
Trouble in paradise already? & International travel reaches pre-pandemic days
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Good Morning Brew Daily Show. I'm Neal Freyman.
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And I'm Toby Howell.
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Today, the founder of Silk Road is free after a presidential pardon. Why? Some are celebrating and others are alarmed.
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Then Elon Musk called BS on President Trump's first big tech investment. Trouble brewing in the White house. It's Thursday, January 23rd. Let's ride. Well, it is still freezing out. Not just in New York, but all over the country. Snow on Florida beach beaches, people ice skating down streets in New Orleans. Winter is here, Neil.
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Not only is winter here, we are also in peak hoodie season. Nothing compares with sub zero temperatures quite like a comfy, cozy sweatshirt.
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And rumor has it that if that sweatshirt has the letters MBD on it, it doubles the comfiness coefficient. Lucky for you, we still have a few Morning Brew Daily hoodies available for purchase in the morning Brew shop.
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To get your hands on one, just go to Shop Dot Morning Bukom, then click on Top Collections to find Morning Brew Daily. It's hard to miss. Then here's the biggest part. The hoodies are 50% off right now, so they're going to go fast.
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Supplies are limited and we're staring down at least a few more months of cold temps. So take out your phone, take out your laptop and head to shop.morning brew.com to get your hands on an MBD sweatshirt while they're still available. Still.
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Stay warm, people.
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Now, a word from our sponsor, Yahoo. Finance. Neil, have I ever told you about the first time I used Yahoo Finance?
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Somehow, even though we talk literally every day, you have not told me the story.
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It was my junior year of high school. We did a stock picking competition over the year where we would manage a virtual portfolio on Yahoo Finance.
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Okay, I take it back. You have indeed told me this story.
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Well, don't spoil it. Anyway, I tried to go the biotech route and looked for a company about to get approval for a new drug. Long story short, the drug did not get approved and I got dead last.
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But the moral of the story is that even when Toby was back in high school, Yahoo. Finance was a great resource for learning and studying financial markets.
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Exactly. The interface wasn't as polished in 2014 as it is now, but Yahoo has a long track record of arming the financially curious with the tools and knowledge you need to grow your investments, whether real or fake. Stock picking competition.
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And whether you're a 17 year old searching for under the radar biotech stocks or investing pro looking for an edge, head to yahoo.finance.com today.
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Yesterday we got some grade A gab from around the business world as everyone from Elon Musk to Jamie Dimon spoke their minds about Trump tariffs and TikTok. So for our top story today, we're going to pick some of the more notable quotes dropped by a cast of business characters as a jumping off point to talk about some news. Up first, Trump's cadre of billionaires are already fighting Real Housewives style. Elon Musk poured cold water on the Trump backed Stargate initiative announced this week that aims to invest $500 billion into AI infrastructure. They don't actually have the money, he wrote in reply to an OpenAI post on the announcement. SoftBank has well under $10 billion secured. I have that on good authority. Now Musk is not exactly a neutral party here. He has long had beef with Sam Altman and OpenAI after its for profit turn, with Musk later posting that Sam Altman is a swindler. But Neal going out and publicly undermining a big announcement from Trump is one of the first public displays of friction between these two.
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Yeah, I do want to underscore that because it's a big deal. Trump hauled in Masayoshi son, Sam Altman, Larry Ellison for this huge announcement that got a lot of press. We talked about it. It was $500 billion pledged. And then Elon Musk, one of his top advisors who helped him gain the presidency the next day, or actually the Same day was 11:35pm Goes out and calls BS on it. That is a big deal and we'll see how this plays out in the future. As you said, there is a background here and it seems to be a continuation of the long standing beef between Elon Musk and Sam Altman. Remember, they co founded Open Air together almost a decade ago and then they had this very dramatic falling out when Sam Altman wanted to make the the company turned it from a nonprofit to a for profit. Elon Musk didn't like that. So now he started a direct Open Air competitor called X AI. So now these two guys are going at it in industry and in politics. It's something to watch.
