Target Names Former Intern as CEO & Labubu Fever Shrinks…Literally?

Summary

Morning Brew Daily – Episode Summary

Date: August 21, 2025
Hosts: Neal Freyman & Ann Barry
Main Topics: Target’s new CEO (a former intern), ESPN’s new streaming app, Labubu (Pop Mart’s viral toy), “Neil’s Numbers” stats roundup, and headline news

---

Episode Overview

This episode of Morning Brew Daily, co-hosted by Neal Freyman and guest Ann Barry, dives into some of the most buzzworthy developments in business and culture: the surprise elevation of a longtime Target insider to CEO, Disney’s major streaming push with ESPN going direct-to-consumer, a look at the viral Labubu collectible toy phenomenon, and a rapid-fire segment of stats (Neil’s Numbers) across various industries. The show blends sharp analysis with lively banter and memorable moments.

---

Key Discussion Points

1. Target's New CEO: The Former Intern’s Big Promotion

[02:24–07:41]

• Background: Michael Fidelke, who started as a Target intern in 2003, was promoted to CEO, replacing Brian Cornell (who will become executive chair of the board).
• Context: Target’s same-store sales declined 1.9% last quarter (better than expected, but still not growing) – stagnation for nearly three years.
• Market Reaction: Investors were not optimistic, sending shares down 6% after the announcement.
• Insider vs. Outsider:
  • Some analysts and the hosts express skepticism that an internal promotion, rather than an outsider, can spur needed change.
  • Ann Barry [03:53]:

    “The very guy who is part of the issues we're trying to solve has actually been rewarded for all this. He's promoted to the big job. I found this baffling if I'm really honest.”

  • Neal Freyman [05:50]:

    “In one sense it's a great growth story. But maybe investors are thinking this is not the type of person that Target needs right now because its sales are falling. It hasn't grown in three years.”

• Challenges Ahead:
  • Fidelke’s three priorities:
    1. Recapture Target’s “chic” merchandise reputation
    2. Improve customer experience
    3. Boost technology in stores and operations
  • Ann Barry [06:38]:

    “All three of those are really expensive ways to start revving up that growth engine again... If he turns around three months from now and he doesn't have a plan, if he gets into the seat... and he does not, pretty quickly afterwards say, 'I've got a fresh slate of talent,' I think Target share price is in for a rougher ride.”

---

2. ESPN Goes Direct-to-Consumer: Streaming Milestone

[07:41–11:23]

• Major Move: Disney launches the ESPN app for $29/month, allowing all sports fans to stream live events and shows without cable.
• Industry Impact:
  • ESPN was once the "greatest business model in media history" [07:49] due to bundling in cable packages.
  • Cord-cutting and declining cable subscribers forced this "nuclear option."
• Competition:
  • Fox One's app also launched the same day, setting up a "messy" streaming war (Ann Barry [08:51]: “It’s going to get messy.”).
  • ESPN spent $80 billion over seven years on sports broadcast rights, setting up for Super Bowl 2027, NBA Finals, College Football Playoff, and more.
  • Interesting bundle: ESPN, Disney+, and Hulu together for $29.99/month—the same price as ESPN alone.
• Tech Upgrades & Engagement:
  • New app features: vertical content, social engagement, and interactivity.
• Quote – Ann Barry [10:08]:

  “It's pretty expensive. I also saw that the app's going to have a bit of a refresh ... there's going to be much more focus on interactivity, social media feeds, lots more engagement on the docket...”

---

3. Labubu Toy Craze: Pop Mart’s Explosive Growth

[11:23–15:26]

• Numbers: Pop Mart’s Labubu dolls’ sales up 200% (first half of year); net profit up nearly 400%. Americas revenue soared 1,100%.
• Consumer Craze:
  • Labubu called the “biggest international toy fad since the Beanie Babies in the 90s.”
  • Pop Mart expanding aggressively—three new stores a week, aiming for 60 in the US.
• Banter:
  • Neal debates getting a Labubu, worrying he’d “mark peak craze” if he bought in.
  • Neal Freyman [12:42]:

    “Each time I try to spring for one, I think to myself, well, it's not cool anymore. Like if Neil Freyman buys one, that means it's past its peak.”

• Sustainability?
  • Are Labubu and similar toy trends sustainable or just the latest blip?
  • Ann draws parallels to Pandora jewelry, Swatch, Troll Dolls, and “kidult” collectibles—“massive, massive audience.”
  • Analyst caution: Market preferences can change rapidly.
  • Surprise/discovery element (“blind boxes”) is part of what drives demand.
  • Ann Barry [15:09]:

    "We've seen that it's this sort of 'kidult' phenomenon... people—they really want that collectibility of stuff right now.”

