SPORTS

NBA Players Lead Strike for Racial Justice

It’s every basketball player’s dream to take the court in the NBA playoffs. But ahead of Game 5 of their first round matchup against the Orlando Magic yesterday, the Milwaukee Bucks decided there were more important issues than basketball—they decided not to play to protest a recent police shooting in Kenosha, WI, and larger issues of systemic racial injustice. 

• Following the Bucks' refusal to play, the NBA announced that all games were postponed for the night. 
• All teams in the WNBA and a few in MLB and MLS also decided not to play out of protest. Tennis star Naomi Osaka said she wouldn't compete in her tournament semifinal today. 

What they’re calling attention to: In Kenosha, a city 40 miles south of Milwaukee, a white police officer shot Jacob Blake, a Black man, in the back at least seven times on Sunday. Footage of the shooting went viral, sparking protests and violent clashes with police throughout the week. 

As remarkable as this decision is, it’s not out of nowhere

The NBA made racial injustice a focal point in its return, allowing players to put statements supporting social justice on the back of their jerseys and emblazoning the court with the “Black Lives Matter” slogan. But players and coaches increasingly expressed frustration and discomfort with the situation, questioning whether they were only distracting from these issues by playing the season in a “bubble” in Orlando.

• “I think coming here just took all the focal points off what the issues are,” Bucks guard George Hill said on Monday. 
• LA Clippers coach Doc Rivers addressed the incident in postgame comments on Tuesday, saying “It’s amazing why we keep loving this country, and this country does not love us back.” 

Bottom line: This historic decision will ripple across sports and all the industries in its orbit, from media to finance. After all, that’s the point. 

+ Watch: Chris Webber spoke from the heart on TNT. And here’s the full statement from the Bucks players.

WEATHER

Hurricane Laura Is Pummeling the Gulf Coast

Hurricane Laura, a massive and "extremely dangerous" Category 4 storm, was expected to make landfall on the Texas and Louisiana coasts early this morning. It's only the eighth Category 4+ storm to hit the Gulf Coast in modern history. 

• As you can see from the tweet above, the National Hurricane Center warned of an “unsurvivable” storm surge.

Authorities are working to limit the damage: 

• The American Red Cross said it sent over 600 workers to the states and provided shelter for more than 5,000 people Tuesday night. 
• The Louisiana Coastal Protection and Restoration Authority closed at least 410 floodgates, shut off pumps, and tried to plug gaps in the area’s many waterways. 

What it means for the economy: Gulf of Mexico drilling platforms account for as much as 17% of U.S. oil production. Laura is forecast to cause $25 billion in damage—at least $5 billion of that to refineries alone, per Enki Research. 

We’re thinking about all of our readers in the storm’s path. Stay safe.

ECONOMY

“Speeeeeech”—Everyone to Jerome Powell

Last year at the Fed’s economic policy symposium in Jackson Hole, WY, central bankers from around the world huddled up over U.S.-China trade tensions, Trump’s attacks on the Fed, and Brexit.

What about this year? First of all, no huddling. Second of all, no Teton views—everything is virtual. Third of all, the pandemic has turned things upside down and the entire financial world is looking to Fed Chair Jerome Powell to shepherd the economy back from the brink.

Powell’s giving a big speech today, one of the biggest of his tenure. In his remarks, he’ll provide an update on the two-year review the Fed has been conducting into its monetary policy. 

One word you’ll hear a lot is “inflation” (when prices rise and purchasing power falls). 

• The Fed has targeted 2% inflation, but we’ve come in below that figure for years. 
• Some analysts suspect the Fed will keep interest rates near zero for at least five years to accommodate more inflation. This would be a significant change in strategy.

+ Where to watch: The Kansas City Fed’s YouTube channel at 9:10am ET.

SPONSORED BY THE ASCENT

Nod If You Want to Save Money

Nod your head if you’ve seen the term “balance transfer” and had some questions. Like, “What the heck even is that?” Or, “Is that a gymnastics thing?”

Now nod again if you immediately put those questions into the “Things I’ll look into later” section of your brain—but never did.

Head bobbing? Us too. 

While it’s easy to feel like balance transfers are an art form practiced by mystic credit card gurus, the reality is they’re extremely simple. Apply for a card, transfer your balance, save on interest. That’s it. 

Save on interest you say...how much?

0% interest for 18 months with this card. Zero. Nada. Simply put, if you have $10k in debt, that’s $2,255 saved with this card. 

We bet you’re nodding for a different reason now. This card also has a $0 annual fee, and you can get a credit decision in under two minutes. Now even we’re nodding.

So to recap: apply, transfer, save. How? With this card.