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It's something to watch. Elon doesn't have his hands in this particular pie, which is potentially why he is undermining the project in public. Or maybe they really don't have the money secured. We don't necessarily know at this point, but what we are seeing is what happens when you have a lot of billionaires in the henhouse. You're going to have these clashes, these public cashes too because Elon Musk owns X, which is where this exchange went down. One person, though, who is trying to remain above it all is Microsoft CEO Satya Nadella. He was asked by cnbc, what do you think about Elon posting this? What do you think about him saying that the funding is not there? And he told CNBC that I'm good for my $80 billion, which is not a sentence that a lot of people in the world can utter. But Satya Nadella can do that. So it does look like there is some friction. Even the fact that saitonadella doesn't even know what's going on with this other funding stream shows that maybe Stargate isn't off to the best start. But he did say that $80 billion will be funneled into this project from.
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Microsoft, and maybe they don't have the cash on hand. I guess I'm defending Stargate now, but they, they could raise money, right? They could finance it to get. To get the amount of money that they need. Data centers. So definitely a big story we're going for because, you know, data centers and AI infrastructure, yes, it's the subject of some cat catfights between billionaires, but also it's a big deal for the future of technology, future of US national security. So building these data centers is important. Who builds them? It's obviously subject of a fight right now. Our next quote is get over it. That's the tough love delivered by JPMorgan CEO Jamie Dimon telling people who are worried about Trump's tariff threats to make like the 2003 Red Sox and cowboy up. In an interview at the World Economic Forum in Davos, the head of America's largest bank said, if tariffs are, quote, a little inflationary, but it's good for national security, so be it. National security trumps a little more inflation. It is a rare endorsement of Trump's tariffs than we've been accustomed to from the C Suite, who largely warned that tariffs would, yes, be inflationary and cause major disruptions to trade flows and the economy. Since taking office, Trump has announced plans to slap tariffs on the U.S. three largest trading partners, Canada, Mexico and China, on February 1. A week from now, he's readying 25% tariffs on Canada and Mexico and an additional 10% on China, countries that account for more than a third of the goods and services imported and exported by the US and support tens of millions of jobs. But the question remains, until they do go into effect, whether it's a negotiating ploy to extract concessions or a real threat. At least in Diamond's case he's not losing sleep at night either way.
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Right. The fear from a lot of economists have been that these duties, these tariffs, could spark this global trade war and they could reignite inflation domestically. That's always been what we've been hearing. But they could also protect American interests, which is now the tune that Jamie Dimon is singing. He is saying that national security trumps a little bit of inflation. He also went on to say that he just views tariffs as a tool. That is it. They're not. They can be a weapon depending on how you use them. They can be a tool depending how you use them. So he was just trying to provide a little bit of perspective on these things because tariffs has become such a boogeyman in a lot of these conversations. Another quote that came out of Davos as well was the director general of the World Trade Organization said, can we chill? When he was talking to CNN reporter in Davos. I think we shouldn't get overexcited about the issue of tariffs. Let's wait and see what actually gets done. So we're seeing a little bit of different tunes sung as we are kind of approaching the date when these things come into effect.
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It would be a big deal. I'm sorry, Jamie Dimon and World Trade Center, World Trade Organization guy. This is, this is a huge deal, you know, 25% tariff on things going over the border from the United States to Mexico, United States to Canada. I mean, just to put things in perspective, a car that is sold on a lot here in the United States, maybe you just go buy a car. Just imagine that probably went across the border eight times, you know, with getting various parts on its way to being assembled. So if that is subject to a 25% duty every single time it goes across the border to become a little more of a car, then that raises prices everywhere. So I think maybe these CEOs are trying to get a little bit, you know, like a birdie in Trump's ear and saying, you know, you can apply tariffs, but just be strategic about it and don't do this broad, you know, broad swath of tariffs and hit everything universally, because that would seriously knock the economy. One item that is very much in focus is crude oil. 60% of all of America's crude oil imports come from Canada. If that gets taxed, then you're going to see gasoline prices go up. And those are the main factor in inflate that bout of inflation we had last month. So we'll see what happens. The countdown is on February 1st. Here we go.
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Our last quote comes from a place of optimism and that is, it's in everybody's interests. And I'll pause a bit to let you guess what that is in reference to. Yep, you probably got it. It's about saving TikTok. Speaking at Davos, Bill Ford, an American venture capitalist who's on ByteDance's board, is optimistic that the stars will align in a deal will get done to secure TikTok's long term future in the United States. Ford went on to say that the Chinese government, the US government and ByteDance would likely meet by the end of this week to begin negotiations as time starts taking on the 75 days Trump's executive order gave the app to work out a change of control deal. Neil. Inevitably, one's mind wanders to potential buyers once again. And Trump has tabbed Elon Musk and Larry Ellison as two potential options. He wants to get involved while a joint bid from Kevin O'Leary of Shark Tank fame has also been floating around. What do you think, though about this board member's optimism about this potential TikTok deal?
