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Hey, Fidelity. How can I remember to invest every month?
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With the Fidelity app, you can choose a schedule and set up recurring investments in stocks and ETFs.
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That sounds easier than I thought.
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You got this?
Neal Freyman
Yeah, I do.
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Now, where did I put my keys?
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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, you've heard of K Pop, but K Beauty is right on its heels.
Toby Howell
Ben Baskel hasn't seen a gambling scandal this big since I bet Neil I could beat him in horse. It's Friday, October 24th. Let's ride.
Neal Freyman
Happy Friday, Especially to everyone who misses Clippy. Because Microsoft is reincarnating its annoying but lovable software assistant nearly 30 years years after it debuted. Meet Mikko, a new artificial intelligence character you could think of as Clippy 3.0. Miko is a floating emoji like blob that's meant to embody Microsoft's copilot virtual assistant. It'll answer your questions while you use Microsoft apps and respond to your behavior. If you're in study mode, it'll don glasses. If you tell it something a little sad, it'll sympathize with its facial expressions. Most importantly, you can shut off Miko when it gets too sassy. One of the more common complaints with that persistent animated paperclip. Toby, is the world ready for a new Clippy?
Toby Howell
All I have to say is, how dare you stand where he stood? An expressive avatar blob named Mikko. Are you kidding me? Give me an anthropomorphized paperclip or give me death. I do like that they included an Easter egg in homage to Clippy, where if you tap Mikko a couple of times, it transforms into Clippy. But I guess anything is better than whatever Grock is doing with its AI chat bot and, you know, having these risque anime companions. I'm interested to see how people react to Microsoft's Blob. I don't know why Blob is the de facto, you know, assistant in the air right now. If you talk to ChatGPT voice assistant, it's kind of blob like, too. What is with it? Give me something anthropomorphized.
Neal Freyman
They're so cute.
Toby Howell
They are.
Neal Freyman
Blobs are extremely cute.
Toby Howell
Have you seen Clippy with. No, actually, Clippy was really annoying. Maybe I'm just reversing my whole stance on it all, but I just don't think you can replace an iconic figure such as Clippy with something like a blob.
Neal Freyman
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I thought the pigeons were back though.
Neal Freyman
What?
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Toby Howell
Back for less than a week and it's already embroiled in a massive gambling scandal bigger than Victor Wembanyama will ever be. Federal agents arrested Portland Trailblazers coach Chauncey Billups my and Miami guard Federal agents arrested Portland Trailblazers coach Chauncey Billups, Miami guard Terry Rozier along with 30 other people yesterday morning as part of two sweeping investigations in into illegal sports betting in a mafia linked poker ring. First up, prosecutors alleged that Rozier tipped off members of a betting ring that he would leave a game early, allowing them to make money on prop bets that depended on his performance in the game. Under investigation, which took place back in 2023, Rozier played just nine minutes and scored five points after averaging over 35 minutes and 21 points that season. Separately, Chauncey Billups, an NBA champion hall of Famer and current coach in Portland was was allegedly conspiring with the literal mafia to participate in rigged poker games. According to prosecutors, this was a Hollywood level operation complete with custom made poker tables fitted with X ray scanning panels, glasses capable of reading marked cars and hidden cameras in card trays. Now this scandal comes as the NBA and most professional sports league have deeply intertwined themselves in the legal betting ecosystem. And now they have the call coming from inside the house as multiple high profile members of the league found themselves wrapped up in a truly massive scandal.
Neal Freyman
This is the most surprising news and the least Surprising news you could imagine. In terms of least surprising, the NBA has been embroiled in a growing gambling crisis for the better part of a year. There was another NBA player, John Porter, who was caught up in the same investigation. He was found to have thrown games and played less than he could have in order to spread profits among bettors who he's spread insider information to. He was banned for the NBA for a life, a lifetime. He can't play in the NBA anymore. And then in terms of. It's surprising because it is the nexus of the professional basketball world, Mafia families in New York and the growing world of online sports betting. Cash Patel, the FBI director, called it the insider trading saga for the NBA. There's massive fraud going on, according to the FBI, and the scope of it feels like we've just really scratched the surface.
