Brunch Reads – 6/16/24

Jun 16, 2024

Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.

Important News!

Rise and shine, it’s Brunch Reads time! Before getting into this week’s links, we wanted to make you aware that after this week, Brunch Reads will be exclusive to Bespoke Members. Brunch Reads has become a Sunday morning staple for many, and as a valued reader, we want to ensure you can continue enjoying it. Here’s how:

Upgrade your Bespoke experience: Subscribe to one of our three Bespoke membership levels (descriptions below) and receive immediate access to all that each service has to offer!

Take advantage of our special offer: Using any of the links below, you can also unlock 30 days of full access to each level of service for just a dollar and then 20% off for the life of the subscription after that.

Don’t miss out! Click any of the membership links below this week’s articles and unlock your exclusive $1 trial offer.

On This Day in History:

A House Divided: On June 16th, 1858, Abraham Lincoln declared, “A house divided against itself cannot stand.” This statement, made during his campaign for the Illinois Senate seat, addressed the escalating tensions between the Northern and Southern states over the issue of slavery. Lincoln believed that the country could not permanently endure half slave and half free, and he urged for a unified stance. As history recalls, Lincoln was absolutely correct as those moral and political rifts would soon erupt into the Civil War. After becoming president, his vision of a united nation, free of slavery, shaped the course of American history. Today, Lincoln’s “house divided” speech resonates as a reminder of the dangers of deep-seated divisions within a nation and the importance of seeking common ground.

ChatGPT is baked into Apple Intelligence (Engadget)
Apple’s WWDC 2024 was this past week, and the tech titan confirmed its partnership with OpenAI to integrate ChatGPT into iPhones and other devices, powered by GPT-4o. It will enable cloud-based Apple Intelligence queries in iOS 18, iPadOS 18, and macOS Sequoia. The new AI-powered Siri can access ChatGPT’s knowledge base for various more complicated tasks that Apple’s smaller LLMs cannot handle like providing menu ideas with specific ingredients or offering decorating advice based on photos. Additionally, Siri can assist with documents, presentations, and PDFs. The OpenAI integration is set to launch later this year. [Link]

Milei Adviser Expects Major Tech Investments Within Eight Weeks (BNN Bloomberg)
Argentine President Javier Milei’s administration is poised to announce big tech investments of over $1 billion within the next eight weeks following a visit to Silicon Valley. Milei and senior adviser Demian Reidel pitched Argentina’s favorable conditions for data centers and its educated workforce to tech giants like Apple, Meta, and Alphabet. Despite Argentina’s protectionist past, Milei aims to make the country a tech-friendly hub, focusing on AI and technology investments. Additionally, Milei plans to lift capital controls to attract more foreign businesses, enhancing job creation and economic growth. [Link]

Pentagon embracing SpaceX’s Starshield for future military satcom (SpaceNews)
The US Department of Defense (DoD) plans to integrate over 100 SpaceX Starshield satellites into its future satellite communications (satcom) architecture by 2029. Starshield, a militarized version of SpaceX’s commercial Starlink satellites, features enhanced encryption and security. Col. Eric Felt highlighted the success of Starlink for US forces and emphasized the importance of cybersecurity and diversification in LEO architecture. The DoD’s increasing demand for satellite internet services is already evident given the use of Starlink under current procurement contracts, and plans to further expand capabilities with Starshield and other commercial services like Amazon’s Project Kuiper, only reinforces the trend. [Link]

Using AI for Political Polling (Ash Center)
Public polling, a cornerstone of modern political campaigns, has issues with skyrocketing nonresponse rates and respondents’ reluctance to share true opinions. Pew Research highlighted a drop from 36% of respondents in 1997 to just 6% in 2018. Additionally, people often provide socially desirable or partisan-driven responses. Some now say that AI offers a transformative potential for polling by using large language models (LLMs) to simulate and analyze public opinion from vast online data, providing instant insights across demographics and scenarios. Researchers are developing AI agents to mimic survey populations. It’s concerning to think AI will anticipate human responses by generalizing and be considered accurate. Can an AI model accurately represent the individual opinions of a diverse group of respondents? [Link]

How Amazon blew Alexa’s shot to dominate AI, according to more than a dozen employees who worked on it (Yahoo Finance)
Amazon’s ambitious plan to revamp its Alexa voice assistant with advanced generative AI has been rocky, despite a flashy demo in September 2023 showcasing a more conversational and natural-sounding Alexa. Former employees suggested that Alexa’s new LLM is far from state-of-the-art, hindered by limited data and access to specialized GPUs. Amazon’s focus on other generative AI priorities like its AWS service has further delayed Alexa’s development. It’s tough to say whether Alexa can catch up to rivals like Google and OpenAI in the AI race, with many questioning if Amazon’s vision for a transformative AI-powered assistant will ever be realized. [Link]