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I mean, he obviously has more insight into. I do, but it seems well placed. The Chinese government has said that it might take off, take a more hands off approach to selling Tik Tok or to have ByteDance sell TikTok than previously thought. We thought that the Chinese government would block a deal and earlier this week it signaled that it would. It would be a little more laissez faire about it. Yeah, we have some interesting potential buyers here. Frank McCourt, who's a billionaire, former owner of the Dodgers, Kevin O'Leary, I don't think, I don't think Mr. Wonderful is in the running. I'm sorry, Mr. Wonderful to, you know, one, one company that I think has a pretty good chance here is Oracle. It already works with TikTok hosting its servers here in the United States. Larry Ellison, who is the founder and CEO, has a good relationship with, with President Trump. So I think Oracle is absolutely in the running. They already have a relationship. And then Elon Musk is also high on the list of people who would be able to buy TikTok should it sell because Elon Musk is favored by the Chinese government. He's gone to Shanghai, he's built a plant there. He has a good relationship. They sell Teslas in China, so that might be another name to watch here.
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Moving on, Ross Ulbricht, the mastermind behind the infamous Silk Road that let you buy everything from hard drugs to fake IDs using cryptocurrency has been granted a full pardon by President Donald Trump. It ends an over decade long imprisonment tied to him operating the Dark Web's Amazon, a marketplace that at its Peak saw $200 million worth of illicit activity flow through the site. Ulbricht was jailed in 2015 for creating and running the Silk Road, which resulted in two life sentences plus 40 years on charges including drug trafficking and money laundering. But freeing Ulbricht became a campaign talking point for Trump as he aimed to curry favor with the crypto and libertarian crowds who always champion Ulbricht for his role in demonstrating Bitcoin's effectiveness as a currency that can operate outside of the traditional finance system. Neil Ulbricht has been a martyr in these communities for his advocacy for privacy and free market principles. The editor of Bitcoin magazine told the New York Times that it's hard to argue Ulbricht isn't the most successful, influential entrepreneur of the early Bitcoin era. And now that entrepreneur and that martyr is finally free.
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Yeah, let's dig into his philosophy. Apparently in college he did developed an interest in libertarian economic theory, which advocates for criminal justice reform. Basically just get government away from the free market as possible. No intervention, let people exchange good and services that they want to. In a letter to the trial judge in 2015, he said he didn't create Silk Road for financial gain, but he believed at the time that people should have the right to buy and sell whatever they wanted so long as they weren't hurting anyone else. The problem with that is in this case that they brought before the jury was that they said people were hurt by Silk Road. There was, you know, heroin and other illicit hard drugs being exchanged in the millions of dollars. They linked six deaths to Silk Road. And then in another instance, they also accused Ulbricht of doing some murders for a hire. And they didn't. That wasn't a part of the case because they couldn't find any evidence, but that was a part of the conversation that he literally hired Hitman to kill people who he thought were going after him. So there was some, you know, while he wasn't prosecuted for that, wasn't charged for that, there was, you know, there was this undercurrent of violence that pervaded the whole thing.
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Yeah. The judge who eventually sentenced ulbricht back in 2015, she did not view him as this figure that was, you know, fighting for digital libertarianism. Instead, he said, she said that he was no better a person than any other drug dealer and passed down this pretty extreme sentence. You know, life in prison two times life without prison, without parole, which ended up having, she was trying to discourage people from following in his footsteps. It almost had the exact opposite effect. It turned him into a martyr. It turned him into this figurehead that the crypto community and the libertarian community kind of put on a pedestal. And it became a very good political, you know, talking point for Trump, who wanted to court the crypto community. He wanted to court the libertarian community. So he kind of took it and ran with it. He said in one quote at a libertine Libertarian Party convention back in May when he's still campaigning, if you vote for me on day one, I will commute the sentence of Ross Ulbricht. So he became kind of a political, you know, instrument for Trump to use. And he, he followed through on his word. And soon after he was elected, he did in fact commute Ulbricht sentence. All right, Neil, I've been waiting all week. I've been waiting months for this one. Actually, it is Neil's numbers.
