Shipping Industry's Warning on Supply Chains & ‘60 Minutes’ vs. Paramount

Summary

Morning Brew Daily Podcast Summary
Episode: Shipping Industry's Warning on Supply Chains & ‘60 Minutes’ vs. Paramount
Release Date: April 29, 2025

Hosts: Neal Freyman and Toby Howell

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Introduction

In this episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into pressing issues affecting the global economy and media landscape. From alarming warnings in the shipping industry to high-stakes corporate drama involving 60 Minutes and Paramount, the duo provides insightful analysis and expert commentary on these critical topics. Additionally, they explore emerging trends in real estate, significant political shifts in Canada, energy challenges in Spain, competitive maneuvers in the satellite internet sector, and a peculiar incident on Mount Fuji. Throughout the episode, notable quotes and key insights are highlighted to offer a comprehensive understanding of each subject.

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Shipping Industry's Warning on Supply Chains

Timestamp: [05:20 - 07:40]

Neal and Toby begin by addressing the escalating concerns within the shipping industry regarding supply chain disruptions. The conversation highlights the severe impact of sustained tariffs on Chinese goods, implemented in early April under President Trump's administration.

• Declining Shipments and Increased Cancellations:
  Neal cites logistics company Flexport, noting a 60% plunge in cargo shipments and a 60% increase in canceled voyages in April compared to any month during the COVID-19 pandemic. Logistics executive John McCown emphasizes the gravity of the situation, stating, "Container traffic from China to the US is collapsing." (06:15)

• Economic Implications:
  Apollo's chief economist, Torsten Slok, warns of a supply shock comparable to the pandemic, predicting empty shelves in US stores within weeks. Slok elaborates, "The consequence will be empty shelves in US stores and COVID-like shortages for consumers and firms." (06:45)

• Industry Preparedness and Future Risks:
  Toby adds that many companies have been stockpiling inventories, which may temporarily mask the impact. However, the true strain is expected to surface during peak shopping seasons as inventories dwindle. Neal underscores the fragility of the current system, highlighting that ports are not equipped to handle sudden surges in goods if tariffs are lifted, potentially worsening the situation before improvement can occur. (05:53)

Key Takeaway: The sustained tariffs on Chinese goods are severely disrupting US supply chains, leading to significant cargo declines and increased shipping cancellations. The resulting shortages could mirror the challenges faced during the COVID-19 pandemic, with broader economic repercussions including layoffs in trucking, logistics, and retail sectors.

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‘60 Minutes’ vs. Paramount: Corporate Tensions

Timestamp: [07:40 - 12:19]

The episode shifts focus to the tumultuous relationship between the renowned news program 60 Minutes and its parent company, Paramount. The discussion centers around internal conflicts arising from Paramount's attempts to oversee editorial content amidst a high-stakes merger.

• Departure of Bill Owens:
  The controversy ignited when Bill Owens, a longtime executive producer of 60 Minutes, resigned, citing compromised independence due to Paramount's corporate influence. Owens stated, "I have lost the independence that honest journalism requires." (08:20)

• On-Air Criticism by Scott Pelley:
  In an unprecedented move, 60 Minutes correspondent Scott Pelley publicly criticized Paramount during a broadcast. He remarked, "Our parent company, Paramount, is trying to supervise our content in new ways." (09:10) Pelley emphasized the importance of editorial autonomy, highlighting the integrity and legacy of the show over its 57-year history.

• Merger Complications:
  Paramount's planned merger with Skydance Media, valued at $8 billion, is under scrutiny due to regulatory hurdles and a $10 billion lawsuit filed by the Trump administration over an edited interview of Kamala Harris. The merger's approval is contingent upon resolving these legal challenges, with the FCC's stance pivotal in determining the outcome. Neal elaborates, "The sale to Paramount is jeopardized by ongoing legal disputes, risking the entire $8 billion deal." (10:00)

• Nathan Fielder's Critique:
  Adding to the corporate drama, comedian Nathan Fielder criticized Paramount Plus for removing an episode of his show, framing it as a move to sanitize sensitive content. This public dissent further strains the relationship between creative talent and corporate oversight. (11:30)

Key Takeaway: Paramount is grappling with internal conflicts as it seeks to merge with Skydance Media amidst increasing criticism from key talent like Bill Owens and Nathan Fielder. The tension highlights the delicate balance between maintaining editorial independence and executing high-value corporate mergers, with significant implications for the future of 60 Minutes and Paramount's broader media strategy.

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Washington Commanders' New Stadium Plans

Timestamp: [12:19 - 16:37]

Neal and Toby discuss the Washington Commanders' ambitious plans to relocate from Landover, Maryland, to Washington D.C., outlining the proposed development and its financial implications.

