Bespoke’s Brunch Reads – 3/15/24

Mar 17, 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:

These Kids Made Their Influencer Parents Wealthy. Will They See a Dime of That Money? (Cosmopolitan)
Growing up as a child influencer, Vanessa’s life was intertwined with her mother’s blog and social media ventures, with no financial compensation for her efforts. Despite contributing to her family’s income through brand deals and content creation, Vanessa discovered at 18 that she had no earnings set aside for her. This story discusses the “sharenting” industry, where children’s contributions to family vlogging businesses often go unrewarded.  The only state that offers legal protection for child influencers’ earnings is Illinois. [Link]

A waste of time and money (Klement on Investing)
Following “finfluencers,” or financial influencers, might not be such a good idea if you’re taking their investment advice. According to one study, on average, investors following these finfluencers underperformed the market by 0.35% per month, translating to an annualized underperformance of 4.1%. While a minority of top-performing finfluencers outperformed the market significantly, a substantial portion exhibited “antiskill,” meaning their recommendations resulted in statistically significant negative returns. Interestingly, the study found that those with the most followers were more likely to offer poor advice, suggesting that popularity on social media platforms might not correlate with financial acumen. [Link]

YouTube TV Is Thriving in the Cable Replacement Space as a ‘One-Stop Shop’ for Consumers (Yahoo Entertainment)
YouTube has emerged as a formidable contender in the streaming landscape, surpassing major streamers like Netflix in total TV viewing share. With its YouTube TV subscription service, YouTube is also challenging traditional cable giants, boasting 8 million subscribers in 2023, nearly double that of its closest competitor, Hulu + Live TV. Importantly, YouTube has captured loyalty with Millennials and Gen Z as it offers its traditional creator channels alongside its TV options which inlcude live sports like the NFL Sunday Ticket package. With streaming services fighting over channels and popular names that often rotate in and out, viewers have become fed up with the number of services they need to pay for to get everything they want. [Link]

American Debt Stings Like Never Before in New Era for Households (Yahoo Finance)
US families, already strained by inflation, are now grappling with the cost of debt due to rising interest rates. This has led to higher delinquency rates and increased financial burdens. The Federal Reserve’s rate hikes have pushed up the cost of consumer borrowing, intensifying economic pressures on households. This situation affects consumer sentiment and may impact political dynamics, as financial stability becomes a crucial issue for Americans in this election year. The resumption of student loan payments after the pandemic-era pause is another stress point for those who can’t even fund a savings account because they are living paycheck to paycheck. [Link]

IKEA slashes prices on products as transportation and materials costs ease (USA Today)
IKEA is reducing prices on numerous products in various countries and plans further cuts in 2024, due to positive economic developments and cheaper raw materials. This strategy, aimed at making quality design more accessible, follows efforts to decrease operational costs and enhance efficiency. The initiative started in Europe, leading to increased customer numbers and sales. Ingka Group, IKEA’s largest store owner, is investing in these price reductions to adjust prices to pre-pandemic levels by the end of the next year. [Link]

Airlines Want to Stop ‘Travel Hack’ JSX From Luring Rich Flyers Away (Yahoo News)
JSX, a Dallas-based carrier, has revolutionized air travel for business travelers by offering the convenience of a chartered plane at near business class prices, thanks to creative use of regulatory loopholes that involves operating two companies that work together to schedule flights and sell tickets while avoiding the stringent safety and security requirements that apply to larger scheduled flights. JSX now operates nearly 35,000 flights over 48 routes and still maintains a strong safety record. It is also considering expansion into hybrid electric planes. JSX says that bigger airlines are trying to put it out of business as they struggle to recover corporate travelers from the pandemic. [Link]

AI & Technology

Why Walmart’s quick success in generative AI search should have Google worried (CNBC)
Walmart is using AI to transform its app into a comprehensive solution for event planning and therefore reducing the need for multiple online sources or reliance on search engines like Google. Walmart CEO Doug McMillon spoke about the search capability improvements within the retailer’s app thanks to generative AI, which helps customers find exactly what they are looking for more efficiently. Other companies are investing in the technology as well, like “Ask Instacart” which allows users to search by theme rather than specific items. Amazon and Shopify are other examples. This trend has begun to emerge amid Google’s own recent issues with Gemini. [Link]

