Prime Day Could Rake in Over $23B & Tariff Uncertainty Keeps Lingering

Summary

Morning Brew Daily: Prime Day Could Rake in Over $23B & Tariff Uncertainty Keeps Lingering
Release Date: July 8, 2025

In this episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into a spectrum of pressing business topics, from the explosive sales projections of Amazon Prime Day to the ongoing complexities of international trade tensions under the Trump administration. Personal anecdotes intertwine with serious economic discussions, providing a balanced and engaging narrative for listeners. Below is a detailed summary capturing all key points, discussions, insights, and conclusions from the episode.

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1. Personal Milestones and Team Updates

[01:11] Personal Engagements:
The episode opens with a warm personal touch as Neal announces significant life events within the Morning Brew team. Toby shares his joyous engagement to his fiancée, highlighting memorable moments such as a surprise visit from her family and a meticulously planned trivia night. He humorously notes, “I can hit him with, oh, it was good. Got engaged,” showcasing his excitement and the positive morale it brings to the office.

Neal adds, “Olivia Graham also got engaged two weeks ago,” further emphasizing a wave of happy news among the team members. These personal updates not only humanize the hosts but also set a friendly and relatable tone for the episode.

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2. Tariff Uncertainty and Trade Tensions

[03:14] Overview of Tariff Developments:
The conversation swiftly transitions to the pressing issue of tariff uncertainties as President Trump extends the Liberation Day tariff pause deadline from July 9 to August 1 through an executive order. This move reignites tensions with major trading partners, including Japan and South Korea, with threatened tariffs ranging from 25% to 40%.

Key Points Discussed:

• Affected Countries: Alongside Japan and South Korea, new tariffs also target Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Serbia, Bosnia, Indonesia, Cambodia, and Bangladesh.
• Market Reaction: Neal observes, “stocks tanked $6 trillion” during Liberation Day, but the latest tariffs led to a more muted market response with the S&P down by 0.8%. This suggests that investors might be anticipating these threats without severe immediate repercussions.
• Business Impact: Leaders like Jake Colvin of the National Foreign Trade Council express frustration over the ongoing uncertainty, stating it "paralyzes business decision-making and erodes trust with our allies and major trading partners."

[05:54] Analysis and Long-Term Implications:
Neal interprets Trump's actions as a strategy to buy more time for negotiations, effectively resetting the timeline to previous stages. He notes, “the margin of difference in percentage points is between as anywhere between 10 for all of those countries,” indicating a negligible change that signals a return to earlier tariff proposals.

Toby adds, “levying those tariffs against Japan and South Korea, especially as we are trying to cooperate with them,” highlighting the contradiction in enforcing tariffs on close allies. This violates longstanding free trade agreements, casting doubt on the reliability of U.S. trade partnerships.

The discussion underscores the protracted nature of trade negotiations, with finalized agreements only reached with the UK and Vietnam, leaving major partners like Mexico still in limbo. The looming BRICS summit adds another layer of complexity, as Trump hints at additional tariffs, further intensifying global trade uncertainties.

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3. Amazon Prime Day: A Sales Behemoth

[07:02] Prime Day Projections and Strategies:
Transitioning to consumer markets, Neal highlights the significant impact of Amazon Prime Day, now in its 10th year. Adobe projects that online spending during this event could reach nearly $24 billion, surpassing traditional Black Friday sales.

Key Factors Driving Growth:

• Extended Duration: For the first time, Prime Day spans four days (96 hours), allowing consumers more flexibility to take advantage of deals.
• Retailer Participation: Major retailers like Walmart and Target are joining in, amplifying the event's reach and competition.
• Diverse Deals: Amazon’s offerings include up to 50% off on apparel and shoes, 40% off on electronics like TVs and vacuums, and 30% off on toys and fragrances.

[09:21] Market Comparison and Competition:
Toby compares Prime Day's projected $23 billion in gross merchandise volume to Walmart's $79 billion in total U.S. e-commerce sales, illustrating that while Prime Day is monumental, it still represents a fraction of Walmart's broader online operations. Nevertheless, the entry of other retailers into similar sales events enriches the competitive landscape, ensuring consumers have multiple avenues for deals.