Environmental & Energy

The US installed more solar in Q1 2024 than it did in all of 2018 (Electrek)
In Q1 2024, the US saw unprecedented growth in solar manufacturing, achieving a total installed capacity of 200 GW. This included a record-setting 11.8 GW of new solar panel manufacturing capacity, representing 75% of all new electricity-generating capacity added to the US grid during this period. Once this capacity becomes fully operational, it will be capable of meeting 70% of US demand. Notably, the US added over 40 GW of new solar capacity in 2023, with another 40 GW projected for 2024, driven by substantial utility-scale deployments in states like Florida and Texas. Despite challenges such as labor shortages and trade policy uncertainties, the US solar industry is set to more than double its capacity by 2029, reaching 438 GW. [Link]

Major oil surplus seen this decade as demand peaks, IEA says (BNN Bloomberg)
The International Energy Agency (IEA) predicts a major surplus in global oil markets this decade as demand plateaus amid the rise of EVs and improved fuel efficiency. By 2029, world oil consumption is expected to level off at 105.6 million barrels per day, while production, led by the US, will exceed demand by 8 million barrels per day. This surplus, the largest since the Covid-19 lockdowns, could exert downward pressure on prices. Despite continued demand growth in countries like India and China, developed economies will see a decline in oil use. [Link]

In Wyoming, Bill Gates moves ahead with nuclear project aimed at revolutionizing power generation (AP News)
Bill Gates and TerraPower have started construction on a next-generation nuclear power plant in Kemmerer, Wyoming, which intends to revolutionize energy generation with advanced technology. The plant, which uses sodium instead of water for cooling, is different from traditional reactors and is expected to cost up to $4 billion, with half funded by the US Department of Energy. This project, the first of its kind in four decades in the US, is designed to be safer, more efficient, and cheaper. TerraPower’s reactor will provide up to 500 megawatts of carbon-free energy, enough for 400,000 homes, and could later support industrial processes requiring high heat, currently reliant on fossil fuels. [Link]

Transportation

EVs Could Last Nearly Forever—If Car Companies Let Them (The Atlantic)
In April, Hansjörg von Gemmingen-Hornberg’s 2014 Tesla Model S became the first electric vehicle to drive 2 million kilometers. This journey, however, was not without its challenges, involving multiple battery and motor replacements. The longevity of EVs is becoming more achievable due to fewer moving parts and better battery technology, which may soon make it common to see EVs with million-mile lifespans. Despite the potential for extended vehicle longevity, car manufacturers may incentivize frequent upgrades through planned improvements and software incompatibilities, echoing the consumer electronics industry’s model. [Link]

Thefts of charging cables pose yet another obstacle to appeal of electric vehicles (AP News)
The theft of EV charging cables is becoming a problem across the United States. In Seattle, two men were recorded stealing cables from a charging station, a scene that depicts a trend driven by the high price of copper. These thefts disable charging stations, causing frustration for EV owners forced to find alternate charging spots. This issue complicates the efforts of automakers pushing for wider EV adoption amid concerns about charging infrastructure. Charging companies and law enforcement are stepping up security measures to combat this growing problem. [Link]

Investments

Nvidia juggernaut upends markets (Financial Times)
Nvidia has surged to a market cap of over $3 trillion, surpassing giants like Apple and entire stock indices like France’s CAC 40. The chip maker’s gain of over 147% so far this year, after 2023’s 239% gain, has made it a go-to investment for both high-risk and stable investment strategies, drawing massive investor interest. Given the current environment of high inflation, interest rates, and geopolitical tension, asset manager Carmignac is an example of the shifting focus from long-term government debt to short-term debt and a “barbell” of exposure to stocks of what it calls lower-risk tech stocks like Nvidia. [Link]

Sports

Getting death threats from aggrieved gamblers, MLB players starting to fear for their safety (USA TODAY)
Major League Baseball players are receiving threats, particularly due to the rise of sports gambling. Players like Arizona Diamondbacks’ Paul Sewald and Logan Allen recount receiving death threats and being followed home by enraged bettors. The MLB Players Association has pushed for stronger protections, resulting in new rules against betting-related abuse and the establishment of a safety hotline. However, the aggressive behavior fueled by gambling shows no signs of abating, with players constantly targeted by fans upset over lost bets. [Link]

Economic Trends

New York Fed Is Losing Talent and ‘Street Cred’ Under John Williams (BNN Bloomberg)
John Williams, the president of the Federal Reserve Bank of New York, has faced criticism since his 2018 appointment due to staff departures and concerns over his lack of market experience compared to his predecessors. The departures of several senior officials with over a decade of experience have sparked worries about a talent drain at the bank and its ability to manage future financial crises. Though Williams is a respected macroeconomist, the situation has led to reliance on other regional Fed presidents with stronger finance backgrounds, potentially reshaping the dynamics of market intelligence and policy implementation. [Link]