Doctors using the Apple Vision Pro for surgery is now a thing (Quartz)
If people walking around town wearing the headset wasn’t unsettling enough, at London’s Cromwell Hospital, the $3,500 Apple Vision Pro played a crucial role in two spinal surgeries. The device wasn’t worn by the doctors but by a scrub nurse who utilized it to display virtual screens for selecting tools and tracking the surgery’s progress. This integration of VR technology in surgical procedures, developed in collaboration with eXeX for AI-driven surgical apps, is hailed as game-changing by the medical team. Apple’s Vision Pro is also being used for surgical planning, training, and medical education through apps like myMako, Fundamental Surgery, and Complete HeartX. [Link]

China using AI to run world’s largest high-speed railway system (Interesting Engineering)
China has the largest high-speed rail network in the world, spanning 45,000 kilometers. It’s now using AI. Managed from Beijing, the AI system boasts an accuracy level of 89% and significantly enhances the efficiency and safety of the rail network by processing vast amounts of data in real time, enabling maintenance teams to swiftly address any irregularities. This technological advancement has led to an 80% reduction in minor track faults and eliminated major track irregularity warnings, contributing to the high-speed rail’s status as the fastest in the world. As China aims to extend its high-speed rail to connect all cities with populations over 500,000, the use of AI in rail management will be even more important. [Link]

Health & Wellness

Experimental weight loss pill seems to be more potent than Ozempic (New Scientist)
Weight loss drugs have been a spark plug for stocks like Eli Lilly (LLY) and Novo Nordisk (NVO), the makers of Mounjaro, Zepbound, Ozempic, and Wegovy. Now, an experimental pill called Amycretin has shown promising early trial results, causing significant weight loss—13% over three months. That surpasses the effects of injectable treatments such as the aforementioned. Amycretin mimics both the GLP-1 and amylin hormones, potentially offering a more potent weight loss solution compared to the current options. However, its long-term effectiveness and safety remain to be fully evaluated. The pill form could be particularly appealing for those averse to injections. [Link]

Why the Y chromosome is vanishing and what this means for the future (The Week)
The Y chromosome, essential for determining male sex in humans, has lost the majority of its original genes over millions of years. Unlike the X chromosome, the Y chromosome lacks genetic recombination, which helps eliminate harmful mutations, leading to its rapid degradation. Researchers suggest that if the Y chromosome were to disappear, it could result in the extinction of humans or the emergence of new human species with different sex determination systems. Others say that the Y chromosome has developed characteristics to preserve its function. [Link]

‘Alarming’ rise in Americans with long Covid symptoms (The Guardian)
A CDC survey reveals that 6.8% of American adults are currently experiencing long-Covid symptoms. That’s a big increase and has sounded the alarm among “experts”. Following a major surge in infections, the majority of long Covid sufferers report a significant impact on daily activities. The rise in cases is now estimated at 17.6 million Americans. [Link]

No such thing as ‘long COVID,’ health agency says in shocking claim: ‘Unnecessary fear’ (New York Post)
Contrary to the last article, long Covid doesn’t exist at all. Researchers say that the term instills unnecessary fear and isn’t markedly different from post-viral symptoms of other illnesses like the flu. Their study surveyed over 5,000 individuals, finding no significant difference in the severity of post-viral symptoms between those who tested positive for COVID-19 and those who didn’t, or those who had the flu. The discrepancy between findings in these two articles demonstrates the need for further research into post-viral syndromes. [Link]

Environmental

Where Heat Pumps Win — And Where They Lose (Heatmap News)
Researchers at the National Renewable Energy Lab (NREL) found that heat pumps are a cost-effective option for roughly 65 million U.S. homes, or 60% of the country, even before accounting for subsidies. The study considers various factors including home types, local climates, and energy prices, and determined that heat pumps can lower greenhouse gas emissions immediately in all 48 contiguous US states. However, the up-front costs of high-efficiency heat pumps may be prohibitive for many, regardless of the possibility for long-term utility bill savings. Incentives and advancements in heat pump technology could make these systems more accessible and financially viable for a broader range of households. [Link]

