Federal Funding Bill's Market Impact & Goodbye to the Penny?

Summary

Morning Brew Daily Podcast Summary
Episode: Federal Funding Bill's Market Impact & Goodbye to the Penny?
Release Date: May 23, 2025
Hosts: Neal Freyman and Toby Howell

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1. Introduction and Announcements

Neal Freyman and Toby Howell kick off the episode by announcing the upcoming Morning Brew Daily's In Real Life trivia night scheduled for June 3rd in New York City. They encourage listeners to participate and compete for prizes, emphasizing the event's focus on entertainment and knowledge of current events.

Example Quote:
Toby Howell [01:00]: "Let's ride."

2. House Passes Sweeping Tax Bill: Implications for the Economy and Personal Finances

The primary focus of the episode is the House of Representatives' passage of a significant tax and spending package dubbed the "One Big Beautiful Bill." The hosts delve deep into the bill's contents, its potential impact on the U.S. economy, and individual taxpayers.

Key Points:

• Extension of 2017 Tax Cuts: The bill prolongs President Trump's 2017 tax cuts across all income groups, which were previously set to expire.
• Additional Tax Relief Measures: These include an increased child tax credit, a higher standard deduction, and the elimination of taxes on tips, overtime pay, and Social Security benefits.
• Spending Adjustments: Increased funding is allocated to border security, national defense, and agricultural support, while budgets for Medicare, food aid, and clean energy tax credits are reduced.
• Fiscal Impact: Independent analysts project a $2.7 trillion increase in budget deficits over a decade, raising concerns among bond markets about the nation's fiscal health.

Example Quotes:
Neal Freyman [02:47]: "The bill is indeed big, containing a smorgasbord of GOP priorities."
Toby Howell [04:33]: "More than eight in 10 households would get a tax cut in 2026 under this bill's current form."

Implications:

• Personal Finances: While the average household could see a tax cut of around $2,900 in 2026, the benefits are skewed, with 60% of the relief favoring the top 20% of earners.
• Geographical Impact: High-income states like New York, New Jersey, and California stand to benefit significantly from the expanded State and Local Tax (SALT) deductions.
• Market Reaction: The bond market has reacted negatively, with long-term bond yields exceeding 5%, signaling increased borrowing costs and investor unease about the growing deficit.

3. End of the Penny: Economic and Cultural Ramifications

Toby Howell introduces the news that the U.S. Treasury will cease minting pennies by early next year, a move primarily driven by cost-saving measures.

Key Points:

• Cost of Production: Pennies cost approximately four times their face value to produce, leading to significant inefficiencies.
• Savings: The U.S. Mint anticipates saving around $56 million annually by discontinuing penny production.
• Impact on Transactions: Businesses will need to round cash prices to the nearest five cents, although digital transactions will retain exact pricing.
• Cultural Significance: Despite its economic redundancy, the penny holds cultural value, evident in sayings and its prevalence in phrases like "penny stocks."

Example Quotes:
Neal Freyman [09:39]: "We're not eliminating the concept of the penny, we're just eliminating the actual coin itself."
Toby Howell [10:40]: "Americans throw away up to $68 million in coins a year."

Additional Considerations:

• Comparison with Canada: Canada eliminated the penny in 2013 without significant disruption, suggesting a smooth transition for the U.S. as well.
• Potential Shift to Nickels: With the penny out of circulation, there's speculation that the nickel might face increased scrutiny due to its own high production costs.

4. Box Office Battle: Mission Impossible vs. Live-Action Lilo and Stitch

Neal and Toby analyze the upcoming weekend's movie releases, forecasting their potential box office performances.

Key Points:

• Mission Impossible: The Final Reckoning: Positioned as the finale of the renowned action franchise, starring Tom Cruise as Ethan Hunt performing daring stunts.
• Live-Action Lilo and Stitch: Disney's adaptation of the beloved 2002 animated film has garnered substantial fan support, outperforming initial expectations with increasing merchandise sales and a growing fan base.

