23andMe Files for Bankruptcy & Sesame Street’s Rocky Finances

Summary

Morning Brew Daily - Episode Summary: "23andMe Files for Bankruptcy & Sesame Street’s Rocky Finances"
Release Date: March 25, 2025
Hosts: Neal Freyman and Toby Howell

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Introduction

In this episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into a variety of pressing topics ranging from corporate bankruptcies to unusual smuggling trends, and the financial struggles of beloved institutions. The discussion is punctuated with insightful commentary, notable quotes, and timely analysis.

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1. 23andMe Files for Bankruptcy: The Fate of Our DNA Data

The episode kicks off with the shocking news of 23andMe filing for bankruptcy. Neal explores the implications of this development, particularly concerning the 15 million DNA samples the company holds.

Key Points:

• Bankruptcy Announcement: 23andMe, once a Silicon Valley titan in at-home DNA testing, has seen its valuation plunge from $6 billion in 2021 to near nothing.
• CEO Resignation: Anne Wojcicki, CEO of 23andMe, steps down, taking responsibility for the company's collapse but expressing a desire to buy it out of bankruptcy.
• Data Concerns: A central question arises about the future of the vast genetic data collected. With bankruptcy, there's a risk that this "genetic gold mine" could be sold to the highest bidder, raising significant privacy concerns.

Notable Quote:

Neal Freyman [03:14]: "23andMe couldn't walk the double helix tightrope any longer. The long struggling DNA testing company filed for bankruptcy late Sunday night..."

Toby adds context by explaining potential outcomes for the genetic data and the challenges in protecting sensitive personal information during such transitions.

Future Outlook: Though there is a glimmer of hope with 23andMe's involvement in pharmaceutical drug development, the uncertainty looms large over the company's ability to recover and protect user data.

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2. Eggflation 2024: Smuggling Eggs Amid Bird Flu Epidemic

Transitioning from genetics to agriculture, the hosts discuss the bizarre rise in egg smuggling across the U.S.-Mexico border.

Key Points:

• Bird Flu Impact: A bird flu epidemic has disrupted the egg supply chain, causing prices to soar in the United States.
• Increased Smuggling Attempts: U.S. Customs and Border Protection reported over 3,254 egg-related interceptions in just the first two months of the year—a 116% increase from the previous year.
• Consumer Behavior: Individuals are resorting to smuggling eggs from Mexico, where a dozen eggs cost only $2, compared to $5.90 in the U.S.

Notable Quote:

Neal Freyman [08:58]: "U.S. customs and Border Protection intercepted egg products on 3,200 occasions this January and February... a dozen eggs cost American consumers $5.90 in February, double what it was in 2024."

Toby elaborates on the regulatory environment and the efforts to source eggs from countries like Turkey and South Korea to alleviate the crisis.

Market Dynamics: While wholesale egg prices have halved recently, the surge in demand around Easter is expected to drive consumer prices up again, complicating the situation further.

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3. Sesame Street’s Financial Struggles: A Beloved Institution in Jeopardy

The discussion shifts to the financial woes facing Sesame Workshop, the nonprofit behind Sesame Street.

Key Points:

• Lost Revenue Streams: The termination of a lucrative distribution contract with HBO, worth up to $35 million annually, severely impacts finances.
• Funding Cuts: Recent cuts to USAID reduce grant funding, compounding financial difficulties.
• Competitive Landscape: Increasing competition from newer children's shows like CoCo Melon and Bluey diminishes Sesame Street's market share.

Notable Quote:

Neal Freyman [10:32]: "Sesame street, even just a few years ago, was doing just fine. As recently as 2022, Sesame Workshop generated $271 million in revenue more than $20 million in profit."

Strategic Adjustments: To remain relevant, Sesame Street is:

• Altering Show Format: Introducing shorter, more dynamic segments with increased comedic elements.
• Seeking New Partnerships: Actively searching for new distribution deals to replace the lost HBO contract.

