New Tax Bill Rocks Gambling Industry & ‘Superman’ Soars at the Box Office

Summary

Morning Brew Daily: Episode Summary Episode Title: New Tax Bill Rocks Gambling Industry & ‘Superman’ Soars at the Box Office
Release Date: July 14, 2025
Hosts: Neal Freyman and Toby Howell

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1. Bastille Day Celebrations in the U.S.

The episode opens with Neal Freyman highlighting the global celebration of Bastille Day, commemorating the French Revolution's pivotal event on July 14th. Neal emphasizes the widespread festivities in the United States, where local French establishments host special events, often featuring delicious croissants.

Notable Quote:
Neal Freyman [00:55]: "If they're giving out croissants, I would get there early because Toby is going to clean them out."

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2. New Tax Legislation Impacts the Gambling Industry

A significant portion of the discussion centers around a new provision in President Trump's tax and spending bill that adversely affects professional gamblers. Starting next year, only 90% of gambling losses will be deductible, meaning even if a gambler breaks even, they may owe taxes on $10,000 of "phantom income."

Key Points:

• Impact on Professional Gamblers: The provision threatens the financial viability of professional gamblers who operate on thin margins.
• Industry Reaction: Figures like Phil Galfond express frustration, noting the unforeseen nature of this tax change.
• Economic Consequences: The gambling industry warns of potential revenue losses amounting to $72 billion if professional gamblers exit the market.
• Legislative Response: Nevada Democrats have introduced the Fair Bet Act to restore full deductibility of gambling losses.

Notable Quotes:
Toby Howell [04:36]: "It's like going to work all year making $0 than having the IRS knock on your door and say, hey, give me some of that cash that you don't even have."
Neal Freyman [05:23]: "They're known as Sharps. They're thought to account for 25 to 50% of all the money wagered legally on sports."

Timestamp Reference:
Discussion on the tax bill and its repercussions spans from [02:58] to [07:25].

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3. Trump’s Tariff Announcements and Renewed Trade Tensions

Neal and Toby delve into President Trump's resumption of tariff threats against major U.S. trading partners, including Mexico, the European Union, Brazil, and Canada. These tariffs, ranging from 30% to 50%, target industries such as copper and are set to take effect on August 1st.

Key Points:

• Potential Negotiations: Despite aggressive tariff announcements, Trump left room for negotiations, hinting at possible delays or reductions.
• Market Reaction: Despite escalating trade tensions, the S&P 500 reached an all-time high, though some analysts warn of possible complacency.
• Economic Indicators: New tariff revenue contributed to a surprising $27 billion budget surplus, making tariff revenue the fourth-largest federal income source at 5%.

Notable Quotes:
Toby Howell [09:34]: "He said that markets have become a little desensitized to these things because, you know, the taco trade of Trump always chickens out."
Neal Freyman [10:37]: "Tariff revenue is now the fourth largest source of revenue for the federal government."

Timestamp Reference:
Tariff discussions occur between [07:25] and [10:37].

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4. Economic Impact of Rising Tariff Revenues

Neal highlights that tariff collections have surpassed $100 billion for the fiscal year, contributing to a $27 billion budget surplus for the month. This substantial revenue boost supports Trump's goal of using tariffs to generate government income.

Notable Quote:
Neal Freyman [10:37]: "That could embolden Trump because one of the main goals of tariffs is to bring in revenue."

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5. Weekend Winners: Bad Bunny’s Economic Boost to Puerto Rico

Neal shares his "Winner of the Weekend," spotlighting Puerto Rico's economic surge driven by Bad Bunny's unprecedented 30-concert residency. This initiative is expected to draw 600,000 visitors, injecting $181 million into the local economy and stabilizing Puerto Rico's GDP.

Key Points:

• Economic Forecast: Moody’s upgraded its economic outlook for Puerto Rico, anticipating sustained growth even post-residency.
• Cultural Impact: Bad Bunny's residency is unique as it concentrates economic benefits in his native Puerto Rico rather than the traditional Las Vegas setting.
• Community Focus: The first nine shows are exclusive to Puerto Rican residents, emphasizing local support and engagement.

