__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

Dow Jones

S&P 500

Nasdaq

Bitcoin

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

The Crypto Catch-Up…

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

💸 The dollar intensifies

__Prime time…__ for a raise. __[Amazon](https://robinhood.com/stocks/AMZN/)__ will [bump](https://www.cnbc.com/2022/09/28/amazon-hikes-pay-for-warehouse-and-delivery-workers.html) average starting pay for delivery and warehouse workers from $18/hour to more than $19/hour. The Zon says the hike will cost nearly $1B over the next year. Though small, the boost could help attract workers ahead of the holidays (which, FYI, are expected to be less frantic than last year as demand softens). It’s not the only one:

- __[Target](https://robinhood.com/stocks/TGT/):__ In February, Target announced it would set a new starting range of $15/hour to $24/hour. It’s trying to hire 100K workers this holiday season (less than last year).
- __[Walmart](https://robinhood.com/stocks/WMT/):__ Last September, Walmart lifted its minimum store wage from $11/hour to $12/hour. This season, Walmart wants to hire just 40K workers (vs. *150K* last year).
- __In context:__ Real hourly earnings (adjusted for inflation) have fallen 2.8%, and an estimated 70% of surveyed workers are looking for extra gigs to afford high prices. 

__Pay to keep unions away…__ Tensions have been rising between Amazon and its front-line workers. In April, Amazon’s Staten Island warehouse became its first US facility to unionize. Amazon tried to reverse the vote and has actively fought union organization efforts, but pumping pay could be a more subtle approach.

Preparing the pay package (Johannes Eisele/Getty Images)

Waged

__America’s retailers set the standard…__ of America’s wages. After the federal government, Walmart is the country's largest employer with 2.3M global workers, followed by Amazon with 1.5M. With a federal minimum wage of just $7.25, retail behemoths boast major influence over America’s paychecks. A boost from Amazon could pressure other employers to keep up. But this pay hike won't come close to matching inflation, with prices up [8.3%](https://www.usinflationcalculator.com/inflation/current-inflation-rates/#:~:text=The%20annual%20inflation%20rate%20for,ET.) in August from a year earlier.

Amazon boosts worker pay ahead of the holidays, but it’s not enough to beat the inflation Grinch

__Shifting gears…__ __[Peloton](https://robinhood.com/stocks/PTON/)__ is taking a new strategy for a spin: yesterday the home fitness biz [said](https://www.cnbc.com/2022/09/29/peloton-to-sell-bikes-treads-at-dicks-sporting-goods-stores-.html) it’ll sell its products at __[Dick’s Sporting Goods](https://robinhood.com/stocks/DKS/)__, its first brick-and-mortar partnership. Peloton aims to have its $1.4K Bikes and $3.5K Treads in 100+ Dick’s stores in time for the holidays. It’s in line with Peloton’s strategy to do less by itself:

- __Outsource sales:__ Originally, Peloton only sold products directly to customers. But after sales slumped as gyms reopened, Peloton began selling on Amazon in August. 
- __Outsource production:__ In July, Peloton [said](https://snacks.robinhood.com/newsletters/iw2tCwjTCvnTryUaqDDzb/articles/3CSchWJYP4rfiMdi0AGrzJ/) it would stop making its own hardware to save $$ on pricey US production. 
- __Cut costs:__ Peloton cut 800 jobs in August in an effort to slash expenses as its quarterly loss nearly quadrupled to $1.2B
- __Weird timing:__ Despite plunging sales, Peloton unveiled a $3.2K rowing machine this month.

__Mirror, mirror (off the wall)…__ Peloton isn’t the only fit-tech company suffering as pandemic-era home sweat sessions decline: fitness mirror company __Tonal__ laid off a third of its staff in July to ease its losses. __[Lululemon](https://robinhood.com/stocks/LULU/)__ slashed its annual outlook for Mirror hardware sales in December. And this week Bowflex treadmill-maker __[Nautilus](https://robinhood.com/stocks/NLS/)__ said it’s considering selling itself.