Neal further discusses Amazon’s strategic use of Rufus, its AI chatbot launched to enhance the shopping experience. However, both hosts express skepticism about Rufus's effectiveness, citing early user frustrations and stating, “it just wasn’t necessarily working.”

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4. Elon Musk’s Political Ambitions and Tesla’s Struggles

[12:25] Musk’s America Party and Shareholder Reactions:
A significant portion of the episode is dedicated to Elon Musk’s latest venture into politics with the creation of the America Party. This move has unsettled Tesla shareholders, resulting in a nearly 7% drop in stock value and a total loss of $68 billion.

Key Issues Highlighted:

• Investor Frustration: Musk's diversion into politics is seen as detrimental to Tesla, a company already facing challenges. Dan Ives, a tech analyst, notes, “musk diving in deeper into politics is... the opposite direction that Tesla investors... want him to take.”
• Business Performance: Tesla reported a 13% year-over-year decline in Q2 deliveries, with significant drops in the Chinese market, its pivotal growth region. Sales in China plummeted by 30%, and market share dwindled from 11% to 4%.
• Strategic Focus: Shareholders are dismayed as Musk’s attention shifts away from Tesla’s operational woes to political ambitions, fearing prolonged uncertainty and lack of focused leadership.

[14:58] Q2 Performance and Market Challenges:
Neal provides a detailed analysis of Tesla’s Q2 delivery numbers, emphasizing the company's declining performance in China—a crucial market. The impaired performance in China mirrors Apple's struggle in the same region, indicating heightened competition from local manufacturers and a saturated market. Additionally, Tesla's robo-taxi rollout has been underwhelming, compounding investor anxieties.

Conclusion on Tesla’s Outlook:
The hosts collectively express concern regarding Tesla’s trajectory, questioning the sustainability of Musk’s dual focus on automotive innovation and political engagement. The sentiment is clear: for Tesla to recover and thrive, Musk needs to prioritize the company’s core business operations over political endeavors.

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5. Toby's Trends: The Anime Explosion on Streaming Platforms

[18:07] Anime's Mainstream Surge:
In the segment titled Toby's Trends, Toby Howell explores the meteoric rise of anime in mainstream media, particularly on streaming platforms like Netflix.

Key Insights:

• Viewership Growth: Netflix reports that over half of its global users—300 million individual viewers—now watch anime. A study by marketing firm Dentsu corroborates this, revealing that 48% of global anime viewers subscribe to Netflix primarily for its anime content.
• Content Quality and Diversity: Anime offers “more storytelling depth, emotional nuance, cultural diversity, unique worlds and stories,” which contrasts with the repetitive nature of many Hollywood franchises. This appeals to audiences seeking fresh and diverse narratives.
• Economic Impact: The strong engagement translates into significant merchandise sales, with 40% of American viewers spending over $200 on anime merchandise in the past year, indicating a deeply invested fanbase.

[19:48] Competitive Landscape:
Neal discusses how major streamers like Netflix have outpaced dedicated platforms like Crunchyroll in the anime market. With 33 anime shows in Netflix’s global top 10 non-English rankings last year—a more than double the number from three years prior—the platform has solidified its dominance. Shows like K Pop Demon Hunters not only top streaming charts but also achieve unprecedented success in music charts, showcasing the cross-media appeal of anime.

Market Implications:
The surge in anime’s popularity is reshaping the streaming landscape, challenging established players and encouraging them to invest more in diverse and high-quality content. The discussion underscores the importance of adapting to evolving viewer preferences and the lucrative potential of niche genres like anime when leveraged effectively by major platforms.

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6. Final Headlines

[22:22] TikTok’s US Spin-Off App:
The hosts touch upon TikTok’s controversial journey in the US market. ByteDance is reportedly developing a US-based spin-off app, expected to launch around September, contingent on a sale to non-Chinese investors. This development is part of ongoing negotiations amid executive orders targeting TikTok’s operations due to security concerns.

Key Highlights:

• Regulatory Hurdles: The app’s success hinges on negotiating with the Chinese government and adhering to US regulations, leaving many questions about its viability and user acceptance.
• Market Integration: The new app may lack TikTok’s signature algorithm, potentially affecting user experience and engagement.

