__Inflation doesn’t take a vacation…__ though investors wish they could buy it a one-way ticket to Cabo. US consumer prices in September were up a hotter-than-expected [8.2%](https://www.cnbc.com/2022/10/13/consumer-price-index-september-2022-.html) from a year ago — a slightly slower pace than last month, but still likely far too steamy to convince the Fed to simmer down on big rate hikes. Plus, that healthy September jobs report has dashed hopes that a Powell pause (#Powse) is coming soon. 

- __Sad consumers:__ “Core inflation” (aka: excluding food and energy) was up 6.6%, the highest yearly gain for core since 1982. 
- __Sad economy:__ This week the IMF cut its global growth forecast, and __[Chase](https://robinhood.com/stocks/JPM/)__ CEO Jamie Dimon said the US would likely enter a recession within nine months. 
- __Sad investors:__ Earnings season’s kicking off, and S&P 500 companies are expected to report their lowest annual profit growth since 2020.

__Still need hot Cheetos, though…__ Inflation is cruising at 40-year highs, partly because Americans continue to spend through price increases. Consumer spending ticked up more than expected in August, even as high interest rates and prices weighed on demand. __[Delta](https://robinhood.com/stocks/DAL/)__ and __[American](https://robinhood.com/stocks/AAL/)__ reported strong sales growth despite spooky fares. __[Pepsi](https://robinhood.com/stocks/PEP/)__ shocked investors with 9% sales growth as shoppers loaded up on Cheetos and Lay’s despite price hikes.

Chip-flation (NurPhoto/GettyImages)

__The Fed moves forward with an old map…__ It’s guiding the economy based on how things looked in the past (like: last month’s inflation), not how they might look nine months from now. If the route changes to a steep downturn, it might be too late to turn back. While the Fed is backward-looking, markets are forward-looking. That’s why this earnings season investors may be more interested in *forecasts* than results from last quarter.

Inflation’s still riding high as earnings season dawns, dashing hopes that the Fed will reverse course

__Nu(clear) kid on the block…__ There’s a new power player in the nuclear biz: this week renewable behemoth __[Brookfield Renewable Partners](https://robinhood.com/stocks/BEP/)__ and uranium powerhouse __[Cameco](https://robinhood.com/stocks/CCJ/)__ [agreed](https://www.ft.com/content/46df2aa9-0963-47a6-881c-f715a18a8527) to buy __Westinghouse Electric__ for $7.9B. Because Westinghouse services about half the world’s 440 nuclear reactors, the deal could revitalize the sector.

- __Big turnaround:__ Westinghouse went bankrupt in 2017 as nuclear demand fizzled. But the company’s sale price is 70% higher than four years ago thanks to renewed demand.

__Fission for compliments…__ Many seem to love nuclear now that Putin has destabilized global natural-gas supplies. The amount of global electricity produced by nuclear energy has fallen from 18% in the mid-’90s to 10%, because of disasters including Chernobyl. But now countries are reconsidering nuclear, which has lower emissions than fossil fuels:

- __California__ recently voted to keep its last nuclear plant open, reversing plans to close it. 
- __Germany’s__ debating whether to keep its remaining plants open, despite plans to close them by the end of the year (even Greta Thunberg wants them to stay open).
- __Japan__ is reopening old plants as part of a bigger nuclear reboot.
- __China__ just approved six nuclear plants and plans to double its nuclear capacity by 2030. — which would give it more plants than the rest of the world *combined*.

Surge

__Renewed profitability offers a path to revival…__ One reason nuclear plants dwindled in recent decades was they were expensive to build, and oil delivered more immediate energy profits. But Westinghouse’s sale shows nuclear’s profit potential: Brookfield Business Partners made a $4.5B profit in four years on its Westinghouse stake. Nuclear investments are expected to continue: experts say nuclear generation must double by 2050 to hit net-zero goals.

Nuclear giant Westinghouse sells for $8B in a sign nuclear power is making a comeback

- 🪙 __Coins…__ __[BNY Mellon](https://robinhood.com/stocks/BK/)__ is getting into the crypto-custody biz. The US's oldest bank said it would [hold](https://www.wsj.com/articles/americas-oldest-bank-bny-mellon-will-hold-that-crypto-now-11665460354) customers' __[bitcoin](https://robinhood.com/crypto/BTC/)__ and __[ether](https://robinhood.com/crypto/ETH/)__. It's not alone: __[Nasdaq](https://robinhood.com/stocks/NDAQ/)__ will also offer institutional investors a custody service.
- 🤔 __Sus…__ Crypto thieves have [looted](https://www.bloomberg.com/news/articles/2022-10-13/crypto-hackers-set-for-record-year-after-looting-over-3-billion) $718M this month alone, stealing $3B+ this year (approaching a record). The weak link: decentralized finance. DeFi is permissionless and ruled by smart contracts (aka: code), making it a ripe target for hackers.
- 🤖 __Techy…__ __[Google](https://robinhood.com/stocks/GOOGL/)__ signed a deal with __[Coinbase](https://robinhood.com/stocks/COIN/)__ to facilitate cloud [payments](https://www.cnbc.com/2022/10/11/google-selects-coinbase-to-take-cloud-payments-with-cryptocurrencies.html) in crypto (think: cloud-storage bills paid in __[dogecoin](https://robinhood.com/crypto/DOGE/)__). The crypto exchange will earn a % of transactions and move its own cloud biz to Google (bye, AWS).

Cloudy

The Crypto Catch-Up…

Inflation’s still riding high as earnings dawn, dashing hopes of an early Fed reversal

Dow Jones

S&P 500

Nasdaq

Bitcoin

El Salvador has lost about $60M on its nationwide bitcoin experiment in just one year 

🏖️ No inflation vacation

__Shocking…__ A BBC investigation [found](https://www.bbc.com/news/world-63213567) that __ByteDance__-owned TikTok is profiting from donations on charitable live streams, which have gained popularity. The BBC went on the ground in war-torn Syria, where displaced families living in camps are begging for donations to cover everything from food to medical care — all through TikTok live streams. What the BBC reported:

- __TikTok is said to pocket up to 70% of donations__ collected via live streams. For five months the BBC scraped info from 30 accounts broadcasting live from Syrian camps. Some streams earned up to $1K/hour, but families said they received a tiny fraction of that.
- __TikTok’s response:__ Gen Z’s favorite app said this type of content isn’t allowed on its platform, and added it would take action against “exploitative begging.” But TikTok failed to explain why it’s reported to have taken a cut of the live streams if they’re not allowed. 
- __Doesn’t add up:__ TikTok said the commission that it takes from digital gifts is significantly less than 70%. But a BBC reporter in Syria tested it out and said TikTok had kept about 70% of the proceeds from his live stream. 

