Friday, February 5, 2021

BREW WITH HEADLINES

 Daily Brew

TOGETHER WITH

caliber

Good morning. Kiss/marry/kill Super Bowl foods edition: chicken wings, guac, pizza.

Our picks...

  • Kill guac: Be honest with yourself—it's often underwhelming
  • Marry pizza: Even when it's bad it's good
  • Kiss chicken wings: Sometimes spicy, but always saucy

MARKETS


NASDAQ

13,777.74

+ 1.23%

S&P

3,871.74

+ 1.09%

DOW

31,055.86

+ 1.08%

GOLD

1,794.10

- 2.23%

10-YR

1.148%

+ 0.90 bps

OIL

56.46

+ 1.38%

*As of market close. Here's what these numbers mean.

  • Economy: US unemployment claims fell for the third week running to 779,000, the lowest point in two months...but still very elevated.
  • Covid: Johnson & Johnson asked the FDA to approve its single-dose vaccine, meaning we could have a third vaccine at our disposal in just a few weeks. The US administered 1.7 million doses yesterday.
  • Markets: Who needs meme stocks when you've got the S&P 500? The index notched a record closing high after four straight days of gains this week. 

Francis Scialabba

If Hindenburg Research mentions you in a report, you're probably not going to want to Google yourself after. 

Yesterday, the short seller claimed that healthcare software maker Clover Health has not disclosed to investors that it's under investigation by the DOJ over its business model and software product. 

  • News outlets were not able to confirm Hindenburg's allegations. Still, Clover Health stock fell over 12% on the day. 

There are two interesting angles to this story

1. The SPAC angle. Clover recently went public by merging with a special-purpose acquisition company (SPAC) backed by Chamath Palihapitiya, the second-most famous billionaire on Twitter. Chamath has been at the forefront of the SPAC boom, helping take companies, including Virgin Galactic, public via this previously unconventional method.

  • Hindenburg alleges that Chamath, Clover's "Wall Street celebrity promoter," misled investors in the run-up to going public.
  • Just this week, Chamath acknowledged SPACs weren't all fun and games: "SPACs may be easy to raise...but they are hard to execute and success isn't guaranteed. Good luck to all the players," he tweeted.

2. The GameStop angle. Unlike its other targets, such as the EV startup Nikola, Hindenburg doesn't have a short position in Clover, meaning it doesn't stand to gain financially from a fall in Clover's share price. 

So why did it release the report? It comes back to the meme stock frenzy of the last few weeks. One of the main reasons why the Reddit army tried to push up GameStop stock was to cause hedge funds that had shorted the retailer to lose money. 

Hindenburg published this report as a defense of short sellers, arguing they play a critical role in exposing fraud and protecting investors against corporate shenanigans. As evidence, Hindenburg alludes to some major short-seller takedowns of the past, including Enron, Lehman Brothers, and Luckin Coffee. 

Zoom out: With short sellers, retail traders, and market manipulation under the microscope, Treasury Secretary Janet Yellen convened the most powerful financial regulators in the land yesterday—including the heads of the SEC and the Fed—to discuss whether action is needed to protect the stock market's integrity.

        

Mike Coppola/Getty Images

Yesterday, CNN President Jeff Zucker told staffers he plans to step down at the end of the year. 

Zucker is as much a cable news mainstay as Rachel Maddow's wayfarers. His career included various stints in NBC's news and entertainment divisions (where he oversaw the disastrous Conan/Leno swap). In 2013, he took a cab across Midtown to CNN. 

  • Zucker was laser-focused on ratings...and this announcement comes as CNN's reached all-time highs. 
  • But CNN's future is uncertain, as parent company AT&T confronts a growing horde of cable-cutting consumers. 

Merck CEO Ken Frazier will jump ship sooner

He said on an earnings call yesterday that he plans to retire on June 30, when current CFO Rob Davis will take over. 

Roll the tape: Frazier became CEO in 2011 after nearly two decades of working his way up the pharmaceutical company's corporate ladder. Frazier's time at Merck was marked by the growing success of its crown jewel, Keytruda, which is now the world's No. 1 cancer immunotherapy drug

  • Frazier spoke out against former President Trump in 2017, when Trump failed to condemn the white supremacists who marched in Charlottesville, VA, that year. 

Zoom out: Frazier is currently one of just four Black CEOs leading a Fortune 500 company. 

        

Getty Images

Prominent consulting shop McKinsey & Co. has agreed to pay DC and most US states and territories $573 million for its role in the opioid epidemic—the first such nationwide settlement. 

The allegations: In 2013, when the impacts of opioids and addiction were already well-documented, the firm advised OxyContin manufacturer Purdue Pharma on how to "supercharge" sales by $100 million, including by targeting doctors who might have overprescribed opioids and by switching patients to more powerful doses. 

