
The big fight started with tech issues & emails show OpenAI had a rocky start
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Kyle Hagee
Hey Fidelity.
Toby Howell
Can I get a second opinion on stocks in the Fidelity app?
Kyle Hagee
With Fidelity, it's easy to get an outside opinion from independent experts in a single score. And then when you're ready, trade US stocks and ETFs with no commissions.
Toby Howell
That's right.
Kyle Hagee
I am always right.
Toby Howell
Investing involves risk, including risk of loss, sell order, assessment fee not included. A limited number of ETFs are subject to a transaction based service fee of $100. See full list@fidelity.com commissions Fidelity Brokerage Services LLC Member NYSE SIPC Good Morning Brew Daily Show. I'm Toby Howell.
Kyle Hagee
And I'm Kyle Hagee.
Toby Howell
Today, Netflix's foray into live sports broadcasting went about as shaky as Mike Tyson's jab.
Kyle Hagee
And the reason you haven't been getting as many robocalls.
Toby Howell
It's Monday, November 18th. Let's ride. Happy Monday everyone. Hope you are having a great start to your week. Tell you someone who isn't having a great Monday though. Spirit Airlines, the budget airline, officially filed for bankruptcy this morning after years of losses, a failed merger with JetBlue and shifting consumer preferences.
Kyle Hagee
Yeah, Spirit has not been having a good time lately. Not only was it dealing with like failing demand, a failed merger, but it also had an engine recall which had to ground a bunch of its planes earlier this year. And I think the final nail in the coffin was just post pandemic travel inflation. It couldn't find a way to get back to where it used to be. I'm actually quite sad about this because Spirit, like it, needs to exist just spiritually for America.
Toby Howell
Yeah, the last few years have just been a rough time for them. Spirit hasn't had a profit since 2019, lost more than $335 million in the first half of this year. So the writing was on the wall that said if you are eyeing cheap flights home for Thanksgiving, Spirit says it does expect to continue operating normally and letting customers book flights. I'm getting.
Kyle Hagee
I'm getting on my last Spirit.
Toby Howell
I know Spirit is down, but it is not quite out yet. Kyle. Now a word from our sponsor, Yahoo Finance. Kyle, the Purple Prince has once again made its return to mbd and what.
Kyle Hagee
A pleasure it is to have them back. I was actually using Yahoo Finance to prepare for the show today.
Toby Howell
Oh, to tell.
Kyle Hagee
Well, it's really the only place on the Internet that you can go for both real time market data and trusted news. So if you want a holistic picture of how a Treasury appointment is affecting the market or how investors are reacting to an earnings call, Yahoo Finance is the only place to go.
Toby Howell
I like to think of it as the secret weapon of the informed investor. A shining purple light in a sea of darkness. And really one of our go to sources for bringing you all this show every morning. It is our Purple Prince.
Kyle Hagee
And to check out the Purple Prince yourself, head to yahoo.finance.com that's yahoo finance.com.
Toby Howell
Well, Kyle, turns out putting a 58 year old in a boxing ring with someone less than half his age doesn't lead to very compelling television. The much Hyped Mike Tyson vs. Jake Paul fight put on by Netflix was mostly a snooze fest that gave fans very little to cheer about. But the streamers foray into the fight game did bring in huge viewership numbers. Netflix announced that 60 million households tuned in to watch Paul and Tyson slug it out for the main event, while 50 million watched the co main event between Amanda Serrano and Katie Taylor, which actually made it the most viewed women's sporting event in US History. But while the Gotti numbers were nice, there were some annoying technical blunders along the way. And I'm not just talking about Iron Mike's clumsy footwork.
Kyle Hagee
Yeah, hashtag Netflix crash, which if you're Netflix, you don't want that trending. It did start trending on X on Friday, and Down Detector received more than 500,000 reports that Netflix was having issues. Obviously a ton of people wanted to watch this and they're having some issues. Jake Paul, the marketing, legitimately the marketing master he is. Somehow he took the opportunity to brag that we, quote, crashed the site in an interview after beating Tyson. What will likely have Netflix execs kind of sweating bullets right now is this fight was a dry run for Netflix. Christmas Day they're going to broadcast NFL games and the NFL. If there are streaming issues, they're going to get a lot more than 500,000 reports on down Detector. So it was a smashing success for Netflix in some regards, but also maybe a failure or something they need to check before Christmas in other regards.