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Welcome to Neil's Numbers, the segment where I share three stats from the week's news that will make you more of a know it all than Hermione. For my first number, are Americans learning how to relax and take off work? Possibly. According to a new Labor Department report, the number of people in the US who took vacations in December reached an all time high going back to 1976. And you weren't waiting for the holidays either. About 6.3 million clocked out of work the first week of December, which was a 20% increase from the same period the year before. Planes, trains, automobiles, you name the mode of transportation, Americans were using it. A record 107 million traveled by car over the holidays. Airports were their busiest ever and cruise bookings at US ports were up 37% from a year ago. A number of reasons could explain this vacation frenzy. The Washington Post explained more states like Illinois, Nevada have recently begun requiring paid leave for all workers. Then there's the fact that more workers are sticking around at their jobs instead of hopping company to company like during COVID That means they might have banked more vacation time or simply burned out with what they've been doing and needed some R and R. Look at us.
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Taking some vacation days. Good job everyone for taking some time off. Also, it's justice for anyone who swears the security lines have been getting longer in that hotels you have to book further and further advance. People really are traveling more. And if you zoom out to not just America, but the world level to the UN's World World Trade Organization released its 2024 year in review data and found that the tourism industry is 100% back. Actually, I should say it's 99% back because 99% of the number of people who traveled in 2019 traveled this year. So that adds up to about 1.4 billion people traveling internationally. And Europe was a very popular destination.
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Europe was the most popular destination with 747 million tourists in 2015. 24. The number one country that was visited last year should come as no surprise. I'll give you a second to think about it. That would be France, right? We had a lot of big events in France last year. 2024 Summer Olympics, the reopening of the Notre Dame Cathedral, the 80th anniversary of D Day in Normandy. So people were pretty hype about those events. And then in second place was Spain with 98 million tourists, just 2 million short of France.
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That's crazy too because remember how ant tourists Spain was or anti tourists? The headlines coming out of Spain were because remember residents of Barcelona were shooting water pistols at tourists saying that they didn't want them in their city anymore. And I don't blame them too because I mean they got 98 million visitors. The Paris had the dang Olympics and only beat it by 2 million. So a lot of people are coming to these European countries and if you're.
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Looking for some under the radar destinations, these were the countries that saw a really big spike. Qatar experienced 137% increase in tourism as a really big and you know, global airport. Qatar Airways is the top airline in the world. Some other countries that saw a surge. Dominican Republic. Hey, I think I went to Punta Cana, Kuwait, Albania and El Salvador. So there you got some ideas and I hope you are going to stop this podcast. Not right now, after we're done and then go book your next vacation. My second number concerns a scandal engulfing Indian politics, social media and big wig economists. The national freakout is about taxes on popcorn. According to the Wall Street Journal, last month the government ruled that popcorn should be subject to a three tiered tax system with different rates for different types of popcorn. Caramel popcorn. You're going to be taxed at 18%. Essentially a luxury good popcorn packaged in plastic. 12% tax rate. If it's sold loose, it'll only be taxed at 5%. The order got people riled up and confused. Why have such a complex system for taxing popcorn? I mean we know popcorn contains multitudes, but is this breakdown completely necessary when the Finance minister tried to clarify how it all worked. She only invited more criticism. I want to explain the whole background of the popcorn taxes to you. Salted popcorn, caramelized popcorn, plain popcorn. She said. When it comes to popcorn's tax treatment, as long as it's salty, whether it is with salt, spice, tangy chili powder, that's all 5%, but when it has added caramelized sugar, it is no longer salty. Got it. Got it.
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That was my favorite part, is that this finance minister tried to explain it, tried to clarify, and then just uttered a sentence that absolutely provided no clarification whatsoever. Just basically listed out the different types of popcorn once more. But yes, this whole fight is emblematic of something that's been going on in India for a while now. They have been desperately trying to cut some red tape because it has this kind of reputation as being notoriously hard to do business in because of just how big it is and how many different regions and sectors have different tax rules. In 2017, they tried to pass this tax reform called the Goods and Services tax that aimed to simplify their tax code. The backers wanted just two tax rates. Just simplify everything. It ended up having over six, over a half dozen, and didn't necessarily do what it promised to do. And I think it's all come to a head in this popcorn tax that is emblematic of so much else that is wrong with their tax system.
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Okay, all tax rates being equal for popcorn, which popcorn are you going for? I mean, sweet, salty cow corn.
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I'm definitely going. You can't eat too much of the sweet popcorn, though. That I do think that should be taxed the highest because that just has that luxury feel to it. So I'm going to just go with that normal, salty movie theater popcorn for my final number.
