__A plush bed for Poochie...__ Shares of __[Bed Bath & Beyond](https://robinhood.com/stocks/BBBY)__ soared as much as 86% yesterday after __[Chewy](https://robinhood.com/stocks/CHWY)__ founder Ryan Cohen [disclosed](https://www.wsj.com/articles/bed-bath-beyond-goes-to-the-moon-11646670877) a nearly 10% stake in the battered housewares chain. Cohen’s an activist investor who made his first fortune selling his pet-food biz Chewy to __PetSmart__ for a reported $3.4B. He later became chair of __[GameStop’s](https://robinhood.com/stocks/GME)__ board, promising an ecommerce turnaround. Now he’s eying BB&B:

- __Just don’t touch the coupons:__ In a [letter](https://s.wsj.net/public/resources/documents/bbbletter030622.pdf), Cohen told BB&B’s board to hone its focus, pay execs in stock to spur growth, think about spinning off its fast-growing Buy Buy Baby biz, and consider selling to a private-equity buyer.
- __Hanging on by a Wamsutta thread:__ Despite a pandemic bump, BB&B’s stock is down 70% over the past decade as it’s faced steep competition from __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Walmart](https://robinhood.com/stocks/WMT)__, and __[Target](https://robinhood.com/stocks/TGT)__ (while the average US stock has more than doubled).

__If this all sounds familiar…__ Cohen sent GameStop’s board a similar letter in November 2020, prompting its stock to skyrocket 27X in a __Reddit__-powered investment blitz two months later. When Cohen grabbed the reins shortly after, he promised to quickly expand into ecommerce. But that hasn’t happened.

 [Noam Galai/Getty Images]

Towels

__It’s a big test for the meme-funding model…__ By pressuring BB&B to reorganize, Cohen’s jumped into a second turnaround project before completing his first: GameStop’s revenue and profit have remained nearly flat under his command. But since GS shares are still up 8X since Cohen’s original letter, the company’s raised $1.6B by selling new shares to pay off all its debts. And if Cohen succeeds in revamping GameStop’s sales, duvet covers could be next.

Bed Bath & Beyond shares soar on word that GameStop’s Ryan Cohen has a big stake — and bigger demands

__Waiting 10 seconds to skip…__ as your kid rewatches “Encanto” for the third time. __[Disney’s](https://robinhood.com/stocks/DIS)__ aiming for a cheaper subscription plan for its Disney+ streaming service (to debut later this year). The pricing is TBD, but it’ll be less than its standard $8/[month](https://www.businessinsider.com/guides/tech/disney-plus-price) (or $80 a year) option. There’s just one catch: commercials. Disney already has ad-supported versions for its Hulu and ESPN+ plans, but hasn’t added commercials to its namesake streamer. Here’s why it’s doing it now:

- __Growth:__ Disney execs hope that a cheaper streaming option will help it reach 230M D+ [subscribers](https://www.cnbc.com/2022/02/09/disney-dis-fiscal-q1-2022-earnings.html) by 2024. Since its launch, in 2019, Disney+ has added 130M subscribers (FYI: __[Netflix](https://robinhood.com/stocks/NFLX)__ has 220M). 
- __Profits:__ Disney+ still isn’t profitable as a stand-alone segment, probably because it’s splurging so much on original content and keeping prices low to drive subs. The Mouse House is boosting [spending](https://variety.com/2022/biz/news/disney-plus-subscribers-2021-earnings-1235175715/) by up to $1B on new programming *this quarter* alone.

__If you can stream it, you can do it…__ Ad-supported services use a model that's helped make the TV biz profitable since forever. That’s why streaming rivals like __[Comcast’s](https://robinhood.com/stocks/CMCSA)__ Peacock and __WarnerMedia’s__ HBO Max also offer cheaper commercials-based plans. Unlike streaming pure play Netflix, OG media conglomerates have to justify spending extra $$ on streaming costs as they balance more profitable parts of their biz (think: amusement parks and internet service).

Skip

__Streaming is starting to look a lot like cable…__ bundles, ads, and all. The streaming market is saturated, and it’s a fight for every new sub. (Last year, the average number of subs per user fell for the first time.) Streamers are trying to sweeten their value props by offering cheaper ad-filled tiers and bundles (think: Disney+, Hulu, ESPN+) but risk resurrecting a long-hated biz model along the way.

Disney+ is rolling out an ad-supported tier as streamers start adopting cable-y habits

Chewy founder Ryan Cohen sets his sights on Bed Bath & Beyond, but isn’t done with GameStop

Dow Jones

S&P 500

Nasdaq

Bitcoin

Closing the gender gap for investments in women-led businesses could boost global GDP by $2T

🛁 Bed Bath & waaaay Beyond

__Low energy, high stakes...__ Western countries have [piled on](https://snacks.robinhood.com/newsletters/5Nw8NTMF1A8EDOwQ12Yygy/articles/4CkWRZ80CoBHeTuvsDWgxr/) financial sanctions to punish Russia. One thing they haven’t touched: *energy exports*. Oil makes up a third of Russia’s economy, and the West is still buying its oil and gas. Here’s why:

- __Europe__ depends on Russia for [41%](https://www.cnbc.com/2022/02/24/why-europe-depends-on-russia-for-natural-gas.html) of its gas supply. The EU has focused on transitioning to renewables like hydro, wind, and solar — but those cover less than a fifth of its energy needs.
- __The US__ is the world's top oil producer ([one-fifth](https://www.eia.gov/tools/faqs/faq.php?id=709&t=6) of global supply), and [doesn't](https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php) get much from Russia. But it’s also the [largest](https://www.eia.gov/tools/faqs/faq.php?id=709&t=6) *oil consumer*, using up even more than it produces (think: long drives, big trucks, blasting A/C).

__Declaration of (energy) independence...__ So far, sanctions haven't slowed Russia's attack. But if the West stopped buying Russian fuel, it could crush Russia’s economy. The problem: the West can't sanction Russian energy without *also* crushing Europe’s supply. Germany, which is most dependent on Russia, [said](https://capx.co/how-the-battle-for-energy-independence-was-lost/) its lights “will go out.” In the US, gas prices could soar even higher. Cue:

- __The West’s focus is shifting to energy independence__ — when a country produces enough fuel to meet its own needs and eliminates foreign reliance. 
- __The EU__ is [set to unveil](https://www.economist.com/business/2022/03/05/europe-reconsiders-its-energy-future) a proposal to become energy independent (read: no Putin necessary). Long term, it could mean dramatically expanding renewables and zero-emission sources like nuclear and hydrogen. 
- __The US__ can produce more, but President Biden’s climate policies and oil giants’ [reluctance](https://www.cnn.com/2022/03/02/energy/us-oil-production/index.html) to boost supply have pushed oil production [below](https://www.cnn.com/2022/03/02/energy/us-oil-production/index.html) 2019 levels. GOP leaders are [urging](https://abcnews.go.com/Politics/wireStory/gop-end-russian-oil-imports-us-boost-production-83207789) Biden to drill, but nuclear and renewables are more sustainable.