It’s Official: America Is Experiencing a Solar Power Explosion Unmatched in History (Popular Mechanics)
The Solar Energy Industries Association reported that the US added 32.4 gigawatts of solar capacity in 2023, the most in a single year. It also represents 52% of all new energy capacity. This growth was propelled by the Inflation Reduction Act’s clean energy incentives and the completion of delayed projects. Texas and California led the expansion which is expected to continue. [Link]

Privacy & Security

Automakers Are Sharing Consumers’ Driving Behavior With Insurance Companies (NYT)
Kenn Dahl experienced an unexpected 21% increase in his car insurance premium, despite being a careful driver with no accident history. Later he found out that it was because his LexisNexis report, which detailed every trip made in his Chevrolet Bolt over six months, including data on speeding, hard braking, and rapid accelerations, provided by General Motors. Automakers and data brokers collect driving data to offer personalized insurance rates. While some programs are voluntary and require driver consent, concerns have arisen about privacy, the clarity of consent, and the potential for increased insurance costs without explicit knowledge. [Link]

How TikTok Was Blindsided by U.S. Bill That Could Ban It (WSJ)
Despite previous signs of stability, including President Biden himself joining TikTok, behind-the-scenes efforts in Washington were aiming to either ban TikTok or force its sale due to concerns over its Chinese ownership and the perceived risks to national security. The proposed legislation, gaining momentum after concerns over TikTok videos related to the Israel-Hamas conflict, represents the most significant threat to TikTok’s operations in the US to date. TikTok has been mobilizing its user base to push back against the legislation, despite facing backlash from lawmakers for this approach. [Link]

Cities to Cities

Automakers Are Sharing Consumers’ Driving Behavior With Insurance Companies (NYT)
Kenn Dahl experienced an unexpected 21% increase in his car insurance premium, despite being a careful driver with no accident history. Later he found out that it was because his LexisNexis report, which detailed every trip made in his Chevrolet Bolt over six months, including data on speeding, hard braking, and rapid accelerations, provided by General Motors. Automakers and data brokers collect driving data to offer personalized insurance rates. While some programs are voluntary and require driver consent, concerns have arisen about privacy, the clarity of consent, and the potential for increased insurance costs without explicit knowledge. [Link]

How TikTok Was Blindsided by U.S. Bill That Could Ban It (WSJ)
Despite previous signs of stability, including President Biden himself joining TikTok, behind-the-scenes efforts in Washington were aiming to either ban TikTok or force its sale due to concerns over its Chinese ownership and the perceived risks to national security. The proposed legislation, gaining momentum after concerns over TikTok videos related to the Israel-Hamas conflict, represents the most significant threat to TikTok’s operations in the US to date. TikTok has been mobilizing its user base to push back against the legislation, despite facing backlash from lawmakers for this approach. [Link]

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Have a great weekend!

Bespoke’s Brunch Reads – 3/3/24

Mar 3, 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 Warren Buffett Protégée Is on the Hunt for Small Companies. She Now Has Millions More to Spend. (WSJ)
Tracy Britt Cool, a former Warren Buffett protégé, co-founded Kanbrick, aiming to invest in midsize businesses with a competitive edge. Focusing on consumer businesses, the company rules out financial services, healthcare, real estate, and other industries in what boils down to a couple of companies a year. It’s a highly selective process trying to find businesses with a “moat,” as Buffett likes to say. While inspired by Berkshire Hathaway’s principles, Kanbrick aims to forge its own path. [Link]

Are We in a Stock Market Bubble? (Ray Dalio)
On LinkedIn, Ray Dalio, founder of Bridgewater, suggests that while some segments like the “Magnificent 7” appear frothy due to high valuations and expectations around generative AI, the broader US stock market does not exhibit classic bubble characteristics. Dalio cited criteria such as price levels relative to traditional measures, sustainability of conditions, the influx of new and naïve buyers, overall market sentiment, the degree of leveraged purchases, and the extent of speculative forward purchases. According to Dalio, while certain areas show elevated metrics, overall, the market does not match the extreme conditions seen in past bubbles. [Link]

