US Dollar Falls to 3-Year Low & Prediction Markets Take on the Next Pope

Summary

Morning Brew Daily: Detailed Summary of "US Dollar Falls to 3-Year Low & Prediction Markets Take on the Next Pope"

Release Date: April 22, 2025

Hosts: Neal Freyman and Toby Howell

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1. Economic Downturn: U.S. Markets and the Falling Dollar

The episode opens with Neal Freyman addressing the aftermath of President Trump's announcement of sweeping tariffs on April 2nd, which has negatively impacted Wall Street. The U.S. stock indices—S&P 500 and NASDAQ—plunged by over 2%, while the Dow Jones Industrial Average (DJIA) lost nearly 1,000 points. This marks the Dow's worst April performance since the Great Depression.

A more pressing concern is the U.S. dollar's significant decline to a three-year low against the euro, amidst a backdrop where almost every other major currency is appreciating. Concurrently, bond markets are experiencing a sell-off, an unusual trend that has unsettled investors. Traditionally, in times of economic uncertainty, investors flock to U.S. Treasuries and the dollar as safe havens. However, the current scenario is unprecedented, signaling a waning confidence in American assets.

Neal highlights the surge in gold prices, which have reached an all-time high of $3,050 per ounce. Analysts attribute this to the simultaneous drop in equities, bonds, and the dollar, indicating a broader loss of faith in the U.S. financial stability.

Notable Quote:

"The dollar just hit a three year low."
— Toby Howell [04:36]

2. Prediction Markets and the Upcoming Papal Conclave

The conversation shifts to the recent death of Pope Francis at age 88, marking the end of a significant era for the Catholic Church. Pope Francis was lauded for his reforms, including tackling financial misconduct within the church, advocating for the marginalized, and addressing global challenges like climate change and artificial intelligence.

With the papal conclave underway, prediction markets such as Polymarket have become abuzz, with over $3.5 million wagered on the outcome. Bettors are speculating on various aspects, including the next pope's continent of origin, chosen name, and the selection timeline. Historically, gambling on papal elections dates back to Renaissance Rome, where bets were placed on candidates and conclave outcomes.

Neal and Toby delve into the ethical debates surrounding such wagering, noting that while modern platforms like Polymarket have reignited this tradition, it remains controversial. Past bans, such as Pope Gregory XIV's 1591 prohibition and subsequent lifting in the 20th century, highlight the enduring tension between religious solemnity and public speculation.

Notable Quote:

"Nothing is new under the sun. We have been seeing this all the way back in the 1500s. Now we just have Polymarket."
— Toby Howell [10:59]

3. Chipotle's Expansion into Mexico: A Risky Venture

Chipotle Mexican Grill is set to open its first locations in Mexico by 2026, aiming to capitalize on authentic Mexican cuisine. The partnership with a seasoned restaurant operator, experienced with brands like Domino's and Starbucks, is intended to navigate the complexities of the Mexican market.

However, historical precedents cast a shadow of uncertainty. Taco Bell's failed attempts to penetrate the Mexican market in the early 1990s—culminating in the shutdown of all locations after two years due to cultural disconnects—serve as a cautionary tale. Conversely, Starbucks' successful integration into Italy by adapting its offerings to local tastes showcases that strategic adaptability can lead to success.

Neal emphasizes the thin line Chipotle must tread between authenticity and brand identity, questioning whether they will mirror Taco Bell's missteps or emulate Starbucks' success by adapting to local preferences without losing their brand essence.

Notable Quote:

"It could go either way. It totally depends on how they do that."
— Neal Freyman [13:35]

4. Trending Now: Dubai Chocolate Craze and Pistachio Shortages

Toby Howell introduces the phenomenon of Dubai Chocolate, a confectionery treat comprising a milk chocolate bar filled with a creamy green pistachio filling and shredded pastry known as kitafi or kanafe. Originally introduced in 2021 by Emirati chocolatier Sarah Hammuda, its popularity skyrocketed following a viral TikTok video in December 2023, amassing over 120 million views.

