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Good morning. Huge news! After a short stay at a podcast yoga retreat, our refreshed Business Casual pod is coming back with new episodes in October. And instead of one host, we now have two: Scott Rogowsky, HQ Trivia Quiz Daddy Emeritus, and Nora Ali, a former Wall Street analyst turned media entrepreneur. This dynamic duo will interview the biggest names in business and grace your ears with the best biz content ever carried on sound waves. Subscribe here.

MARKETS Nasdaq 14,896.85 +1.02% S&P 4,395.64 +0.95% Dow 34,258.32 +1.00% 10-Year 1.311% -1.4 bps Bitcoin $43,152.86 +3.78% FedEx $229.08 -9.12% *Stock data as of market close, cryptocurrency data as of 6:00pm ET. Here's what these numbers mean. Markets: The S&P and Dow snapped their four-day losing streaks after the Fed made no surprising moves following its two-day meeting. But FedEx had its worst trading day in 18 months after it said a severe labor shortage added $450 million to its costs. Economy: While the Fed didn’t make any policy changes at its meeting this month, it did say it could begin shrinking its stimulus program in November and potentially raise interest rates next year. Covid: As expected, the FDA approved Pfizer booster shots for Americans 65 and older and anyone who may be at a higher risk of contracting severe Covid-19. Now it's the CDC's turn to decide the specifics of the rollout. Markets Sponsored by Fidelity Investments Fall down the cryptocurrency rabbit hole with us in the latest episode of Fresh Invest, our podcast with Fidelity. Listen now.

REAL ESTATE China's Grande Real Estate Problems Francis Scialabba The business world has been captivated by the slow-moving train wreck that is Evergrande, a massive Chinese real estate developer that’s buried up to its penthouse in debt. Investors have feared that because of Evergrande’s size and interconnectedness with other companies, its impending collapse could do its best Covid impression and spread contagion across markets. The latest: Evergrande was able to make an interest payment on a domestic bond yesterday, but the bigger question is whether it’ll be able to settle a $83.5 million bill due today. If it can’t pay up in 30 days, it could default, which might cascade across the global economy. Why is it a big deal? Because in China, real estate is the biggest game in town, and the town is pretty big—China is the world’s second-largest economy. In China, real estate contributes a mind-boggling 29% of GDP (compared to 6.2% in the US in 2018). Building has literally built China into the superpower it is today. But thanks to super-low borrowing costs, the Chinese property sector has been feasting on empty calories, leading to astronomical debt loads ($300+ billion, in the case of Evergrande) and a chronic oversupply of housing. There is enough empty property in China to house more than 90 million people, according to the Rhodium Group’s Logan Wright. The entire population of France, Germany, Italy, the UK, or Canada could easily fit into those empty apartments. A viral video from last month shows 15 unfinished high-rise apartment buildings getting demolished in a matter of seconds. Like an angry parent whose credit card was abused by their teenager, China’s government has recently taken steps to limit the amount of debt that property developers can take on. Letting Evergrande implode would show that President Xi Jinping is serious about this crackdown. Bottom line: Some observers have compared Evergrande’s woes to the epic collapse of the investment bank Lehman Brothers during the 2008 financial crisis. But other experts say this isn’t a Lehman Brothers moment—it could be worse, if you view China’s gargantuan real estate sector as rotten to the core.—NF

CRYPTO Crypto Wallets Enter the Mainstream Francis Scialabba We celebrated the first day of fall with six gallons of chili for dinner; Robinhood celebrated by announcing the rollout of a crypto wallet. The wallet will be available for a small test group in the next few weeks, and then to the rest of its users next year. What is a crypto wallet? Just like regular wallets store dollars, crypto wallets are where you store your cryptocurrency. They make it possible to spend crypto like other forms of money and buy things like NFTs. Can’t you buy crypto on Robinhood already? Kinda, in the sense that you can buy some cryptocurrencies, like bitcoin and ethereum, but you don’t own them. When you buy crypto on Robinhood, the company buys it and then stores it in its own wallet—which means users can’t transfer it out of the app to spend on their favorite CryptoPunk. Hardcore crypto people have complained that this defeats the entire purpose of cryptocurrency. Zoom out: Robinhood’s going full laser eyes. In its latest earnings report, the company said crypto made up over half of its transaction-based Q2 revenue. While there are still some limitations to its wallet, Robinhood is building the bridge for the crypto-curious into the deeper ecosystem.—MM