---

4. Neil’s Numbers: Three Stats Shaping the Week

[17:01–22:07]

a) Atlanta’s Film Industry Decline

• Stat: Georgia film spending down nearly 50% in three years as Marvel shifts production to the UK for tax/labor reasons.
• Movies/TV: Hunger Games, Marvel, Fast and the Furious, Stranger Things were filmed in Georgia.
• US films down 30% since 2022; Britain up 16%.
• Neal Freyman [17:01]:

  “Production spending in Georgia has dropped by nearly half over the past three years... The main reason for the drop off is Marvel ... shifting more production to the UK.”

b) NYC Office Foot Traffic Hits Pre-Pandemic Highs

• Stat: NYC's office visits in July 2025 1.3% higher than July 2019 (first major city to surpass pre-pandemic levels); other US cities still lagging.
• JPMorgan’s aggressive return-to-office drives trend.
• Ann Barry [20:49]:

  “Walking around midtown Manhattan ... it just felt like a ghost town. I'm just really excited to see people are back... that vibrancy, it's so important.”

• Fun moment: Ann wishes Neal had played “Jamie Dimon’s profanity-laden request” for employees to return in full (“It’s a kid show! You can’t quite.”).

c) Decline in Reading for Pleasure

• Stat: % of Americans reading for fun drops from 28% (2003) to 16% (2023) — more than 40% decline in 20 years.
• Cited reasons: phones, less leisure time, access to reading materials.
• Ann Barry [22:15]:

  “One thing I saw ... is the number of parents reading to their kids is low, too. And the real irony here is I read about that on Instagram.”

---

5. Rapid Headlines (Sprint to the Finish)

[22:30–25:36]

• Trump ramps up efforts to change Fed composition, targeting Governor Lisa Cook for alleged mortgage fraud.
  • Cook vows not to be “bullied” from position.
• Hurricane Erin creates dangerous surf up east coast; caution for swimmers.
• Radioactive shrimp shipped (but not distributed) to Walmart triggers FDA recall/outcry.
  • Ann Barry [25:28]: “Are they telling us how to dispose of it? ... Or we just throw it out?”
• Focus Friend, a productivity app by Hank Green, tops App Store thanks to viral “focus bean” concept.

---

6. Memorable Moments & Notable Quotes

• Ann's "Fun Fact" (Icebreaker) [01:26]:

  “When I was growing up, what did I want to be? I wanted to be Indiana Jones. I wanted to be an archaeologist.”

• Labubu Hype [11:23]:

  “Just when you thought we’ve hit peak Labu, those fiendish little elf dolls are only getting stronger.” — Neal Freyman

• Office Resilience [20:49]:

  “I think New York City is resilient.” — Ann Barry

• Meta Moment on Reading Trends [22:15]:

  “The real irony here is I read about that on Instagram…” — Ann Barry

---

7. Birthday Surprise

• The team and co-host Toby (in an audio message) wish Neal a happy birthday [27:07].
  • Toby: “Happy birthday. Thanks for being such a good friend, golf partner and co-host… We’ll have spaghetti when I’m back to celebrate.”
  • Neal: “Should be a fun day.”

---

Timestamps of Key Segments

| Segment | Start Time | |-------------------------------------------|------------| | Target’s New CEO | 02:24 | | ESPN Goes DTC | 07:41 | | Labubu / Pop Mart Toy Craze | 11:23 | | Neil’s Numbers | 17:01 | | Atlanta Film Industry | 17:01 | | NYC Back to Office | 18:34 | | Reading for Pleasure | 21:05 | | Wrap-Up Headlines: Trump/Fed, Hurricane, Shrimp | 22:30 | | Focus Friend App | 25:36 | | Birthday Surprise | 27:01 |

---

Tone and Style

The hosts maintain their signature lively, witty, and conversational tone throughout—mixing business analysis with pop culture references, subtle humor, and moments of self-awareness. They provide clear business explanations while keeping the pace fun and engaging for listeners.

---

Takeaways

• Target’s leadership may be sending the “wrong signal” by promoting from within amidst prolonged stagnation.
• ESPN and Disney double down on streaming, betting on bundles and exclusive sports content to win the streaming wars.
• Labubu’s wild popularity marks another “kidult” collectible whirlwind, but such fads have a history of volatility.
• Big shifts: Atlanta’s film industry wanes, NYC’s office life rebounds, and reading for pleasure is alarmingly in decline.