Example Quotes:
Neal Freyman [12:56]: "Listening to this or New York or any other higher tax jurisdiction, because you are going to be able to deduct a lot more of your taxes now under the new cap for the next few years."
Toby Howell [14:12]: "Lilo and Stitch is just this movie that has gained so much groundswell."

Predictions:

• Lilo and Stitch is expected to gross over $165 million domestically, capitalizing on nostalgia and effective marketing.
• Mission Impossible is projected to earn around $80 million, which, while substantial, may not match the buzz surrounding Lilo and Stitch.

5. Stock of the Week & Dog of the Week

a. Stock of the Week: Bitcoin

Bitcoin has surged to an all-time high of over $111,000 per token, marking a 45% increase since its low in April 2025. This rise is attributed to increased institutional investment, favorable regulatory developments, and high-profile endorsements.

Example Quotes:
Neal Freyman [16:28]: "Bitcoin is seeing a lot more institutional money. The number of bitcoin held by public companies has jumped 31% to about $350 billion since the beginning of the year."
Toby Howell [17:57]: "There's a lot of protesters outside saying like, hey, this is exactly what we don't want."

b. Dog of the Week: Nike

Nike is spotlighted for reversing its 2019 decision to cease selling on Amazon, signaling a strategic shift to combat declining sales and market presence. This move comes alongside planned price hikes in an attempt to stabilize revenue.

Example Quotes:
Toby Howell [19:35]: "Nike is back selling on Amazon after a self-imposed breakup in 2019 to focus on their own DTC sales and crack down on counterfeits and low quality items."
Neal Freyman [20:50]: "Elliot Hill came in last year with a mission to turn around the company. It has proven very difficult to do."

Implications:

• Market Strategy: Nike's return to Amazon aims to regain lost market share and enhance distribution efficiency.
• Financial Health: Despite the strategic pivot, Nike faces significant sales drops, highlighting challenges in reversing the downward trend.

6. Final Headlines

a. President Trump's Actions Against Harvard University

The Trump administration has taken aggressive steps against Harvard by blocking the enrollment of international students and threatening to revoke the university's certification for its Student and Exchange Visitor Program. This move cites safety concerns but has drawn sharp criticism for potentially harming Harvard's financial standing and reputation.

Example Quotes:
Neal Freyman [21:31]: "Harvard's Student and Exchange Visitor program certification... is going to be a massive financial hit."
Toby Howell [22:25]: "Harvard says it's got nearly 10,000 people in its international academic population and also those people are paying more to attend the country."

b. Wiener Mobiles to Compete in the Weenie 500

A quirky promotional event where Wiener Mobiles—customized hot dog-themed vehicles—will race at the Indianapolis Motor Speedway. Each vehicle represents a different regional hot dog style, adding a fun and competitive twist to the event.

Example Quotes:
Neal Freyman [23:01]: "Each Wiener Mobile will represent a different regional hot dog... Who you got?"
Toby Howell [23:51]: "The Weenie 500 might be the greatest idea in human history."

c. Dr. Beach Reveals Top U.S. Beach

Stefan Leatherman, known as Dr. Beach, announces Cooper's Beach in Southampton as the best beach in the U.S., surpassing famed locations like Wailea Beach in Maui. His rankings are based on a comprehensive 50-factor checklist evaluating various environmental and cleanliness metrics.

Example Quotes:
Neal Freyman [25:24]: "Dr. Beach is a legend... we should take it seriously too."
Toby Howell [25:58]: "Dr. Beach is not necessarily correct train because I like the sugary white sand of like Florida from Clearwater beach and whatnot."

7. Closing Remarks

Neal and Toby conclude the episode by reminding listeners about the upcoming trivia night and the special Memorial Day interview episode. They encourage feedback and participation, fostering a sense of community among their audience.

Example Quotes:
Neal Freyman [27:35]: "Great show today, Neil. I wish you all well."