The Three Mile Island nuclear plant, which closed in 2019 (Andrew Caballero-Reynolds/AFP via Getty Images)

Fuel

__Crisis moments accelerate change…__ as we saw during the pandemic. We’re still in the thick of this crisis, but one thing’s becoming clear: it could speed an energy revolution. Russia’s aggression is turning energy independence into a national-security imperative. Boosting renewable and nuclear energy can help get us there, but will take years of investment: fossil fuels still power [60%](https://www.eia.gov/tools/faqs/faq.php?id=427&t=3) of the US’s electricity.

Western leaders underscore the urgency of energy independence as Russia’s war escalates

__Grounded...__ The West is squeezing Russia's [$19B](https://www.iata.org/en/iata-repository/publications/economic-reports/russian-federation--value-of-aviation/) airline industry as sanctions jolt the economy. Last week, European __[Airbus](https://robinhood.com/stocks/EADSY)__ and American __[Boeing](https://robinhood.com/stocks/BA)__ [stopped](https://www.theguardian.com/business/2022/mar/02/airbus-and-boeing-to-halt-supply-of-aircraft-parts-to-russian-airlines) supplying parts to Russian planes. Meanwhile, global ticket-booking firm __Sabre__ [cut off](https://www.cnn.com/travel/article/russian-airline-aeroflot-sabre-reservations/index.html) __Aeroflot__ — Russia's national airline — crippling its ability to sell seats. Biden has [banned](https://www.axios.com/russian-flights-ban-us-airspace-86138fcb-c658-4e13-af12-2facbfe6adb3.html) Russian flights from entering US airspace, and US airlines are rerouting around Russia’s massive airspace. But travelers could pay the price: dodging Russia on long-haul flights (think: NYC to Seoul) eats up more jet fuel and could [hike](https://www.usatoday.com/story/travel/airline-news/2022/03/01/how-russia-ukraine-conflict-impacts-air-travel/6978208001/) ticket prices.

__The Great Wait is over…__ and your boss wants you to try the new office snacks. __[Meta](https://robinhood.com/stocks/META)__, __[Wells Fargo](https://robinhood.com/stocks/WFC)__, and __[Cisco](https://robinhood.com/stocks/CSCO)__ are [reopening](https://www.wsj.com/articles/companies-see-an-opening-for-office-reopening-11646130602) offices this month after Delta and Omicron delays. Service workers never got the WFH experience, but most white-collar workers who did have [little](https://www.cnn.com/2022/02/16/success/pew-survey-covid-affect-on-work-from-home/index.html) desire to go back to IRL offices: so companies are dangling revamped spaces to lure them. __[Dropbox](https://robinhood.com/stocks/DBX)__ ditched “offices” for open-concept “[studios](https://www.wsj.com/articles/tech-companies-reopen-their-offices-facebook-google-11646365155).” Another tactic: __[Google’s](https://robinhood.com/stocks/GOOGL)__ asking staff to come in three days a week, after giving everyone a $1.6K bonus. Companies [expect](https://www.wsj.com/articles/boss-get-remote-workers-back-office-11635531138) most of their employees to be (partly) in offices by summer. 

Zoom Out

Stories we’re watching

__March Madness gets influencer-ized…__ Competition on the b-ball court is dribbling into competition in your Insta feed. Thanks to last year’s Supreme Court [ruling](https://www.si.com/nfl/2021/06/29/business-of-football-supreme-court-unanimous-ruling), players can now earn $$ from sponsored posts during this month’s NCAA tourney. Some have already scored $2M sponsor deals. By “Selection Sunday,” you’ll see hundreds of college-hoop stars doing #sponcon for brands like __Dunkin__ and __Gatorade__. It’s a slam dunk for female players, who typically have larger social followings: female NCAA players have raked in more sponsor [cash](https://opendorse.com/nil-insights/?mc_cid=14396ad8fa&mc_eid=4bf9b1df67) than men.

__Short circuit...__ Investors are looking for the next EV maker to take on __[Tesla](https://robinhood.com/stocks/TSLA)__, but production snafus and chip shortages are making it tough. China's EV leader, __[Nio](https://robinhood.com/stocks/NIO)__, shipped 6K of its sleek Tron-esque cars last month, up [10%](https://ir.nio.com/news-events/news-releases/news-release-details/nio-inc-provides-february-2022-delivery-update) from a year ago, but behind its January deliveries. US-based __[Rivian](https://robinhood.com/stocks/RIVN)__, which went public in November, blamed #flation for jacking up the price of its preordered e-pickups by $20K ([update](https://www.cnbc.com/2022/03/03/rivian-rolls-back-big-price-increases-on-pre-orders-after-customer-backlash.html): the company reversed it). We’ll see how the customer backlash and supply-chain snarls could hit the Tesla rivals when they report this week.

Events

Coming up this week

- __[Coin-flict](https://snacks.robinhood.com/newsletters/5Vn4JIrzX3BghXzZtuksAR/articles/3BQ4iVOWQlAmZ3YWvjH8AB/):__ The war in Ukraine has boosted crypto demand across the board, causing [bitcoin](https://robinhood.com/crypto/BTC) price swings and renewing calls for more crypto rules. Ukraine has raised over $35M in crypto aid from a wide array of donors.
- __[Yacht-](https://snacks.robinhood.com/newsletters/1vyj6JcFa6X4qlpX8UnGzW/articles/7pSylIPgsKJnndV6dB1bNt/)onomics:__ To crank up pressure on Putin, the US and allies are targeting Russian oligarchs by going after their superyachts. So far, the politically connected oligarchs have lost at least $83B because of sanctions.
- __[She-cession](https://snacks.robinhood.com/newsletters/1vyj6JcFa6X4qlpX8UnGzW/articles/YxobtPSBOs1XAr71CEDda/):__ More women stopped working during Covid than men, even though recessions usually hit men harder. Unemployment has fallen below 4%, from a 15% peak in 2020, but women’s jobs are recovering more slowly.

ICYMI

Last week's highlights

The last day that all of us were on Earth together was October 31, 2000. At least one person has been aboard the International Space Station ever since 

⚡What Russian oil means for energy independence

__Rough seas for Putin’s pals…__ First, Western governments went after Russia’s banks — now they’re [targeting](https://www.nytimes.com/2022/03/02/us/politics/russian-oligarchs-justice-department.html) its oligarchs. Refresher: oligarchs are wealthy individuals with outsized influence over government. Post-Soviet oligarchs have amassed staggering fortunes during the privatization of Russia’s economy by doing favors for politicians like President Putin. By going after oligarchs, Western countries hope to pressure Putin to end the war in Ukraine:

- __Seize and freeze:__ President Biden [launched](https://www.nytimes.com/2022/03/02/us/politics/russian-oligarchs-justice-department.html) “Task Force KleptoCapture” (real name) to confiscate Russian oligarchs’ yachts, jets, and pricey pads. European authorities have already seized some big boats, like the 280-foot Amore Vero owned by a Putin confidant.
- __Cut and run:__ Some oligarchs are [sailing](https://www.cnn.com/2022/03/02/business/russian-oligarchs-sanctions-assets/index.html) for safer harbors, but even formerly friendly destinations like Monaco have adopted sanctions. Others are trying to sell: Roman Abramovich put Chelsea FC up for [sale](https://www.nytimes.com/2022/03/02/sports/soccer/chelsea-roman-abramovich.html). FYI: He’s one of a handful of oligarchs who’ve broken rank by publicly [criticizing](https://www.cnn.com/2022/02/28/business/oligarchs-russia-ukraine-fridman-deripaska/index.html) the war.

