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Boeing faces new questions over Alaska Airlines incident...
January 08, 2024 View Online | Sign Up | Shop

Morning Brew

Timeline Nutrition

Good morning. The NFL playoff matchups are set, and if there’s one thing in this world you can be 100% sure of…Americans will be watching along with Bill Belichick. The NFL accounted for 93 of the top 100 US broadcasts last year, according to Sportico, up from 82 in 2022 and 61 five years ago.

The only non-football broadcasts to crack the top 50: the State of the Union address and the Macy’s Thanksgiving Day Parade (which drew a record audience of 28.5 million).

Neal Freyman, Dave Lozo

MARKETS: YEAR-TO-DATE

Nasdaq

14,524.07

S&P

4,697.24

Dow

37,466.11

10-Year

4.042%

Bitcoin

$43,954.12

Apple

$181.18

*Stock data as of market close, cryptocurrency data as of 10:00am ET. Here's what these numbers mean.

  • Markets: Was the champagne that flowed at the end of 2023 just “sparkling wine”? One week into 2024, stocks and bonds are off to their worst start in 21 years as investors maybe got a bit ahead of their skis in anticipating Fed rate cuts. This week, Wall Street will be focused on fresh inflation data and the beginning of Q4 earnings season.
 

AVIATION

Alaska Airlines blowout is another problem for Boeing

An Alaska Airlines Boeing 737 Max 9 Stephen Brashear/Getty Images

Many people’s worst fears came to life Friday night when an Alaska Airlines Boeing 737 Max 9 jet bound for Ontario, CA, returned to Portland for an emergency landing after a panel blew out around 10 minutes after takeoff. No one was seriously injured, but Boeing is facing fresh scrutiny just as it hoped to put past safety issues behind it.

It could have been much worse. The seats near the blowout were unoccupied, and it’s likely all passengers were wearing seat belts, since the aircraft was still climbing at an altitude of ~16,000 feet.

An investigation into what went wrong is ongoing. Supplier Spirit AeroSystems manufactured and installed the aircraft’s fuselage, but Boeing has a key role in the completion process, Reuters reported. Aviation authorities said a broader design problem wasn’t suspected “at this time,” and Boeing, which said it supports the investigation, is providing technical help.

Regulators are keeping the plane on the ground. The FAA ordered the temporary grounding of the 171 Max 9s in use across US airlines for an inspection that was estimated to last four to eight hours per aircraft.

  • On Sunday, Alaska canceled 163 flights (21% of its schedule), United scrubbed 180, and airlines in Mexico, Panama, and Turkey temporarily took most or all of their Max 9s out of service.

Boeing has more questions to answer

A report by NBC News detailed almost a dozen equipment problems involving Boeing aircraft dating to 2012. The most damaging were two crashes of its 737 Max 8 less than five months apart—one in Indonesia in 2018 and another in Ethiopia in 2019—that killed a total of 346 passengers, leading to the grounding of all 737 Max 8s globally for 18 months.

Following the mishaps, whistleblowers accused Boeing of fostering a company culture that put profits ahead of safety concerns, and a US House investigation into the fatal crashes bashed Boeing and the FAA for “repeated and serious failures.” Boeing CEO Dave Calhoun, who has been in the role since January 2020, has tried to restore confidence in the planemaker, but this open-air Alaska flight is sure to put Boeing’s business practices under the spotlight once again.—DL

     

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WORLD

Tour de headlines

Oprah Winfrey, Emma Thomas, Christopher Nolan, Robert Downey Jr., Charles Roven, Matt Damon and Ludwig Göransson at the 81st Golden Globe Awards Michael Buckner/Golden Globes 2024/Golden Globes 2024 via Getty Images

Oppenheimer dominated the Golden Globes. The Golden Globes kicked off Hollywood’s award season last night, and in their first showdown since the summer 2023 box office, Oppenheimer bested Barbie with five awards (including best drama) to two. Lily Gladstone became the first Indigenous person to win best actress in a dramatic film for her role in Killers of the Flower Moon, and she began her speech in the language of Blackfeet Nation, her native tribe. Succession was the big winner of the television categories, while the only thing host Jo Koy won was a death stare from Taylor Swift after his joke about her attending NFL games fell flat. In defense of his bad jokes, the comic said he was asked to be the host 10 days ago.