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Any Kidz Bop fans out there? I know I was one many moons ago. Well, if you can believe it, the franchise just put out its 50th album with tracks including Espresso by Sabrina Carpenter and Chapel Roan's Hot to Go. If you are not familiar with Kidz Bop, it's a group of teens who cover popular music but do it in a very happy way, for lack of a better word. As the New York Times reported, it was started in 2001 by two lawyers, and that's become a music behemoth with dozens of its albums having charted in the Billboard top 10, putting them in the same company as the Beatles and the Rolling Stones. Now, the funny part about kids bop, which I didn't realize as a kid Listening to them is that they sanitize some of the racier lyrics and songs to make them more rated G. So, for example, in Hot to Go, they revise the lyric, I could be the one or your new addiction to I could be the one or a new condition. And in Telephone by Lady Gaga, out in the club and I'm sipping that bub was changed to out in the club and I'm eating that grub. So true.
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Don't you love when you go to the club as a 12 year old and eat some grub there? But Kidz Bop is this behemoth. It has just been something that had remarkable staying powder. It does feel like a very early 2000 thing to be invented. But the fact that they're still churning out albums today shows that there's clearly a gap in the market. And that was something. It was founded by two lawyers in 2001 that they identified. They were like, all right, there's music for tiny babies. You know, it's just usually not even lyrics involved. Rafi maybe was something you.
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Rafi and lyrics.
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Yeah, that was. Rafi was. He produced Bangers, but that's more for like sub 5 year olds. And then you have normal music which maybe has some lyrics in there that you don't want your kids listening to. So there's this whole age group from like age 4 to age 12 that was missing music. And Kidz Bop slid in to fill that gap, which is why we're still Talking about Kidz Bop, 50 to this day.
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And the most famous alum of Kidz Bop, I have to say, which I didn't know Zendaya.
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That is a great factoid to bust out. The New York Times did this whole piece on Kidz Bop, their 50th album, and in there they put a picture of Zendaya in Kidz Bop and then a picture of her in Challengers. Like, wow, you couldn't have picked any other movie there. So it is showing, though, that these alumni have gone on to spread their wings and do bigger and better things. Now, let's sprint to the finish with a couple more headlines you may have missed up first, if you were scrolling Instagram and came across a surprise picture of President Trump or J.D. vance the other day. You weren't alone. Many Instagram and Facebook users reported confusion as to how posts from POTUS were popping up in their feeds. No, Zuck wasn't hacking into your phone and making you follow the new president. It was just part of the regular process of turning over the White House social Media accounts. The general policy that most social media platforms like X and Instagram have adopted is to hand over the POTUS VP and First lady handles to the new administration, but leave the follower counts untouched. So it is possible that four or eight years ago, you made the decision to click follow on potus, a decision present you may have forgotten, leading to some of that confusion.
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That's not the only gripe people have. They're saying that they're also unfollowing these accounts, but it's not going through. They're still following VP, FOTUs, POTUS, and they're still following them. And Metta did acknowledge that, actually, yes, that is a bug. That is something that they're working on. They're saying maybe just a lot of people are unfollowing them once they're realizing what's happening. So they're saying, yeah, just take some time. You eventually will be unfollowed if you do, if you do click that. Another thing that Metta is doing that you might see is you might see that, you know, these, these presidential VP accounts are being recommended to you. And that is because Metta reversed course recently and said, we're actually going to put more political content on people's feeds after saying for a few years that they wanted to reduce the number the amount of political content. So that is another reason why you might be recommended these accounts.
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Finally, soup lovers. If you've ever been sipping on some delicious broth and thought to yourself, wish this was harder, then, boy, does Progresso have the thing for you. The soup brand just unveiled soup drops, a cough drop shaped hard candy flavored like chicken noodle soup. If candy flavored like broth, savory veggies, soft egg noodles, and just a hint of parsley wasn't haunting enough to think about, just wait till you hear the tagline. Progresso cooked up soup drops. Soup you can suck on, Neal. Somehow the first batch Progresso drop sold out in under an hour. Who are these little soup freaks?
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If you want soup you can suck on, and that soup is traditional chicken noodle soup from Progresso, then they're actually doing drops every Thursday, which is today throughout the month of January, which I guess is National Soup Month. Obviously, we should have known that. But. But yeah. So you can, you can log on to the website. I'm sure they're going to go in a few minutes now because this got a ton of pressed soup you can suck on. Great tagline, but I don't know if I would suck on this.