__Yacht-onomics…__ Putin has spent years sanction-proofing Russia for this day. Moscow stockpiled currency, bought Chinese bonds, and ditched Western trade partners to [fortify](https://www.nytimes.com/2022/02/03/world/europe/putin-sanctions-proofing.html) Russia’s economy. Oligarchs did their part: experts say Putin and his cronies have personally [stashed](https://qz.com/2136067/where-are-russias-oligarchs-hiding-their-wealth/?utm_source=email&utm_medium=daily-brief&utm_content=ade3ed45-9ade-11ec-a5d2-be11b8650b3a) at least $250B of dark money outside Russia. But their laundered loot is hidden in plain sight: $1B+ yachts and Manhattan penthouses aren’t exactly subtle.

Roman Abramovich's superyacht, Solaris, in Barcelona on Tuesday (David Ramos/Getty Images)

Klepto

__Keep your enemies' friends close…__ So far, government sanctions and international shaming haven’t stopped Putin from escalating his aggression against Ukrainians. Western leaders hope that going after his influential friends could help turn the screws. Russian oligarchs have already [lost](https://www.bloomberg.com/news/articles/2022-02-28/russian-billionaires-count-cost-of-83-billion-wealth-wipeout?sref=q3KSFp38) $83B because of sanctions — and that’s not counting the yachts. And it’s just beginning: the US is [said to be](https://www.reuters.com/world/us-preparing-expanded-sanctions-against-russian-elite-families-wapost-2022-03-02/) expanding sanctions against oligarchs and the businesses that made them rich.

To crank up pressure on Putin, Western powers target Russian oligarchs — and their superyachts

__Let this sink in…__ After two years of a pandemic, women have still not fully recovered from the labor market pain of 2020. While the US added a record [6.4M](https://www.washingtonpost.com/business/2022/01/08/2021-shattered-records-but/) jobs last year, and the overall unemployment rate is down to [4%](https://www.bls.gov/news.release/empsit.nr0.htm), men have dominated new hirings. Of the jobs gained [in January](https://www.phillyvoice.com/women-jobs-recovery-covid-19-pandemic-us-labor-department-report/#:~:text=Of%20the%20jobs%20gained%20in,had%20been%20held%20by%20women.), women filled 40%. This morning’s jobs report will offer fresh insight into how women are rebounding from the [she-cession](https://snacks.robinhood.com/newsletters/4FiPxYkU4FGEKs36P1LNJJ/articles/4kp1BqJkQIJqk2dJ3iMTuU/).

- __In the US: 2.5M+__ women dropped out of the labor force between February 2020 and January 2021, versus [1.8M](https://nwlc.org/wp-content/uploads/2021/01/December-Jobs-Day.pdf) men. That’s unusual, because men typically fare worse during recessions.
- __Globally: 64M+__ women lost their jobs in 2020, which resulted in $800B in lost income.

__Why women left…__ Women bore the brunt of childcare when schools closed, [which hurt](https://journals.sagepub.com/doi/full/10.1177/23780231211038783) their careers, relationships, and well-being. Women are also [overrepresented](https://fas.org/sgp/crs/misc/R46632.pdf) in jobs with some of the highest [burnout rates](https://www.cnbc.com/2022/02/28/black-women-were-hit-especially-hard-by-pandemic-job-losses-and-recovery-is-lagging.html), including high-contact industries like healthcare, education, and retail. Ultimately, many mothers were forced to decide between being primary caregivers or full-time employees. And while schools have reopened, there’s still a [childcare crisis](https://www.cnbc.com/2021/12/03/help-wanted-americas-childcare-crisis-fueled-by-worker-shortages-in-daycare-centers.html) keeping women out of the resurgent labor market:

- 16K licensed childcare facilities [permanently](https://www.childcareaware.org/demanding-change-repairing-our-child-care-system/) closed between December 2019 and March 2021, while childcare costs have increased by [41%](https://fortune.com/2022/01/28/the-cost-of-child-care-in-the-us-is-rising/) since the pandemic began.
- American childcare workers — [95%](https://www.npr.org/sections/coronavirus-live-updates/2020/08/19/903913689/1-in-5-child-care-jobs-were-lost-since-pandemic-started-women-are-affected-most) of whom are women — earn just [$12/hr](https://www.bls.gov/ooh/personal-care-and-service/childcare-workers.htm) on average, which makes recruitment and retention challenging. 

__The labor market is still healing…__ especially for women. Biden’s [$1.2T](https://time.com/6089649/infrastructure-bill-industries-benefit/) infrastructure bill aims to pump money into industries like construction and transportation, but those sectors have traditionally employed few women. [Some say](https://fortune.com/2021/02/18/returnships-women-unemployment-back-to-work/) minimizing bias against workers who take career breaks for childcare could help women return to the labor pool.

The labor market is resurging — but millions of women are still recovering from the “she-cession”

To pressure Putin, Western powers target Russian oligarchs and their yachts

People who are “tetrachromatic” can see 100X as many colors as the average person

🛥️ Oligarchs and yacht-onomics

__The first big crypto conflict…__ The war in Ukraine has [boosted](https://www.wsj.com/articles/bitcoin-demand-booms-in-ukraine-and-russia-11646165756) demand for crypto on both sides of the fight, helping to lift the price of __[Bitcoin](https://robinhood.com/crypto/BTC)__ nearly 25% since the start of Russia’s invasion — and thrusting decentralized finance (DeFi) into a major military conflict. How crypto is impacting the war so far:

- __Crowdfunded resistance:__ Ukraine has [raised](https://www.cnbc.com/2022/03/02/ukraine-dogecoin-other-cryptocurrencies-accepted-for-donations.html) over $35M in crypto to finance its ops. After Ukraine’s deputy PM [tweeted](https://twitter.com/FedorovMykhailo/status/1497549813205848068) a link to a digital wallet, donations poured in from around the world. Still, Ukraine’s crypto war chest is tiny compared to the $270M it’s raised from war bonds.
- __Sanction resistance:__ Russia can also use crypto to blunt the damage of sanctions, since crypto transactions are harder to block. Russia’s access to global banking is mostly frozen and its currency is nearly worthless — but it can still spend bitcoin.
- __Exchange resistance:__ Ukraine officials asked crypto exchanges to bar all Russian users from their platforms, but __[Coinbase](https://robinhood.com/stocks/COIN)__, __Kraken__, and __Binance__ refused to pull the plug. Kraken’s CEO [said](https://www.bbc.com/news/technology-60576373) a ban would contradict bitcoin’s “libertarian values.”

__A geopolitical X factor…__ Russia wouldn’t be the first country to use crypto to get around sanctions: __Iran__ and __North Korea__ have reportedly [deployed](https://www.nytimes.com/2022/02/23/business/russia-sanctions-cryptocurrency.html?partner=slack&smid=sl-share) crypto after being frozen out of global markets. Analysts are concerned Russia and China could do the same, and both countries are also rolling out state-sponsored digital currencies.

ATMs for bitcoin and banks in Istanbul [Chris McGrath/Getty Images]

DeFi

__Crypto could reshape war…__ and war could reshape crypto. Digital currencies may change how wars are fought and financed by providing a new way to move money quickly and securely. But by the same (decentralized) token, crypto’s influence in Russia’s war on Ukraine could push lawmakers to accelerate plans to crack down. US regulators plan to clarify their crypto rules sometime this year.