Notable Quotes:
Neal Freyman [12:53]: "Bad Bunny is just such a superstar at this point. He's been on SNL, he's gotten his face out and the fact that he's just coming home to Puerto Rico before he is going on a world tour."
Toby Howell [13:40]: "It's so concentrated in one place for one people."

Timestamp Reference:
Bad Bunny’s residency is discussed from [11:xx] to [14:26].

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6. Box Office Triumph: ‘Superman’ Shines Bright

The hosts celebrate the latest Superman movie's record-breaking opening weekend, grossing $122 million domestically. This marks the highest debut for a solo Superman film, surpassing the 2013 "Man of Steel."

Key Points:

• DC Cinematic Universe Revival: James Gunn’s direction signals a promising future for DC, aiming to rival Marvel's success.
• Warner Bros.’ Streak: Following success with films like "Minecraft" and "Final Destination," Warner Bros. enjoys its fifth consecutive number one movie.
• Industry Impact: The success contrasts with prior underperformances of other DC films, indicating a potential strategic turnaround.

Notable Quotes:
Neal Freyman [19:12]: "It's only the third movie of the entire year of 2025 to cross $100 million, the other being Warner Brothers Minecraft movie and Disney's Lilo and Stitch."
Toby Howell [19:40]: "They just keep no all hits, no misses. Right there."

Timestamp Reference:
Superman’s box office success is covered from [15:32] to [20:15].

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7. Automotive Industry's Struggle with Cupholder Designs

Neal and Toby discuss a surprising shift in automotive consumer complaints, with cupholders moving from the seventh to the third most problematic aspect of new vehicles. Manufacturers are struggling to accommodate the diverse sizes of modern drink containers.

Key Points:

• Consumer Frustration: The rise in complaints is primarily due to inadequate sizing of cupholders for larger containers like Stanley mugs and Big Gulps.
• Industry Response: Automakers are exploring solutions such as spring-loaded tabs and increased cupholder sizes to meet consumer needs.
• Future Implications: As vehicles become more integrated into daily life, especially with the advent of self-driving cars, the importance of functional touchpoints like cupholders will continue to grow.

Notable Quotes:
Neal Freyman [22:07]: "Your cars have become essentially living room on living rooms on wheels. And we need to bring everything in our house into the car."
Toby Howell [23:06]: "If you are frustrated with putting your Stanley mug in the center console every single day, you probably will never buy that car again."

Timestamp Reference:
Cupholder issues are discussed from [20:11] to [24:08].

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8. Upcoming Events: Crypto Week, Earnings Reports, and Sports Highlights

The episode concludes with a preview of significant upcoming events:

• Crypto Week: Congress is set to debate the Genius Act, aiming to regulate stablecoins and provide clarity for the cryptocurrency market. This legislative focus has boosted Bitcoin's value to above $120,000.

  Notable Quote:
  Toby Howell [25:01]: "This feels like crypto's coming out party."

• Earnings Season: Major banks and companies like J.P. Morgan, Goldman Sachs, Citi, and Netflix will release their Q2 financials. Analysts anticipate modest profit growth of 2.5% year-over-year for the S&P 500.

  Notable Quote:
  Neal Freyman [26:17]: "Earnings season is back."

• Sports Events: The summer sports calendar includes MLB's Home Run Derby, the All-Star Game, the WNBA All-Star Game, and golf’s British Open. Additionally, the Tour de France enters a dramatic mountain stage with significant team developments.

  Notable Quote:
  Toby Howell [27:19]: "Don't sleep on the Tour de France though, either."

Timestamp Reference:
Upcoming events are highlighted from [24:08] to [27:38].

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Conclusion

Neal and Toby wrap up the episode by encouraging listeners to engage with the show and share their feedback. They also briefly mention the production team behind the podcast.

Notable Quote:
Toby Howell [28:36]: "Great show, Danielle. Let's run it back tomorrow."

