
Inflation cooled in Feb & Pokémon GO goes to Saudi Arabia
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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 average workday is shrinking. So what is the new 9 to 5 then?
Toby Howell
Inflation finally slowed its roll last month, but danger lurks ahead. It's Thursday, March 13th. Let's ride.
Neal Freyman
Does Vanna White have the best job in the world? On a recent radio appearance, the Wheel of Fortune co host delivered the shocking news that she works just 34 days a year, meaning she gets 331 days off. And the pay is pretty good, too. After not getting a raise for 18 years, White reportedly negotiated a new contract that gave her a substantial pay increase above her existing $3 million per year salary on the day she does work. It does sound pretty intense. The show films six episodes per day, which requires six wardrobe changes. Come on, feel bad for me? White said. Toby, do you feel bad for her?
Toby Howell
Our queen, Vanna White? I think she's worth every penny. I mean, look at it. Fortune generated $100 million in advertising revenue last year, so I think she's definitely worth it. But I was doing a little bit of digging to see who might have a better dollar per minute worked than Vanna White. And there's this guy, Kevin Schmidt, who. Who climbs a 1500 foot TV tower twice a year to change the light bulb. He makes $20,000 per climb. Yes, he's got the risk of death. Vanna has a lot less. So. But I think it's a toss up on the literal dollars per minute work. So, Kevin Schmidt, Vanna White, those two are on the Mount Rushmore of dollars per minute worked. Now a word from our sponsor, Invesco qq. Neal, when was the last time you checked your resting heart rate?
Neal Freyman
Toby, why on earth would I ever know that?
Toby Howell
Hey, it's important to know the state of your aerobic system. But the reason I ask is because you've been spending a little too much time in your brokerage account.
Neal Freyman
I like to know what's going on in the markets, okay? Who the up and coming innovators are.
Toby Howell
I get that. But you don't need to be constantly checking in, looking for the next big thing because Invesco QQQ is already packed full of the most innovative companies.
Neal Freyman
But isn't it a little tech heavy?
Toby Howell
That's the beauty. It's not just a tech etf. You are also getting exposure to health care, industrials, communication services.
Neal Freyman
Fine, I'll check out QQQ and I guess I'll figure out what my resting heart rate is too.
Toby Howell
We're making progress with Invesco qqq. You can rethink what's possible before investing. Consider the fund's investment objective, risks, charges and expenses. Visit Invesco.com for a prospectus with this information. Read it carefully before investing. Full disclosure in Podcast Description New inflation numbers dropped yesterday and for the first time in months, lead foot prices actually eased off the accelerator. Woo hoo party in the streets. Well, not quite. The Consumer Price index rose just 0.2% in February, the slowest pace since October. That brought annual inflation down to 2.8%, better than expected, thanks to falling gas prices, cheaper housing and airfare taking a 4% nosedive. Even egg prices, which have been on a rampage, climbed less than last month, though they're still up nearly 60% from a year ago. Before you break out the margaritas, economists are bracing for higher prices in the future. President Trump's tariffs on steel, aluminum and a fresh round of Chinese goods are expected to push up prices on everything from clothing to food to cars. So while the White House is holding this inflation report up as proof the economy is on track, Wall street wasn't as convinced. Stocks rallied briefly on the news before wiping out those gains just hours later and finishing the day about flat. Meanwhile, the Federal Reserve is likely still in wait in season mode, looking for more clarity on Trump's trade actions, and this report likely won't sway it away from its plan to hold interest rates steady when policymakers meet next week. Bottom line, Neal, Inflation may have cooled for now, but with tariffs heating up, this could be the calm before the $20 egg storm.
Neal Freyman
I'm taking the W here. My portfolio really needed this stop stopped stocks stopped their three day slide. A really nice change of pace. After weeks of some pretty bleak economic data and surveys, we finally got some encouraging news here. With inflation coming down or inflation growing at its slowest pace in four months, that steady, bumpy decline that we've been seeing over the past few years is still continuing apace. We'll see what tariffs and other measures have in store going forward. But right for now, you know inflation is still coming down and I think we should celebrate that.