Crypto becomes a new tool in war as Ukraine and Russia leverage digital currencies

__Break out the Batmobile…__ If you want to catch Robert Pattinson in tights on opening night, it could cost extra. __[AMC's](https://robinhood.com/stocks/AMC)__ testing a new pricing strategy by raising the cost of tickets for popular movies, like __Warner's__ "The Batman'' (hits theaters Friday). In LA and NYC, ticket prices are running about a buck more, but that hasn’t dampened demand:

- __*Batty* expectations:__ “The Batman” could be the first blockbuster of the year: it’s tracking for a $245M+ worldwide open, and not a moment too soon for chains like AMC.

__Strategy shift...__ During the pandemic, some studios have embraced a new way to reach viewers at home (think: same-day streaming releases). That’s had mixed results: Warner's "Dune" pulled in $400M at the global box office. But the studio’s other day-and-date releases, like “[In the Heights](https://www.latimes.com/entertainment-arts/business/newsletter/2021-06-15/in-the-heights-box-office-the-wide-shot)” and “[Matrix 4,](https://www.forbes.com/sites/scottmendelson/2021/12/28/why-the-matrix-resurrections-was-a-box-office-disappointment/?sh=5fcfa7ea2562)” bombed on the big screen. With North American ticket sales still down 60% from pre-Covid levels, theater chains are getting creative:

- __Lux-ification:__ reclining seats, contactless concessions, and 4D experiences are some ways theaters are enticing people back. Pricier seats for popular showings of studio tentpoles could add to the premium feel.

- __BTW:__ AMC is already charging European theatergoers extra for [prime](https://nypost.com/2022/03/02/why-amc-is-charging-higher-prices-for-the-batman-tickets/) theater seats (think: middle, not too close).

__Movie tix are getting “premium-ized”...__ Movie tickets are famously uniform: you’ll pay the same to see a $200M Marvel blockbuster as a $2M indie flick. And dynamic pricing has long been a popular model in other industries, from flights to hotels to concerts. Whether you’re booking a last-minute red-eye or front-row seats to a J. Biebs show, high demand = higher cost. But hiking prices could jeopardize attendance — at a time when theaters are struggling to fill seats.

AMC will charge more for blockbusters as the struggling movie chain entertains “variable pricing”

Crypto becomes a new tool in war as both sides leverage digital currencies

Reported Covid cases in the US have fallen by 96% from their peak in mid-January. Globally, reported cases have dropped by 16% in the past week

🔑 The first crypto conflict

__Corporate exodus…__ A growing list of Western companies are responding to the war in Ukraine, from offering gestures of goodwill to cutting business ties with Russia. Yesterday, __[Visa](https://robinhood.com/stocks/V)__ and __[MasterCard](https://robinhood.com/stocks/MA)__ blocked Russian banks from using their payment systems, to comply with US sanctions that restrict domestic companies from doing biz with certain Russian firms. But not every retaliatory move has been about sanctions:

- __Giving shelter:__ __[Airbnb](https://robinhood.com/stocks/ABNB)__ is offering free housing for up to 100K Ukrainian refugees with the help of volunteer hosts in neighboring countries. Meanwhile, Elon Musk shipped __SpaceX__ Starlink satellites to help keep Ukraine's internet online.
- __Sending a message:__ __[Disney](https://robinhood.com/stocks/DIS)__, __[Paramount](https://robinhood.com/stocks/PARA)__, and __Warner Bros.__ agreed to immediately halt movie [releases](https://www.bbc.com/news/business-60566286#:~:text=%22Given%20the%20unprovoked%20invasion%20of,other%20humanitarian%20assistance%20to%20refugees%22.) in Russia (no “Batman” premiere this weekend in Moscow). On the tech front, __[Microsoft](https://robinhood.com/stocks/MSFT)__ pulled Kremlin-backed news outlets from its app store, while __[Google](https://robinhood.com/stocks/GOOGL)__ and __[Meta](https://robinhood.com/stocks/META)__ [blocked](https://wgntv.com/news/social-media-platforms-prevent-russian-backed-media-from-earning-ad-revenue/) Russia’s state-media outlets from monetizing on their platforms.
- __Cutting bait:__ __[BP](https://robinhood.com/stocks/BP)__ dumped a near 20% stake in its Russia-related energy biz, while __[Shell](https://robinhood.com/stocks/SHEL)__ ditched its Russian oil ventures, including its stake in the Nord Stream 2 pipeline. __[Uber’s](https://robinhood.com/stocks/UBER)__ looking to sell its remaining $800M stake in Russian ride-hailer __[Yandex](https://robinhood.com/stocks/YNDX)__, and __[Apple](https://robinhood.com/stocks/AAPL)__ has stopped selling all its products in Russia.

A man wearing a Ukrainian flag ribbon at the Mobile World Congress in Barcelona on Tuesday [AFP via Getty]

Squeeze

__Corporate resistance can take time to unfold…__ Corporate boards worldwide are calculating the risk vs. reward of doing biz in or with Russia. While many companies want to pressure Putin to stop the war, ditching operations in a major country isn’t always easy — and could also hurt share prices. That could be partly why some US companies with high exposure in Russia haven’t acted yet. A tragic consequence: some corporate actions are hurting innocent Eastern Europeans now. 

From BP to Disney, Western companies are flexing “soft power” by cutting ties with Russia

__Just *don’t* do it…__ Retailers like __[Foot Locker](https://robinhood.com/stocks/FL)__ need brands like __[Nike](https://robinhood.com/stocks/NKE)__. But brands don’t always share the love. Foot Locker shares have fallen nearly 30% since last Thursday. That’s when the sneaker retailer said it [expected](https://www.cnbc.com/2022/02/25/foot-locker-fl-reports-q4-2021-earnings.html) sales to slip this year as top vendor Nike sells fewer shoes in its stores. The sneaker giant says it won’t fully abandon Foot Locker, but will reduce inventory to ensure scarcity and sell more top kicks directly to buyers. 

- __Big shoes to fill:__ Foot Locker [expects](https://www.bloomberg.com/opinion/articles/2022-03-01/nike-should-be-the-next-luxury-fashion-house?sref=q3KSFp38) Nike sales to make up 60% of total sales this year, down from 70% last year and 75% in 2020. 
- __To make up for lost Nike $$,__ Foot Locker plans to stock more __[Adidas](https://robinhood.com/stocks/ADDYY)__, __Puma__, __New Balance__, and __[Crocs](https://robinhood.com/stocks/CROX)__.

__Kicked to the curb…__ Nike makes twice as much profit selling shoes directly as it does wholesale, so it’s not surprising that it’s focusing less on retailers. By investing in its own stores and apps, Nike has more than [doubled](https://www.retaildive.com/news/how-nike-is-using-dtc-and-data-to-expand-its-empire/596602/) its D2C sales since 2011, to 35% last year. At the same time, Nike has been unlacing retailer relationships:

- __Nike stopped selling__ its shoes on __[Amazon](https://robinhood.com/stocks/AMZN)__ in 2019 to push customers to its sites, and ended partnerships with __DSW__, __Zappos__, __[Dillard’s](https://robinhood.com/stocks/DDS)__, and __[Urban Outfitters](https://robinhood.com/stocks/URBN)__.
- __Other shoe giants__ like __[Under Armour](https://robinhood.com/stocks/UA)__ and Adidas have also ditched retailers to boost D2C sales. But __[Allbirds](https://robinhood.com/stocks/BIRD)__, a smaller shoe biz that started out D2C, is investing in wholesale to tap new customers.