Toby notes the challenges of maintaining educational value while adapting to the fast-paced demands of modern children's entertainment.

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4. Viral Marketing and Brand Impact: The Saratoga Spring Water Phenomenon

Hosts examine how a viral video propelled Saratoga Spring Water into the spotlight, highlighting the power of social media in brand visibility.

Key Points:

• Viral Video: Ashton Hall’s 3:52 AM routine involving Saratoga Spring Water went viral across platforms like TikTok and X, amassing hundreds of millions of views.
• Market Reaction: Primo Brands, parent company of Saratoga Water, saw a premarket stock surge of 16%, although it later stabilized.
• Brand Strategy: While some believe Saratoga could capitalize further, others appreciate the brand’s cautious approach in maintaining its luxury image.

Notable Quote:

Toby Howell [16:32]: "This video got so big, it literally moved the market. Saratoga Water's parent company, Primo Brands, saw its stock rise by as much as 16% in premarket trading yesterday."

Corporate Response: Saratoga Spring Water’s measured response included subtle acknowledgments on social media, balancing brand integrity with the unexpected spotlight.

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5. Final Headlines: Security Breaches, Tariffs, and Urban Planning

The hosts round off the episode with a series of rapid-fire headlines covering national security, trade policies, airline pricing strategies, and urban development.

a. Trump Administration's Group Chat Leak

A significant security breach occurred when Atlantic's editor-in-chief, Jeffrey Goldberg, was mistakenly added to a confidential Signal group chat discussing military plans for Yemen.

Notable Quote:

Neal Freyman [21:36]: "An inadvertent number belonging to a journalist ending up in a highly confidential group chat is quite the security breach."

The incident has sparked bipartisan criticism and demands for thorough investigations into the mishandling of sensitive communications.

b. Tariff Fluctuations and Trade Policies

President Trump’s administration faces uncertainty with planned tariffs on U.S. imports from countries purchasing oil and gas from Venezuela. Initial announcements suggest a 25% tariff aimed at China and India, but later signals indicate potential reversals.

Notable Quote:

Toby Howell [23:00]: "We're seeing it happen in Venezuela and we're seeing it happen on a micro, on a macro scale as well."

The volatility around the tariffs creates market instability, with stocks reacting to the unpredictability of policy implementations.

c. United Airlines Raises Lounge Prices Amid High Demand

United Airlines has revamped its lounge membership program, introducing higher prices to manage increased demand and reduce overcrowding.

Notable Quote:

Neal Freyman [24:49]: "Easiest way to rectify that if you're United, make it more expensive and allow fewer guests."

The new tiered membership aims to enhance exclusivity while capitalizing on the booming ancillary revenue streams.

d. Paris’ Bold Urban Planning Moves

Paris voters approved a non-binding measure to block 500 streets to vehicle traffic, replacing asphalt with greenery. This initiative aims to reduce pollution, encourage walking and biking, and improve urban resilience.

Notable Quote:

Toby Howell [26:20]: "Replacing cars in parking spots with greenery... can help reduce pollution, can help encourage walking and biking..."

Despite strong support in approval rates, low voter turnout indicates mixed reception among the populace, with debates ongoing about the initiative’s practicality and impact.

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Conclusion

Neal Freyman and Toby Howell successfully navigated a spectrum of topics, providing listeners with thorough analyses and engaging discussions. From the uncertain future of 23andMe and the quirky rise of egg smuggling to the financial challenges facing Sesame Street and the viral success of Saratoga Spring Water, the episode offered a comprehensive overview of current events affecting business, economy, and society at large.

Notable Closing Quote:

Toby Howell [28:00]: "Great show today, Neil. Let's run it back tomorrow."

Listeners are left with a blend of insightful commentary and anticipation for future episodes.

