🤧 *Like when your coworker shows up to the office with the flu…*

Because crypto's so [interconnected](https://snacks.robinhood.com/newsletters/5oS3vfl3q3m34Ud64MuTOf/articles/6GVY28qbI5kcW4Y5gvzbIM/), one big incident (like a bankruptcy or hack) can act as a "contagion" spreading across the industry and getting others sick. Case in point: crypto lender BlockFi filed for [bankruptcy](https://www.wsj.com/articles/blockfi-files-for-bankruptcy-as-latest-crypto-casualty-11669649545) yesterday, citing "significant exposure" to the contagion of bankrupt exchange __FTX__.

DEFI(NE)

Heard on the Block: "contagion"

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Crypto

__’Tis the season to splurge…__ and inflation-stressed US shoppers still have the urge: shoppers spent a [record](https://www.cnbc.com/2022/11/26/black-friday-online-sales-top-9-billion-in-new-record.html) $9B online on Black Friday, and yesterday’s Cyber Monday sales were expected to hit a record $11B. Thanks partly to deep discounts, sales of __[Apple](https://robinhood.com/stocks/AAPL/)__ MacBooks, __Dyson__ gadgets, drones, and gaming consoles soared, while toy sales quadrupled. 

- __Mobile mania:__ Consumers did nearly half their Black Friday shopping from their phones — a new record.
- __Buy now, pay later__ payments rose 78% from the previous week as consumers continued to grapple with high prices.

__Holiday hype may not last…__ Strong post-Thanksgiving sales were a bright spot for retailers, which had given cloudy forecasts for this holiday season: __[Target](https://robinhood.com/stocks/TGT/)__, __[Macy’s](https://robinhood.com/stocks/M/)__, __[Nordstrom](https://robinhood.com/stocks/JWN/)__, and others reported slow sales in October and early November as consumer sentiment dipped. Now retailers are trying to unload their inventory — and stay rid of it:

- __Deeper discounts:__ This year the average Black Friday discount ticked up to 30%+, __[Salesforce](https://robinhood.com/stocks/CRM/)__ data showed. Translation: retailers want to ditch piles of summer goods.
- __Stricter returns:__ About 60% of retailers surveyed are adopting stricter policies to cut costs (think: fewer free returns).

The store might be empty, but the e-cart is full (Leonardo Munoz/Getty Images)

Click

__More sales ≠ more profits…__ because discounts mean slimmer margins. Despite this past week’s strong (cough, inflated) sales, analysts actually expect holiday sales to fall this season when adjusted for inflation — which would be the first holiday drop since 2009. That could spell tough times ahead for mega-retailers like Target and __[Walmart](https://robinhood.com/stocks/WMT/)__, which may end up with punier profits if they’re forced to keep slashing prices to move merch.

Black Friday sales break online records as Americans keep click-shopping while margins get slimmer

__Eruptions in the east…__ From Beijing to Shanghai, thousands of Chinese residents took to the streets (and social media) over the weekend to protest the country’s strict zero-Covid policies. Some called for President Xi to step down. China has extended lockdowns and tightened restrictions in certain areas after reporting 253K+ Covid cases over the past three weeks. Now things may be reaching a breaking point: 

- __On Thursday__ a fire in China's western city of Urumqi killed 10 people trapped in a high-rise building, which was under partial lockdown and reportedly [inaccessible](https://www.cnn.com/2022/11/26/asia/xinjiang-urumqi-china-lockdown-protests-intl-hnk/index.html) to first responders.
- __It’s a big deal:__ The deadly fire sparked mass protests to Xi’s authoritarian government on a scale not seen in decades.
- __In markets, stocks sank yesterday__ while oil fell to its lowest level since January, as investors feared that China’s domestic conflict could jolt the global economy.

__The Covid fallout…__ Earlier this month China said it would ease some quarantine rules to curb the economic damage. But its plans have been thwarted by outbreaks in 80 of its cities, which generate half of China’s GDP. It’s hurting the economy:

- __Last month,__ China’s retail spending shrank by 0.5% from a year ago, the first decline since May. Meanwhile, China's exports dropped for the first time since 2020.
- __China's economy is expected to__ grow about 3% this year — nearly half of the 5.5% expected in March.

Fallout

__China could be at a tipping point…__ While its strict Covid policy has crippled global supply chains and companies including Apple, it’s affecting Chinese citizens the most. Though some analysts say the unrest could cause Xi to crack down even further, others are optimistic that the protests could spur the government to unwind some of its policies.

China's “zero-Covid” protests send jitters through global markets as the second-largest economy falters

Black Friday sales break online records as shoppers click-splurge — but margins are slimmer

Dow Jones

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Bitcoin

Hawaii’s Mauna Loa volcano — the world’s largest active volcano — is erupting for the first time since 1984

📦 Black Friday goes cyber

Heard on the Block: "contagion"

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