The surge in demand has led to a global pistachio shortage, with prices escalating by 34% over the past year. A UK-based chocolate shop has responded by pricing Dubai Chocolate bars at more than double the cost of their standard offerings. The shortage is exacerbated by the U.S. pistachio industry's recent poor harvest, compounded by prior overproduction in 2023. This tumultuous supply-demand dynamic has implications for both consumers and producers, highlighting the unpredictable nature of viral food trends.

Notable Quote:

"An absolute sensation."
— Neal Freyman [19:31]

5. Headlines

a. Harvard Sues Trump Administration Over Funding Freeze

Harvard University has filed a federal lawsuit against the Trump administration, alleging illegal freezing of $2.2 billion in funding. The lawsuit accuses the government of infringing upon the First Amendment by attempting to exert control over academic decisions under the guise of combating anti-Semitism on campuses. Harvard's President, Alan Garber, warns that such overreach could have severe and lasting impacts on critical research sectors, including child cancer and infectious diseases. In response, the White House contends that taxpayer funds are a privilege and asserts that Harvard does not meet the necessary conditions to retain this financial support.

Following Harvard's legal action, over 150 university leaders from prestigious institutions like MIT, Princeton, Yale, Brown, Tufts, and Duke have signed a joint statement opposing what they perceive as governmental overreach into academic autonomy. This collective stance underscores a significant rift between higher education institutions and the current administration.

Notable Quote:

"Government's overreach will be severe and long lasting."
— Alan Garber, Harvard President [20:32]

b. Airbnb Enhances Fee Transparency for Users

Airbnb has announced a pivotal change in its user interface by now displaying the total price, including all taxes and fees, upfront during the search process. This adjustment aligns with the new U.S. Federal Trade Commission (FTC) regulations mandating complete fee disclosure to eliminate hidden charges. Neal Freyman views this as a substantial victory for consumers, anticipating that increased pricing transparency may lead to decreased fees as hosts adapt to the new disclosure requirements.

Notable Quote:

"It's a big win for consumers."
— Neal Freyman [22:47]

c. UAE Integrates AI into Legislative Processes

The United Arab Emirates is pioneering the use of artificial intelligence in drafting and reviewing laws, aiming to make the legislative process more responsive and efficient. Sheikh Mohammed bin Rashid Al Maktoum stated that the AI system will analyze large-scale data to assess the daily impact of laws on society and the economy, suggesting regular updates to legislation. This initiative is part of the UAE's broader strategy to position itself as a global leader in AI, investing billions into the technology sector. Critics remain cautious, noting the challenges of managing AI-driven governance and the potential pitfalls of relinquishing legislative control to automated systems.

Notable Quote:

"They are going off kind of like the deep end here and seeing what is going to be the result of giving AI the reins of laws that govern their country."
— Toby Howell [24:18]

d. UC Berkeley Researchers Claim Discovery of a New Color

Researchers at UC Berkeley have announced the creation of a novel color, termed "OLO," which they describe as a previously unseen hue. Utilizing a technique known as Oz, which employs lasers to target specific cones in the human eye, the researchers have enabled the perception of this unique color. While five individuals have reportedly experienced OLO, vision scientists like John Barber from the University of London argue that OLO is merely a highly saturated green rather than a genuinely new color. The experiment opens avenues for enhancing color perception in colorblind individuals by compensating for defective light receptors, though it has also sparked debate regarding the authenticity of introducing new colors.

Notable Quote:

"The problem is only five people in the entire world, entire history of the world has seen this new color. What is actually a new color or just a more saturated green is up for debate."
— Neal Freyman [26:20]

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Conclusion

In this episode of Morning Brew Daily, Neal Freyman and Toby Howell navigate through a turbulent economic landscape marked by plummeting U.S. markets and a weakening dollar, while also exploring the cultural implications of prediction markets in the wake of Pope Francis's passing. The discussion extends to Chipotle's strategic expansion into Mexico, the viral success of Dubai Chocolate amidst global pistachio shortages, and a series of impactful headlines ranging from Harvard's legal battles to groundbreaking technological advancements in AI and human vision. The hosts provide insightful analysis and engaging commentary, enriched by notable quotes that encapsulate the episode's key themes.

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For more insights and to stay updated, subscribe to Morning Brew Daily on your preferred podcasting platform or watch it on YouTube.