Wendy’s Bold Move: Dynamic Pricing Strategy Set to Transform Fast-Food Industry (BNN)
Wendy’s, the fast-food chain, is looking to revolutionize its pricing strategy by introducing dynamic pricing across its outlets. Inspired by practices in the airline and rideshare industries, Wendy’s said it would adjust prices in real-time based on the time of day. The goal was to attract more customers during quieter periods while managing demand during peak times. However, this innovative approach also poses a challenge: 52% of consumers perceive such fluctuations as price gouging. [Link]

Consumers Pushing Back Against Price Increases — And Winning (Voice of America)
Consumer behavior in response to inflation has shifted significantly. Frustrated by persistently high prices, Americans are opting for store-brand items, exploring discount stores, and buying fewer luxury goods. The food sector has seen the most pushback against price increases, prompting large food companies to slow their hikes. Despite overall inflation declining from its 2022 peak, it remains a central concern, with President Joe Biden criticizing excessive corporate price hikes and highlighting “shrinkflation,” where companies reduce product sizes instead of raising prices. [Link]

AI & Technology

There are growing calls for Google CEO Sundar Pichai to step down (Business Insider)
After recent issues with Gemini, analysts and industry insiders are questioning if CEO Sundar Pichai, who has led Google and Alphabet since 2015 and 2019 respectively, is the right person to navigate Google through this critical period of intense competition in AI. Despite Pichai’s success in growing Google’s market cap significantly, there’s concern that the company’s internal bureaucracy, idealogy, and caution are hindering its ability to innovate. [Link]

Apple Cancels Work on Electric Car, Shifts Team to Generative AI (Bloomberg)
Apple has canceled its ambitious decade-long project to build an electric car, according to insiders. The decision surprised the nearly 2,000 employees working on the project. COO Jeff Williams and Kevin Lynch, in charge of the effort, shared the news internally. The car team, known as the Special Projects Group (SPG), will shift to the artificial intelligence division, focusing on generative AI projects. Layoffs are expected, but the exact number remains unclear. [Link]

Klarna says its AI assistant does the work of 700 people after it laid off 700 people (Fast Company)
The AI chatbot now handles two-thirds of all customer service interactions at Klarna, a buy-now, pay-later company. That amounts to 2.3 million conversations, and it has achieved customer satisfaction levels comparable to human agents. Despite layoffs in 2022, Klarna insists the AI’s productivity equivalent to 700 full-time agents is aimed at showcasing the long-term benefits of AI technology rather than replacing human jobs. [Link]

Google Left in ‘Terrible Bind’ by Pulling AI Feature After Right-Wing Backlash (BNN Bloomberg)
Google’s AI chatbot, Gemini, faced controversy for not producing accurate image generations, even in historical contexts where the chatbot seemed to refrain from showing white people in multiple examples where they should be. Google paused Gemini’s image generation feature and is addressing the issue, emphasizing that no AI is perfect. Critics argue that Google’s approach to AI image generation, which aims to counteract bias, lacks clarity and may not fully address underlying data biases. [Link]

Throwback for Philadelphia tech: What were you doing in 2009? (Technical.ly)
In 2009, Chris Wink, Sean Blanda, and Brian James Kirk founded Technical.ly Philly to cover Philadelphia’s rising tech scene. Over 15 years, Technical.ly expanded to Baltimore, DC, Delaware, and Pittsburgh, documenting local tech communities and companies. Reflecting on the changes, industry figures highlight a stronger, more vibrant tech ecosystem in Philadelphia, marked by increased startup activity, collaborative projects, and advancements in digital equity. Looking ahead, there’s optimism for Philadelphia to emerge as a leader in AI ethics. [Link]

Environment

South Fork Wind just became the US’s first complete utility-scale offshore wind farm (Electrek)
New York’s South Fork Wind, developed by Ørsted and Eversource, has completed installation of its final turbine, becoming the first utility-scale offshore wind farm in US federal waters. The 132-MW project will power 70,000 homes in Long Island and reduce carbon emissions significantly, contributing to cleaner energy and environmental benefits. [Link]