A fun, info-rich episode blending breaking business news, cultural trends, and sharp analysis—with enough wit and memorable lines to keep you tuning in for more.

Transcript

[Ann Barry]

This message is brought to you by Apple Card. Did you know Apple Card is designed to help you pay off your balance faster with smart payment suggestions? And because fees don't help you, Apple Card doesn't have any. So if your credit card isn't Apple Card, maybe it should be subject to credit approval. Apple Card issued by Goldman Sachs Bank USA, Salt Lake City Branch. Variable APRs range from 18.24% to 28.49% based on creditworthiness rates as of July 1, 2025 Terms and more at applecard.com.

[Neal Freyman]

Good Morning Brew Daily Show. I'm Neal Freyman.

[Ann Barry]

And I'm Ann Barry.

[Neal Freyman]

Today Target thinks it's found its comeback kid, hiring a former intern as its new CEO.

[Ann Barry]

And ESPN goes direct to consumer what does it mean in the war of the Streamers?

[Neal Freyman]

It's Thursday, August 21st. Let's ride. Man. It is so great to have you as my co pilot today and thank you for carving out the time. You are a busy, busy person person. This week your new podcast, Brew Markets launched, giving people headlines and analysis from the day in the stock market for everyone who just thought to themselves, yeah, that sounds like something I'd be interested in. Brew Markets is released every afternoon around 4:20pm Eastern Time, including a fresh episode later today. And I'm about to ask you the question everyone dreads during Icebreaker. But I know you'll have a good answer to this. What is a fun fact about yourself?

[Ann Barry]

Okay, so I've had many lives, right? I've been, and this is the premise of the podcast. I've been a investor, I've been a CEO. But if you ask me, when I was growing up, what did I want to be? I wanted to be Indiana Jones. I wanted to be an archaeologist.

[Neal Freyman]

And what happened?

[Ann Barry]

I did not do that.

[Neal Freyman]

How did you end up behind this mic?

[Ann Barry]

Well, many lives. But you know, one thing, I actually did go to Petra. You know, there's a famous scene where he horse rides. I think it's a temple of doom. I ended up going there and I had this moment of like, wow, that's what it feels like. This is it. I've done it.

[Neal Freyman]

That's we all live vicariously through Hollywood. Well, thanks again for joining us and I'm pumped for the show. And now a word from our sponsor, LinkedIn ads. And would you say ads are better here or in the uk?

[Ann Barry]

Well, you all have a lot fewer ads for gravy, so I'm going to have to say in the uk that is crazy.

[Neal Freyman]

I thought we had the gravy market cornered. Why aren't these ads reaching me?

[Ann Barry]

Probably because gravy marketers aren't utilizing LinkedIn ads. They can help you stop wasting resources like money, time and effort. Like 71% of B2B ads, they can link you with the right audience for your brand.

[Neal Freyman]

So check out LinkedIn ads. LinkedIn will even give you a $100 credit on your next campaign. So you can try it for yourself. Just go to LinkedIn.com/MBD. That's LinkedIn.com SL MBD. Terms and conditions apply only on LinkedIn ads. Target named a new CEO to lead its turnaround. And in a move that's going to set LinkedIn on fire, it was a former intern. Michael Fidelke, who interned at target in 2003 before working his way up the food chain, was announced as the company's CEO, replacing Brian Cornell, who served 11 years in the role. It's a big bet that a company insider, not an outsider, will have the secret sauce to bring Target back to relevance and and financial health. Because right now, Target is throwing up bricks. And its earnings report yesterday, it said that same store sales declined 1.9% last quarter, which was better than expectations, but also not growing. And that's been a theme for Target, not growing. For the past 11/4, almost 3 years, target sales have been flat or falling. There's a lot of stuff going wrong over in Minneapolis, from disorganized stores to culture war boycotts to unexciting merchandise. And rivals Amazon and Walmart have taken advantage. So Ken Fidelke turn this ship around. Investors don't seem to think so, sending the stock down 6% following the announcement. It's clear they wanted an outsider to look at things with fresh eyes, not a company man who's been there for 20 plus years. Still, Fidelke described his experience as an asset, having seen Target at its worst, but also at its best. And what do you think of the hire?

[Ann Barry]

Okay, well, first of all, there. There's the issue that he's not a hire and it's a promotion. Right? And I'm going to. And that's issue number one. Issue number two, his boss isn't going anywhere, right? So Brian Cornell, who's the outgoing CEO, is becoming executive chair of the board. So I just want to double down on this. And I talked about this on the Brew Market show. When you're a CEO, you report to your board. So can you imagine this conversation? You're Fidelke. You're going to a board meeting. You're fresh in your seat and you're giving your assessment of what went wrong while your old boss is sitting there listening to you and you still report to him. I think it's super awkward. I don't think this is going to make any change at all.