Health & Wellness

Pentagon ran secret anti-vax campaign to undermine China during pandemic (Reuters)
During the height of the COVID-19 pandemic, the US military secretly launched a campaign to undermine China’s influence in the Philippines by spreading anti-vaccine propaganda. It was meant to cast doubt on the safety of Chinese vaccines and medical supplies using fake social media accounts impersonating Filipinos. The campaign, which extended beyond Southeast Asia, sought to exploit religious concerns and erode trust in China’s aid efforts, with repercussions that included increased vaccine hesitancy and potential risks to public health. Despite objections from US diplomats and the eventual termination of the campaign in mid-2021, the operation has raised ethical and geopolitical concerns. [Link]

Michigan’s Largest Insurer to Drop Weight-Loss Drug Coverage (BNN Bloomberg)
Starting in January, Blue Cross Blue Shield of Michigan will discontinue coverage of GLP-1 obesity drugs, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, for nearly 10,000 people under fully insured large group commercial plans. This decision reflects concerns over the drugs’ effectiveness, safety, and high costs, with list prices exceeding $1,000 per month per user (OK, it’s mostly high costs!). Medicaid coverage for these drugs varies, and many Affordable Care Act Marketplace plans also do not cover them for obesity. New restrictions will be introduced from August to December, including in-person consultations and a higher BMI threshold for eligibility. Novo Nordisk and Eli Lilly have expressed disappointment, emphasizing the importance of these medications for health. [Link]

Policy & Law

His Ex Is Getting His $1 Million Retirement Account. They Broke Up in 1989. (WSJ)
Jeffrey Rolison’s long-lost girlfriend from the 1980s, Margaret Losinger, might inherit his $1 million retirement account due to a 1987 beneficiary form, despite their relationship ending nearly 40 years ago. Rolison’s brothers are contesting this, arguing he wouldn’t have intended to leave her the money. The legal battle highlights the critical importance of up-to-date beneficiary designations on retirement accounts, which typically override wills. Procter & Gamble, Rolison’s former employer, has been embroiled in the dispute, with courts so far siding with Losinger. [Link]

Wells Fargo Fires Over a Dozen Wealth Staff for ‘Simulation of Keyboard Activity’ (AdvisorHub)
Wells Fargo recently fired over a dozen employees from its wealth and investment management unit after discovering they were faking work activity using devices that simulate keyboard movements. “Mouse movers” are used for remote work to keep from appearing offline, although it’s unclear if the firings were related to remote work. Wells Fargo, which has been gradually bringing employees back to the office since early 2022, emphasizes its commitment to high ethical standards. This episode is reminiscent of a 2018 scandal where employees were investigated for expense policy violations. [Link]

Keep your access to Brunch Reads, and become a Bespoke member. Sign up today!

Bespoke Newsletter – $1 for the first month and $39 each month after.

*Our Most Popular Service*
Bespoke Premium – $1 for the first month and $79 each month after.
*Our Most Popular Service*

Bespoke Institutional – $1 for the first month and $156 each month after.

Have a great weekend!

Bespoke’s Brunch Reads – 6/9/24

Jun 9, 2024

Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.

Important News!

Rise and shine, it’s Brunch Reads time! Before getting into this week’s links, we wanted to make you aware that after this week, Brunch Reads will be exclusive to Bespoke Members. Brunch Reads has become a Sunday morning staple for many, and as a valued reader, we want to ensure you can continue enjoying it. Here’s how:

Upgrade your Bespoke experience: Subscribe to one of our three Bespoke membership levels (descriptions below) and receive immediate access to all that each service has to offer!

Take advantage of our special offer: Using any of the links below, you can also unlock 30 days of full access to each level of service for just a dollar and then 20% off for the life of the subscription after that.

Don’t miss out! Click any of the membership links below this week’s articles and unlock your exclusive $1 trial offer.

On This Day in History:

Why the Pandemic Probably Started in a Lab, in 5 Key Points (NYT)
You may have seen Dr. Fauci’s hearing earlier this week, which delved into the controversial handling of Covid-19, particularly focusing on the potential origins of the virus. Evidence is mounting that the pandemic likely resulted from a lab accident at the Wuhan Institute of Virology, as depicted through the intricate web of virus research, including genetic manipulations and the international collaboration that supported such activities. The lab in Wuhan had proposed creating viruses with SARS-CoV-2 features and did so under low biosafety conditions, according to the evidence, which stacks up heavily against other, less-supported, theories. [Link]

‘Unusual’ cancers emerged after the pandemic. Doctors ask if covid is to blame. (MSN)
In 2021, Dr. Kashyap Patel and his team noticed an unusual spike in rare cancers among younger patients, raising concerns about a link to COVID-19. The spike included cases of cholangiocarcinoma, a cancer typically seen in much older individuals. While some attribute this trend to pandemic-related healthcare delays, others, like Patel, believe the virus could have played a direct role. Research is starting to explore if COVID-19 triggers inflammation that may accelerate cancer growth. Despite skepticism, a growing number of scientists advocate for prioritizing studies on COVID-19’s potential long-term effects on cancer, recognizing that it could significantly impact future treatment and patient care. [Link]