ENTERTAINMENT Netflix Buying More Content Like Giphy Netflix has acquired the rights to all of Roald Dahl’s works, including Matilda, Charlie and the Chocolate Factory, and other tales that kept you up at night as a kid (remember “the Chokey”?). Reportedly ringing in at over $680 million, it’s among the biggest acquisitions Netflix has made over the past decade. The deal expands on a 2018 partnership Netflix made for 16 Dahl licenses, which allowed it to start working on several animated series, plus a Matilda the Musical adaptation. Now, Netflix’s ambitions for Dahl’s stories are bigger than the Giant Peach and include games, live theater, products, and more. Less than a year ago, the Dahl estate publicly apologized for antisemitic comments the author made. To make amends, part of this sale’s proceeds will create a charitable fund focused on “children’s health, anti-hate, and anti-racism.” Big picture: The competition to chill with you is fierce. Netflix is still the largest streaming service in the world with 209 million subscribers, but competitors are catching up—especially Disney+, which launched less than two years ago but already has 116 million subscribers. Dahl’s trove of kids content could help Netflix keep its edge over Disney...and all the other streamers beefing up their catalogs.—JW

SPONSORED BY FIDELITY Go Green: Building a Portfolio with Purpose As an investor, you can take your portfolio in a number of different directions—why not choose a path that goes for green in more ways than one? That’s the goal of the Fidelity Climate Action Fund. It enables investors to support companies that either prioritize, remove, reduce, or mitigate the effects of climate change. It’s a fund that aims to create an environmentally focused and balanced strategy with long-term growth potential. A strategy that understands: In the next decade, the US utility industry’s capacity to generate wind and solar energy could grow from 14% to 39%1 On average, climate adaption and decarbonization measures would create ten US jobs per million dollars invested2  Powered by Fidelity’s active management insights and expertise, The Fidelity Climate Action Fund can help you approach opportunities in the green transition with confidence. Learn more about the Fidelity Climate Action Fund today.

GRAB BAG Key Performance Indicators JOSH EDELSON/AFP via Getty Images Stat: Californians used just 1.8% less water at home in July than a year before, despite extreme (or worse) drought conditions covering almost 90% of the state. Gov. Gavin Newsom had urged residents to cut domestic water use by 15% in early July. Quote: “I just think it’s time for some of our dearest friends around the world to prenez un grip about this and donnez-moi un break.” British Prime Minister Boris Johnson engaged in some light mocking of France after the country got snubbed from a nuclear submarine pact among the US, UK, and Australia. Pardon your French, Mr. Johnson. Read: San Francisco’s bizarre, costly quest for the perfect trash can. (Mission Local)

TECH Investors Raise a Glass to Toast Toast Toast, the restaurant tech startup, jumped about 56% in its IPO yesterday to close at a $36 billion valuation. Chances are you’ve put your card into one of Toast’s readers to pay for your fried ravioli, because its products are used at 48,000+ restaurants around the country. That’s on the front end...but on the back end, Toast also provides management software so restaurants can digitally track orders and operate delivery networks. It wasn’t always champagne and stock exchange. The onset of Covid-19 had Toast looking...well...like toast. Within two months of the start of the pandemic, the company laid off or furloughed half of its employees and revenue plummeted 80%. But when restaurants had to pivot to contactless everything, Toast was there, lurking in the walk-in freezer. And after powering through 2020, it’s currently riding the dining-out wave: Annual recurring revenue climbed 118% last quarter.—MM

WHAT ELSE IS BREWING The US housing market cooled slightly in August, with sales of previously owned homes falling 2% over July, per the National Association of Retailers. It suggests potential homebuyers are feeling priced out. United Airlines said more than 97% of its US employees were vaccinated. In early August, the airline became the first US carrier to announce a vaccine mandate. Microsoft announced lots of new hardware, including a new flagship laptop. Facebook promoted Andrew “Boz” Bosworth, who currently leads its hardware division, to the role of Chief Technology Officer.