Rotate

__Luxury hardware is a hard sell…__ *Especially* during a recession. Even Apple, which is outperforming the broader market, got a rare downgrade yesterday on worries of waning demand. Peloton has been called “the Apple of fitness,” but its products are less integral to daily life than smartphones and laptops. Now it’s hoping that big-name retail partnerships will revive demand for its fancy fitness products.

Peloton starts selling bikes at Dick’s, hoping brick-and-mortar will spin its fortunes around

- __📜🖊️ Policy…__ Fed Chair Jerome Powell said it's time for stricter DeFi [regulations](https://techcrunch.com/2022/09/27/feds-powell-says-real-need-for-defi-regulation-because-of-significant-structural-issues/). While this year's "crypto winter" hasn’t damaged the traditional financial (TradFi) system, Powell said next time could be different.
- __🤔 Sus……__ South Korea tried to [freeze](https://www.bloomberg.com/news/articles/2022-09-28/bitcoin-reserve-linked-to-fugitive-do-kwon-denies-moving-tokens) $67M in __[BTC](https://robinhood.com/crypto/btc/)__ it said is tied to TerraUSD stablecoin founder Do Kwon. Kwon said Terra's collapse (think: $40B investor loss) took his $$ with it, and called reports that he tried to cash out "misinformation." 
- __🤹‍♀️ Quirky…__ The Mouse House wants a piece of NFT cheese. __[Disney's](https://robinhood.com/stocks/DIS/)__ looking to hire web3 (think: DeFi, metaverse) [legal counsel](https://www.coindesk.com/business/2022/09/26/disneys-latest-job-posting-hints-at-big-plans-for-nft-and-crypto-adoption/) to explore the rules and regs surrounding NFT sales. Non-fungible Yodas, anyone?

Cryptic

The Crypto Catchup…

Amazon boosts pay ahead of the holidays, but not enough to beat the inflation Grinch

The pivot to remote work fueled 60% of the pandemic housing price boom, according to a new Fed study

📦 Prime paycheck

__The results are in…__ and __[Biogen](https://robinhood.com/stocks/BIIB/)__ scored a multibillion-dollar win. This week the pharma giant [announced](https://www.nytimes.com/2022/09/27/business/alzheimers-drug-biogen-lecanemab.html) that an experimental Alzheimer’s drug it’s developing significantly slowed cognitive decline in a large trial. The results boost the drug’s likelihood of snagging FDA approval, which could lead to blockbuster sales: 

- __Second time’s the charm:__ Biogen stock soared 40% yesterday, erasing its losses for the year. Last year Biogen got a *different* Alzheimer’s drug approved, despite iffy trial results. But that drug failed commercially after getting only limited Medicare coverage.
- __Industry-wide win:__ Shares of __[Eli Lilly](https://robinhood.com/stocks/LLY/)__, which is also developing an Alzheimer's drug, spiked 7%. Shares of Alzheimer’s-focused biotechs __[Prothena](https://robinhood.com/stocks/PRTA/)__ and __[Acumen Pharmaceuticals](https://robinhood.com/stocks/ABOS/)__ surged over *85%*.

__R&D is a roller coaster…__ Pharma giants have tried to develop successful Alzheimer’s drugs for decades. Despite billions in R&D spending, there’s still no commercially successful drug proven to slow Alzheimer’s. But pricey R&D is common in pharma: it costs an average of $1.3B to develop a drug, and approval can take a decade. 

- __High risk:__ __[J&J](https://robinhood.com/stocks/JNJ/)__, __[Roche](https://robinhood.com/stocks/RHHBY/)__, __[Merck](https://robinhood.com/stocks/MRK/)__, and __[Novartis](https://robinhood.com/stocks/NVS/)__ spend up to 25% of their revenue on R&D. 
- __High reward:__ Roche has launched only eight drugs in the last five years, but they’re worth $100B in potential sales.