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Notable Highlights:

• The episode provides a comprehensive analysis of the newly passed tax bill, emphasizing its disproportionate benefits and potential economic repercussions.
• The discontinuation of the penny reflects broader economic efficiencies but highlights cultural attachments to traditional currency.
• Entertainment segments offer insights into consumer behavior and market trends, such as the resurgence of interest in Bitcoin and Nike's strategic pivots.
• Final headlines blend serious policy discussions with lighter, engaging topics, maintaining a balanced and informative tone throughout.

This summary captures the essence of the episode, ensuring that listeners gain a thorough understanding of the discussions and insights shared by Neal Freyman and Toby Howell.

Transcript

[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 the House passed a sweeping tax bill. We'll tell you what it means for the economy and for your wallet, then.

[Toby Howell]

Rip to the penny. U.S. treasury will stop minting $0.01 coins in a matter of weeks. It's Friday, May 23rd. Let's ride.

[Neal Freyman]

If you're listening to today's episode on the Friday before Memor Day weekend, well, you're committed to being informed. So why don't you prove it by coming to Morning Brew Daily's In Real Life trivia night on June 3rd, where you can create a team and compete against other listeners and what will be a really amazing night. Toby and I are hosting, of course, and we are hard at work writing questions that will entertain and delight. Plus, we can't wait to meet you all in person.

[Toby Howell]

Here are the details. It's going to be in New York City June 3rd. That's a Tuesday at 6pm at a very trendy bar in the East Village. We're in. We can't tell you the exact location on air that comes when you sign up for the event, which you can do by following the link in the show description. I am so excited for this Neil, because means we get to hang out with you all in person and be wildly impressed with how smart and plugged into the news cycle you guys are. So once more, June 3, 6pm in the east Village Trivia night with Neil and I. There will be prizes, so sign up at the link in the show description. And now a word from our sponsor, Iterable. Neil, you're a group chat guy. I see you discussing show topics with your college friends, but everyone's on different time zones, right?

[Neal Freyman]

Oh yeah, I'll drop a banger of a trivia question at 7am after we wrap up the show and eight hours later someone chimes in with the answer.

[Toby Howell]

But they always get it right because your friends are smart, but that's what marketing feels like when you're locked into fixed campaigns. You might send a message when you're ready because your campaign calendar says so, but it might not be when your customer is ready.

[Neal Freyman]

Iterable flips that it listens to the customer, not the calendar. So the message hits when they open the app. Browse a product really whenever the opportune.

[Toby Howell]

Moment is it's getting the whole group chat on the same time zone. Real time personalized engagement powered by AI and fueled by customer data across every channel.

[Neal Freyman]

So stop marketing like it's 4am in the wrong time zone. Go to end the campaign.com you may not have been productive at work counting down the hours till mdw, but the House of Representatives was Republicans in the chamber passed a sweeping tax and spending package they've dubbed the One Big beautiful bill that will have major implications for the US Economy and your personal finances. The bill is indeed big, containing a smorgasbord of GOP priorities. It extends President Trump's tax cuts for all income groups from 2017, which were set to expire at the end of this year, and heaps on even more tax relief on top of that, including a bigger child tax credit, a higher standard deduction, and the elimination of taxes on tips, overtime pay and Social Security benefits. It also ramps up spending on certain things like border security, national defense, and support for farmers. It decreases spending on certain things, too, like Medicare, food aid and tax credits for clean energy projects. But that's not enough in savings to account for the lost revenue from the tax cuts. Independent analysts estimate that the bill will increase budget deficits by about $2.7 trillion over a decade, which has spooked the bond market in days by worsening the US Is already concerning fiscal situation. Democrats don't find this bill beautiful at all, calling it a reverse Robinhood situation in which the government is taking from the social safety net to fund tax cuts for the wealthy. But they're not in the majority. So even though no Dems voted for it, it may become the law. And I say may because as you know from Schoolhouse Rock, the bill will now head to the Senate, which must also pass it before President Trump makes it official through his signature. So Toby, a long way to go, but this sweeping tax bill is one step close to reality.