__Lions and roses…__ TikTok live-stream viewers can send digital gifts — ranging from roses (which cost a few cents) to lions (which cost $500) — to tip creators or donate to people in need. The BBC found that the Syrian live-stream trend was facilitated by “TikTok middlemen,” who said they worked with agencies affiliated with TikTok in Asia and provided needy families with phones and accounts to go live.

ByteDance’s TikTok faces scrutiny… again (Yan Guolin/Getty Images)

Investigate

__It could be TikTok’s lowest blow…__ The world’s most popular app is no stranger to accusations of [sketchy practices](https://snacks.robinhood.com/newsletters/1XRABkCiKwZJR7JrLA4kpP/articles/1A1qbAnfT0zo8MBTBOy2Jy/) — from boosting harmful content to censoring content at China’s behest. But if the BBC’s findings are accurate, it could be its worst scandal. Over 1B people use TikTok to stay up to date with news, engage with trends, and donate to their favorite causes. This report could permanently bruise TikTok’s reputation.

TikTok is pocketing up to 70% of donations from charitable live streams, the BBC found

__Fall-fit shopping gets less cringe…__ Hollister rolled out a check-out option that makes shopping with Mom and Dad less embarrassing. On Tuesday, the California-style teen retailer [rolled out](https://www.globenewswire.com/news-release/2022/10/11/2531842/0/en/Hollister-Launches-Share2Pay-Retail-Industry-First-and-New-Way-to-Pay.html) “Share2Pay,” which lets shoppers share their carts with parents (no awkward mall trips required). 

- __How it works:__ US and UK customers can text their digital shopping carts to the buyer (aka: Mom and Dad), who can use the link to add or remove items before paying. 
- __How it’s doing:__ After a soft launch, Hollister said customers who used Share2Pay placed orders nearly twice as often as those who didn't.
- __Corporate parent:__ Hollister makes up over half of __[Abercrombie’s](https://robinhood.com/stocks/ANF/)__ sales. But while Abercrombie’s namesake sales jumped 5% last quarter (thank: more jean sizes, fewer logos), Hollister’s fell 15% and Abercrombie reported a surprise loss.

__“Enjoy the bucket hat, sweetie”...__ Gen Z accounts for a massive $360B in disposable spending power, more than double the estimate from three years ago. But with more teens interested in [saving](https://fortune.com/2022/10/12/gen-z-doesnt-want-to-make-the-same-mistake-millennials-did-with-the-great-recession/) for retirement versus splurging, retailers are trying to boost sales by easing friction between the shopper and the *payer*:

- __[Amazon](https://robinhood.com/stocks/AMZN/)__ launched “Amazon Teen” in 2017, letting parents set spending limits and approve their teens’ purchases before paying.
- __[Apple](https://robinhood.com/stocks/AAPL/)__ has an “Ask to Buy” [feature](https://support.apple.com/en-us/HT201089) that sends a request to the family account holder when kids want to buy or download a product.

Mommy

__Abandoned carts are a multibillion-dollar problem…__ Nearly 70% of online shopping carts are abandoned, costing retailers $18B in lost annual sales. It’s even harder for tween-fave brands like Hollister (only half of its Gen Z [demo](https://support.apple.com/en-us/HT201089) has credit cards). Now retailers are targeting a more reliable source to get shoppers to the finish line: their parents.

Hollister will let teens share orders with parents as retailers struggle with the “abandoned cart” problem

TikTok pockets up to 70% of donations from charitable live streams, the BBC found

It can cost more to watch NFL games at Vegas casinos than to attend the games

💸 TikTok's digital gift grab

__The gig is up…__ Yesterday the Labor Department [announced](https://www.reuters.com/world/us/new-biden-labor-rule-would-make-contractors-into-employees-2022-10-11/) a proposal that could classify millions of gig workers (think: delivery drivers, janitors, and home-care aides) as employees rather than independent contractors. Over a third of US workers have performed freelance labor in the past year — and low-income Americans disproportionately rely on gig work. The rule would guide judges and companies, and will be formally published on Thursday, kicking off a 45-day public-comment period (with the final rule expected next year). Why it’s big: 

- __For workers:__ Being misclassified as a contractor means fewer labor protections and potential wage theft. But some business lobbying groups argue that a broad rule would hurt workers who want to have flexible hours and stay independent. 
- __For employers:__ Reclassifying workers as employees would mean higher spending, since hiring contractors can cut labor costs by up to 30%. But the majority of gig workers say they’d prefer *not* to be gig workers.

__Eyes on the road…__ App drivers are synonymous with the gig economy, and __[Uber](https://robinhood.com/stocks/UBER/)__, __[Lyft](https://robinhood.com/stocks/LYFT/)__, and __[DoorDash](https://robinhood.com/stocks/DASH/)__ shares sank after the news. Refresher: in 2019 California legislators passed AB5, a landmark bill that reclassified many of the state’s app-based gig workers as employees. App giants have spent over $200M lobbying for their drivers to be exempt under Prop 22, which [passed](https://snacks.robinhood.com/newsletters/7jMUu1TK8PviqbKCFjQhjC/articles/f06IOakKwXbXOcwTVNbjX/) but was later declared unconstitutional.

Cruising app to app (Jeremy Drey/Getty Images)

__The gig playbook could be rewritten…__ When AB5 passed, Uber and Lyft issued SEC filings saying it would destroy their gig-dependent models. Companies are required to pay employees a minimum wage, provide overtime pay, cover a portion of Social Security taxes, and contribute to unemployment insurance. Unlike the CA law, the Labor Department’s new proposal could have nationwide consequences.