• Development Proposal:
  The NFL franchise aims to construct a $3.7 billion development on the former RFK Stadium site, which includes a new stadium with a roof to accommodate various events, such as concerts and potentially a Super Bowl. Josh Harris, the team's owner, envisions the stadium as a multi-purpose venue integrated into a larger urban revitalization plan encompassing entertainment, residential, and retail spaces. Harris remarked, "This stadium will be more than just a sports venue; it'll be a hub for community and economic growth." (15:00)

• Financial Structure and Public Funding:
  While Josh Harris commits $2.7 billion towards the project, $1 billion is expected from public funds. The plan involves rebranding the existing ballpark fee—a tax on businesses earning over $5 billion—to secure the necessary capital. Critics, including Neal, express concerns over the reliance on taxpayer money, especially considering ongoing nationwide resistance to public funding for stadiums. Neal points out, "There has been pushback across the country against directing public funds towards new stadiums, and D.C. is no exception." (16:00)

• Economic and Community Impact:
  Proponents argue that the new stadium will stimulate job creation and economic activity in the area. The integration with the surrounding district is intended to foster a renaissance in D.C.'s sports and entertainment sectors. Toby adds, "The stadium is a cornerstone for the broader development plan, aiming to rejuvenate the RFK Stadium area and bring new opportunities to the community." (15:30)

Key Takeaway: The Washington Commanders' proposed stadium in D.C. represents a significant investment in the city's infrastructure and economy. While the development promises extensive benefits, including job creation and urban revitalization, it faces substantial challenges related to public funding and political approval, reflecting broader national debates over the use of taxpayer money for private sports ventures.

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Toby's Trends: Mobile Home Flipping

Timestamp: [18:48 - 22:21]

In the segment titled "Toby's Trends," the hosts explore the burgeoning market of mobile home flipping, underscoring its emergence as a lucrative and resilient real estate strategy.

• Market Growth and Investment Appeal:
  Mobile home flipping involves purchasing underpriced or rundown mobile homes, renovating them, and reselling for profit. This sector has gained traction due to its lower entry costs compared to traditional homes and the high demand for affordable housing. Neal notes, "Mobile homes are more approachable for investors because of their affordability and the scalability offered by factory-built structures." (20:00)

• Institutional Interest:
  Institutional investors, including private equity firms like Blackstone, have increasingly entered the mobile home market, attracted by the 22% annual compounded returns, the highest in the real estate sector. This shift from individual to institutional investment underscores the financial viability and growth potential of mobile home flipping. Thorsten Slok comments on the sector's attractiveness, "Institutions see mobile homes as a diamond in the rough with significant upside potential." (20:30)

• Tax and Depreciation Factors:
  Traditionally classified as personal property, mobile homes benefited from lower property taxes and insurance costs but were subject to depreciation akin to vehicles. However, the market has evolved as mobile home prices have appreciated by nearly 60% from 2018 to 2023, transforming them into valuable assets comparable to traditional homes. Neal reflects, "The appreciation of mobile home values has flipped the script, making them a smart investment despite their initial classification." (21:00)

• Broader Housing Implications:
  The rise in mobile home flipping highlights broader housing affordability challenges in the United States. As conventional housing becomes increasingly out of reach for many, mobile homes offer a viable alternative, meeting essential needs while presenting substantial investment opportunities. Toby adds, "The surge in mobile home flipping not only speaks to investor confidence but also to the urgent housing shortages facing Americans today." (21:55)

Key Takeaway: Mobile home flipping has emerged as a profitable and accessible segment of the real estate market, driven by rising home prices, high demand for affordable housing, and increasing interest from institutional investors. This trend reflects broader economic pressures on housing affordability and presents both opportunities and challenges for investors and the housing market.

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Canadian Election Upset: Mark Carney Elected Prime Minister

Timestamp: [22:21 - 23:18]

The hosts cover the unexpected victory of Mark Carney in one of Canada's most significant elections in decades, marking a dramatic shift in the country's political landscape.

• Election Dynamics:
  Former central banker Mark Carney, with an illustrious background leading both the Bank of Canada and the Bank of England, secured the prime ministerial role in a stunning turnaround. Initially trailing with a significant deficit, Carney's campaign gained momentum as anti-Trump sentiments influenced voter behavior. Neal highlights, "Carney leveraged his economic expertise and capitalized on Canadian disapproval of President Trump's policies to galvanize support." (22:45)

• Impact of U.S. Relations:
  President Trump's imposition of tariffs and threats to annex Canada as the 51st state played a pivotal role in swaying Canadian voters towards Carney. Trudeau’s Conservative opponent was leading by 25 points before Trump's aggressive stance shifted public opinion. Carney's commitment to standing up against Trump's policies resonated with the electorate, leading to his remarkable comeback. Neal cites Trump acknowledging his influence on the election: "Until I came along... I've thrown the election into a close call." (23:00)

• Future Challenges:
  As the newly elected prime minister, Carney faces the task of navigating Canada's economy amid strained U.S.-Canada relations and lingering global uncertainties. His extensive experience in financial governance positions him to steer the country through potential economic stagnation and geopolitical tensions. Neal notes, "Carney will have to utilize his economic acumen to address Canada's future challenges in a complex international environment." (23:10)

Key Takeaway: Mark Carney's unexpected election as Canada's prime minister underscores the significant impact of international relations, particularly with the United States, on domestic politics. His victory reflects the Canadian electorate's desire for strong economic leadership and resilience against external pressures, setting the stage for a new era in Canada's political and economic strategies.

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Spain's Massive Power Outages Amid Renewable Energy Push

Timestamp: [23:18 - 28:53]

Neal and Toby discuss the large-scale power outages that recently struck Spain, analyzing the vulnerabilities of the country's renewable energy infrastructure.