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This episode of Morning Brew Daily provides a comprehensive overview of significant economic policies, industry challenges, cultural events, and upcoming highlights, ensuring listeners are well-informed to start their day.

Transcript

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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 one thing that car companies can't seem to get right then the.

[Toby Howell]

Only thing scarier for gamblers than splitting tens and watching the dealer get blackjacked is a mysterious new tax law. It's Monday, July 14th. Let's ride.

[Neal Freyman]

It's July 14th and you know what that means. Biscuit Bastille Day France is celebrating its biggest holiday today, commemorating when Parisians stormed the Bastille fortress in Prison in 1789, an event that catalyzed the French Revolution. Every year Paris throws a massive military parade and pretty much every town across the country sets off fireworks. There are also plenty of celebrations here in the United States. Your local French bistro or cafe will probably have some sort of special going on. And if they're giving out croissants, I would get there early because Toby is going to clean them out.

[Toby Howell]

Oh, you know I am treating myself today, but actually I am more of a pan I'll chocolate guy. Which is in fact not a croissant because it isn't crescent shaped little croissant fact for you there. But my criteria for what makes a delicious croissant is very simple. It just has to be warm. Seriously, give me the best croissant in the world and give me the worst one ever, ever made. As long as they are both fresh out of the oven, I am a happy camper. Yes, light and fluffy is great, but you give me war or give me death. And now a word from our sponsor, Mortgage Matchup. Neal, what did you get into over the weekend?

[Neal Freyman]

Well, Toby, I meal prep trying to save a little cash where I can.

[Toby Howell]

Oh, and did you make a little extra for your favorite podcast co host?

[Neal Freyman]

No extra chicken bowls for you my friend.

[Toby Howell]

I'll remember that. Speaking of saving a little extra money when we can, you can also try out Mortgage Matchup powered by United Wholesale Mortgage.

[Neal Freyman]

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[Toby Howell]

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[Neal Freyman]

So check out mortgage matchup.com to speak to a home loan expert. That's mortgage matchup.com disclaimer United Wholesale Mortgage LLC equal housing lender and MLS number 3038 license in all 50 states and the District of Columbia.

[Toby Howell]

We all know that the house always wins the green double zero in roulette, the player acting before the dealer in blackjack. These are all the ways Vegas gains an advantage and why life as a professional gambler is one of a razor thin margins those margins just got even smaller, though, thanks to a provision tucked away in Trump's big tax and spending bill that changes the way poker players, sports bettors and professional gamblers get taxed. Starting next year, only 90% of losses will be deductible. Which is which means that even if A gambler wins $100,000 and loses $100,000 in a year, they will still somehow owe taxes. It's like going to work all year making $0 than having the IRS knock on your door and say, hey, give me some of that cash that you don't even have. Even worse, the losses compound as you gamble more and more. Say you're a poker player who wins a million bucks on the year, but those tournament buy ins added up, you ended up losing a million bucks too. In the past, you pay zero taxes on that because you had zero earnings. But now, since you can only deduct 90% of your losses, you are paying taxes on $100,000 of essentially phantom income. It makes it impossible to gamble for a living, phil Galfond, a professional poker player, said on X. Adding to gamblers frustration is that this provision really came out of nowhere, even for some Republican lawmakers who were surprised to learn of the provision's existence at all. It is supposed to raise about $1.1 billion in tax revenue over the next eight years. But the gambling industry says that revenue pales in comparison to what the $72 billion casino industry could stand to lose if their most lucrative customers go extinct. If it stays, there goes your professional baccarat career.

[Neal Freyman]

Neil and it was just getting started. No, this definitely is a massive issue for professional gamblers who spend so wager so much money and they operate on very thin margins they are wagering hundreds of thousands of dollars each year with the hopes that they'll just win about 55% of the time. That is enough to make a living under the previous tax regime. But these professional poker players, you might be wondering, okay, well, they're being taxed. Why do I care about them? I'm not a professional poker player. But they lubricate the entire industry. They're known as Sharps. They're thought to account for 25 to 50% of all the money wagered legally on sports. And they, in a sense, lubricate the entire industry and which leads to so much spending downstream at casinos and hotels and food service. And they are the ones really driving the industry. So if they say that we are not going to be spending any more in the legal market, we might be pushed to illegal markets or polymarket or other prediction markets because of this tax provision, then it could have billions of dollars in economic consequences down the line.

