__Winter is coming...__ Markets were shocked on Friday after Russia indefinitely shut down natural-gas flows to Europe. Kremlin-controlled __Gazprom__ (the [biggest](https://www.investopedia.com/articles/markets/082615/5-biggest-russian-natural-gas-companies.asp) natural-gas company) halted gas supplies to Germany from the Nord Stream 1 pipeline, a key gas artery for Europe. It’s a worst-case scenario for Europe as it races to fill gas-storage facilities to keep homes warm this winter.

- __Russia blamed__ the halt on economic sanctions imposed by the West, saying they led to technical problems. Russia said flows would resume if sanctions were lifted.
- __Europe says__ Russia’s weaponizing energy to force the West to remove sanctions and punish it for supporting Ukraine.
- __Coincidence?__ The move came after the G7 agreed to impose a price cap on Russian oil and the Biden admin [asked](https://www.nytimes.com/2022/09/03/world/europe/the-biden-administration-asks-congress-for-13-7-billion-in-additional-aid-for-ukraine-underscoring-its-resolve.html) Congress for $13.7B in extra aid for Ukraine.

__Putin-flation...__ Gas prices have been falling for months, but they [spiked](https://www.ft.com/content/3fc13e81-ea91-4d4e-9184-4ae9b11f37c8) after Russia turned off the taps (and the euro hit a 20-year low). Not helping: OPEC [agreed](https://www.cnn.com/2022/09/05/energy/opec-oil-gas-prices/index.html) to cut oil production next month. Nord Stream is key for Europe and its largest economy, Germany. But ever since Russia invaded Ukraine, the EU’s had to wean itself off the pipeline.

- __Before the war:__ Russia was Europe’s largest energy supplier, with Nord Stream accounting for *over half* of Germany's gas imports.
- __Since the war began:__ Russia has dramatically cut gas flows to Europe. Before Friday’s news, Gazprom had already slashed Nord Stream flows to 20% of capacity.

Gazprom causes gas problems (NIKOLAY DOYCHINOV/ Getty Images)

Putinflation

__Energy is a powerful weapon…__ and it doesn’t have to be nuclear. By zapping Europe’s gas supply, Russia is attacking its economic heart. A winter shortage could tip Europe’s ailing economy into a full recession — and cause a collapse in energy trading. Fortunately, Europe’s gas-storage levels have surged ahead of targets, which could help it avoid having to ration. But consumers and the economy could take a major hit from record prices.

Russia cut off gas flows to Europe, using energy as an economic weapon ahead of winter

Dow Jones

S&P 500

Nasdaq

Bitcoin

Liz Truss became the third female prime minister in British history yesterday

⛽ Russia’s gas halt 

__Post-Labor Day labor update...__ While you were packing coolers and beach towels for the unofficial "last weekend of summer," the Labor Department was packing stats. The August jobs report [showed](https://www.wsj.com/articles/august-jobs-report-unemployment-rate-economy-growth-2022-11662062706) slowing job and wage growth — but a still historically *strong* labor market.

- __The US added 315K jobs,__ slightly lower than expected and the lowest monthly gain since April 2021. FYI: in July the US gained 526K roles.
- __The unemployment rate jumped__ to 3.7% from 3.5% in July, mostly because more people started looking for work.
- __Average hourly earnings grew__ 5.2% from a year earlier, slowing from July's pace.

__Investors are eating the porridge...__ Some are calling this a "goldilocks" report because it's not too hot, not too cold (but juuust right). While the labor market is cooling, job growth is still way higher than prepandemic levels, and unemployment is just off its half-century low of 3.5%.

- __*Bad news = good news*__ in this inflationary economy. Investors were relieved jobs didn’t come in too hot, which could compel the Fed to be more aggro with rate hikes. 
- __Terrible news = bad news.__ Investors were relieved labor didn’t slow *too* much, suggesting the Fed’s flation-fighting hasn’t gone too far (yet).
- __Still:__ While job openings outnumber available workers nearly 2-to-1, layoffs are making headlines. __[Ford](https://robinhood.com/stocks/F/)__, __[T-Mobile](https://robinhood.com/stocks/TMUS/)__, __[Wayfair](https://robinhood.com/stocks/W/)__, and __[Snap](https://robinhood.com/stocks/SNAP/)__ have all announced cuts.

Breakfast temp: just right (Paul Bersebach/Getty Images)

Werk

__Pain’s more bearable when it’s predictable…__ This report keeps the Fed on track to raise interest rates by 0.75 or 0.5 percentage points this month. Fed chair Jerome Powell [said](https://snacks.robinhood.com/newsletters/3Xy3kid2cGsNJewaxEmlYl/articles/6Y0wD0l9WHev2iy2va9eoS/) he plans to keep hiking till inflation’s under control. While gas and food prices have come down, they’re still near 40-year highs. JPow did warn there’s economic and labor-market pain ahead. It takes time for all the consequences of higher rates to manifest, but expectations of pain could help reduce market shocks.

The “goldilocks” August jobs report is warm enough to satisfy investors, but a bigger slowdown could be ahead

__The great American battery boom…__ Companies are investing billions in the US battery biz, and it’s all for EVs: last week __[Honda](https://robinhood.com/stocks/HMC/)__ and __LG Energy__ announced plans to [build](https://techcrunch.com/2022/08/29/honda-and-lg-energy-plan-to-build-a-4-4-billion-lithium-ion-plant-in-the-us/) a $4.4B US EV battery plant, __[Toyota](https://robinhood.com/stocks/TM/)__ pledged an extra $2.5B to its US battery factory, and __Bosch__ said it'll spend $200M to build fuel cells in South Carolina. __[GM](https://robinhood.com/stocks/GM/)__, __[Stellantis](https://robinhood.com/stocks/STLA/)__, and __Hyundai__ have committed billions to made-in-USA batteries, taking advantage of billions in EV funding through President Biden’s infrastructure and climate bills to gain juice in the e-race. 

__Congress has crypto q’s…__ The SEC's not the only one [demanding](https://snacks.robinhood.com/newsletters/1wtJg97QxjQGWOy95mSzca/articles/5b0PqoHAz9hncG9uOSIyUF/) answers from crypto's top players. Last week the House Committee on Oversight and Reform sent [letters](https://www.cnbc.com/2022/08/30/coinbase-ftx-binance-get-inquiries-from-congress-on-crypto-scams.html) to __FTX__, __Binance__, and __[Coinbase](https://robinhood.com/stocks/COIN/)__ asking how they’re protecting customers from scams (industry-wide, $1B+ has been reported stolen since 2021). The committee also hit up regulators and the Treasury Department to find out what they’re doing to keep consumers safe. Reply due date: September 12. Meanwhile, a bill to regulate stablecoins is heading to the CA governor's desk. Legislators may be done sitting on the sidelines.