[Neal Freyman]

What, so you, you're wondering why Target didn't completely kick Brian Cornell to the curb and they have him in this maybe Bob Iger role or the Starbucks guy, whatever his name is. You know, looking down from above and sort of managing the strings and not allowing Fidelke to implement the changes that he wants more. And even more so than that, Fidelke also has been at target for 20 plus years. I mean, if you look at his LinkedIn, it is kind of wild. You don't see anything like this anymore. It says finance intern from 2003 to 2003, and then just works his way up at exact company till now where he becomes the CEO. You know, in one sense it's a great growth story. But maybe investors are thinking this is not the type of person that Target needs right now because its sales are falling. It hasn't grown in three years.

[Ann Barry]

Yeah, and let's talk about that. Right, because you're exactly right, Fidel. He's been there for what feels like forever and he's had big jobs. So if we think about prior to today, he's the chief operating officer. He has been for over a year. He's in the C suite, he's an adult. He's part of the decision making process. Before that, he was the chief financial officer for nearly five years. Right now in the last five years, target share prices dropped over 30%. Your CFO is part of the problem. Right. So the very guy who is part of the issues we're trying to solve has actually been rewarded for all this. He's promoted to the big job. I found this baffling if I'm really honest.

[Neal Freyman]

So Fidelke has heard your criticism. He watched the stock price, just like all of us yesterday, fall down 6%. He said that his experience is an asset. He wants Target to get his swagger back. He's got three big priorities that he wants to tackle at Target in order to return to sales growth. He said he wants to, number one, re establish Target's reputation as a retailer with, you know, like chic merchandise. That is what it was known for. And then now that has fallen flat. People are just not finding the cool stuff that they want there. The, the pillar number two for the turnaround provide a more consistent customer experience. I think that has to do with Sort of the disorganized disorganization at stores. And then finally the third pillar is using technology to more effectively run the business. So technology improving the store experience and getting some cooler merchandise in there, do you think that's a recipe for success?

[Ann Barry]

Well, all three of those are really expensive ways to start revving up that growth engine again. And I think let's talk about better merchandise, right? He's going to have to hire a new team. That special sauce, that ability to pick stuff, products that you're going to get really excited about, that's not his superpower. He's been the cfo. So let's see if he actually brings in some fresh blood to rejuvenate that merchandising team. That's the first thing I'd be looking out for when it comes to making it a more tech savvy business. Hasn't done it so far and I think what Target's done is just try and throw money at it to see what sticks. So let's see if that he goes higher, goes to hire a really compelling new chief technology officer. Let's see him get that talent in. And then when it comes to the store experience, lots of retailers have struggled with this and they've done everything from trying to hire, you know, Apple talent. You go to Apple stores, right? Great design. So. So again, I think a little bit of creativity. If he turns around three months from now and he doesn't have a plan, if he gets into the seat in FE and he does not, pretty quickly afterwards say, I've got a fresh slate of talent, I think Target share price is in for a rougher ride.

[Neal Freyman]

All right, we have to move on. Speaking of new eras, beginning the standalone ESPN app launches today and a milestone for both its parent company Disney and the media industry writ large. For the first time in history, all of ESPN content, from live sports to studio shows, will be available to customers without a cable or satellite TV subscription. The app, simply called ESPN, will cost 29 bucks a month. Now here's why it's such a big deal. For decades, ESPN was Disney's profit machine, running what the athletic called the greatest business model in media history. During Cable's peak in 2011, ESPN had more than 100 million subscribers because it was included in the lowest basic cable tier. Even if you weren't a sports fan, if you had cable, you paid Disney for espn. And this thing was an absolute money printer. Even now, with cable in serious decline, ESPN brings in about $1 billion in revenue each month from TV subscriptions and that's not including any advertising sales. But like I said, cable is going the way of the dodo. So Disney execs are taking the nuclear option and going direct to consumer. And a huge bet on streaming that's been eight years in the making. And ESPN going DTC is perhaps the clearest sign yet. We're at an inflection point in the TV business.

[Ann Barry]

Yeah, and this is so long awaited, right, Neil? Because sports has been the last bastion of profitable television. These live events, the fandom, the excitement of people sort of going to battle on the playing field. It's the last reason people have been returning to cable. And I think, you know, letting people cut the cord on that last bastion. This is, this feels really rough. Did you see, actually, Fox one's app launches today? So the two big sports broadcasters going head to head, direct to consumer. It's going to get messy.

