Morning Brew Daily – Episode Summary
Title: Boeing’s Big Bounce Back & Ozempic Maker Loses its Lead
Host/Authors: Neal Freyman and Toby Howell
Release Date: July 30, 2025
1. Massive Pacific Earthquake and Tsunami Alerts
The episode opens with a significant news update about an 8.8 magnitude earthquake that struck in the Pacific off eastern Russia early in the morning. This quake, one of the largest ever recorded, triggered tsunami waves that reached Hawaii by 7:30 PM local time and the U.S. West Coast by just before 1 AM. Neal Freyman provides a detailed account:
"Tsunamis can travel over 500 miles per hour in deep water, allowing them to cross entire oceans in less than a day." ([00:59])
Despite the initial chaos, Hawaii has been largely spared from major damage, with tsunami warnings downgraded to advisories. Officials across the affected regions, including Japan and the western United States, are urging caution and advising residents to stay out of the water until conditions stabilize.
Toby Howell adds:
"California is still seeing some waves in the three foot range coming in right now, so hope everyone affected stays safe." ([01:43])
2. Boeing’s Impressive Turnaround under New Leadership
Boeing has been making headlines with a strong earnings report, signaling a robust turnaround under its new CEO, Kelly Ortberg. Neal highlights several key achievements:
"Boeing delivered 280 aircraft in the first half of the year, the most since 2018. Its sales of nearly $23 billion was Boeing's biggest quarterly revenue in six years." ([03:00])
Ortberg’s leadership has also significantly reduced cash burn, with the company burning through only $200 million last quarter compared to over $4.3 billion previously. Investors have responded positively, with Boeing shares rising nearly 34% this year after a previous decline.
Toby elaborates on operational improvements:
"They've increased their production of the Boeing 737 Max to 38 planes a month, the maximum allowed, and are pushing the FAA to raise it to 42." ([05:15])
Despite these positive trends, challenges remain, including potential labor strikes and certification delays for new 737 Max variants. Nonetheless, airline CEOs like Michael O’Leary of Ryanair and Bob Jordan of Southwest Airlines are now praising Boeing’s improved performance:
"I continue to believe that Kelly Ortberg and Stephanie Pope... are doing a great job." ([05:00])
3. Novo Nordisk's Struggles in the Weight Loss Drug Market
Contrasting Boeing’s recovery, Novo Nordisk, the Danish pharmaceutical giant, faced a tough day as its shares plummeted by 30% after the company signaled it might lose its lead in the weight loss drug market. Neal draws parallels to tech companies that lost their first-mover advantage:
"Friendster, Yahoo, MySpace... that's exactly what could be happening to Novo Nordisk." ([09:33])
The company's flagship drugs, Ozempic and Wegovy, are under pressure from competitors like Eli Lilly and counterfeit versions available through pharmacies. Additionally, a disappointing trial for a next-generation obesity drug has further dented investor confidence, leading to a 42% drop in stock value this year.
Toby discusses operational missteps:
"They underestimated the demand for Ozempic, leading to FDA-shortlisted Wegovy and a flood of copycats." ([10:47])
In response, Novo Nordisk has appointed a new CEO from within the company, but investors remain skeptical about the potential for innovation and recovery.
4. Rising Electricity Bills Driven by AI Data Centers
A pressing issue highlighted is the increase in U.S. electricity bills, attributed largely to the surge in demand from data centers powering AI technologies. Neal provides concrete figures:
"Across a stretch of the eastern United States, monthly home electric bills have risen this summer... $26 higher in Trenton, $10 in Pittsburgh, and $27 in Columbus." ([11:53])
Toby explains the complexity of market factors but emphasizes the role of tech giants:
"Capacity prices at auctions were up 833% last year and 22% this year, with data centers being the primary culprit." ([13:28])
This surge has sparked tension between utility providers and major tech companies, who are often granted tax breaks and incentives to build data centers, while residential customers bear the brunt of higher energy costs.
Neal adds context about Northern Virginia:
"Virginia is known as Data Center Alley... projected to invest nearly $200 billion each year in grid upgrades." ([14:31])
5. Uggs Expands into the Men's Market
Shifting to the consumer sector, Uggs, under its parent company Deckers, is making significant strides in the men's footwear market. Sales of men's products have nearly doubled, contributing to a 19% overall sales increase. Neal notes:
"Deckers has Uggs, which accounts for 51% of annual sales, and Hoka, contributing 45%, both experiencing rapid growth." ([18:40])
Toby delves into the marketing strategy:
"Targeted collaborations with celebrities like Post Malone and new styles like the Peak Mod—an intentionally 'ugly' clog—are resonating with male consumers." ([19:17])
Despite Deckers facing a 40% stock decline earlier in the year due to tentative sales forecasts and tariffs, the innovative push into the men's market offers a glimmer of hope.
6. Union Pacific's Historic Railroad Merger
A major development in the transportation sector is Union Pacific’s announcement to acquire Norfolk Southern in an $85 billion deal, aiming to create the first transcontinental rail system in the U.S. Neal quotes Union Pacific CEO Jim Vanna:
"It builds upon President Abraham Lincoln's vision of a transcontinental railroad... ushering in a new era of American innovation." ([21:47])
However, the merger faces opposition from major rail unions and concerns over potential monopolistic practices, with fears of price hikes for consumers due to reduced competition.
7. Starbucks’ Ongoing Turnaround Efforts
Starbucks continues its efforts to reverse a six-quarter streak of declining sales. Despite missing sales and profit expectations, CEO Brian Niccol remains optimistic:
"Turnaround efforts at Starbucks are ahead of schedule with plans to unleash a wave of innovation coming in 2026." ([22:30])
Neal points out that while sales dropped by 2% in the latest quarter, initiatives such as reducing store construction costs by 30%, enhancing existing store experiences, and increasing staff aim to improve customer service and operational efficiency. Additionally, Starbucks saw its first sales gain in China since late 2023, providing a positive sign amidst ongoing challenges.
8. OpenAI’s ChatGPT Introduces Study Mode
In the realm of technology and education, OpenAI has launched ChatGPT Study Mode, designed to assist students by fostering active learning rather than simply providing answers. Neal describes the feature:
"Study Mode asks you questions, nudges you with hints, and prompts self-reflection so that the material actually sticks." ([24:29])
Toby shares observations from a demo, noting how the AI encourages users to engage deeply with the material:
"The bot responded with, 'What's your overall familiarity with the subject?' and guided the user through concepts instead of giving direct answers." ([24:29])
This development has sparked discussions about the future of tutoring and education, with Neal contemplating the potential impact on human tutors and the broader educational landscape.
9. Remembering Joan Anderson, the Hula Hoop Pioneer
The episode also pays tribute to Joan Anderson, the creative mind who named the iconic Hula Hoop. At 101 years old, Anderson’s contributions came to light through a 2018 documentary, Hula Girl, which highlighted her role in popularizing the toy.
Neal recounts her story:
"She came across kids spinning circular wooden hoops around their waist and loved it so much she dubbed them the Hula Hoop, inspired by the Hawaiian dance." ([25:51])
Despite her pivotal role, Anderson never received formal recognition or financial rewards from Wham-O, the company that commoditized the Hula Hoop. Her legacy, however, has been preserved through documentary storytelling, shedding light on the unsung contributions of everyday innovators.
Conclusion
In this episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell navigate a diverse array of topics, from significant global events and corporate turnarounds to technological advancements and nostalgic tributes. The discussion provides listeners with insightful analyses and noteworthy quotes, encapsulating the dynamic landscape of business, technology, and culture.