[23:10] Beer Industry Dynamics:
Michelob Ultra emerges as a standout performer in the struggling beer industry. With a 3.1% sales growth in the first 12 weeks of the year, Michelob Ultra has surpassed competitors like Bud Light, Modelo, Coors Light, and Miller Lite.

Factors Contributing to Success:

• Health-Conscious Branding: Michelob Ultra's low-calorie, low-carb positioning appeals to health-aware consumers.
• Marketing and Sponsorships: Strategic advertising campaigns, including high-profile commercials and sports sponsorships, have fortified its market presence.

[24:58] TSA Policy Changes:
A subtle yet impactful policy change by the TSA has eliminated the mandatory shoe removal at security checkpoints for most travelers, excluding specific groups. Gary Left from "View from the Wing" critiques this move, suggesting it was an unnecessary response to the singular 2001 shoe bomb plot and reflects poor risk management.

Implications:

• Traveler Experience: Enhanced convenience and reduced wait times improve overall passenger satisfaction.
• Security Effectiveness: Critics argue the change does not significantly enhance security, questioning the necessity of the policy shift.

[26:07] Australian Murder Trial Conclusion:
The episode concludes with a recap of a sensational Australian murder trial, where a woman was convicted of poisoning three relatives using beef Wellington laced with death cap mushrooms. The trial captivated the nation due to its intricate deception schemes and the high-stakes nature of the crime.

Key Points:

• Prosecutorial Strategy: The prosecution focused on the defendant’s deceptive actions rather than establishing a clear motive, effectively demonstrating guilt through her attempts to cover up the crimes.
• Public Fascination: The unusual nature of the crime, involving gourmet food and sophisticated deceit, fueled widespread media coverage and public interest.

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7. Closing Remarks

Neal and Toby wrap up the episode by inviting listeners to engage with Morning Brew Daily through emails and social media, while also teasing future content such as their new podcast, Everybody's Business. They acknowledge the production team and encourage listeners to stay tuned for more insightful discussions on business news impacting everyone.

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This episode of Morning Brew Daily offers a comprehensive exploration of significant current events, blending personal narratives with in-depth analysis of economic and market trends. From the explosive potential of Amazon Prime Day to the intricate dance of international trade policies and the cultural phenomenon of anime, Neal and Toby provide listeners with valuable insights to navigate the complex business landscape.

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, Amazon Prime Day is back. So this Entire podcast is 30% off.

[Toby Howell]

Then remember the 90 day pause of liberation Day? Tariffs expiring tomorrow. Well, Trump moved the goalposts again. It's Tuesday, July 8th. Let's ride.

[Neal Freyman]

Toby's back. Kyle filled in for you yesterday and as always, knocked it out of the park. But Toby, we got to know. What were you doing that was so important that you needed an extra day of break?

[Toby Howell]

I proposed to my girlfriend, Neil, which means I don't have a girlfriend anymore, but a fiance. Two big takeaways from the weekend were, first and foremost, best couple of days of my life. Her family flew out and surprised her. All her friends were there. My sister planned a trivia night in a field day for us. So fun. But the other big takeaway is that I have the best in office small talk. Locked and loaded for the rest of this week. Anytime someone says, hey, how was your break? I can hit him with, oh, it was good. Got engaged. I'm going to be a first five minutes of the Zoom Call celebrity for the rest of the week. But yes, if you want to see pics, check out my Instagram. So happy to finally get the upgrade from boyfriend and girlfriend to fiance.

[Neal Freyman]

And I have to add, you're not the only one on our team who's officially off the market or who has some good small talk fodder. Olivia Graham also got engaged two weeks ago. I can hear the bells.

[Toby Howell]

And now a word from our sponsor, Mortgage matchup. Neal, would you say you're a borrower?

[Neal Freyman]

Yes, in the sense that I did plan to give you your phone charger back.

[Toby Howell]

You've had my phone charger this whole time? I. I was talking about Mortgage Matchup.

[Neal Freyman]

But yes, Mortgage Matchup powered by United Wholesale Mortgage, they help borrowers connect with independent mortgage brokers in their area. That way, regardless of where they are in their home buying journey, they get the help they need to feel comfortable and confident throughout the process.

[Toby Howell]

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[Neal Freyman]

That can save you thousands of dollars.

[Toby Howell]

So you can buy a new phone charger. I want mine back.