Toby Howell
Yeah, it's happening in other sports as well. I mean, I go back to 20, 23 in NFL, they suspended 10 players that year alone. Last month, the NCAA banned three basketball players and announcing it was investigating 13 former men's basketball players as well. I do think some of the fallout from this, because the Terry Rozier aspect of it that is tied to prop bets, which are individual bets on a player's performance. It's actually a lot easier to rig prop bets than it is to throw an entire game. It's a team sport, so you can only do so much to influence a game's outcome one way or the other. But if you say, I'm going to bet the under on your ports, on your. On your points, Terry Rozier and then he checks himself out of the game and those unders start to hit, that's become a conduit for a lot of these illegal betting schemes because it's just so easy to influence a single player's performance. So I do think that you might see the NBA start to tighten rules on injury and participation, reporting before games. So bettors don't have access to insider information, privileged information, and it's something that everyone can have. So that might be some of the fallout you see from this, is maybe a crackdown on prop bets and maybe a crackdown on how injuries are reported in the NBA.
Neal Freyman
Pressure is growing on the NBA in particular. Adam Silver, who is the commissioner to address this growing problem. He was on the Pat McAfee show this week. He was. He was talking about specifically prop bets, and he said that he is talking with gambling partners for the NBA, which are these. Which are these huge gambling companies to, quote, pull back some of the prop bets for Lower paid players. He said we have to protect the competitors. We want to protect the environment in the arena of people getting out of hand. And he needs to address this asap because there's growing concern that the integrity of this league and also other professional leagues as this, as this industry has grown is being completely compromised. And people are spending millions, billions of dollars betting on these games. And you're not quite sure whether the outcome is actually truly competitive.
Toby Howell
Meanwhile, this poker game is trul insane. I was going back through the archives. Some poker podcasts had tipped people off on this game for a while. Even name dropping Chauncey Billups as far back as 2023 as running a rigged game because it sounds fake. I mean, what do you mean? That people are wearing glasses and contact lenses? That it can see marked cars? But that was exactly what was happening. Chauncey Billups and then Damon Jones, which is a former player and coach in the NBA, were quote, unquote, the face cards that were meant to lure in high profile, you know, celebrities, people with high net worth to the game, whereas everyone else was in on it. And that fish, you know, was taken as the kind of target. And those victims losses totaled $7 million. So this was a lot of money passing through this game. So separate but related case, Chauncey Billups also might be someone who is associated with the gambling probe as well. Just pretty crazy that when this news started dropping like first terror, then Chauncey Billups. I think this is not the last we've heard of this scandal either because of how far reaching it apparently was.
Neal Freyman
Moving on. The US Just put the two biggest Russian oil companies on the no fly list, shaking up the global energy market and putting the most intense pressure yet on Vladimir Putin's war economy. On Wednesday, President Trump announced heavy sanctions on Lukoil and Rosneft, Russia's two largest oil producers. The goal, according to the White House, was to hit Putin where it hurts his bank account in order to squeeze him back to the negotiating table for a cease fire in Ukraine. And this would hurt. Taxes from Russia's oil and gas industries account for about a quarter of its entire federal budget, which is looking a bit leaky almost four years after it launched its invasion of Ukraine. These sanctions are such a big deal because they could effectively cut off Russia's oil giants from their biggest customers, China and India. Now wait, you say China and India didn't sanction Russia. Why couldn't they just keep buying Russian oil? Well, the US Is still the top dog of the global economy at Least in the West. And India and China could be cut off from Western banking systems and access to US Dollars if they do business with the Russian companies that are sanctioned by D.C. as former State Department official Eddie Fishman said, a Chinese bank, a UAE oil trader, an Indian refinery. If any of them transact with those Russian companies, they could be hit with U.S. sanctions. So they're in a bit of a pickle. And so is the oil market, which Toby had a major reaction to this move by Trump.
Toby Howell
Yeah, the oil market has been pretty stagnant for most of the year. But when this happened, you did see bank crude prices shoot up a little 5% immediately on reaction to this news. Russians oil shipments have been remarkably resilient and consistent despite the fact that Western measures have been trying to sanction them since the war on Ukraine broke out. They recently hit a 29 month high, actually, Russian oil shipments. And a big part of that equation is India. India has essentially been Russia's lifeline since 2022. They've bought over a third of its crude imports from Moscow. So if that relationship starts to get a little shaky, Russia is in a tough spot right now. Which was exactly, you know, the point of these actions by the US Yeah.