Woman Declared Dead Is Found Alive at Funeral Home (NYT)
In a shocking incident in Nebraska, 74-year-old Constance Glantz was pronounced dead at a nursing home but was later found breathing by a funeral home employee. Transported by Butherus-Maser & Love Funeral Home, Glantz was discovered alive during preparation for her funeral, leading to an immediate call to emergency services. She was revived and taken to a hospital but passed away later that day. No criminal intent has been found so far. [Link]

A new discovery about carbon dioxide is challenging decades-old ventilation doctrine (STAT)
Carbon dioxide monitors became important tools during the pandemic, serving as proxies for indoor air quality and potential virus transmission. High CO2 levels indicate poor ventilation, meaning there’s a higher likelihood of inhaling airborne pathogens. Elevated CO2 levels not only indicate poor ventilation but also enhance virus survival, making air more conducive to sustaining infectious particles. Studies suggest that even moderate increases in CO2 can significantly prolong the viability of viruses like Covid. [Link]

AI & Technology

Windows feature that screenshots everything labeled a security “disaster” (The Verge)
Microsoft is launching a new AI-powered feature called Recall on June 18th, designed to screenshot everything you do on your PC for easy search and retrieval. Despite promises of security and local data storage, cybersecurity expert Kevin Beaumont has pointed out vulnerabilities, such as storing data in plain text, making it easy for malware to extract sensitive information. Privacy campaigners and the UK’s Information Commissioner’s Office have already expressed concerns, and while Microsoft claims Recall is optional and secure, the opt-out setup and lack of content moderation add to the worries. [Link]

Yes, artificial intelligence is running for mayor of Cheyenne; city, county clerks comment on candidate VIC (Oil City News)
In Cheyenne, six individuals have filed to run for mayor, with one standout candidate: VIC, or Virtual Integrated Citizen. Developed by OpenAI, VIC uses AI for data-driven decision-making, transparency, efficiency, and innovation in city administration. Although VIC is supported by a human team, the candidacy presents legal questions, as current law requires candidates to be human registered voters. Local clerks are grappling with this unprecedented situation, noting that AI cannot be a registered voter, and thus may not qualify for the ballot under Wyoming law. The resolution of VIC’s candidacy remains pending, but it’s interesting to think how an AI candidate may fare against humans during a very hot political year in the US. [Link]

Researchers Use AI to Decode the Secret Language of Dog Barks (Gizmodo)
Researchers are using AI models trained on human speech to decode dog barks. By employing the state-of-the-art AI speech model Wav2Vec2, they trained one model on human speech and then fine-tuned it on dog barks, and another model solely on dog barks. The model pre-trained on human speech performed better, achieving 62% accuracy in identifying a dog’s emotion and breed, 69% accuracy in gender, and 50% accuracy in identifying individual dogs. The findings suggest that AI models trained on human speech could revolutionize our understanding of animal communication. Researchers plan to expand their studies to include more breeds, emotions, and species, aiming to further explore the potential of this technology in decoding animal languages. [Link]

Transportation

A Traffic Engineer Hits Back at His Profession (Bloomberg)
Pedestrian and cyclist deaths in the US have reached a 40-year high, and safety advocates argue that transportation engineering itself is to blame. In “Killed by a Traffic Engineer,” Wesley Marshall, a civil engineering professor, critiques the field for prioritizing speed over safety and debunks myths like the blame on human error. The book reveals how current practices, that use outdated standards and are geared towards avoiding liability, fail to address the real causes of traffic fatalities. Marshall calls for designing streets that consider human behavior and prioritize safety for all users, which is apparently against the status quo in transportation engineering. [Link]

America’s Commute to Work Is Getting Longer and Longer (MSN)
American workers are accepting longer commutes as housing costs around cities and hybrid work make hour-plus drives more common. Research shows a substantial rise in “super commutes” of 75 miles or more since 2020, led driven by people who tolerate long drives due to less frequent office visits. The study reveals a pattern of workers, especially younger ones and high earners, moving farther from urban centers. Even though lengthy drives and high parking costs might be a deal-breaker for some, many find the trade-offs for larger living spaces and hybrid work schedules worth it. [Link]

Did she even count the MTA votes? (Poltico)
New York Gov. Kathy Hochul’s sudden decision to pause the congestion pricing plan has caused confusion and concern among MTA board members, who were not consulted in advance. This decision leaves a $1 billion budget gap, with the Legislature unlikely to implement a last-minute payroll tax to cover it. The responsibility may fall to the MTA board, which is composed of various gubernatorial, mayoral, and county appointees. Five board members have publicly opposed the governor’s move, suggesting potential resistance if the issue comes to a vote. Hochul has not commented publicly on her decision, and the situation remains uncertain as lawmakers explore other funding options. [Link]