Toby Howell
Just diving into some of the specific categories. Nearly half of the advance of the overall CPI was due to shelter costs, but those costs actually still decelerated from the prior month. So they did go up a little bit less quickly. Airfares falling 4% was actually a big reason why this inflation report came in, you know, a little less hot. And that's because a lot of carriers, as we've spoken about, have forecasted a weaker demand. Prices of new cars, gasoline also declined. Grocery prices were pretty unchanged actually after a big increase in January. So the. That's actually a good thing. Technically they fell if you exclude eggs, which I think some people are probably doing at this point. And yeah, so I do think that, as I said, the Federal Reserve probably is in wait and see mode. There's nothing much that this report can do that really will sway it one way or the other. They still need more data to come in. Still see. Need to see these inflation numbers milding out a little bit.
Neal Freyman
Yeah. Jerome Powell gave a speech last week. He said he wants proof that inflation is moving sustainably lower. One month of cooling inflation such as we saw lower than expected is not necessarily any definition of sustainably. So the Fed is meeting next week. They are expected to hold interest rates. Steady. Bets did rise of an interest rate cut in June, but that is a long time from now. There is a lot of policy shifts and new economic data that will come out in the interim. So again, wait and see. Moving on. This week, CEOs of major food companies met with Health and Human Services Secretary Robert F. Kennedy Jr. And and were given an ultimatum. Either you get rid of artificial dyes by the end of Donald Trump's term or I'll do it for you. The ultimatum was delivered during a Monday meeting that included the chief executives of General Mills, Pepsi, Kraft, Heinz and more. They were told it is a top priority of this White House to make the American diet healthier by removing potentially harmful ingredients. Food dyes that make your Cheetos neon orange and Kool Aid strikingly red have been a target of health advocates for years. But the movement has gotten a huge boost from rfk, who originally ran for president under an agenda to make America healthy again. RFK has called out food companies for, quote, poisoning Americans. And according to the Consumer Brands association, during Monday's meeting, he made clear his intention to take action unless the industry is willing to be proactive with solutions. The government has already begun taking steps in this direction with the FDA last year revoking its authorization of artificial dye red Number three, due to possible cancer links, a number of states, red and blue, are going even beyond that, sprinting to ban even more artificial additives. Toby, the wind is behind the sails of the artificial dye removal movement. Now these companies have to figure out what their next moves are, right?
Toby Howell
Health advocates for years have been trying to get these things out of foods. They say one, they add nothing to taste. They don't do anything to nutritional value, they don't affect shelf life. All they do is make unhealthy foods look more visually appealing, which encourages more people to buy them. And then of course, there is some research that say they could be carcinogens as well. And it does look like Kennedy isn't just stopping at artificial dyes. He wants to expand beyond that. He said that the agency is going to look at generally recognized as safe rules. Those are the rules that allow companies to basically self affirm which food ingredients make it into their products. He says he wants to look at, at those and just basically take a step back and say, what is going into our food supply? California has long been a leader in this movement. They banned six food dyes from food served to children in public schools back in September. West Virginia has also been leading the charge. They advanced this big ban that targets a range of common food dyes that have been linked to health problems. And that got overwhelming support from both Republicans and Democrats. It passed both legislative chambers and expected to make it to the governor's desk for signing soon. So there is a groundswell of support for it.
Neal Freyman
So how important is artificial dye, that neon cheetah color to sales? Are, are we humans so obsessed with these very bright colors that is so important for food companies to include them in their products? Well, if you go back through history, there are maybe some mixed messages. General Mills took food dye, artificial food dye out of their cereal in 2016. That includes tricks. What they found was that people will not buy tricks that has muted colors. A year later, they put the artificial dye back in their cereals, back in Trix. So that was a warning sign to the industry. Then again, for every Trix debacle, there is a Kraft Heinz success story. Kraft Heinz also that year took out artificial dye from their Mac and cheese and that didn't seem to affect sales at all. So we really don't know exactly how obsessed consumers are with these artificial dyes. Maybe some mixed messages throughout history.
Toby Howell
One way to get around it though is there is this healthy food movement that we're going through right now. And one thing that signals healthier foods is Muted colors. So you're seeing brands like PepsiCo has been working to create a different type of spicy ruffles. They have this simply brand where it's just a healthier brand in general. And so they are releasing this spicy chip, but it's a very muted color. So one that screams healthy. Two, you're getting around the artificial dye issue. So I think you may see some of these companies try to innovate their way out of it.
Neal Freyman
Of course, the flaming expectations.
Toby Howell
Right. Change expectations. Like this is a healthier snack. You're, you're going to get some spice, but you're going to get a healthier snack. It might be tough though to like flaming hot Cheetos. How?
Neal Freyman
Skittles.