Transcript

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[Neal Freyman]

Good morning, Brew Daily Show. I'm Neal Freyman.

[Toby Howell]

And I'm Toby Howell.

[Neal Freyman]

Today, Chipotle will open its first locations in Mexico.

[Toby Howell]

What could go wrong then? In the wake of the Pope's death, people are taking to prediction markets to bet on the outcome of the upcoming conclave. It's Tuesday, April 22nd. Let's ride.

[Neal Freyman]

Good morning and Happy Earth Day, which takes place every April 22nd to raise awareness around environmental protection. To me, it's an opportunity to reflect on just how many things had to go right for us to be living here. The Earth happens to be located in a remote section of the Milky Way galaxy, which means fewer threats like a huge star devouring us. As for the star nearby, the sun, we have a key magnetic field that deflects its deadly flares. We have a moon that stabilizes the climate. A bodyguard in Jupiter that redirects asteroids and comets from smashing into us. And an active plate tectonic system that produces volcanoes whose eruptions may have led to the first instances of life. And if all that doesn't make us the best planet around, we also have unlimited breadsticks.

[Toby Howell]

Also, just for some more perspective on this Tuesday morning, if Earth's four and a half billion year history was squeezed into a 24 hour clock, humans, you, me, Neil, your neighbor Paul, everyone you ever know or have known showed up at 11:59:59pm so remember, we're guests who just got here. So take your shoes off, compliment the decor, and let's try not to leave a mess. And now a word from our sponsor, Planet O'Neal. Have you ever noticed how the right lighting can make a room feel totally different?

[Neal Freyman]

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[Toby Howell]

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[Toby Howell]

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[Toby Howell]

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[Neal Freyman]

Back to work after the three day Easter weekend and clearly didn't find it relaxing. The Sell America trade that has been stalking Wall street since President Trump announced Sweeping tariffs on April 2nd was back in full force. The S&P 500 and NASDAQ dropped more than 2% and the Dow lost nearly 1,000 points. That index is on pace for its worst April since the Great Depression. More significantly, the dollar continued its freefall down to a three year low against the euro, even while virtually every other major currency was higher. Bonds also sold off, continuing this unusual scenario that has spooked investors for the past couple of weeks. Remember when times get hairy, investors have flocked to Treasuries and the dollar because America has been the most dependable partner. The opposite is happening now. Meanwhile, gold rocketed higher to another record, topping 30 $500 an ounce for the first time ever. Analysts say that what we're seeing here, equities, bonds and the dollar all falling in tandem is investors fleeing American assets due to uncertainty around the trade war and President Trump's suggestions at firing Fed Chair Jerome Powell, which would abolish the Fed's independence that investors considered a bedrock of the global financial system. Trump did nothing to alleviate those concerns yesterday, ramping up his criticism of Powell. In a post on Truth Social, he called the Fed chair a major loser and demanded Powell lower interest rates immediately, which contributed to the market sell off. Toby Sinking dollar, sinking bonds, sinking stocks it's been a disturbing trend to investors and a sign they are increasingly losing faith in America as a safe haven.

[Toby Howell]

Yeah, not a fun combo whatsoever. So what does a weaker dollar actually mean? There are some pros if you're sitting as someone who thinks that US Exports should get cheaper, American made goods cost less overseas, which can technically boost sales for US Companies, help domestic factories, farmers, manufacturers, you name it. So it could support US Manufacturing, which is a stated goal of this administration. Companies may start making more things domestically if foreign goods aren't as cheap comparatively. That is a big argument for driving the US to dollar down. Some other Less prominent arguments are technically tourism to the US might go up, although we've seen the opposite happen just because of the general attitude that we've adopted towards other countries. And then finally can help pay down foreign debt. If the US has debt in dollars, which it does, paying it off is cheaper relative to other currencies. But there are also a lot of cons to a weaker dollar. One, imports get more expensive. Stuff made abroad, electronics, clothes, cars, food gets pricer. Remember, we import a lot more than we export. That's the whole basis of this trade war we're conducting. So that can fuel inflation. Then also traveling abroad gets more expensive. Now the opposite is true. Remember how everyone was going to Japan earlier in the year because there was a weaker yen. No more Japan trips for you as the dollar gets cheaper. And then also it just shakes investor confidence. As you said, as the sell America trade keeps percolating through the markets, you're just less confident in the US economy. So that manifests as more volatility and less foreign investment. So when you hear the dollar is weaker, the dollar just hit a three year low. Hopefully this provides a little more context around what that actually means.

