Morning Brew Daily – Episode Summary

Date: December 15, 2025
Hosts: Neal Freyman and Toby Howell

Overview

In this episode, Neal and Toby cover a big morning news roundup before diving into two top business headlines: the dramatic rise in cannabis stocks following federal reform signals, and President Trump’s move to block state-level AI regulations. The show also spotlights the surprise success of a family-friendly gaming console, changing trends in restaurant dining, key events in the business and entertainment week ahead, and wraps with a fun listener game.

Major News Roundup

[00:52–03:31]
Neal and Toby acknowledge a series of tragic events from the weekend:

• Anti-Semitic attack in Australia: Fifteen killed at a Hanukkah celebration; a bystander’s heroic intervention prevented more casualties.
• Brown University shooting: Two students killed, nine injured; investigation ongoing, low video surveillance hindered progress.
• Rob Reiner’s death: Celebrated actor/director found dead with his wife, suspected homicide; tributes highlight his role as a film and TV icon.

Neal: “We’re thinking of everyone involved in these tragedies and hope this week brings quiet and peace.” [01:54]

Cannabis Reform: Stocks Soar on Reclassification Hopes

[03:31–09:00]

Key Points

• Trump Expected to Reclassify Marijuana:

  • Move from Schedule I (heroin, LSD) to Schedule III (Tylenol with codeine, steroids); would not legalize or decriminalize cannabis, but opens doors to industry.
  • “This does not mean marijuana would be legalized…but reclassification could be a game changer for the $32 billion cannabis industry.” – Neal [03:37]
  • Triggered a “haze of smoke” on Wall Street as stocks soared: Tilray & Canopy Growth up ~50%, cannabis ETF up 54% (best day on record).

• Tax Implications:

  • Current federal code 280E severely limits expense deductions, leading to effective tax rates up to 70–80%.
  • Toby: “People who are high are also very excited about taxes right now because of this potential reclassify.” [05:08]

• Medical & Regulatory Impact:

  • Schedule III would recognize medical utility, lower abuse potential; opens more avenues for research.
  • Potential unintended consequences: stricter federal enforcement, possible inroads for Big Pharma, new labeling/manufacturing standards.

• Scientific Evidence Still Debated:

  • JAMA review found “evidence of medical cannabis benefits is often weak or inconclusive” and ~30% of medical users may be classified as having cannabis use disorder.
  • “Not enough evidence one way or the other whether medical cannabis actually does anything.” – Neal [07:52]

• Process and Timeline:

  • Trump cannot unilaterally reclassify—a process through federal agencies could extend to next summer.

Trump’s Executive Order: States vs. Federal AI Regulation

[09:00–12:15]

Key Points

• One National AI Framework:

  • Trump order blocks states from enforcing own AI rules, aiming to avoid regulatory patchwork and keep U.S. competitive with China.
  • “The order blocks US States from enforcing their own AI regulations with a goal of creating a single national framework for AI.” – Toby [09:01]
  • In reality, federal AI regulations do not yet exist—order mainly halts state initiatives.

• Industry Cheer:

  • Major tech and VCs have lobbied for unified national rules.
  • Architect: David Sacks (PayPal Mafia), now White House appointee, driving centralization push.
  • “We’re still having the same arguments as we were when the country was founded.” – Neal [10:10]

• Political & Legal Pushback:

  • Both parties show fractures—Ron DeSantis calls it “a subsidy to big tech”; Steve Bannon warns AI is “most dangerous technology in history.”
  • “Within the Republican Party, there are these very prominent voices that are saying…we do need to start regulating this thing.” – Toby [11:18]
  • Many legal experts doubt the order will withstand court challenges; states likely to continue with own laws.

Winners of the Weekend

[12:15–17:20]

1. Neal’s Winner: Next Playground (Gaming Console)

• [13:13–16:00]
  • Family-friendly console outsold Xbox during Black Friday–Cyber Monday; sold out at major retailers.
  • Origin: From an AI-powered basketball tracking app (“Home Court”) to gamified AR workouts to hardware pivot.
  • Target market: Families with small kids—affordable ($199–$249), licenses kid brands (Bluey, Sesame Street).
  • “Just by focusing on this one particular market... all their competitors have literally abandoned all of these families with small kids, and then they are absolutely taking it to the bank.” – Neal [15:48]

2. Toby’s Winner: Mozzarella Sticks & Financial Anxiety

• [17:46–20:57]
  • Appetizer sales up 20% YoY as diners economize—apps often serve as meals, boosted by deals (e.g., Applebee’s $15 Ultimate Trio).
  • Top growth: Mozzarella sticks (+36%), pickle chips, cheese curds, jalapeño poppers, cheese bites.
  • “You can absolutely order an appetizer and get away with it as an entrée. This is the best move when you’re going out to eat.” – Toby [20:24]
  • Pizza trends: Customers shift to medium pies and fewer toppings as pizza prices rise and sales stay flat.

Week Ahead: Economic Data, Avatar, and Sports

[20:57–23:39]

Business & Data

• Jobs Report (Tuesday) and Monthly Inflation Report (Thursday) will provide clarity after reporting delays.

• Retail Sales Data to reveal holiday shopping patterns.

  Neal: “These reports will be like putting on goggles when you’ve been swimming in murky water.” [21:54]

Entertainment

• Avatar: Fire and Ash opens Friday—Cameron’s movies dominate box office history.
  • “Give me blue alien people, give me all the special effects and give me side characters… I still couldn’t tell you the name of any of them.” – Toby [22:43]

Sports

• College Football Playoff begins Thursday (Oklahoma vs Alabama).

• NBA Cup Final: Spurs vs Knicks on Tuesday.

• NFL Week 16: High stakes for teams and fantasy playoffs.

  Toby: “I really need a big game for Devon H and tonight to make it three for three… I’m fully locked in on fantasy.” [23:39]

Notable Moments & Quotes

• On Federal Cannabis Reform:
  “This push for reclassification comes at a time when there’s growing questions about whether medical cannabis actually does anything.” – Neal [07:32]

• On AI Regulation:
  “It’s funny, this country is almost 250 years old. And we’re still having the same arguments as we were when the country was founded.” – Neal [10:10]

• On Appetizer Trends:
  “Appetizer sales are up 20% year over year...because they feel like full meals sometimes with much less sticker shock for cash-strapped consumers.” – Toby [17:47]

Audience Game: “The Latter”

[24:20–25:42]

• Listeners guess what metric ranks Mario, Garfield, SpongeBob, Hulk, and Cookie Monster.

• Submit via show notes or Instagram for swag; Toby jokes about trying to spoil the answer.

  Toby: “I really pray for people’s brains, you know, listening to this early in the morning and you just get Mario, Garfield, SpongeBob, the Hulk, and Cookie Monster just rumbling around in your head.” [25:28]

Key Takeaways

• Cannabis industry could receive a historic tax break and new legitimacy if federal reclassification proceeds, though questions persist over medical value and new risks may arise.
• Trump’s executive order on AI regulation ignites a classic states’ rights vs. federal powers debate, with uncertain practical impact as legal experts doubt enforceability.
• Follow consumer data, not ego: Next Playground’s pivot from app to best-selling console exemplifies smart business adaptation.
• Restaurant and takeout chains are responding to frugal consumers, with appetizers and smaller pizzas booming as Americans look for greater value.

This episode combines sharp business analysis with playful banter, making dense policy shifts relatable and engaging for listeners starting their week.