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Credits:
Executive Producer: Emily Milian
Producer: Raymond Lu
Associate Producers: Olivia Graham, Olivia Lake
Technical Director: Uchenawa Ogu
Audio, Hair, and Makeup: Scoops Dardus
Chief Content Officer: Devin Emery
Production: Morning Brew

For questions or feedback, listeners are encouraged to contact Morning Brew Daily at [e-mail].

Transcript

[Toby Howell]

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[Neal Freyman]

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[Toby Howell]

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[Neal Freyman]

Good morning, Brew Daily Show. I'm Neal Freyman.

[Toby Howell]

And I'm Toby Howell.

[Neal Freyman]

Today, 23andMe went bankrupt. So what happens to all of our DNA then?

[Toby Howell]

U.S. mexico border agents are seizing a lot of contraband these days. But I'm not talking about drugs. I'm talking about eggs. It's Tuesday, March 25th. Let's ride.

[Neal Freyman]

March Madness hasn't even gotten to its second weekend yet, and a bracket savant is already walking away with a $1 million prize courtesy of Warren Buffett. An anonymous employee of Flight Safety International, a subsidiary of Buffett's Berkshire Hathaway, won the $1 million after correctly picking 31 of the 32 games in the first round of the men's college basketball tournament. Buffett has been running this bracket contest for years, but relaxed the rules this March because he desperately wanted someone to win while he was still up and atom. It worked. And interestingly, this employee was one of 12 Berkshire employees in total to pick 31 of the 32 games. But he took home the top prize because he correctly chose 29 games consecutively before a loss. Toby, I've never seen someone so happy to give away a million.

[Toby Howell]

I mean, this was the year to do it. This is the first tournament since 2007 that no team seeded 12 or lower made it to the Sweet 16. It's also the first time in history that the Sweet 16 is made up of only power conference teams. So you're only seeing teams from the SEC, Big Ten, Big 12, and ACC. That is it. So the no Cinderella story this year. So it was the perfect storm of, you know, Buffett getting more lenient in his older age. Plus this being a historical outlier in terms of chalkiness of the overall tournament. Regardless, pretty sweet bonus to take home. And glad Warren finally found the sweet spot for his prize. Now, a word from our sponsor, Sophos. Neal, quick. Your apartment catches on fire. What's your first move?

[Neal Freyman]

Call the fire department.

[Toby Howell]

Good answer, but incorrect. The correct answer is to go back in time to stop the fire from ever starting.

[Neal Freyman]

Okay, Dr. Strange, let me just up the old time stone.

[Toby Howell]

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[Neal Freyman]

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[Toby Howell]

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[Neal Freyman]

Head to sophos.com today and make your cybersecurity proactive, not reactive. That's SOP hos.com 23 and me couldn't walk the double helix tightrope any longer. The long struggling DNA testing company filed for bankruptcy late Sunday night and announced that its CEO Anne Wojcicki would be stepping down from her role. In a statement, Wojcicki took responsibility for the collapse of the once high flying startup, but said she still believed in its long term vision and would be making a bid to buy it out of bankruptcy. 23 and me had been a cast member of the Walking Dead for a few years now. Founded in 2006, it was all the rage in Silicon Valley for selling popular at home DNA testing kits that help people learn about their family histories and genetic profiles. The problem is, once you know that, you don't really need to buy anything more from the company. And after failing to create another product that caught on with consumers, 23 and means $6 billion valuation in 2021 plunged to essentially nothing today. While the bankruptcy process gets going, one question is sure to dominate the conversation. What will happen to the 15 million DNA samples that 23andMe is sitting on? It collected a nearly unprecedented treasure trove of human genetic information through its spit tests. Is that now going to be up for sale to the highest bidder? Looks like chapter 11 is just the first of many chapters in this unfolding saga, right?