Toby Howell
Yeah, they have to be those bright colors. Like we were talking. Can you imagine like a muted skittle? It just look like a breath mint at that point. So some food innovation will certainly happen as companies try to, you know, get out of using dyes in their supply chain. Remember Pokemon Go, the game that had you sprinting into traffic for the chance to throw a virtual pokeball at a rattata? Well, it just got bought by a Saudi Arabian company. Scopely, a mobile gaming giant owned by Saudi Arabia's Savvy Games just selled out three and a half billion dollars to Snag Pokemon Go and a handful of other apps from the games maker Niantic. That means Charmander, Pikachu and 100 million global players are officially in the Saudi portfolio. It's part of the country's massive gaming strategy, already holding stakes in Nintendo, EA and Activision and now adding Pokemon Go's billion dollar empire to its trophy case. Niantic, meanwhile, is pivoting to AI spinning out its geospatial mapping unit to develop what it calls a next gen map of the world built using images and location data captured by its players. However, as 404Media noted, Niantic and Scope, we have published six collective blog posts about the deal, none of which address what is going to happen to the location data of players of Pokemon Go's 20 million weekly active users. So, Neil, welcome to the new world of gaming where somehow Pikachu has found its way into the middle of a geopolitical rebrand and and a data privacy debate.
Neal Freyman
This is kind of an admission by Niantic that they couldn't really find another success story after Pokemon Go. Pokemon Go is estimated to have brought in $8 billion in revenue since launching in 2016. Last year was the second highest grossing mobile game. But beyond Pokemon Go, this company which spun out of Google in 2015, really hasn't been able to find another hit on their hands. So they're, you know, selling Pokemon Go and their other stable of games and pivoting to this geospatial a sector where they want to essentially create large language models, ChatGPT but for locations and geography. So it is kind of acknowledgment that, hey, we, we captured lightning in the bottle here, but we couldn't find the magic anywhere else. And so here you go, Saudi Arabia. You want to get into gaming's, why don't you take it off our hands?
Toby Howell
I mean, Pokemon Go though, is still a massive name in the gaming space. It's one of the highest grossing mobile games today, still has 30 million monthly payers. They spent more than $1 billion last year across its games business. It is definitely slightly smaller now. I still remember that crazy summer of, you know, 2015.
Neal Freyman
I wish we were doing the podcast then.
Toby Howell
It was just a truly. I remember sprinting down to a beach because the rumor was a blastoise was down there. I couldn't believe it. But it did attract 500 million players in its first year. So it absolutely was a phenomenon. But you are right, the 2020 kind of hurt its popularity as COVID lockdowns kept people inside their homes. The company has since canceled multiple project. It laid off 310 employees between 2022 and 2023. And so you're right. Scopely was like, hey, we'll definitely take this. Scopely also has another huge moneymaker in the name of Monopoly Go. It sounds like all you have to do is take a nice IP and add go to the end of it and you'll, you'll make $1 billion. That looks to be the strategy right now. So right now Scope is like, hey, we do want to get bigger in games. Let's take this, you know, limping title that still is. It makes a lot of money and let's, try to, you know, take over the games world.
Neal Freyman
And Saudi Arabia is absolutely taking over the gains. The games world, they've earmarked nearly $40 billion to build an industry there. Last summer, they hosted the esports world cup, handed out $60 million in prizes. And then in 2027, they're working with the international Olympic Committee to host the first ever Olympic esports game. So the center of the gaming universe is shifting to the Gulf.
Toby Howell
Got to warm those thumbs up, Neal. I'm going to make it to the Olympic games in esports. All right. What a first half of the show let's wait for the second half where we get Neil's numbers.
Neal Freyman
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Toby Howell
Virgin Voyages has won accolades for dang near everything, travel and leisure, and Conde Nast just voted them the world's best cruise for the second year in a row. Their food menus are award winning too. Not too surprising considering they were created by Michelin star chefs.
Neal Freyman
Have you seen their cabins? Some of them have a private terrace with a handwoven hammock you can relax on while you enjoy the view of the sea.
Toby Howell
Plus, this year they're going to new places like Iceland, the British Isles and San Juan.