Zoom Out

Stories we’re watching...

__Canned peas FTW…__ Budgets are tight, but America still has to eat. __[Kroger](https://robinhood.com/stocks/KR/)__ had a record year in 2021 and sales jumped again last quarter as buyers kept stocking up on fresh veggies despite hot prices. Kroger’s online sales have doubled in the past two years, and its shares have risen 7% this year while the S&P 500 has slid 18%. But soaring grocery prices have made it seem (relatively) less inexpensive for some to dine out, which could push some shoppers to ditch grocery stores for fast-food joints. We’ll see if inflation is biting Kroger’s profits when it reports Friday. 

__Lots of balls in the air…__ It’s a big week for pro sports. The NFL season kicks off Thursday and the US Open finishes Sunday. But today a lot of athletes earn more *off* the field: Serena Williams, who just played her final match, has earned $95M in career prizes — and $350M from sponsors. Billionaire LeBron James has earned twice as much from investments and endorsements as he has from his NBA salary. As the celeb-prenuer trend intensifies, Serena, LeBron, and NFL stars like Aaron Rodgers have also launched their own VC funds.

Events

Coming up this week...

- __[Yoda](https://snacks.robinhood.com/newsletters/7uCGMJLhs14s1sypnfbMZy/articles/1pR9LPf91XLbRQokb9oax3/):__ __[Disney’s](https://robinhood.com/stocks/DIS/)__ reportedly exploring a Prime-style membership to give Mickey fans special perks and cross-sell its offerings across streaming, merch, and theme parks. 
- __[Suds](https://snacks.robinhood.com/newsletters/70AWukI131xlHFLP88EM8T/articles/6EIEdveXK2qaTduU5Hv0ex/):__ __[Bed Bath & Beyond](https://robinhood.com/stocks/BBBY/)__ shares tanked last week after the cash-needy retailer said it would slash costs by closing 150 stores and cutting 20% of workers. 
- __[Fluffy](https://snacks.robinhood.com/newsletters/7uCGMJLhs14s1sypnfbMZy/articles/79Rlso2ot9nMNwcMKx6B6e/):__ __[Petco](https://robinhood.com/stocks/WOOF/)__ and __[Chewy](https://robinhood.com/stocks/CHWY/)__ said pet owners aren’t trading down on fancy foods for their furries. Despite #flation, owners are splurging on gourmet meals (think: doggy Clif bars). 

ICYMI

Last week's highlights...

The “goldilocks” jobs report is warm enough for investors, but there could be pain ahead

The International Space Station is closer to Earth than San Francisco is to LA (and there’s way less traffic)

🥣 The “goldilocks” jobs report

__(Yoda voice) “Sell more stuff, you will”…__ A new force is awakening in the __[Disney](https://robinhood.com/stocks/DIS/)__-verse. Yesterday The __Wall Street Journal__ [reported](https://www.wsj.com/articles/disney-explores-amazon-prime-like-membership-program-to-offer-discounts-and-perks-11661978329?mod=business_lead_pos6) that the House of Mouse is exploring an __[Amazon](https://robinhood.com/stocks/AMZN/)__ Prime-style membership (a Disney adult’s dream). It could give fans perks and discounts — and give Disney a new way to promote its offerings and boost loyalty. 

- __Expanding (biz) empire:__ A membership program could tie together Disney’s streaming content (think: the new “Obi-Wan Kenobi” series), products (think: toy lightsabers), and experiences (think: “Star Wars” rides at Disneyworld). 
- __Integrated experience:__ Disney+ is said to be building tech that lets viewers order products using in-show QR codes. So in the future subscribers could book a Disneyworld trip and buy members-only merch without peeling their eyes off Yoda bae.

__Membership mania…__ Disney isn’t the only one taking a page from the Prime playbook: titans like __[Apple](https://robinhood.com/stocks/AAPL/)__ and __[Walmart](https://robinhood.com/stocks/WMT/)__ have launched subscription bundles in recent years to boost loyalty and sales. Memberships give companies tons of customer data, which helps them to strategically upsell.

- __Powerful perks:__ Earlier this month Walmart said it would add __[Paramount+](https://robinhood.com/stocks/PARA/)__ streaming to sweeten the deal for its $98/year Walmart+ membership program.
- __Subs for all:__ Disney already has a membership for superfans ($100-$130/year). But the new program would target more casual customers.

Dreaming of Baby Yoda same-day delivery (Chukrut Budrul/Getty Images)

Yoda

__Memberships are peak “flywheel”...__ Disney CEO Bob Chapek has said he wants to use his company’s “franchise flywheel” to unlock fresh ways to cross-sell products. Translation: make fan-favorite franchises like “Star Wars,” “Toy Story,” and the Marvel Cinematic Universe even more lucrative by converting fans into loyal subscribers — and generate greater consistent monthly revenue.

Disney is reportedly exploring a Prime-style membership to cross-sell products and experiences

__Kroger canned peas for your uncle...__ grass-fed lamb and organic sweet-potato kibble for Fluffy. Americans love pampering their pets, but we thought inflation would take that down a notch. While consumers have started trading down from name-brand groceries to generic labels for *themselves* (think: __[Kroger](https://robinhood.com/stocks/KR/)__ bread vs. Nature’s Own), they're still feeding their pets premium chow:

- __[Petco](https://robinhood.com/stocks/WOOF/) and [Chewy](https://robinhood.com/stocks/CHWY/)__ said pet owners aren't trading down from fancy foods for their furry friends. Owners continue to pamper pets with increasingly human-ified foods.
- __Fancy Fido:__ Petco recently teamed up with Clif to make a version of its power bar for pets and [launched](https://www.prnewswire.com/news-releases/petco-expands-popular-wholehearted-line-with-new-human-grade-fresh-food-for-dogs-301611352.html) a line of frozen human-grade meals for dogs.
- __*It’s the paws for me…*__ Petco’s CEO said that Gen Z and millennial consumers are leading the growing demand for pet health and wellness products.

__Safeway frozen pizza for Paul…__ seared salmon for Princess. Petco’s CEO said consumers are increasingly seeking out “fresh, human-grade food for all members of the family” (we’d hope the human ones, at least). Still, both Petco and Chewy saw slowing demand for lucrative goodies like chew toys and leashes and bigger-ticket items like crates and beds.

- __Chewy stock fell Monday__ after it reported 13% year-over-year sales growth (lower than expected). It cut its sales outlook as consumers spent less on discretionary items. 
- __Petco also lowered__ its annual forecast as #flation curbed spending on non-food goodies.