The US Labor Department could grant millions of contractors employee status — and reshape the entire gig economy

__EVs were just the start…__ __[General Motors](https://robinhood.com/stocks/GM/)__ has plans to expand its battery biz. Yesterday the auto giant [said](https://www.cnbc.com/2022/10/11/gm-energy-launches-to-connect-homes-businesses-with-ev-chargers-energy-storage.html) it’s launching a unit called GM Energy that’ll sell “energy management” products, like batteries and solar panels. GM’s investing billions in EV tech as part of its plan to produce *only* electric cars, like the Chevy Bolt and the Hummer EV, by 2035. But it may’ve found another use for its tech:

- __Hard + soft:__ GM Energy will sell hardware (think: home batteries and solar panels) and software (think: tech to link EVs and homes to energy grids) starting next year. Its software could help companies manage efficient charging for entire EV fleets. 
- __Home + office:__ GM is making energy products for individuals and businesses. You could use its batteries and panels to keep the lights on during outages or make $$ selling extra solar energy to the grid. 

__Not exactly leading the charge…__ GM isn’t the first automaker to enter the energy-management industry, estimated to be a $125B to $250B market. __[Tesla](https://robinhood.com/stocks/TSLA/)__ launched its energy-storage division, Powerwall, in 2015 — and last quarter the home-battery biz raked in $866M in revenue. And in June __[Toyota](https://robinhood.com/stocks/TM/)__ began selling its residential battery system to customers in Japan.

Energized

__Rivalries can lead to surprising spinoffs…__ During the space race, NASA’s massive R&D investment led to unrelated innovations, like Lasik eye surgery and memory-foam mattresses. Today the EV race is also yielding successful spinoff industries like energy-management solutions, smart-car software, and data-driven insurance. Another example: last year GM launched BrightDrop, which sells electric vans and fleet-management software to clients including __[FedEx](https://robinhood.com/stocks/FDX/)__.

General Motors launches an energy-storage business, ramping up its rivalry with Tesla

📱 The Labor Dept could grant millions of contractors employee status, reshaping the gig world

Unlike the rest of our solar system’s planets, Venus and Uranus rotate east to west

📱 The big gig shakeup

__Rare [Rivian](https://robinhood.com/stocks/RIVN/) sighting on I-90…__ had to snap a pic. Rivian’s e-pickups look like something out of the future, but the __[Amazon](https://robinhood.com/stocks/AMZN/)__-backed EV maker has built only 15.3K vehicles since starting production last fall. That’s partly why this news hit investors hard: on Friday, Rivian [said](https://www.cnbc.com/2022/10/10/rivian-shares-after-the-company-announced-a-big-recall.html) it was recalling 12K vehicles to double-check that a fastener in the steering assembly was safely tightened. Rivian estimates just 1% of vehicles have the defect, and plans to complete the checks and repairs within 30 days. 

- __Bad news:__ Rivian stock plunged 7% yesterday and is down 69% this year. Since IPO’ing in November, Rivian has fallen short of production targets and disappointed on forecasts. 
- __Good news:__ Last week Rivian reported its best quarter yet with 7.3K EVs built from July to September and said it was on track to make 25K vehicles this year (as targeted). 

__Save a horse…__ drive an e-truck. Rivian became the first to bring e-pickups to customers’ driveways, but the competition’s heating up. In December __[GM’s](https://robinhood.com/stocks/GM/)__ Hummer EV rolled out, and customers began receiving __[Ford’s](https://robinhood.com/stocks/F/)__ F-150 e-pickup in May. This month, __[Lordstown Motors](https://robinhood.com/stocks/RIDE/)__ said it has (slowly) started production of its Endurance e-truck. We’re still waiting on __[Tesla’s](https://robinhood.com/stocks/TSLA/)__ Cybertruck…

Newly minted, slightly dented (Justin Sullivan/Getty Images)

Pickup

__Reputation matters more than money…__ especially when competition is hot. The recall isn’t likely to make a dent in Rivian’s coffers: it had an impressive $15.5B in cash on hand as of last quarter (way more than most of its rivals). But the scale of this recall — plus the fact that Rivian said the fastener issue could, in rare instances, lead to a loss of steering control — has already dented its rep.

Rivian recalls nearly all its electric trucks over safety concerns, denting its newly minted rep

__Blockchain bridges…__ are showing cracks. Crypto bridges let people move coins between different blockchains (think: __[bitcoin](https://robinhood.com/crypto/BTC/)__ to __[ethereum](https://robinhood.com/crypto/ETH/)__) and are a crucial pillar of decentralized finance (DeFi). On Thursday [hackers](https://www.bloomberg.com/news/articles/2022-10-07/binance-coin-100-million-hack-is-reminder-crypto-bridges-are-weak-link) got their hands on $570M in crypto by exploiting a [cross-chain bridge](https://snacks.robinhood.com/newsletters/f8suYXqPD4YTOYUaoKShp/articles/75PhXHd2sIDVNK6TcV8jy4/) between the __Binance__-affiliated BNB Beacon Chain and BNB Smart Chain.

__A crypto cure…__ worse than the DeFi disease. Binance tried to calm hack-weary investors with a statement saying that a majority of the illicit coins had been frozen — hackers did successfully move $100M out of the Binance ecosystem (still nothing to sneeze at). Good news, though, right? Maybe not. The centralized devil is in the details: 

- __Hotchain:__ Blockchains brag about being decentralized and censorship-resistant. It's a big selling point. 
- __Lockchain:__ To thwart last week's hackers, 19 of BNB Smart Chain's 26 validators agreed to pause the entire chain, a rare move that temporarily prevented withdrawals and deposits.
- __Notchain:__ Freezing solved one problem (think: hackers making off with the full $570M), but it raised another: is a chain truly decentralized if a small group of people can suspend it?

CeFi

__Bridges are crypto’s Achilles’ heel…__ Crypto-bridge hackers have snatched over $2B, including $625M from __Ronin__ and $325M from __Wormhole__ earlier this year. But it's not just $$ at stake: hacked cross-chain bridges show that vital DeFi infrastructure remains vulnerable to thieves. And if a fix isn't found, fears of even larger losses could lead to increasingly drastic responses, which threaten to undermine crypto's core premise: decentralization.

