drying DreamKnitTM fabric. When you sport these dream duds, you’ll look good and feel comfy—training or chilling. Get 20% off your first Vuori purchase.*
It’s time your money got a job. Stash is the personal finance app that simplifies investing so you can put your money to work. Readers get a $5 bonus when they make their first $5 deposit. Start investing with Stash today.*
Not for everyone: Six Flags Qiddiya in Saudi Arabia is developing a ridiculously fast roller coaster—and by ridiculously fast, we mean 155 mph.
Tech Tip Tuesday: iPhone users, prepare to feel uninformed...this TikTok explains what the Full Page button does when you take a screenshot (the account is full of other cool hacks).
*This is sponsored advertising content
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Here's the (awesome) logo of a company called Snyk. But what does it do?
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Enjoying the Brew? Consider sharing it with a friend.
When
you do, we don’t just give you a pat on the back and say, “Well done
old sport.” You earn rewards like our classic coffee mug or T-shirt.
Hit the button below to start sharing the Brew.
Click to ShareOr copy & paste your referral link to others:
morningbrew.com/daily/r/?kid=a17a7110
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Schumer, McConnell Reach Agreement on Trump Impeachment Trial – Here Are the Details
Breaking News: Donald and Melania Say It's a 'Must Read'!
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Politicians And Sponsors Shocked
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Breaking News: Donald and Melania Break Down On Exclusive Interview Today
No One Expected This!
{Continue Reading}
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| ADVERTISEMENT |
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Breaking News: Michelle Finally Snaps - Melania Sent Her Over The 'Edge'
Politicians And Sponsors Shocked
{Continue Reading}
Breaking News: Michelle Finally Snaps - Melania Sent Her Over The 'Edge'
Politicians And Sponsors Shocked
{Continue Reading}
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| Fox Nation Watch all episodes - Exclusive on Fox Nation. Legendary sports broadcaster Jim Gray, who's career spans over four decades, sits down with athletes ... |
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