Winter has arrived. Hundreds of flights were canceled across the country, I-80 was temporarily closed in California as heavy snow fell on the Sierra Nevada, and every kind of nasty precipitation you can think of—snow, sleet, freezing rain, ice—pummeled the Northeast through Sunday. You won’t get much of a break to shovel your driveway: Another fast-moving, powerful winter storm will make its way across the country in the middle of the week, delivering significant snowfall to a handful of states. But probably not here in Manhattan, which as of today has gone a record 694 days without an inch of snow.

Musk’s drug use reportedly worries his company’s leaders. Execs and board members at SpaceX, Tesla, and other companies run by Elon Musk are concerned about the business impacts of Musk’s persistent drug use, according to the WSJ. Musk’s reported use of drugs, including ketamine, cocaine, LSD, and ecstasy, at parties could imperil SpaceX’s lucrative contracts with NASA and violate company policies at Tesla, a publicly traded company with a fiduciary responsibility to shareholders, the WSJ notes. Musk’s lawyer responded that the billionaire has never failed a drug test at SpaceX.

SPACE

Navajo Nation objects to human remains on the moon

Moonrise over Monument Valley in Arizona Getty Images

The space industry has waited a long time for this morning—a rocket launch sent a US company’s lunar lander on a mission to the moon. If Astrobotic’s Peregrine lander arrives in one piece next month, it’d be the first American spacecraft to touch down on the lunar surface in 50+ years and mark a key milestone in NASA’s efforts to get humans back to playing low-gravity golf.

But one community wanted to delay the launch: Navajo Nation, the US’ largest Native American tribe. That’s because the spacecraft’s payload includes cremated human remains that will be deposited on the moon, which is a sacred place for the Navajo and other Indigenous tribes.

  • “The placement of human remains on the moon is a profound desecration of this celestial body revered by our people,” Navajo Nation President Buu Nygren said in a statement.

The White House held a last-minute meeting with Navajo Nation to hear out their concerns, but the government emphasized it can’t dictate what cargo a private company carries up to the moon.

The CEO of Celestis, the company that sold the memorial spaceflight, also pushed back, saying, “No individual religion can or should dictate whether a space mission should be approved.”

Looking ahead…NASA admitted that its increased reliance on the private sector could lead to more contentious moon missions in the future.—NF

     

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CALENDAR

The week ahead

bitcoin bull Francis Scialabba

Bitcoin ETF cleared for launch? The crypto equivalent of a new Rihanna album—the first spot bitcoin ETF—could be approved by regulators this week in what would be a watershed moment for Wall Street’s embrace of digital tokens. The hype around these proposed funds, which would allow regular investors to gain exposure to bitcoin without buying it directly, drove bitcoin’s price up 162% over the past year.

AI takes center stage at CES 2024. If you have a gadget that doesn’t include AI, you may as well not show up to the Brobdingnagian consumer electronics trade show that starts in Las Vegas on Tuesday. Dozens of companies are planning to unveil new products that incorporate AI, from safety systems in automobiles to PCs and smartphones. Notable no-shows: Apple, which has snubbed the event for years, and OpenAI’s Sam Altman.

Another deadline looms for a government shutdown. Congress is back in session today after its holiday break and faces a familiar problem—agreeing to a spending bill to avoid a government shutdown on Jan. 20. This historically unproductive group of lawmakers will have to resolve contentious issues of border security and foreign aid, but leaders took a big step toward preventing a shutdown yesterday by striking an agreement to set topline spending for 2024 at $1.6 trillion.

Everything else…

  • Michigan will take on Washington in the college football championship tonight. All signs point to a competitive game.
  • OpenAI’s store for custom apps based on its large language models will go live this week.
  • Ron DeSantis and Nikki Haley will be the only two candidates on stage Wednesday at the final Republican debate before the Iowa caucuses on Jan. 15.
  • Ariana Grande will release a long-awaited new single on Friday.

