🚗 Biden’s EV labor clash

Revvin’ the labor engine… Tensions are mounting between the 150K-member United Auto Workers union and the Detroit Three automakers (GM, Ford, Stellantis) as the parties negotiate a new contract. Central to the talks is the EV transition and what it means for workers — a conflict that could pit two of President Biden’s top priorities (green tech and pro-labor policy) against each other. The main issue: most EV-battery plants aren’t unionized. Meanwhile, Biden wants two-thirds of all new cars to be electric by 2032.

• Charging: Calling for a “just transition” to EVs, the UAW wants workers at EV plants to be protected by the same wage/safety standards enjoyed at union plants. Automakers want more flexibility to compete with nonunion rivals like Tesla and Toyota.

• Keyed up: Typically the UAW holds strikes against one company at a time, but this year it says a strike against all Big Three is possible. This week, UAW President Shawn Fain literally threw proposals from Jeep maker Stellantis into the trash.

It’s a stick(y) shift… The UAW has blasted the Biden admin over not tying its big EV incentives (like the $9.2B loan Ford received in June to build three US battery factories) to wages or working conditions. Pay at one Ohio EV-battery plant owned by GM and LG Energy starts at $16.50/hour, compared to the $32/hour workers earned at a traditional car plant in the area that closed in 2019.

Coach clutch & Jimmy Choos… a 2000s fashion icon. Yesterday, Coach parent Tapestry agreed to buy rival US luxury house Capri for $8.5B. Capri owns luxe names like Jimmy Choo, Versace, and Michael Kors. Tapestry’s collection includes designers like Stuart Weitzman, Kate Spade, and Coach. Tapestry and Capri earn about $12B in combined annual sales, and Coach alone hopes to bring in $8B by 2025. Now Tapestry wants to use its new bag of brands to go from fashion house to fashion mansion:

• #Synergy: By joining, both companies are expected to save $200M in operating and supply-chain costs within the next three years. Capri shares soared 55% after the announcement, while Tapestry plunged 16%.

Not your mom’s leather bag… For years, US luxury houses have lagged behind European rivals like LVMH, which owns pricier aspirational brands like Louis Vuitton, Fendi, and Dior. As luxury spending cools, brands are revamping to stay in vogue. Lately, Coach has shed its signature leather monogrammed bags for quirkier prints with sustainable materials (see: Coachtopia). Coach has also launched viral TikTok and IG campaigns. It’s working: In May, nearly half of Tapestry's 1.2M new North American customers were Zillennials. Coach is the #1 handbag for teens for the second year in a row, and Capri’s Michael Kors has been in the top three for years.

🪙 Coins… Bitstamp said it’ll suspend trading of several altcoins — including matic and solana — for its US customers. The exchange pointed a finger at regulatory uncertainty (see: SEC’s crypto crackdown). Speaking of…

⚖️ Judgy… The SEC said it would appeal last month’s ruling that Ripple’s XRP token was not a security when sold to the public. The decision was seen as a blow to the SEC’s position that nearly every crypto is a security (aka: under the regulator’s purview). 

📜 Policy… The Fed said it would more closely monitor banks’ crypto activities, including custody and stablecoin programs. Five months after the collapse of the crypto-friendly Silvergate bank, regulators continue to warn about crypto-related risks.

• Injection: Novo Nordisk said it’ll acquire obesity-drug maker Inversago Pharma for $1B. Novo Nordisk’s Ozempic and Wegovy (and Eli Lilly’s diabetes med, Mounjaro) have seen soaring sales as people use them to lose weight. 

• Unvest: Biden ordered a ban on new investments in key emerging tech in China, including chips and AI, piling on efforts to “de-risk” its relationship with the second-largest economy. 

• PopUp: Lyft plans to start showing ads in its app (images first, videos later), while adding more ad screens in cars. Uber’s been showing in-app ads since October and is targeting $1B in annual ad revenue by next year.

• UnMooch: Disney is following Netflix with plans to fight password-mooching and raise Disney+ and Hulu prices by up to 27%. Netflix gained nearly 6M quarterly subs following its account crackdown. 

• Add2Cart: Alibaba’s revenue jumped 14%, led by its core shopping biz at Tmall and Taobao. The “Amazon of China”’s affordable goods are appealing to Chinese consumers, who’ve cut back on spending.

• Producer Price Index

• Earnings expected from Spectrum Brands

Authors of this Snacks own shares of: Disney, GM, Tesla, and Uber