Toby Howell
Right. It was a cultural moment, so in that sense it was a success. At one point, you know, Mike Tyson's bare bottom was shown in the locker room by Netflix. That turned into a meme, but it also showed this event showed that Netflix is certainly working out the kinks. A lot of people were just tweeting out, is it my Internet or is this stream just buffering a lot? So it made headlines in that way too. But let's take a step back here and realize just how big 60 million viewers 60 million households is the 2023 NFL regular season averaged 17.9 million viewers per game. The most watched regular season game was the Cowboys versus Giants on Thanksgiving that only got 42 million viewers. So we're talking bigger than the biggest NFL game last year outside of the Super Bowl. So it is truly a big number. I was reading around though and some people in the industry were asking some questions about how that number was calculated. Did Netflix treat each individual effort to reload the stream as a new watch? Because you know, a lot of people are pressing that refresh button. So maybe there isn't great apples to apples viewership numbers because these are self reported numbers. But still regardless, it is a massive, massive number.
Kyle Hagee
Yeah, I mean there was a January playoff game a year ago. Kansas City Chiefs vs. Miami Dolphins are a few years ago and that drew 23 million viewers and obviously that was streamed on. It was on stream on Peacock. So they could handle the bandwidth of 23 million users. Just to talk about the scale of Netflix, there's 280 million subscribers and in more than 190 countries. So I think the Christmas games could see more than what Jake Paul and Mike Tyson had. And if it's more like Netflix is probably getting to work right now making sure the stream doesn't go down. Also apparently this morning breaking news, Beyonce is playing the halftime show at one of these games. So you probably double the number of screamers that are going to look into this game now. So Netflix is definitely needs to get ready for these Christmas Day games because.
Toby Howell
The reason why we're talking about this fight, even though it was a little bit of a snooze fest, is that it is kind of a signal of Netflix intention to push into these mega events, they've streamed some smaller live events before. Remember they had stand up specials from Chris Rock. They this golf tournament they called the Netflix Cup. They also tried to stream the Love is Blind season four reunion special. Never forget Love is Blind fans know that that did not go well at all and that was obviously much much. It was chump change in viewership compared to this Jake Paul Mike Tyson fight. But we've mentioned the NFL games on Christmas Day coming up so that will be a big test. But then another big test too is Netflix signed WWE flagship show Raw. It's coming to Netflix in January. So they definitely have to get their ducks in the row here because you can't be having these buffering issues for these future mega events.
Kyle Hagee
Yeah, I think it's such a great point. Like not only is the Christmas Day game going to be important for Netflix to go off without a hitch. But it's also Netflix needs to be viewed as credible by some of these larger sports leagues because I think if they can crack the code on live sports, it just unlocks so much value for this company because that is the one thing people are still buying cable packages for. If they can crack the code, then they're looking really good for future growth and using this as like top of funnel to get more permanent subscribers.
Toby Howell
Yeah, it's a great point. I think the final takeaway here is that the boxing match between a 27 year old and a 58 year old went pretty much exactly how you would expect a 27 year old against a 58. Let's go. And that maybe Netflix isn't ready for the big time. There is some cabinet drama going down in recent days over who should be Donald Trump's Treasury Secretary. And like Kyle's high school love life, it has spilled over into a messy public spat. The two main men up for consideration are billionaire Howard Lutnick, who Trump has already relied on as his chief headhunter to help him fill positions in his administration, and the former money manager for George Soros, Scott Bessen, who seemed to be the favorite in the clubhouse until Elon Musk and RFK Jr. Started to weigh in. The two Trump allies started to make noise on X to their combined 210 million followers over the weekend. Musk wrote. My view is that percent is a business as usual choice, whereas Howard Lutnick will actually enact change. Business as usual is driving America bankrupt, so we need change one way or another. So you can see how this is turning into a proxy battle between a more status quo choice in percent, who is probably still the odds on favorite to win the role, and Lutnick, who might upend the status quo. But according to multiple reports, the last minute push from Elon and RFK and Lutnick has rubbed the Trump camp the wrong way. And now he might go in an entirely different direction with former Federal Reserve Governor Kevin Warsh and Wall street billionaire Mark Rowan now in the mix as well. So Kyle, I compare this messy fight to your high school love life, but I hope it wasn't quite this messy.