• Power Outages and Immediate Effects:
  Large parts of Portugal and Spain experienced significant blackouts, disrupting daily life by disabling traffic lights, halting planes, and stopping trains. Notably, American tennis player Coco Gauff's Instagram story captured the chaos at the Madrid Open during the blackout. Neal mentions, "The outages led to widespread disruption, highlighting the fragility of the power grid." (23:30)

• Potential Causes and Renewable Dependency:
  While initial speculation suggested a massive cyberattack, officials are still uncertain about the exact cause. However, the timing coincides with Spain's heavy reliance on renewable energy sources, which accounted for 43% of its power generation. Neal explains, "Spain's grid running entirely on renewable energy just two weeks ago underscores the challenge of balancing renewable sources with reliable storage solutions." (24:10)

• Challenges of Renewable Energy Integration:
  The incident has sparked debates about the sustainability and reliability of Spain's renewable energy strategy. Despite pioneering efforts to maximize renewable sources, the lack of adequate energy storage has made the grid vulnerable to unforeseen disruptions. Toby adds, "This blackout shines a harsh spotlight on the limitations of Spain's renewable infrastructure, especially regarding energy storage." (24:45)

• Long-Term Implications:
  The outages may prompt Spain to reevaluate its energy policies, potentially accelerating investments in energy storage technologies or diversifying energy sources to ensure grid stability. Neal concludes, "The need for a more resilient energy grid is evident, and Spain's experience could serve as a critical lesson for other nations pursuing aggressive renewable energy goals." (25:15)

Key Takeaway: Spain's recent power outages have exposed significant vulnerabilities in its renewable energy infrastructure, particularly concerning energy storage and grid reliability. As the country continues to expand its renewable energy portfolio, addressing these challenges is crucial to prevent future disruptions and ensure a stable energy supply.

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Space Race Intensifies: Amazon Challenges Starlink with Kuiper Internet Satellites

Timestamp: [25:38 - 26:29]

The conversation turns to the competitive arena of satellite internet, focusing on Amazon's ambitious project to rival SpaceX's dominant Starlink constellation.

• Amazon's Kuiper Project:
  Amazon has launched its first batch of Kuiper Internet satellites, aiming to establish a global high-speed internet network. This move signifies Amazon's entry into a space dominated by SpaceX, which currently operates approximately 8,000 Starlink satellites. Neal summarizes, "Amazon's Kuiper project is positioning itself as a formidable competitor to SpaceX's Starlink, hoping to capture a significant share of the satellite internet market." (25:00)

• Strategic Integration with AWS:
  Amazon plans to integrate Kuiper's connectivity with its extensive cloud platform, Amazon Web Services (AWS), to enhance service offerings and leverage its existing customer base. This strategic approach aims to differentiate Kuiper by providing seamless cloud integration, potentially attracting businesses and consumers alike. Neal remarks, "By integrating Kuiper with AWS, Amazon seeks to create a unique value proposition that could set it apart from SpaceX." (25:45)

• Financial and Operational Challenges:
  Establishing a competitive satellite constellation requires substantial investment, with estimates suggesting an initial $17 billion for the first generation of 3,200 satellites. Additionally, maintaining the network could incur annual costs between $1 billion to $2 billion. Toby highlights, "The financial burden of scaling Kuiper poses a significant challenge, especially against the established infrastructure of Starlink." (26:00)

• Market Positioning and Future Prospects:
  Despite the high costs, Amazon believes its integration with AWS and robust financial backing will enable it to effectively challenge SpaceX's monopoly in the satellite internet sector. However, the success of this venture depends on Amazon's ability to scale efficiently and offer compelling services that meet or exceed market expectations. (26:10)

Key Takeaway: Amazon's launch of the Kuiper Internet satellites marks a strategic bid to penetrate the satellite internet market dominated by SpaceX's Starlink. While the venture faces substantial financial and operational hurdles, Amazon's integration with AWS positions it to offer unique services that could potentially disrupt the existing market dynamics.

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Mount Fuji Rescue: A Case of Phone Addiction

Timestamp: [27:07 - 28:53]

The hosts recount an unusual incident involving a university student who repeatedly endangered himself on Mount Fuji due to his obsession with retrieving a lost phone.

• Incident Overview:
  A 27-year-old student ventured to climb Mount Fuji outside the official climbing season, leading to two separate rescue missions after losing his phone each time. The first incident involved a lost crampon, while the second occurred after the student risked his safety to recover his phone, suffering from altitude sickness in the process. Neal comments, "This situation underscores the extremes of phone addiction, prioritizing a device over personal safety." (27:30)

• Public and Social Media Reaction:
  The student's actions sparked outrage on Japanese social media, with many criticizing the wastage of rescue resources and questioning his judgment. Neal notes, "The backlash highlights societal concerns over the misuse of emergency services and the pervasive influence of smartphone dependence." (27:45)

• Regulatory Context:
  Mount Fuji imposes strict regulations on climbing seasons to manage safety and environmental impact. The student’s decision to climb outside these periods contributed to overcrowding and limited rescue resources, exacerbating the situation. Toby adds, "Climbing outside the designated seasons not only violates regulations but also strains rescue operations, putting both the climber and responders at risk." (28:10)

• Broader Implications:
  This incident serves as a cautionary tale about the potential dangers of prioritizing digital connectivity over real-world safety and well-being. It also raises questions about the responsibilities of individuals in adhering to safety protocols in popular climbing destinations. (28:30)

Key Takeaway: The Mount Fuji rescue incidents highlight the extreme consequences of smartphone addiction, emphasizing the importance of prioritizing personal safety over digital devices. The event also underscores the need for stricter adherence to climbing regulations to prevent unnecessary risks and resource expenditures.

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Final Headlines

Timestamp: [28:53 - End]

Before concluding, Neal and Toby touch upon other significant global events:

• France’s Mount Fuji Incident Recap:
  Reiterates the mounting concerns over phone addiction and emergency resource management, emphasizing the cultural and regulatory aspects that contributed to the incident.