Taxes

IRS makes Direct File a permanent option to file federal tax returns; expanded access for more taxpayers planned for the 2025 filing season (IRS)
The IRS announced that its Direct File service will become a permanent option for filing federal tax returns starting in 2025 after the success it had with its pilot program. Direct File was praised for its ease of use and efficiency, allowing taxpayers to file electronically at no cost. Plans are in place to expand its availability to more states and tax situations. Despite some concerns about existing free filing options, the IRS is improving Direct File based on user feedback to simplify the tax filing process. [Link]

Sports

Is This America’s First $100 Million-a-Year Athlete? (WSJ)
Luka Doncic, the Dallas Mavericks’ star who is playing for an NBA championship right now, stands to out-earn legends like Michael Jordan and LeBron James, potentially making over $1 billion by the end of his career. Rising TV and streaming deals, such as the NBA’s upcoming $76 billion contracts with ESPN, NBC, and Amazon, have fueled unprecedented salary increases. Projections indicate that a $100 million annual salary could become a reality by the 2032-33 season. Put that together with lucrative shoe deals and that becomes a lot of money for some of the league’s best. Even the WNBA is seeing a boost as the women’s game has SURGED in popularity this year with more televised games, shoe deals, and viral moments! [Link]

Economic Trends

Want to Pay Cash? That’ll Cost You Extra (WSJ)
If you go to Yankee Stadium concessions with cash, you’ll have to use a reverse ATM due to the stadium’s cashless policy. The ATM deducts a fee and issues debit cards that can be used in place of the unaccepted cash. Many venues and businesses are now adopting cashless systems, which often result in extra fees for cash users. While cash remains a popular payment method, accounting for 16% of all transactions in 2023, the dominance of digital payments is burdening those who prefer or rely on cash, especially older and lower-income individuals, or even those who don’t want all their transactions tracked. Despite some states mandating acceptance of cash, the trend towards cashless transactions continues to grow, driven by convenience and security concerns. [Link]

The low-end consumer ‘is really being stretched,’ says Five Below CEO (CNBC)
Joel Anderson, CEO of Five Below, highlighted ongoing challenges for consumers, particularly in lower-income demographics, despite signs of easing inflation. On a recent earnings call, Anderson emphasized the need to deliver value to attract stretched customers. Five Below’s revenue guidance for Q2 and full year fell short of expectations, with Q1 revenue also underperforming. The company’s shares dropped nearly 11% on Thursday, reaching a 52-week low and marking a 44% decline in 2024. Anderson noted a shift in consumer behavior towards “consumable” items like candy, food, beauty, and health aids, with the Five Beyond section, offering some items for more than $5, showing the best performance among lower-income households. Despite some positive economic indicators, consumer sentiment remains low, with a notable drop in May, and many Americans mistakenly believe the country is in a recession. Anderson concluded that prolonged inflation in key areas like food, fuel, and rent has made consumers more cautious with discretionary spending. [Link]

Policy & Law

Should Finfluencers Be Regulated as Financial Advisors? (Barron’s)
The rise of financial influencers (“influencers”) on social media is a challenge for regulators. There’s a tension between protecting investors and free speech. The SEC is unsure if it can regulate finfluencers as investment advisors. Some influencers might be exempt if their advice is impersonal and they don’t mislead investors. Regulators might encourage disclosure and education to address the issue.[Link}

Keep your access to Brunch Reads, and become a Bespoke member. Sign up today!

Bespoke Newsletter – $1 for the first month and $39 each month after.

*Our Most Popular Service*
Bespoke Premium – $1 for the first month and $79 each month after.
*Our Most Popular Service*

Bespoke Institutional – $1 for the first month and $156 each month after.

Have a great weekend!

Bespoke’s Brunch Reads – 6/2/24

Jun 2, 2024

Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.

While you’re here, join Bespoke Premium with a 30-day trial!

On This Day in History:

A Queen Crowned: On June 2nd, 1953, Queen Elizabeth II was crowned queen at 27 following the death of her father, King George VI. It was the first coronation to be watched from home, and the sale of televisions went through the roof. During her reign, Queen Elizabeth II oversaw the transition of several countries from British rule to independence. Notable examples include Ghana in 1957, Nigeria in 1960, and Kenya in 1963. She also played a role in transitioning the British Empire into the modern Commonwealth, as it grew from eight member nations to 54 during her reign. Her historic visit to Ireland in 2011 was even the first by a British monarch since Ireland gained independence, symbolizing a new era of Anglo-Irish relations. Despite her many accomplishments, the Queen didn’t escape controversy, as the royal family’s response to Princess Diana’s death in 1997 drew public criticism. Queen Elizabeth II sadly passed away in 2022 at the age of 96. As the longest-reigning monarch in British history, her son has taken over as King Charles III.