Waiting for the trial results like… (Silas Stein/Getty Images)

Tried

__Some industries are feast or famine…__ Bio-pharma revolves around trials. If the trial flops, it’s back to the billion-dollar drawing board. If it succeeds, it’s a “feast” for all involved. Those high stakes come with high potential rewards: __[Moderna](https://robinhood.com/stocks/MRNA/)__ notched a $1.2B quarterly profit (its first ever) after its Covid vax got authorized. It took Biogen lots of time and $$ to develop its most recent Alzheimer’s drug, but analysts say it could do up to $8B in annual sales.

Biogen soars on word of a successful Alzheimer's drug trial, paving the way for big sales after big spending

__Hide your tennis courts…__ Pickleball — a mix of badminton, ping-pong, and tennis — has become the fastest-growing sport in the US with nearly 5M players. Now, MVPs want a swing at the pickle pie. Yesterday, the MLP (Major League Pickleball) [announced](https://www.cnbc.com/2022/09/28/lebron-james-is-a-pickleball-fan-and-player-now-hes-buying-a-team.html) that NBA legend Lebron James joined its investor ranks.

- __The backers:__ In July, Super Bowl champ Drew Brees became one of the [first](https://www.cnbc.com/2022/07/21/drew-brees-is-now-a-co-owner-of-a-professional-pickleball-team.html) big sports figures to invest in MLP. Now, the league plans to grow from 12 to 16 teams across six US cities next year. 
- __Match point:__ Next month, the league’s season-ending tournament will have a $319K purse — the largest in pickleball history.

__Game, set, match…__ Pickleball gained popularity during the pandemic as people looked for socially distant group activities. Since it requires less stamina (and formal training) than tennis or b-ball, it’s easier to pick up. Now, pickleball has 10K designated courts in the US, with *three* new ones opening each day.

- __Sour pickle:__ Pickleball matches can draw large crowds and take over public tennis and basketball courts for hours, causing [friction](https://www.latimes.com/california/story/2022-03-03/pickleball-noise-fueling-neighborhood-drama) (and even lawsuits) between players and nearby residents.
- __Fit pickle:__ Gyms like __[Life Time Fitness](https://robinhood.com/stocks/LTH/)__ have expanded their pickleball offerings to 120+ locations.
- __Camp pickle:__ Some investors are building out chains like pickleball-themed restaurants with indoor and outdoor courts.

Pickled

__The pickle jar is far from full…__ Thanks to leagues like the MLP and investors like Lebron, pickleball is gaining corporate attention. Pickleball tourneys have attracted sponsorships from brands like __[DraftKings](https://robinhood.com/stocks/DKNG/)__, __[Hertz](https://robinhood.com/stocks/HTZ/)__, and __[Chase](https://robinhood.com/stocks/JPM/)__. MLP’s founder said MVP investments would help the league reach its goal of 40M players by 2030. If momentum sticks, we could see a pickle-conomy emerge (think: merch, sponsors). 

From Lebron to Drew Brees, MVPs are investing in pickleball as it becomes an American phenom

Biogen soars on a successful Alzheimer's drug trial, which could lead to billions in sales

Monthly NFT trading volume is down 97% from January highs

💊 Biotech’s boom or bust

__A tale of two (electri)cities…__ Here’s an unlikely pairing: OG car-rental giant __[Hertz](https://robinhood.com/stocks/HTZ/)__ is partnering with oil titan __[BP](https://robinhood.com/stocks/BP/)__ to install EV chargers for your weekend getaway. Last year Hertz struck deals to buy up to 340K EVs from __[Tesla](https://snacks.robinhood.com/newsletters/6fvWNlLj06lmuzw6LGoQJT/articles/4ADArtfh2xKfYOP5GrK3Ip/)__, __[Polestar](https://robinhood.com/stocks/PSNY/)__, and __[GM](https://robinhood.com/stocks/GM/)__ by 2027. Last week it signed a deal to buy *175K* EVs from GM over the next five years, adding to its offering at 500 locations nationwide (already the largest EV-rental fleet in North America). Now:

- __Hertz and BP Pulse__ (BP’s electric-charging unit) plan to build a network of charging stations that’ll primarily serve Hertz renters but also ride-hailing drivers and the public. 
- __For BP:__ The charging-as-a-service partnership could bring the oil giant closer to its goal of operating more than 100K chargers by 2030. Back in 2020, BP pledged to go net-zero by 2050, but it’s notching record profits on the back of surging fossil-fuel prices.