Untied

__Markdowns scuff brand image…__ Nike’s D2C push is all about [control](https://www.forbes.com/sites/warrenshoulberg/2022/03/01/swoosh-why-nikes-foot-locker-exit-could-devastate-other-retailers/?sh=faeb08e6d6d9). If Nike can control its supply, it can control its brand image — and if Nike can elevate its brand image, it can sell shoes for higher prices. But Nike can pitch Jordans as luxury items only if they’re *not* available in Foot Locker’s clearance bin. As the Swoosh moves up market, it could expand past partnerships with luxe brands like __[LVMH](https://robinhood.com/stocks/LVMUY)__, whose profits are soaring despite inflation.

Nike tries to luxe-ify its brand by selling less at Foot Locker and more directly to consumer

From BP to Disney, Western companies flex “soft power” by cutting ties with Russia

In 1869, Wyoming became the first US state or territory to grant women the right to vote — a half century before the 19th Amendment was passed by Congress

💼 Russia’s corporate exodus

__Weaponized finance...__ Over the weekend, Western countries piled unprecedented financial sanctions on Russia. The goal: disrupt Russia’s ability to finance its war in Ukraine by cutting it off from critical financial resources. The fallout in Russia: plunging stocks, a crashing currency, and panic.

- __Sinking stocks:__ Russia closed its stock market yesterday and today to prevent a crash after it plummeted 30%. 
- __Sinking currency:__ The ruble lost more than [30%](https://www.cnbc.com/2022/02/28/russian-ruble-dives-nearly-30percent-against-the-dollar-amid-sanctions-ukraine-crisis.html) of its value against the US dollar, trading as low as 119 rubles per $1. 
- __Soaring interest:__ To prop up its currency, Russia's central bank (think: its Fed) more than [doubled](https://www.npr.org/2022/02/28/1083478065/russias-central-bank-doubles-a-key-interest-rate-as-sanctions-spark-economic-tur) its key interest rate, to a record 20%. 
- __Run on banks:__ Russians lined up at banks and ATMs to withdraw cash, rushing to spend or convert their savings before they lost even more value.

__Uncharted territory…__ The West’s latest sanctions have made it hard for Russia to (a) tap it into its rainy-day fund of foreign currency (think: USDs, euros) and (b) stabilize the plunging ruble. Two financial strikes explain why:

- __Strike #1:__ Western countries kicked some Russian banks out of Swift, the key global banking network for international transactions. That severely limits Russian banks’ ability to trade and convert rubles into other currencies, which is necessary to pay for imports. 
- __Strike #2:__ The US froze the Russian central bank’s access to its foreign currency held at American banks — read: a large chunk of Russia’s $640B reserves. Normally, Russia’s central bank would buy rubles to stabilize the currency from falling. Problem: it needs foreign currency to do that.

A man in Moscow passes by a display of foreign exchange rates [Anton Novoderezhkin/Getty Images]

Crisis

__“Fortress Russia” is showing cracks…__ Moscow has spent years trying to “sanction-proof” its economy by bulking up on foreign currency (among other things). But these sanctions block Russia from a big part of the global economy, and the damage is already showing. Still: the sanctions [let](https://www.wsj.com/articles/russia-sanctions-over-ukraine-largely-spare-energy-sector-vital-to-europe-11645970890) the West keep buying oil and gas from Russia — aka: Russia’s biggest source of revenue.

From plunging stocks to sinking currency, Russia’s economy is in crisis mode

__It’s not just hot air…__ Energy giants are finally investing in US offshore wind farms. Last year, wind produced a record 9% of domestic energy, but virtually all that power was generated inland on huge farms in Texas, Oklahoma, and Iowa. Now the global energy sector is looking offshore and starting to see a path to profits in those huge coastal turbines: 

- __The news:__ The rights to develop wind farms off the coast of New York and New Jersey [sold](https://www.axios.com/newsletters/axios-generate-91561e8c-a736-4433-a1f6-570b60e9f1cf.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosgenerate&stream=top) for a record $4.37B this week, to joint ventures involving companies like __[Shell](https://robinhood.com/stocks/SHEL)__ (Dutch), __[RWE](https://robinhood.com/stocks/RWEOY)__ (German), and __[National Grid](https://robinhood.com/stocks/NGG)__ (UK).
- __The goal:__ Biden wants offshore wind to power 10M homes by 2030. US wind farms are already on track to exceed that, but they’re unlikely to be operational by the deadline.

__The US has some wind in its sails…__ But still lags behind the EU and China in offshore wind production. Today the US [has](https://www.princeton.edu/news/2021/05/20/net-zero-america-action-americas-windy-coastlines-and-scaling-offshore-wind-power) just two operational offshore wind farms, with only a handful of working turbines. Europe and China are dominating, accounting for nearly all offshore wind-generating capacity. Part of the reason for the lag is red tape: the US permitting process for offshore wind projects can take *years* because it often involves several states and overlapping regulators.

Gusty

__Urgency can be a powerful tailwind...__ Every dollar the federal government commits to renewables is another reason for companies to invest in US clean energy, even in heavily regulated industries like offshore wind. Wind and solar are expected to account for the majority of new energy capacity built in the US this year — and power from these kinds of renewables are already [cheaper](https://ourworldindata.org/cheap-renewables-growth) than fossil fuels in many places. But even though wind can generate more clean power than solar, the solar industry is growing faster.

Clean energy gets a windfall after a record-breaking auction for US offshore wind farms

From plunging stocks to a sinking currency, Russia’s economy is in crisis mode

Women make up more than half the US population, but only just over a quarter of Congress

📉 Russia’s financial crisis

__Just as the pandemic was waning...__ Russia invaded a sovereign nation, launching a war that’s plunged Europe into one of its [darkest](https://newsinfo.inquirer.net/1559645/europe-in-darkest-hours-since-world-war-ii) moments since WWII. After Russia began invading neighboring Ukraine, Western leaders have been piling on harsher sanctions to punish Russian President Putin.

__The crisis is rattling the world...__ and markets. The global economy is so interconnected that turmoil in one area can shake the entire financial system. Stocks have been falling all year as investors stress over inflation and coming interest-rate hikes. The conflict is weighing on what’s already hurting markets. How different markets have been impacted:

- __Stocks:__ US stocks dropped immediately after Russia's invasion on Thursday, but rebounded for the week on expectations that the Fed could go easier on rate hikes (because: global turmoil). Few US companies have operations in Russia or Ukraine, so they’re more shielded. Meanwhile, Russian stocks have lost half their value.
- __Bonds:__ US Treasury bonds spiked as investors sold more volatile assets like stocks and moved into “safe haven” investments like gov’t debt, which the US has always repaid. 
- __Commodities:__ Oil and wheat prices soared on concerns of reduced supply from Russia — the world's largest exporter of wheat, and a top three exporter of oil and natural gas. Meanwhile, gold prices are rising as investors seek more stability.
- __Paper currency:__ The USD is appreciating as investors seek security in the world’s reserve currency, which has a stable rep, while Russia’s currency has tanked.
- __Crypto:__ Some believe __[Bitcoin](https://robinhood.com/crypto/BTC)__ can act like digital gold — a “safe haven” decentralized currency to retreat to during conflicts. But BTC is down 30% over the past three months. 