  • Under the settlement, McKinsey admits no wrongdoing. 

Most of the settlement money will head to treatment and rehab programs in areas hit hard by the epidemic, which has killed 400,000+ Americans. $15 million will be used to reimburse the National Association of Attorneys General for investigation costs. 

  • The payout is larger than revenues the firm brought in advising opioid clients (a practice it stopped in 2019).  

Zoom out: A wave of litigation that started in 2017 against companies linked to the opioid crisis is seeing results. Some pharma companies have reached settlements with individual states; Purdue Pharma agreed to pay the DOJ $8.3 billion; and Johnson & Johnson and three drug distributors are in negotiations for another multistate settlement worth $26 billion.

        

SPONSORED BY CALIBER

Investing Money in a Company That Makes People Money Sounds Pretty Money

caliber

We’ll give you a second to recover from the immense strain that headline put on your brain.

Okay, back to some hard-hitting intellectualism. Caliber is a company that is very good at making people money, and you can invest in Caliber until February 26.

Meaning you can invest your money in a money-growing company. No brainer, we know.

Caliber gives normal individuals access to sophisticated, private real estate investments traditionally reserved for super wealthy investors or institutions. Turns out that’s a lucrative idea. They have $400 million in assets under management and $550 million in assets under development.

That is—take out a pen and paper so you can remember this—sooooo much money.

Take advantage of your chance to become a part owner of Caliber by investing in their Series B round today.

Giphy

If Steve Martin's character in the 2003 comedy a) wasn't fictional and b) had 12 kids in 2021, he'd be in for a major windfall under a proposal raised by Sen. Mitt Romney yesterday. 

  • Romney proposed an amendment to Democrats' $1.9 trillion stimulus package that would give Americans $3,000 per child ages 6–17 per year and $4,200 per child under the age of 6.

Zoom out: Momentum is growing for expanding child benefits—Democrats' current stimulus draft offers the same payment structure, but only $3,600 per child under age 6. Both Romney and fellow Utah Sen. Mike Lee, also a Republican, have expressed concern about high levels of child poverty in the US, indicating potential bipartisan action on the issue. 

A speedbump ahead: Romney would pay for the expanded child benefits by scrapping federal tax credits and the welfare program Temporary Assistance for Needy Families. Many Democrats would balk at cutting those programs. 

        

Chobani

Culture creator Chobani is considering an IPO later this year, the WSJ reports. If the company hits its valuation target of $7–$10 billion, it'll be an exciting day for the 2,000 employees its CEO promised a 10% stake in 2016.

Chobani was founded in 2007 and has made Greek yogurt a staple on American grocery shelves. As yogurt sales slowed in recent years, Chobani expanded into plant-based milk and yogurt, coffee creamers, and cold brew. It brings in about $2 billion in revenue annually.

Pop quiz: What does the word "chobani" mean in Turkish and Greek? Answer at the bottom of this newsletter. 

        

QUIZ

Six More Weeks of Winter Quizzes

Typeform quiz

Francis Scialabba

The feeling of getting a 5/5 on the Brew's Weekly News Quiz has been compared to tetris-ing three more bowls into a seemingly full dishwasher.

It's that satisfying. Ace the quiz.

WHAT ELSE IS BREWING

  • 23andMe SPAC'd with Richard Branson's VG Acquisition Corp in a deal that values the consumer genetics company at $3.5 billion.
  • Peloton's sales grew an astonishing 128% last quarter. But because it's struggling to deliver products to customers on time, it's pouring money into supply chain capabilities...meaning less meaty profits.
  • Vale, the Brazilian mining company, will pay $7 billion to the families and communities of the 270 people killed in a 2019 mining disaster. 
  • Voting tech company Smartmatic filed a $2.7 billion lawsuit against Fox News and attorneys Rudy Giuliani and Sidney Powell over an alleged "disinformation campaign" to convince the public the election was stolen from former President Trump.
  • Ford is slowing production of its F-150 because of the—everyone together now—global chip shortage. In other news, it's pledging to spend $29 billion on electric and autonomous vehicles through 2025.

SPONSORED BY PUBLIC GOODS

Public Goods

Your fridge needs a restock, the planet needs less pollution. Public Goods is the answer—get affordable, sustainable, and healthy household products all in one place. Take $15 off your first purchase with code MORNINGBREW

BREW'S BETS

Super Bowl content: We're practically overflowing with it. Check out our recipe guide, a game you can play virtually with friends, and two deep dive articles on the NFL.

More Super Bowl content? If you like spoilers, here are all of the SB ads that have been released so far.