A crypto bridge was hit with a $570M hack, which led to a paused blockchain and centralization concerns

Rivian recalls nearly all its electric trucks over safety concerns, denting its new rep

Every year the US harvests over 1B pounds of pumpkins

🛻 Rivian’s rocky recall

__Payment problems…__ As a global recession looms, ecomm giants are [launching](https://techcrunch.com/2022/10/03/amazon-hub-affordable-shopping-options/) more affordable payment options — because more shoppers need them. Americans burned through their pandemic savings faster than anticipated this year as prices surged at the fastest pace in four decades. With consumers further tightening their belts, online retailers are trying to make shopping more accessible: 

- __Prime relief:__ This month __[Amazon](https://robinhood.com/stocks/AMZN/)__ launched an “Access” hub for customers to explore affordable options (think: discounts, coupons, and EBT SNAP payments — aka: digital food stamps). Shoppers who receive government assistance can get discounted Prime memberships, pay over time, and shop without cards. 
- __Full carts, can’t lose:__ Last month __Instacart__ said it would expand its SNAP program in the coming years to help low-income shoppers buy essentials like diapers, which aren’t covered under food-exclusive SNAP.
- __Delivering assistance:__ A growing number of food banks are using __[DoorDash](https://robinhood.com/stocks/DASH/)__ and Amazon to deliver nourishment to people in need.

__Unwelcome U-turn…__ Poverty is making a regrettable rebound. US poverty plummeted to record lows during the pandemic thanks to massive government stimulus. Now that federal aid has dried up and many pandemic benefit programs have disappeared, experts predict US poverty could soon hit a 50-year high. 

- __Less spending:__ Inflation-adjusted spending at stores and restaurants has dropped since April (barring an unexpected August bump).
- __Missed payments:__ Shoppers who can’t pay for gas and groceries up front are [racking](https://snacks.robinhood.com/newsletters/35lzRs5F4ifGlwO2EylF4f/articles/5EJsoxWGwhdhZYCpcJ7lj/) up “buy now, pay later” late fees, and even defaulting on their loans.

Snap

__It isn’t just corporate altruism…__ Companies like Amazon want to keep customers spending, even during hard times. Industry titans can actually boost their market share during recessions by keeping prices low (they can afford to): that’s what __[McDonald’s](https://robinhood.com/stocks/MCD/)__ did in 2008. Amazon may be next: research suggests Americans are more likely to cut food spending than cancel their Prime subscriptions.

Amazon and other ecomm giants add food-stamp-friendly options as more Americans struggle to pay

__Take it to the bank…__ Banks kick off earnings season this week, with __[JPMorgan Chase](https://robinhood.com/stocks/JPM/)__, __[Citi](https://robinhood.com/stocks/C/)__, __[Wells Fargo](https://robinhood.com/stocks/WFC/)__, and __[Morgan Stanley](https://robinhood.com/stocks/MS/)__ dropping Q3 numbers. Last quarter’s theme: soaring interest rates. High rates are good for banks because they earn higher returns off customers’ idle cash and loans. They’re also bad for banks because they discourage borrowing, spending, and investing. Analysts expect banks will (again) report lower earnings than last year. The IPO-and-merger boom of 2021 is over, so lower deal-making revenue’s expected.

__Break out the Biscoffs…__ __[Delta’s](https://robinhood.com/stocks/DAL/)__ revenue nearly doubled last quarter thanks to strong vacay demand. Airlines are expected to report frothy sales for their latest quarter after summer excursions rebounded to prepandemic levels. But with holiday airfares set to be the priciest in five years, more Americans might just celebrate at home. Airline stocks have lost altitude this year, and the industry’s typical domestic holiday boom could fizzle (even with Europe “on sale”). We’ll see whether inflation cloud’s Delta’s forecast when it reports Thursday. 

Events

Coming up this week...

__E.T. phone home…__ more like UN phone Jerome. Last week, the United Nations [called](https://www.wsj.com/articles/u-n-calls-on-fed-other-central-banks-to-halt-interest-rate-increases-11664809202?mod=hp_lead_pos11) on the US Fed and other central banks to stop their aggressive interest-rate hikes. A UN agency warned that the global economy was “on the edge of a recession” and that further monetary tightening risks pushing it to a prolonged downturn worse than the ’08 financial crisis. As the USD has [strengthened](https://snacks.robinhood.com/newsletters/pEHJ0FjnNspUk0ENYjDzb/articles/EMyNqtovBtkAfidtByyWL/) on the back of surging rates, debt-laden developing economies are edging closer to default, and could bear the brunt of a worldwide recession.

__Elon’s albatross…__ The Elon vs. __[Twitter](https://robinhood.com/stocks/TWTR/)__ saga has a new plot twist: last week, Elon told the company he'd buy it at his original offer price of $54.20/share, after trying to back out of the deal over what he said were spam-bot issues. Now a Delaware judge has [ruled](https://snacks.robinhood.com/newsletters/60hXCjH8B3zcyai2pfzMdS/articles/1DrraCzB8m5wNXpHmzxhVl/) that Elon has until October 28 to seal the deal if he wants to avoid a trial. If key details (like: debt financing) get resolved, both sides could file a motion to end the pricey lawsuit. Twitter’s A.E. (After Elon) era could begin a new chapter for the internet’s “town square.”

Zoom Out

Stories we’re watching...

- __[Nescrisis](https://snacks.robinhood.com/newsletters/4OhIHvQOtjoDBNhCDSlKbw/articles/6E0FO4uj0gyxj7To8w6uZq/):__ __[Nestlé](https://robinhood.com/stocks/NSRGY/)__ (aka: the world’s largest coffee company) committed $1B by 2030 to protect coffee from the climate crisis. Think: climate-change-resistant java trees and farming with regenerative methods. 
- __[#Ad](https://snacks.robinhood.com/newsletters/7r6QkT4YuZi0FJ5GbLamjI/articles/6CWFgq99gBSkXJOzzpueJO/):__ Kim Kardashian agreed to pay a $1.3M fine to settle SEC charges related to an Insta post promoting alt coin EthereumMax. The Kim crackdown is a sign that securities regulators are marking their territory in the crypto-sphere. 
- __[Gassy](https://snacks.robinhood.com/newsletters/gTMMqg6P0rsxvvaIiqo3i/articles/3WTHGVZKd0d7gHWcznstLF/):__ OPEC, Russia, and other allies will curb oil production by 2M barrels a day — the biggest cut since 2020. It’s a blow to the US and G7 allies who want low oil prices for consumers (and to punish President Putin).

ICYMI

Last week's highlights...