TECH

Big Tech, Meet Bigger Tech

Facebook is peeved at Apple right now, and it’s not because it was forced to listen to an unwanted U2 album. In a blog post yesterday, FB explained how Apple’s upcoming iOS 14 contains a privacy update that will make it much harder for Facebook and lots of smaller companies to collect the user data fueling some of their targeted ad efforts. 

Let’s talk specifics

Facebook’s Audience Network business, which allows developers to serve targeted ads to their users using Facebook's data but outside Facebook itself, uses an Apple tool called “identifier for advertisers,” or IDFA. Companies use these identifiers to track user activity across apps. 

Apple’s iOS update will now explicitly ask users to opt in to that sort of tracking, whereas before it was "opt out." Facebook's read the academic literature—it knows opting in is a hurdle most won't climb. 

So, will Facebook be hurt? Maybe, but no one is sure how badly considering it doesn’t report how large Audience Network revenue is. Investors are brushing it off; shares gained 8% to a record high. 

FITNESS

There Is a Situation Developing in New Jersey Gyms

A New Jersey government official confirmed that gyms in the state would be allowed to reopen September 1...exactly one day before NYC mayor Bill De Blasio is allowing gyms to resume operations in the city. 

Why it’s a big deal

NJ gym owners have been publicly arm-wrestling with Gov. Phil Murphy over restrictions on non-essential businesses since March, saying the mandates infringed on their constitutional rights. 

• In NYC, it’s chests before tests: Gyms are set to open eight days before the proposed start date for schools in the city. 

Zoom out: With gyms closed for months, home fitness boomed. Yesterday, Dick’s Sporting Goods said online sales jumped 194% in Q2 and same-store sales rose over 20%. And anyone who's used a milk jug as a dumbbell knows that fitness equipment is literally flying off the shelves. “If you’re going to walk in our store, it’s still going to look like our fitness business is really depleted,” CEO Ed Stack said.

WHAT ELSE IS BREWING

• Moderna said its potential coronavirus vaccine generated immune responses in elderly patients in a small study.
• A 15-minute COVID-19 test produced by Abbott was granted emergency use authorization by the FDA. It costs $5. 
• Higher-ups in the Trump administration reportedly instructed the CDC to narrow its COVID-19 testing guidelines this week. U.S. testing czar Admiral Brett M. Giroir said the new guidelines were the CDC's decision alone. 
• Salesforce stock had its best day ever (up 26%) following a bullish earnings report and news it’s going to be included in the Dow. It's still reportedly planning to cut 1,000 jobs.
• New York City's MTA warned it could cut service by 40% if the federal government doesn't provide $12 billion in emergency funds.
• Fall Guys is now the most downloaded PlayStation Plus title ever. Any Brew readers play?

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BREW'S BETS

Almost like traveling: Check out photo galleries from each U.S. state (updated every Sunday), the eight most wish-listed remote Airbnbs, and these 60-second interactive city tours. 

What are cryptocurrencies? Let the IMF (try to) teach you. 

WFH ambiance: In our quarantine recommendation newsletter, The Essentials, our writers have recommended listening to…

• A crackling campfire
• The sound of bustling coworkers
• Your own customized white noise mix
• Radiooooo

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FROM THE CREW

Brew's Bookshelf

Every other Thursday, we bring you a few of our favorite business-related reads. This week is all about fascinating company histories. 

• Super Pumped by NYT journalist Mike Isaac spills all the scandalous details of Uber’s ruthless climb to the top and the excesses of Silicon Valley startup culture. 
• Franchise by Georgetown Prof. Marcia Chatelain examines the legacy of McDonald’s in Black communities in the wake of the civil rights movement. 
• Bitcoin Billionaires by Ben Mezrich tells the story of how Cameron and Tyler Winklevoss, fresh off a contentious settlement with Facebook, heard about bitcoin on a beach in Ibiza then went on to make it big in crypto. 

Don’t forget to check out our full list of Bookshelf recommendations.

SUBWAY TRIVIA

Let's see how well you know your subway lines. We’ll give you four stations in a city’s transit system, and you have to name the city.

1. Gallery PI-Chinatown, Foggy Bottom-GWU, Farragut North, Columbia Heights
2. Alewife, Longwood, Prudential, Back Bay 
3. Pulaski, Halsted, Midway, Washington/Wabash
4. Giza, El-Demerdash, St. Teresa, Sadat
5. Gasan Digital Complex, Samseong, Gyeongbokgung, Kwangwoon University

SUBWAY TRIVIA ANSWER

1. Washington, D.C.
2. Boston
3. Chicago
4. Cairo, Egypt
5. Seoul, South Korea