__Running on e…__ EVs have been touted as a way for drivers to reduce emissions while saving $$ — but the latter hasn’t been the case lately. While gas prices have [jumped](https://gasprices.aaa.com/) 17% this year, electric-charging prices can fluctuate by as much as 400% in a single day. BP Pulse’s software could help Hertz lower its electricity costs by scheduling EVs to charge at cheaper times.

EV Chargers → that way (Kevork Djansezian/Getty Images)

Range

__If you build it they will come…__ EV demand is higher than ever, but the lack of charging infrastructure has been a top barrier to mainstreamification. The US has nearly 50K charging stations — that's about 100K fewer charging stations than gas stations. By setting up spots with a cost-efficient charging model, Hertz and BP could help address the top EV barriers: price and range anxiety.

Hertz teams up with oil titan BP to install thousands of EV chargers to ease America’s range anxiety

__Chippy ’n’ guac...__ Visit any __[Chipotle](https://robinhood.com/stocks/CMG/)__ today and there's a 100% chance your tortilla chips will be fried and seasoned with salt and lime by Chipotle workers. But starting next month the carne asada icon will add a *robot* to its chip-making operation.

- __Meet "Chippy":__ The autonomous kitchen bot from __Miso Robotics__ will [make](https://www.cnbc.com/2022/09/27/chipotle-mexican-grill-will-test-robotic-tortilla-chip-maker-.html) and season tortilla chips at a Chipotle location in Fountain Valley, California.
- __Taste tested:__ Chipotle’s already tested Chippy's chef skills at its HQ’s innovation hub.

__Hint of lime...__ lots of crunch. Fast-food joints around the US are still dealing with a crippling labor shortage. In May the restaurant industry still had [750K](https://fortune.com/2022/09/21/flippy-robot-fast-food/) fewer jobs filled than prepandemic. Now the hard-hit sector is bringing in bots to fill the gap:

- __[Jack in the Box](https://robinhood.com/stocks/JACK/)__ debuted fries-making robot "Flippy" (also from Miso Robotics) at a California location in July. __White Castle__ and Buffalo Wild Wings are also testing Miso's robots.
- __Chili's__ employed "Rita the Robot" to serve customers in 2020, and has expanded it to 51 locations.
- __Panera__ is [testing](https://snacks.robinhood.com/newsletters/3Xy3kid2cGsNJewaxEmlYl/articles/4PIIQRXDw9FsXq7ZzufP8q/) an AI drive-thru bot called “Tori.” McDonald's is also piloting automated drive-thrus.

Ippy

__It’s a fast-casual conundrum…__ for America’s nearly 200K fast-food spots and their ~5M employees. A 2021 report [found](https://www.restaurantdive.com/news/report-50-of-operators-plan-to-deploy-automation-tech-in-2-to-3-years/608201/) that half of restaurant operators planned to use automation tech in the next few years. Companies may have to spend big in the short term, but could be rewarded with more efficient operations and fatter profit margins longer term. On the flip side, it could mean millions of jobs lost to bots. Plus: a third of customers don’t want to see a robot prep their food, one report said.

Chipotle debuts tortilla-making robot “Chippy” as restaurants bring in bots to deal with the labor crunch

Hertz teams up with oil titan BP to install thousands of EV chargers to ease range anxiety

Nearly half of US schools are facing teacher and staff shortages

⚡ Hertz and BP’s electric alliance

__Brick-and-mortar…__ goes pixel-and-avatar: America’s largest retailer wants a slice of the metaverse pie. Yesterday __[Walmart](https://robinhood.com/stocks/WMT/)__ [launched](https://www.bloomberg.com/news/articles/2022-09-26/walmart-is-making-its-first-move-into-the-metaverse-with-virtual-worlds-on-roblox) two digital lands: “Walmart Land” is focused on "verch" (virtual avatar merch) and “Walmart's Universe of Play” features games and toy worlds. Walmart chose tween-favorite gaming platform __[Roblox](https://robinhood.com/stocks/RBLX/)__ as its big-blox home. 