[Neal Freyman]

And I want our listeners to check out mortgage matchup.com to speak to a home loan expert. That's MortgageMatchup.com disclaimer United Wholesale Mortgage LLC equal housing lender and MLS number 3038 license in all 50 states and the.

[Toby Howell]

District of Columbia well, we haven't said the T word what feels like a while, but tariff tensions ratcheted back up yesterday as Trump lobbed out some more levies. Technically, tomorrow, July 9, was the deadline from Trump's original Liberation Day tariff pause. But in a White House press conference, press secretary Caroline Levitt announced that Trump will sign an executive order pushing that deadline to August 1st. Trump also targeted two major partners threatening 25% tariffs on Japan and South Korea yesterday, and later he released identical letters notifying the leaders of Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Serbia, Bosnia, Indonesia, Cambodia and Bangladesh of new tariffs ranging from 25 to 40%. Despite the White House's pledge to deliver 90 deals in 90 days, global trade remains just as murky as it was back in April, with deadlines shifting and many talks still in limbo. Outside of the new tariff rates announced yesterday, the only finalized agreements so far are with the UK and Vietnam. While EU negotiators scramble to finalize a bare bones deal, talks with other key partners like Mexico remain unresolved. Trump also took aim at BRICS nations yesterday, Brazil, Russia, India, China and South Africa, with threats of additional tariffs ahead of their upcoming summit. Neal Treasury Secretary Scott Bessant told CNBC yesterday he expects several announcements in the next 48 hours. So it looks like trade policy is back front and center again.

[Neal Freyman]

There is a lot going on yesterday. The big picture, the bottom line is that this is Trump buying time for more negotiations. In many ways, we are back to April 2, because if you look at the specific tariff rates that are being threatened against all of the countries that you mentioned, they are very much in line with those announced on Liberation Day. Take Japan, for example. They were going to be hit with a 24% reciprocal tariff. Now on August 1, they are being threatened with a 25% tariff. Same with South Korea. 25%, 25% go down the line. The margin of difference in percentage points is between as anywhere between 10 for all of those countries. So in many ways we have just reverted back to a few months to Liberation Day. But the market response was different. It seems like investors have learned a bit. Perhaps it's that taco trade that Trump always chickens out and that these tariff rates that are being threatened never actually come to pass. Investors have learned their lesson back then after Liberation day, stocks tanked $6 trillion. Yesterday they did fall. S&P was down 0.8%. Not as devastating.

[Toby Howell]

Yeah, we did see some specific companies like automakers that have exposure to South Korea and Japan have a little bit of a rough day. But yeah, it does look like the analysis here from people familiar with trade negotiations is that the President Trump is trying to light a fire under these trade partners that he thinks aren't moving quick enough to strike deals with them. But the one of the headline, you know, news here is that two of our closest allies are Japan and South Korea. So levying those tariffs, those 25% tariffs against those two, especially as we are trying to cooperate with them when it comes to, you know, semiconductor manufacturing stuff like chip building energy and, and the like, when we are taking on a China that does, you know, throw a wrench in a lot of people's conception of global free trade right now because South Korea and the United States have had this free trade agreement dating back to 2012 and, and these new tariffs violate that free trade agreement. So it does call into question the entire value of engaging in a free trade agreement with the United States. Because if you can violate it with a close ally like South Korea, then why would you ever sign a deal with the United States?

[Neal Freyman]

