CURRENCY

Another Day, a Sliding Dollar

The value of the U.S. dollar is diminishing like it’s a degree in travel agentology. The greenback is…

• Down 9% from its March highs 
• Down about 3% year to date 
• On track for its worst month since 2011  

Why? Generally speaking, the value of the dollar reflects the U.S.’ overall economic strength relative to other countries. Fluctuations can be caused by anything from geopolitical tensions to market sentiment to unemployment levels. 

Can we get wonky on you for a sec? The two main factors for the dollar’s value are the money supply (what it sounds like) and real-yields (the value of bond yields minus inflation). The first is off the charts thanks to Fed Chair Jerome Powell’s print-a-palooza. And the second is in the basement, which has dragged the dollar down.

What a weak dollar means 

For the stock market…. A weaker dollar makes U.S. exports more competitive overseas, plus it minimizes the cost of converting profits made in other currencies. 

• A Goldman Sachs report showed a median 2.6% bounce in the S&P in months when the dollar dips.  

For safe haven assets…. The dollar’s decline is a boost for gold, which has shot up to record highs this week. Gold is priced in dollars, which means it’s more attractive to foreign buyers when the dollar is down. 

For emerging economies…. Developing countries’ stocks and some of their currencies have been on a rebound. 

Looking ahead…

Those hoping the dollar will turn around should tune in to the Fed’s policy statement following its meeting today. Then next week, we’ve got the monthly jobs report for July. If either of those signal optimism for a recovery, the dollar could see one, too.

ANTITRUST

It's Finally Here

We’ve prepped you as much as we could. Now, it’s time to sit back and watch. Today, the CEOs of the mightiest tech companies in the land, Facebook, Amazon, Google, and Apple, will appear before the House Judiciary Committee’s antitrust panel (remotely). 

In case you want to review each company’s predicament, we can oblige: 

• Facebook
• Google
• Apple
• Amazon

Plus, today we’re releasing a piece on the fascinating history of antitrust in the U.S., so you can have some context for what you’re about to watch today. 

How to watch

Time: 12 noon ET, 9am PT

Where: This YouTube livestream.

PHARMA

Kodak Goes From 35mm to 35μm

Yesterday, the Trump administration announced it’s giving Eastman Kodak a $765 million loan to manufacture pharmaceutical ingredients at a pair of plants in New York and Minnesota. 

Yep...that Kodak. Once a cutting-edge tech company with 145,000 employees, Kodak struggled after digital cameras usurped its film business. After filing for bankruptcy in 2012, it’s tried to reinvent itself, including a (failed) foray into cryptocurrency.

Now, it’ll shift operations from mixing chemicals for film to mixing chemicals for drugs. The administration thinks it can get Kodak to manufacture a quarter of active ingredients needed in the U.S., creating 350 jobs along the way.

Zoom out: Remember the Defense Production Act (DPA) President Trump invoked early in the pandemic to compel companies to make test kits? The Kodak investment is funneling DPA funds through an agency affiliated with the Defense Department. The broader goal is to rebuild depleted medical stockpiles and reduce dependence on foreign manufacturers, particularly in China.

SPONSORED BY MISO

Flippy’s on Flippin’ Fire Right Now

The Brew’s favorite burger-flipping robot, Flippy, is on the fast track to fast food stardom.

As a reminder, Flippy is the first robot that can cook food at quick-serve restaurants. Aka, it’s the world’s first autonomous robotic kitchen assistant.

What’s this have to do with you? Oh we don’t know, just that you can invest in Flippy right this very second. 

You’re a savvy investor, so we know you want some bullet points.

• Flippy is projected to help businesses increase profit margins roughly 300%.
• Flippy’s been featured in news and online media to the tune of 10 billion impressions with no spend.
• Flippy’s already perfectly cooked 60,000 pounds of food.
• Flippy is not interested at all in connecting with SkyNet.

So if you want an investment that’s way more delicious than all the others, flip through this webpage about Flippy.