Furflation

__Consumers hate skimping on dependents…__ Many would rather cut back on personal purchases than trade down on helpless little ones. It’s true for pets and (unsurprisingly) truer for babies. The global baby-care market is [expected](https://www.prnewswire.com/news-releases/baby-care-products-market-to-reach-58-8-billion-globally-by-2031-at-4-5-cagr-allied-market-research-301601759.html) to hit $59B by 2031, from $38B last year. And despite __[Bed Bath & Beyond’s](https://robinhood.com/stocks/BBBY/)__ [slumping](https://snacks.robinhood.com/newsletters/70AWukI131xlHFLP88EM8T/articles/6EIEdveXK2qaTduU5Hv0ex/) sales, last year its prized Buybuy Baby brand saw [20%](https://www.bloomberg.com/news/articles/2022-08-25/bed-bath-beyond-s-grasp-for-cash-puts-baby-brand-on-the-line) growth.

Petco and Chewy say consumers aren’t trading down on fancy pet food, despite ’flation

Disney is reportedly exploring a Prime-style membership to cross-sell products and shows

It's been more than 100 days since a US company raised over $25M in an IPO

🎡 Disney… Prime?

__Missing the coupon catalog...__ It's back-to-school season, but dorm staple __[Bed Bath & Beyond's](https://robinhood.com/stocks/BBBY/)__ already flunked the semester. Shares of the struggling home goods retailer sank 21% yesterday after it revealed its plan to cut costs and raise cash. BB&B is:

- __Closing 150 of its namesake stores:__ As of May, it had 955 stores, including Buybuy Baby. Total sales plunged 26% last quarter — even worse than other recent quarterly drops.
- __Slashing 20% of its workforce:__ The cost-cutting attempt comes as BB&B burns through its cash reserves: it ended May with just $100M on hand vs. $1.1B a year earlier.
- __Raising $500M in financing:__ BB&B said it secured the $$ to brace its business after going through $325M last quarter. It also [filed](https://www.cnbc.com/2022/08/31/bed-bath-beyond-shares-crater-after-meme-stock-files-share-offering-of-undisclosed-amount.html) to sell an undisclosed # of its shares.

__Fitted sheet on a twin XL mattress…__ Bed Bath has bigger problems. In April it said it lost out on $175M in sales due to out-of-stock items. In June, BB&B ousted its ex-CEO for failing to fix its misfortunes. And last month, activist investor Ryan Cohen sold his entire BB&B stake. 

- __Pivot:__ As part of an unsuccessful turnaround effort, BB&B aggressively expanded into private-label brands, launching nine since last spring. 
- __Fail:__ BB&B thought exclusive brands could help it gain a competitive edge, but it led to some shoppers struggling to find the recognizable national brands they actually wanted.

Beyond’s big bummer (Joe Raedle/Getty Images)

Flunk

__Private labels can hurt public love…__ Private labels like __[Costco’s](https://robinhood.com/stocks/COST/)__ Kirkland and __[Walmart’s](https://robinhood.com/stocks/WMT/)__ Great Value brands can boost affordability for consumers and fatten profit margins for companies. But they can also alienate consumers if not done right: BB&B says it’ll quit three of its house brands including Haven and slash inventory on others to refocus on brand names like Cuisinart and Oxo.

Bed Bath & Beyond tanks after unveiling a plan to raise cash, featuring store closures and layoffs

__[Snap's](https://robinhood.com/stocks/SNAP/) growth cracked…__ then its stock popped. Snap, the social giant responsible for popularizing disappearing messages, is [cutting 20%](https://www.cnbc.com/2022/08/31/snap-confirms-20percent-job-cuts-and-announces-business-restructuring-.html) of its 6K+ employees. CEO Evan Spiegel said the self-described camera company may suffer slow revenue growth into next year. To cut costs further, Snap’s scrapping: the "Pixy" photo drone, Snap Originals premium shows, and Snap Games. The stock soared as much as 15% after the news. Meanwhile: __[Netflix](https://robinhood.com/stocks/NFLX/)__ just swiped two Snap execs to lead its fledgling [ads biz](https://snacks.robinhood.com/newsletters/1hJKveGEOmvpzuLtfVejiF/articles/43M2Oild3MGMPYMecA8Q7K/) (awk). 

__The social biz sours…__ as the ads meal ticket sags. Snap's not the only social staple feeling the pain. __[Meta](https://robinhood.com/stocks/META/)__ froze some hiring in May, and in July reported yet another quarter of declining sales as Facebook ads slump. __[Twitter](https://robinhood.com/stocks/TWTR/)__ "significantly" slowed hiring, laid off 30% of its recruiters in July, and last month told employees their bonuses are at risk. A few things eating into ad revenue:

- __iOMess:__ __[Apple's](https://robinhood.com/stocks/AAPL/)__ iOS [privacy push](https://snacks.robinhood.com/newsletters/3pnV87VuDPifCjtp4W4gHh/articles/7vbuNAkTTZcIt3oAQiUaOr/) made profitable ad targeting a lot harder. 
- __Economean:__ #Flation and rising interest rates cut into advertisers' budgets.
- __TikToffed:__ Competition from TikTok means a smaller slice of the ad-spend pie.

Snapped

__Socials are going basic…__ because times are complicated. Nice-to-haves like camera drones and original content may be top priorities when the cash is flowing, but as the economic outlook darkens, social cos are cutting back. In the hypercompetitive tech world, slashing innovation today risks irrelevance tomorrow — a fact likely on Meta's mind as it chugs full steam ahead into the metaverse (at least it has $40B in cash reserves to fall back on).

Snap slashes its workforce as social titans struggle to revive their profit puppy lifeline: ads

Bed Bath & Beyond tanks after unveiling a plan to raise cash, featuring closures and layoffs

During World War II, M&M's were exclusively sold to the US military

🛁 Bed Bath’s cash crunch

__A proper(ty) predicament…__ China’s growth forecasts are getting slashed as its property market wavers. FYI: up to three-quarters of China’s household wealth is in real estate. Home sales have slipped for 11 months straight (China’s longest slump on record) while property prices have tanked. The US may be in a housing recession, but China is in a full-on property-market *depression*.

- __Profits:__ __[Country Garden](https://robinhood.com/stocks/CTRYY/)__, China’s biggest developer, saw profits plunge 96% in the first half of the year. __Evergrande__, China’s second-largest developer with $300B in debt, defaulted on its US bonds in December.
- __Protests:__ Hundreds of thousands of Chinese homebuyers are refusing to pay their mortgages because of building delays and sinking property prices. 
- __Plan:__ To spur investment, China’s central bank slashed the five-year mortgage rate by 15 basis points, matching its biggest cut on record.

