Marketplace Morning Report – October 20, 2025

Episode Theme:
This episode centers on a major Amazon Web Services outage that rippled across the internet, impacting banks, websites, financial platforms, and daily life. The show also covers recent volatility in cryptocurrency markets, the ongoing U.S. government shutdown, China’s economic slowdown, and a high-profile corporate sale in luxury beauty.

Key Discussion Points & Insights

1. Amazon Web Services (AWS) Outage Disrupts the Internet

[01:23 – 02:58]

• Overview:
  A significant outage in Amazon’s cloud computing infrastructure, primarily based in Northern Virginia, took down or disrupted operations for a wide range of companies and services.

• Impacted Platforms:

  • Social: Facebook, Snapchat, Reddit
  • Gaming: Roblox, Fortnite
  • Commerce: Lyft, McDonald’s, T-Mobile, Verizon, Amazon itself
  • Finance: Venmo, Robinhood, Coinbase
  • International: UK’s Lloyds bank, national tax authority

• Response:

  • Amazon reported “significant signs of recovery” after 5 a.m. Eastern.

• Key Quote:

  “The website Down Detector started reporting a spike in outages related to Amazon Web Services.”
  — Mitchell Hartman, [01:47]

2. Crypto Turbulence and ETF Hopes

[02:58 – 05:52]

• Market Downturn:

  • Bitcoin fell 12% from its recent high ($126,000 → just below $111,000).
  • Other cryptocurrencies like Dogecoin and Solana faced jitters.

• Personal Impact:

  • Investor Glauber Contessotto reported a $330,000 loss on Dogecoin in a week.
  • Still optimistic about Dogecoin’s future, citing potential ETF launches.

• ETF Developments:

  • ETFs (Exchange Traded Funds) allow easier public investment in crypto.
  • 130+ altcoin ETFs await SEC approval but are delayed by the government shutdown.
  • Example: Bitcoin ETFs launched previously saw $50 billion in inflows in their first year.

• Risks & Warnings:

  • Duke University researcher Lee Reiners cautioned against equating ETF packaging with safety:

    “Just because it's in a familiar wrapper in this case an ETF does not mean that it is somehow safe or cannot go down significantly.”
    — Lee Reiners, [05:23]

• Key Quotes:

  “Okay, over the last week I am down 312,000, no, $330,000 on Dogecoin specifically.”
  — Glauber Contessotto, [03:31]

  “These were one of the most successful ETF launches of all time.”
  — Zach Pandal (Grayscale), [04:39]

3. U.S. Government Shutdown: Economic and Logistical Impacts

[05:52 – 06:29]

• Government Services Affected:

  • Affordable Care Act subsidies and Medicaid benefits at risk.
  • Air travel disruptions: 5,800 flights delayed; air traffic controllers working unpaid, risking fatigue and lower morale.

• Context:

  • 20th day of the partial federal government shutdown.

4. China’s Economic Slowdown Amid Global Tensions

[07:31 – 08:47]

• Economic Data:

  • 4.8% year-over-year growth in summer quarter (slowest pace this year).
  • Exports to U.S. down 27% (tariffs) but overall exports up 8.3%.
  • Housing market slump: Prices down 35% since 2021 peaks.
  • Retail sales up 3% in September, slowest since last December.
  • China's Communist Party leaders convene for a key economic plan.

• Key Insight:

  • The economy “is lopsided, driven mainly by manufacturing and overseas demand.”
    — Jennifer Pak, [07:56]

  • Pain expected as China finds “new growth drivers,” with official blame for slow growth partly assigned to “abuse of tariffs by some countries” (implied U.S.).

5. Corporate News: Gucci Sells Beauty Business

[08:47 – 09:26]

• Deal:

  • Kering (owner of Gucci, Yves Saint Laurent, and others) sells Gucci’s perfume and beauty business to L’Oreal for $4.7 billion.

• Humorous Note:

  • “If you use Irish Spring, that is not affected at all by this deal.”
    — David Brancaccio, [09:13]

Notable Quotes & Memorable Moments

• On the AWS Outage:

  “Amazon Web Services is a major provider of cloud computing services, from servers to storage to many of the biggest companies in the world.”
  — Mitchell Hartman, [01:47]

• On Crypto Losses:

  “Over the last week I am down 312,000, no, $330,000 on Dogecoin specifically.”
  — Glauber Contessotto, [03:31]

• On ETF Risks:

  “Just because it's in a familiar wrapper in this case an ETF does not mean that it is somehow safe or cannot go down significantly.”
  — Lee Reiners, [05:23]

Timestamps for Important Segments

• [01:23] AWS outage ripple effects – start of main segment
• [02:58] Crypto flash crash and ETF prospects
• [05:52] Shutdown impact on flights and government services
• [07:31] China’s slowing economic growth and key policy summit
• [08:47] Gucci beauty business sale to L’Oreal

Closing Note

This briefing paints a picture of a globally interdependent digital economy—one where unseen outages devastate daily routines, financial markets swing wildly with new products and ongoing uncertainty, and government dysfunction ripples into commerce and civic life. China’s economic crossroads and major luxury brand deals hint at both opportunity and transition on the world stage.