Kyle Hagee
Okay, one, I cannot confirm nor deny anything about my high school love life. So let me set the record straight there. I mean, just to take a step back, what does the Treasury Secretary actually do? And this is a really important position for the Trump administration. This is economic policy and advising the president on economic issues, managing federal Finances, overseeing the irs, managing US Dollar and monetary policy, regulating financial institutions. And so much of what, what Trump talked about on the campaign trail was one, tariffs. And so he needs a Treasury Secretary that's going to go along with at least using tariffs as a negotiating tactic. And two, maybe some changes to the irs, which this post would actually oversee. So I think it's a very important role. You've talked about kind of how the two candidates that were most in favor maybe have fallen out. And there's some emerging contenders I love in some of the reporting. They were like talking to Trump. What do you want from this person? One, he was like, he wants someone, quote, unquote, big for the role that has respect on Wall street, which maybe points to Mark Rowan, who's the CEO of Apollo Global Management. But he also said he wants someone handsome, and he thinks that Kevin Warsh is handsome.
Toby Howell
You said that he wanted someone big on Wall street because part of what a Treasury Secretary does is kind of just project strength and stability to the stock market, to the bond market. You want someone there with a steady hand. I mean, think about our past treasury secretaries. Janet Yellen is one of those kind of steady the ship type figures. So you want someone like that in the role. When it comes down to policies. Between some of the names up for grabs here, they are kind of similar. One of the big choices is who is going to support Trump's, you know, foray into levying this across the board tariffs. Pretty much everyone has come out and said, like, we will support that. They also both are candidates or all the candidates are generally in favor of lowering taxes to help offset some of those higher import costs. Also cryptocurrencies, they've all been pretty, you know, across the board in favor of that as well. So it might just come down to who, you know, Trump likes the most at this point because it is one of those positions that you do want to have, like a good relationship with the President. I think what has been grading Howard Lutnick was supposed to be this person who has just helped with the transition team.
Kyle Hagee
Yeah.
Toby Howell
But he has almost done this Dick Cheney model of saying, wait a second, I'm going to head up the committee, but also you should pick me.
Kyle Hagee
Yeah. It's like, I have a really good person for the treasury secretary. It happens to be me.
Toby Howell
Right. No. And so that has been grating on Trump a little bit. So. And then you have, of course, the wild cards of Elon RFK wearing in and saying, I think you should go with Lutnick. So A lot of moving pieces here. And it is just notable how much longer Trump has taken to fill this position than every every other position within his cabinet, which I will just run down quickly some of the positions that have been filled recently. Trump chose Chris Wright, the CEO of this oil field services company, Liberty Energy, to serve as the next Energy Secretary. Wright is known as one of the pioneers of the American fracking revolution. And then also you probably heard about this one last week, but Trump did name Robert F. Kennedy Jr. As his new Secretary of Health and Human Services. So outside of the Treasury Secretary, this cabinet is coming together, but clearly dragging his feet on this specific position.
Kyle Hagee
Yeah, but just one final note. These are just nominees. They do have to get confirmed by the Senate and so none of these are finalized until they do that task. Warner Bros. Discovery settled their breach of contract lawsuit against the NBA, an agreement that will keep the company in business with the league for over about 10 years. Now the backstory in this lawsuit, the NBA signed a new rights deal with ESPN, Comcast and Amazon.com for nearly $80 billion. And then discovery sued saying that this violated a matching rights clause it had with its own TNT cable network. Now the ref has blown the whistle. They've gone away from the review and they are, they're not going to court. The new settlement now focuses on the ability for Warner Bros. Discovery to develop new shows with the NBA House some international rights for Northern Europe and Latin America. And then Bleacher Report and House of Highlights through their social media channels will continue to have access to NBA content. The company is also going to partner with the NBA's digital operations. That'll drive about $350 million in revenue for Discovery. And then finally, which was the most important to me, Warner Bros. Discovery struck a deal with Disney to license the TNT show inside the NBA. This is kind of a cult classic show of NBA followers. So we're still going to have Charles Barkley and Shaquille O'Neal on the big screen for the NBA season. Toby, what are your thoughts about this deal and are you pumped that we're still going to have Sir Charles on tv?