[Toby Howell]

So let's start with how this might affect your tax bill. Though more than eight in 10 households would get a tax cut in 2026 under this bill's current form, the average household is looking at a 2026 tax cut of around $2900 compared to what it would pay if those 2017 cuts actually went and expired. So pretty solid there. But also 60% of those tax cuts would go to the top 20% of households with more than one third going to those making over $460,000 or more. If you're a family, you're also going to stand to benefit from this. There's a temporary $500 increase in the child tax credit. Plus all newborns are going to be given $1,000 in this kind of unique concept called a Trump account. It's fueled by a one time deposit by the federal government. So if that bill passes, parents can contribute to that account. It would just go towards a broad based market tracking the US Stock index. So that is kind of the play by play of who specifically is going to affect, which is a wide and broad swath of people.

[Neal Freyman]

It will also disproportionately help higher income earners in New York, New Jersey, California, these high income states, because there's this SALT did tax deduction which was probably the biggest sticking point of the bill. The salt, the state and local tax tax deduction, which was capped at $10,000 and 2017, that is now expanding to $40,000 up until incomes of $500,000. That's a big win if you're a property owner in the northern New Jersey suburbs. Listening to this or New York or any other higher tax jurisdiction, because you are going to be able to deduct a lot more of your taxes now under the new cap for the next few years.

[Toby Howell]

And then I also want to talk about what this bill did to clean energy in order to get it across the finish line. Congress basically completely cut clean energy credits, which is a big blowback to renewable energy companies, specifically rooftop solar companies, who stood to benefit from a lot of these clean energy kind of rebates under the Inflation Reduction Act. Those credits are now set to go away in 2028. And you saw that reflected in the market. Sun Run, the biggest rooftop solar company in the country, fell 37% yesterday. So this was kind of like Armageddon for a lot of those clean energy solar companies as well as wind companies. Anyone really who is standing to benefit from those IRA tax credits.

[Neal Freyman]

So looking ahead, the Senate still has to pass this bill before it heads to President Trump's signature desk for his signature. There could be a lot of wrangling and it might be in response to what's happening in the bond market. Yesterday we saw 20 year bonds and 30 year bonds go above 5%. Remember they've been tracking up for the past few months. They hit 5% yesterday, which is a very spooky level. It means that borrowing costs are going up across the economy. If you're going to finance a car, if you are going to mortgage your house. We have mortgage rates at over 7% now. So that is raising borrowing costs across the economy. And the reason for that is bond investors are very concerned about the America, about the United States fiscal situation. We just had this Moody's credit rating cut on Friday and the general feeling right now with this bill adding $2.7 trillion to deficits is that the United States is getting into, is digging itself into a deeper and deeper hole. And when bond yields go up, that means that's a basically a proxy for how much it costs the government to borrow. So we are already paying $1.1 trillion in interest payments per year last year and now we're going to have even, you know, when you borrow money it's going to, the interest payments are going to continue go up. So the bond market is throwing a bit of a tantrum. We'll see whether lawmakers respond by paring back some of the deepest cuts of this bill.

[Toby Howell]

Moving on. The penny has entered a heads I win, tails you lose scenario with the U.S. treasury. One cent coins are being officially phased out. According to the Wall Street Journal, the Treasury Department will stop putting new pennies into circulation by early next year, instructing businesses to get ready to round prices up or down. You don't need to pay a penny for the government's thoughts to figure out why they pulled the plug. There has been a long bipartisan effort to ditch the lowest unit of American currency, the spanning from Obama to Trump. Primarily due to costs. The Mint expects to save about $56 million a year through reduced material costs after putting an end to the most confounding of currency calculus. Each penny is worth only $0.01 but costs nearly $0.04 to make. Add it all up in the US lost more than $85 million last year on the coin. As for what is going to happen to prices, non cash transactions will still be priced in exact increments, but businesses will have to round prices to the nearest 5 cents for cash transactions. Neil, it was probably time. 60% of actively circulating coins sit in coin jars according to the Federal Reserve. But still the penny is so much a part of American culture. Penny stocks. A penny saved is a penny earned. Offering your $0.02, it's hard to imagine life without it and it will still stick around.