Neal Freyman
See what voyages you could embark on this year@virgin voyages.com or contact your travel adviser. That's virgin voyages.com welcome to Neil's Numbers, the segment where I share three stats from the week's news that will get you as intoxicated as St. Patrick's Day. For my first number, y'all are clocking out way earlier from work than you used to. The average American workday now finishes up at 4:39pm according to a new analysis from Active Track. That is 36 minutes earlier than just two years ago, when the average workday concluded at 5:21pm the report shows how our work schedules are still shifting dramatically in the era of more flexible arrangements since the pandemic. Another interesting finding. Seasonality matters a lot in how and when we work. The analysis found that workers tend to put in longer hours in the months of August and December, which they suggested could be times when people feel the need to catch up after vacation or rush to hit year end targets. Toby 4:39pm that is plenty of time to sneak in nine holes before sunset.
Toby Howell
That is true, especially with daylight saving. I do think too though that the big takeaway from this report is that Overall productivity increased by 2% over that time as well. So people are clocking out earlier but getting more done. The report highlighted that employees engage in focused 24 minute spurts of productivity, which I think we can all kind of.
Neal Freyman
Relate the length of our podcast, right?
Toby Howell
It is, yeah, a focus burst of productivity right here. But I do think it's right. People aren't meant to just be locked in, you know, eight hours a day, 10 hours a day, all the way straight through. You ebb and flow, you ease in and out of productivity. So these little spurts of productivity are I think a good thing because we are seeing that productivity number go up overall even though minutes worked is going down.
Neal Freyman
Active track did say quote these are healthy numbers. And they also noted interestingly enough that weekend work is on the rise. So people are just spreading out their work over over seven days rather than five. For my next number, Drivers are getting fed up with all the whiz bang technology automakers are infusing into new vehicles. In a recent survey of new car buyers by strategic vision, just 56% said they had positive feelings about the intuitiveness of their cars controls, down from 79% a decade ago. Perceptions of new features like dashboard displays and screen interfaces plunged by a similar amount, according to the Wall Street Journal. Many complain that carmakers are trying to fix something that wasn't broken. Take the old door handle for instance. You might have thought we hit peak door handle. You pull a lever, the door opens. Great. Let's move on to innovating other things. But no. Now many EV makers are equipping handles with automation and sensors that sometimes don't work in the cold weather, and that's been a really frustrating experience. Last year, owners of battery electric vehicles reported door handles being difficult to use at a rate of 3.1 problems per 100 cars, up from just 0.2 five years earlier, according to J.D. power. As one Volkswagen owner told the Wall Street Journal, just give me a normal door handle.
Toby Howell
Yeah, that seems to be the rallying cry right now for sure. This Wall Street Journal documented the poor story of a guy who owned an electric car. First of all, he tried to turn his car on from inside the house. But the app wasn't working. It was a cold day. So he went outside to try to do it manually. Then the door handle was broken because it was too cold. So it is just this ridiculous thing where we innovated door handles to the point where they were obviously a problem. Free experience. Everyone knew that a door handle just worked as a door handle. Suddenly we put too many sensors in them. They pop out when you approach a vehicle. And we created a problem where there wasn't one. So that is just perfectly emblematic of the fact that cars are turning into a computer. I mean, we just heard Trump say everything is computer when he stepped inside a Tesla. And it is emblematic of what's happening of the entire auto industry right now, specifically with door handles.
Neal Freyman
For my final number, the largest conveyor belt in America is now in operation. No, it's not a new addition to the Wonka factory. It's a belt used by an oil fields company to transport millions of tons of sand used for hydraulic fracturing. Known as the Dune Express, the conveyor belt stretches 42 miles from the tiny town of Kermit, Texas all the way into New Mexico. That's longer than the width of Rhode Island. Atlas Energy Solutions came up with the idea a few years ago after realizing that hauling mountains of sand across the Permian Basin using massive trucks was inefficient and often dangerous for everyone on the roads. So they decided to create an alternative highway alongside the one used for cars. A conveyor belt that looks like a really boring roller coaster. Schlepping sand across the desert at 10 miles per hour. Why do you need so much sand for oil drilling? Well, fracking requires liquid to be pumped into the ground at very high pressures to create holes and release. Oil companies use sand to make sure the holes don't close in on themselves while they're being pounded with water, oil and gas. Toby, what in the Lisa and algae is this monstrosity?