And a couple of big business leaders who represent many firms sounded off and their, their central frustration was that we have more uncertainty. So Jake Colvin, who's the president of the National Foreign Trade Council represents large US Firms, said the President's strateg uncertainty is producing some short term results. But continuing to threaten exorbitant tariff rates is just paralyzing for business decision making and erodes trust with our allies and major trading partners. Going on over to the chair of the Institute of Supply Management's manufacturing business survey, Sue Spence, she said whatever deals they're going to be, let's just ink it and move on. Because all the uncertainty is keeping businesses from investing the good news is that from all of this, these tariff threats and actual implementation over the past few months, we have yet to see inflation rise. Cpi, the Consumer Price Index, has come in lower than expected for a few months now. We'll see whether these new trade threats will change the equation, but essentially this is just kicking the can down to August 1st. So I'm sure we will have more conversations in a few weeks. Today would be a great day to work from home, if you can manage it. Amazon Prime Day begins and you don't want your boss looking over your shoulder as you scoop up enough discounted electronics to fill a Best Buy. Now in its 10th year, Amazon Prime Day has become a sales behemoth that drives even more spending than Black Friday. In fact, Adobe projects that online spending during the Amazon Prime Day event will grow to nearly $24 billion this year, or the equivalent of two Black Fridays. And that's for a number of reasons. One, because Amazon Prime Day is no longer just one day or even two, it's four extending 96 hours for the first time ever. And it's no longer just Amazon offering deals. Most other major retailers like Walmart and Target have piggybacked on the trend, running their own sales events in conjunction with Amazon this week. So the ingredients are there to juice spending an expected 28% over last year when people spent $14.2 billion during Amazon Prime Day's two day event. If you're already thinking about what to order, Amazon gave a sneak peek that includes up to 50% off some apparel and shoes, up to 40% off TVs, vacuums and Samsung tablets, and up to 30% toys off toys, fragrances and away suitcases. Toby America loves nothing more than a made up shopping holiday.

[Toby Howell]

It's completely made up and yet now it's bigger than Black Friday, which is admittedly kind of a made up holiday as well. But yeah, Prime Day is expected to generate $23 billion in gross merchandise of value, according to bank of America. Compare that to its big competitor Walmart. Walmart's entire US E Commerce operation reported $79 billion in sales. So four days of Amazon prime is about as big as a quarter of all of Walmart's e commerce sales. So right now this is not a a fair fight. But that being said, a lot of e commerce operators are saying we are pretty happy now that there's that Amazon is not the only game in town that these other brands like Walmart feel like they can go toe to toe and offer their own sales period. They're Investing more resources into targeting a Walmart plus and targeting these online operations from Walmart. Because right now it looks to be growing at a rate that does warrant that additional investment. So it is good to have multiple games in town. It's good to have multiple places to find deals, not just Amazon prime, even though Amazon is still the biggest game in town.

[Neal Freyman]

Yeah. In terms of their subscriptions, 73% of respondents to a Jefferies consumer survey said they have a Prime membership, which is really what this whole thing is about. You want Amazon's trying to get people on its subscription, its prime subscription. 26% to that survey said they had Walmart plus, which is Walmart's rival to Amazon prime and just 22% for Target Circle. Another thing to watch for Amazon Prime Day is whether people use Rufus. And if you're wondering what the heck Rufus is, it's Amazon's chat bot that you'll see pop up as you are searching for whatever you're going to buy today or over the next week. And it's supposed to be Amazon's big launch into AI and helping you search for all the things that you want to find and give you product recommendations. And to help you summarize the very complex Amazon Marketplace, it was launched. Rufus was launched just a few days before Prime Day last year. People complained like it wasn't certainly ready for primetime. I don't know whether it's ready for primetime one year later. I was playing with it before this show. Yeah. Instead of prepping. But it was very, it seemed, it felt to me like a chat bot from 2013. Just very basic interface and was getting a lot of things wrong when I was asking it questions.

[Toby Howell]

Yeah, I mean, I was looking over your shoulder as you were playing with it and you asked it, hey, come up with some sales for me based on my shopping habits. And what it did was return the.

[Neal Freyman]

Status of your order you're not supposed to see.

[Toby Howell]

Yeah, I wasn't supposed to be looking over your shopping habits, but yeah, it just wasn't necessarily working. A lot of people are saying that Amazon's traditional search engine with its filters that you can toggle about price and you know, when you want it delivered, are a lot more efficient than going through this chat bot rigmarole. So, yeah, Prime Day is big. I don't know if it's going to be, you know, the big coming out party that they want for Rufus, but certainly a lot of sales are going to be generated.