• Canada’s Political Shift:
  Briefly restates Mark Carney’s election and the implications for Canada’s economic and political strategies moving forward.

• Amazon’s Space Endeavors:
  Summarizes the competitive landscape between Amazon and SpaceX in establishing comprehensive satellite internet networks.

Conclusion

Neal and Toby wrap up the episode by expressing gratitude to listeners and encouraging feedback via email. They also acknowledge the production team behind the podcast, underscoring the collaborative effort in delivering insightful and engaging content.

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Notable Quotes:

• Torsten Slok on Supply Chains:
  "Container traffic from China to the US is collapsing." (06:45)

• Scott Pelly on Paramount’s Influence:
  "Our parent company, Paramount, is trying to supervise our content in new ways." (09:10)

• Josh Harris on Stadium Vision:
  "This stadium will be more than just a sports venue; it'll be a hub for community and economic growth." (15:00)

• Neal on Mobile Home Investment:
  "The appreciation of mobile home values has flipped the script, making them a smart investment despite their initial classification." (21:00)

• Mark Carney’s Strategy:
  "Carney will have to utilize his economic acumen to address Canada's future challenges in a complex international environment." (23:10)

• Neal on Renewable Energy Challenges in Spain:
  "Spain's grid running entirely on renewable energy just two weeks ago underscores the challenge of balancing renewable sources with reliable storage solutions." (24:10)

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This comprehensive summary encapsulates the key discussions and insights from the April 29, 2025 episode of Morning Brew Daily. Neal and Toby effectively navigate through complex topics, offering clarity and depth to their analysis, making the podcast a valuable resource for listeners seeking to understand the intricacies of today's economic and media landscapes.

Transcript

[Toby Howell]

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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, sailing across the Pacific, you're probably going to beat Google Maps ETA because there's no traffic.

[Toby Howell]

Then 60 Minutes spent a few of its minutes calling out its corporate owner as tensions rise ahead of a multi billion dollar merger. It's Tuesday, April 29th. Let's ride.

[Neal Freyman]

Toby welcome back. We need to hear all about Lond and running the marathon. First of all, how sore are you?

[Toby Howell]

I will tell you what a seven hour transatlantic flight post marathon leads to. Soreness levels I have never experienced. But the experience itself? Awesome. I ran the New York Marathon last year in the fans in London might be even rowdier. Maybe because they are a couple pints deep by that point, more so than the American counterparts. Also, way more costumed runners. I saw a guy dressed as Big Ben, Wonder Woman, a shark, the King, the Queen and I was in a corral with a guy wearing a full three piece Peaky Blinders suit and all he said to me was going to be a hot one out there. He beat me by the way. He passed me at like mile 22. I was like oh no. But yes. Great time. Loved every step. Even if I didn't run it as fast as I wanted to. On that note of competition though, I do hear that MBD is up for a little award.

[Neal Freyman]

We are. Which is pretty cool. We are a finalist in the Business Podcast category of the Shorty Awards, which is like the Oscars but a little more prestigious.

[Toby Howell]

Neil is right. They are kind of like the Oscars but for digital and social media content and brands. I didn't win a medal over in London, but you can help us and our whole team win some hardware by heading to vote at the link in the podcast description. Voting closes tomorrow night at 8:00pm Eastern Standard Time. Not London time, Eastern Standard. So send this to your friends, your family, to your Shorty and let's go win MBD a Shorty Award. And now a word from our sponsor, Planet Oat. Neal, you ever use one of those pens that just glides across the page smoothing perfect weight?

[Neal Freyman]

Writes like room temperature butter. Oh yeah. But I lost it back in college and have been chasing that high ever since.

[Toby Howell]

Well, I can't find that pen. But that feeling. That's what Planet Oat does for your kitchen. It's a smooth, satisfying Go to the kind of breakfast edition that makes everything better.

[Neal Freyman]

It's rich, creamy and crafted to blend like a dream. I'm talking coffee, cereal, baking, you name it. It handles it all without issue.

[Toby Howell]

And here's the kicker. If you go with unsweetened, it's got zero grams of sugar. Still smooth, still delicious. Plus it's dairy free, soy free, gluten free and peanut free.

[Neal Freyman]

So if your fridge is missing that one thing that ties the whole routine.

[Toby Howell]

Together, time to reach for the good pen. Get your hands on the Oat milk that has it all. Visit planetoat.com for more.

[Neal Freyman]

Remember during the early days of COVID when you'd go to a store and find pretty much nothing you needed on the shelves? A number of prominent economists and freight experts have come out in recent days saying we're headed for a similar scenario in a matter of weeks if the US is 145% tariffs on Chinese goods remain in effect. That's because traffic across the Pacific has become quiet, too quiet since President Trump slapped massive tariffs on China in early April. Cargo shipments have plunged by 60%, according to logistics company Flexport. Meanwhile, the number of so called blank sailings or canceled voyages has surged. In April, there were about 80 canceled sailings from China to the US which is 60% more than any month during the COVID pandemic, logistics exec John McCown said. Speaking of COVID some experts say we could see a supply shock on the same order as the pandemic in an ominous and viral research note. You don't really say viral next to a research note a lot, but Apollo's chief economist Torsten Slok wrote that quote, container traffic from China to the US Is collapsing. The consequence will be empty shelves in US Stores in a few weeks and Covid like shortages for consumers and for firms using Chinese products products as intermediate goods. And the effects could spill into the broader economy. Slok warned of major layoffs in trucking, logistics and retail, meaning the downside risks to the economy are significant. Toby for many Americans, the trade war feels pretty abstract for now, but if you listen to the people who work in freight and logistics, it could become real in just a few weeks.

