JOBS

You Might Have to Guard Your Own Life This Summer

Thanks to COVID-19, millions of young people are missing out on early job experiences. 

• U.S. unemployment for ages 16–19 hit 32% in April, the highest since at least 1948, per the Bureau of Labor Statistics. And it’s expected to keep climbing as more academic years end and employers say, "Do I look like I can afford interns right now?" 
• Globally, over one-sixth of young workers have stopped working during the pandemic, according to the International Labor Organization (ILO), the UN’s labor arm. A new ILO report released yesterday found that the equivalent of 305 million full-time jobs have been lost in Q2. 

(Part of) the reason?

The industries that usually employ young people—retail, restaurants, and recreation like pools and golf courses—are exactly the ones being battered by lockdowns.

To look on the bright side: One restaurant company owner told the WSJ he planned to hire extra workers to staff a pivot to delivery. But applicants had better get their doorbell etiquette pitch-perfect: The competition for those positions will be intense. 

To go back to the dark side: This means a big chunk of lost income for working families and for young people who may need it to cover tuition and other expenses. Plus, ILO Director-General Guy Ryder warned there is a “danger of long-term exclusion”—missing out on training and résumé-building experience could thwart or delay entire careers. 

• “I don’t think it is giving way to hyperbole to talk about the danger of a lock-down generation,” Ryder said. 

Zoom out: This is a screeching-brake slowdown after a historic acceleration. Last July, U.S. youth unemployment fell to 9.1%, the lowest level since July 1966. That mirrored a humming labor market, in which unemployment hit 3.5% as recently as February. It's now at 14.7%. 

INTERNATIONAL

EU Recovery Plan: A Lot on the Rhine

Yesterday, the European Commission (the EU’s executive body) proposed a $2+ trillion bailout for suffering member countries. 

The details: The package includes an $824 billion recovery plan, plus a $1.2 trillion budget for the next seven years. 

• It would also tie member states’ finances together more than ever by issuing common debt.
• The European Central Bank has been nagging the EU to match its super-accommodative monetary policy with meaty fiscal contributions. 

The conflict: A group of northern European countries (Sweden, the Netherlands, Denmark, and Austria) dubbed the “frugal four” are spooked by the prospect of handing out support to indebted, tourism-dependent southern European countries. That tension between the wealthy north and struggling south has been a stumbling block for decades. 

Looking ahead...all EU countries have to approve the recovery plan, so don’t expect this to wrap up anytime soon. The likely sticking points are 1) the split between grants and loans and 2) attached strings.

FOOD

Americans During Lockdown

Papa John’s announced yesterday that North American same-store sales surged 33.5% during May, topping April’s 26.9% jump. “For the second straight month,” CEO Rob Lynch said, “team members and franchisees delivered the best sales period in the company’s history.” 

Domino’s said same-store sales over the first two months of the quarter increased 14%. But it’s not sure how long this kind of breakneck growth will last.

Bottom line: Don't really have any insightful takeaways here except that people are lazy and like to order cheap pizza when they have nothing else to do.

SPONSORED BY NORTHWESTERN MUTUAL

Economic Volatility Happens—Here’s What To Do

First, take a deep breath. Ups and downs are inevitable. But no worries, because you can be ready for them. That’s where Northwestern Mutual comes in.

They’ve guided people through all kinds of events and helped them make the choices to come out stronger on the other side.

Their financial advisors are expert listeners and will answer all your questions without any jargon. They’ll work with you to create a customized plan that will cover everything from budgeting to insurance to investments.

So no matter what happens today, you’ll have a setup to handle it, and you’ll still be able to keep your goals on track for the days ahead.

Ready to get your financial plan? A Northwestern Mutual advisor is ready to help, even if it’s remotely.

Get matched with an advisor today.

SOCIAL MEDIA

Kylie Jenner Is About to Get a Whole Lot Richer

Yesterday, Instagram announced it is testing new features that make it easier for creators to monetize their followings. 

The features 

• After years of whispers, Insta will start running ads before IGTV vids and sharing that revenue with creators.
• Viewers will also be offered the option to purchase “badges” on Instagram Live to show their support. 