Startup is shipping 100,000-year-old Arctic ice from Greenland to chill cocktails in Dubai (New York Post)
Arctic Ice, a Greenland startup, is facing criticism for shipping ancient glacier ice to Dubai for use in high-end cocktails. The company claims it only uses ice from already detached icebergs, aiming to prevent their meltwater from raising sea levels. However, critics argue the operation exploits natural resources and contributes to carbon emissions. [Link]

Geothermal startup Fervo Energy is tapping fresh $221M round, filing reveals (TechCrunch)
Fervo Energy, a geothermal startup from Houston, has raised $221 million to enhance its geothermal power generation methods. Utilizing advanced drilling techniques and technology, the company aims to harness Earth’s deep thermal energy more efficiently. The startup has already achieved a faster and cheaper drilling process, a Department of Energy grant, and the successful launch of a geothermal power plant in Nevada supplying power to Google’s data centers. This new round of funding is expected to further Fervo’s efforts in expanding geothermal energy’s role in providing sustainable power. [Link]

Sports

‘I just saw the best player on the field’: Wyatt Langford is turning heads with every thunderous swing of his bat (ESPN)
At the Texas Rangers spring training, an unexpected star emerged according to pitching coach Mike Maddux: Wyatt Langford, a power-hitting outfielder. Despite the team’s focus on bolstering their pitching, Langford’s prowess at bat has caught the eye of coaches, hinting at an even stronger offensive lineup for the Rangers. Drafted fourth in 2023, Langford quickly ascended through the minor leagues with standout performances, positioning himself as a viable contender for the major league. His rapid progress and remarkable stats suggest Langford could be a significant addition to the Rangers, offering a fresh offensive dynamic to the World Series champions. [Link]

‘Seventy is the new 50’: Why NBA offenses are as prolific as ever (ESPN)
The NBA is witnessing its highest scoring averages since the 1969-70 season, fueled by rule changes in the mid-2000s designed to enhance game pace and scoring. This offensive explosion, highlighted by several players scoring over 60 points in a single game, has led to discussions within the league about the current balance between offense and defense. The league is contemplating if and how to adjust the rules to bring more defense, or less scoring, into the game. With players shooting better than ever from beyond the arch, maybe it’s time to move the three-point line back? [Link]

Health & Wellness

Ultraprocessed foods linked to heart disease, diabetes, mental disorders and early death, study finds (Yahoo Life)
In the age of weight loss drugs and trends towards healthier lifestyles, a comprehensive review of 45 meta-analyses involving nearly 10 million people has found that consuming ultra-processed foods significantly increases the risk of developing or dying from various health conditions. If we’re looking at the numbers, the study suggests a 50% higher risk of cardiovascular disease-related death and common mental disorders. Ultra-processed foods, high in calories, added sugar, sodium, and low in fiber, are linked to obesity, type 2 diabetes, depression, and potentially cancer. [Link]

Obesity now greater risk to global health than hunger (The Telegraph)
Obesity has surpassed hunger as the leading global health threat, with over one billion people worldwide now clinically obese. This marks the first time the number of obese individuals has exceeded those considered underweight. The increase in obesity, particularly among the younger population, raises concerns about the long-term health implications, including type 2 diabetes, cancer, and mental health issues. The study calls for action from both the health sector and broader society to address this growing issue, including changes in food industry practices and government strategies to promote healthier lifestyles. [Link]

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Have a great weekend!

Bespoke’s Brunch Reads – 2/25/24

Feb 25, 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:

These Teenagers Know More About Investing Than You Do (WSJ)
Teens, with the help of their parents, are venturing into the world of investing, owning shares in major companies like Tesla, Apple, and Amazon.com. The number of custodial accounts at Schwab is up from 120,000 in 2019 to more than 300,000 in 2023. It’s part of a trend that originated during the pandemic when new investors began trading to capitalize on the market’s downturn. Hot tech stocks that today’s youth know well have also brought attention to the benefits of investing. Many are even learning about investing through the Internet’s influencers on platforms like YouTube. [Link]