[Neal Freyman]

ESPN doesn't think there's a competition with Fox One. It's been spending $80 billion over the past seven years bulking up this live rights portfolio in order to make sure that it has the best content. They have a Super bowl coming in February 2027. They also inked, you know, that big deal with NFL NF taking a 10% equity stake in ESPN and the NFL of live sports is, you know, the king right there. So they're getting, you know, probably the best content that people want to watch anywhere on television. They have the NBA Finals every season. They have the College Football Playoff every single year. They also adjusting to deal with WWE for WrestleMania. So Jimmy Pitaro, the president at ESPN, thinks that, you know, no one can compete with the amount of live sports that they have. And that's why they're rolling out this ESPN app and charging people around 30 bucks for it.

[Ann Barry]

Yeah, it's pretty expensive. I also saw that the app's going to have a bit of a refresh. Do you see that? There's going to be sort of vertical content. There's going to be much more focus on interactivity, social media feeds, lots more engagement on the docket. So I hear you. I think, you know, ESPN steely, still cream of the crop, but even then it's having to evolve its model. It's having to get next gen and.

[Neal Freyman]

Then thinking about Disney proper. I mean, they have ESPN is now only one of their stable of streaming services. They have Disney plus, which is their biggest one, and Hulu as well. They're doing this interesting thing where they're bundling ESPN, Disney plus and Hulu together for 2999amonth, which is exactly how much just ESPN alone costs. So they want people to go for this bundle. They think that the bundle customer is their most loyal customer and they're trying to get people across all of their streaming ecosystem. So it's very we'll I mean, if you are trying to get this ESPN app and you don't have Disney plus, why would you just get the ESPN app when you get for the same price, you can get Disney plus, Hulu and espn. That's hoping. That's what they're hoping for. In terms of the psychology now, the price is going to go up to like 35 bucks a month after this year. But it's clear that bundling is a big part of this ESPN strategy.

[Ann Barry]

Yeah, it's working. I'm doing it. I'm going to go buy the bundle. I'm going to be the litmus test for it working.

[Neal Freyman]

Just when you thought we've hit peak Labu, those fiendish little elf dolls are only getting stronger. Pop Mart, the Chinese toy company makes the booboo, reported financials on Wednesday that almost defy business logic. In the first six months of the year, sales were up more than 200% and net profit soared nearly 400%. Outside of China, where the booboo has been making a big push, the numbers were even higher. And the Americas revenue jumped 1,100%. In Europe and other regions, 729% and in Asia outside of China, 258%. And it's not taking its foot off the gas pedal. Pop Mart's CEO revealed that many Labubu dolls are coming soon as this week, ideal for clipping onto your phone. And that's sure to draw even more demand from Gen Z, who are obsessed with accessorizing their accessories. Plus, Pop Mart plans to grow its retail footprint aggressively, opening about three new stores per week, eventually topping 60 in the United States. Investors went loco for Labubu's growth plan, sending Pop Mart Stock More than 12% higher to a new record. Shares are up more than 650% over the past year, and Labubu is being called the biggest international toy fad since the Beanie babies in the 90s. Can it possibly sustain, sustain this growth?

[Ann Barry]

Oh wow, the Beanie Babies. That's such a throwback. I will answer the question with my pov, but first you have to tell me, do you have a Labo?

[Neal Freyman]

I do not have a Labo. Each time I try to spring for one, I think to myself, well, it's not cool anymore. Like if Neil Freyman buys one, that means it's past its peak. And then I keep looking at these numbers and all of the celebrities that are continuing to show it off. Lisa, the K pop star just did it this past weekend. She's a custom Labu that she showed off during her concert. So it seems like this craze is only swelling. So, you know, maybe, you know, maybe in the next few weeks I will spring for a little booboo, but it's not like you can find one.

[Ann Barry]

All right, well, if Neil Fryman buys a Labubu, I will jump on the bandwagon. Can it sustain its kind, this kind of growth? I think the Beanie Baby example is a really fascinating analogy and I really try to rack my brains, Neil, thinking what, you know, are there precedents for where this kind of fad did become a long term sustainable sort of icon for the consumer? And there are a couple I thought of Pandora, right? The jewelry business has been huge in charms, absolutely storming success when it comes to getting consumers to keep going back. Customers wanting to refresh their collections to accessorize their accessories. The tongue twister that you successfully threw out there. And Pandora today is a 10 billion dollar market cap company. Swatch, the watch company got its virality from this idea that people wanted to collect the strap. So I think there are ways to do it. I think the troll doll alone it. But there are ways brands have managed to achieve this kind of thing.