[Toby Howell]

Yeah, the winners here are certainly those prediction markets who do get to skirt around that definition. And then also just offshore illegal black market betting sites who will probably take a lot more of that revenue because you just don't want to have to report your taxes to the irs, which is probably already happening for sure. And then also another winner is just like CPAs who have said that they have just fielded hundreds and hundreds of panic calls from their gambling customers saying that it's just been a week of absolute chaos trying to figure out what to do here. Very much sports bettors are not happy with this because they typically have actually the narrowest margins of any of that kind of professional gambling class. So they are certainly had a nasty surprise seeing this as well. And a lot of people from the industry like, did they even think this through? It was probably put in by some congressional aide because a lot of top, you know, lawmakers said, we don't even know where this came from. It just so happened to find its way into the final bill that's over. It's 900 pages long. So sometimes stuff like this happens. But they're saying that it could just completely kneecap a very large gambling industry centered around Las Vegas.

[Neal Freyman]

And so there is a push to get rid of this because if the top people involved, the top Republican senator, senators on the Senate Finance Committee say, we didn't know this existed. And one of them said it was, quote, bad policy, there might be a way to claw it back. Last week, a couple of Nevada Democrats in the House introduced a bill called the Fair Accounting for Income Realized from Betting Earnings Taxation act, the Fair Bet act, that would restore that 100% deduction for gambling losses so that even if you lose a little bit of money or you break even, you don't owe money on your taxes as in the previous regime.

[Toby Howell]

It was funny. I follow a lot of professional poker players on Twitter as well, and of course they're all just like posting long threads, long videos about this as well. But a lot of them did say, you know what, it's actually going to get rid of probably 75% of losing players and the rich are only going to get richer because only the top, you know, percent 1% can survive this. So some of them are saying, all right, fine, like let's, let's get rid of all the waste. Like I'm probably still going to survive here. So survival the fittest for sure. Especially if you're on poker Twitter, like I'm sure a lot of our listeners definitely are.

[Neal Freyman]

It is an interesting lesson in the fact how small provisions thrown into bills at the last minute can blow up entire industries that lawmakers don't even read. It's a critical week for trade negotiations after President Trump launched more tariff threats against the US Major trading partners on Saturday, ensuring that summer drama won't end with the finale of Love Island. On Saturday, Trump announced 30% tariffs on Mexico, saying it wasn't doing enough to stop the flow of fentanyl cross the border and the European Union effective Aug. 1. It capped off a week in which the U.S. sent letters to nearly two dozen countries, including allies Japan and South Korea, warning of higher tariffs in line with Liberation Day taxes that will go into effect at the start of August. Trump also said he's going to hit Brazil with 50% tariffs despite the US having a trade surplus with that country because of a court case against one of his allies there. Oh, and I almost forgot, there's a new 50% tariff on copper and and 35% tariff on Canada. If you're wondering is this actually going to happen, that is a worthy question given the many tariff delays and rollbacks this year. In his letters to countries, Trump did seem to leave wiggle room for negotiations ahead of August 1st. So you can bet that there's going to be frantic negotiations taking place over the next few weeks. At least one group of people don't believe Trump will fall Follow through Wall street traders despite the trade war coming roaring back, The S&P 500 hit an all time high last week. Volatility is down in and all the major banks upgraded their stock outlook for the year Some analysts though, say the market has gotten complacent and could get whacked like it did in April should these high tariffs go into effect, which would upend supply chains.