BREWS BETS Made for the (literal) long run. Tracksmith makes the highest quality, performance running apparel that works as hard as you do—and dang if it doesn’t make you look great while you do it. Get yours here.* The one thing better than pizza? Investing in pizza robots. Piestro makes artisanal pies at a fraction of the cost—and now you can get in on all that dough-making potential. With $580M in commercial pre-orders already, now’s the time to invest—the last day is 9/30.* Touching obit: This short obituary from a brother to his sister who could never speak more than three words is quite moving. SNL hosts for the fall: No tech CEOs this time, but we do get a Jason Sudeikis appearance. Check out the rest of the hosts and musical guests. *This is sponsored advertising content

GAMES The Puzzle Section Brew Mini: You've made it past Hump Day, so solving this mini puzzle should be no problem. Three Headlines and a Lie Three of these news headlines are real and one is faker than the excitement for a couple’s costume. Can you guess the odd one out? "Samuel Adams' latest potent beer is illegal in 15 states" "With natural gas prices skyrocketing in Europe, one UK man sees gold in bottled flatulence." "Tim Cook says employees who leak memos do not belong at Apple, according to leaked memo" "Rwandan court finds Hotel Rwanda film hero guilty in terrorism case"

SHARE THE BREW We think you should share the Brew. Not only is it a smart thing to do for your friends, it’s also the smartest way to get showered in free Brew swag and exclusive content. Your referral count: 0 Click to Share Or copy & paste your referral link to others: morningbrew.com/daily/r/?kid=a17a7110

ANSWER Sorry, we made a fart joke. That one isn't true.

God has the power to heal. God has the power to provide. God’s word has the power to change lives. God has the power to transform you! “For who is God except the Lord? Who but our God is a solid rock? God is my strong fortress, and he makes my way perfect.” 2 Samuel 22:33 September 23 FEATURED BIOGRAPHY John Coltrane American musician READ MORE FEATURED EVENT 1846 Neptune observed READ MORE Advertisement Advertisement MORE EVENTS ON THIS DAY 2006: American folk musician Etta Baker, who influenced the folk music revival of the 1950s and '60s with her blend of Piedmont blues and bluegrass, died at age 93. [Take our musicians quiz.] 1987: American choreographer and director Bob Fosse—who revolutionized musicals with his distinct style of dance, including his frequent use of props, signature moves, and provocative steps—died in Washington, D.C. [How much do you know about dance?] 1980: Jamaican musician Bob Marley, who was especially known for popularizing reggae, performed his last concert, a sold-out show in Pittsburgh, Pennsylvania; he died of cancer the following year. [Test your knowledge of reggae.] 1969: The American film Butch Cassidy and the Sundance Kid had its world premiere, and it became a western classic, especially noted for the pairing of Paul Newman and Robert Redford as the titular outlaws. [How much do you know about Paul Newman?] 1949: American singer, songwriter, and bandleader Bruce Springsteen, who became the archetypal rock performer of the 1970s and '80s, was born. [Take our quiz about rock and roll.] 1939: Sigmund Freud, the founder of modern psychoanalysis, died in London. [Test your knowledge of psychology.] SEE ALL EVENTS ON THIS DAY ALSO BORN ON THIS DAY 1949 Bruce Springsteen American singer, songwriter, and bandleader -63 Augustus Roman emperor 1930 Ray Charles American musician 1920 Mickey Rooney American actor 1926 John Coltrane American musician 1943 Julio Iglesias Spanish singer and songwriter SEE ALL BIOS ON THIS DAY

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As Americans, We Have the Right To a Government That Works For Us Laura Hollis Who's Really at Fault if the Government Defaults? Veronique de Rugy AUKUS Is a Good Start. Now The UK Must Join the Quad. Young Voices Contributors An Overlooked Controversy in California Jerry Newcombe Biden's Promise To Unite the US Is a Dismal Failure Armstrong Williams Analyzing the Election Results in California and Canada, and the Attitude of Faith vs. Fear Michael Brown How Would I Charge My Electric Vehicle When I Don’t Have Electricity? Vijay Jayaraj Lack of U.S. Leadership Exacerbates Southern Border Crisis Jackie Gingrich Cushman According to Data from the CDC, Youth Vaping Has Not Led to Smoking Lindsey Stroud Iron Dome Funding: A Referendum on Supporting Terror in Congress Jonathan Feldstein		Why John Kerry Said Life Is Full of Tough Choices When Asked About China's Uyghur Genocide Matt Vespa House Oversight Dem Slams Facebook for ‘Failure to Protect The Welfare of Its Users’ Madeline Leesman Where Did All of These Haitians Come From and Why Are They at the Border Now? Julio Rosas Political Cartoons Bearing Arms Parents Upset Over Booster Club Gun Raffle | Tom Knighton ACLU: Restrict The Second Amendment To Protect The First | Cam Edwards The Daily Beast Thinks NRA Owns ATF | Tom Knighton Virginia AG Leans In To Gun Control Ahead Of Election | Cam Edwards Toledo Tries Multi-Prong Approach To "Gun Violence" | Tom Knighton
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Axios AM

