Morning Brew Daily: CEO Killer Merch Goes Viral & Amazon Sells Cars Now

Release Date: December 11, 2024
Hosts: Neal Freyman & Toby Howell

1. Time's Person of the Year Shortlist Quiz

Neal kicks off the episode with an engaging quiz about Time magazine's shortlist for Person of the Year.

• Neal Freyman (00:51): "I'm going to give you a list of six names. Five are finalists, four times Person of the Year and one is not a finalist. Try to guess which one is the imposter I included on the list."

• Participants:

  • Kate Middleton
  • Mark Zuckerberg
  • Caitlin Clark
  • Joe Rogan
  • Elon Musk
  • Kamala Harris

• Toby Howell (01:22): "Oh my gosh. They all seem... my initial thought was Caitlin Clark because maybe she's just not quite big enough."

• Neal Freyman (01:37): "The correct answer is Caitlin Clark as the imposter. Caitlin Clark did win Time's Athlete of the Year yesterday, so she is going home with some hardware. But she is not up for Person of the Year."

The discussion hints at the potential winner, with Neal suggesting, "Donald Trump. He is by far the odds on favorite to win this thing tomorrow morning" (02:13).

2. Luigi Maggione's Murder and Viral Merchandising

The hosts delve into the controversial case of Luigi Maggione, charged with murdering United Healthcare CEO Brian Thompson, and the subsequent viral merchandising.

• Overview:

  • Merchandise Surge (02:51): "Online stores were flooded with merch that sported his name and likeness alongside phrases like 'In this house, Luigi Mangione is a hero.'"

• Public Reaction:

  • Neal Freyman (03:52): "This reaction... the Internet's intense fascination with this character whose privileged background... hasn't deterred people from stanning him as a folk hero despite him allegedly fatally shooting someone in Manhattan."

• Companies' Responses:

  • Google's Action (05:21): "Google has removed all of them because they don't want reviews pertaining to a particular location from people who have not even been there."
  • Amazon's Strategy (05:21): "Amazon has taken a harder approach and removed more of these listings."
  • GoFundMe's Policy (05:21): "Crowdfunding site GoFundMe took down some campaigns that popped up in support of the suspect because it has a policy against raising money for the legal defense of violent crime."

• Community Behavior:

  • Toby Howell (06:16): "Most of these sellers... catching on to any Internet trend quickly. This is a capital V, capital O, very online story."

• Expert Insights:

  • Network Contagion Research Institute (06:56): "This phenomenon... we are now witnessing similar dynamics emerging on mainstream platforms, amplifying the risk of further escalation."

3. One Year of Javier Milei's Presidency in Argentina

Celebrating the first anniversary of Javier Milei's presidency, the hosts analyze his economic reforms and their impacts.

• Economic Achievements:

  • Inflation Reduction: "Inflation has plunged from a monthly rate of 26% last December to 2.7% in October."
  • Peso Strengthening: "The rapidly depreciating peso has strengthened considerably against the black market dollar."
  • Sovereign Bonds: "Argentina's sovereign bond prices have almost tripled since his election."

• Austerity Measures:

  • Spending Cuts: "Implementing hardcore austerity measures, including laying off tens of thousands of government workers, freezing infrastructure projects and imposing wage and pension freezes."

• Social Impact:

  • Rising Unemployment & Poverty: "Unemployment and poverty have climbed."
  • Approval Ratings: "Milei's approval rating stands at about 50%."

• Toby Howell (09:00): "People were spending their pesos as soon as they got them because they'd be worth less in a week, in a month. So incomes Milei the Nacro capitalist... he vows to bring a chainsaw to government spending."

• Global Influence:

  • Alignment with Trump and Musk: "He's buddy buddy with Trump and Elon Musk."

• Future Challenges:

  • Economic Revival: "The bigger challenge of getting the economy back going again and really opening up Argentina."

4. Amazon Ventures into Car Sales with Hyundai Partnership

Amazon expands its "everything store" model by partnering with Hyundai to sell cars directly through its platform.

• Amazon Auto Launch (12:01):

  • Features: "Browse, work on financing, and arrange delivery for your very own Hyundai without ever leaving Amazon.com."
  • User Experience: "Search for the model you want, customize trim, color, and interior features."

• Hosts' Experience:

  • Neal Freyman (13:01): "We just literally typed in 'car' and it worked. We saw all of Hyundai's new cars in front of us."

• Consumer Behavior:

  • Avoiding Traditional Dealership Hassles: "People are looking for different ways to buy cars online... Tesla revolutionized this because Tesla doesn't have any dealerships and you have to buy a Tesla online."

• Industry Impact:

  • Competitor Reactions: "Autotrader, Carvana, CarMax... investors aren't too worried at the moment."
  • Expansion Plans: "Amazon plans to expand beyond Hyundai and into more cities next year."