Amazon and other ecomm giants add food-stamp-friendly options as shoppers struggle to pay

Priced, packaged, and primed (Joshua Lott/Getty Images)

In just 48 years the world population has doubled and is on pace to hit 8B this year

👛 Amazon’s EBT economics

__Texting “jack jack”...__ Elon’s pet name for __[Twitter](https://robinhood.com/stocks/TWTR/)__ founder Jack Dorsey. Last week, a trove of texts were made public ahead of the Elon v. Twitter trial — and pet names weren’t the [cringiest](https://techcrunch.com/2022/09/29/elon-musk-texts-discovery-twitter/) revelation in Elon’s messages. The latest season of the Elon-Twitter saga heated up this week, with some Emmy-worthy plot points: 

- __NVM:__ Elon told Twitter he'd buy the company at his original offer price of $54.20 per share, after aggressively trying to back out of the deal over what he said were spam-bot issues. Musk’s legal team reportedly likely lost confidence it could win.
- __Blue bird flies:__ Twitter shares have popped 15% since Tuesday, but are still lower than Elon’s offer price (many say he’s overpaying for the struggling company). 
- __Hot court date:__ Yesterday Musk [said](https://www.cnbc.com/2022/10/06/musk-seeks-to-stop-oct-17-trial-date-to-close-twitter-deal-on-original-terms.html) he wanted Twitter to call off existing litigation so that he could close the deal this month. Twitter seems to think Musk’s team is only trying to stall again. The trial was scheduled to start on October 17, but then…

__On the next episode…__ Late yesterday a Delaware judge [ruled](https://www.cnbc.com/2022/10/06/musk-seeks-to-stop-oct-17-trial-date-to-close-twitter-deal-on-original-terms.html) that Elon has until October 28 to seal this deal if he wants to avoid a trial. If the deal doesn’t close, the trial will be moved to November. Key deets still need to be hashed out, including debt financing. If those get resolved, the two sides could file a motion to end the lawsuit (which would save both parties a pricey headache).

Wishing for an acquisition edit button (Yasin Ozturk/Getty Images)

Finale

__It could be just the beginning…__ of Twitter’s A.E. (After Elon) era. If the deal closes, a new chapter begins for the internet’s “town square.” Musk, the self-proclaimed “free-speech absolutist,” wants to loosen moderation rules — including reinstating banned accounts like former President Trump’s. He’s also suggested that an open-source algorithm could address mysteries around how posts are promoted. While some are stoked about Elon’s nebulous plans, others (including many Twitter employees) are [concerned](https://time.com/6170647/elon-musk-twitter-harassment-employees/) about the platform’s safety.

Elon Musk says he wants to close his $44B Twitter-quistion this month, but the saga isn’t over

__Ready, set, shop…__ __TikTok__ is setting the stage for users and businesses to host live shopping events. This week Gen Z’s favorite app [reportedly](https://techcrunch.com/2022/10/03/tiktok-said-to-be-launching-live-shopping-in-the-us/) signed a deal with LA-based streaming platform __TalkShopLive__. TikTok's live shopping platform launched in the UK last year but has struggled with low usage. Now it may try again stateside with TalkShopLive’s tech: 

- __QVC for the social era:__ TSL lets everyone — from __Shein__ haul influencers to amateur home chefs — host live shows. In February it teamed up with __[Walmart](https://robinhood.com/stocks/WMT/)__ for live shopping events. 
- __TalkShopLive lets__ viewers purchase goodies during and after live streams, taking a 10% commission from sellers.

__Buy my #OOTD…__ Live shopping isn’t new, but it’s much more popular in Asia. Last year, China’s live-stream shopping brought in $300B in sales, versus $11B in the US. Now American techies are trying to get in on the action. __[Amazon](https://robinhood.com/stocks/AMZN/)__ leaned on influencers to host Prime Day live streams this year, and __[Meta](https://robinhood.com/stocks/META/)__ launched a live-shopping feature in 2018 — but shut it down last month to focus on Reels. 

- __TikTok owner ByteDance__ tripled its losses last year after spending heavily to expand. Now it’s looking for fresh ways to monetize its 1B+ users.
- __Last year TikTok__ started [allowing](https://snacks.robinhood.com/newsletters/4sQYPGu7XlVaHzU9SWyAuX/) [Shopify](https://robinhood.com/stocks/SHOP/) merchants with a "TikTok for Business" account to add “shopping” tabs to their profiles and create mini storefronts.

TokShop

__You get in where you fit in…__ TikTok is already the home for beauty hauls and cooking tutorials. Now it could use TalkShopLive to fortify its shopping offerings — a draw for merchants and users. Social commerce is predicted to grow 3X as fast as traditional ecommerce over the next three years.

TikTok wants to popularize live shopping in the US as tech giants try to catch up with China’s social-commerce boom

- 🖊️ __Policy…__ Yesterday the EU expanded its Russian sanctions. The target: crypto. Companies can [no longer](https://www.coindesk.com/policy/2022/10/06/eus-russian-crypto-ban-confirmed-as-bloc-tightens-sanctions/) offer crypto wallets, accounts, or custody services to either the Russian gov or people inside the country. 
- 🤹‍♀️ __Quirky…__ Crypto winter has given rise to 12K+ "[zombie coins](https://www.bloomberg.com/news/articles/2022-10-03/more-than-12-000-crypto-coins-become-zombies-in-digital-asset-slump)." These are tokens that haven't traded *at all* for a month — but because of their decentralized nature can still stumble on (mindlessly or not). 
- 🤔 __Sus…__ Bankrupt crypto lender Celsius shocked its 1.7M users after it froze their accounts (worth $8B) in June. But in May Celsius execs [withdrew](https://www.bloomberg.com/news/articles/2022-10-06/celsius-bosses-withdrew-30-million-in-crypto-before-bankruptcy) over $20M in crypto. Alex Mashinsky stepped down as CEO last month.

Blocked

Elon Musk says he wants to close his $44B Twitter-quistion this month, but the saga isn't over

College undergrads are getting an average of 1.14 job offers before graduation — the highest since before the Great Recession

🐦‍ Twitter’s “After Elon” era

__Uh-OPEC…__ The world’s largest coalition of oil-producing countries just dealt the rest of the world a doozy: yesterday, OPEC, Russia, and other allies [agreed](https://www.cnbc.com/2022/10/05/oil-opec-imposes-deep-production-cuts-in-a-bid-to-shore-up-prices.html) to curb oil production by 2M barrels a day — the biggest cut since 2020. It’s a blow to President Biden, who’d asked OPEC members to boost production to lower US gas costs.