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Absolutely. I would not Anything savory, anything soup flavor. That is not something I want in candy form. We were speaking too about what would be the worst flavor. I think we both came to the conclusion that anything cream based would be pretty bad. So like a clam chowder cream of mushroom. But did you come up with anything that you would want to actually try?
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Yeah, I do have one soup that I think would actually taste really good in hard candy form, and that is French onion.
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Oh, no, that's still just as savory. I don't want something too, you know, savory like that. There's too much bread, too much flavor in that.
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You only have one word to describe food and it's safe. I know. I think French onion would be good and I know that people are going to back me up on this. Ray had a good idea. He said, tom yum. Because there's that nice sour flavor and people are used to having hard candies that they that are sour and in that same vein, more acidic. You know that that type of. That type of food. Tomato soup and gazpacho could be okay, pretty tangy. And then I don't know about miso soup. I think it could be really good or really bad because we all love the umami. But do you want it in that particular form or it could be terrible. So I'm jury's out about tomato soup, but I stick with French onion. I think it'd be good.
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I'm still hung up on French onion. It just turns out I don't actually like French onions, which is so unbiased.
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Okay, let's wrap it up there. Thanks for starting your morning with us and have a wonderful Thursday week is flying by. For any questions, comments or feedback, send an email to Morning Brew daily at Morning Bukom. And if you're enjoying the show, a gentle nudge to share it with your friends, family and coworkers. For a less gentle nudge, here's Toby with a specific sharing idea.
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For inspiration, I want you to share the podcast with someone who could use their very, very own MBD sweatshirt. These things are comfy. Neil and I rock them all the time. So send it to your biggest MBD fan or send it to someone who's never listened to the podcast and say, hey, try a sweatshirt out too.
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Let's roll the credits. Emily Milian is our executive producer. Raymond Lu is our producer. Olivia Graham is our associate producer. Uchenawa Ogu is our technical director. Garrett Peck is on audio. No soup for you hair and makeup. Devin Emery is our chief content officer. Our show is a production of Morning Brew.
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Great show today, Neil. Let's run it back tomorrow.
Morning Brew Daily: Episode Summary – "Musk Doubts Trump’s AI Venture & International Travel is So Back"
Release Date: January 23, 2025
Hosts: Neal Freyman and Toby Howell
In this episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into a diverse array of topics ranging from high-stakes tech battles and international trade tensions to the resurgence of global travel and unexpected legislative changes. The discussion is both insightful and engaging, providing listeners with a comprehensive overview of current events impacting business, the economy, and societal trends.
The episode opens with a significant clash in the tech and political arenas. Elon Musk publicly criticized President Donald Trump’s ambitious Stargate initiative, which aims to invest $500 billion into artificial intelligence (AI) infrastructure.
Toby Howell highlights Musk’s skepticism: “They don't actually have the money, he wrote in reply to an OpenAI post on the announcement” (03:30).
Neal Freyman emphasizes the gravity of Musk’s move: “Elon Musk, one of his top advisors who helped him gain the presidency... goes out and calls BS on it. That is a big deal” (04:30).
The tension stems from Musk’s longstanding feud with Sam Altman, the co-founder of OpenAI, after Altman pivoted the company from a nonprofit to a for-profit model. Musk, now spearheading his own AI venture, X AI, finds himself at odds with Trump’s initiative, signaling potential industry and political friction.
Adding to the complexity, Microsoft CEO Satya Nadella remains cautiously optimistic, assuring that Microsoft is committed to the project despite uncertainties about funding (05:29).
Next, the hosts discuss JPMorgan CEO Jamie Dimon’s surprising support for President Trump’s proposed tariffs on major trading partners.
This stance diverges from the prevailing sentiment among corporate leaders, who typically warn against the inflationary and disruptive impacts of tariffs. Trump's plan includes 25% tariffs on Canada and Mexico and 10% on China, affecting over a third of U.S. trade and millions of jobs.
Toby Howell elaborates on the potential economic repercussions, likening the tariff's impact to dramatic price hikes in everyday goods like automobiles and gasoline (08:15). Additionally, a representative from the World Trade Organization urges caution, suggesting a wait-and-see approach before reacting to the impending tariff implementations.