Follow Friday: Get excited, visual learners, because this section is all graph, chart, and map accounts today. Check out 1) I [bleeping] Love Maps 2) Simon Kuestenmacher 3) Matt Shirley 4) Google Trends 5) r/dataisbeautiful 6) chartcrew and 7) Tokboard

Thank you: for what? For taking this quick survey to help us improve our brand partnerships. 

GAMES

Friday Puzzle

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ANSWER

Friday puzzle: 19

Chobani pop quiz: The company's name means "shepherd" (its founder and CEO, Hamdi Ulukaya, is a Turkish immigrant).


FOX
Daily update February 5, 2021


NEWS





Fox News is at a crossroads and other details in the latest cable news ratings battle
Here's what that means. Fox News' Tucker Carlson, Laura Ingraham and Sean Hannity. (AP Photo).
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Trump resigns from Screen Actors Guild: 'I no longer wish to be associated with your union'
Fox News exclusively obtained the letter sent to SAG President Gabrielle Carteris, slamming the union, the media and news organizations. "I write to ...
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Sacramento Kings star De'Aaron Fox on NBA plans for All-Star Game: 'I think it's stupid'
Fox also was asked Wednesday night whether he would choose to play in the game if he were selected to the Western Conference roster. "You know ...
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Fox lurches further to the right to win back 'hard-edge' Trump supporters
Until January, that is, when the network dropped to a once unthinkable third place in the ratings. The response from Fox News has not been a period of ...
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Voting company Smartmatic files $2.7 billion libel suit against Fox News, Fox hosts, Giuliani and ...
MIAMI (AP) — Voting company Smartmatic files $2.7 billion libel suit against Fox News, Fox hosts, Giuliani and Powell. Author Profile Photo ...
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Trump will not testify in 'unconstitutional' Senate impeachment trial
"The president will not testify in an unconstitutional proceeding," Trump senior adviser Jason Miller told Fox News Thursday. The former president's ...
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News Brief: War In Yemen, COVID-19 Numbers, Fox News Lawsuit
Researchers found a way to estimate how many people are currently contagious with COVID-19. And, Fox News has been sued over false election ...
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Fox blasts 'stupid' idea for NBA to have All-Star Game
It's hard to disagree with Fox here. While the event is going to help raise money for Historically Black Colleges and Universities, the NBA could easily ...
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WEB





Fox 11 Los Angeles - LAPD in pursuit in Woodland Hills area | Facebook
BREAKING: Standoff underway as a driver gets stuck near the fence after leading authorities on a chase. The driver is wanted for assault with a deadly ...
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Fox Nation
Watch all episodes - Exclusive on Fox Nation. Award-winning journalist Lara Logan turns her fearless investigative eye to America's political, social ...
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Jason Jones on Twitter: "De'Aaron Fox on the possibility of an All-Star Game this season: "I'm going ...
De'Aaron Fox on the possibility of an All-Star Game this season: "I'm going to be brutally honest, I think it's stupid. If we have to wear masks and do all ...
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Swift Fox Technician – University of Wyoming | Department of Wildlife and Fisheries Sciences Job ...
The Swift Fox Ecology Project is a collaborative effort between the University of Wyoming, Bureau of Land Management, and Wyoming Game and Fish ...
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The Daily Wire

Western Mediterranean during the Punic Wars
FEATURED EVENT
146 bce
Punic Wars ended

READ MORE
Hank Aaron
FEATURED BIOGRAPHY

Hank Aaron

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February 05

SEE ALL BIOS ON THIS DAY

ALSO BORN ON THIS DAY
1985
Cristiano Ronaldo
Portuguese football player
1992
Neymar
Brazilian football player
1964
Laura Linney
American actress
1914
William S. Burroughs
American writer
1943
Michael Mann
American director and screenwriter
1942
Roger Staubach
American football player

MORE EVENTS ON THIS DAY
Donald Trump
2020: After being impeached by the House of Representatives over his actions in the Ukraine scandal, Pres. Donald Trump was acquitted in the Senate. [Take our quiz about modern U.S. political scandals.]
Tom Brady
2017: In the first overtime game in Super Bowl history, Tom Brady and the New England Patriots overcame a 25-point deficit to defeat the Atlanta Falcons. [How much do you know about the Super Bowl?]
Colin Powell
2003: U.S. Secretary of State Colin Powell appeared before the United Nations Security Council to present evidence that Iraq possessed proscribed weapons of mass destruction and posed an immediate danger. [ Test your knowledge of weapons and warfare.]
Medgar Evers
1994: Byron De La Beckwith was convicted of killing civil rights leader Medgar Evers in 1963; Beckwith received a life sentence. [Read about key events in the civil rights movement.]
Cristiano Ronaldo
1985: Portuguese football (soccer) player Cristiano Ronaldo, one of the finest forwards of his generation, was born in Funchal, Portugal. [ Sort fact from fiction in our football (soccer) quiz.]
William S. Burroughs
1914: American writer William S. Burroughs—whose experimental novels evoke, in deliberately erratic prose, a nightmarish, sometimes wildly humorous world—was born. [Can you name the author in our quiz?]
SEE ALL EVENTS ON THIS DAY