- __Sharp reversal:__ OPEC+ slashed production during lockdown as demand dropped. Then the group ramped up production as the global economy reopened.
- __Putin pleaser:__ While oil prices did spike after Russian President Putin’s invasion of Ukraine, they’ve fallen more than 30% in the past four months on recession fears. After yesterday’s announcement, prices are rising again — helping OPEC+ members (including Russia) but hurting consumers.

__Bundle up…__ it could be a cold winter. European energy prices have set records this year after Russia suspended EU gas deliveries. So EU countries are capping oil companies’ revenues, trying to reduce energy demand, and launching relief funds to offset the rising cost of fuel. Meanwhile, oil giants are pumping huge profits:

- __$hell:__ Last quarter __[Chevron](https://robinhood.com/stocks/CVX/)__, __[Shell](https://robinhood.com/stocks/SHEL/)__, __[TotalEnergies](https://robinhood.com/stocks/TTE/)__, and __[ExxonMobil](https://robinhood.com/stocks/XOM/)__ posted a combined record $51B in profits. Saudi juggernaut __Aramco__ nearly doubled its quarterly profit, raking in a staggering $48B.

Righty tighty (Asaad Niazi/Getty Images)

Gassy

__The global energy divide is deepening…__ The US and its G7 allies want to keep oil prices low for consumers (and to punish Putin). But Saudi Arabia, Russia, and their 21 OPEC+ allies want to keep prices high (and profits gushing) — *and* they control most oil exports. To secure their energy independence, Western countries are getting creative: Europe’s reopening closed nuclear facilities and the US is tapping its strategic reserves (short term) and investing more in renewables (long term).

OPEC+ cuts oil production despite US objections, deepening the global energy divide

__Pizza robots are on the rise…__ and even Jay-Z's giving them dough. The rapper turned VC [invested](https://fortune.com/2022/10/05/jay-z-investment-stellar-robo-pizza-truck-mvp-spacex-marcy-venture-partners/) $16.5M in __Stellar Pizza__ — a mobile robo-powered restaurant — that’s said to crank out as many as 420 (ahem) pizzas a day. Stellar's the brainchild of three former __SpaceX__ engineers, who describe their mechanical baby as a "spaceship on wheels." That ship comes with rocket-like speed: 

- __30 minutes or (way) less:__ Stellar says its pie-robot can assemble and cook a pizza in under 5 minutes. 
- __It's not (human) delivery:__ Because the resto is mobile (picture: a big truck), it can double as the delivery vehicle. 

__Metal-handcrafted…__ Stellar isn't the only up-and-comer getting into the bionic-baking biz. Both __PizzaHQ__ (New Jersey) and __Picnic Works__ (Seattle) offer some form of automated pie-assembly line. And that's just 'za: __[Chipotle](https://robinhood.com/stocks/CMG/)__ is looking to [chip-making machines](https://snacks.robinhood.com/newsletters/7tknxJYNWeFHQETXVJaHeu/articles/569KUmWnGqKyDCJAdHLbVe/) and __[Jack in the Box](https://robinhood.com/stocks/JACK/)__ embraced a french-fry bot. While the innovations may seem futuristic, the motivations appear timeless: $$. 

- __Automate profits:__ Paying workers and renting shops cost money. A robot-staffed food truck (that doubles as a kitchen) is a shiny alternative for investors looking for a bite of the restaurant biz.

Piping

__Robo-restaurants could change the dining landscape…__ but the proof will be in the pudding. Stellar's founders hype up the company's cutting-edge tech, but mechanized mobile 'za has been tried (unsuccessfully) before. Whether or not the $898B restaurant industry swaps human employees for machines may come down to whether the latter can deliver good-tasting pizza with cash-saving results.

Robot pizza maker gets VC cash as the resto biz looks to automate away labor costs

Bears preparing for hibernation can eat dozens of salmon — and gain up to 4 pounds — a day

🛢 OPEC+ deepens the energy divide

__Love the smell of Nesquik in the morning…__ more like Nescafé. [Nestlé](https://robinhood.com/stocks/NSRGY/) (aka: the world’s largest food company) is famous for sweets like Kit Kats and Toll House cookies. But it’s also the world’s largest coffee company, with brands like Nescafé, Nespresso, and __[Starbucks’](https://robinhood.com/stocks/SBUX/)__ at-home offerings (think: fridge Cold Brew). Now it wants to save the java beans:

- __Nestlé committed $1B__ by 2030 to [protect](https://www.bloomberg.com/news/articles/2022-10-04/nestle-commits-1-billion-to-protect-coffee-from-climate-threat) coffee from the climate crisis and extreme weather. The investment is meant to help its suppliers adopt more sustainable farming methods.
- __Think:__ Replacing coffee trees with climate-change-resistant varieties and offering financial incentives to farmers who responsibly source beans. Nescafé has 500K farmers.
- __Wild stat:__ 5.5K+ cups of Nescafé are sipped worldwide every *second*. Coffee and other non-milk bevs make up a third of Nestlé’s sales. 

__The world’s favorite jitter juice…__ is in trouble. Global coffee revenue is over $400B/year, but the market could lose steam. Coffee crops are grown near the drought- and hurricane-prone equatorial belt. Rising temps could reduce coffee-growing land area by as much as half by 2050. Meanwhile, severe frosts in Brazil already slashed last year’s crop. 

- __Caffeine crisis:__ The head of Nestlé’s coffee biz said, “We will not have viable coffee farms in 20 or 30 years if we don’t take action now.”
- __With its $1B investment,__ Nescafé aims to have half of its coffee farmed with regenerative methods by 2030.

A wheelbarrow of joe (Chaideer Mahyuddin/Getty Images)

Nescrisis

__Coffee’s the tip of the iceberg…__ It isn’t the only crop facing climate threats. Corn-crop yields may decline by nearly 25% by this century, NASA [says](https://climate.nasa.gov/news/3124/global-climate-change-impact-on-crops-expected-within-10-years-nasa-study-finds/#:~:text=en%20espa%C3%B1ol%20aqui.-,Climate%20change%20may%20affect%20the%20production%20of%20maize%20(corn)%20and,see%20growth%20of%20about%2017%25.). Wine, almonds, peaches, and rice are also being affected. Companies may have to step in where governments have been slow to act to protect their products — and the world’s food supply.