__Beyond real estate…__ China’s tech sector is slowing after intense Covid crackdowns and regulatory heat (think: big fines). __[Amazon](https://robinhood.com/stocks/AMZN/)__ rival __[Alibaba](https://sg.robinhood.com/ls/click?upn=6fntGirSE5selsQKrSSUHk6R8tCrM-2FUICq73HMQolwUPMmgwBRA9jrXSNGeB0n01BlnW_tN0j2bXf5PlAIJm8wjiAodXx1-2FSAXBw5H8-2Ft0ON7Ae4RkbHaaUxugO5tQJUyM9VLbnUo-2FvQBNIAytdR6xxsCFCtkao0p9V-2FYeo1n4inYuLDtlKHjZNY0fY8kzrpbV7GNNbui7wbPCJkheuffMRD6-2F7vtDgsD2JmGtT51OHkjSKjNseSOfmyAzyLauZ3sFR4bBJWMpjGllRqEAd5Nc4FHz76C-2F95zBhSh0VYK3TZpPo9VPrFolnLeaD8H2HmH-2Bf8KLaXdxly34Qk10yqyovcPYMeOt-2FOISrkzw9yB6V7D51yuoTIT0iX78oWXsk3W-2FJtiSNatBpxb-2BearN33xiyfkP4vAqwkyl4ue-2BRMSgLRPQ07nt2DgQKxL7-2FOSxT2X7dBJIfhM3t6KkYziAZ1OIRz3Ip1CMgtBM3-2BF3jDASErWOOG6-2Fk3wL56RO2bn6B8KDOYL0Ya3IX4WGOtaTQKOS-2BnYyeikaZUQ54o8IAPZMfFDDE95jw2jTWy-2FeEL379qHiKg20njPfXOpNtaXTgXWOmbnMLjKfukN6OyAQjeCcYsKQO7A8cNQ-2FwoZqW2KiJAoJB2RFyEE7Sjbpevchs5IhqsXsB50ZAq54IZcnivIX-2BobNUA-3D)__ and __[Tesla](https://robinhood.com/stocks/TSLA/)__ competitor __[Xpeng](https://sg.robinhood.com/ls/click?upn=6fntGirSE5selsQKrSSUHk6R8tCrM-2FUICq73HMQolwXOLexyLHOMKFaxuMxcc33-2FK_7q_tN0j2bXf5PlAIJm8wjiAodXx1-2FSAXBw5H8-2Ft0ON7Ae4RkbHaaUxugO5tQJUyM9VLbnUo-2FvQBNIAytdR6xxsCFCtkao0p9V-2FYeo1n4inYuLDtlKHjZNY0fY8kzrpbV7GNNbui7wbPCJkheuffMRD6-2F7vtDgsD2JmGtT51OHkjSKjNseSOfmyAzyLauZ3sFR4bBJWMpjGllRqEAd5Nc4FHz76C-2F95zBhSh0VYK3TZpPo9VPrFolnLeaD8H2HmH-2Bf8KLaXdxly34Qk10yqyovcPYMeOt-2FOISrkzw9yB6V7D51yuoTIT0iX78oWXsk3W-2FJtiSNatBpxb-2BearN33xiyfkPysfVRVnyh-2B9HNFRK27apLjWw6OaByiyDWP7oK247V8G41hGWidKPnDhOYcp6ySLze4QjvGj-2F3xsWO69MYlXhThQzVyhpntkn1KjJn57lLVEFCAVf0LKgA60ruLGE6PGRNFxtPXw67HLGmV7XAYZxmK8N5rRoAH9ZOOgjBiOFEHDsDMpMGfJWwz989Yd6lJwZqqWD1W-2F2yBOZAie4BA6xt68KiFmvQ3-2FDC9-2BOV-2FWbvrnNjSXLQtOCtWFzBugVjjmz1sqEKIK5BgZC9ItYjxrI3U-3D)__ just suffered their slowest quarterly growth ever, while gaming giant __[Tencent](https://sg.robinhood.com/ls/click?upn=6fntGirSE5selsQKrSSUHk6R8tCrM-2FUICq73HMQolwX8CZ9X1KmF4TPNVp3d-2B4JA42Ua_tN0j2bXf5PlAIJm8wjiAodXx1-2FSAXBw5H8-2Ft0ON7Ae4RkbHaaUxugO5tQJUyM9VLbnUo-2FvQBNIAytdR6xxsCFCtkao0p9V-2FYeo1n4inYuLDtlKHjZNY0fY8kzrpbV7GNNbui7wbPCJkheuffMRD6-2F7vtDgsD2JmGtT51OHkjSKjNseSOfmyAzyLauZ3sFR4bBJWMpjGllRqEAd5Nc4FHz76C-2F95zBhSh0VYK3TZpPo9VPrFolnLeaD8H2HmH-2Bf8KLaXdxly34Qk10yqyovcPYMeOt-2FOISrkzw9yB6V7D51yuoTIT0iX78oWXsk3W-2FJtiSNatBpxb-2BearN33xiyfkPxI0RhIiV3mTF0SgFU-2F50I-2FaulwFvUvFk3jKUzI9ouwf6Paitvz3GDqNUySYtGcqxumullXHrjkT5FYk-2Bw9tK5CDmEpHaM1LBcYOGNCmcFpVumZs3RXQ-2F8JHRnW-2BiegJZhpVy0sbiVuT8yNfIjTGf5CSD-2FFZAcBRqCbtPXKbGQvqKJqf1gt1u7jnWyfiWhm2blKXOlIQg-2BGBPx5Jw3M8g9NfvHaNgEzuw64foH1X6baVsxJ4bHYtJiA6lBXOOnIPeB2ZRwhP6xsFMnkYEfLahGg-3D)__ posted its first sales decline. To swerve a struggling domestic economy, tech titans are trying to expand into the US: 

- __Ecomm giant [Pinduoduo](https://robinhood.com/stocks/PDD/)__ is reportedly preparing to enter the North American market next month. 
- __[NetEase](https://robinhood.com/stocks/NTES/),__ China’s second-largest game developer, recently followed Tencent’s footsteps and opened a US studio.

Ever-growing real-estate anxiety (Liang Xiashun/Getty Images)

Tank

__Real estate’s stuck at home…__ even though companies can expand internationally. China’s property industry accounts for up to 30% of its GDP — roughly 2X as much as in the US. While experts say a 2008-style housing-and-financial-crisis combo isn’t likely, China’s property problems extend beyond its borders: every 1% decline in China’s GDP is estimated to cause a 0.3% dip in global GDP.