[Neal Freyman]

And that's because we're not eliminating the concept of the penny, we're just eliminating the actual coin itself. What our friends to the north did, Canada, in 2013, they eliminated the penny. But prices online specifically will probably stay in the cent range. You'll probably buy something for two, $2.11 or $2.16, because when you pay with a credit card, you don't need to pay with an actual penny itself. So it'll be very interesting to see how retailers play this, to say whether you go into a store and you see a cash version, a cash price for a particular good that's rounded up to 5 cents, or you see a credit card price that is, you know, the exact change that you would pay, typically in cash, but you're with a penny, but you wouldn't any more. So we'll see how retailers play. This can be very interesting. It hasn't really shaken up things in Canada. They've been in this new regime for 12 years. They have the concept of the penny, but they don't have a $0.01 coin itself. It's worked out just fine.

[Toby Howell]

Yeah. And no need to go and throw your pennies away right now, if you even have any, because they will remain legal tender. You can pay with them. And then also, fewer than one in five payments are actually made in cash, according to the Federal Reserve bank of Boston. So it's not going to rock a lot of boats. A lot of people are, are already tapping their Apple pay. They're paying with credit cards. And yeah, Americans throw away up to $68 million in coins a year. So it's not like people are really using these things a lot. One thing that is a second order effect of this is that if pennies got a circulation, what's going to become more in demand? And that are nickels. And the nickel is a disaster when it comes to its production costs. Obviously, nickel is worth 5 cents. It costs about 14 cents to produce in the last fiscal year. So that's up 20% from the year before. So you're saying, like, hey, we're trying to save money here by phasing out the penny. The nickel might be even more costly.

[Neal Freyman]

Barb and Heimer it ain't. But this weekend's box office matchup of Mission Impossible versus the live action Lilo and Stitch is certainly popcorn worthy. Just to set the stage, Mission Impossible, the Final Reckoning is set to hit theaters as the last installment in what's become Hollywood's greatest action franchise. Tom Cruise has left it all on The Court, playing Ethan Hunt, a field agent whose death defying stunts include a halo jump, driving a motorcycle off a cliff, and in final reckoning, hanging off the side of a biplane zooming at 170 miles per hour. And then there's Lilo and Stitch, Disney's live action remake of the 2002 cult classic featuring a little blue alien who causes chaos on earth after crash landing into Hawaii while flying under the radar. For more than a decade, Stitch has turned into IP gold for Disney, attracting legions of fans who were born born years after the original came out. On Disney plus, for example, Lilo and Stitch content is viewed about as much as the Little Mermaid. So listeners, which movie do you think is projected to earn more at theaters this weekend? The answer is Lilo and Stitch, which is expected to gross more than $165 million domestically, which would be as monstrous as its title character. Mission Impossible is also supposed to perform well, but not as well, with projections of around $80 million. Toby, in the double feature, which are you seeing first?

[Toby Howell]

Well, first of all I'm trying to come up with the Barb and Heimer version of this and all I got Is Ms. Stitch impossible or Mission Stitch Possible. They're all bad, so don't even try to stitch them together. I guess pun intended there. But yeah, Lilo and Stitch is just this movie that has gained so much groundswell. It was originally supposed to just be a direct to streaming sort of thing, but then over the last five years Stitch has just exploded in terms of its popularity. You just look at the merch sales. Just five years ago they were pulling in $200 million from this franchise, which isn't bad. But then that is swelled to $2.6 billion in Disney's last 2024 fiscal year. So there has just been this groundswell of support, a lot of it from young women who grew up watching the original film and have kind of aged into their lives and still just have very good nostalgic memories of it. But it's also brought in a lot of new fans as well. And Disney is on it with the merch. They're putting it on everything from dog collars to pineapple shaped goblets. They are going hard in the paint on this because they remember when they released 2013's FR and no One could get Elsa dresses anywhere and it was just this huge crunch from parents. They know that merch aspect of this calculus is very important, so they are just printing like you wouldn't believe the amount of merch.