[Toby Howell]

Yeah, it's getting real quiet on the port front on ships coming in from China to the US and the reason why these effects aren't going to be manifested necessarily is a lot of companies have been stocking up. They kind of saw this coming. So they've been building up inventories. But when you really might start to feel it is when they start needing to restock ahead of the busy holiday shopping season. But empty shelves is something that, you know, Americans are not necessarily used to seeing outside of COVID outside of these supply chain snarls. So it is definitely why this research note caused so many alarm bells to go off because the words American empty stuff just don't even really jive with each other. And the issue is, is that there's not necessarily a non rocky path forward because if you start to relieve these tariffs and if all these goods start to pour into the U.S. the ports can't sustain that either. So it's not necessarily like as soon as the tariffs are off, suddenly these supply chain issues are sorted out. It's, it's going to be, it's going to get worse before it gets better.

[Neal Freyman]

They're built to handle more stable flows rather than this, you know, dramatic up and down which we're seeing now and the timing of not be any worse because we are coming up on the peak shipping season for back to school and the holidays. I mean, Gary Cohn went on the Sunday shows on Saturday on Sunday morning. He is the former Trump trade advice, Trump economic adviser from the first term. And he explained that this whole thing of getting goods from China to the US is a very long process. It takes something like eight weeks to go from a factory in Shenzhen onto a ship in Shanghai and then you go to the port of Law, Long beach and then it goes into a truck and then it goes to another warehouse and then it goes finally to the retail store. That is a very long process. And companies have built these very long lead times and so they're ordering holiday goods in the next few weeks and months. And if they don't order them, then that means shortages come the time when everybody shopping.

[Toby Howell]

And then this viral deck from Apollo economist Slok also pointed out other areas of weakness in the US Economy. He looked at earnings revisions which have been coming in fast, fast and hot. Inbound tourism which is decreasing and then consumer confidence also tanking. So it wasn't just shipping, although he was, you know, looking very deeply into that. This guy put a lot of effort into this. He was looking at satellite images of US trade in the South China Sea just seeing what ships are leaving and what ships are coming in. And that's where you got a lot of data from as well. So again, you framed this by saying what are the tangible impacts of the trade war. It's looking like they are finally being felt and then eventually will manifest in empty shelves potentially. If this isn't worked out, the data.

[Neal Freyman]

Is clear that trade between the US And China is collapsing. Hapag Lloyd, which is the world's largest container shipping line, fifth largest container shipping line, canceled 30% of bookings out of China. The port of L A, which is one of the main gateways for Chinese goods coming into the United states, expects a 35% drop in import volumes in the next two weeks. So everyone is looking for some detente between the US And China in order to stave off what could be a pretty catastrophic catastrophic economic scenario coming in just the next few weeks, Things at Paramount are getting more awkward than Bill Belichick's Sunday morning interview. The media giant and parent company of CBS is getting bashed by its own top talent, including Nathan Fielder, as it tries to complete a high stakes merger and fend off a lawsuit by the Trump administration. The drama began earlier this month when longtime 60 Minutes executive producer Bill Owens left the show saying his independence was being compromised by the top corporate brass. Then Sunday night, the first 60 minutes at episode since Owens left, things escalated in a very unusual on air flogging. Correspondent Scott Pelly closed the show by telling viewers Paramount began to supervise our content in new ways. None of our stories has been blocked. But Bill felt he had lost the independence that honest journalism requires. No one here is happy about it, pelly added. Stories we pursued for 57 years are often controversial. Bill made sure they were accurate and fair. But our parent company, Paramount, is trying to complete a merger the Trump administration must approve. Prove it. What Pelly is claiming here, if you read between the lines, is that Paramount leadership, specifically chair Sherry Redstone, is worried that 60 Minutes is critical reporting of the Trump administration will jeopardize its sale to a company called Skydance Media, which is run by the son of Oracle's Larry Ellison. That $8 billion deal is still awaiting approval from the FCC. And another curveball to this saga is that CBS is also being sued by the Trump administration for $10 billion over an edited interview of Kamala Harris last year. There's widespread belief that the FCC won't Paramount sale until it settles with Trump over that lawsuit. Toby, what a mess.

[Toby Howell]

Yeah. What drama. I mean, ostensibly, ostensibly. On the surface, the FCC review should be completely unrelated to Trump's complaint, but a lot of people are reading between the lines and saying, yeah, the company believes the approval is contingent upon reaching this settlement so, of course, Sherry Redstone, who stands to benefit monetarily, she would net $2.4 billion for this sale, is going like, guys like, let's not screw this up. Tell me what you're going to say about Trump in your next stories. Her frustrations, you know, started growing over reports over cbs. His reports on Greenland and then the Ukraine war as well. So she tried to start to meddle with CBS is 60 Minutes is, you know, editorial authority, which caused all this tension within the newsroom. So Redstone has been trying to, you know, exit as her position as a media mogul. And yet these last few yards to get it to the finish line have just been racked with controversy.

