- __[Crypto](https://snacks.robinhood.com/newsletters/7JShb5XWJq91aGPuZDaZU2/articles/13qwbHppfBUjQj5YxqHiM6/):__ __Chia__, the "green" alternative to __Bitcoin__, just doubled its valuation and could IPO soon.
- __[Confirmed](https://open.spotify.com/episode/3qsMKlV4FMzcMnE8EQbNWl):__ __Amazon__ is buying __MGM__ for $8.5B, adding thousands of titles to Prime’s streaming library — streamers are (literally) [becoming](https://snacks.robinhood.com/newsletters/1N31BqWqFLT91MgZLUXNEq/articles/6ccELOc86lnzTpPcIn2vKo/) studios.  
- __[Anniversary](https://snacks.robinhood.com/newsletters/5FWjUZF34wCrp57CR8ykmX/articles/2HEWEQpeCQJy5XeMuzxH0v/):__ One year after George Floyd's murder, we looked at how companies have acted on $50B worth of racial equity pledges.


ICYMI

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__Long weekend on the beach...__ US air travel over Memorial Day weekend was [back](https://www.tsa.gov/coronavirus/passenger-throughput) to three-quarters of 2019 levels. The US economy is roaring back to life and is expected to grow 6.5% this year, its highest rate since 1984. Other rich countries are also rebounding: China’s economy expanded at a record 18.3% last quarter, and the UK is growing at the fastest rate since WWII. Driving recovery:

- __Vaccines:__ Wealthy countries poured billions into securing vaccines early for their citizens. In 2020, the US spent $12.4B on Operation Warp speed for vaccine development and delivery. Now [half](https://www.wsj.com/articles/half-of-u-s-adults-are-fully-vaccinated-11621974770) of US adults are fully vaxed.
- __Stimulus:__ Rich countries were able to afford stimulus programs to support their economies. The US spent a whopping $5T, more than any other country. 

__While rich countries rebound...__ poor nations are [falling](https://www.wsj.com/articles/covids-next-challenge-the-growing-divide-between-rich-and-poor-economies-11621343332?mod=hp_lead_pos4) further behind. Covid is surging, economies and health systems are crumbling, and poverty is increasing. The pandemic caused the first rise in extreme poverty  since the '90s. Emerging markets are on track to vaccinate  less than one-third of their citizens this year, versus 72% for developed nations. In Africa, just  0.4% of the 1.5B population has been fully vaxed. 

- __1.5M:__ The number of Covid deaths that have already been reported this year will soon surpass the 2020 tally of 1.8M. Latin America, Asia, and Africa account for 72% of deaths.
-  __34M__ people are on the brink of famine because of the pandemic, a record 35% annual increase, compounded by soaring food prices and weak tourism. 
- __100M:__ More than half of children in Latin America are out of school, and many are unlikely to return. Globally, 800M+ students don't have access to computers. 


Macro

__The Great Divide has long-term implications...__ Developing economies will take years to recover. Before the pandemic, the gap between the developing and the developed world was narrowing. The pandemic reversed that progress, deepening inequality. While the middle class barely budged in the US and in China, it's shrinking in developing countries. Looking ahead: more than half of low-income economies are at risk of fiscal crises, which could destabilize other regions. 


The Great Pandemic Divide: rich and poor economies are on diverging paths

__I like big budgets and I cannot lie....__ President Biden [proposed](https://www.npr.org/2021/05/28/1000843544/biden-proposes-a-huge-hike-in-government-spending-in-a-6-trillion-budget) a ginormous $6T budget for next fiscal year. It would push federal spending to its highest levels since WWII — and create deficits of at least $1.3T/year until 2030. The focus: infrastructure, public health, and education. Biden would nearly double the top capital gains tax rate on millionaires to 43.4%. TBD whether it'll fly in Congress, where Dems have a razor-slim majority.   

__Like a G6...__ more like G7. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. The G7 summit is set for June 11, but the group could greenlight a minimum global corporate tax rate before then. Last week, the US Treasury [offered](https://www.reuters.com/business/finance/us-treasury-backs-off-21-global-minimum-corporate-tax-rate-wants-least-15-2021-05-20/#:~:text=The%20U.S.%20Treasury%20Department%20on,minimum%20for%20U.S.%20multinational%20firms.) to accept a minimum corporate tax of 15%. A global minimum could allow G7 countries to [stay competitive](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) while raising taxes on corporate giants — key to funding Biden's budget proposal. 


Zoom Out

Stories we're watching...

__24/7 legging life...__ __Lululemon__ reports earnings on Thursday. Lulu found its zen in the WFH era thanks to the flexibility of its fits: athletic enough for a home yoga sesh, stylish enough for Whole Foods, and comfy enough for a Netflix binge. Direct-to-consumer revenue doubled in 2020 as Lulu's online sales dominated. We'll see how Lulu fared last quarter as the US reopened — retailers are [seeing](https://snacks.robinhood.com/newsletters/lmendgmwiqrFZ5v9KHvVo/articles/21BgOct7iwkh3NajATzc3g/) "revenge spending" on *non*-stretchy clothes. 

__A buzzy report...__ Canadian pot giant __Canopy Growth__ reports earnings today before markets open. 2020 was a breakout year for cannabis: legal sales across the US [hit](https://www.forbes.com/sites/willyakowicz/2021/03/03/us-cannabis-sales-hit-record-175-billion-as-americans-consume-more-marijuana-than-ever-before/?sh=3226b2af2bcf) a record $17.5B, up 46% from 2019. But Canopy's sales have also been growing thanks to "[beyond the leaf](https://snacks.robinhood.com/newsletters/3TPLYshPco821e473TlZwS/articles/3uw7AxyVGXLWeEmtpMqQbQ/)" initiatives. Think: CBD-infused sparkling water, CBD wrinkle cream, and a Martha Stewart partnership. We'll see how those newer products performed compared to the leaf.  


Highlights from last week...

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