Toby Howell
I am extremely excited for that. This was a big sticking point for tnt, which is owned by Warner Bros. Discovery. They had had the NBA for since 1988. It has just been a fixture on TNT. So losing the NBA was a really big deal. There was an NBA size hole. They did sue to try to claw back some of those games. What ended up happening for the most casual fan though is like if we lose inside the NBA. We are going to be extremely riot. We will riot. It is true a little bit. Because if you actually look at the NBA, despite this gigantic media deal it just signed with that trio of partners that you mentioned, viewership is actually a little bit down this year. You have this crop of stars, you know, like the LeBron era, the Steph era that is aging out of the league. So you kind of have these headwinds against the league right now despite this record revenue that it is bringing in. So to keep these bankable stars like Charles BARKLEY, Like Shaquille O'Neal, that kind of make inside the NBA what it is, it is a big win. So they had to do some creative maneuvering here. They had to strike a deal to license the show. They won't necessarily run it outright anymore. But to keep this, you know, group of of fan favorites, I think was big for the NBA, 100%.
Kyle Hagee
I think three things to me are super interesting. One is international expansion will continue, that the rights internationally are still worth something. The second is I think just looking at viewers of games being down doesn't tell the whole picture of the NBA. This is a sport that's really leaned into social content. And so, so many people, they might not watch a regular season game between like the Portland Trailblazers and the New Orleans Pelicans, but they'll definitely watch the highlight of like Brandon Ingram dunking on someone and that will get so much play across social. And I think the third thing is this ability for Warner Bros. To develop new shows around NBA content. We just saw the Netflix show that followed five NBA players. I think we're going to see more of that where it's not NBA games but it's NBA content. And that's the real kind of breadwinner for the NBA to develop almost a universe outside of the games that'll keep the league relevant for a long time.
Toby Howell
That is a great point. Also, one final part of this deal is that college football is coming to Warner Bros. As kind of a tit for tat licensing agreement with espn, with Disney and then they'll also do a new deal for nascar. So they are trying to fill this NBA size hole in their broadcasting with something like college football with something like nascar. So the void will be filled by something else.
Kyle Hagee
We will fill the void.
Toby Howell
Yeah, they will fill the void. Up next, it's winners of the weekend time.
Emily Millar
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Toby Howell
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Kyle Hagee
Welcome to Winners of the Weekend. The segment where Toby and I introduced two entities that absolutely crushed the weekend. Unlike your friend who brought that side dish at friends giving that nobody ate Toby, you won the pre show game of pickleball, so you're up first.
Toby Howell
My winner of the weekend is Elon Musk's AI ambitions. His company Xai is raising $6 billion to buy 100,000 Nvidia chips in order to big a big old data center in Memphis that pushes valuation to $50 billion, making it the sixth most valuable startup in the world. So for those keeping track at home, Elon now has SpaceX, which was valued at approximately $250 billion after a recent tender offer and is now the second most valuable private company in the world behind ByteDance plus Xai, which is now the sixth most valuable company as well. The vision for the maker of Grok AI model is to take on OpenAI and Sam Altman. As part of that effort, Elon has also ramped up pressure on his rival by expanding his lawsuit against the company, adding in Microsoft and LinkedIn co founder Reid Hoffman as defendants. That is an escalation of the original antitrust lawsuit he filed earlier this year, alleging Open Air created an unfair monopoly in the AI space as well as undermined its original open source promise. So Kyle lost in everything else Elon does is this massive AI bet he is also making with his company, X AI.
Kyle Hagee
Yeah, I mean I think it is actually pretty super impressive. And Jensen Huang, the CEO of Nvidia and founder, praised Musk a little bit ago, saying that to build this data center it would have normally took years or a year. Plus he did it in 19 days. And so I think when Elon decides he is going to do something, he almost will stop at nothing to get it done. So I think that is the feat of engineering to get this data center up is really, really impressive. And obviously now it's just a money game. People need GPUs to build really large language models and other AI capabilities. So they've secured funding for that and it's off to the races for Elon. And I, I mean I do just.
Toby Howell
Want to drill in on how big this supercomputer is. It is probably going to be the biggest supercomputer in the world. And why Elon is so confident in making this bet on just buying all these GPUs is that Tesla does have a, or Elon does have a really great use case for a data center like this. Not only will it help train the models put on, put forth by, but also Tesla's full self driving is expected to rely heavily on this new supercomputer. It's nicknamed Colossus. And it is just going to play a role in a lot of the enterprises, not just Tesla, not just X, but also Space X, also Neuralink. So he does have a lot of use for this. So which is why I think investors are ready to fork over, you know, 5 billion or $6 billion, pushing it to a valuation of $50 billion. It really is crazy how big of a bet and how quickly this happened. Like Elon didn't have an AI company really even just at this time a year ago. Now he's got one of the biggest supercomputers in the world.