Batteries Taking Charge of the California Grid (Grid Status Exports)
Battery storage in California ISO (Independent System Operator) has surged this spring, with batteries discharging over 5GW at peak times, doubling last year’s average. This increase has led to the lowest average hourly gas generation in seven years. Solar generation also set new records, with the top ten instantaneous solar records occurring in late April, working with batteries to manage solar ramps and reduce midday gas usage. Midday exports have declined despite increased solar generation, indicating a cleaner energy mix. [Link]

The incredible, Earth-saving electric bike is having a moment (Business Insider)
E-bikes have surged in popularity, especially during the pandemic, providing a greener alternative to cars for short trips. Research shows that using an e-bike even once a day can dramatically reduce transportation emissions. E-bikes can be convenient, but they can also help overcome barriers like steep hills and long commutes, making biking a viable option for more people who would otherwise avoid them. Sales of e-bikes have skyrocketed, and new legislation may soon offer financial incentives to boost their adoption. [Link]

The Slowdown in US Electric Vehicle Sales Looks More Like a Blip (Bloomberg)
Despite a flat start to the year for US EV sales and setbacks for Ford and Tesla, the EV market is still strong. Many top automakers, including Hyundai-Kia and Ford, saw substantial sales increases, with some brands seeing over 50% growth in Q1. GM expects a massive ramp-up with new models featuring its Ultium batteries. Tesla is navigating a transitional phase by opening its Supercharger network to non-Tesla owners and planning new vehicle launches, including a self-driving “Cybercab” and potentially more affordable models next year. Other manufacturers are introducing affordable, mass-produced EVs. Long-term forecasts remain optimistic for EV sales over the next few years. [Link]

Solar and battery storage to make up 81% of new U.S. electric-generating capacity in 2024 (U.S. Energy Information Administration)
According to the latest data, developers and power plant owners plan to add 62.8 gigawatts (GW) of new utility-scale electric-generating capacity in 2024, a 55% increase from 2023. Solar power will lead the charge, with an expected record addition of 36.4 GW, nearly doubling last year’s 18.4 GW. Key states like Texas, California, and Florida will dominate these new solar installations. Battery storage is also set to see substantial growth, with plans to add 14.3 GW, nearly doubling the current capacity, driven by projects in Texas and California and boosted by investment tax credits from the Inflation Reduction Act. Wind power will add 8.2 GW, including significant offshore projects like Vineyard Wind 1 and South Fork Wind. Natural gas additions will be the lowest in 25 years, with 2.5 GW planned, primarily from simple-cycle gas turbine plants. Lastly, the Vogtle nuclear power plant in Georgia is set to start its fourth reactor in March 2024, contributing an additional 1.1 GW. [Link]

A problematic estimate of warming from low-sulfur marine fuels (The Climate Brink)
Aerosols play a complex role in the climate system by reflecting sunlight and serving as cloud condensation nuclei, which cool the Earth. The main source of these aerosols has been burning sulfur-rich fossil fuels. However, global sulfur dioxide emissions have decreased significantly, particularly due to regulations like the IMO2020, which dramatically cut sulfur emissions from ships. This reduction has likely unmasked some of the warming previously offset by these aerosols. A new study estimates that the IMO2020 regulations have led to an increase in radiative forcing over the oceans, contributing to additional warming. However, their simplified model may overstate the immediate warming impact. [Link]

Economic Trends

Amazon Fresh to cut grocery prices by as much as 30% to bring back inflation-battered customers (New York Post)
Amazon is cutting grocery prices by up to 30% at its Amazon Fresh stores, both online and in physical locations, to attract inflation-weary customers. The discounts will cover 4,000 items, including meat, seafood, frozen food, dairy, snacks, and beverages, and apply to both national brands and Amazon-owned products. Prime members can enjoy an additional 10% off these reduced prices. Amazon is the latest to follow similar actions by Target and Walmart, which have also announced price cuts to help customers cope with rising food costs. [Link]

Investments

How Researchers Cracked an 11-Year-Old Password to a $3 Million Crypto Wallet (WIRED)
Two years ago, a cryptocurrency owner named Michael lost access to his $2 million worth of bitcoin stored in a password-protected digital wallet. After initial rejection, he convinced famed hacker Joe Grand to take on the challenge. Grand and his friend discovered a flaw in the RoboForm password manager that tied password generation to the computer’s date and time. This breakthrough allowed them to recreate Michael’s password from 2013, unlocking his fortune. Now, with his bitcoin valued at $3 million, Michael reflects on how losing access ultimately led to a greater financial gain. [Link]

Education

Are Gaza Protests Happening Mostly at Elite Colleges? (Washington Monthly)
Student protests against Israel’s actions in Gaza have been notably concentrated at elite colleges, like Columbia University, where fewer students come from lower-income families. Using data from Harvard’s Crowd Counting Consortium, it was found that pro-Palestinian protests and encampments were rare at colleges with high percentages of Pell Grant recipients, which indicates a lower-income student body. In contrast, protests were more common at selective, wealthy institutions. Data suggests that poorer students may prioritize other concerns like jobs and family responsibilities over protesting. Additionally, some colleges have a stronger tradition of activism, while others face political pressures to suppress protests. [Link]