China’s property market is in a panic — and its slumping tech sector is looking abroad

__Recommerce on the rise…__ Suddenly that 2012 __[Volvo](https://robinhood.com/stocks/VLVLY/)__ in your garage and the vintage dress in your closet are looking valuable. As inflation continues to strain wallets, more consumers are [buying](https://www.cnn.com/2022/08/30/business/offerup-resale-report/index.html) goods secondhand.

- __Growth is booming:__ The US’s secondhand market is expected to more than double by 2026.
- __Used = mainstream:__ More than three-quarters of Americans say they buy or sell secondhand products.
- __Overstock opportunity:__ Liquidators are [taking](https://www.wsj.com/articles/glut-of-goods-at-target-walmart-is-a-boon-for-liquidators-11656927184) piles of unsold inventory from retailers like __[Target](https://robinhood.com/stocks/TGT/)__ and __[Walmart](https://robinhood.com/stocks/WMT/)__ and offloading it to resellers, boosting secondhand supply.

__Pre-worn, low-rise [Levi’s](https://robinhood.com/stocks/LEVI/)…__ Secondhand shopping became popular with sustainable Gen Z shoppers on social-friendly marketplaces like __[The RealReal](https://robinhood.com/stocks/REAL/)__, __[ThredUp](https://robinhood.com/stocks/TDUP/)__, and __[Poshmark](https://robinhood.com/stocks/POSH/)__. The fashion resale industry is forecast to double to $77B in the next five years. But thanks to #flation, young shoppers are beginning to buy other products secondhand too:

- __Used *everything*:__ Secondhand marketplace __OfferUp__ says that *non-clothing* categories like electronics, furniture, sporting goods, and auto parts make up 76% of its sales.
- __High tech, low cost:__ This month __[DoorDash](https://robinhood.com/stocks/DASH/)__ partnered with __[Facebook](https://robinhood.com/stocks/META/)__ Marketplace to deliver resale products. __[Uber](https://robinhood.com/stocks/UBER/)__ launched a similar program last year with Mercari.

Thrifty

__Recommerce is a “flation flourisher”…__ Inflation boosts recommerce by encouraging thrifty shoppers to buy and sell used items. But traditional retailers are also placing big bets on resale, which could push more consumers into the secondhand economy. __[Macy’s](https://robinhood.com/stocks/M/)__, Walmart, __[Gap](https://robinhood.com/stocks/GPS/)__, __[Adidas](https://robinhood.com/stocks/ADDYY/)__, __Everlane__, and __[Crocs](https://robinhood.com/stocks/CROX/)__ have all struck “resale as a service” partnerships with ThredUp (think: ecomm portals). Buzzy brands like __[Lululemon](https://robinhood.com/stocks/LULU/)__, Levi’s, and __Ikea__ have even [launched](https://snacks.robinhood.com/newsletters/6CeTU6j7yjNpeG4NHlfTr/articles/NolZPqOkShbND9vp856qV/) their own resale programs.

From upcycled clothes to used cars, the resale economy is booming as new products get pricier

Canada’s population is smaller than California’s

🇨🇳 China’s property panic

__Powell’s prognosis…__ The #flationary fight ain’t over. On Friday, Fed chair Jerome Powell [said](https://www.wsj.com/articles/feds-jerome-powell-set-to-speak-on-economic-outlook-at-jackson-hole-11661476059?mod=article_inline) he plans to keep hiking interest rates until inflation’s under control — which could take a while. The news disappointed some investors, who hoped rates had peaked after inflation cooled last month. Powell acknowledged “pain” ahead. Markets responded accordingly:

- __Stocks slipped__ in the US, Europe, and Asia yesterday after plunging last week. Gold also fell, and __[bitcoin](https://robinhood.com/crypto/BTC/)__ dipped below $20K to its lowest level since mid-July.
- __Tech tumbled,__ notably __[Apple](https://robinhood.com/stocks/AAPL/)__ and __[Nvidia](https://robinhood.com/stocks/NVDA/)__. Higher rates curb spending and lower companies’ future earnings. 
- __Currency climbed:__ The USD hit a 20-year high yesterday after investors ditched other currencies and investments for the relatively stable dollar.

__Bitter pill…__ Powell’s ready to make sacrifices. His statement disappointed investors but was no surprise. For months JPow’s [said](https://snacks.robinhood.com/newsletters/2xWxnsCtcEtYcv012Yelqy/articles/5RKIqhn4ILH2LzzUNrtBTn/) he’ll keep fighting inflation till it sinks to near the Fed’s target of 2% — even if it means some economic pain. Last Friday he doubled down. Now he expects:

- __Single whammy:__ “Softening of labor market conditions” (translation: job losses).
- __Double whammy:__ “Sustained below-trend growth” (read: a small recession).

Tie-tening monetary policy (Tom Williams/Getty Images)

__No pain, no gain…__ Powell’s prescription may hurt now, but a temporary slowdown is better for markets and consumers than spiraling inflation. The medicine appears to be helping Americans already: real disposable income rose in July after falling for months. But painful side effects include slumping stocks and increasing layoffs. Despite that, jobs have (so far) been resilient. August hiring data comes out Friday.

Powell doubles down on the fight against ’flation, paving the way for temporary “pain”

__Smart soup...__ Panera’s serving up broccoli-cheddar bread bowls with a side of AI. Yesterday two Panera locations in upstate New York started testing an artificial-intelligence bot called "Tori," which takes drive-thru orders and interacts with customers.

- __The voice-order tech__ is from __OpenCity__, a startup last valued at $27M. Panera is assessing Tori's accuracy and ability to cut wait times.
- __If customers dig Tori,__ Panera could expand it to more restaurants. FYI: nearly half of its 2K locations have drive-thru lanes.
- __Tori makes moves:__ OpenCity said Tori’s being used in more than two dozen restaurants, including a Popeyes in Louisiana.

__From Tori to taco elevators...__ Fast-foodies have invested heavily in drive-thru tech since the pandemic. While lockdowns are over, takeaway sales have stayed elevated: prepandemic, less than [70%](https://www.qsrmagazine.com/reports/future-fast-food-drive-thru-arrives-early) of fast-food sales came from drive-thrus. *Now it’s more than 90%.*

- __Need for speed:__ Taco Bell opened a table-free restaurant last month with taco-delivering "vertical lifts." __[Chipotle’s](https://robinhood.com/stocks/CMG/)__ adding more digital-order Chipotlanes, and __[McD's](https://robinhood.com/stocks/MCD/)__ is working with __[IBM](https://robinhood.com/stocks/IBM/)__ to automate drive-thrus.
- __Need for peeps:__ Food service and hospitality companies led July job gains as they scrambled to hire, but were still 1.2M positions short of prepandemic headcount.