Toby Howell
It is a really long conveyor belt. It's also a very risky investment because this thing costs $400 million to make. And it's obviously one of those things that there's not a lot of precedent about how to make a conveyor belt that stretches that many miles. But it does seem like it is helping with the traffic issue that was the big thing. They didn't want these huge laden down trucks on highways that are just kind of a danger to everyone else along the highway. But the ironic thing is that during its miles long journey, the sand is actually sold and then sent to fracking companies. How do they do that sort of last mile delivery? They loaded onto trucks and, you know, deliver it to the fracking company. So it is a bit ironic that they created this huge $400 million thing only to still load it up in trucks to send it the last mile. But it does, you know, save some of those traffic issues.
Neal Freyman
And I said, yeah. And I said, it's the world, the longest conveyor belt in the United States. It is, in fact, not the longest conveyor belt in the world at 61 miles. There is a conveyor belt in Western Sahara on the northwest coast of Africa that carries phosphorus from a mine. And that is the longest conveyor belt in the world.
Toby Howell
That is a long one. I just want one person to, you know, Maybe it's a YouTuber to get on it and make the whole trip and just tell me what it's like to be on a, you know, 61 or 41 mile conveyor belt.
Neal Freyman
I think I know a particular YouTuber, YouTuber who might take you up on that challenge. Okay, let's sprint to the finish with some final headlines. One day after President Trump imposed 25% tariffs on steel and aluminum against all the US trading partners, the response was swift. Canada immediately slapped retaliatory tariffs on steel and aluminum and said a levy on an additional $30 billion in U.S. goods, including computers and sports equipment, would go into effect today. Meanwhile, the EU also announced tit for tat tariffs on the same amount of American goods and targeted iconic American industries such as whiskey, jeans and motorcycles, with up to 50% tariffs that go into effect next month. Jack Daniels maker Brown forman stock fell 5% on the day, while Harley Davidson ticker hog dropped nearly 6%. If it wasn't clear before, the trade war is officially on, it is on.
Toby Howell
And it's also a replay of the last time Trump was in office. When Trump imposed tariffs on the EU during his first term, what did they do? They targeted the same iconic American industries and companies like bourbon from Kentucky, like Harvey Davidson motorcycles, and like Levi's jeans. So you are seeing it run literally the same playbook back, targeting these things that are very emblematic of America, even if they maybe are not, you know, super crucial to the economy at large.
Neal Freyman
Yes. In a similar vein, EU also targeted soybeans because they're grown in Louisiana, which is the home state of House of Representatives Speaker Mike Johnson. So these are very symbolic in nature.
Toby Howell
Someone call Will Smith because Irobot is tanking. Shares of the Roomba maker fell more than 30% yesterday after the company said there is, quote, substantial doubt about its ability to stay in business. Since Amazon pulled out of its plans to buy the company for $1.7 billion last year, things have gone from bad to worse. The company laid off 51% of its staff at the end of 2023 and its financial outlook has gotten snagged on a sock, with fourth quarter revenue falling 44% year over year. Still, it's throwing Hail Marys to stay in the game. On Tuesday, the company launched eight new roombas, though it said in a statement that there can be no assurance that the new products launch will be successful. Neil can you imagine a world without roombascal?
Neal Freyman
Everything's collapsed since this Amazon deal fell apart. I mean, $1.7 billion for this company sounds like a ton now, but it was going to happen until regulators in Europe and the United States said that Amazon should not be able to buy this robot vacuum because of competition concerns. And also there were concerns that it would get all this data on your home when the Rubik comes around. And you know Amazon already has enough data as it is. They don't need any more. So after regulators block this deal, this company has absolutely collapsed and in the next 12 months it might not exist anymore. Finally, a scandal is engulfing the sport of ski jumping after two Norwegian gold medalists were accused of doctoring their suits in order to fly farther in the air. Marius Lindvik and Johann Andre Forfang were disqualified from a World cup event that starts today after officials found added material in the crotch area of their ski suits following a whistleblower tip. It was extremely high level manipulation, the race director said, adding that Norway's alleged scheme was absolutely by far the worst he's seen in his five years on the job. Toby Norway has developed a reputation for having top level integrity in sports. Now it's staring down crotch gate.
Toby Howell
Now I have to say it. I got to see these single crotch stitches. Have I been walking around with non aerodynamic crotchal regions all this year? Think of all the wind resistance that I could have been avoiding. I do feel bad for the athletes though who apparently didn't know anything about the modified suits. But I do love me a little deflate gaze esque drama hitting the ski jumping world. I never knew a single stitch in one particular region the body could increase aerodynamics that much.