[Neal Freyman]

Right. And the fact that 60 Minutes Scott Pelley would get up there and talk to viewers in this very candid way is extremely unusual. But 60 minutes has kind of a lot of weight to throw around. It's been around for 57 years. It is the crown jewel of CBS News, of Paramount's portfolio. It is the most watched TV news program in the US the third most watched non sports broadcast on TV. Again gets 8.5, 8.4 million viewers a night during its latest season. So they have a lot of weight that they can bring to bear, a lot of influence that they've accrued over the last, over the last six century, six decades. And then this is not the only drama going on at Paramount. The only talent that is criticizing the corporate owner, Nathan. This is a completely different field than 60 minutes. But Nathan Fielder was this comedian who had the show Nathan for you and now has a show called the rehearsal on HBO. His episode on Sunday night, he criticized Paramount plus for removing one episode of Nathan for you from 2015. And he basically portrayed Paramount Plus's Germany studios as, you know, a Nazi auditorium. And he said that they removed it over the sensitive Jewish content. He created this, this apparel brand called Summit Ice, which directs money towards Holocaust research. And he said that Paramount plus executives got a skittish over that, especially in Germany. So Paramount is getting it from all angles right now as it tries to complete this merger. And it's supposed to have happened by now, but it just can't get it done.

[Toby Howell]

Yeah, Nathan Fielder did it in the way only Nathan Fielder can. He did stop at the end of and go, this is real, by the way, what is happening to him. So you are right that things just got so cloudy for Paramount as they're trying to complete this merger, which again, it is to Larry Ellison's son. So technically, Larry Ellison is a bit big Trump supporter that you would think that the blessing would get signed off. But you know, all this editorial back and forth is is leaving this $8 billion jail in jeopardy. The Washington Commanders are pulling an UNO reverse card and returning to their home from a bygone era. The NFL franchise is packing up its home for the last 27 years in Landover, Maryland, and putting down roots in the nation's capital, unveiling plans for a new $3.7 billion development on the site of the old RFK Stadium, the place the franchise played its ball for more than three decades prior to 1997. The new stadium plans still need to be approved by the City Council, but the way has been paved by a bipartisan bill that transferred the RFK Stadium land to dc. After some lobbying on Capitol Hill by new owner Josh Harris and NFL Commissioner Roger Goodell late last year, the stadium itself hopes to be more than a stadium. The plans include a plaza district focused on entertainment, a riverfront district featuring housing, retail and dining, as well as a new residential neighborhood. But maybe the biggest inclusion is that of a humble roof. Harris said that he was torn about including one because he grew up watching the Commanders play outdoors. But a roof is a golden ticket towards hosting other big events like concerts or eventually a Super Bowl. Taylor Swift. Pick an event, pick an act, harris said at a press conference yesterday. Neal, this stadium to be still has some hurdles to navigate. While the Commanders are pledging to shell out 2.7 billion for the development, which would be the single largest private investment in DC's history, taxpayers would still be on the hook for $1 billion. So there might be some pushback to directing that amount of public funds towards a new stadium.

[Neal Freyman]

First of all, Josh Harris is on a winning streak. He bought this team for a little over $6 billion a few years ago, and he has sort of transformed the franchise from what was a very hapless situation under the former owner Dan Snyder, who everyone hated. They made the playoffs the past year, they've kind of turned around the product on the field, and now he secures this stadium deal, which he had been, you know, long pursuing as well as NFL Commissioner Roger Goodell. Those two hail from the DMV area, so they really wanted to bring this Washington football team back to dc. So he's kind of on a heater right now. You said there could be some hurdles due to that $1 billion in taxpayer funds. There have been pushback all around the country to new stadium deals that require public funding. It's happened in Kansas City, where the Chiefs are somewhat in limbo after voters in that county in Missouri rejected the extension of a sales tax that would fund the stadium. Now they don't know what they're going to do. So there will be. And they're already. Opposition has already been created in D.C. overspending $1 billion in public funds to a stadium that will ostensibly be open or be open eight days a year for NFL Sundays. Which is why you see this as part of a broader plan to rejuvenate area around RFK Stadium, which is not good.

[Toby Howell]

Now, that's definitely how Josh Harris, and you know, the mayor of D.C. is framing this project, is that it will bring jobs, will bring economic activity, which is usually the argument that most NFL owners bring when they're trying to make a new stadium. How are they going to fund the public portion of the deal, though? Officials want to finance that $1 billion by extending the ballpark fee, which was this tax on businesses earnings more than $5 billion that they put in place to fund construction bonds for the Nationals park, the MLB franchise in D.C. but now they're trying to rebrand that ballpark fee as a sports facilities fee and ask businesses to continue to pay that. That was supposed to expire in 2026, but now they're just saying, hey, we got a new stadium. Guys like you mind tossing us a few more of your tax dollars? So that is a sticking point here, though, because if you're a business and you expected this tax to go away, play. Now they're, now they're saying that we want you to continue it. That might be something that the city council kind of pushes it back on overall.

[Neal Freyman]

I mean, this is a, this would be a win for fans of D.C. sports. The fact that they're all kind of coming back to the city itself. I mean, the Commanders play in Landover, Maryland. It's very far away from the city. The Capitals and the Wizards were threatening to leave to Virginia, but the mayor stepped in and said, we're going to refurbish, cap the stadium in downtown with 500. $500 million. So now staying, and now if the Commanders come back, seems like there could be a renaissance in D.C. sports.

[Toby Howell]

Up next, I got a little Toby's trends for you. Tell me, Neil, as one of the sweatier men I know. Excuse me, let me finish. As one of the sweatier men I know, have you considered trying mizzen and mains performance fabric dress shirts?