[Neal Freyman]

So will this be a record setting weekend. It could possibly because the record for Memorial Day box office grosses was in 2013 when we had Fast and Furious 6, which is maybe the only analog that you have for the longevity of Mission Impossible was paired with the Hangover Part 3. So that's what Lilo and Stitch and the final Mission Impossible are going after. The expectations for lilo and Stitch has just gradually got higher and higher and higher over the past few weeks. Just four days ago it was 120. Just three weeks ago it was 120 million, now it's 165 million. So there's been amazing groundswell of support for Lilo and Stitch. This thing is going to be a behemoth at the box office.

[Toby Howell]

Up next, let's talk about our Stock of the Week and Dog of the Week. Do you ever feel like you can feel yourself getting older?

[Neal Freyman]

Literally all the time. Just ask my lower back.

[Toby Howell]

Yeah, my knee is saying the exact same thing.

[Neal Freyman]

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[Toby Howell]

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[Neal Freyman]

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[Toby Howell]

Want to feel aging differently? Get 10 off your first order of Mitrepure at timeline.com Morning Brew Daily that's T I M E L I N E.com Morning Brew Daily this message is a paid partnership with Apple Card. I'm a person who really appreciates simplicity and when it comes to credit card rewards, the simpler the better. That's one of the many reasons I have an Apple Card. The rewards are super straightforward. I earn up to 3% daily cash back on my everyday purchases. There are no points to calculate, no limits or deadlines. Plus, it's super easy to access my card and make payments from the wallet app of my iPhone. If that sounds like the kind of simplicity you want in a credit card, apply for Apple Card in the Wallet app on your iPhone subject to credit approval. Apple Card issued by Goldman Sachs Bank USA Salt Lake, Citibrin's terms and [e-mail].

[Neal Freyman]

It'S time for Stock of the Week, Dog of the Week, the segment where Toby and I pick one stock that's already at their lake house and another that's sitting in bumper to bumper traffic. I won the pre show javelin toss, so I get to go first. And my stock of the week is bitcoin, which celebrated bitcoin pizza day this week by reaching an all time high at over $111,000 per token. That is a 45% increase from its 2025 low on April 8 and can be chalked up to a variety of factors. One, investors everywhere have piled into riskier assets as Trump walked back his many tariffs to Trump's pro crypto agenda is advancing with a bill regulating stablecoins passing a key Senate hurdle. And three, bitcoin is seeing a lot more institutional money. The number of bitcoin held by public companies has jumped 31% to about $350 billion since the beginning of the year, accounting for 15% of the total bitcoin supply. Even bitcoin hater Jamie Dimon, who leads JP Morgan, said I defend your right to buy bitcoin and said the bank would let clients invest in it. It's another I told you so moment for crypto's biggest advocates, including Michael Saylor of MicroStrategy, a company that pioneered the concept of stashing its cash in bitcoin. On Wednesday, he wrote on X, if you're not buying bitcoin at the all time high, you're leaving money on the table. So Toby, here's bitcoin once again flexing up 18% for the year compared to the flat year to date performance of the S&P 500. Who would have thought.

[Toby Howell]