SOCIAL MEDIA

Sorry, Can’t Let You in: Social Media Bounces Misinfo

Facebook, Twitter, and YouTube execs are nearing an all-crow diet. They had a hearty helping yesterday when the three platforms took down a video promoting dangerous and inaccurate information about the coronavirus...but not before it had racked up at least 20 million views. 

The details: The video came from Breitbart, a far-right news site. In it, people in lab coats claim the anti-malaria drug hydroxychloroquine can cure COVID-19 and “you don’t need masks.” A mountain of scientific evidence refutes those claims. 

• President Trump retweeted other accounts that posted clips of the video Monday night, before Twitter removed the videos.  
• Twitter placed restrictions on the account of Trump’s eldest son, Donald Trump Jr., for violating its COVID-19 misinformation policies by sharing the video. 

Zoom out: Social media companies claim they’re bending over backward to curb misinformation about the virus. But falsehoods keep going viral faster than the platforms can remove them. 

TRANSPORTATION

Nothing to Revel in Here

Electric moped service Revel is temporarily shutting down in NYC to review safety protocols following the death of a rider Tuesday morning. 

• Just 10 days after another rider’s death, the announcement is too little, too late for the company’s critics, who’ve been pushing for stricter safety rules. 

Since launching in 2018, Brooklyn-based Revel has expanded to Miami, Austin, Oakland, and D.C. The pandemic gave it a boost as users avoided public transportation, but with more riders…

• ...more problems. Revel’s facing at least a dozen lawsuits, including allegations of faulty mopeds. 

New Revel users have to watch a safety video, and bikes are equipped with two helmets (though Revel has no enforcement mechanism). After the death of the first rider, Revel said it would require in-app safety exams and suspend 2,000+ accounts for unsafe behavior.

Zoom out: E-scooters faced similar criticisms of putting pedestrians/riders in danger, but the real safety issue is motor vehicles. Despite five years of NYC Mayor Bill de Blasio’s “Vision Zero” program (meaning 0 traffic deaths), 221 people died in traffic crashes last year. 

GIVEAWAY

Encore! Encore!

You didn't ask for it, so we're going to do it: one more day to win a MacBook Pro. Don't waste this chance.  

The details: When you share the the Brew today, you’ll have a chance to win a brand new MacBook Pro for you and someone who signs up because of you.

Even more detail: Each time you refer a friend, family member, or coworker to Morning Brew, you'll get a ticket entered into a raffle for one of two MacBook Pros. 1 referral = 1 ticket.

• If you win a computer, we'll select someone you referred to win one, too. 

How to start: Click the share button below to grab your unique referral link. Then, tell everyone you know that they can 1) read business news that makes you smile even during a pandemic and 2) have a chance to win a new computer.

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WHAT ELSE IS BREWING

• Uber and Lyft drivers won a court victory in their quest to secure traditional unemployment benefits from NY state.
• CES, the biggest consumer electronics show in the world, canceled its in-person show in Vegas next year and will move forward digitally. 
• 3M and McDonald’s both said they got majorly dinged by the coronavirus last quarter.  
• MLB paused the Miami Marlins' season due to a coronavirus outbreak on the team. 
• AMC and Universal Pictures ended their feud, with AMC agreeing to a shorter theatrical window for Universal films.
• Patrick Mahomes is on a roll. After signing a mega-extension with the Chiefs, the 24-year-old QB joined the ownership group for the Kansas City Royals.

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EMMY TRIVIA

The list of 2020 Emmy nominees was released yesterday. What were the most-nominated shows? We'll give you the platforms/networks, and you have to figure out the shows. 

1. HBO (26 nominations)
2. Amazon (20)
3. Tie: Netflix, HBO (18 each) 
4. Tie: NBC, Pop TV, Disney+ (15 each) 

EMMY TRIVIA ANSWER

1. Watchmen
2. The Marvelous Mrs. Maisel
3. Ozark and Succession 
4. SNL, Schitt's Creek, and The Mandalorian