• Toby Howell (14:39): "Amazon is the middlemen connecting dealers with customers... People are okay with going to pick up a car and not having it shipped to their doorstep."

5. Decline in Basic Skills Among US Adults

A recent survey reveals that US adults are lagging in essential skills like reading and math compared to other advanced economies.

• Survey Findings (17:40):

  • US Rankings:
    • Literacy: 14th
    • Adaptive Problem Solving: 15th
    • Numeracy: 24th
  • Skill Deficiency: "More than one-third of US test takers didn't demonstrate the skills that would be expected of a primary school student, up from 29% in 2017."

• Factors Contributing to Decline:

  • Increased Migration: "Non-native speakers affecting literacy scores."
  • Aging Populations: "Machine literacy peaks at age 30 and doesn't improve thereafter."
  • Reduced Reading Habits: "Adults are reading less, possibly due to distractions like TikTok and Instagram."

• Real-World Implications:

  • Economic Impact: "People who perform better in these tests see wages that are 75% higher."
  • Social Impact: "Higher scores correlate with better health and happiness."

• Toby Howell (18:55): "Our time is pulled in a lot of different directions. People aren't reading as much as maybe they were a decade, two decades ago."

6. General Motors Abandons Autonomous Robo-Taxi Ambitions

GM pulls back from its ambitious robo-taxi project under the Cruise unit, refocusing on advanced self-driving technology for existing vehicles.

• Project Termination (21:19):

  • Neal Freyman (21:19): "General Motors said it would stop trying to make an autonomous robo taxi through its cruise unit and instead shift its focus to making advanced self-driving technology for its existing fleet of cars."

• Reasons for Abandonment:

  • Safety Incidents: "Safety incident in San Francisco sidelined Cruise's cars."
  • Regulatory Scrutiny: "Potential lies in reports to regulators."
  • Financial Strain: "Cruise laid off 900 people; GM poured $10 billion without viable returns."

• Market Impact:

  • Competitor Advantage: "Waymo and Tesla advancing in the self-driving space."
  • Neal Freyman (22:57): "Waymo is operating in a bunch of cities and they just announced... they're pulling ahead."

7. FTC Blocks Kroger and Albertsons Supermarket Merger

A federal judge halts the proposed $25 billion merger between Kroger and Albertsons, citing antitrust concerns.

• Legal Rulings (23:22):

  • FTC's Position: "The merger would lead to reduced competition, potentially harming consumers through higher prices and fewer choices."
  • Judges' Concerns: "CNS is ill-prepared to take on the stores and will likely end up selling or closing those stores."

• Regulatory Landscape:

  • FTC Chair Lina Khan (23:58): "Perhaps her last decision or her last action against mergers... Incoming commissioner Andrew Ferguson is expected to take a lighter touch."

• Future Prospects:

  • Potential Re-attempts: "These two companies may try again in a few months, but currently, the merger is on ice."

8. Rupert Murdoch Loses Control Over Family Trust

Rupert Murdoch's attempt to restructure his family trust to grant his son Lachlan sole control over the media empire is thwarted by a Nevada commissioner.

• Court Decision (25:25):

  • Outcome: "The commissioner ruled against Murdoch's bid, stating it was a 'carefully crafted charade.'"

• Implications:

  • Share of Control: "Four of his children will have equal say in the future of his media empire, including Fox News and the Wall Street Journal."
  • Family Dynamics: "Lachlan wanted full control to maintain conservative leanings, but his siblings hold differing political views."

• Cultural Reference:

  • Succession Parallel (27:02): "The kids are challenging their father's family trust realignment after watching the HBO show 'Succession.'"

9. Nigel Richards' Controversial Scrabble Victory

Nigel Richards, a professional Scrabble player from New Zealand, wins the Spanish Scrabble World Championship despite not speaking Spanish, sparking controversy.

• Victory Highlights (27:46):

  • Neal Freyman (28:25): "Richards... has been described as the Tiger Woods of Scrabble."
  • Achievements: "Won the French Scrabble World Championships twice without speaking French."

• Community Reaction:

  • Local Outrage: "A local newscaster described it as 'incredible humiliation.'"
  • Peers' Views: "Viewed as a fascinating blend of memorization and strategic gameplay."

• Future Challenges:

  • Upcoming Competitions: "Awaiting Richards' performance in Romanian and Italian Scrabble where dictionaries are even larger."

Conclusion

Neal and Toby wrap up the episode by encouraging listeners to share the podcast, reminiscing about playing Words With Friends during the pandemic, and highlighting the diverse range of topics covered—from viral merchandise related to a high-profile murder to Amazon's foray into the automotive market.

Notable Quote:

• Toby Howell (27:45): "This is inspired by a TV show... they're literally looking at this piece of paper that they can't read."

Final Thoughts: The episode offers a comprehensive look into current events impacting business, economy, and society, delivered with the hosts' signature wit and insight.

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