Neal Freyman
Let's wrap it up there after you said something about crotches. Thanks so much for starting your morning with us and have an awesome Thursday. For any questions, comments or feedback, send an email to Morning Brew daily at Morning Broadcom. And if you're enjoying the show, share it with a friend, family member or co worker. Toby who should everyone listening share with Today I want you to share the.
Toby Howell
Podcast with someone who didn't know we had a YouTube channel. It's a lot of you. Over 10 times as many people listen to me as watch it. But come check out our smiling faces. Maybe leave a comment, perhaps even a like and subscribe. We'll see. See you there.
Neal Freyman
Let's roll the credits. Emily Milian is our executive producer. Raymond Lu is our producer. Olivia Graham and Olivia Lake our associate producers. Eachena Wagu is our technical director. Scoop Star Daris is on audio, hair and makeup is riding the Dune Express. Devin Emery is our chief content officer and our show is a production of Morning Brew.
Toby Howell
Great show, Danielle. Let's run it back tomorrow.
Morning Brew Daily Podcast Summary
Episode: Inflation Cools More Than Expected & 'Pokémon GO' Heads to Saudi Arabia
Release Date: March 13, 2025
Timestamp: [00:36] - [01:28]
Neal Freyman and Toby Howell kick off the episode by delving into the intriguing career of Vanna White, co-host of Wheel of Fortune. Neal questions whether White holds "the best job in the world," highlighting that she works only 34 days a year, enjoying 331 days off. Despite the limited workdays, White has successfully negotiated a substantial pay increase, elevating her annual salary from $3 million.
Neal reflects, “It does sound pretty intense. The show films six episodes per day, which requires six wardrobe changes. Come on, feel bad for me?” ([00:49])
Toby contemplates the value White brings, noting, “Fortune generated $100 million in advertising revenue last year, so I think she's definitely worth it.” He compares her compensation to Kevin Schmidt, a worker who climbs a 1,500-foot TV tower twice a year for $20,000 per climb, debating which role offers a better dollar per minute worked. The discussion underscores the diverse nature of high-paying jobs and the unique demands associated with them.
Timestamp: [04:22] - [05:50]
The hosts transition to economic news, discussing the latest Consumer Price Index (CPI) figures. February saw a 0.2% increase in CPI—the slowest since October—bringing annual inflation down to 2.8%, exceeding expectations. Key contributors to this slowdown include:
Neal remarks, “With inflation coming down or inflation growing at its slowest pace in four months, that steady, bumpy decline that we've been seeing over the past few years is still continuing apace.” ([04:57])
However, caution is advised as President Trump’s tariffs on steel, aluminum, and Chinese goods may reignite inflation by increasing costs across various sectors, from clothing to automobiles. Wall Street’s lukewarm reaction—stock markets briefly rallied before stabilizing—reflects uncertainty.
Toby adds, “Nearly half of the advance of the overall CPI was due to shelter costs, but those costs actually still decelerated from the prior month.” ([04:57])
Neal cites Federal Reserve Chairman Jerome Powell’s stance, emphasizing the need for sustainable inflation reduction. Despite the positive CPI report, the Fed is expected to maintain steady interest rates in their upcoming meeting, anticipating further data before making policy shifts.
Timestamp: [05:50] - [10:33]
In a significant regulatory development, CEOs of major food companies received an ultimatum from Health and Human Services Secretary Robert F. Kennedy Jr.: eliminate artificial dyes from their products by the end of President Trump's term or face government intervention. Companies such as General Mills, Pepsi, Kraft, and Heinz were present at the meeting.
Neal summarizes, “RFK has called out food companies for, quote, poisoning Americans.” ([07:40])
The discussion highlights the FDA's actions—revoking authorization of artificial dye Red No. 3 due to potential cancer links—and state-level initiatives. California and West Virginia have led the charge, with the latter recently passing a comprehensive ban on multiple food dyes, garnering bipartisan support.
Toby explores the implications for the food industry, suggesting companies might innovate by adopting muted colors to signal healthier products. He cites examples like PepsiCo’s Simply brand, which is launching spicy chips with subdued hues to navigate the artificial dye restrictions while catering to health-conscious consumers.
Neal reflects on consumer behavior, noting mixed responses to artificial dye removal. General Mills experienced a drop in cereal sales after removing dyes from Trix, later reinstating them due to consumer preference. In contrast, Kraft Heinz successfully removed dyes from their Mac and Cheese without affecting sales, indicating variability in consumer reactions.