__Fashionably late…__ Walmart joins a growing # of brands moving into meta-territory. Last year __[Nike](https://robinhood.com/stocks/NKE/)__ launched “Nikeland” on Roblox and Vans maker __[VF Corp.](https://robinhood.com/stocks/VFC/)__ kicked off “Vans World,” also on Roblox. This year Miller Brewing opened a virtual bar in blockchain-based __[Decentraland](https://robinhood.com/crypto/MANA/)__, while __[Wendy's](https://robinhood.com/stocks/WEN/)__ graced __[Meta’s](https://robinhood.com/stocks/META/)__ Horizon Worlds with a VR resto dubbed the "Wendyverse."

- __On Roblox:__ 21M+ people have visited Nikeland since its launch, and 81M+ have strolled through Vans World, with some paying Robux (in-game currency) to customize their digital shoes.
- __Meta's Horizon Worlds__ has struggled to attract crowds. Its reported monthly user base of 300K (as of February) includes users of a separate Meta app called Venues.
- __Barrier to meta-entry:__ Horizon Worlds requires a $400 VR headset, but Roblox and Decentraland are desktop-first experiences (think: "The Sims").

Clean up in the meta-aisle (Courtesy of Walmart)

Verch

__Brands want to be where the people are…__ even if it's just their avatars. As companies like Walmart and Nike plant their flags in the metaverse, they're looking to platforms that are already populated. Why build your shopping mall — digital or otherwise — in a ghost town when there’s a bustling metropolis next door? Roblox has 60M daily active users, up nearly 25% from last year. That could be a problem for higher-barrier Meta's Horizon Worlds.

Walmart dives into Roblox’s metaverse as brands bet on the Meta competitor

__Dangling the carrot (cash)…__ __Hopper__ passed __[Booking.com](https://robinhood.com/stocks/BKNG/)__ as the most downloaded US travel app last year, snagging attention with data-driven features like hotel-price freezes and flight-rebooking guarantees. Now it’s trying to *keep* consumers’ attention — even when they’re not planning trips. Hopper’s [testing](https://www.wsj.com/articles/hopper-travel-rewards-games-11663959822?mod=business_lead_pos11) a program that rewards users for playing games. 

- __Carrot-nomics:__ Hopper gives users “Carrot Cash” for referring friends, playing games, or opening the app seven days a row (think: __[Snap](https://robinhood.com/stocks/SNAP/)__ streak). Users can redeem Carrot Cash for discounts.
- __Games > billboards:__ Hopper has doled out $50M in rewards, vouchers, and deals in the past year — more than it spent on marketing during that time. 

__Hopping into the game…__ Hopper isn’t the first to use games as an engagement booster: Chinese app __[Pinduoduo](https://robinhood.com/stocks/PDD/)__ used gaming and social features to become an ecomm giant across Asia. Now travel apps like India-based __Oyo__ and US-based __[IHG](https://robinhood.com/stocks/IHG/)__ are using mobile games to keep customers engaged as they rack up points for discounted stays. __[Starbucks](https://robinhood.com/stocks/SBUX/)__ added java-themed [games](https://snacks.robinhood.com/newsletters/3zk1PzoMK4g9MSqLIZcEPW/articles/5lo8sn02AgFwfflhKsoKl8/) to its recently revamped rewards app.

Carrot

__Games could be the new ads…__ While digital billboards are easy to gloss over, reward-based games can be attention-grabbing. Hopper says users who engage with games open the app 5X to 10X more than users who don’t. Games bring customers directly into an app — ads have the same goal, but not always the same result. These new engagement strategies could bring more pain to the flagging digital-marketing sector.

Travel app Hopper tests reward-based games as companies compete for eyeballs in the attention economy

Russia’s war on Ukraine is expected to cost the global economy $2.8T in lost output by the end of next year