Souper

__Labor pains lead to robo gains...__ North American companies bought a [record](https://www.reuters.com/technology/north-american-companies-send-robots-even-productivity-slumps-2022-08-29/) # of robots in the first half of this year to keep operations afloat. With nearly two roles open for every unemployed worker, total US labor costs surged a record 5% last quarter. While Panera locations aren't factories, it's hoping that robo drive-thrus will ease the labor crunch. If it’s successful, others could follow.

Bread-bowl icon Panera tests AI drive-thrus as labor shortages weigh on fast food

Powell doubles down on the fight against ’flation, prescribing some temporary “pain”

It costs the US Treasury 7.5 cents to print $1

🩺 Powell prescribes pain

__The future of finance…__ aims to leave its past in the dust. The ethereum Merge — a years-in-the-making reimagining of the world's second-largest crypto — is set for [mid-September](https://www.bloomberg.com/news/articles/2022-08-18/ethereum-developers-back-sept-15-target-for-blockchain-merge), and crypto fans are HODLing their breath. The Merge is meant to move the chain's consensus mechanism (think: verification process) from “proof of work” (PoW: old, power-hungry) to “proof of stake” (PoS: new, efficient). It's a critical moment for the seven-year-old crypto, with real — *ahem* — stakes:

- __Eth-ficient:__ PoS-powered ethereum is expected to use 99.95% less energy by having validators instead of miners add new blocks to the chain. Reminder: validators are people "[staking](https://www.businessinsider.com/personal-finance/staking-crypto)" (aka: depositing and locking up) ether as collateral; miners = tons of energy-sucking computers.
- __Dirt-eth:__ Right now, ethereum uses as much energy as the Netherlands and emits as much carbon as Singapore. 
- __Crypt-oh shucks:__ The Merge will *not* actually reduce transaction fees or speed up transactions. 

__Growing up = growing pains…__ Dragging a chain worth $202B into the future isn't like flipping a switch. Plenty could go wrong, from bugs to industry consolidation (aka: dreaded centralization). Merge fans argue that if ethereum sticks with the old PoW, it risks getting left behind by new chains on the block (like: __[solana](https://robinhood.com/crypto/SOL/)__), but not all of cryptoland's on board:

- __Miner detail:__ In the new PoS future, ethereum miners (and their costly computer rigs) are no longer needed. One response: a proposed forked PoW ethereum chain living on after the merge (meet: ETHPOW).
- __Mis-stake:__ Critics worry PoS is less censorship-resistant than PoW, and that validators might be pressured into [censoring ethereum](https://fortune.com/2022/08/22/ethereum-community-censorship-fears-post-merge-tornado-cash/) at the protocol level.

Ethereum merges lanes (Jackal Pan/Getty Images)

At Stake

__The Merge is full steam ahead…__ and crypto's future is along for the ride. Picture a bunch of railroad engineers trying to swap out parts on a moving train — but the train's packed with priceless cargo and can't slow down. That's kind of like the Merge. Getting it wrong risks derailing the ethereum train *and* everything built on top of it (DeFi, Ape NFTs). If the upgrade succeeds, the train’ll run cleaner and could inspire the broader crypto industry to follow suit. If it fails? Hold on.

Ethereum's make-or-break moment nears as crypto readies itself for the big Merge

__The good, the bad, and the cryptic…__ Crypto’s so-called “Wild West” could be in for a reckoning. For over a year SEC Chair Gary Gensler has [said](https://www.wsj.com/articles/the-sec-treats-crypto-like-the-rest-of-the-capital-markets-disclosure-compliance-security-investment-mutual-fund-protections-blockfi-bankruptcy-bitcoin-11660937246) that many crypto products should be considered securities and regulated as such. Think: the same controls and protections as stocks and bonds. The SEC's doing more than talking: as part of an insider-trading case last month, it classified nine cryptos as securities. 

- __An asset is deemed a security__ by the SEC if it’s “an investment of money, in a common enterprise, with a reasonable expectation of profit derived from the efforts of others.”
- __Right now:__ A lot of cryptos are considered commodities, and lots of crypto products are virtually unregulated. 

__Scrutiny is brewing…__ This year, high-profile instances of crypto fraud have cranked up the heat from regulators and lawmakers. Recent meltdowns of some high-yield crypto lenders have added fuel to the fire. In many crypto-fraud cases, there isn’t much investors can do. People who had their funds locked by crypto lender __Celsius__, for example, are [begging](https://www.cnbc.com/2022/08/02/celsius-investors-owed-4point7-billion-beg-judge-to-recover-life-savings.html) bankruptcy judges for help. Now:

- __Crypto lenders__ (think: __BlockFi__, Celsius) are facing increased scrutiny. In February, BlockFi agreed to pay the SEC $100M for failing to list its crypto-lending product as a security. 
- __So are crypto exchanges:__ One Senate staffer [said](https://www.forbes.com/sites/michaeldelcastillo/2022/08/04/every-us-crypto-exchange-and-binance-is-being-investigated-by-the-sec-says-senator-lummis-staffer/?sh=2d872e422c27) *every* US crypto exchange is being investigated. And blockchain firm __[Ripple](https://robinhood.com/crypto/XRP/)__ is fighting a lawsuit that argues its XRP currency is a security.
- __Chasing clarity:__ A Senate proposal released this month [seeks](https://www.washingtonpost.com/business/2022/08/03/stabenow-boozman-bitcoin-cftc-bill/) to give *commodities* regulators the leading role in overseeing bitcoin and ethereum, while giving the SEC some oversight.

Heat

__Scrutiny may be reaching a boiling point…__ So far, the SEC’s strategy has been case-by-case enforcement actions and lawsuits. But if it can bring crypto under its purview, it could change the industry’s biz model. Listing securities carries rigorous disclosure and registration requirements meant to protect investors. While some crypto enthusiasts want it to stay unregulated, others believe that clear guardrails could boost the whole industry.

The “Wild West” of crypto could be reaching a regulatory boiling point

Ethereum

Solana

Dogecoin

While there could be as many as 20K cryptocurrencies, bitcoin and ethereum together make up more than half of crypto's total market value

🔀 Crypto at a crossroads

__A WFR kind of day…__ work from rideshare. __[Lyft](https://robinhood.com/stocks/LYFT/)__ is lightening its office load as more employees ditch cubicles for WFH couches. Refresher: Back in March, Lyft told its 4K employees they could work remotely *indefinitely* (FYI: Lyft drivers not included). Now…

- __Not your average sublet:__ Lyft plans to rent out nearly half its office space in SF, NYC, Nashville, and Seattle as its desks and snack-filled kitchens remain empty.
- __Call the movers:__ Last month __[Salesforce](https://robinhood.com/stocks/CRM/)__ opted to lease out 412K square feet of its SF office space. __[BuzzFeed](https://robinhood.com/stocks/BZFD/)__ also signed a sublet deal for its NYC office this week.
- __Status:__ While hybrid work remains the most popular option, 35% of employed Americans have the option to WFH full time — and [87%](https://www.mckinsey.com/industries/real-estate/our-insights/americans-are-embracing-flexible-work-and-they-want-more-of-it) take advantage of it.