[Toby Howell]

If you went to pretty much any major news site Yesterday and just googled23andme, you saw an explainer of how to delete your data from their database. Because a lot of people are having those same questions of okay, I gave you my data, now you're going out of business. What actually happens to that genetic gold mine essentially? And it can be sold to the highest bidder because technically one of the big assets that 23andMe has is this big trove of your genetic data. So when what happens in bankruptcy auctions, assets go up for sale and the company had already been using and mining that data to try to create these pharmaceutical drugs. They've been working with the pharmaceutical company gsk so a new buyer could look at and say, hey, we want to do the same thing here. So it is a real concern. There are privacy policies that go towards protecting that, but if a new person and a new buyer came in, they could change those right away. So it is one of those things that Google 23 and me, you saw a lot of people asking the same questions that you probably are having.

[Neal Freyman]

Well, I'll save you a Google. Here's how you delete your 23 and me data. It's pretty easy. You just log on to your account, go to settings, account information and then you should see something called delete your account 23andMe is going to prompt you to confirm your decision that it's permanent in the irreversible. Irreversible. Well maybe its bankruptcy is permanent and irreversible. So you can go ahead and delete your information that way. But also this is not the first time that a company with biogenetic information, very sensitive personal information on humans has gone bankrupt. We've had a lot of those. Biome was one you Biome was one example a few years ago. What happened during that bankruptcy proceeding is that the judge appointed in a Budsman, who's this third party observer to make sure that nothing super sketchy was going on with the sale of, of this, this bio. Biologic information. And he said the, the Budsman, weird word, said that, said that the sale could go through with certain restrictions. So we'll see what happens with 23andMe. But their privacy policy does state that in the event of a sale, bankruptcy, merger, acquisition, reorganization, that customer's personal information may be accessed, sold or transferred.

[Toby Howell]

And is this company just going to go away after bankruptcy, which is trying to buy it and take it private herself? But also 23andMe has 50 drug candidates currently in the pipeline. Two so far have made it to human stage trials. So some data could be released later this year to see if any of those drugs work. So potentially there's a glimmer of hope for this company and it might just not drift away. But it is a glimmer at best because these human trials have a lot of risks and a lot of different variables associated with them. So that is potentially the future path forward for this company, but it is a little bit of a rocky one. Moving on, Imagine Scarface, but instead of Tony Montana slinging cocaine, it's your neighbor Janet smuggling a dozen grade eggs across the Mexican border. Welcome to Eggflation 2024, where cheap eggs and potential fines await thanks to a bird flu epidemic that's scrambled the egg supply chain and pushed up prices. Some shoppers have resulted to becoming egg traffickers, bringing in eggs from Mexico to the US where a dozen can cost just $2. US Customs and Border Protection have reported 3,254 egg related interceptions in the first two months of the year, up 116% from the same time last year with San Diego alone seeing egg bus spike 158%. Egg mules, which are oftentimes just normal people who like cheap eggs, are getting creative slipping cartons into grocery bags alongside tortilla chips or hiding them under blankets when questioned by border officials. A lot of them, though, like your neighbor Janet, are probably unaware that smuggling fresh items like eggs is actually illegal due to concerns about bird flu and other diseases entering the United States. So you're hankering for huevos rancheros could end up earning a $300 fine with repeat offenders shelling out up to $10,000. Neal Egg Trafficking sounds a little ridiculous, but considering the massive price gap between Mexican eggs and American eggs, it makes sense that people are trying to sneak a few back over the border.

[Neal Freyman]

Totally makes sense. U.S. customs and Border Protection intercepted egg products on 3,200 occasions this January and February. That is compared to 130 incidents of them seizing fentanyl. There's a lot more egg smuggling going on than drug smuggling, but that is very understandable because a dozen eggs cost American consumers $5.90 in February, double what it was in 2024. You're seeing a little arbitrage play happen. Unfortunately, there are border protections because the United States does not import a lot of eggs due to concerns of even more disease spreading from other from eggs from other countries. But you're seeing those restrictions loosened as the Trump administration goes full pedal to the metal to try to alleviate this crisis.