War

‘He couldn’t wait to join’: thousands of young Russians die in Ukraine war (The Guardian)
Shortly after turning 18, Daniil Yermolenko joined the Russian armed forces, inspired by patriotic narratives. Following a brief training period, he was deployed to eastern Ukraine, where he tragically died in early April during intense combat. Yermolenko, the youngest known soldier killed in the conflict, was celebrated in his hometown with a military funeral. His death serves as an example of Russia’s push to recruit its youth, illustrated by increased spending on patriotic education and state-run militarized groups. Despite the Kremlin’s efforts, the effectiveness of this ideological campaign remains uncertain, with financial incentives playing an important role in recruitment. Yermolenko’s brother, Maksim, hopes Daniil’s story will motivate other young Russians to enlist. [Link]

Health & Wellness

What to Know About the Roiling Debate Over U.S. Maternal Mortality Rates (ProPublica)
An unusual public dispute has arisen among maternal health experts regarding the accuracy of the rising US maternal mortality rates over the past two decades. A new study claims that the CDC’s maternal death rates are inflated due to misclassified data and argues that the actual rates are lower and stable. The CDC and the American College of Obstetricians and Gynecologists criticized the study, stressing the importance of accurate data to address the maternal mortality crisis. Specifically, the introduction of the pregnancy checkbox on death certificates has improved the data collection process but also complicated it. Despite the differing views, both sides agree on the disproportionate impact on Black women and the need for more precise data to inform public health initiatives. [Link]

THIS IS THE LAST CHANCE TO SIGN UP WITH OUR MEMORIAL DAY SPECIAL!

Memorial Day was nearly a week ago, but there’s still a little time to get either a full year of Bespoke Premium or six months of Bespoke Institutional for just $527.  Once the special trial period ends, you’ll get 20% off for life if you stick with the service.

Bespoke Premium Memorial Day Special

Bespoke Institutional Memorial Day Special

Have a great weekend!

Bespoke’s Brunch Reads – 4/21/24

Apr 21, 2024

Welcome to Bespoke Brunch Reads — a linkfest of the favorite things we read over the past week. The links are mostly market-related, but there are some other interesting subjects covered as well. We hope you enjoy the food for thought as a supplement to the research we provide you during the week.

While you’re here, join Bespoke Premium with a 30-day trial!

On This Day in History:

The Surgeon’s Photograph: On April 21st, 1934, 90 years ago today, the Daily Mail published the “Surgeon’s Photograph” depicting the Loch Ness Monster. Captured by Dr. Robert Kenneth Wilson, a London gynecologist, the photograph showed what looked like the head and neck of a serpent-like creature emerging from the waters of Loch Ness in Scotland. For decades, the picture captivated the public and fueled speculation about the existence of a mysterious aquatic creature. Depending on your perspective, fortunately, or unfortunately, a hoax. The photograph is really a toy submarine attached to wood putty in the shape of a sea serpent’s head, but tough to tell in a low-quality photo from the thirties! We’ve come a long way with media and image quality, especially with smartphones and the introduction of AI. So, how tough would it be to pull something like this off today?

Microsoft’s AI Copilot Is Starting to Automate the Coding Industry (Bloomberg)
Microsoft’s AI Copilot, developed by GitHub using OpenAI’s GPT-4 technology, is revolutionizing the coding industry by automating routine tasks and allowing software engineers to focus on more complex problems. The ability to complete and translate code across programming languages is saving engineers hundreds of hours each month. This tool has garnered over 1.3 million users, including businesses like Goldman Sachs and Ford, helping GitHub stay competitive against rivals like Amazon and Google. Despite its benefits, Copilot still has limitations, such as occasionally generating outdated or buggy code, and requires careful usage by developers. [Link]

Crucial connection for ‘quantum internet’ made for the first time (Phys.org)
Researchers have successfully produced, stored, and retrieved quantum information for the first time. Quantum information is a bit like the data stored in your computer but operates under the rules of quantum mechanics, which allows it to behave in ways that regular computer data can’t. This breakthrough overcomes a big hurdle. Usually, quantum information gets lost or degrades when sent over long distances, just like a phone call might drop out in a tunnel. By using devices compatible with each other, information can be sent through existing telecom fibers, showing that it’s possible to build networks that can effectively handle this special type of information. [Link]

If you’ve got an EV, Google Maps is about to become much more valuable (Washington Post)
Google has announced updates to its Maps app to improve support for EV drivers, including a new tool to locate nearby charging stations with real-time availability and charging speeds. If you drive an EV, you know that “range anxiety” can be a real thing. Well, the updates also feature route planning for long trips with integrated charging stops and detailed navigational aids for locating chargers in complex places like parking garages and hotels. [Link]