Timestamp: [10:33] - [14:35]
The podcast shifts focus to the gaming industry, announcing that Niantic, the creator of Pokémon GO, has sold the game along with several other apps to Scopely, a Saudi Arabian mobile gaming giant, for $3.5 billion. This transaction signifies Saudi Arabia’s:
Neal observes, “This is kind of an admission by Niantic that they couldn't really find another success story after Pokémon GO.” ([11:59])
Despite Pokémon GO's enduring popularity with 100 million global players, Niantic has struggled to replicate its initial success. The sale includes Pokémon GO's robust revenue generation—$8 billion since 2016—but raises concerns about the privacy of player location data, as no details were provided in the deal’s announcements.
Toby highlights Saudi Arabia’s ambitious gaming strategy, including hosting the Esports World Cup with $60 million in prizes and collaborating with the International Olympic Committee to integrate esports into the traditional Olympic framework by 2027. This move positions the Gulf region as a new hub for the gaming universe.
Neal concludes, “Saudi Arabia is absolutely taking over the gains. The games world, they've earmarked nearly $40 billion to build an industry there.” ([14:00])
Timestamp: [16:03] - [22:21]
Neal presents a segment titled "Neil's Numbers," sharing three notable statistics:
Average Workday Shortens: The typical American workday now ends at 4:39 PM, 36 minutes earlier than two years ago. This shift is attributed to more flexible work arrangements post-pandemic.
Neal states, “Workers tend to put in longer hours in the months of August and December...” ([17:07])
Productivity Up: Despite fewer hours worked, overall productivity increased by 2%, driven by focused 24-minute spurts of work.
Toby adds, “Employees engage in focused 24 minute spurts of productivity...” ([17:27])
Weekend Work on the Rise: More workers are spreading their work over seven days instead of the traditional five, indicating a shift in work-life balance dynamics.
Neal notes, “Weekend work is on the rise...” ([17:50])
The conversation shifts to automotive frustrations, specifically the growing dissatisfaction among drivers with complex car controls. A recent survey by Strategic Vision reveals:
Neal emphasizes, “Many complain that carmakers are trying to fix something that wasn't broken.” ([18:00])
A prominent issue is the introduction of automated door handles in electric vehicles (EVs), which have proven unreliable in cold weather. JD Power data shows a rise in door handle problems from 0.2 per 100 cars five years ago to 3.1 last year.
Toby illustrates, “Everyone knew that a door handle just worked as a door handle. Suddenly we put too many sensors in them...” ([19:55])
Neal shares an astonishing fact about the Dune Express, the longest conveyor belt in the United States, stretching 42 miles from Kermit, Texas, to New Mexico. Valued at $400 million, this belt transports millions of tons of sand used in hydraulic fracturing.
Neal explains, “Fracking requires liquid to be pumped into the ground at very high pressures to create holes and release oil...” ([20:00])
Despite its innovation, Toby points out the irony that the sand is ultimately loaded onto trucks for final delivery to fracking sites, adding complexity to the system.
Timestamp: [22:21] - [27:08]
Following President Trump’s imposition of 25% tariffs on steel and aluminum imports, retaliatory measures have surged:
Neal notes, “The trade war is officially on, it is on.” ([23:12])
This tit-for-tat escalation mirrors Trump’s earlier trade strategies, targeting symbolic American industries rather than broader economic sectors.
Shares of iRobot, maker of the Roomba, plummeted over 30% following doubts about its business viability after Amazon withdrew its $1.7 billion acquisition bid. The company has:
Neal summarizes, “After regulators block this deal, this company has absolutely collapsed...” ([23:50])
Toby laments the potential disappearance of Roombas, questioning the future of autonomous vacuum technology.
A major scandal has erupted in Norwegian ski jumping: Gold medalists Marius Lindvik and Johann Andre Forfang were disqualified for modifying their ski suits to enhance aerodynamics. Officials discovered added material in the crotch area, citing it as the most egregious manipulation encountered in five years.
Neal highlights the severity, stating, “Norway's alleged scheme was absolutely by far the worst he's seen in his five years on the job.” ([25:33])
Toby humorously reflects on the scandal, musing about the unnoticed impact of subtle suit modifications on performance.
Neal and Toby wrap up the episode by encouraging listeners to engage with their content on YouTube and share the podcast with others. The episode provides a comprehensive overview of significant economic, regulatory, and cultural developments, blending insightful analysis with engaging commentary.
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