Neal Freyman
Analysts say that this, the impact of this blacklisting really will depend on three things. How much they are in force, the reaction of India and China, whether they continue to buy from Russia despite the threat of these secondary sanctions, and whether Russia can circumvent the measures. I don't think there's a country on earth that is better than circumventing sanctions than Russia. They've been doing it for four years and even longer. They still send plenty of oil to Russia and India, but. Or to China in India. But we'll see the reaction from China and India because they've been getting so much of their oil, as you mentioned, at a real discount because Russian oil is very cheap on the global marketplace right now because it does have this big target on it. So everything depends on Russia and so everything depends on China and India's reaction, how much the US Is willing to enforce this, because if they are, it will be a huge shakeup of global energy flows.
Toby Howell
And candidly speaking, we were probably going to do a story earlier this week about how cheap oil oil prices have been before, you know, this 5% jump hit yesterday. And for a long time, cheap oil was kind of a blessing for the US because it just boosts consumers, it cools inflation a little bit. But now that the US Is such a big producer and exporter of oil. Those cheaper barrel prices actually hits economic activity. So if you are a net exporter, you don't necessarily want to see oil be cheaper. So it's kind of been a flip over the last couple of decades as US Oil production has ramped up and suddenly cheaper oil is not the boon it once was for the economy. Moving on. President Trump was feeling lenient yesterday and passed down a presidential pardon that effectively wipes away one of the most significant crypto crime cases in US history. The beneficiary is none other than Changpeng Zhao, the billionaire founder of the world's largest crypto exchange, binance. Flashback to 2023 and pleaded guilty to failing to maintain anti money laundering controls at Bina, which allowed sanctioned users and terrorist groups to transact freely. Binance paid a $4.3 billion penalty, a record fine, and Sisi was sentenced to four months in prison before being released late last year. This pardon now sets up a path for Binance to operate legally in the US Once more. Why is Trump handing out this particular pardon? The administration has made a number of pro crypto moves already, with the White House press secretary Caroline Levitt just fine, this latest one saying the Biden administration's war on crypto is over. Trump's family also has a number of ties to the crypto world and Binance, particularly in May of this year. World Liberty Financial, the Trump family's crypto venture, facilitated a $2 billion investment in Binance via USD1, the stablecoin that it had developed, forging a partnership between the two companies. Neil Sisi is thought to be the richest person in crypto, with a net worth north of $80 billion. Binance is the biggest crypto exchange on earth, processing over one third of all digital currency transact. Trump wants to court the crypto crowd. This is the right person to pardon.
Neal Freyman
Though he has received criticism from allies including the investor Joe Lonsdale, who said, I love President Trump. This is possibly the greatest administration of my lifetime, except for these pardons. If I'm calling balls and strikes, these are hit by pitches. POTUS has been terribly advised on this. It makes it look like massive fraud is happening around him in this area. And this dates back to this relationship that has fostered with the Trump administration and with the Trump family's crypto venture, World Liberty Financial, because ever since he went to jail and then came out of jail four months later, has been making moves in order to cozy up to the Trump administration or the Trump family's crypto company in order to facilitate this the growth of USD1, which is the cryptocurrency promoted by this particular company. And he's taken a number of moves, including facilitating that $2 billion investment which caused the price of this cryptocurrency, Trump's cryptocurrency, to move like way up in price. So he has been taking these steps and now a lot of observers are saying, wait, what is going on here? Is this sort of what are the ethical considerations of the fact that he has been cozying way up to Trump and now that he's getting the pardon, what is the quid pro quo?