Nestlé commits $1B to saving coffee from the climate crisis as trouble brews for java crops

__Sounds like a metal band…__ actually a water brand. __Liquid Death__ is on pace for unicorn status after taking the agua industry by storm. The canned-water brand launched in 2019 with mountain water in skull-adorned metal cans (so edgy). Tagline: “Murder your thirst.” It started with a website and is now sold everywhere from Whole Foods to tattoo parlors. This year Liquid Death is on track to [triple](https://www.cnn.com/2022/10/04/business/liquid-death-water-valuation) its sales to $130M. Investors want a sip:

- __Big backers:__ Liquid Death hit a $700M valuation thanks to its latest $70M cash infusion from investors like __Science Ventures__, __[Live Nation](https://robinhood.com/stocks/LYV/)__, and… __Swedish House Mafia__.
- __H20-fluencer:__ Liquid Death is the most followed water brand on __TikTok__ (nearly 3M followers) and the second most followed on Insta.

__Bubbly water > boozy brews…__ Alcohol-free drinks have sparkled as more Americans shift to a more health-conscious lifestyle. Non-alcoholic-spirit sales (think: boozeless beer) 7X’d from 2020 to 2021, and bottled water has outsold soft drinks since 2016. Fun fact: 74% of people say they’ll turn to other packaged drinks if bottled water isn’t available (read: shunning the tap).

- __Since Liquid Death launched__ flavored options like “Berry It Alive” in March, its online sales have grown 40%, helping it compete with La Croix and [Pepsi's](https://robinhood.com/stocks/PEP/) Bubly.

Quench

__The brand is in the packaging…__ and sometimes that matters *more* than what’s in the package. Liquid Death took an extremely basic product (water) and made it cool. Similarly, Dollar Shave Club (also backed by Science Ventures) used viral videos and simple brown packaging to make razors trendy. Thanks to its novel strategy, it’s possible Liquid Death could even go public at a time when IPO thirst is dry.

Viral canned-water biz Liquid Death scores a $700M valuation as booze-less brands sparkle

Trees are the longest-living organisms on Earth, with the oldest species living 5K+ years

☕ Nestlé’s coffee climate crisis

__Keeping up with the crypto…__ Kim K is used to making headlines, but this one’s gonna cost her. Kardashian has agreed to [pay](https://www.sec.gov/news/press-release/2022-183) the US Securities and Exchange Commission a $1.3M fine to settle charges related to an Insta post she’d made promoting alt coin EthereumMax (not to be confused with ether). Kim used the #ad hashtag but failed to disclose she was paid $250K to promote the coin to her 330M+ followers — a violation of the Securities Act. The reality star turned billionaire entrepreneur was also barred from promoting crypto for three years. She’s not the first to get SEC attention:

- __Bad-vertising:__ In 2018 Floyd Mayweather and DJ Khaled had to pay hundreds of thousands of dollars for failing to disclose how much they were paid to promote initial coin offerings — the [first](https://www.sec.gov/news/press-release/2018-268) time the SEC dished out an ICO-related charge.

__Crypto’s red carpet…__ From Matt Damon to LeBron James to Gwyneth Paltrow, celebs have jumped on the crypto bandwagon, with some collecting big checks to promote digi-assets. Regulators are paying more attention to celeb crypto promos now that scams are proliferating: crypto scams have cost people $1B+ since last year, with nearly half of the victims saying they first heard about crypto on social media.

Crypto Kim gets shaded (Daniele Venturelli/Getty Images)

__Regulators are marking their territory…__ Although industry insiders argue that crypto isn't a security, the SEC increasingly appears to disagree — and the US’s top regulators are starting to hold it accountable to the same rules. SEC Chair Gary Gensler [tweeted](https://twitter.com/GaryGensler/status/1576897535427448832) to warn investors against celeb- and influencer-endorsed assets. Kim’s coin-related fine is a splashy indication of regulators marking their ground.

Kim Kardashian agreed to pay a $1.3M fine as the SEC cracks down on celeb crypto promos

__Credit where it’s due…__ __[Credit Suisse](https://robinhood.com/stocks/CS/)__ pulled off a rocky [rebound](https://www.cnbc.com/2022/10/03/credit-suisse-seeking-to-assure-investors-amid-financial-concerns-ft.html) yesterday, but it’s not out of the woods just yet. On Friday the Swiss bank’s credit risk hit a record high after liquidity rumors spread, spooking investors. CEO Ulrich Koerner later told investors the bank has a $100B capital buffer, but the reassurance backfired: 

- __Shaky shares:__ C-Suisse’s stock [plunged](https://www.cnbc.com/2022/10/03/credit-suisse-seeking-to-assure-investors-amid-financial-concerns-ft.html) as much as 12% yesterday morning to a record low, before mostly rebounding. But the bank’s stock is still down 60% this year, and it’s struggling to regain investors’ confidence. 
- __It’s no “Lehman moment”:__ Analysts say C-Suisse is unlikely to default on investors, much less pose a systemic risk to wider markets. But the bank faces an uphill battle to claw back this year’s steep losses.

__Risky business…__ Credit Suisse has a well-earned reputation for taking big risks: the bank lost over $7B on investments in hedge fund Archegos and lender Greensill, both of which collapsed last year. Cue: C-Suisse posted a huge loss again last quarter (while rival investment banks __[UBS](https://robinhood.com/stocks/UBS/)__, __[Morgan Stanley](https://robinhood.com/stocks/MS/)__, and __[Goldman Sachs](https://robinhood.com/stocks/GS/)__ posted profits). Now investors are anxiously waiting for Credit Suisse to announce a restructuring plan.

Teeter

__Confidence is a valuable asset…__ and Credit Suisse may have overdrafted from its investors. When the beleaguered bank announces its turnaround plan — expected this month — analysts say it may need to raise up to $4B to finance its restructuring. But given the floundering finance giant’s recent track record, investors may be reluctant to fork over more cash.

Credit Suisse shares swing wildly as skeptical investors await restructuring plans

Manhattan’s EV-charging sites outnumber its gas stations 10-to-1

⛔️ Kim K crypto crackdown

__Great to be a greenback…__ When you exchange US dollars for euros, you’re going to get a lot more bang for your buck — literally. The USD is the strongest it’s been in two decades relative to other currencies. The British pound hit a record low against the USD last week, and as of Friday the dollar was *stronger* than the euro (which had been more valuable for decades). 