[Neal Freyman]

Elon Musk is once again launching a side quest into politics and Tesla Shareholders are once again mounting a revolt. Tesla stock fell nearly 7% yesterday, losing $68 billion in value after its CEO announced over the weekend he would form the America Party, a third political party in the US to give voters a third option besides Republicans and Democrats. As Taylor Swift says, I think I've seen this film before. Tesla shares were down more than 40% for the year as Musk spent less time working on the automaker and instead focused on cutting costs in the federal government through Doge. When Musk left his role in the White House at the beginning of May, Tesla's Stock shot up 22% for the month. So as Elon's attention goes, so goes Tesla stock. And this latest foray into building a new political party is frustrating investors who are desperate for Musk to lock in the on turning around what's been a miserable year for the struggling company. Tech analyst and Tesla supporter Dan Ives summed up the sentiment, writing very simply, musk diving in deeper into politics is now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors slash shareholders want him to take. During this crucial period. For the Tesla story, Ives even floated that the board will now have to get involved, telling Bloomberg there's a line in the sand that he's now starting to cross the Toby, where does Tesla go from here?

[Toby Howell]

I don't know where they go, but it is certainly frustrating for Tesla shareholders, especially because if you looked at Elon's feed over the last few days, he did this poll saying should I create a new political party? And when he first dropped it, that the yes category got like 80% of the vote. But then over time as I think a lot of Tesla bulls started to weigh in, it slowly started inching downwards to only 65% answering yes. So technically that is the majority. But again I think it shows that Wall street certainly does not agree with this approach because it is so frustrating to see his attention that was already fractured between a bunch of companies now being fractured even further in a money losing enterprise, which is politics, like there is not going to be a lot of money coming in from creating a party. Why would he create a party? He does think that focusing on certain congressional races would help tip things, especially when the votes in the Senate and in Congress right now are so razor thin. So he just wants to get one or two seats here and there and thinks that that can shift thing in advance his agenda of trying to reduce the deficit and also bring back some of these subsidies for some of his companies. But yeah, if you are a Tesla shareholder. You're just saying focus buddy, like we need you here because Tesla is not in a super good spot right now.

[Neal Freyman]

No, it's in a super bad spot over break On Thursday, Tesla released its Q2 delivery numbers. They were 13% lower than the year before, which was about the same as the year over year decline in the first three months of the year. It's getting its butt whooped in China. In May, Tesla sold fewer than 40,000 cars in China, which is down 30% from the same month a year earlier. It used to have 11% market share in China. Now that is down to 40% 4%. Its local competitors are eating its lunch. And the reason I mentioned China is that this is its crucial growth market. This is its second biggest market for revenue compared to the United States and it's its biggest export and production hub. Looks like what's happening to Apple in China, where it went from number one in the pecking order to number three being leapfrogged by domestic companies, is happening as well in China for Tesla. And its robo taxi rollout two weeks ago left a lot to be desired. So the last thing that shareholders want Elon Musk to do is take even more attention away from turning around this company.

[Toby Howell]

We're going to take a quick break, but up next we have Toby's Trends.

[Neal Freyman]

Toby, how good of a trader would you say you are?

[Toby Howell]

I've never betrayed anyone.

[Neal Freyman]

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[Toby Howell]

Oh, trader.

[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]

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[Toby Howell]

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[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]

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[Toby Howell]

If growing up your power level was over 9,000 and you Naruto ran from class to lunch, you may have been on the fringes of your high school scene. But now your anime watching habits are far from niche as major streamers have thrusted a once fringe genre into the global mainstream. A trend that I want to talk about on today's edition of Toby's Trends. As the Anime Expo wrapped up in Los Angeles this past weekend, Netflix revealed a staggering stat. Over half of its global users, amounting to 300 million individual viewers, now watch anime. That announcement is corroborated by a recent study from the marketing firm dentsu that found 48% of global anime viewers subscribe to Netflix specifically to watch anime. Meaning the King of the streamers is also the number one destination for anime lovers. It got to that top spot by 1 having a lot of anime content and 2 having a lot of good anime content. 33 anime shows made an appearance in Netflix's global top 10 non English rankings last year, more than doubling the figure from three years prior. And viewership of anime in general on the platform has also tripled over the last five years. If you look at Netflix charts right now, you'll see K Pop Demon Hunters, an anime about 2K pop stars who, you guessed it, moonlight as Demon Hunters sitting at the top of the most streamed movies on Netflix. A song from the show is also charting at number one on the US Spotify charts, a feat that not even K Pop kings BTS have pulled off. So Neil in Total anime content was viewed over 1 billion times globally on the platform last year. That is a cultural juggernaut. Should we host a Sakamoto Days or Cyberpunk Edgerunners to Watch party?