[Toby Howell]

Yeah, it's not just analysts too. I mean, JP Morgan CEO Jamie Dimon specifically warned of complacency in the market last week. And on Thursday he said that markets have become a little desensitized to these things because, you know, the taco trade of Trump always chickens out taco the has become like the de facto drumbeat of Wall street at this point, saying that we do think that most of these, even though they're threatened, will be delayed or postponed or won't come in as hefty as potentially those letters made them look. That being said though, there are a lot of risks because one, we are collecting more and more tariffs. Like the tariff rate is elevated right now. We are entering earnings season right now which could show that maybe the tariffs are having a bigger impact on companies bottoms lines than you're expected then. Also the stock market is a little overvalued now compared to its historic norm. So all of these factors are coming together that even though the market does just seem like it's basically just ignoring what's going on, we're, we're rocking a tight wire rope right now, a high wire because of all the other these risks that are kind of hitting the market from multiple sides.

[Neal Freyman]

And you talked about tariff collections. We got new data from them on Friday. For the first time ever. They topped $100 billion for, for during a fiscal year to the amount of revenue that the US Government is collecting from tariffs. And it led to a surprise $27 billion budget surplus for the month. Tariff revenue is now the fourth largest source of revenue for the federal government. As a share of federal revenue they had, they were about 2 or 2% historically. Now they've more than doubled to around 5%. That could embolden Trump because one of the main goals of tariffs is to bring in revenue. And it looks like new data show that, you know, there's a ton of new money coming in because of tariffs. All right, let's head to our winners of the weekend. The segment where Toby and I picked two things that tore up the wedding dance floor. I won the pre show baguette baking competition in honor of Best Deal Day, so I get to go first. And my winner is Puerto Rico because the island is about to get a Bad bunny sized bump to its economy. On Friday, the music megastar began an unprecedented 30 concert residency in San Ju Bringing an eras tour level economic impact to a single place. The tourism promotion agency Discover Puerto Rico says that 600,000 people are expected to come to the island for Bad Bunny's residency, double the average for those typically slower summer months. The run is expected to inject $181 million into the local economy, which led to Moody's upgrading its economic forecast for Puerto Rico and keep its GDP from flatlining this year, all because of Bad Bunny. Tourism jobs are also forecasted to grow and stay at a higher level even after the residency is over. Now, it's important to remember that what, what Bad Bunny is doing is unusual. Typically, when an artist has a residency in a single city, it is Las Vegas. That Bad Bunny is doing it in his native Puerto Rico is a reflection of why he's such a legend there. His lyrics often discuss political and economic themes that resonate with people's daily lives, such as calling out corruption among the Puerto Rican governing class and criticizing frequent power failures on the island. And Toby, here's another instance of a concert series delivering a measurable economic boost. But this one's different because it's concentrated in one place.

[Toby Howell]

Yeah, longtime listeners of the show know that we talked about the Heiress tour ad nauseam as it kind of just rolled through the entire world bringing these economic hotspots to wherever Taylor Swift kind of put down. The Harvard Business Review actually estimated that her heiress to report in $10 billion to local economies across several continents. Now imagine that all concentrated on a one place, that place being Puerto Rico. Another cool thing that Bad Bunny is doing too is that there's. This is a 30 concert stretch that he's staying in Puerto Rico. The first nine shows are open only to Puerto Rican residents as well. So talk about just an economic boom. Talk about focusing on the people who, you know, got you to where you are. That is why he is so popular and that is why this is so unprecedented, is that it is so concentrated in one place for one people.

[Neal Freyman]

I mean, his rise has been absolutely stratospheric to watch. Between 2020 and 2022, Bad Bunny was the most played artist on Spotify. The first musician ever to claim the top spot for three consecutive years. In 2018, people streamed his songs 2.5 billion times. Six years later, by 2024, it was up to 11.5 billion. It seems like you can't go anywhere, to any party without someone bringing up Bad Bunny or playing his music because he is just such a superstar at this point. He's been on snl, he's gotten his face out and the fact that he's just coming home to Puerto Rico before he is going on a world tour. But he's doing this 30, 30 day residency in Puerto Rico, showing love to his native island and then he'll go off on his way up Next we.