GRAB BAG

Key performance indicators

People taking selfies in Japan Yuichi Yamazaki/AFP via Getty Images

Stat: In Japan, a record 34.1% of adults between the ages of 20 and 49 have never been in a romantic relationship, and more than 25% have no intention of getting married, according to a survey that offers insight into the attitudes of a country where the birthrate declined for a seventh consecutive year in 2022. Nearly one-fifth of women in their twenties and nearly one-quarter of men in the same age bracket said having a romantic relationship is a waste of time and money. Facing the prospect of widespread labor shortages, the government in June announced plans to provide $25.2 billion in funding for childcare, including financial allowances for childbirth and rearing, as well as increased subsidies for higher education.

Quote: “We’re still definitely in survival mode trying to find a way to stay in business.”

Alaska’s snow crab season has been canceled for the second year in a row, and with climate change at the heart of the issue, commercial fishers like Gabriel Prout are growing concerned about the future of their industry. In early 2022, biologists discovered that 90% of the snow crab population had disappeared, which they connected to rising temperatures in the Bering Sea affecting the cold-water crustaceans’ food supply and driving them to starvation. Last year’s cancellation did little to replenish the population, but biologists hope one more year without snow crab fishing will steady Alaska’s fisheries, which provide 60% of the country’s seafood.

Read: What if money expired? (Noema Magazine)

NEWS

What else is brewing

  • US Defense Secretary Lloyd Austin said he takes “full responsibility” over his mysterious hospitalization for an unspecified medical condition as criticism of his secrecy grows.
  • Top US and European diplomats were in the Middle East on a mission to prevent the Israel–Hamas war, now entering its fourth month, from spilling over into a wider regional conflict.
  • Audacy, the US’ largest radio company, filed for Chapter 11 bankruptcy.
  • President Biden will deliver the State of the Union address on March 7 during a time House Speaker Mike Johnson called a “moment of great challenge for our country.”
  • A man was arrested after he crashed his car into an Alabama Bass Pro Shop, took off his clothes, and cannonballed into the store’s giant aquarium. He’s currently polling at 64%.

RECS

Monday to-do list image

Salt day: How to use all the different salts in your cooking.

Doze off: This breathing method could help you fall asleep faster.

Look like a snack: Paul Hollywood and Prue Leith decide on the best American snack.

Go there and back again: The lopsided demographics of Tolkien’s Middle Earth.

Randomized stocks < handpicked stocks: New members can get Motley Fool’s Stock Advisor for just $79* for the first year. Their stock picks have averaged a 546% return since inception in 2002. Get started.**

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GAMES

The puzzle section

Turntable: More than 30,000 of you played the final Turntable of 2023. Let’s shatter the record early this year. Play the find-the-word game here.

Michigan vs. Washington

Before they square off on the gridiron in the college football championship tonight, Michigan and Washington (the states) go head-to-head in today’s trivia. See if you can answer these questions about the two.

  1. Which state has the greater population?
  2. Which state is larger by area?
  3. What is the most valuable company headquartered in Washington? What about in Michigan?
  4. Which state has more national parks?
  5. Which state voted for a Republican presidential candidate more recently?

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ANSWER

1. Michigan has a bigger population.

2. Michigan is larger by area (don’t forget about the UP!).

3. In Washington, it’s Microsoft (beating out Amazon). In Michigan, it’s GM (beating out Ford).

4. Washington has three (Olympic, Mount Rainier, North Cascades), while Michigan only has one (Isle Royale).

5. Michigan, which voted for Trump over Clinton in 2016. Washington last voted for a GOP candidate in 1984 (Reagan over Mondale).

Word of the Day

Today’s Word of the Day is: Brobdingnagian, of course. It comes from Jonathan Swift’s Gulliver’s Travels and means “huge.” Thanks to Maura from Alabama (and others) for the suggestion.

Submit another Word of the Day here.

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