[Neal Freyman]

Yeah, I mean, analysts have weighed in, they said that we think this is Jeff Zhang at Morningstar. We think the longevity of popularity for pop mart's key IPs remain uncertain. While sales growth of the BooBoo and other IPs remain robust. There is no guarantee that consumers will continue to favor them in the next five to 10 years as their preferences may change very fast. I talked about a lot of very fast moving trends on this show over the past couple of years. There is the Stanley cup, there was the Trader Joe's tote bag. And while those are still probably quite popular, they didn't have the same velocity that Pop Mart is showing. And I think these executives kind of understand that they have something very special on their hands right now and they're introducing new lines and different renditions on little booboo like the mini Labubu in order to keep things top of mind. They also have this genius sort of distribution strategy with the blind boxes where you open something up. It's kind of like a pack of cards where. Or Pokemon cards where you open up a blind this box and you don't know exactly which labubu you're getting. So this element of surprise, it keeps you coming back for more. So yeah, booboo. I mean, it just can't be stopped right now.

[Ann Barry]

And also just to the point on cars, that collectible element, just adults, really massive, massive audience and consumer base for this product. We've seen that it's this sort of kidalt phenomenon. It's a name that's had controversial, you know, name actually it's had mixed response. But this idea that people, they really want that collectibility of stuff right now.

[Neal Freyman]

All right, we're taking a quick break, but don't go anywhere because Neil's Numbers is next.

[Toby]

This episode is brought to you by.

[Neal Freyman]

Square New York is a food lover's dream. And that goes for your morning brew as well. Anytime I'm craving a coffee with a side of chill vibes, I head to Ralph's Coffee.

[Toby]

There's a place for every mood and every craving. I swing by Bibble and sip every time I'm in the neighborhood for a sweet treat and incredible service, all while supporting a small business.

[Neal Freyman]

Those fave local spots need support as they grow. That's where Square comes in. What started as a little white card reader now powers the action behind the scenes. Whether you're expanding to new locations, treating loyal customers like us, or need to cover cash flow gaps, Square meets you there.

[Toby]

Go to square.com go/morning brew daily to learn more. That's sq u a r e.com/geo/morning Brew Daily. This message is a paid partnership with Apple Card. I'm a person who really appreciates simplicity and when it comes to credit card rewards, the simplest, simpler, the better. That's one of the many reasons I have an Apple Card. The rewards are super straightforward. I earn up to 3% daily cash back on my everyday purchases. There are no points to calculate, no limits or deadlines. Plus, it's super easy to access my card and make payments from the wallet app of my iPhone. If that sounds like the kind of simplicity you want in a credit card, apply for Apple Card in the Wallet app on your iPhone. Subject to credit approval. Apple Card issued by Goldman Sachs Bank USA, Salt Lake City Brands terms and [e-mail].

[Neal Freyman]

Welcome to Neil's Numbers, the segment where I share three stats from the week's news that will have you sounding more articulate than a West Wing character. My first number is the rise and fall of Atlanta as the Hollywood of the South. Production spending in Georgia has dropped by nearly half over the past three years. The Wall Street Journal reported last fiscal year, 245 projects were shot in the state, compared to 412 in fiscal 2022. The main reason for the drop off is Marvel. In 2008, Georgia unleashed one of the most generous tax inc. Incentives for film production anywhere in the world, allowing producers to recoup almost a third of the money they spent. That sparked a flood of film shoots, including 22 Marvel movies and shows that created thousands of jobs and had some wondering whether Atlanta was on the verge of replacing Los Angeles as the top entertainment hub in the country. One man who worked as a grip on six Marvel projects refers to his Atlanta area home as the house the Avengers bought. But recently, the mood in Georgia has turned less peachy. Beginning with this summer's Fantastic Four, Marvel is shifting more production to the UK which has a similar tax incentive to Georgia. But labor costs are lower across the board. And it's not just Georgia seeing film projects dry up. In 2024, almost 30% fewer big budget movies and TV shows began filming in the United States compared to 2022, while in Britain they've increased 16%. And Atlanta seeing the pitfalls of betting the farm on a single industry.

[Ann Barry]

Yeah, look, I love Marvel and obviously I love Britain. So the two of them coming together a little bit more doesn't, you know, I actually find that quite encouraging. I know that's not the answer you looking for.