The conversation shifts to the simmering saga surrounding TikTok’s status in the United States. Bill Ford, a venture capitalist on ByteDance’s board, expresses optimism about negotiating a deal to secure TikTok’s long-term presence in the U.S.
Potential buyers floated by President Trump include Elon Musk and Larry Ellison, with additional interest from figures like Kevin O'Leary. Neal and Toby discuss the feasibility of these negotiations, considering the geopolitical intricacies and existing relationships between these tech moguls and relevant governments.
A landmark moment covered in the episode is the presidential pardon of Ross Ulbricht, the founder of the infamous Silk Road marketplace.
The hosts recount Ulbricht’s history: convicted in 2015 for drug trafficking and money laundering, Ulbricht’s release was a strategic move by Trump to appeal to the crypto and libertarian communities (11:39).
Neal Freyman reflects on Ulbricht’s philosophical stance: “I did not create Silk Road for financial gain, but I believed... people should have the right to buy and sell whatever they wanted” (14:06).
Ulbricht’s case has long been a touchstone in debates over digital libertarianism, privacy, and the role of government in regulating free markets. His release not only marks the end of a decade-long imprisonment but also elevates him to martyr status within certain activist circles.
In the “Neil’s Numbers” segment, Neal shares three impactful statistics shaping the current landscape.
Record High: December saw the highest number of vacations since 1976, with 6.3 million Americans taking time off in the first week of December alone—a 20% increase from the previous year (15:25).
Global Tourism Rebounds: The World Trade Organization reports that international travel has nearly fully recovered, with 99% of pre-pandemic levels, totaling approximately 1.4 billion travelers worldwide.
Tax Controversy: India’s government instituted a three-tiered tax system on popcorn, categorizing it based on flavor and packaging: 18% for caramel popcorn in plastic, 12% for packaged popcorn, and 5% for loose popcorn (19:32).
Public Backlash: The convoluted tax structure has sparked confusion and criticism, highlighting ongoing challenges in India’s efforts to simplify its tax code as seen in the previous Goods and Services Tax reforms.
Milestone Achievement: The Kidz Bop franchise releases its 50th album, featuring sanitized covers of popular songs tailored for younger audiences.
Cultural Impact: From its inception in 2001 by two lawyers, Kidz Bop has maintained its relevance by filling a niche for age-appropriate music, ensuring its longevity in the competitive music industry.
Owners of Instagram and Facebook encountered unexpected posts from President Trump and J.D. Vance, leading to widespread confusion. This phenomenon arises from the protocols that transfer official White House social media accounts to new administrations while retaining follower counts. Meta acknowledges the issue as a bug, assuring users that unfollow actions will eventually correct the anomaly (23:11).
In a quirky product innovation, Progresso introduces Soup Drops—cough drop-shaped hard candies flavored like traditional chicken noodle soup. Despite their unique flavor profile, initial batches sold out within an hour, indicating consumer curiosity and demand (25:17). Hosts Neal and Toby humorously debate the viability of savoring soup in candy form, with suggestions ranging from French Onion to Tom Yum flavors.
The episode concludes with hosts Neal and Toby encouraging listeners to engage with the podcast by sharing it with friends and family, particularly highlighting the comfort and appeal of their branded Morning Brew Daily hoodies. They wrap up by acknowledging their production team and teasing the next day’s show.
Toby Howell on Musk’s Criticism:
“They don't actually have the money, he wrote in reply to an OpenAI post on the announcement.” (03:30)
Neal Freyman on the Impact of Musk’s Statement:
“Elon Musk, one of his top advisors who helped him gain the presidency... goes out and calls BS on it. That is a big deal.” (04:30)
Jamie Dimon on Tariffs:
“A little inflationary, but it's good for national security.” (07:16)
Bill Ford on TikTok Negotiations:
“The Chinese government, the US government and ByteDance would likely meet by the end of this week to begin negotiations.” (09:32)
Ross Ulbricht’s Philosophical Stance:
“I did not create Silk Road for financial gain, but I believed... people should have the right to buy and sell whatever they wanted.” (14:06)
This episode of Morning Brew Daily offers a nuanced exploration of pivotal issues affecting the intersection of technology, politics, and global economics. From the turbulence in AI investments to the complexities of international trade policies and the revival of global tourism, hosts Neal and Toby provide listeners with a thorough and engaging analysis of the events shaping our world today.
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Disclaimer: This summary is based on the transcript provided and aims to encapsulate the key discussions and insights presented in the episode.