[Neal Freyman]

I'll tell you, I start. I need to start watching these shows. They look absolutely incredible. Why is anime blowing up right now? You mentioned those Staggering growth numbers for over just the past four years. Well, let's look to that Dentsu survey. Three in ten anime viewers according to that survey say they're turning to anime because of fatigue with repel competitive Hollywood franchises. And what they're seeing in anime is more storytelling depth, emotional nuance, cultural diversity, unique worlds and stories. Things that you don't get from the rehashed IP that typical American Hollywood productions put out on TV and movies. And they're just finding new, interesting stories that speak to more adult lived experiences. And I got to say, that's a very compelling proposition right now at a time when it feels like you're watching the same show over and over and over. Yeah.

[Toby Howell]

And when it comes to Western animation versus anime, Western audiences are more typically accustomed to familial fare, family oriented movies like from Pixar. That is what animation in America feels like. So anime audiences are much more catered to adult themes and, you know, these, these storylines that you wouldn't take your family to go see. So that is another reason why they're bringing in these big Western audiences. The other thing too is anime fans like to spend a lot of money. 40% of American viewers reported spending over $200 on anime merchandise in the past year. So this fandom runs very deep. It's not just toss it on Netflix. It is like this thing that is courtier identity. You buy merchandise, you buy the goods. And that is another reason why these streamers are no doubt happy to welcome this audience with, with open arms. I feel bad for Crunchyroll though, because Crunchyroll was the original anime purveyor in the United States. It is the go to place for anime lovers. But now it has been leapfrogged by Netflix, Disney plus and Prime Video. It's now like it is the fourth most popular option for streaming anime in the United States, which you know is tough when you kind of pioneered the medium in this western audience.

[Neal Freyman]

But Netflix muscled in and it made this big bet and it is absolutely working. According to that Dentsu study, 48% of global anime viewers, when they want to watch anime, they turn on Netflix, putting it way ahead of other streamers like Disney plus 32%, Prime Video 29% and Crunchyroll in fourth place. So this is a big win for Netflix and it's certainly going to tout this, these big subscriber numbers and these big viewing numbers for anime as it did over the weekend. It's going to invest even further.

[Toby Howell]

Let's spin to the finish with some final headlines. ByteDance may have found a workaround to get your screen time numbers back up up the TikTok owner is reportedly developing a spin off app for US based users. According to the Information, the US version of the app would hit app stores around September pending a sale of its operations to a group of non Chinese based investors. This saga dates back to 2024, when Congress passed a law banning TikTok under Joe Biden, but Trump has leaned on executive orders to prolong the deadline three times since the app briefly went offline back in January. Any agreement would still require the approval from the Chinese government, which remains locked in negotiations with the Trump administration over tariffs. But now it looks like a US Only version of the app is expected to be part of the calculus over this entire drama.

[Neal Freyman]

Do you know how long TikTok has been actually offline? One day earlier this year in January we'll see whether this dupe app will be popular. You know people will have to download this new app which probably won't contain TikTok secret sauce out algorithm because that's the one thing they don't want to give away in a sale. And the other mystery is who is going to buy this new version of TikTok and what the price will be. So still a lot of questions, but it looks like finally this is moving towards the end game, which we're all very happy about. You all know the beer industry has been on the struggle bus, but there is one standout Lionel Messi and a sea of middling MLS players. Michelob Ultra US store sales of Michelob grew by 3.1% in the 12 weeks ended June 14 over the year earlier, according to the Wall Street Journal. Meanwhile, sales of Modelo, Bud Light, Coors Light and Miller Light all fell during the same period. And last year, Michelob Ultra leapfrogged Bud Light to become the number two selling beer in America, right behind Modelo. Execs at AB InBev, Michelob's parent company, say the brand's ability to stay strong among those broader headwinds can be chalked up to its low carb, low calorie pitch that targets health conscious consumers and establishing a strong tie in with sports for those who play and for those who watch.