[Toby Howell]

Have my winner of the weekend.

[Neal Freyman]

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[Toby Howell]

I've never betrayed anyone.

[Neal Freyman]

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[Toby Howell]

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[Neal Freyman]

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[Toby Howell]

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[Neal Freyman]

Morning Brew is compensated by Webull Financial LLC, member of FINRA and SIPC. Investing involves risk. More info at webull.com/disclosures. You're looking a little red there, Toby.

[Toby Howell]

Yeah, sunburn.

[Neal Freyman]

I misspoke. You're looking a little in the red there thanks to your old wireless bill.

[Toby Howell]

One Stop going through my mail to what am I supposed to do about it?

[Neal Freyman]

Well, have you thought about switching to Mint Mobile? All their plans come with high speed data and unlimited talk and text delivered on the nation's largest 5G network.

[Toby Howell]

And give up my precious phone?

[Neal Freyman]

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[Toby Howell]

Me and your dad can still do our Sunday morning calls.

[Neal Freyman]

Yeah. Weird as it is that the two of you are so close and for a limited time, Mint mobile is offering three months of unlimited premium wireless service for 15 bucks a month.

[Toby Howell]

Get this new customer offer in your three month unlimited wireless plan for just 15 bucks a month at mintmobile.com Morning Brew. That's Mint mobile.com Morning Brew disclaimer upfront payment of $45 required equivalent to $15 a month limited time new customer offer for first three months only. Speeds may slow above 35 gigabytes on unlimited plan taxes and fees. Extra cement Mobile for details My winner of the weekend is a bird. Wait no, it's a plane. Oh, it's Superman. Because the latest comic book movie installment got off to a flying start this weekend, raking in $122 million at the domestic box office. That makes it the best performing solo Superman movie ever over its first weekend, edging out Superman, man of Steel, which made 116 million back on its debut back in 2013. While Warner Bros. Is plenty happy to see Superman resonating at the box office, CEO David Zaslav is especially relieved because this movie also serves as a launchpad for the DC Cinematic Universe after a stop start last decade where it tried and failed to keep up with its Marvel counterpart. James Gunn, who used to direct Marvel movies before jumping ship to dc, was at the helm of Superman and is also the co lead of the DC studio where he's helped develop a 10 year plan for expanding that universe. While Gunn has his eyes set on the future, the President is also going pretty well for Warner Bros. All of a sudden. Superman is currently sitting at number one in the box office, making it the studio's fifth number one movie in a row following the debuts of a Minecraft movie, Sinner's Final Destination, Bloodlines and F1 the movie that is a super streak.

[Neal Freyman]

Neal, lots of milestones with this opening. First comic book movie in a year to cross 100 million in its premiere. That one last year was Deadpool and Wolverine. First DC title to cross 100 million in eight years since Wonder Woman and it's only the third movie of the entire year of 2025 to cross $100 million, the other being Warner Brothers Minecraft movie and Disney's Lilo and Stitch. So a great start for a franchise that needed a desperate reboot after and I'm going to read these movies and you're going to cringe. The Flash, Aquaman and the Lost Kingdom, Shazam, Fury of the Gods and Blue Beetle. Just some epic flops there. They brought in James Gunn who did Guardians of the Galaxy and they said dude, you did a really good job with that. Please do that for dc. We are desperate here and overall comic book movies have been in a slump. Even Marvel is not doing that well. So to see a comic book movie superhero movie based on Superman do this well at the box office, a lot of movie execs are breathing a sigh.

[Toby Howell]

Of relief and a lot of Movie execs are looking at Warner Bros. And going where did this come from? Because Warner Bros. Was struggling so badly, they were languishing in last place of all the major Hollywood studios of their domestic box office share last year, suddenly they are going toe to toe with Disney. After this run of five movies in a row that just kept having hits. They just keep no all hits, no misses. Right there. They went from 0 to 105 seconds. That's what an industry insider told the New York Times. So just a very interesting turnaround for a much maligned studio under David's Last love, who you know has been a very hated CEO in his tenure because he's HBO Max. Yeah, HBO Max Max. He's been doing all this stuff, but suddenly they've kind of stumbled into all this success and it looks like DC is set up over the next decade. If they can keep this momentum going under gun to be basically maybe the MCU of the next 10 years or so, which is just wild to think about. If you go back to some of the movies that they have been cranking out, which have not been good, I.