[Toby Howell]

Right. And we are turning to other countries to try to source eggs from places like Turkey, South Korea. Turkey has actually agreed to send 15,000 tons of eggs to the US through the summer. South Korea has also signed on to sell eggs to the US but you're right, there are a lot of these regulations and laws preventing each country from to from importing eggs into the US Mainly around these diseases that the US Is currently struggling with. So yes, a lot of people who are going to Mexico, I mean, I'm talking about your neighbor Janet, because they mostly are just normal people who said, oh, $2 for a dozen eggs, like, let me just bring some back. When they are actually pressed by a border official, they give up that, yes, we have eggs with us and they didn't know it was illegal. But it is fascinating to see just how many more seizures of eggs there are than, yeah, you know, something like fentanyl that have dominated headlines.

[Neal Freyman]

And I have some good news and some bad news on the egg price front. The good news is that wholesale egg prices have fallen by half in the past few months. So you might see some relief there. The bad news is that that may not translate to your grocery store. Shel. Same time that wholesale prices are increasing, there's going to be a surge in demand right now around Easter time for eggs. So Brooke Rollins, who's the USDA secretary, said it's good that we're seeing wholesale prices come down, but the demand side of the equation is likely to put push prices up even further as we head into the Easter season. Now would not be a good time to ask Mr. Snuffleup, I guess. Why the long face? Sesame street is in a painful spot financially. According to the New York Times, the nonprofit behind the beloved kids show Sesame Worksh is facing a perfect storm of financial problems that may require significant changes and time to recover from. The storm has three fronts. For one, the organization recently lost its distribution contract with hbo, which ended a decade long deal that paid it up to $35 million each year for the rights to the show. Second, the Trump administration's cuts to USAID means fewer grants for the nonprofit, a financial hit it had not seen coming or prepared for. And third is the changing wins in children's TV programing. The battle for kids ATT is getting a lot more competitive and Sesame street is losing out to upstarts like Coco Melon and Bluey. So as the show kicks off production for its 56 season next month, things are looking bleaker than they have been in years. Is Cookie Monster going to start driving for Uber?

[Toby Howell]

I tell you what, if he is, I'm going to give him a good tip. But you're right. I mean, there's Main street, there's Wall street, but I'm most concerned on what's going down on Sesame Street. Sesame street, even just a few years ago, was doing just fine. As recently as 2022, Sesame Workshop generated $271 million in revenue more than $20 million in profit. But they use the word perfect storm because so many factors kind of came together to really put it in a tough spot. Another issue is just on the streaming front. During the time where, you know, HBO originally signed the deal to air Sesame street episodes, there was this big chase for subscribers. Instead of profits, let's just try to gain market share here. So these companies were shelling out these big deals left and right Now Wall street has soured on this approach and they want to see some profitability. So HBO is saying like, we can definitely shift our strategy, move away from kids programming, try to turn more towards profitability. So that was another issue that it just kind of conceded with this huge downturn in, in streamers, selling out these massive contracts for IP that they don't, they feel like they don't need anymore.

[Neal Freyman]

And HBO told Sesame Workshop that it was just not interested in doing kids program any anymore. They wanted to focus more on family and adults. And so they ended the contract. So now Sesame street is, is now shopping around with other streamers for a distribution deal in a financial windfall that it absolutely needs. They're also making some programmatic changes to the show itself in order to get kids watching again. Because there are so many other shows that are more popular than Sesame street at this point, which is sad but true. Bluey, coco melon, then YouTube. Ms. Rachel is huge over there. So they're changing the show a little bit. They're going to have two 11 minute stories to open and close the shore and have a shorter animated feature in between. They're going to try to add more comedic elements. They want you to laugh. We want kids to laugh like out loud a little bit more. And they're also introducing a signature song for each episode. So they're trying to raise up the, the dopamine levels here with Sesame Street. We know it's very educational, it's very pleasant to watch, but that just doesn't cut it in today's kids entertainment field.