Michael Saylor would say such a thing as that? But yeah, it was a big day for bitcoin, not just because it reached an all time high, but also there was this big gala that Trump hosted last night where he brought in hundreds of the top investors in his meme coin, AKA Trump Coin for this intimate private dinner where he just spoke about his vision for crypto in the economy ahead. The price of admission ranged anywhere from 55,000 all the way up to $37.7 million. They hosted this big competition. Whoever was holding the most coins over a certain period got to have dinner with Trump. And there was a lot of protesters outside saying like, hey, this is exactly what we don't want. You do not necessarily want a means of exchanging access to the president by buying his his coin, especially if it comes to foreign investors as well. So two kind of things were happening in parallel here. That bitcoin hitting an all time high and this big dinner with access to the president, which just shows the place crypto occupies in our country right now. My dog of the week is Nike because it just did the business equivalent of crawling back to your ex five years later saying, you were right, I needed to work on myself, but please take me back. Yep, Nike is back selling on Amazon after a self imposed breakup in 2019 to focus on their own DTC sales and crack down on counterfeits and low quality items. The deal is a win for Amazon, who has been trying to attract more high end brands back to its platform. But for Nike, it represents the unwinding of a strategy that led to a 35% drawdown in its share price over the last five years where it shunned wholesale partners to focus on its own website sales. However, that strategy pivot was kind of overshadowed by a bigger announcement too yesterday. Price hikes are coming. Starting June 1st, some Nike gear will cost up to $10 more. You can expect to pay $5 more for sneakers under 150 bucks and $10 more for any above that range. New CEO Elliot Hill is trying to reverse a revenue slump that's lasted longer than a pair of beat up Air Force ones. But when that turnaround plan involves higher prices and a return to Amazon, you get the muted response from the market we saw this week.

[Neal Freyman]

Neal, the company's sales dropped 9% last quarter. 17% drop in China and its digital sal going down the toilet in Europe, the Middle east and Africa. E Commerce sales were down 25%, Greater China 20%. Their current strategy, especially online, is not working, which is probably why you see them going back to Amazon. They thought they could just be the storefront themselves and really tighten the distribution path for people buying Nikes. And now the fact that they're going crawling back to their ex going back to Amazon shows that whatever strategy they were pursuing, which was really tighten that window, it was not working at all. Elliot Hill came in last year with a mission to turn around the company. It has proven very difficult to do. He's been there for many months and you don't see any movement in improvements.

[Toby Howell]

Yeah, one of the big strategy mistakes that they're trying to recover from is they leaned way too heavily on their workhorses. Their classic sneakers like Air Force Ones, the Jordan Line, their Pegasus is to kind of juice demand online, but they kind of overproduce a lot of those SKUs and now they're trying to push people back to more of their full price sneakers. Stuff like Air Max shoes with a focus on running as well. So it's just fascinating to see, like the renaissance of Nike is passing through Amazon, which is not necessarily something that you would equate with returning the luster to the brand. So I don't know. Elliot Hill still has only been there for a little bit, but yeah, this turnaround is looking harder than initially expected.

[Neal Freyman]

Let's sprint to the finish ahead of the long weekend with some final headlines. President Trump turned his war against Harvard up to volume 11. His administration blocked the university from enrolling international students and forcing the existing ones to transfer or else lose their legal status by revoking Harvard's Student and Exchange Visitor program certification. In a statement, the Department of Homeland Security cited Harvard's unsafe campus environment that permits, quote, anti American pro terrorist agitators to harass and physically assault individuals, including many Jewish students, and otherwise obstruct its once venerable learning environment. Harvard responded that the move was unlawful and will support its international students, who currently make up 27% of its student body, up from 20% in 2011. Critics said the move amounted to America shooting itself in the foot by turning away the best and brightest from coming to study here. And it would certainly leave Harvard in a gaping financial hole.

[Toby Howell]

Yeah, Harvard says it's got nearly 10,000 people in its international academic population and also those people are paying more to attend the country. The institution, when room and board are included, the total cost usually adds up to around $87,000. So that is going to be a massive financial hit. And it just adds to the financial pressure that Harvard's already facing. Remember, the Trump administration has already frozen more than $2.6 billion of Harvard's funding. They've cut off future grants. They've also called for it to lose its tax exempt status. So this is just the latest in a series of financial blows, which means.

[Neal Freyman]

You'Ll probably see a legal challenge that blocks us from going into effect, which it would in the next few days. They could seek an emergency injunction. Something's happening later today that hasn't occurred in over 10 years. All six of Oscar Myers Wiener Mobiles will be in the same place. But this meetup won't be friendly. The Wiener Mobiles will race against each other at Indianapolis Motor Speedway in the inaugural Weenie 500, a promotional event ahead of the Indianapolis 500 on Sunday. And the stakes couldn't be higher. With regional hot dog supremacy on the line. Each Wiener Mobile will represent a different regional hot dog. The New York dog, the Southeast Slaw dog, chili dog in the south, shy dog in the Midwest, Seattle dog from the Northwest And Sonoran dog from the Southwest. In the ultimate test of toppings. Who you got?