Why it’s good for Kylie: Before these updates, the only way influencers could make money on Instagram was by inking promotional deals with brands outside the Insta ecosystem. There was no way to directly monetize their content in the vein of YouTube’s rev sharing system. Now there is. 

Why it’s good for Zuck: Influencers were already making money without Insta’s help by asking supporters for Venmos or promoting their Patreon accounts. Now that the Facebook subsidiary is providing support on top of Lo-Fi filters, it gets to snag a portion of that commerce. 

Bottom line: With views of Instagram Live videos jumping 70% from February to March, Zuck couldn’t have timed the rollout any better.

SPORTS

Stadiums Adjust to Empty Nester Life

While the Tampa Bay Rays are used to empty seats, other sports organizations are looking for ways to adapt to life without...pretty much any activity. Here’s how some teams have put their stadium infrastructure to good use: 

Coronavirus test sites: In April, Baltimore's Pimlico Race Track hosted the city's first drive-thru testing center. On Tuesday, Dodger Stadium opened a coronavirus testing site in its vast parking area—it's now the biggest testing site in LA County. 

• The Dodger Stadium parking lot is also being used to store fleets of rental cars no one is using.

Impromptu hospitals: A stadium in São Paulo that is typically home to four of Brazil's top-tier soccer clubs was converted into a field hospital, treating coronavirus patients in the hard-hit country. 

Food distribution centers: The Chicago Cubs turned the iconic concourses at Wrigley Field into a satellite distribution center to assist a local food charity. 

Drive-in movie theater: This week, the Miami Dolphins announced their Hard Rock Stadium will become an outdoor movie theater capable of holding 230 vehicles. It’ll offer fans more entertainment in one night than they’ve received in the last 10 years. 

WHAT ELSE IS BREWING

• President Trump threatened yesterday morning to “strongly regulate” or close down social media platforms after Twitter flagged two of his tweets for being misleading. In the evening, the WH press secretary told reporters the president would sign some sort of executive order about social media companies today. 
• Huawei's CFO lost a critical legal battle in her fight against extradition to the U.S. 
• Boeing is cutting more than 12,000 jobs via layoffs or buyouts.
• AMD’s Lisa Su became the first woman to top the AP’s annual survey of CEO compensation. Her pay package was valued at $58.5 million in 2019.
• Disney World said it’ll begin a phased reopening on July 11. We know we've been a bit hard on you in this newsletter, Floridians, but it's only out of love. 

SPONSORED BY SPA GIRLS COCKTAILS

Have you ever sipped sunshine on the rocks? The vodka geniuses at Spa Girl Cocktails created plant-based, better-for-you, “ready to drink” from a can or bottle vodkas in three crisp and fruity flavors: pear, peach, and cucumber. These ladies ditched the complicated recipes, expensive mixers, and sugary, artificial flavors for high-quality premium vodka that’s clean, fresh, and only 48 calories. Get 20% off your order with code BREW20.

BREW'S BETS

The Brew’s Guide to 5G: Wondering how 5G will impact your life? Not sure how it’s any different than 4G? Emerging Tech Brew answers all of your questions about the next generation of wireless tech in an interactive, digestible format. and talk 5G like a pro in no time.

State facts: What’s the most Googled “how do you spell…” query in each state? Find out . 

Quarantine purchases: We all made 'em, but you can find out the lockdown purchases people valued the most in this thread. 

The who's who of finance Twitter: We compiled a list of 20 accounts that'll help you level up your market knowledge each day. 

^{*This is sponsored advertising content}

REAL ESTATE APPRAISER

For today’s trivia section, we’ll give you the details on a property for sale and you have to guess the listing price (thanks Mike Allen for the introduction). The specs: 

• Gated estate on four acres in Potomac, Maryland
• 7 bedrooms/8 baths in the main house, 2 bed/1 bath in the guest house, and a pool house with a full kitchen and bath
• Lighted tennis court and heated pool 

But here’s the kicker: The basement features an epic party space modeled after a 1900s-era Georgetown street. And some doors of the streetscape actually open to useful spaces, like a garage.

Washington Fine Properties

So how much is this property being listed for? 

REAL ESTATE APPRAISER ANSWER

$4.5 million