We Got It! TGP to Release SMOKING GUN Video from TCF Center in Detroit!
AOC presses Twitter to censor hashtag comparing her to Jussie Smollett
Country Star Morgan Wallen Songs Take 7 of the Top 10 Spots On Apple Music After N-Word Controversy
“WHO CARES!” Trump Sends Hilarious Letter to Screen Actor’s Guild After They Threatened to Remove Him From Membership
Donald Trump Resigns from SAG-AFTRA, Slams ‘Dismal Record as a Union’

After the monumental failure of the Mueller Witch hunt, Nancy Pelosi is on the verge of a nervous breakdown! She is demanding democrats everywhere take action And do whatever it takes to ruin Trump in 2021, Including keeping this out of the hands of patriotic Americans!

Click here to see what's this is all about...

Rumor has it that if she is successful the price will go up 4x... That's why conservatives are stocking up on what may became a symbol of our current times

Columnists
Biden Chooses Union Extortion Over Science

Katie Pavlich


Zucker Leaves CNN But Trump Still Runs the Place

Larry O'Connor


The Left Is Calling the Capitol Riot An ‘Insurrection’ and a ‘Coup Attempt’ for a Reason

Scott Morefield


Rep. Herrell: Biden’s Energy Policies ‘Crippling’ States Like New Mexico

Gabriella Hoffman


AOC Goes Fact-Check-Free on Instagram

Tim Graham



The Limits of 'Free Speech'

Josh Hammer


Ideological Imperialism Is Leading to a Bad End

Pat Buchanan


'Mostly Peaceful' Violence and Dueling Double Standards

Michael Barone


Separating the Question of Election Fraud from Conspiracy Madness and the Insurrection

Michael Brown


ADVERTISEMENT
Critics Decry GASB Standards That Allow Governments to Hide Debt

Johnny Kampis


A Moment for Jim DeMint

Erick Erickson


Americans’ Problem? We’ve Always Been Free!

Kathy Barnette


Newsflash to the ACLU: Boys Are Different Than Girls

Michael Brown


Ignore Amazon's Self-Serving Position on the $15 Minimum Wage

Alfredo Ortiz


It’s the Coalition, Stupid

Jonathan Feldstein



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
More Government Spending = Weaker Economic Performance

How Do You Get Rid of A Bad Idea ($15 Minimum Wage Law)? With a Better Idea! - Mark Skousen

Trump Vs. Biden On The Minimum Wage

Amazon’s Shameful Effort To Sabotage Small Businesses

Even Amnesty International And Eurozone Leaders Are Worried About Big Tech Censorship


Tipsheet
In Bombshell Report, Carlson Alleges Bank of America Is 'Acting Like an Intelligence Agency'

Leah Barkoukis


What Jerry Nadler Thought Was 'Unnecessary' Before the Start of a Hearing

Matt Vespa


House Strips GOP Congresswoman of Committee Assignments Over Past Beliefs

Bronson Stocking


Latest CNN Slip-Up On Trump Impeachment Shows Obsession Over Former President Has Entered Creepy Territory

Matt Vespa


High School Football Player to Newsom: 'You Got What You Wanted'

Bronson Stocking


Biden Has a Really Dumb Idea Involving Face Masks

Bronson Stocking


So, It’s Only Newsworthy When GOP Voter Registration Declines?

Matt Vespa


Two Vulnerable Democratic Senators Side With Illegal Immigrants Over Taxpayers in Budget Debate

Reagan McCarthy


Biden Announces Executive Order Dramatically Increasing Refugees Amid Pandemic

Bronson Stocking


White House: Biden Would 'Love' to See Action on Gun Control

Katie Pavlich


ADVERTISEMENT
Political Cartoons
Bearing Arms
Where Are Biden's Executive Orders On Guns? | Cam Edwards

Your Guide To The Gun Bills Introduced In Congress (So Far) | Cam Edwards

Blumenthal, Murphy Introduce Federal Gun Storage Bill | Cam Edwards

Idaho Bill Embraces Armed School Staff For Student Protection | Cam Edwards

Arkansas "Stand Your Ground" Bill Has First Setback | Tom Knighton

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