Toby Howell
Yes, some of those ties, I'll just mention them here. Teresa Gulian is an ex SEC lawyer who also represents Zach Witkoff, which is the son of Trump's Middle east adviser, Steve Witkoff, who is also the business partner of World War World Liberty Financial. That is kind of the lawyer and lobbyist that Sisi has been cozying up to. And then also Ches McDowell, he's a lobbyist on Capitol Hill as well, hunting companion of Donald Trump Jr. He and were like appeared together as well. So you are seeing Binance not only back these major business deals and investments in World Liberty Financial, but you're also seeing him just start to get his tentacles or start to cozy up to a lot of people close to Trump's orbit as well. Which is why you are seeing some of these alarm bells obviously from Democrats but also from some staunch Trump allies as well, saying this looks a little bit like too intertwined with each other. Maybe we should have some separation here. All right, we're going to take a quick break and come back with our stock and dog of the week. Marketing your brand these days probably feels harder than finding a good avocado at the grocery store at 5pm so why.
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Toby Howell
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Toby Howell
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Neal Freyman
It's Friday, which means it's time for Stock of the Week Dog of the Week, the segment where Toby and I pick one stock that's embracing sweater weather and another that's already looking forward to the spring. But you know what? The sun is setting so much earlier now. We could all use a little more light. Who has time for negativity? So today we picked two surging stocks to tell you about. Of course, I won the pre show Quidditch match, so I get to go first. And my Stock of the Week is Quantum Computing companies, which popped yesterday on a report that the US Government is considering becoming a shareholder. Wednesday evening, the Wall Street Journal wrote that several quantum companies are in discussions with the Commerce Department to swap equity stakes for federal funding, sending shares of names like Ionq, Rigetti Computing and D Wave Quantum up at least 7% in trading yester. If the deal were to materialize, it would mark the next phase of the Trump administration's unusual interventions into the private markets. Already this year, the US Government became the largest shareholder of Intel, a key chip maker, and scooped up major stakes in American companies that mine rare earth minerals, the theme that ties all these government targets together. They are the infantry soldiers in the technological arms race between the US And China, and quantum computing is one of those battle lines. This tech, while still experimental, has the ability to make every aspect of the economy more efficient by solving complex problems in the fraction of a time it would take a classical computer unlocking drug discoveries and creating new materials. Just this week, Google turned heads when it showed a quantum computer can run 13,000 times faster than traditional computers. Toby 2025 has been the year of quantum, and this would put the cherry on top.
Toby Howell
Yeah, unfortunately, some of that quantum mania was squashed in the afternoon, though, when officials threw cold water on the idea. A spokesperson did say in a statement the Commerce Department is not currently negotiating equity stakes with quantum computing companies. The denial came after that Wall Street Journal report came out. They did say that maybe it wouldn't be equity stakes, but more in the form of a loan. So it's not actually taking direct, becoming a direct shareholder in the company. It did kind of cut short the rally for these companies, but most of them did end up the day still in the positives because I think the bull case is here. Long term, the government thinks that, that this is a critical industry, much like rare earths, much like chip manufacturing. And so they will send a little support and investment their way. The hype train has been maybe a little off the rails this past year because a lot of these companies do not make any revenue. They say so themselves. A lot of these CEOs come up and say on earnings calls, hey, we're not expecting profitability in this decade. For the most part. This technology still needs a long time to mature. But if you want to skate where the puck is going, you say, maybe this is a critical industry going forward.
Neal Freyman
Quantum computing stocks have been on a roller coaster this year. I mean, as soon as we finish the show, I see you go and see and look into quantum stocks and either up 20% or down 20% every single day. Overall, they have been surging this year. D Wave is one name that's up 223%. Rigetti is up 98%. They are very, very active in terms of the retail trading community. People love trading these stocks. They are the, they are included in the beam stock ETF that was just introduced a few weeks ago. So these are stocks that people are trading like crazy. And now that the US government has taken an eye, they're probably only going to be even more popular among the individual investor crowd.
Toby Howell
My stock of the week is a pr, not a PR as an annual percentage rate on your car loan. April as in South Korea's most valuable cosmetics group. APR's market cap reached $6 billion this week, surging past legacy giants in Korea and nearly on par with America's elf beauty. The impetus behind its rise is a $180 facial gadget called the Booster Pro, which combines electric microcurrents and LED light therapy, sort of like a wand for smooth skin. All it took was a Kylie Jenner endorsement, literally a 15 second video on TikTok to spark a global sales boom. A PR taking over the mantle as the most valuable cosmetics company in cosmetics craze Korea is significant because it demonstrates a shift in consumer behavior with buyers increasingly investing in beauty tech rather than just the high end creams that hair and makeup are putting on Neil and I. Neal, this company is a rocket ship. Its 7x revenue in 6 years from 70 million in 2018 to nearly 500 million in 2024. All led by Kim Byung Hoon, a 36 year old entrepreneur who used to be an app developer before he became a skin care mogul. I hadn't heard of this company though, obviously, but I'm looking at our skin right now. We could use a little APR in our lives.