__Unused kombucha taps…__ Occupancy rates in major cities are less than 45% of available space, vs. 95% pre-panny. This week, __[Apple](https://robinhood.com/stocks/AAPL/)__ workers signed a petition opposing the company's mandate to work three days a week in the office. While more employees work remote or hybrid, companies are still paying full price to keep offices running. Now, Lyft isn’t the only biz shedding desk space: 

- __[Yelp](https://robinhood.com/stocks/YELP/), [Twitter](https://robinhood.com/stocks/TWTR/),__ and others have made plans to sell or terminate their leases. Last month, __[Meta](https://robinhood.com/stocks/META/)__ and __[Amazon](https://robinhood.com/stocks/AMZN/)__ nixed plans to expand their NYC offices.

When a record three people make it to the office (Lea Suzuki/Getty Images)

Cubicle

__You don’t need to lose it if you can use it…__ Lyft doesn’t want to lose office space in case it needs the flexibility to scale up later. By subleasing unused offices, companies can cut costs and generate reliable cash during downturns. But not everyone is shedding: __[Google’s](https://robinhood.com/stocks/GOOGL/)__ planning to spend $9.5B this year on new offices and data centers.

From Lyft to Salesforce, companies are starting to sublease office space as workers stay home

__It’s good to be in charge…__ __[ChargePoint](https://robinhood.com/stocks/CHPT/)__ is the largest US EV-station operator by a country mile: it runs 29K of the 50K charging stations across the country (nearly 3X as many as __[Tesla](https://robinhood.com/stocks/TSLA/)__). It sells to retailers (think: malls), landlords (think: offices), and even cities. Its revenue doubled last quarter, but it’s still losing $$. Now, ChargePoint’s reportedly [pushing](https://www.wsj.com/articles/ev-charging-station-operators-set-to-battle-for-ad-dollars-11661421601?mod=business_featst_pos1) into advertising by turning its stations into digital billboards:

- __Watch while you charge:__ ChargePoint plans to install its first 1K screens in the coming year. They’ll show short vids about news, weather, and culture — with ads in between. 
- __Premium ads…__ for premium audiences. The ads will give retailers a way to target high-earning EV owners. Think: __[Starbucks](https://robinhood.com/stocks/SBUX/)__ can plug $7 lattes to Tesla-heads.

__EV stations are all over the map…__ especially in terms of biz strategy. Long term, it’s hard for charging companies to profit from hardware alone, because it’s a one-time sale. So while ChargePoint still makes about three quarters of its revenue from hardware, it’s investing in other moneymakers:

- __Start with subs:__ ChargePoint sells monthly software subscriptions to retailers like Starbucks (think: programs that manage complex queues). 
- __Then, add ads:__ __[Volta](https://robinhood.com/stocks/VLTA/)__, a major ChargePoint rival, generates 75% of its revenue selling ads to companies like __[Coke](https://robinhood.com/stocks/KO/)__, __[Netflix](https://robinhood.com/stocks/NFLX/)__, and __[FedEx](https://robinhood.com/stocks/FDX/)__.

Juiced

__Just stick an ad on it…__ for an added revenue stream. Thanks to this month’s [climate bill](https://snacks.robinhood.com/newsletters/42zI4SXli5Y5q5GTnO57Hh/articles/6P1VJKtvjfjnjFHojBaGj0/), EV stations could boom: the climate-focused IRA includes EV-station incentives, and President Biden’s infrastructure bill includes $5B in funding for a nationwide charging network. But fresh cash means fresh competition, and ads could help ChargePoint stay ahead of the energy pack.

ChargePoint is turning 30K EV stations into a national ad network to diversify electric revenue

From Lyft to Salesforce, companies are subleasing office space as workers stay home

Home prices fell for the first time in three years last month — the biggest decline since 2011

🏢 Lyft’s office-leasing biz

__A little less loan-ly…__ Yesterday, President Biden announced [plans](https://www.wsj.com/articles/biden-to-announce-student-loan-forgiveness-plan-11661331600?mod=hp_lead_pos10) to cancel $10K in federal loan debt for people making under $125K/year, and $20K for Pell Grant recipients (loans granted after June 30 aren’t eligible). The plan also relieves loan-holding parents, and extends the 2020 payment freeze (yet again). It might face delays because of lawsuits, but it’s expected to happen. As Biden would say, “Here’s the deal”:

- __Most of the 45M borrowers__ who owe $1.6T in loan debt will get relief, with about 15M expected to get their full debt canceled.
- __The move’s forecast to cost $300B,__ but the true cost could be less because billions in defaulted debts likely wouldn’t have been repaid anyway.

__Mixed response…__ Since Biden campaigned on the promise of loan forgiveness, it’s a victory ahead of midterms. But some don’t love it: 

- __Critics worry__ the plan will exacerbate inflation and penalize those who paid off their debt. Economists say it’s unlikely to boost short-term inflation since loan payments have been paused since March 2020. 
- __Supporters say__ it’ll help money-strained Americans get by, but progressives want cancellation of all $1.6T in student debt.

The forgiveness is this big (Olivier Douliery/Getty Images)

Relief

__It’s a big relief, but not a long-term one…__ US student-loan debt is higher than credit-card debt, so Biden’s plan will significantly relieve Americans’ IOU stress. But it’s not a long-term fix for college affordability. Tuition’s jumped 5X more than inflation in the past half century, and economists worry college could hike tuition even more if students expect forgiveness. Loans will likely pile up again, though Biden says he wants to [improve](https://www.wsj.com/articles/biden-to-announce-student-loan-forgiveness-plan-11661331600?mod=hp_lead_pos10) loan requirements to prevent ballooning.

Biden cancels $10K in student-loan debt for millions, offering relief as prices soar

__New DIY Peloton bike…__ straight from your __[Amazon](https://robinhood.com/stocks/AMZN/)__ cart. __[Peloton’s](https://robinhood.com/stocks/PTON/)__ stock jumped 20% yesterday after the struggling spin icon [signed](https://www.cnbc.com/2022/08/24/peloton-to-sell-fitness-equipment-apparel-on-amazon.html) a distribution deal with Amazon — its first retail partner. Peloton's products are usually sold exclusively through its site or IRL showrooms. Now Pelo-fans can snag its signature bike with an Amazon click (you can even assemble it yourself). 