Kyle Hagee
Yeah, I mean basically if Elon wakes up and says I'm going to start a company who have $5 billion his door in about 10 minutes. I mean you said he didn't have an AI company, but I want to go Back to when he actually co founded Open AI, because you mentioned the lawsuit. I actually think the lawsuit is very revelatory about, about both Sam Altman and Elon Musk there. The emails that are coming out between them are now part of discovery so everyone can see them. Sam Altman people are complaining that like we're not really sure what your like calculus is, what your ambitions are, which is what we've heard. When he got kicked out and came back exactly about Sam Altman for Elon, they were like, it seems like you want complete dominance and you want to own AI completely. And that's kind of what we're seeing too. So interesting to think Even, you know, five, 10 years ago their characteristics were quite the same.
Toby Howell
Absolutely. I do highly recommend checking out these emails as well, just to see the communication styles because Sam Altman will write this multi paragraph thing about why he thinks AI is the bet to make right now and Elon Musk will respond in one sentence that literally says like, sounds good. Yeah, count me in.
Kyle Hagee
Doesn't even sign his email. So for all of you being like best comma Kyle, which I do. Delete it. You don't need it. All right, Toby, let me paint a picture for you. Your phone rings and it's an unknown number. You pick it up because you're convinced it's actually your crush calling from a new number. You say hello. Nothing happens. You say hello again. A prerecorded message plays telling you that you're behind in a car payment and you need to pay immediately. You don't even own a car. You're confused. You hang up. Yes, this is a classic American experience, but thanks to the ftc, it's happening less and less each year. Now the Federal Trade Commission reported that unwanted telemarketing calls are down more than 51% since 2021 and they've dropped in each of the past three years. Now this has been a major focus for the FTC. In 2023, the agency announced Operation Stop Spam Calls. Very creative name there. The largest crackdown on illegal telemarketing in the agency's history. They've also gotten the big biz, the big phone mobile carriers to do anti spoofing protocols and to stop people from spoofing numbers. And they've also put out new regulations around AI, saying AI telemarketing is still telemarketing. Now, for every month in the fiscal year, robocalls made up the most of consumer complaints. Those are down. I just thought it was interesting. The other common tactics, imposters debt reduction, fake calls and then energy, solar and utilities fake calls. Now the FTC said they'll continue to be vigilant on this front. They also clarified that this doesn't mean you don't have to call your grandma anymore. So please pick up the phone and call her. Toby, have you felt like spam calls are down?
Toby Howell
I do think generally speaking there have been less. I'm still one of those people I never pick up from a random number.
Kyle Hagee
I never do, but I feel like I get so many spam calls still.
Toby Howell
Right. It is one of those things where the FTC did finally put its flag in the sand and say like we are going to do something about this because it truly was just a massive problem that a lot of people, I mean you, you took us through that beautiful experience at the start of the story. A lot of people have had that experience. I think one of the big things that the FTC did is that they now have the power to directly file, file a federal court complaint to force these scammers to return stolen money. So they've actually just basically grown some claws, grown some teeth to actually go after some of these big robo call, big scamming operations. They estimate that the impersonation based scam calls have cost consumers $1.1 billion during the last year. So this is still a pretty big problem. But also going after these AI generated calls as well, that's been a big part as well. So it is good to see those numbers going down. One segment of these spam calls though that did jump in that you mentioned a little bit is that debt reduction calls actually spiked 85% from last year. So we are still seeing these random, I mean car warranty calls have gone down but debt reduction calls have gone up. So you see these scammers kind of maneuvering and countermaneuvering to the FTC's move. Now let's see what's on the docket for the week ahead. The G20 summit begins today in Rio. Top world leaders, including the US's Joe Biden, France's Emmanuel Macron in China, Xi Jinping as well as India's Prime Minister will gather in Brazil for a two day summit to try and address some major geopolitical issues. It's also the first major gathering of leaders since Donald Trump was elected who has pledged to enact policies that put America first over international cooperation. So could be a little testy, Kyle.
Kyle Hagee
Yeah, we're kind of in this interesting purgatory period though. We're like Trump is going to be president in like, you know, a couple of months. Obviously, focus on China relations will be major in this administration and the next.
Toby Howell
We also have a busy earnings week on the docket. Nvidia and Walmart highlight the Slate Analysts are expecting Nvidia to show quarterly sales of $33 billion, up 10% from the previous year and 83% year over year. But they also warn that the growth of the chip maker could begin to slow outside of the tech world. Reports coming this week from Walmart, Target, Lowe's and other retailers will offer a peek into the health of the consumer.