- __Driving dollar domination:__ The Fed’s aggressive interest rate hikes have made the USD even more attractive to hold, since investors can earn higher returns. 
- __The USD's stable rep means__ it’s historically been viewed as a safe haven, especially during tumultuous times (cough, like now).

__Two sided-coin…__  The USD has long been used as the world's reserve currency for international purchases (~40% percent of transactions are done in $$). That’s why its strength has global implications:

__Good for…__
- __American tourists:__ Europe is “on sale.” It’s  cheaper for Americans to [frolic](https://www.cnbc.com/2022/09/29/summers-over-but-the-european-travel-season-isnt.html) around Rome, London, and Bali. On the flip side, a strong dollar discourages tourism to the US. 
- __US importers:__ Foreign imports are "on sale” for American companies (think: cheaper Chardonnay in Kansas). Lower prices on Chinese imports are starting to help cool US inflation. On the flip side: it’s bad for US exporters (pricier Pop-Tarts for Paris).

__Bad for…__ 
- __Multinationals:__ S&P 500 companies earned 29% of their sales abroad last year — now foreign earnings are worth less in USD. S&P tech giants earn ~60% of their revenue from abroad (for Apple, it’s nearly two-thirds of sales). Last quarter, __[IBM](https://robinhood.com/stocks/IBM/)__ , __[Netflix](https://robinhood.com/stocks/NFLX/)__, __[J&J](https://robinhood.com/stocks/JNJ/)__, and __[Philip Morris](https://robinhood.com/stocks/PM/)__ together lost billions in revenue on the strong dollar. 
- __The rest of the world:__ It’s raising the cost of imported food, medicine, and fuel — hitting emerging economies like Nigeria and Somalia especially hard. It’s making debt pricier (since many countries have to pay back IOUs in USDs). Debt-laden Argentina and Egypt are closer to default.

Pieces of the dollar puzzle (John Lund/Getty Images)

Washington

__A strength can cause weakness…__ While the dollar’s strength is helping tamp US inflation, it’s *feeding* global inflation and raising the likelihood of financial crises. Still, most economists say the global pain would be worse if the Fed failed to cool inflation at home.

The US dollar hits its strongest level in decades, creating a win-lose situation for global markets

__Skinny jeans are out…__ But __[Levi](https://robinhood.com/stocks/LEVI/)__ is in (thanks, Gen Z). Last quarter, the denim dynamo’s sales [jumped](https://www.cnbc.com/2022/06/01/levi-strauss-co-levi-reaffirms-2022-outlook-boosts-guidance.html) 15% as shoppers added more casual fits to their office wardrobes. Demand was also strong for Levi’s khaki-focused Dockers brand and its athleisure-centric Beyond Yoga banner. But despite loose-fit love, inflation could distress earnings: Levi’s profit fell last quarter. The blue jean baby expects to post higher sales Wednesday, but profits may get skinnier.

__Hot potatoes…__ Frozen foods are on a sizzling streak: shares of potato powerhouse __[Lamb Weston](https://robinhood.com/stocks/LW/)__ and broccoli behemoth __[ConAgra](https://robinhood.com/stocks/CAG/)__ have outperformed the market this year as cost-conscious shoppers embrace the frozen food aisle over pricier fresh foods and restaurant fare. Lamb Weston fried up record sales last quarter thanks to price hikes coupled with healthy demand. Conagra plans to continue bumping prices to defrost margins as inflation bites into corporate earnings. We’ll see if frozen demand stayed hot when they report this week.

__Robo-guac…__ Siri and Alexa may be smart, but __[Chipotle’s](https://robinhood.com/stocks/CMG/)__ new robot can *cook*. Next month, the burrito chain will [test](https://www.cnbc.com/2022/09/27/chipotle-mexican-grill-will-test-robotic-tortilla-chip-maker-.html) a kitchen bot named Chippy that makes (and seasons) tortilla chips. The robot is made by __Miso Robotics__, which has also designed kitchen bots for __White Castle__ and Buffalo Wild Wings. As restaurants continue struggling to fill positions, fast-casual giants like __[Starbucks](https://robinhood.com/stocks/CAG/)__, Panera, and __[McDonald’s](https://robinhood.com/stocks/MCD/)__ have begun automating operations. That may lead to fatter profits for companies long-term, but fewer jobs for workers. 

__Feeling lucky…__ Casino stocks like __[Wynn](https://robinhood.com/stocks/WYNN/)__ and __[Las Vegas Sands](https://robinhood.com/stocks/LVS/)__ popped last week as China’s gambling capital prepared to ease Covid restrictions. Last week, Macau (the world's largest gambling hub) said it would start accepting mainland Chinese tourists as soon as next month. Back in 2019, Macau earned 6X the annual revenue of Vegas and accounted for over half of business from US casino giants. Global gaming revenue this year is expected to be just 14% of pre-pandemic levels, but Macau’s reopening could boost the recovery.

- __[Tried](https://snacks.robinhood.com/newsletters/4MhxLginzeMCyaP2Wt1iqx/articles/4OrC5VySDqKBFYh3eeWrBV/):__ __[Biogen](https://robinhood.com/stocks/BIIB/)__ said its experimental Alzheimer’s drug slowed cognitive decline in a large trial, boosting the drug’s likelihood of snagging FDA approval (which could lead to blockbuster sales). 
- __[Range](https://snacks.robinhood.com/newsletters/7tknxJYNWeFHQETXVJaHeu/articles/L8jamfVtEAZ4D5euk9GKw/):__ Rental-car staple __[Hertz](https://robinhood.com/stocks/HTZ/)__ is partnering with oil titan __[BP](https://robinhood.com/stocks/BP/)__ to install thousands of EV chargers. The infrastructure could help address the top EV barriers: price and range anxiety. 
- __[Verch](https://snacks.robinhood.com/newsletters/5B5IMk7SFR63CWUIdkWq8t/articles/4fdKCwgYvWe2roy1DoD2IF/):__  __[Walmart](https://robinhood.com/stocks/WMT/)__ launched two “digital lands” on __[Roblox](https://robinhood.com/stocks/RBLX/)__ as brands like __[Nike](https://robinhood.com/stocks/NKE/)__ bet on the __[Meta](https://robinhood.com/stocks/META/)__ competitor. Meta's Horizon Worlds had 300K monthly users as of February versus Roblox’s 60M daily actives.

The USD hits its strongest level in decades, creating a win-lose situation for global markets

Hurricane Ian could be Florida’s costliest storm ever