You can put a price tag on the value of a personal finance education: $100,000 (CNBC)
A personal finance class in high school can yield a lifetime benefit of approximately $100,000 per student by teaching crucial financial management skills, such as avoiding high-interest debt and improving credit scores. This knowledge not only benefits the students but also has a positive ripple effect on families and communities. Many school districts are even requiring the classes as research links financial literacy to significant improvements in financial well-being, including higher savings rates, better credit scores, and lower delinquency rates. [Link]

AI & Technology

Generative AI’s environmental costs are soaring — and mostly secret (Nature)
With all the hype behind AI, it doesn’t sound like anyone wants to address the elephant in the room. OpenAI CEO Sam Altman has acknowledged the AI industry’s looming energy crisis, noting the substantial power consumption expected from future generative AI systems. Without a significant energy breakthrough, AI’s energy demands could outpace current systems. The environmental impact of AI extends beyond energy to include significant water use for cooling data centers, as seen with OpenAI’s GPT-4 and other large models from tech giants. There’s tons of work to be done, especially coming from Altman who has proposed massive investment to fund new AI projects. [Link]

AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity. (IMF)
The advancement of artificial intelligence (AI) presents a dual-edged sword: it has the potential to significantly enhance productivity and economic growth globally but also risks replacing jobs and exacerbating inequality. According to IMF research, about 40% of global employment could be affected by AI. Within countries, AI could increase income disparities, benefiting those who can utilize AI effectively while disadvantaging others. The IMF has developed an AI Preparedness Index to help countries assess their readiness for AI adoption, highlighting the need for targeted investments in digital infrastructure, education, and regulatory frameworks to ensure AI benefits are broadly shared. [Link]

Foreign Affairs

How U.S. Pressure Helped Save Brazil’s Democracy (Foreign Policy)
Brazil’s federal police recently raided former President Jair Bolsonaro and his allies for allegedly plotting a coup after his 2022 election loss. Amidst these developments, US President Joe Biden’s targeted pressure on key Brazilian officials played a role in upholding Brazil’s democracy, ensuring a peaceful power transition. Foreign policy has had much of the spotlight in the US during this election year, and this was a win for the US in an area that has otherwise faced heavy criticism. [Link]

Megaprojects in the Desert Sap Saudi Arabia’s Cash (WSJ)
Saudi Arabia’s ambitious Vision 2030 projects, including massive property developments, are driving the kingdom to increase its borrowing and consider another sale of Saudi Aramco stock due to dwindling cash reserves in its sovereign wealth fund. These costly initiatives, aimed at diversifying the economy away from oil, are putting financial pressure on the country amid moderate oil prices and high-interest rates. [Link]

Housing

How the housing industry is working to stop energy efficient homes (Washington Post)
North Carolina developer Ron Jackson argues that tightening energy efficiency building codes would make housing unaffordable for many Americans by significantly increasing construction costs. The regulations are claimed to inflate the upfront costs of new homes. However, critics and some green builders contest these claims, pointing out that the proposed energy efficiency measures would increase costs by far less than the industry states and would pay off over the long-term through lower utility bills. [Link]

End of an Era

Death, Lonely Death (Crooked Timber)
Launched in 1977, Voyager 1’s journey through the Solar System is nearing its end as it faces system failures billions of miles from Earth. After surpassing its original three-year mission by decades and making groundbreaking discoveries including the first close-up photos of Jupiter’s moons and entering interstellar space in 2012, the spacecraft began sending back unintelligible data in December 2023, indicating possible software or hardware issues which efforts to resolve haven’t worked. [Link]

Vice Media stops publishing on website and cuts hundreds of jobs (BBC News)
A lot is going on in digital media these days, especially with the rise of AI and more advanced technology. Vice Media filed for bankruptcy in the US in May and is now laying off hundreds. Vice will collaborate with established media firms for content distribution, citing the current model as cost-ineffective. It marks the end of an era in many ways, as Vice had several notable moments including documenting terror groups in Syria and Dennis Rodman’s relationship with North Korea, to name a couple of examples. [Link]