Kyle Hagee
You know, you know I'm team Target. Toby, shout out to Minnesota. I'm hoping for a good call for.
Toby Howell
Target moving to the box office. Wicked and Gladiator 2 are heading to theaters to duke it out. The Paul Mezcal led sequel to 2000's Gladiator has a reported budget north of $300 million and is high on both spectacle and allegedly some historical inaccuracies. Meanwhile, Ariana Grande is taking the smash hit Broadway hit or the smash Broadway hit Wicked to the big screen. And what is the first of a two part film adaptation? Kyle, it's not exactly Barb and Heimer, but are you excited for Glicket?
Kyle Hagee
Toby, they got to hire you for marketing. I'm so excited for Glicket. I just saw Wicked recently on Broadway and it was amazing. So I'm actually very excited for that movie.
Toby Howell
I have not seen Wicked on Broadway. It's so bad. So I will go to this movie. I'm most excited for Gladiator too though. Paul Mascal I think is going to be electric in that. Also some other stuff that's going on this week. The 58th annual CMA Awards hosted by Luke Bryan, Peyton Manning and Laney Wilson are on Wednesday. Kyle, are you a country guy?
Kyle Hagee
I wasn't, but then all of my favorite artists became country like overnight. And so I guess I am like Post Malone was like your country now. And I'm like okay, Post I am.
Toby Howell
I trust you. And then finally, the Washington Spirit will face the Orlando Pride in the NWSL Championship on Saturday. Kyle, give me your pick.
Kyle Hagee
I'm going Pride.
Toby Howell
I like it. I like it. I'm a Florida boy, so I'm Orlando. Team Orlando Pride as well. Let's wrap it up there though. Kyle, thanks for being an absolute champ. Three appearances in five days. A new record for you.
Kyle Hagee
Back to back to back.
Toby Howell
Back to back to back. Thank you for helping out. Let's roll these credits. Emily Millar is our executive producer. Raymond Liu is our producer. Olivia Graham is our associate producer. Eugenia Wogu is our technical director. Billy Menino is on audio, hair and makeup. Lost it all betting on a Mike Tyson knockout. Devin Emery is our chief content officer and our show is a production of Morning Brew.
Kyle Hagee
Have a great week, y'all.
Toby Howell
Let's check in on future you what action are you taking today to set up your finances and well being for success?
Emily Millar
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Toby Howell
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Kyle Hagee
Com.
Emily Millar
Read it carefully before investing. Distributed by Alps Distributors, Inc.
Morning Brew Daily Podcast Summary
Episode: Netflix Draws 60M Households in Live Sports Gamble & Are Spam Calls Over?
Release Date: November 18, 2024
Hosts: Toby Howell & Kyle Hagee
The episode opens with the unfortunate news of Spirit Airlines declaring bankruptcy. After years of financial struggles, including a failed merger with JetBlue, declining demand, and an engine recall that grounded numerous planes earlier in the year, Spirit Airlines couldn't rebound from post-pandemic travel inflation.
Kyle Hagee remarked, "Spirit, like it, needs to exist just spiritually for America." (01:09)
Despite the bankruptcy filing, Spirit Airlines assured customers that it would continue normal operations, allowing bookings for flights, including those for the upcoming Thanksgiving holiday.
Hosts: Toby Howell & Kyle Hagee
Netflix ventured into live sports with the high-profile fight between Jake Paul and Mike Tyson, attracting 60 million households. Additionally, the co-main event featuring Amanda Serrano and Katie Taylor became the most-watched women's sporting event in U.S. history with 50 million viewers.
However, the event was not without its hiccups. Technical issues plagued the stream, leading to over 500,000 reports on Down Detector and trending hashtags like #NetflixCrash on social media.
Toby Howell commented, "Jake Paul, the marketing, legitimately the marketing master he is...what will likely have Netflix execs kind of sweating bullets right now." (04:13)
Despite these challenges, the viewership numbers surpassed those of major NFL games, highlighting Netflix's potential in the live sports arena. The success sets the stage for Netflix's upcoming broadcasts of NFL games on Christmas Day and the acquisition of WWE’s flagship show, Raw.