Google who? Gen Z is searching on TikTok, YouTube instead (Axios)
Gen Z is turning its back on Google Search and instead using social media platforms like TikTok and Reddit for searches. This shift highlights their preference for quick, relatable content and their skepticism towards Google’s algorithm, which often prioritizes sponsored content. While Google still leads in overall search usage, the trend among younger users (18-24 years old) suggests a significant change in how information is accessed online. Have you tried some of the AI features out there in place of Google like ChatGPT, Snapchat’s AI, or even Meta’s brand-new Llama 3? [Link]

Meta adds its AI chatbot, powered by Llama 3, to the search bar across its apps (TechCrunch)
Speaking of Meta’s brand-new Llama 3, the social media giant has integrated its latest language model into the search functionalities of its primary apps including Facebook, Messenger, Instagram, and WhatsApp. Alongside this, Meta has introduced a new website, meta.ai, for easier access to its AI chatbot, and added features like faster image generation and the ability to transform images into GIFs. However, the widespread use of AI across its platforms raises concerns about content moderation, given the potential for AI to generate misleading responses. [Link]

Jamie Dimon Has a New Vision for Money in an AI World (BNN Bloomberg)
JPMorgan’s CEO, Jamie Dimon, envisions a future where AI enhances every aspect of the banking industry from trading, research, equity hedging and customer service, often as a “co-pilot.” Comparing AI’s impact to historical innovations like the printing press and electricity, JPMorgan is integrating AI to boost productivity and improve the quality of life for workers, but some jobs will be lost according to Dimon. Despite the push for a financial “super app” similar to those in China, Dimon foresees a trend towards multiple specialized apps in the US. When it comes to picking stocks though, Dimon doesn’t see AI being able to replace humans and pick flawlessly. [Link]

Wait, When Did the Schlubs of Silicon Valley Learn to Dress? (WSJ)
The tech industry has been known for its “disruptive” persona embodied by the style choices of executives like Mark Zuckerberg and Jeff Bezos. Meta’s CEO, Zuckerberg, has long opted for a look that is about as dressed down as it gets, but recently, he’s been appearing in much more conventional and refined attire for those of his status. Perhaps the change in appearance has to do with increased competition and regulatory issues in the tech industry. TikTok’s Shou Zi Chew and Nvidia’s Jensen Huang are going for more mature and respectable styles as well, as a more polished appearance could help project stability and professionalism. [Link]

Environmental

Dubai’s Extraordinary Flooding: Here’s What to Know (New York Times)
Recent heavy rains in the United Arab Emirates and Oman have caused unprecedented flooding, leading to at least 21 deaths, submerged vehicles, clogged highways, and severe disruptions at Dubai’s airport. Despite the Arabian Peninsula’s low annual rainfall, it often comes in severe bursts, and global warming could make such extreme downpours more frequent and intense. The UAW also employs cloud seeding, a process that attaches tiny particles to clouds to enhance rainfall, but its impact on these specific storms remains unclear. The flooding of cities in arid regions like Sharjah shows how they are often ill-prepared for so much rainfall, lacking adequate drainage systems. [Link]

Record breaker! Milky Way’s most monstrous stellar-mass black hole is sleeping giant lurking close to Earth (Video) (Space.com)
The Milky Way has revealed a new stellar-mass black hole, discovered close to Earth and named Gaia-BH3. Found using the European space telescope Gaia, this black hole is 33 times the mass of our sun and is just 2,000 light-years away, making it the second-closest black hole to Earth ever discovered. Unlike the supermassive black holes, Gaia-BH3 formed from the collapse of a massive star, offering unique insights into the population of dormant stellar black holes in our galaxy. [Link]

Economic Trends

Million-Dollar Analyst Jobs at Risk in China Research Pullback (Yahoo Finance)
Due to a prolonged market downturn and stricter regulations in China, firms are cutting costs by reducing staff, slashing bonuses, and imposing stricter performance metrics. For example, Guotai Junan Securities saw several senior analysts resign rather than accept pay cuts, and another brokerage in Shenzhen laid off 40% of its analysts. That’s a sharp U-turn from previous years when brokerages were expanding and offering high salaries to attract top talent. Additionally, policy changes that reduce trading fees and restrict paid research have further pressured the industry. These challenges are compounded by a general wariness among investors toward Chinese stocks, leading to a decreased demand for equity research. [Link]

Investments

The Headache at the End of the Costco Gold Rush (WSJ)
We’ve discussed the Costco gold bars here before, but selling them proves to be much more challenging than buying them. One buyer bought a gold bar for $2,000 and struggled to sell it close to market value, eventually settling for $1,960. Despite high consumer interest in gold as a hedge against inflation, the reality is that gold is not very liquid, and sellers often face immediate losses due to transaction fees and market discounts, nor does Costco offer buybacks or returns on its gold bars! [Link]

Read Bespoke’s most actionable market research by joining Bespoke Premium today!  Get started here.

Have a great weekend!