In Rome, a torchlight procession for peace in Ukraine (Pacific Press via Getty Images)

__In uncertain times, investors crave security…__ That’s why during times of political turmoil, some investors retreat into "safe haven” assets like T-bonds, gold, cash, and even "defensive stocks,” which tend to be less affected by volatility (think: utilities and consumer staples). Diversifying across investment types can help hedge risk, but doesn’t mean losses won’t occur. No one can predict what’ll happen, but historically the US market has bounced back from geopolitical conflicts over time. 

As investors worry about Russia’s war on Ukraine, we’re unpacking how geopolitical turmoil can affect different assets

__The state of the union is...__ anxious. President Biden is set to deliver his first SOTU address Tuesday, at a critical moment when his approval ratings have plunged. While he may talk about the war in Ukraine and his domestic successes (think: $1T [infrastructure](https://snacks.robinhood.com/newsletters/535eiAczcIj1qvPlNpbVcf/articles/3oxNV4QbHcdtoFaZVgY1sz/) bill, vaccination rate), inflation is what’s top of mind for many Americans. Biden will likely underscore the strong labor market — a record 6.6M jobs were added since he took office — while acknowledging that high prices are hurting wallets. FYI: We'll get an update on the employment picture with Friday’s jobs report.

__Speed bump...__ Plans to electrify US delivery fleets are stuck in first gear. Last week __USPS__ said it would buy $6B of mostly gas-guzzling mail trucks, ignoring the White House’s call for it to go electric. In the private sector, __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Walmart](https://robinhood.com/stocks/WMT)__, __[FedEx](https://robinhood.com/stocks/FDX)__, and __[UPS](https://robinhood.com/stocks/UPS)__ have set goals to go all EV by 2040, but the transition has been wobbly (blame supply constraints). Amazon ordered 100K electric vans from __[Rivian](https://robinhood.com/stocks/RIVN)__, but their ETA has been delayed to 2030. FedEx also plans to buy 100% EVs, but not until 2030.

Stories we’re watching…

__The snowball effect...__ The cloud biz that helped __Pizza Hut__ predict Super Bowl ’za orders is on fire: shares of __[Snowflake](https://robinhood.com/stocks/SNOW)__ have doubled since its [record](https://snacks.robinhood.com/newsletters/20h2lIyDiEHNUxZmIBTfPu/articles/3sU0d3u3Bv3EujmS6dVQ7U/)-breaking 2020 IPO on huge demand for cloud storage, and 40% of Fortune 500 companies now [use](https://www.investors.com/news/technology/snowflake-snow-stock-buy-now/) its software. But Snow shares have thawed 30% from highs on the wider tech selloff, plus competition from upstarts like __DataBricks__. Snow has yet to turn a profit, but expects annual sales to 18X by 2029. Amazon’s AWS cloud sales soared last quarter. We’ll see if Snowflake follows suit when it reports Wednesday.

__One (brand) fits all...__ __[Victoria's Secret](https://robinhood.com/stocks/VSCO)__ has been facing an identity crisis, from C-Suite [harassment](https://www.newsweek.com/victorias-secrets-lingerie-giant-past-controversies-1601496) allegations to changing views of what "sexy" means. Last week the lingerie brand debuted its first-ever model with Down syndrome, part of a series of inclusive campaigns aimed at revamping its image. It seems to be making a difference: last quarter its in-store sales [jumped](https://wwd.com/fashion-news/intimates/victorias-secret-earnings-100-supply-chain-distruptions-1234998185/) 22%, to $920M, but it warned that supply delays would cost it $100M. We'll see if VS’s inclusivity push can restore sales to pre-pandemic highs when it reports Thursday.

Coming up this week…

- __[Equity](https://snacks.robinhood.com/newsletters/1CH8xdDasx6jEeeUXUwNeS/articles/1Ce60Aclf9kslaeFuVdd8U/):__ There were a record 20 Black CFOs at S&P 500 companies last year, but more than 90% of the top 50 most valuable public companies don’t have any Black C-suite execs. Many firms still have a pipeline problem that’s limiting C-suite diversity.
- __[Hack](https://snacks.robinhood.com/newsletters/1CH8xdDasx6jEeeUXUwNeS/articles/2RWxZW3i3ZY5AK2hAhEi2b/):__ After global leaders sanctioned Russia for invading Ukraine, shares of cybersecurity giants __[Palo Alto Networks](https://robinhood.com/stocks/PANW)__, __[CrowdStrike](https://robinhood.com/stocks/CRWD)__, __[Fortinet](https://robinhood.com/stocks/FTNT)__, and __[Mandiant](https://robinhood.com/stocks/MNDT)__ spiked on fears of a cyberwar.
- __[Tuneware](https://snacks.robinhood.com/newsletters/2aFNNo1cLzMdtzoAVyyeFI/articles/4BJLnkiuQ9iY6Cib0jgljw/):__ __[Spotify](https://robinhood.com/stocks/SPOT)__ launched its first physical product, the Car Thing music player for the dash of your ’97 Nissan. Meanwhile, Kanye debuted his new album on a $200 device (that looks like a smoke alarm).

How Russia's war with Ukraine is impacting global markets, from bonds to crypto

Ketanji Brown Jackson was nominated to be the first Black woman to sit on the Supreme Court

🛢️ How Russia’s war with Ukraine is impacting global markets

__Modern warfare isn’t confined to the battlefield…__ Ukrainian banks’ and government websites were [hit](https://www.cnbc.com/2022/02/23/cyberattack-hits-ukrainian-banks-and-government-websites.html) with cyberattacks this week ahead of Russia’s deadly invasion. Since the US and its allies [imposed](https://snacks.robinhood.com/newsletters/2aFNNo1cLzMdtzoAVyyeFI/) sanctions on Moscow, Western officials have been on high alert for Russian cyber-retaliation. Shares of cybersecurity companies have spiked:

- Network-security stocks __[Palo Alto Networks](https://robinhood.com/stocks/PANW)__, __[CrowdStrike](https://robinhood.com/stocks/CRWD)__, __[Fortinet](https://robinhood.com/stocks/FTNT)__, and __[Mandiant](https://robinhood.com/stocks/MNDT)__ all surged at least 10% yesterday, and cybersecurity ETFs also jumped.

__It’s scary out there…__ Even before Russia’s invasion of Ukraine, the cybersecurity industry had been seeing a flood of investment: VC-backed security companies have [raised](https://news.crunchbase.com/news/cybersecurity-russian-ukraine-crowdstrike-securonix-bluevoyant/) $2.6B so far *this month*, about 4X more than the same period last year. 