[Neal Freyman]

Think it's right there for the taking. With the MCU languishing a little bit.

[Toby Howell]

Yeah, absolutely. I mean they still have a long way to go. Marvel Cinematic Universe has brought in $32 billion at the box office. So maybe they get past one weekend of their first good movie in years. But you are right, they are. Audiences are loving it, critics are loving Superman, and it's just a good start for a franchise that hasn't been in good hands over the last decade. When it comes time to buy a new car, the stuff you touch a lot, AKA touch points, are a lot more important than you'd think. Rather than horsepower or fuel efficiency, basic things like how the door handle feels or does the trunk make a nice thud when it closes, end up swaying buyers. And increasingly a single touch point is making or breaking car purchases. Cup holders. According to J.D. powers initial quality survey, where they talk to new car buyers about what they are liking and not liking about their new rides, the biggest jump in complaints this year was tied to cupholders. When looking at the top 10 problems for the industry, cupholders went from being the seventh most problematic issue for the vehicle to the third most reported this year. J.D. powers, director of auto benchmarking, told the drive that is a massive jumps in complaints, mostly tied to one thing, size. While it seems like manufacturers had cupholders figured out, the report says manufacturers are struggling to keep up with being able to accommodate all the different shapes and sizes of containers that are increasingly available. In other words, your Stanley's and Yetis are so freaking big now that carmakers are at a loss on how to accommodate the big liquid rigs you all are hauling around during your morning commutes. It's a bit of an engineering nightmare. How are you supposed to accommodate a sippy cup and a Big Gulp, A tall latte from Starbucks and a Stanley Cup? And what if you have multiple cup loving passengers? Where are their liquid it's supposed to go? Neal, A shocking amount of people are unhappy with their cup holders.

[Neal Freyman]

Well, I'll tell you where they're supposed to go. Just look at Subaru and their Ascent suv. This is the goat cup and bottle holder of all the automakers, automaking models. It has 19 cup and bottle holders all throughout the car. That's nearly three for every human it can carry. It's just a sign that our cars have become essentially living room on living rooms on wheels. And we need to bring everything in our house into the car. We use it as a third closet. We use it as a place to put our cups. They are becoming, you know, de facto part of the home for people. And car buyer or carmakers need to respond to this. This is not a new problem. Twenty years ago, Pricewater Waters House Cooper's issued a report saying that the number of cupholders in a vehicle was one of the most critical factors in clinching that purchase decision. You mentioned those touch points where people are interacting with cars in a tactile manner. If they don't like, if they look at the couple, there's and they say, well that's too small, then it's a no go for me.

[Toby Howell]

It's so fascinating that over the past couple of years automakers have put so much emphasis on adding technology into their cars. You know, the touch screens that people have complained about, that has been the most important thing, injecting it with all these digital doohickery. And that is not what customers actually care about. Because the stuff that they touch, you know, those tactile things are what they care about. And cup holders. If you are frustrated with putting your Stanley mug in the center console every single day, you probably will never buy that car again because you've just had such a negative experience day after day with these dang cupholders. And I would just love to see be a fly on the wall of these engineering meetings. Like they're looking at these, you know, receptacles and going where, how do we fit these in? What, what technology can we use that makes sure an espresso cup stays securely grasped in the same holder as you know, a Big Gulp, something like that. So the answer is actually these spring loaded tabs that kind of adjust varying to diameters but just bigger ones of those more cup holders. These are all these trends that these automakers are trying to figure out.