Kyle Hagee emphasized the significance, "If they can crack the code on live sports, then they're looking really good for future growth." (07:18)
Hosts: Toby Howell & Kyle Hagee
A contentious battle is unfolding over the nomination of the U.S. Treasury Secretary under the Trump administration. Key contenders include billionaire Howard Lutnick and Scott Bessen, with unexpected endorsements from figures like Elon Musk and RFK Jr.
Toby Howell highlighted the tension, "It's just notable how much longer Trump has taken to fill this position than every other position within his cabinet." (11:56)
The role is pivotal for shaping economic policy, managing federal finances, and advising the president on financial matters. The indecision and conflicting endorsements suggest potential shifts in Trump's administration priorities, especially concerning economic strategies like tariffs and IRS reforms.
Hosts: Toby Howell & Kyle Hagee
Warner Bros. Discovery resolved its lawsuit against the NBA, ensuring a continued partnership for over a decade. This settlement allows the company to develop new NBA-related shows and maintains access to NBA content through Bleacher Report and House of Highlights on social media.
Toby Howell expressed excitement, "I am extremely excited for that... it was a big sticking point for TNT." (14:31)
The deal also includes licensing the iconic Inside the NBA show to Disney, keeping fan favorites like Charles Barkley and Shaquille O'Neal on air. Additionally, Warner Bros. Discovery plans to expand into other sports broadcasting sectors, including college football and NASCAR, to fill the void left by the NBA departure.
Hosts: Toby Howell & Kyle Hagee
In the "Winners of the Weekend" segment, Toby Howell announces Elon Musk's AI venture, Xai, which is raising $6 billion to acquire 100,000 Nvidia GPUs for building a massive data center in Memphis. This endeavor aims to challenge OpenAI and Sam Altman in the AI landscape.
Kyle Hagee praised the initiative, "Jensen Huang...praised Musk a little bit ago, saying that to build this data center it would have normally took years or a year. Plus he did it in 19 days." (19:31)
The data center, nicknamed Colossus, is set to support Tesla's full self-driving capabilities and other Musk-led enterprises like SpaceX and Neuralink. This rapid expansion underscores Musk's aggressive strategy to dominate the AI sector.
Hosts: Toby Howell & Kyle Hagee
The Federal Trade Commission (FTC) reported a 51% decrease in unwanted telemarketing calls since 2021, attributing the decline to Operation Stop Spam Calls and new anti-spoofing protocols implemented by major phone carriers. While general spam calls have reduced, debt reduction scam calls have surged by 85% from the previous year.
Toby Howell noted, "The FTC did finally put its flag in the sand and say like we are going to do something about this." (22:58)
The FTC continues to enhance its efforts to combat illegal telemarketing, emphasizing that legitimate calls, such as those from family members, are still welcomed.
Hosts: Toby Howell & Kyle Hagee
G20 Summit in Rio: Leaders from the U.S., France, China, and India will convene to address pressing geopolitical issues. This summit marks the first major gathering since Trump's election, testing his "America First" policies.
Earnings Reports: Companies like Nvidia, expected to report $33 billion in quarterly sales, and Walmart are set to release their earnings, offering insights into the current economic climate.
Movie Releases: Anticipation builds for Gladiator 2, starring Jake Paul, and Wicked, featuring Ariana Grande, both slated for upcoming theatrical releases.
58th Annual CMA Awards: Hosted by Luke Bryan, Peyton Manning, and Laney Wilson, the awards ceremony is scheduled for Wednesday.
NWSL Championship: The Washington Spirit will compete against the Orlando Pride on Saturday, with both hosts backing the Pride.
This episode of Morning Brew Daily thoroughly covered significant developments in the business and economic landscape, from corporate bankruptcies and high-stakes media ventures to political appointments and regulatory successes. The hosts provided insightful analysis and engaging commentary, ensuring listeners are well-informed about the latest news shaping our world.
Notable Quotes:
"Spirit, like it, needs to exist just spiritually for America." – Kyle Hagee (01:09)
"Jake Paul, the marketing, legitimately the marketing master he is...what will likely have Netflix execs kind of sweating bullets right now." – Toby Howell (04:13)
"If they can crack the code on live sports, then they're looking really good for future growth." – Kyle Hagee (07:18)
"Jensen Huang...praised Musk a little bit ago, saying that to build this data center it would have normally took years or a year. Plus he did it in 19 days." – Kyle Hagee (19:31)
This summary is based on the transcript provided and aims to encapsulate the key discussions and insights shared during the episode.