Neal Freyman
Toby, tell me you haven't heard of this company. Look at your glow. You've definitely been using the booster pro over the past few months. Yeah, this, this billionaire, the CEO of this company, you know, he doesn't have that big ambitions. He said only we want to be essentially like the early stages of Apple when they first started with the iPhone. He's, you know, setting the bar real low. It is an absolute rocketship as k Beauty is overall. And I don't think it's a coincidence that this company got a huge prop pop from a TikTok video because k beauty and TikTok have gone together like peanut butter and jelly is the top beauty category on TikTok shop. With 132% growth in 2025. There is a vibrant ecosystem of small companies paired with large contract manufacturers in South Korea. Put that all together on TikTok toddock and you have a recipe for absolute booming growth.
Toby Howell
And they kind of run the same fast fashion playbook that Shein and Tamu run, which is they see viral trends and hop on them very, very quickly. Because if you are so integrated with TikTok, you can see something start to bubble up and then create a product that serves that trend. One of the trends that I think that you should keep an eye on and something that a p R has her eye on is salmon sperm facials, which unfortunately I did it look up. It's supposed to be good at hydrating, plumping, and all around you defying your face. It takes DNA extracted from salmon sperm. It's called polynucleotides. And you inject it with a needle under your skin. This is something that another Kardashian swears by. Kim Kardashian. I did read a vogue article and apparently it works. The author went and did and said it hurts when you do it. But then a few weeks later I was getting a lot of compliments on your skin. This is the next frontier for apr. They want to, you know, roll out something that clinicians can inject into people looking to youthefy their skin. So. So they have $180 magic wand that you defies your face now to go along with a $1,000 injectable salmon sperm facial. How could you bet against this company?
Neal Freyman
Well, Toby, you eat salmon roe. Why don't you just start injecting yourself with salmon sperm? Just everything from this salmon. No. South Korea is an absolute rocket ship in terms of cosmetics. It just recently topped France with exports of more than $10 billion to become the second biggest exporter to the United States in terms of cosmetics. All right, let's sprint to the finish with some final headlines this morning. After an economic data blackout of more than three weeks, a ray of sun will pierce through the clouds. The Consumer Price Index, which measures inflation in the US Economy In September. The inflation report is like putting a couple of hot pizza pies in front of kids who just finished a soccer game. Because of the government shutdown, ravenous central bankers and investors have been relying on scrap to tell them how the economy has been doing this fall. They shouldn't get used to it as long as the shutdown is going on. The CPI release is a one off after the Bureau of Labor Statistics called staff back into the office to calculate the 2026 cost of living adjustment for Social Security, which requires inflation data. As for the inflation report itself, analysts expect prices rose at a faster than normal 0.4% rate last month, raising annual inflation to 3.1%. That'd be the fastest pace in more than a year.
Toby Howell
Yeah, as the market is parsing through inflation data, which. Great metaphor, by the way. Maybe hungry, the soccer game and the pizza. I've been there before. But as they're dealing with that, they're also dealing with. Late last night, President Trump announced he's terminating all trade negotiations with Canada over an ad. Actually, the ad used Ronald Reagan's voice to criticize tariffs. It's from a 1987 address where he warned that tariffs can seem patriotic but actually hurt every American worker and consumer. That that rubbed Trump the wrong way. So he actually said, no, we're breaking off all talks once more. So it'll be interesting to see how the market processes is both the first data they've had in weeks and also this news that negotiations with Canada have broken down.