[Neal Freyman]

I do not accept the premise. But yes, they've done an incredible job of re engineering classic styles with performance.

[Toby Howell]

Fabrics because you're so sweaty.

[Neal Freyman]

Because I appreciate looking my best. As we all know, when you look your best, you perform your best.

[Toby Howell]

Their dress shirts are machine washable and wrinkle resistant so you can wear them every day.

[Neal Freyman]

They've also got breathable wool blazers and high stretch pants that are ideal for work, the weekend and really anywhere else.

[Toby Howell]

So don't sweat it when it comes to comfort.

[Neal Freyman]

Enough Head to mizzen and maine.com to grab your new favorite dress shirt and get 20% off your first purchase with code BREW20. That's mizzen and maine dot com and code BREW20S servicenow puts AI agents to work for people. That's why this was written and read by a real person and not AI. Creative work like writing and performing, that's the good stuff. You know, the work people actually want to do. You know what people don't want to do? Boring, repetitive, busy work. That's where AI agents come in. Built into the ServiceNow platform, AI agents can work on millions of repetitive tasks in every corner of a business, it, hr, customer service, and more. For this repetitive work that needs doing, ServiceNow has an AI agent to get it done that makes it easier than ever to do the work you really want to do do no matter what the work is. That's what it means to put agents to work for people. It's your turn. Find out how to get [e-mail] AI-agents.

[Toby Howell]

A new side hustle just dropped and it's got four walls, a low barrier of entry, and is particularly resilient to an economic downturn. It's podcasting. No, it's mobile home flipping. And it's the next Toby's trend that I want to tell you about. Mobile home flipping has always been a slightly unsexy sector of the real estate market, but it works just like its sexier counterparts. Investors shop around looking for a slightly rundown structure that they can buy for a good deal, then put a little work into and then turn around to sell them, hopefully for a profit. It's far more approachable than flipping more traditional homes, mainly because of the price. Mobile homes are cheap largely because the price doesn't include the land itself, just the structure. Plus they are typically factory built, which means that mass production in economies of scale can keep prices reasonable. Then you factor in demand that is through the roof and supply that can't keep up, and you have a recipe for high occupancy and accelerating rents, AKA exactly what home flippers are looking for. Neil over the last decade, the Number of new manufactured homes shipped across the country increased by over 60%, according to U.S. census data reviewed by Business Insider. Better and mobile homes are now the country's biggest source of unsubsidized low income housing. So these are a critical part of the housing market that is clogged by limited supply and skyrocketing prices. It was only a matter of time before it also became a lucrative part of the real estate sector as well.

[Neal Freyman]

And it was only a matter of time before institutional investors, like private equity saw what the mom and pop house flippers were doing and saying, you know what, that sounds like a good idea. In 2020 and 2021, institutional investors investors accounted for 23% of all manufactured home purchases, up from 13% in 2017-2019. Mobile home parks, according to Blackstone, has a 22% annual compounded return, which is the highest in the real estate field. A lot of people who were working in this industry kind of knew that this was a diamond in the rough. And now institutional investors are circling like vultures. So if you want to do this, get in now.

[Toby Howell]

One other quirk of mobile home, you know, real estate is that they're typically classified as personal property. So that's something like a car, not necessarily a house. So you get lower property taxes, lower insurance costs. But that also usually meant that they depreciated like cars. When you drive a car off a lot, it loses a lot of its value. So that doesn't necessarily seem like a good asset to own if it's depreciating. But now that has been changing because of the current housing market in the United States. The price of mobile homes has jumped by almost 60% from 2018 to 2023. So that is actually appreciating exactly like a home now. So that's what's brought these new investors in, what's brought institutional investors in as well, because they are being valued like homes, even though they are not necessarily, you know, fully baked out homes.

[Neal Freyman]

We haven't really touched on this aspect, but what does the growth in this market say about the broader housing challenges that Americans are facing? That this sector of really cheap mobile homes is, you know, increasing like crazy is because people can't afford afford anything else.

[Toby Howell]

And they also kind of exist in sort of this alternate reality where you can go and close on them in a day. You don't need to bring in an attorney, you don't need to bring in an appraiser. You can just, you know, get the home, buy it much more cheaply and much more quickly than another home. So it feels a very important niche. And now you're seeing other, you know, bigger investors look at it as a money making operation, not just a way to provide affordable housing for a big chunk of the population.

[Neal Freyman]

Okay, let's sprint to the finish with some final headlines in one of Canada's most important elections in decades. Yesterday, former central banker Mark Carney was elected prime minister in a stunning comeback for the Liberals after they were down the equivalent of 28 to 3 only a few months ago to the Conservatives. But then President Trump happened, slapping tariffs on Canada and repeatedly vowing to make it the 51st state. Carney, who had previously ran the bank of Canada and the bank of England, leaned into the fight and made standing up to Trump the central motif of his campaign, which clearly resonated with voters who despise the US President. Even Trump acknowledged his impact on Canada's election in an interview with the Atlantic published before the election. He said, you know, until I came along, remember that the Conservative was leading by 25 points then I was disliked by enough of the Canadians that I've thrown the election into a close call. Right now Carney will have to use all his economic wily to chart a stagnating Canada's future.