[Toby Howell]

Up next, it is time for Toby's Trends. This message. It's a paid partnership with Apple Card. Did you know you can earn up to 3% daily cash back on every purchase when you have an Apple Card? I said what I said. Up to 3% on every purchase. You can even take that daily cash back and save it automatically when you open a high yield savings account through Apple Card. Whether you're embarking on an overseas trip or just grabbing a bite around the corner, Apple Card is built to be your smart spending sidekick wherever you are. It also helps that there are absolutely zero fees. To get started, head to the Wallet app on your iPhone where you can apply in minutes and start using your Apple Card right away to watch that daily cash roll in. Let's ride. Subject to credit approval, Savings is available to Apple Card owners subject to eligibility. Apple Card and Savings by Goldman Sachs Bank USA, Salt Lake City Branch Variable APRs for Apple Card range from 18.24% to 28.49% based on creditworthiness rates as of January 1, 2025. Member FDIC terms and [e-mail] Thinking about expanding your business?

[Neal Freyman]

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[Toby Howell]

Head to marketplace.walmart.com/mbd to get started. That's marketplace.walmart.com/MBD if you've ever wanted to feel poor, lazy and dehydrated all at the same time, then boy do I have the story for you. Meet Ashton Hall, a Fitness influencer whose 3:52am Wake up call Ice Water Face dunks and possibly the most hydrated workout in human history just powered an unlikely brand to the forefront of the Internet's collective consciousness. And it's that brand, Saratoga Spring Water that I want to talk about on today's edition of Toby's Trends. There is this video that first went viral on Instagram and Tik Tok before spreading to X, showing Hall's absurd morning routine at 3:52am he wakes up at 3:54am he pours out a cup of Saratoga water from its striking blue bottle. At 404 he works out next to a bottle of Saratoga water. Then at 5:49am he dunks his face in an ice cold bowl of, you guessed it, Saratoga water. The routine continues until mid morning where a banana peel gets involved and more bowls of ice cold water emerge. The whole thing has a more product placement than a Michael Bay movie. The video has gathered 100 million views on TikTok, 675 million views on X, and garnered tweets from Mr. Beast to Sweetgreen, Google Trends data shows that searches for Saratoga water spiked 1,000% to an all time high since Sunday. This video got so big, it literally moved the market. Saratoga Water's parent company, Primo Brands, saw its stock rise by as much as 16% in premarket trading yesterday. Though it gave back most of those gains by the end of the day. Neil this was one of those rare monoculture me moments that dominated timelines over the weekend. And I am very curious to see how Saratoga plays its cards going forward to capitalize on it or ignore it.

[Neal Freyman]

Yeah, it's pretty interesting to see what they're going to do. This is lightning in a bottle, where literally everybody on the Internet is talking about this one particular video in which your product is a star. And Saratoga's star has been rising for a couple years now since it was bought by Primo brands in 2021. It went from $13 million in sales to 71 million in sales in 2024. 76% compound annual growth over that time span. So this mineral fancy water has been enjoying an upsurge over the past few years. And now, you know, maybe this rocket ship could take off, but we'll see whether it translate to sales. At the very least, it translated to a lot of brand awareness.

[Toby Howell]

A lot of these social media pros on, you know, social media that I follow immediately went to Saratoga Waters Instagram to see how they were capitalizing on the moment. And for a lot of time it was radio silence on that front. They finally have made multiple posts referencing it. They have one saying, plunge if you must, and they credit hall for his video. They also posted this stylistic artistic rendering of an ice bowl next to a banana, showing that they're in on their dog joke. But they're still kind of doing it within their branding guidelines. And I've seen multiple takes. Some people are like, fire your social media manager. They haven't capitalized enough. Other people are like, no, this is a luxury brand. It's been around since 1872. You do not need to rearrange everything about your brand to capitalize on something that's been cooking for two days now. They did eventually hit it in their own way, which I think is smart. So just fascinating to see how. What would you do if you became just the Internet main character for a few days? Would you just play it cool or would you kind of wink, wink, nudge, nudge, make note of it? And it looks like they took the.