[Neal Freyman]

And just imagine when self driving cars get mass adopted how how much cup holders other aspects of the living room is going to be after infused in cars and we don't even need to drive and we're just going to hang out more in cars lot to think about. Okay, it's Monday, so here are the major events you need to know about in the week ahead. Welcome to Crypto Week when Congress is going to be debating a bunch of legislation aimed at regulating cryptocurrencies with an eye on supercharging growth. The signature bill that the House will take up is the Genius act which would create federal rules for stablecoins that has retailers and banks foaming at the mouth. And same with investors. The prospect of establishing clear guardrails around the sector has sent bitcoin soaring to multiple record highs in recent days and currently the token sits at above $120,000. Toby, this feels like crypto's coming out party.

[Toby Howell]

Yeah, all you have to do is go back to the Biden administration when Coinbase said, hey, can we get some rulemaking here? We just want to know what we're supposed to do. Congress just tell us what to do. And the Biden administration turned around and sued them instead. So now we have an entire crypto week where Republican lawmakers are very keen on passing multiple bills related to crypto following through on the President's promise to make, you know, the United States the crypto capital of the world. So just the juxtaposition between the previous administration and the current administration has to be a big celebration for the crypto.

[Neal Freyman]

Industry and for President Trump, who himself is involved with many crypto ventures that critics say sets a bad precedent and is a conflict of interest. If you missed hearing the most epic jargon filled CEO spin imaginable, you're in luck. Earnings season is back. All the major American banks such as J.P. morgan, Goldman Sachs and Citi will report this week and Netflix will drop its Q2 financials on Thursday. The good news for companies is that the bar is set very low. Analysts expect second quarter profits in the S&P 500 to rise just 2.5% year over year, which would be the weakest growth since mid 2023. But it'll still be a test for a ripping stock market that's managed to brush off the trade war relaunch.

[Toby Howell]

I mean, this is ties back to our top or our second story today is that investors are just wanting to see what corporate leaders have to say about what's going on. How are consumers reacting? How are they reacting to a higher tariff environment? Is economic growth ahead or are corporate profits going to falter a little bit? So even beyond some of the government data that we are going to get, corporate profits are just a great canary in the coal mine of how the economy is actually doing.

[Neal Freyman]

And then finally in sports, the summer lull has officially arrived, which means it's time to watch beefy dudes hit dingers. Major League Baseball's Home Run Derby is tonight night, followed by the All Star Game on Tuesday. The WNBA is also hosting its All Star Game this weekend in Indianapolis, the home of Caitlin Clark. Finally, golf's Open Championship, better known as the British Open, begins on Thursday at Royal Portrush in Northern Ireland. Toby, it is dry out there. I was trying to find something to watch on TV last night. Cricket was the only thing I could find. So watch a little cricket.

[Toby Howell]

Don't sleep on the Tour de France though, either. First mountain stage today, 14,000ft of climbing in just 102 miles. One of the favorites lost his best teammate whose best climber to a ribbon industry. So there's a lot of drama on the tour right now. So I refuse to say that this is a dry period right now.

[Neal Freyman]

If you're watching the Home Run Derby tonight, you need somebody to root for. I want to know a single storyline. Well, look at this guy, Cal Raleigh. He's a catcher for the Seattle Mariners. His nickname is the Big Dumper. I'm not going to elaborate on that. You can do some research yourself. But he is having a ridiculous first half of the season. He's hit 38 home runs already, which leads him just one short of Barry Bonds. His record of 39 home runs in the first half of the season in 2011. So the big Dumper has taken some big swings. All right, that is all the time we have. Thanks so much for starting your morning with us. Have a wonderful start to the week. If you have any thoughts on today's episode, send an email with questions, comments or feedback to Morning Brew daily at Morning Broadcom. Let's roll the credits. Emily Milian is our executive producer. Raymond Lu is our producer. Our associate producers are Olivia Graham and Olivia Lake. Hair and makeup is desperately looking for bad bunny tickets. Devin Emery is our president, and our show is a production of Morning Brew.

[Toby Howell]

Great show, Danielle. Let's run it back tomorrow.