By Mike Allen ·Sep 23, 2021

Happy Thursday. Smart Brevity™ count: 1,172 words ... 4½ minutes. Edited by Justin Green. Please join Axios' Niala Boodhoo and Dan Primack today at 12:30 p.m. ET for a virtual event on venture-capital investing in climate tech. Guests include Senate Finance Chair Ron Wyden (D-Ore.) and Tom Steyer. Sign up here.

1 big thing: 60-year murder spike

Illustration: Aïda Amer/Axios

Upcoming FBI data is expected to show 2020 had the highest single-year spike in U.S. murders in at least 60 years. Experts attribute the surge to job losses, fears and other jolts to society at the start of COVID, Axios' Russ Contreras reports. The homicide rate would remain far lower than it was through much of the 1980s and 1990s — about one-third below the rate in the early 1990s, The New York Times reports (subscription).

Data: FBI and The New York Times (2020 estimate). Chart: Axios Visuals The Times reports that early FBI data shows a 29% spike in murders last year. That would be the biggest single-year increase since national record-keeping began, in 1960. Previously, the largest one-year increase was a 12.7% rise in 1968. Many major U.S. cities, from Atlanta to Albuquerque, reported surges in violent crime in 2020, including jumps in homicides and gun crimes. Homicides in Milwaukee doubled from 2019 to 2020, Wisconsin Public Radio reported. The number of homicides in Houston in 2020 was the highest in 15 years, city records show. California had 5.8 homicides per 100,000 residents in 2020 — the highest rate since 2008, according to preliminary data from the state's Department of Public Health. Share this story.

2. N.Y. Times compares Biden to Trump

U.S. Customs and Border Protection mounted officers attempt to contain migrants as they cross the Rio Grande on Sunday. Photo: Felix Marquez/AP Citing moves on Afghanistan and the border, two N.Y. Times items compare President Biden to the predecessor he defeated: A news story — "Biden Pushes Deterrent Border Policy After Promising 'Humane' Approach" (subscription) — notes this week's images of the border roundup "could have come straight from former President Donald J. Trump’s immigration playbook": "[T]he deportations are a stark example of how Mr. Biden ... is deploying some of the most aggressive approaches to immigration put in place by Mr. Trump over the past four years." Frank Bruni column, "The UnTrump Presidency Slams Into Trumpness": "[H]e pulled out of Afghanistan without the degree of consultation, coordination and competence that allies expected, at least of any American president not named Trump." "And Biden’s return of hundreds of desperate Haitian migrants to Haiti ... also seems Trumpy to many observers." Bruni's bottom line: "Biden is a far cry from Trump. Hallelujah. But that doesn’t mean that he’s untouched by Trump."

3. Our weekly map: Signs of COVID hope

Data: The N.Y. Times. Chart: Kavya Beheraj/Axios The U.S. is moving in the right direction again, Axios' Sam Baker reports. New COVID cases are continuing to decline, and some experts are cautiously optimistic that the virus will continue to wane even into the fall and winter. The U.S. is now averaging 134,000 new cases per day — a 10% drop over the past two weeks. The pace of new infections, relative to each state’s population, is getting worse in 27 states and improving in 23. Tennessee has seen the biggest drop in new cases over the past two weeks. Montana has seen the biggest spike. Vaccinations for kids should help. Children ages 5-11 could become eligible for vaccinations in the next several weeks. Share this story.

A message from Bank of America

Forging a path toward achieving net-zero

Bank of America is part of the Partnership for Carbon Accounting Financials. Why it’s important: The partnership consists of a group of financial institutions working to assess and disclose the greenhouse gas (GHG) emissions associated with their loans and investments. Get more details.