Neal Freyman
And finally, on this Friday, Netflix wants to help you with your New Year's Eve plans. The streamer is going to put the series finale of Stranger Things in theaters starting December 31st at 8pm Eastern and running through New Year's Day. And you'll get your money's worth because the final episode to a series that started all the way back in 2016 scene is going to be two hours long. It'll mark the first time Netflix has ever given an episode of one of its TV series a theatrical release and represents a concession to the Stranger Things creators who really wanted to make this happen, to have the show's fans watch the last episode together communally. The fifth and final season of Stranger Things will arrive November 26, the day before Thanksgiving.
Toby Howell
I'm very curious about this because personally, I lost, you know, the Stranger Things plot years ago because it's just taken absolutely so long. The joke is that these are, you know, middle schoolers are all in their mid-20s now because of how long this series has taken to produce. So I wonder if people are going to turn out for the show. But if anyone can do it, create this cultural moment. Netflix Scan and candidly, people do love dressing up and going to the movies and having like, I mean, look at the Heiress tour. People who are within a certain fandom do love these big fan serving moments. And just from the creator's perspective, some of the show's creators, Matt Duffer, said people don't get to experience how much time and effort is spent on sound and picture. And usually they're consuming it on their phones or on their laptops or on their TVs. They're not getting the full experience of it. So I understand from their perspective. But I am just very curious to see how many people turn out for this, especially for a TV series that's just stretched on forever and ever.
Neal Freyman
It worked for Netflix for K Pop Demon Hunters. So over the summer, Netflix had this, you know, they had their biggest movie ever, K Pop Demon Hunter, on Netflix streaming service. People watch that and then they put it in theaters for one weekend. It became the biggest movie in the entire country for that weekend, led the box office. Then they took it off and people said, we want more. So now they're actually going to put it back in three major chains, amc, Regal and Cinemark over Halloween weekend. So K Pop Demon Hunters is coming back.
Toby Howell
I mean, everything Korean is coming up. We started with Skincare, you know, random with K Pop Demon Hunter. Bet against Korea.
Neal Freyman
All right, that is all the time we have. Thanks so much for starting your morning with us and have a wonderful Friday and an even better weekend. If you have any feedback on today's episode, send a note to Morning Brew daily at Morning Broadcom. Let's roll the credits. Emily Milian is our executive producer. Raymond Liu is our producer. Our associate producers are Olivia Graham and Olivia Lake, hair and makeup. Never had a chance in that poker game. 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.
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Episode Title: Gambling Scandal Rocks the NBA & Oil Jumps After US Sanctions Russia
Date: October 24, 2025
Hosts: Neal Freyman & Toby Howell
This episode dives into three major business and world news stories:
The hosts also discuss the rapid ascent of Korean beauty companies, the wild week for quantum computing stocks, and shifting economic winds as inflation data is released and U.S.-Canada trade talks break down.
Overview:
The NBA is embroiled in "a massive gambling scandal," with federal agents arresting high-profile figures like Portland Trailblazers coach Chauncey Billups and Miami guard Terry Rozier, along with 30 others. The investigation spans illegal sports betting and a mafia-linked poker ring.
Details of the Scandal:
Industry Fallout:
League Response:
Memorable Quotes:
Overview:
President Trump announced heavy sanctions against Lukoil and Rosneft, Russia’s largest oil producers, in an attempt to squeeze Putin financially.
Potential Impacts:
Geopolitical Considerations:
The hosts analyze how secondary sanctions upend global energy flows and highlight the discomfort for India, Russia’s main oil customer since 2022.
U.S. Economic Angle:
The U.S., now a leading oil exporter, faces shifting fortunes as oil price increases help producers but can also fuel inflation.
Memorable Quotes:
Overview:
President Trump issued a presidential pardon to Changpeng Zhao ("CZ"), founder of Binance, erasing one of the most significant crypto crime convictions in U.S. history.
Background:
Political and Ethical Fallout:
Memorable Quotes:
U.S. Inflation Data Returns:
U.S.-Canada Trade Tensions:
Netflix’s Blockbuster TV Finale:
This episode of Morning Brew Daily delivers sharp, fast-paced analysis of business, markets, technology, and the culture-defining stories of the week. With a tone both witty and serious, Neal and Toby tackle scandals and market shocks with clear breakdowns and memorable banter—making the episode as informative as it is entertaining.