[Neal Freyman]

And I also want to turn to the treasury yields as well, not just the dollar, because those yields are going off, people are selling bonds. This month has been a historic moment in the bond market. Like I wouldn't be surprised if Michael Lewis would write a book about it one day. We've seen the biggest weekly surge in the yield on 10 year treasuries in more than two decades. 30 year, 30 year yields had their largest weekly increase since 1987. For decades, foreigners, foreign investors have plowed money into the US treasury market because it is the bedrock of global finance. And it has led to this premium that Americans get on interest rates. Our 30 year. I know it doesn't feel like it now, but our interest rates for buying mortgage mortgages is, or forgetting mortgages is lower. Interest rates across the economy are suppressed than they would have had. Have foreign investors not plowed money, plowed trillions of dollars into our treasury market. It allows the government to borrow more cheaply. And now that yields are rising, you know, all of these borrowing costs across the economy are going up and it would downright, it's downright spooking investors that perhaps foreign investors are, you know, lowering their demand or interest in, in U.S. treasuries.

[Toby Howell]

What ties the on what we've been talking about together is gold this year. Because I mean gold is ripping. It is behaving like the Magnificent Seven so far, gold is outperforming the stock market by 42 and a half percent so far this year. Gold has always been that safe haven asset, but like, bitcoin has come along and tried to say, hey, we could be a safe haven asset. But that usually kind of correlates more closely with the actual stock market, specifically nasdaq. So gold, you know, the oldest metal, it is a store of value right now, and it's, and it's massively outperforming all these other asset classes that we've been talking about.

[Neal Freyman]

Gold could not move from where it is now this year, and it would already have its best year since 1980. Here's a crazy stat. Gold could not move from where it is now in 2025, and it would have its best year since 1980. So just truly a crazy run for gold. Moving on. Tributes poured in from across the globe yesterday after the Vatican announced that Pope Francis, the leader of more than 1 billion Cathol, died at age 88. In his 12 years as pope, Francis left behind a historic legacy of reform, such as clamping down on the church's financial misdeeds, embracing the global poor and marginalized, and addressing modern threats like climate change and artificial intelligence. But even before France's funeral plans were made, a big question came up. Who will be the next pope? No one will know until a conclave of cardinals chooses the next Catholic leader in one of the most unique and secretive traditions on planet Earth. But that's not stopping people from. From betting on it. Prediction markets, which surged in popularity during the last presidential election, have once again been thrust into the spotlight over the outcome of a new election. On polymarket, the prompt who will be the next pope? Has drawn more than $3.5 million in wagers. But that's not all. People are betting on which continent the new Pope will be from, or what name he will choose, or whether he'll be selected by May. Overall, the papal market has become one of the biggest active pools on the platform. Many have criticized this sort of papal wagering as distasteful and perverse, especially when Pope Francis was still alive. But, Toby, if you go back in history, there is a long tradition of people wagering on popes.

[Toby Howell]

Yeah, this is certainly not a new thing. The technology is new. But the fact that there was a gambling culture that existed around this is not new. There was a big gambling culture in Renaissance Rome. There were these things called sensales, which are essentially your bookie who, you know, you sent venmos to on the weekend they took bets on everything from, you know, the identities of new cardinals to who actually would be become a Pope. There's also newspapers and newsletters that would spring up around conclaves. People kind of liken it to the comment section on polymarket right now. So it shouldn't shock us that there has been this kind of long tradition of gambling around it. And obviously the spread of information at that time did impact the process of the new Pope. I wonder if we'll see a similar thing to day. There is this very egregious example back in 1555 when some rumor mongers spread this idea that one of the top candidates had a dive that lowered that candidate's chances in wagering, which probably led to a nice little profit on the side. So you can draw parallels to modern day markets where, you know, some rumors are going to fly. Poly market odds might change very quickly based on those rumors and someone might stand to make a profit. So nothing is new under the sun. We are, we've been seeing this all the way back in the 1500s. Now we just have polymarket.