4. Mapped: Latino growth hubs

Data: Brookings Institution. Map: Thomas Oide/Axios The Hispanic and Latino population in the U.S. grew 23% over the past decade — with some areas seeing a boom three or more times that rate, Stef Kight reports from census data in Axios Sneak Peek. The seven metro areas with Latino or Hispanic populations greater than 2 million, Brookings’ Bill Frey found: L.A. New York Miami Chicago Houston Dallas Riverside, Calif. Share this map.

5. Airbnb doubles Afghan housing

Amanda Roshan-Rawaan packs donations for Afghan refugees Sunday at Unitarian Universalist Church in Bloomington, Ind. Photo: Jeremy Hogan/SOPA Images/LightRocket via Getty Images Airbnb CEO Brian Chesky and co-founder Joe Gebbia told me during a visit to Washington yesterday that they're offering temporary housing to 40,000 Afghan refugees worldwide, doubling a previous commitment. The housing typically lasts several weeks, and Airbnb and Airbnb.org provide subsidies to hosts. Resettlement agencies tell Airbnb the highest-demand areas include Dallas, Northern Virginia, Sacramento, Seattle, Silver Spring, Md. In an interview for our "Axios Today" podcast, Chesky told me: "We've always wanted to figure out how we can use our platform as a force for good, beyond our core business." "Over the last 10 years, we've housed nearly 100,000 people displaced by disasters. A few years ago, we started housing refugees." Gebbia said part of giving back is "simply asking the question when things like this happen in the world: How can we help?" On "Axios Today" hear part of my conversation with Chesky and Gebbia.

6. Tech nightmare: Green cards wasted

Illustration: Megan Robinson/Axios

Thousands of green cards are about to go to waste, leaving Google, Microsoft and other tech companies fuming, Axios' Margaret Harding McGill writes. Why it matters: Google and Microsoft say they have thousands of employees and their families awaiting green cards. What's happening: An administration official warned this summer that because of pandemic delays, a 100,000-application backlog wouldn't be filled by the Sept. 30 fiscal year end. Extra green cards that haven't been granted in one year don't carry over to the next. Google and Microsoft are among companies that have been urging federal officials to find a way to save the roughly 80,000 remaining employment-based green cards set to expire Sept. 30. Google says only 13% of its candidate applications filed since last October have been approved. Apple CEO Tim Cook last week wrote to Department of Homeland Security Secretary Alejandro Mayorkas to press the issue on behalf of the Business Roundtable. (Read the letter.) Cook, who chairs the Business Roundtable's immigration committee, said officials should eliminate unnecessary document requests and conduct communications by phone or email to speed up processing. Share this story.

7. Biden's beyond-the-Beltway case

Graphic: The White House In a week of headwinds for President Biden's biggest plans, White House communications director Kate Bedingfield armed House Democrats with new data for making his "Scranton vs. Park Ave." case back home. Bedingfield spoke to the House Democratic Policy and Communications Committee (DPCC), where co-chair Rep. Debbie Dingell of Michigan said: "[G]overning is message." See the deck.

8. You can now compete with rental-car giants

Illustration: Shoshana Gordon/Axios

With rental cars in short supply, enterprising car owners have amassed their own small fleets of automobiles, renting them out to travelers at a premium, Axios transportation correspondent Joann Muller writes. If you need a car in Boston for a weekend in mid-October, you can rent a Ford Fiesta hatchback from Budget for about $500 — or pay the same for a Maserati Quattroporte from Turo.com, a car-sharing site. Turo and other car-sharing services, including Getaround and Avail, make it easy for anyone with spare vehicles to make some cash. The services are offering bonuses of up to $2,000 per vehicle for car owners to add to their fleets. Case in point: Lazaro Vento lists 22 vehicles for rent in Miami through Turo, including a Ferrari, a Tesla and multiple BMWs, Audis and Jeeps. In a particularly good month recently, he pocketed a $30,000 profit. Seven years ago, he was broke, living on a friend's couch. Today, he manages close to 100 Airbnb properties, along with his fleet of Turo cars, sometimes packaging them together. Share this story.

A message from Bank of America

The potential to track every dollar’s emissions

Bank of America is part of the Partnership for Carbon Accounting Financials. As part of the partnership, the bank assisted in the development of a methodology to measure, better understand and manage the impact of their business activities — a critical component to address climate change.

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