- __Cybercrime is a growing biz:__ the number of cyberattacks [increased](https://www.thestreet.com/markets/palo-alto-networks-stock-leaps-as-cyber-attack-surge-lifts-outlook) 70% last year, and data breaches cost US companies a record $4.2M on average. The global [cost](https://www.ibm.com/security/data-breach) of hacks topped $6T last year and is forecast to hit $10.5T by 2025. 
- __Russia’s already a big player:__ Cybercrime analysts [say](https://www.bbc.com/news/technology-60378009) nearly 75% of money stolen via ransomware attacks last year went to Russia-linked cybercriminals. In recent years, logistics giants __[FedEx](https://robinhood.com/stocks/FDX)__ and __[Maersk](https://robinhood.com/stocks/AMKBY)__ have also been targeted by Russian hackers.

Hack

__A new era of state-sponsored cybercrime is dawning…__ Russia was responsible for an [estimated](https://fortune.com/2021/10/07/microsoft-russia-is-behind-58-percent-of-detected-state-sponsored-hacks-cybersecurity/) 60% of state-sponsored cybercrime detected by Microsoft last year, and now the FBI is [warning](https://www.cnn.com/2022/02/22/politics/russia-sanctions-fbi-cyber-threats-ransomware/index.html) US banks and businesses to watch out for Russian ransomware attacks. Biden has asked American tech giants like __[Google](https://robinhood.com/stocks/GOOGL)__ and __[Microsoft](https://robinhood.com/stocks/MSFT)__ to help beef up cybersecurity, but has struggled to boost the national cybersecurity budget since his Build Back Better bill [stalled](https://snacks.robinhood.com/newsletters/6j2M9rRr7dWfX9iVqkya8A/) in Congress.

Cybersecurity stocks surge as Russia’s invasion of Ukraine highlights the risks of cyberwar

__A seat at the table…__ Despite a national reckoning on race and equity, corporate America has been slow to diversify its C-suites. The tide’s *slowly* turning: last [year](https://www.wsj.com/articles/racially-diverse-cfos-are-in-high-demand-but-challenges-persist-11621942201?mod=article_inline) there were a record 20 Black chief financial officers at S&P 500 companies. But there are still only four Black CEOs in the Fortune 500, and more than 90% of the 50 most valuable public companies in the US don't have any black C-suite execs, including __[Walmart](https://robinhood.com/stocks/WMT)__, __[Costco](https://robinhood.com/stocks/COST)__, and __[T-Mobile](https://robinhood.com/stocks/TMUS)__. 

__Self-fulfilling prophecy…__ Last year, [over](https://news.bloomberglaw.com/securities-law/s-p-500-opens-up-on-diversity-after-floyd-as-investors-seek-more) 400 S&P companies used the words “diversity,” “equity,” or “inclusion” in their annual [filings](https://news.bloomberglaw.com/securities-law/s-p-500-opens-up-on-diversity-after-floyd-as-investors-seek-more). But creating racial equality in the upper ranks of a workforce is about more than quota-filling and good PR. Board members make some of the most critical decisions in any big company. And they’re traditionally responsible for picking their successors, who have been primarily white men.

- __Bottom up:__ Last year, Black workers [made](https://www.mckinsey.com/featured-insights/diversity-and-inclusion/race-in-the-workplace-the-black-experience-in-the-us-private-sector) up 12% of entry-level employees in the private sector, and only 7% of managers. 
- __Singled out:__ Corporate [hiring](https://www.forbes.com/sites/kwamechristian/2022/02/07/in-support-of-black-leadership-tips-for-building-confidence--success/?sh=1021b5076e2e) bias and concerns about being the only employee of color on an all-white leadership team can make it hard for Black candidates to gain the experience needed to advance.

__It’s a matter of principle *and* money…__ when it comes to fostering diversity in the boardroom. One [study](https://www.morganstanley.com/ideas/corporate-board-diversity-stock-price) found that publicly traded companies with more people of color on their boards saw nearly 2% higher stock returns than those who didn’t. Companies have to invest in a diverse talent pipeline, especially in early career, to break the cycle. Now, historically Black colleges and universities are stepping in: __[Morgan Stanley](https://robinhood.com/stocks/MS)__ has [pledged](https://www.bloomberg.com/news/articles/2021-02-16/goldman-sachs-pledges-25-million-to-historically-black-colleges) $25M to give HBCU students the opportunity to train and network within the company and gain access into the finance biz.

America’s boardrooms are getting more diverse, but inequity in hiring pipelines and promotions makes rising through the ranks difficult

Cybersecurity stocks surge as Russia’s attack on Ukraine spurs cyberwar fears

Big mood: Netflix trivia night [The Good Brigade/Getty Images]

[Adam Berry/Stringer via GettyImages]

Kyiv's subway stations, among the world’s deepest, were completed during the Cold War to double as bomb shelters in the event of enemy attack. Ukrainians are now using them for that very purpose.

💾 Russia stokes cyberwar fears

__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](https://www.reuters.com/business/energy/us-plans-sanctions-company-building-russias-nord-stream-2-pipeline-cnn-2022-02-23/) sanctions on the company building Russia’s $11B Nord Stream 2 gas pipeline which spans from Russia to Germany after Germany [halted](https://news.yahoo.com/white-house-hails-germanys-decision-to-halt-certification-of-nord-stream-2-pipeline-to-punish-russia-001744081.html) 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](https://twitter.com/POTUS/status/1496716484906819589) 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](https://www.wsj.com/articles/ukraine-crisis-has-big-western-businesses-girding-for-fallout-from-sanctions-11645619447?mod=business_lead_pos1) for further sanctions, which Western leaders could leverage:

- __Oil:__ __[BP](https://robinhood.com/stocks/BP)__, __[Exxon](https://robinhood.com/stocks/XOM)__, and __[Shell](https://robinhood.com/stocks/SHEL)__ all have significant investments in Russia that could be threatened by sanctions on Russia’s energy market. 
- __Banks:__ __[Chase](https://robinhood.com/stocks/JPM)__ and __[Citi](https://robinhood.com/stocks/C)__, 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](https://robinhood.com/stocks/STLA)__ says it would limit production in Russia if sanctions disrupt its operations. 
- __Beer:__ Danish brewer __[Carlsberg](https://robinhood.com/stocks/CABGY)__ 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.

Sanctioned

__Sanctions could hit consumers hardest…__ especially Europeans. Western companies were relatively unaffected by Russia’s 2014 annexation of Ukraine’s Crimean Peninsula. American and EU officials say sanctions will be harsher this time, and  consumers could feel that at the pump. As the world’s #2 exporter of natural gas and #3 exporter of oil, Russia can cut supply at a time when prices are already sky high. Americans, who are [facing](https://www.marketwatch.com/story/u-s-drivers-brace-for-the-highest-prices-in-9-years-as-oil-approaches-100-a-barrel-11645558796) for the highest gas prices since 2013, could experience even more pump anxiety if global supply shrinks. 