Strawberries

How Driscoll’s Reinvented the Strawberry (The New Yorker)
Driscoll’s, which holds a major stake in the US berry market, is exploring the introduction of unique strawberry varieties to appeal to new consumer segments, such as millennials who are more open to trying unconventional foods. Facing competition from the University of California Davis’s breeding program, Driscoll’s aims to maintain its market dominance by developing proprietary berries and packaging, despite challenges such as labor shortages and diseases. [Link]

Sports

What Happened to Baseball Jerseys? (The Atlantic)
They’re thin, poor fitting, the colors are off, the spacing is wrong, and they look downright fake. Those are some of the concerns with the MLB’s new Nike uniforms for the upcoming season. If you haven’t heard or seen the news and memes online, the new jerseys have become very unpopular, very quickly. Not only do players and fans disapprove, but they’re expensive for fans who would like to purchase them for casual wear. Unfortunately, some of the measures to enhance the performance of the gear, as well as cut costs, have weighed on the quality of the product. [Link]

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Have a great weekend!

Bespoke’s Brunch Reads – 12/17/23

Dec 17, 2023

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:

‘It’s all gone’: CAR-T therapy forces autoimmune diseases into remission (Nature)
CAR-T-cell therapy, a groundbreaking approach initially used for cancer treatment, has shown promising results in treating autoimmune disorders. In a recent study, 15 participants with autoimmune conditions experienced significant improvement, remaining disease-free or nearly so after the treatment. This therapy involves engineering a patient’s T cells to produce proteins called chimeric antigen receptors (CARs), which target and destroy B cells responsible for the autoimmune response. [Link]

Inhaled SARS-CoV-2 vaccine for single-dose dry powder aerosol immunization (Nature)
Scientists have developed a new type of COVID-19 vaccine that you can inhale as a dry powder instead of getting as a shot. This vaccine is designed to work after just one dose, and it targets the lungs to give a strong immune response, not just in the bloodstream but also in the respiratory system. The vaccine can also adapt to different strains of the virus, such as the original and Omicron variants, making it a promising tool for fighting COVID-19 and possibly other similar viruses. [Link]

Economic Trends

Digesting inflation (Briefing Book)
Despite recent disinflation, consumer sentiment remains negative, potentially due to the cumulative effect of significant price increases over the past three years. Even though annual inflation eased to 3.2% this year, the overall increase in prices over the last three years was 18.6%. The University of Michigan’s consumer sentiment index remains low, similar to levels during the Great Recession, despite improvements in inflation and gas prices, as well as a seemingly lower risk of recession. [Link]

The ID.4 Could Be Volkswagen’s First EV Made With U.S. Union Labor (Heatmap News)
UAW president Shawn Fain aims to aims to organize non-union auto workers, starting with Volkswagen’s Chattanooga, Tennessee plant where over 30% of workers have signed union cards. The Chattanooga plant, VW’s only US factory, has been accused of lower pay and poor working conditions. Previous unionization attempts failed in 2014 and 2019. Potential unionization at Tesla’s US factories was also mentioned. This development comes after UAW secured significant raises and benefits with major automakers earlier this year. [Link]

Lending and Saving

Gen X’s Retirement Problem (RIA Intel)
Gen X is looking at a retirement savings issue, as nearly half of non-retired Gen Xers (aged 43 to 58) have not started retirement planning, with 61% expressing doubt about achieving their dream retirement. This group anticipates needing $1.1 million for a comfortable retirement but expects to have only about $661,013 saved, creating a savings gap of $451,170, which is larger than that of Millennials and Baby Boomers. Contributing to this issue is Gen X’s allocation of 32% of their retirement assets to cash, driven by a fear of loss and a lack of investment knowledge. This points out the need for financial literacy and knowledge for effectively saving for retirement. Check our “Get Invested” slides that point out the benefits of long-term investing in the stock market! [Link]

Elon Musk told lenders they would not lose money on Twitter deal (Financial Times)
Elon Musk assured the banks who lent him $13bn for his Twitter buyout, now rebranded as X, that they would not incur losses (would they have lent to him if he promised them losses), despite the company’s value falling sharply post-acquisition. However, the lenders, including major banks like Morgan Stanley and Bank of America, face potentially significant losses if they sell the debt, with market investors showing reluctance to buy X’s bonds and loans. The banks have kept the debt on their balance sheets, hoping for an improvement in X’s performance after cost-cutting measures. [Link]