[Neal Freyman]

Second sign a few nil deals.

[Toby Howell]

That's potentially true. A lot of people are like, yeah, get some basketball players dunking their face in the water. That seems like a good brand activation. So I do think that overall though, this is a relatively small portion of Primo Brands portfolio, which is why we saw the stock do this huge run up and then everyone was like, wait a second, this brand does $71 million in net sales. This is a multibillion dollar company that.

[Neal Freyman]

Owns like Poland Spring, right?

[Toby Howell]

That brings in more than $1 billion a year. So that I think we saw the big run up. Then everyone's like, yeah, it's not that big a part of the, of the pie, but when you go to a.

[Neal Freyman]

Fancy restaurant, you're probably going to see Saratoga water there and you might be a little bit more interested in what it's all about. Now they had this really buzzy partnership with Bravo's Top Chef and they're trying to get more into those high end restaurants and bars and work with mixologists and sommeliers and things like that. So the high end mineral water industry is kind of booming right now. But just when a server comes over, I'm just going tap straight up.

[Toby Howell]

Now let's sprint to the finish with some final headlines. Up first, it seems like the Trump administration's national security team needs to brush up on their group chat etiquette after they accidentally added the Atlantic editor in Chief Jeffrey Goldberg to a chat discussing war plans for Yemen on the messaging app Signal. The leak involved high ranking officials, including Defense Secretary Pete Hegseth, who shared detailed operational plans for strikes in Yemen, as well as Vice President J.D. vance. President Trump claimed he was unaware of the incident, which has sparked bipartisan criticism and calls for an investigation. The National Security Council has confirmed the authenticity of the Signal messages and is investigating how Goldberg was mistakenly added to the group chat in the first place. Representative Don Bacon of Nebraska, who is a former Air Force brigadier general, summed it up well for Axios, saying I've accidentally sent the wrong person a text. We all have. But he added, the unconscionable action was sending this info over non secure networks. Neal an inadvertent number belonging to a journalist ending up in a highly confidential group chat is quite the security breach.

[Neal Freyman]

It's hard to believe and Signal is a consumer app that is used by journalists and Washington officials because it's end to end. Encrypted. You can send disappearing messages, you can create aliases. It's a pretty secretive social app. But when you are planning something like an airstrike, it is custom and for US Officials to go into the situation room which is known as a sensitive compartmented information facility. And even when you're texting or communicating via mobile device, you basically do a mobile cif, do a mobile version of that. So truly a stunning thing to include not just a random person, but the editor of an influential magazine in your group chat. And this is sure to dominate conversation in Washington in the week to come. On the terror front, it was another day of more head fakes than a Peyton Manning snap count. In the morning, President Trump vowed to slap a 25% tariff on all US imports from countries that buy oil and gas from Venezuela, which would target China and India in particular. Then later in the day, Trump signaled that he might dial back planned reciprocal tariffs on April 2, which he's dubbed a liberation day for rebalancing trade deficits. After Trump said he may give a lot of countries breaks, stocks rallied for their second straight day of big gains. Still, no one really knows what tariffs will be announced on April 2nd.

[Toby Howell]

Right. April 2nd is a date to circle. It is a date that Trump has continually referenced. But I think the what happens with Venezuela is a perfect microcosm of kind of the broader tariff plan here. Obviously disrupting global oil trade by, you know, telling certain buyers from Venezuela oil, forcing them to seek alternatives is going to be a disrupting force. And one person who's not happy is Chevron, which is the second largest US Oil company. They have to wind down their production in Venezuela. But as soon as that was kind of ordered, the administration also gave them a break and said you don't actually have to do it by this date, which again, I call it a microcosm because we get dates circled and then it gets the can gets kicked down the road. So we're seeing it happen in Venezuela and we're seeing it happen on a micro, on a macro scale as well. We'll see if Liberation Day is as big a day as Trump has made it sound or if it's going to be another thing where.