[Neal Freyman]

It's kind of crazy to go down the line and see what was filmed in Georgia because it has been this massive production hub thanks to these super generous incentives. If you look in the background of these films, maybe you'll see, you know, some Georgia landscapes. But the Hunger Games was filmed there. The Fast, the Fast and the Furious film franchises, Stranger Things, the Walking Dead, and they really poured so much money into this industry and employed tens of thousands of people. But like so much film production in the United States, it's not just Georgia. Los Angeles is dealing with this too. They just doubled their tax incentive to $750 million earlier this year to keep production in the United States. The question is, is that enough? Because labor costs are just so much higher here than they are in the UK In Australia and in Canada, where a lot of film production has moved. For my next number, let's head up I95 from Georgia to New York City, which just hit a real estate milestone. For the first time since COVID the number of people heading back to the office was higher than pre pandemic levels. According to placer AI, which tracks foot traffic. July office visits in New York City were 1.3% higher than July 2019 levels. It is the only major metro area that has returned to growth. Miami isn't far behind, down 0.1% from 2019. But no other city comes close. For instance, Dallas office visits have fallen 15%, Chicago 34% and Denver 40%. New York City's busy offices are vindication for those who argue the city will would bounce back from COVID including none other than JP Morgan CEO Jamie Dimon. Later this month, the bank will start bringing in employees to its brand new headquarters, a 60 story 2.5 million square foot behemoth on Park Avenue that cost about $3 billion. The project was announced in 2018, and not once did Dimon consider pulling the plug, even when many declared the city dead in 2020. He's been on the forefront of the return to work movement with JP Morgan being one of the few employers along with Goldman Sachs max ordering their employees back to the office five days a week. And this new tower is a statement. New York City physically, economically is dominated by finance. And in finance we work from the office.

[Ann Barry]

We do. I was really hoping you were going to play the tape of Jamie Dimon's profanity laden request that everyone come back. Just it was such.

[Neal Freyman]

It's a kid show. You can't quite.

[Ann Barry]

We can't do that. You know, walking around midtown Manhattan for the longest time, I don't know if you found this, Neil. It just felt like a ghost town. It's like eerily quiet and I'm just really excited to see people are back. It means that the coffee shops are open again, the bagel vans are back and just that vibrancy. It's so important. And yeah, I think New York City.

[Neal Freyman]

Is resilient for my final number. When was the last time you read something just for the heck of it? Because it would be fun. If you can't remember it, you're in good company. Reading for pleasure in the US has plunged by more than 40% over the past 20 years. That's according to a new study from researchers at the University of Florida and University College London who analyzed data from the government's Time Use survey to learn how people spend their day. They found that the proportion of Americans who read for pleasure on an average day felt from 28% in 2003 to just 16% in 2023. That includes E books and audiobooks as well as traditional books, newspapers and magazines. Jill Sankey at the University of Florida is raising the alarm, saying this is not just a small dip, it's a sustained decline of about 3% per year. It's significant and deeply concerning. So why aren't people reading anymore? The first thing you might blame is the phones. And Sankey acknowledges our digital culture is certainly part of the story. She also said that more structural issues like the lack of availability of reading materials, economic insecurity, and the decline in leisure time were also part of the story. And this is going to light a fire in me to finish the book I've been working on for months.

[Ann Barry]

Which is it?

[Neal Freyman]

It is the third novel in the Elena Ferrante series about two Neapolitan friends.

[Ann Barry]

Oh, good, that's my. My beach read. Well, you know, one thing I saw, it caught my eye and it made me feel kind of sad to see this for two reasons is the number of parents reading to their kids is low, too. And the real irony here is I read about that on Instagram and what's.

[Neal Freyman]