Crime

Crime in 2023: Murder Plummeted, Violent and Property Crime Likely Fell Nationally (Jeff-alytics)
Challenging the common perception that crime is on the rise in the US, this article discusses crime’s decline in 2023. Based on data from the FBI, murders have decreased 12.7%, with declines in 73% of over 175 cities analyzed. Now, that doesn’t mean there aren’t outlier cities that have experienced a rise in crime, nor does it mean the level of violence is close to acceptable. Other violent crimes also saw significant drop-offs YoY, with motor vehicle theft up 10%. Violent crime is also down across the board between urban, suburban, and rural counties. Ideally, this news provides a hopeful outlook that violent crime can continue to trend in the right direction. [Link]

Artificial Intelligence

News Publishers See Google’s AI Search Tool as a Traffic-Destroying Nightmare (WSJ)
The Atlantic is concerned about Google’s integration of AI into its search engine, fearing it could significantly reduce the magazine’s web traffic. About 40% of The Atlantic’s traffic comes from Google searches, and a model suggests that AI-powered searches could answer 75% of user queries directly, bypassing external links to the magazine. Google is testing an AI search product called “Search Generative Experience” with 10 million users. This shift highlights the risks for media outlets relying on tech companies for visibility, especially as AI technology could directly provide answers, reducing the need for users to visit the original content sources. [Link]

Enforcing Laws & Regulations

US agency takes first step to mandate anti-drunk driving technology (Reuters)
U.S. auto safety regulators have initiated steps to mandate carmakers to incorporate technology that prevents intoxicated drivers from starting their vehicles. This move follows a congressional directive in 2021, aiming to reduce over 10,000 annual road deaths caused by impaired driving. Various technologies are being considered, including breath or touch-based sensors that detect the presence of alcohol and cameras that monitor eye movements. However, the NHTSA needs to ensure the reliability of these technologies and their public acceptance, as even a 99.9% accuracy rate could result in a significant number of false positives. [Link]

Federal Regulators Seek to Force Starbucks to Reopen 23 Stores (NYT)
Federal labor regulators have accused Starbucks of illegally closing 23 stores as a tactic to suppress union organizing among its employees, with at least seven of these stores having unionized. The issue is set for a hearing with an administrative judge next summer, unless settled earlier by Starbucks. The company has faced over 100 complaints and numerous rulings against it for similar issues. The National Labor Relations Board is seeking to reopen these stores and compensate affected employees. [Link]

Creative Combinations

Doritos nacho cheese liquor sounds like a stunt, but it’s actually good (Washington Post)
This unusual spirit was born out of curiosity when the CEO of Empirical Spirits, experimenting with distillation, decided to use actual Doritos as the flavor source. Initially kept as a novelty item for friends and family, the spirit evoked strong, nostalgic reactions and was eventually presented to Frito-Lay. Despite its unconventional nature, the product is seen as a creative exploration in the spirits industry, recommended for use in cocktails like margaritas and Bloody Marys. [Link]

Competitive Markets

Kirkland & Ellis: is it party over for the world’s most profitable law firm? (Financial Times)
Kirkland & Ellis, a highly profitable law firm known for its work with private equity, has developed a culture and business model similar to a hedge fund or investment bank, with aggressive tactics and high earnings for partners. However, it faces new challenges as interest rates rise and private equity deals decline, affecting its co-investing perks and overall business. Additionally, Kirkland’s dominant position and practices have come under scrutiny from industry bodies and competitors, with rivals adopting similar strategies and poaching its business. [Link]

Give a Gift

Thank your Amazon driver with a $5 gift at no extra cost (ABC4 Utah)
Amazon has launched a holiday initiative where customers can show appreciation to their delivery drivers through the website or app, or even using Alexa by saying “Alexa, thank my driver.” The first 2 million expressions of gratitude will include a $5 gift from Amazon to the driver, at no cost to the customer. This “Thank My Driver” program, which began in 2022, has been a year-round initiative, with top-thanked drivers from the previous year receiving $10,000 from Amazon. Happy holidays! [Link]

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