[Neal Freyman]

Dial back.

[Toby Howell]

Yeah, they dial it back a little, a little further. For our next headline, United Airlines is raising the price of chilling in its airport lounges before a flight because of insane demand. The price to chill is going up after United decided an overhaul to its lounge membership program was in order, which has seen them reduce amenities and increase the costs when its lounges are more in demand than ever. Enter a new two tier membership system with the basic individual membership costing $750 per year, which will get you access to United club lounges without guest privileges. The more premium all access membership price at 1400 dollars annually includes access for the member and up to two guests as well as entry to other alliance member lounges. Neil Travelers have complained that lounges are becoming overcrowded and no longer feel exclusive. Easiest way to rectify that if you're United, make a more expensive and allow fewer guests.

[Neal Freyman]

And this is basic supply and demand. Demand for these lounges is through the roof. Right now there are long lines just even get into the lounges, which is pretty cringy. So United says and other airlines are saying, okay, well we're seeing a huge demand. Let's just jack up the price, get fewer people in there and we'll make more money. It comes at a time when these co branded credit cards and other sources of revenue are becoming an even bigger part of airlines business. Aside from just, you know, selling airfare, they United brought in $3.5 billion in other revenue last year, which was up 10% from the year before. So this is a huge moneymaker for United. They're seeing the long lines and they're saying, well I think we can raise the prices. Finally, the people of Paris looked at New York's congestion pricing and said that's an urban planning scheme for ants. On Sunday, they voted by a large margin to block 500 streets to vehicle traffic entirely and replace the asphalt with plants and trees. It's a non binding vote, but it sets into motion a process in which the city will study which streets should be decarified. That could last three years. If it happens, it'd be another victory for Mayor Anne Hidalgo, who has spearheaded a number of projects over her tenure that aim to make Paris a city that's more friendly to pedestrians and less welcoming to cars. Already, measures such as slapping a fee on SUVs and eliminating tens of thousands of parking spots have reduced vehicle traffic in Paris by 40% since 2011. Toby, what would Emily think of this?

[Toby Howell]

I mean, Emily in Paris storyline is definitely going to emerge around this. She's definitely going to post on social media about it. That's pretty much the extent of my knowledge of that show. This initiative has been celebrated by Paris City hall because it was approved by 66% of voters, which on the surface sounds like this big blowout vote. But then you look at the fact that only a small subset of residents actually turned out just 4% of eligible voters. So you are seeing some pushback, especially from, you know, car unions saying that hey, this is just unnecessarily punishes car owners, especially people who have no other choice, other than to use the car. It's a very similar dialogue we've seen emerge around congestion pricing in New York City. But the pictures do look lovely. I mean, replacing cars in parking spots with greenery that, you know, can help reduce pollution, can help encourage walking and biking, help improve urban heat because these temperature moderating greeneries come in and, you know, reduce the overall temperature of the city and then also help with flood resilience. So there's a lot of positives and a lot of boxes that this initiative checks, but we'll see if it does continue to gain that widespread support considering the fact that only, you know, 4% of city residents actually weighed in on this initiative.

[Neal Freyman]

Let's wrap it up there. Thanks for starting your morning with us and have a wonderful Tuesday. For any questions, comments or feedback, send an email to Morning brew daily@morning brew.com let's roll the credits. Emily Milian is our executive producer. Raymond Lu is our producer. Olivia Graham and Olivia Lake are our associate producers. Uchenawa Ogu is our technical director. Scoops Dardus is on audio, hair and makeup wants to be included in your group chat. Devin Emery is our chief content officer and our show is a production of Morning.

[Toby Howell]

Great show today, Neil. Let's run it back tomorrow.