[Toby Howell]

I'm going New York, baby. Hometown favorite here. But the Weenie 500 might be the greatest idea in human history. The the issue is that these things are not great cars. However, their long wheelbase makes their turning radius like about the same as a battleship. So don't expect the wieners to pick up any lap time through the corners, but on the straights. Also, don't expect them to pick up much time either, because these Wienermobiles ride on an Isuzu NPR truck chassis powered by a gas fed 330 horsepower 6 liter General Motors V8 engine, which means they can go 0 to 60 and wait for it 24 seconds. So yes, Neil, these things are not built for speed, but they are built for spectacle. Finally, Dr. Beach is back doing the thing he does best. Ranking Beaches on the Internet. Stefan Leatherman, a coastal scientist at Florida International University who goes by Dr. Beach, has updated his annual beach rankings and we have a new number one. Cooper's beach in Southampton on the eastern end of Long island is, according to the doctor, the best beach in the US Just beating out Wailai beach in Maui. What are the doctor's qualifications, you might ask? He's been raking beaches since 1991 and uses a 50 factor checklist to evaluate everything from the presence of algae to the cleanliness of the air and water. In total, beaches from Hawaii, New York and Florida dominated the list, but Cooper's came out on top. It's a big, beautiful beach, leatherman told CNN in an interview.

[Neal Freyman]

Dr. Beach is a legend. I mean, he just commits to this so hard and he takes it very seriously, which means we should take it seriously too. And one thing I want to point out from this list. No California, California, very famous for its beaches, got snubbed from the list in favor of a lot of Hawaii, a lot of western Florida, and then some northeast with Cape Cod and Long Island. I was actually passing by Cooper's beach last year and then I saw the hordes of crowds.

[Toby Howell]

Yeah.

[Neal Freyman]

And I was like, I think I'm just going to keep driving. But it does seem pretty awesome.

[Toby Howell]

I know. I'm confused at how he's got a 50 factor checklist, but crowds and crowding isn't necessarily one of them because he did mention the fact that you're going to have to deal with traffic on the way to this Long island beach. And then also there's very high costs of parking as well. And he recommends taking a free shuttle from downtown Southampton, but I would I'm kind of on the Dr. Beach is not necessarily correct train because I like the sugary white sand of like Florida from Clearwater beach and whatnot. He's more of like the overall setting and if it's more natural. So I remember dating back a few years ago on this podcast, I've had a little bit of beef with Dr. Beach, but I do like seeing Florida well represented here with with two beaches making the top 10 list. Cape Cod in Massachusetts also made it as well. So Dr. Beach, he's got a good bit going. Go check out Cooper's beach in Southampton.

[Neal Freyman]

That is all the time we have. Thanks so much for starting your morning with us and have a wonderful Memorial Day weekend. Just so you're aware, on Monday, Memorial Day itself, we are putting out a special interview episode, so be sure to tune in as you're driving back home. Then on Tuesday we'll be back to regularly scheduled programing to repeat Monday special episode Tuesday, back to the classic format.

[Toby Howell]

And also don't forget to to head to the show description to sign up for Trivia Night that is going down on June 3rd.

[Neal Freyman]

If you have any thoughts on today's episode, send an email with questions, comments or feedback to Morning Brew daily at Morning Broadcom. Let's roll the credits. Emily Milian is our executive producer. Raymond Lu is our producer. Our associate producers are Olivia Graham and Olivia Lake. Scoop Stardaris is on Audio Hair Makeup wants to hear from Dr. Lake. Devin Emery is our president and our show is a production of Morning Brew.

[Toby Howell]

Great show today, Neil. I wish you all well.