[Toby Howell]

Yeah, we've all seen a messy commercial about Michelob Ultra. They also had a pickleball commercial that ran during the Super Bowl. There's my daily shot. Yeah, pickleball mentioned. But a lot of industry watchers have said Michelob Ultra has separated itself from the pack because it's just been so consistent with that messaging. A lot of people do know it's skinny can. They do know it's low calorie appeal. And it does seem like the perfect beer for those days when you don't want something heavy or maybe you're watching a soccer game in the early morning hours. You don't necessarily need a heavy beer on the weekend. So that low alcohol volume, that health conscious image has made it so that it is now on the rise while everybody else in the industry seems like it's on the downward trend. Next time you pass through TSA to board a flight, your security line may be a little faster and a little less stinky. That's because effective yesterday, the TSA will no longer require passengers to remove their shoes at security checkpoints. If you are a child senior or have pre check, this rule was already a thing of the past, but despite no major announcement from tsa, the rule quietly went into effect on Monday. According to Gary Left from the aviation publication View from the Wing, the rule was never really necessary in the first place. The infamous shoe bomb plot from an American Airlines flight back in 2001 was a one off threat that Left says wouldn't have been that effective due to the amount of explosives involved, but also led to a whole security measure being designed around a single data point which he says is just poor risk management. But now the rule has been sunsetted, so keep those shoes on Neil. Keep those piggies from going to the market.

[Neal Freyman]

Pour one out for PreCheck. It'll be interesting to see how many people got TSA precheck so they wouldn't have to take off their shoes. Perhaps in some instances it's also a much faster line than the than the regular security line, but I'm sure a decent amount of people got this got pre check to not have to take off their shoes. Now that that rule is gone, we'll see whether pre check can hold its muster against clear and just the regular security line. When are liquids coming next? That's what we all want to know. Okay, Finally, a stranger than fiction trial that gripped the entire country of Australia for the last nine weeks has reached a dramatic conclusion. A woman was found guilty of murdering three of her husband's relatives and attempting to murder a fourth by inviting them over to her house for lunch and poisoning them with a dish of beef Wellington laced with death cap mushrooms, which killed the three victims within a week. The prosecutor never named a motive, but proved the woman was guilty through the steps she took to cover up her crime, such as faking an illness that made it appear she ate the mushrooms and inventing a cancer diagnosis as justification for hosting a lunch in the first place. This case, understandably, was a national obsession in Australia, where newspaper outlets covered every last minutia and podcasts recapping the trial racked up millions of downloads.

[Toby Howell]

I mean, how could you not be obsessed with this case? It really was just a once in a generation storyline. The prosecutor here had a unique approach where they didn't really focus on a motive for the actions at all, but they did dig into the four deceptions that they said were at the heart of the case. One, about the fact that she fabricated this cancer claim that was just nonexistent as a pretense to invite the relatives over for lunch. And then there's also that she didn't mean to put the mushrooms in and that it was just an accident the whole time. She also tried to make it seem like she was suffering from the same symptoms that death cap mushrooms poisoning that occurred in her victims. She was pretending she was sick as well. So every zigzag and turn of this story seemed more salacious than the last. And the fact that beef Wellington and mushrooms are at the center of it all made it so it captured national and global attention. So the case is finally wrapped up. We talked about it on the podcast when it first became national news because it just is so juicy.

[Neal Freyman]

That is all the time we have. Thanks so much for starting your morning with us and have a wonderful Tuesday. If you have any thoughts on today's episode, send an email with questions, comments, or feedback. Or congratulations to Toby 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, makeup. Better get an invite to the wedding. Devin Emery is our president and our show is a production of Morning Brew.

[Toby Howell]

Great show today, Neil. Let's run it back tomorrow. In our new podcast, Everybody's Business, we talk about the business news that concerns everybody.

[Stacey Vanek Smith]

From Bloomberg Businessweek, I'm Stacey Vanek Smith.

[Toby Howell]

And I'm Max Chavkin.

[Stacey Vanek Smith]

Each week we unpack what is happening on Main street and Wall street, all the streets. WrestleMania has taken over the US economy.

[Toby Howell]

Poetry that executives write on LinkedIn.

[Stacey Vanek Smith]

A little actual magic in our underrate.

[Toby Howell]

Story of the single greatest marketing campaign.

[Neal Freyman]

The music business has ever seen.

[Stacey Vanek Smith]

I decided to ask people how they felt about the penny going away. Listen to everybody's business. Wherever you get your podcasts.