- __Making [Lulu](https://robinhood.com/stocks/LULU/) sweat:__ Peloton says it also plans to sell apparel and merch on the Zon, like water bottles, yoga pants, and leggings.
- __Full cycle deal:__ Amazon could account for nearly 40% of all US ecomm sales this year, and has reportedly already seen 500K searches for Peloton products.

__Rocky road…__ Peloton had lost nearly 90% of its market value over the past year as consumers opted for gym classes over $3K spin bikes. In January it [paused](https://snacks.robinhood.com/newsletters/2aaB9GnrWgVHhjJd7bFJu/articles/1cvFtVr0b2fj1m1iC9AgUW/) production as unsold bikes piled up. Last month it [outsourced](https://snacks.robinhood.com/newsletters/iw2tCwjTCvnTryUaqDDzb/articles/3CSchWJYP4rfiMdi0AGrzJ/) all its manufacturing to save on pricey US production and focus on subscriptions. This month it laid off 800 workers (its third round of cuts this year) and raised prices on premium equipment to bolster sagging sales. We’ll see how it’s holding up when it reports earnings [today](https://investor.onepeloton.com/news-and-events/events).

Cycle

__Direct-to-consumer brands might go DTR…__ direct to retailer. Instead of waiting for consumers to return to Peloton, Peloton wants to meet ’em where they are. That means gaining exposure to Amazon’s 300M active customers. Since Amazon manages several supply steps (think: warehouses, drivers), the deal could also help Peloton simplify its operations.

Peloton spins onto Amazon in its first retail partnership after it loses its pandemic traction

Jackson Hole was chosen as the location for the annual central-banking conference to attract then Fed Chair Paul Volcker, who was fond of fly-fishing 

🏫 Biden’s big loan forgiveness

__Flying the coop…__ __[Twitter’s](https://robinhood.com/stocks/TWTR/)__ in the spotlight (again) after a [newly released](https://www.cnn.com/2022/08/23/tech/twitter-whistleblower-peiter-zatko-security/index.html) whistleblower report alleged that the company’s security policies aren't… secure. Last month, its former security chief Peiter Zatko filed a 200-page report accusing the blue bird of everything from reckless cybersecurity negligence to underreporting spam-bot accounts. Zatko had joined Twitter in 2020 to help build its security division but was let go in January for “poor performance.” 

- __Zatko says:__ More than half of Twitter’s 500K servers are using out-of-date software, and over a quarter of staff computers have disabled important security updates.
- __Twitter says:__ The report paints a “false narrative” of the company, and security and privacy issues have “long been company-wide priorities.”
- __The report comes at a convenient time for Elon Musk,__ who recently subpoenaed Twitter’s founder and former CEO for docs that might support his attempt to back out of buying the company.
- __Twitter shares fell__ 7% yesterday after the news, ending the Musk-related rebound.

__Twitter’s security snafus…__ are piling up. In 2020 it [suffered](https://snacks.robinhood.com/newsletters/695acOxqA9l0V9Q9Xp38oj/articles/4aQQllifXyQmT3gMOFphRx/) a major celeb hack that compromised blue-check accounts from President Biden and Kim K to __[Uber](https://robinhood.com/stocks/UBER/)__ and __[Apple](https://robinhood.com/stocks/AAPL/)__. Despite ramping up security, the company had another hack last month that [exposed](https://techcrunch.com/2022/08/05/twitter-zero-day-vulnerability-millions/) the data of 5M+ users.

Twitter’s latest twist (John Nacion/Getty Images)

Privacy

__Losing trust is costly...__ and Twitter could suffer if the claims are determined to be true. The report’s being reviewed by FTC regulators, who could impose pricey penalties if warranted. In May, Twitter agreed to pay the FTC $150M for violating a 2011 rule that prohibited the company from profiting from deceptively collected user data. ICYMI: In 2019, the FTC hit __[Facebook](https://robinhood.com/stocks/META/)__ with a record $5B penalty for violating consumer privacy.

Twitter could face a fallout after its ex-security chief said the company has troubling security issues

__Nuclear options...__ As the world grows hungrier for electricity, interest in nuclear-power innovation has exploded: over the past year, venture-capital investors have poured [$3.4B](https://news.crunchbase.com/clean-tech-and-energy/startups-nuclear-fusion-fission/) into nuclear fusion and fission startups. Refresher:

- __Fossil fuels were the US’s main sources__ of electricity generation last year. Natural gas provided 38% of its electricity, while coal made up 22%.
- __But nuclear isn't far behind...__ Nuclear energy powered nearly 20% of America’s electricity (the same as renewables like hydroelectric and wind).
- __Fission:__ All nuclear power plants currently produce electricity from nuclear fission (think: splitting atoms), but it's considered nonrenewable because it requires uranium.
- __Fusion__ is much harder to produce but generates significantly more power than fission and produces zero greenhouse-gas emissions (#renewable).

__A distant dream?...__ No one has yet developed a commercially viable fusion power plant. The process is hard to create and control — and it's extra-pricey. Now, nuclear-tech companies are raising big rounds to innovate:

- __Bill Gates’__ __TerraPower__ raised [$750M](https://news.crunchbase.com/venture/biggest-funding-rounds-vc-startups-bill-gates-terrapower/) last week in its quest to fight the climate crisis with “carbon-free advanced nuclear energy” and treat cancer with nuclear isotopes.
- __Commonwealth Fusion Systems__ has raised nearly *$2B* over the past year to further its ambitious goal of building a compact fusion power plant. 
- __General Fusion__ [said](https://www.thestar.com/business/mars/2022/08/03/this-company-thinks-it-has-cracked-nuclear-fusion.html) this month that it’s cracked the code to building the world’s first commercially viable fusion plant, and is planning a demonstration facility in the UK. 
- __Helion Energy,__ which aims to build the first fusion generators and enable “a future with unlimited clean electricity” has raised nearly $600M in the past year.

Fuse

__High potential ≠ high viability…__ If fusion can be successfully commercialized, it has the potential of generating nearly unlimited supplies of low-carbon, low-radiation energy — threatening the dominance of oil giants. But that’s a big if. While fusion breakthroughs have been made, some [estimate](https://www.bbc.com/news/science-environment-60312633) it could take decades to achieve at scale… if ever.

Nuclear-power startups are having a banner year as energy prices soar with the world’s electric needs

Twitter’s ex-security chief alleges the blue bird’s cybersecurity isn’t so secure

Europe is experiencing its worst drought in at least 500 years