Funny, you know, what's not funny but ironic, it's at the same time these book companies, book publishers, are doing quite well. There's just the article about how Waterstones, which is the British Barnes and Noble, I guess you could say, is opening 10 new stores a year. They have. Their revenue was up 5%. And then Barnes and Noble is planning on opening 60 stores a year here in the United States. So these booksellers are doing quite well. And there seems to be a swell around book talk and talking about books and book clubs, but at the same time time, maybe that's this is all, you know, fake and people just aren't reading. According to the American Time Use Survey, which tracks literally every second of what you do during your day. All right, let's sprint to the finish with some final headlines. President Trump escalated his pressure campaign against the Federal Reserve, demanding an official resign over alleged mortgage fraud. Yesterday, Bill Pulte, the top housing finance regulator, accused Fed Governor Lisa Cook of falsifying bank documents and property records records to acquire more favorable loan terms, alleging she has mortgages on two separate homes, claiming both as her primary residence. If Cook doesn't resign, the Trump team appears to be laying the foundation for firing her for cause. Because Cook's term doesn't officially end in 20 until 2038, Trump appears to be aggressively trying to tilt the composition of the central bank in his favor, adding loyalists who would be more sympathetic to lowering interest rates. Cook responded to Trump in a statement later in the day saying, saying she has no intention of being bullied to step down from my position because of some questions raised in a tweet. She said she is gathering the accurate information to answer any legitimate questions and provide the facts. East Coasters trying to sneak out to the beach for one final summer swim might have to pivot Hurricane Erin the first hurricane of the Atlantic season has created dangerous conditions up and down the coast. Until the weekend, officials are cautioning against swimming at most U.S. east coast beaches beaches because of rip currents and life threatening surf disrupting long weekends from the Outer Banks of North Carolina to cape Cod and Martha's Vineyard. Erin isn't expected to make landfall in the US but the Category 2 storm is still creating massive disturbances in the ocean as it moves north offshore, leading to waves of potentially 20ft tall before conditions calm down by Saturday. If you've eaten frozen shrimp from Walmart recently, you might just get an invite into the MCU as Shrimp Man. That's because the FDA warned Tuesday that certain types of Great value raw frozen shrimp sold at Walmart might be radioactive. The agency said that a shipment of shrimp from an Indonesian supplier tested positive for cesium 137, a byproduct of nuclear reactions. The FDA added that no product that tested positive for Cesium 137 entered the US but they ordered a recall of three great value products just to be super careful. As for health risks, the government says that the amount of radioactive material found in the shipment was so low it would not pose an acute hazard to customers customers. But long term exposure to even a small dose of this material could impact your health, like increasing the risk of cancer. If you bought this kind of shrimp from Walmart recently, check out the FDA website for more info.

[Ann Barry]

Are they telling us how to dispose of it? Do we take it back to the throw it out or we just throw it out? Yeah, so it's going to and then.

[Neal Freyman]

It just, you know, radiates your entire house, right?

[Ann Barry]

Exactly.

[Neal Freyman]

Finally, the top of the App Store has a surprising and adorable new face. Focus Friend, a productivity app from online creator and educator Hank Green. Green became the number one free app yesterday thanks to a viral push by Hank and his brother, the author John Green. The premise is that you set a timer for yourself to focus on work and while you do that, a cute little bean sits there and knit socks for you. If you get distracted and open up a non work app, your bean friend gets sad. But if you focus for the full time, the bean will give you the socks it knits that you can trade in to decorate its room like wall art or furniture. And would this help? Would this app help you? How do you stay focused?

[Ann Barry]

Oh, I'm too busy being productive, trying to track down my next the boo boo. So I don't. I don't need this one.

[Neal Freyman]

What a flex. All right, that is all the time we have. Thanks so much for starting your morning with us and have a wonderful Thursday. And thank you again for joining us as well. Go prep for brew markets, then we'll see you back here in 24 hours. If you have any thoughts or feedback on today's show, send a note to Morning Brew daily at Morning Broadcom. You've been waiting all show for it. Today's password clue. Here it is. The password rhymes with a domestic domestic sound. Once again, the password rhymes with a domestic sound. Think you got the answer? Head to our show notes where you'll find the form to submit. If you're still thinking. All good. There's one more clue coming tomorrow. Let's roll the credits. Emily Milian is our executive.

[Ann Barry]

No, no, no. Wait, wait, wait, wait. We have something for you, Neil.

[Neal Freyman]

Oh.

[Ann Barry]

Because I understand that maybe today is a special, special, special birthday.

[Neal Freyman]

I wouldn't know it.

[Ann Barry]

Well, we. We have a little. A little message for you, Neil.

[Toby]

Happy birthday. Thanks for being such a good friend, golf partner and co host. Bummed I couldn't be there to celebrate with you, but hold down the fort and we'll have a spaghetti when I'm back to celebrate.

[Neal Freyman]

We'll do. Thank you, Toby. Thank you everyone for. For arranging that. And yeah, should be a fun day.

[Ann Barry]

Happy bet.

[Neal Freyman]

All right, let's roll the credits. Emily Milian is our executive producer. Raymond Liu is our producer. Our associate producers are Olivia Graham and Olivia Lake. Hair and makeup has Georgia on their mind. Devin Emery is our president and our shows are production of Morning Brew.

[Ann Barry]

Great show today and we will see you tomorrow.

[Neal Freyman]

You say you'll never join the Navy, never climb Mount Fuji on a port visit or break the sound barrier. Joining the Navy sounds crazy. Saying never actually is. Learn [e-mail] America's Navy forged by the sea.