[Toby Howell]

Sure, yeah. If you go back to the poly market chart of this election, it is insane. In January, Polar Bear, which was the Conservative candidate, was in the mid to high 90% to win. Carney wasn't even a name that voters knew, but a lot changed over that period. Yes, clearly the anti Trump push, as well as his reputation as this good financial steward, I mean this dude has the highest financial bona fides you can have. Ran the bank of Canada, ran the bank of England. So those two together just kind of turn turned this election on its head so quickly. And I encourage you to go look at those, you know, prediction markets charts because it is just this massive jump for a guy Carney, who some people didn't even recognize his face as recently as January. Now he is the PM of Canada. Citizens of Portugal and Spain got a longer siesta than they bargained for on Monday after huge power outages plunged large parts of the two countries into blackouts. There is still no official explanation for what caused the massive outages, but the results were acutely felt. Traffic lights were out in Lisbon, planes were stuck, trains weren't moving, and even American tennis player Coco Gauff got swept up in the outages with an IG story of hers showing the moment the lights went dark in the Locker room of the Madrid Open, the tennis tournament where she was playing. Neil Some officials are floating the possibility that the outage was caused by a massive cyber attack back but right now there is still no official explanation. Power is slowly coming back online, but restoring Spain's power network could take up to 10 hours. The grid operator has warned. Wild scenes out there.

[Neal Freyman]

Yeah, and it's still lingering until this morning. With certain transportation networks still reporting outages and they're still coming online, this is going to shine a pretty harsh spotlight on Spain's renewables sector. Spain has really leaned in to renewables, generating 43% of its power from wind, solar, wind and Solar. And on April 16, actually two weeks ago, Spain's grid ran entirely on renewable energy for the first time. Entirely. But you know, the storage of these renewables has not kept up with demand. So you're going to see a lot of conversations about Spain's reliance on renewables leading to what officials are calling a totally unprecedented outage. They've tried, they've basically dismissed a cyber attack, but they still, you're right, they have no idea what happened. And it caused absolute chaos across across the Iberian Peninsula until this morning. The billionaire space race entered a new arena last night. Satellite Internet. Jeff Bezos's Amazon sent its first batch of Kuiper Internet satellites to space as it begins forming an Internet beaming constellation that one day could rival Elon Musk's Starlink. The goal is to provide high speed data connections to nearly every point on Earth. Problem is you need thousands of satellites working in tandem to do this and Amazon has now sent up 27. Meanwhile, SpaceX's Starlink dominates the sector with 8,000 satellites already in orbit and more launching virtually every week. Still, Amazon thinks it can challenge Space X, especially by integrating this connectivity with its ubiquitous cloud platform, Amazon Web Services. Toby A less buzzy but a lot more consequential launch for Bezos than the Katy Perry mission earlier this month.

[Toby Howell]

Yeah, a lot less singing too. The big question is whether it's too late for Amazon to take on on Space X, mainly because of just the cost. Just setting up this first generation of 3200 satellites could cost as much as $17 billion upfront. That's according to a report from Raymond James. And so even if they do start to turn this into a profitable enterprise, it still could cost 1 billion to $2 billion per year to just maintain. And does that make sense when there already is such a big market leader in the Space X? That is the calculus that Amazon is weighing right now they think it can open up a bigger market for its Amazon Web Services user base. So clearly they think the calculus is in their favor. But right now, they definitely have some ground to make up. Finally, if you thought your phone addiction was bad, at least it's not. Climb Mount Fuji, lose your phone, get stuck, get rescued, then go back for your phone four days later, get stuck again, get rescued again, bad. That's what happened to a 27 year old university student who climbed the mountain outside of its official climbing season last Tuesday. And after a lost crampon led to his first rescue by helicopter. But after just four days with no phone, he decided, you know what? I'd rather risk it again rather than be confronted with my own boredom or worse, a flip phone, and set off again to go retrieve his things. One bout of altitude sickness later and he was back in a rescue helicopter. Neil, maybe the worst part of this, other than the waste of rescue resources, is the fact that news outlets are reporting recording it's unclear if he actually got the device or not. You got to get the phone if you go through that much trouble.

[Neal Freyman]

My people have a word for this and it's called chutzpah. And there was a large uproar on Japanese social media because this guy had to be rescued twice, using up a lot of resources and rescue people, rescue people's time. So they were angry and they think that he should have paid for the rescue services. But Mount Fuji is so busy, you're only allowed to climb. Climb it. Well, you're not only allowed to climb it, but they say you should climb and they only have sort of resources available for climbers from July to early September. So it's just getting super crowded. Maybe you got to go in the off season and able in order to climb it. I'm just amazed that you could leave your phone anywhere because I could be incapacitated at 25,000ft up in the air and I still would be checking my pocket for my phone wallet key. So the fact that he left it the first time is astounding to me.

[Toby Howell]

Well, I'm imagining it like slipped out of his pocket when he fell or something like that. But I do like that you are a big phone wallet guy. You never leave home without it.

[Neal Freyman]

All right, let's wrap it up there. Thanks so much for starting your morning with us and have a wonderful Tuesday. Welcome back, Toby. If you've got any questions for Toby or feedback on the show, send an email to Morning Brew daily at Morning Broadcom. Let's roll the credits. Emily Milligan is our executive producer. Raymond Liu is our producer, our associate producer. Our producers are Olivia Graham and Olivia Lake. Scoops Dardaris is on audio. Hair and makeup is retrieving their phone from Mount Fuji. Devin Emery is our president, and our show's a production of Morning Brew.

[Toby Howell]

Great show today, Neil. Let's run it back tomorrow.