🇺🇦 The impact of Russia sanctions

Refresh for updates... Days after Russia sent troops into Moscow-backed regions of Ukraine, the US has been upping its response by adding to targeted financial sanctions. Yesterday the US slapped sanctions on the company building Russia’s $11B Nord Stream 2 gas pipeline which spans from Russia to Germany after Germany halted its opening.

• Punishment: Western leaders are using the pipeline as leverage against Russia, since oil exports = 30% of Russia's economy.
• Risk: Russia supplies more than a third of the EU’s natural gas, and could retaliate by shutting off some of those fuel exports.
• Next: More sanctions seem likely. Late last night, President Biden said the US and its allies "will be imposing severe sanctions" on Russia, and will continue to provide support to Ukraine.

Companies are nervous... Most Western corporations don't have operations in Russia and Ukraine. But large multinationals that do are bracing for further sanctions, which Western leaders could leverage:

• Oil: BP, Exxon, and Shell all have significant investments in Russia that could be threatened by sanctions on Russia’s energy market.
• Banks: Chase and Citi, which do business in Russia, would have to cut ties with local lenders if broad financial sanctions happen. Cross-border payments could be frozen, which might mean lost $$$.
• Cars: Dodge and Jeep parent Stellantis says it would limit production in Russia if sanctions disrupt its operations.
• Beer: Danish brewer Carlsberg is Ukraine’s biggest beer seller, while Russia accounts for 10% of its sales. It has breweries in both countries and said it’s working on contingency plans in case sanctions disrupt beer-making.

Yeezy taught me… Kanye West isn't afraid to be vocal, whether it’s about his personal life or his moves to take on an "oppressive" music industry. The artist now known by “‘Ye’” live-streamed a “Donda Experience” event on Tuesday to promote his new “Donda 2” album. Ye’s making the record available exclusively on a physical $200 “Stem Player” device (think: a new-age iPod that looks like a smoke detector). Why: Ye wants to bypass streaming platforms like Apple, Amazon, Spotify, and YouTube. Kanye also tried to skip those streamers with his launch event:

• Ye originally said the event would stream only at IMAX theaters, and later only on the Stem site. But ultimately it streamed free on YouTube and Amazon’s Twitch (awk).
• The original Donda set a streaming record for Apple Music last year when it got 60M streams on day #1. Kanye says he turned down $100M from Apple for “Donda 2.”

The revolution will be streamed… but it’s less certain where. Many musicians have criticized streaming platforms for their payout structures: artists reportedly earn only about 10% of streaming revenue, so they have to hit 1M streams just to pocket $5K on Spotify, Apple, or Amazon. Several stars have attempted to ditch major platforms in a push to better control their earnings:

• Beyoncé made her breakthrough 2016 album “Lemonade” exclusive to Tidal, a platform formerly co-owned by her husband, Jay-Z, and his frenemy Kanye. But Tidal never caught on, and last year Square bought it.
• Taylor Swift has shunned both Apple Music and Spotify at various times, and re-recorded her “Red” album to claim streaming bucks back from labels.

• Payout: Lawmakers are finalizing a deal that would require pharma companies involved in the opioid epidemic to pay out $32B to victims — significantly less than the $246B Big Tobacco settlement of the ’90s.
• Reuse: Tired: Milkmen. Wired: BBQ boys. Shoppers at some Kroger-owned Fred Meyer stores can now buy sauce and shampoo in glass bottles and return them, thanks to recycling platform Loop.
• Network: LinkedIn is launching a podcast network to attract biz-friendly creators. The “networking network” plans to debut original pods, including one hosted by cofounder Reid Hoffman.
• Hacked: A cyberattack took down some Ukrainian government and bank websites, part of what the White House says is an attempt by Russia to destabilize Ukraine.
• DIY: Lowe's raised its sales forecast for the year as Americans take on larger home renovations. The big-box retailer is also partnering with Instacart for same-day delivery.

• Weekly jobless claims
• Earnings expected from: Intuit, Moderna, Anheuser-Busch InBev, Block, Keurig Dr Pepper, Coinbase, Monster Beverage, Planet Fitness, Etsy, and Discovery

Authors of this Snacks own shares of: Tesla, Amazon, Spotify, Apple, Block, Google, and Exxon

ID: 2052707