Companies brace for impact from Russia sanctions, but consumers could get hit hardest

__Yeezy taught me…__ Kanye West isn't afraid to be vocal, whether it’s about his [personal](https://www.buzzfeednews.com/article/ellendurney/kanye-west-new-lyrics-about-kim-kardashian-pete-davidson) 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](https://variety.com/2022/music/news/kanye-wests-donda-2-event-playboi-carti-marilyn-manson-jack-harlow-1235188231/) 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](https://www.stemplayer.com/) like a smoke detector). Why: Ye wants to bypass streaming platforms like __[Apple](https://robinhood.com/stocks/AAPL)__, __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Spotify](https://robinhood.com/stocks/SPOT)__, and YouTube. Kanye also tried to skip those streamers with his launch event:

- __Ye originally said__ the event would stream only at __[IMAX](https://robinhood.com/stocks/IMAX)__ theaters, and [later](https://www.wsj.com/articles/kanye-west-says-donda-2-album-will-be-released-only-on-200-stem-player-device-11645221043) 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](https://www.macworld.co.uk/news/kanye-west-turned-down-apple-music-3813653/#:~:text=In%20a%20series%20of%20Instagram,through%20his%20own%20Stem%20Player.) 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](https://robinhood.com/stocks/SQ)__ bought it.
- Taylor Swift has shunned both Apple Music and Spotify at various times, and [re-recorded](https://snacks.robinhood.com/newsletters/1e3lwXtO6b6giHg2TXcAGO/articles/799g3A4a08tsjHQiwWNyi9/) her “Red” album to claim streaming bucks back from labels.

This new Kanye album is fire [Photodisc via Getty Images]

__Habit platforms are sticky…__ It’s one thing to fight streamer payouts, but another to fight listener habits. Taylor, Kanye, and Beyoncé can afford to ditch Spotify or Apple *temporarily* to fight for better terms. But they’ve all returned to where the ears and playlists are: Spotify and Apple have a [combined](https://www.theverge.com/2022/1/20/22892939/music-streaming-services-market-share-q2-2021-spotify-apple-amazon-tencent-youtube#:~:text=Spotify%20was%20the%20largest%20music,third%20with%2013%20percent%20apiece.) global market share of more than 50%, but they’re not invincible. Example: Spotify shares [fell](https://variety.com/2022/digital/news/spotify-2-billion-market-cap-neil-young-joe-rogan-1235166798/) 6% in the days after Neil Young jumped ship in protest of Joe Rogan’s vax misinfo, and they still haven’t recovered.

Kanye goes direct to consumer with his new album, as artists’ streaming frustration grows

(Photo by Omer Messinger/Getty Images)

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🇺🇦 The impact of Russia sanctions

__Stocks are down — what's new?...__ ICYMI: stocks have been falling all year as investors [worry](https://snacks.robinhood.com/newsletters/2MVH2KDOTUkUCH5cozGBos/articles/5FbD7KaOehttkedpLIaG0m/) about inflation and the Fed’s coming interest-rate hikes. This month, there's a new concern: Russia's increasing aggression toward Ukraine. Refresher:

- __1991:__ Ukraine gained independence from Russia when the Soviet Union fell, but Russia has never fully pulled back its influence there ([see](https://www.britannica.com/place/Ukraine/The-crisis-in-Crimea-and-eastern-Ukraine): 2014 annexation of Crimea).
- __Late January:__ Russia stationed 100K+ troops near its border with Ukraine, fueling invasion fears among Western leaders.
- __Monday:__ Russian President Putin [recognized](https://www.cnn.com/2022/02/21/europe/russia-ukraine-tensions-monday-intl/index.html) the independence of two separatist regions in Ukraine (see: [this brutal exchange](https://www.bbc.com/news/av/world-europe-60485967)) and ordered Russian troops to enter. 
- __Yesterday:__ President Biden said he viewed Russia's move into Ukraine as the beginning of an invasion, and [announced](https://www.wsj.com/articles/white-house-calls-russian-moves-an-invasion-after-initially-refraining-from-using-term-11645549648) the first wave of new US sanctions to cut off Russia from Western financing. Earlier, the EU agreed to ban the purchase of Russian government bonds.
- __Also yesterday:__ Germany halted the [key](https://snacks.robinhood.com/newsletters/6oUasks4UHzb87QXAq6Z3b/articles/42MsC1pWn5GL5HyZpMd1Sx/) Nord Stream 2 pipeline, which carries gas from Russia to Germany (oil exports = 30% of Russia's economy).

__The short-term effect on stocks...__ The S&P 500 index is down 5% for the month, as Russia-Ukraine tensions add to what’s already hurting markets:

- __Uncertainty:__ While some uncertainty is always a given, high turmoil is usually bad for markets. Investors tend to retreat to "safe-haven assets" like government bonds, gold, and even "defensive stocks" like healthcare and utilities, which tend to be less affected by volatility.
- __Inflation:__ Sanctions on Russia could cause prices of oil, food, and other commodities to soar *even more*. Russia supplies more than a third of the EU’s natural gas, while Russia and Ukraine produce much of the world’s wheat and corn. 

Alexey Nikolsky / Getty Images

Tense

__How could markets react long term?…__ We can’t predict the future, but historically the US market has bounced back from conflicts over time. Since 1941 the total fall in the stock market after major geopolitical events was, on average, [5%](https://lplresearch.com/2020/01/08/how-stocks-do-during-geopolitical-events/) — with a couple months to eventually recover. Of course, even if the market recovers, individual stocks might not. That’s one reason some investors diversify to help hedge risk.

How the escalating Russia-Ukraine conflict could affect markets — short and long term

__Blasting “Good 4 U” in your ’97 Civic…__ __[Spotify’s](https://robinhood.com/stocks/SPOT)__ Car Thing is now a real thing. Its first physical product — it’s literally called *Car Thing* — [went](https://www.theverge.com/2022/2/22/22945403/spotify-car-thing-price-release-date) on sale in the US yesterday after a limited release last April, when 2M people joined the waitlist. The $90 dash-mounted gadget is meant for cars without infotainment screens, and lets drivers control their Spotify tunes via touchscreen or voice control: It works only with Spotify Premium and requires a smartphone with Bluetooth or an aux cord. 

__Hard(ware) right turn…__ Spotify has twice as many listeners as its closest streaming rival (__[Apple](https://robinhood.com/stocks/AAPL)__). Now it joins a long list of tech companies that’ve attempted to make the jump from software to hardware. Those efforts have had mixed results:

- __Hail Mary hardware projects__ like __[Microsoft’s](https://robinhood.com/stocks/MSFT)__ Zune MP3 player and __[Google](https://robinhood.com/stocks/GOOGL)__ Glass AR glasses were discontinued after falling flat with consumers. 
- __But connected gadgets__ like __[Amazon’s](https://robinhood.com/stocks/AMZN)__ Kindle and Google’s Home Speakers succeeded by offering simple integrations with their parent companies’ other products and services.

Blasting Billie Eilish on the Car Thing [Jose Luis Pelaez Inc. / Digital Vision via Getty Images]

Thingy

__Not all products are designed to be huge sellers…__ Since most new cars come with either Apple’s CarPlay or Google’s Android Auto preinstalled, Spotify is launching a product into a market that’s shrinking, not expanding. And it knows that. Car Thing isn’t meant to create long-term revenue — it’s meant to build loyalty and encourage *more* Premium listening at home, at work, and on the road *now*. Looking ahead, Spotify [says](https://www.cnet.com/tech/services-and-software/features/spotifys-car-thing-is-about-to-face-the-music/) it's focused on audio, not hardware. Its execs have even [described](https://www.cnet.com/tech/services-and-software/features/spotifys-car-thing-is-about-to-face-the-music/) Car Thing as a “means to an end.”

Spotify rolls out its first physical product for your car — but don’t call it a hardware biz

The Beijing Winter Games had the worst TV ratings in Olympic history — but the largest streaming audience ever