[Neal Freyman]

We saw it back in the 1500s, but in 1591, the hammer came down actually from Pope Gregory the 14th. Yes, I'm reading these Roman numerals correctly. So he issued this bull called Kogi Nas that said, you can't bet on anything that has to do with popes or else we'll excommunicate you. Which was, you know, the worst punishment at the time. So for centuries, gambling on this did go down. In the early 20th century, the church lifted its ban on betting. And then over the 70s, 80s, 90s, we saw gambling, you know, start to pick up again on Pope's Paddy power. The last time this happened, in 2013, Paddy Power, which is a UK betting platform, you know, gained a lot of headlines for allowing people to bet on this outcome. It's just very interesting because, you know, unlike the NFL draft or these other things that people bet on, it is so secretive, you know, and I think a lot of people are probably going to watch the movie Conclave that that came out last year to learn more about this process. But basically no information escapes those walls. So we'll see how the odds change and what information they're trading on.

[Toby Howell]

Yeah, and by the way, if you think you're going to predict the next Pope, you're probably not, because Pope Francis started at 55 to 1 odds and never had better than 32 to 1 odds. So if you think you're going to nail the next papacy, you probably are not. Chipotle is opening a store where no one will mispronounce their name in the very country that inspired its cuisine, Mexico. The burrito chain is partnering with a restaurant operator who has experience running brands like Domino's and Starbucks to begin opening outposts in Mexico by 2026. The hope is that the familiar ingredients will make it a success south of the border as the company eyes growth outside of the U.S. but just because Chipotle's carnitas, guac, and other offerings take their cues from Mexican dishes, it doesn't mean that Mexicans will actually turn out. No one knows that better than another Mexican inspired chain, Taco Bell. It tried to enter the market back in 1992, but was essentially laughed at for its inauthentic naming conventions like taco status, especially when it was juxtaposed next to mom and pop taquerias. It packed up its cheesy gordita crunches and shut down every location just two years later. It's like bringing ice to the Arctic, historian Carlos Montecevas told the AP at the time. But sometimes the US Fight versions of traditional food and beverage do find success. Starbucks entered the Italian market in 2017 by leading into humility and a proprietary coffee blend tailor made for Italian tastes. And now it has 30 stores in operation. So, Neil, on a scale of Taco Bell to Starbucks, where do we think Chipotle is going to land?

[Neal Freyman]

It could go either way. It totally depends on how they do that. And you can see that by what Taco Bell did, because it tried to go into the Mexican market twice, adopting two very different approaches. In the early 90s, when it tried to go into Mexico, the first time it tried to present itself as this authentic taqueria. It was they opened in a taco stand and they tried to cater their menu and ingredients to fit into the local mosaic. That didn't work. So then they came back in the 2000s and said, you know what? You're right. We're. We're an American chain that is inspired by Mexican cuisine, but we're not really, you know, trying to be a part of your milieu. So they took out an ad in a newspaper saying, one look alone is enough to tell that Taco Bell is not a taqueria. It is a new fast food alternative that does not pretend to be Mexican food. Well, guess what? That didn't work as well. So I'm sure Chipotle is studying this a lot more closely than we are to see what is the right tactic to get people to embrace Chipotle. Are they trying to become an. Are they trying to present themselves as this authentic Mexican inspired restaurant that could fit into the local cuisine? Or are they just going to say, you know what, we're Chipotle, we're from, you know, Boulder, Colorado, and, you know, you like other American goods, so maybe you'll like this one as well.

[Toby Howell]

And then maybe it won't be something as sexy as their brand positioning that will make or break its fortunes in Mexico. Maybe it's just the cost of importing food to Mexico because it makes sense that to open a chain in Mexico because a lot of their avocados come from south of the border now they won't have to pay those import fees. So technically they should be able to keep their menu prices a little bit lower than you see. I mean, they're not going to be $16, $17, $18 burrito bowls, like I'm loading up in New York City because I'm getting extra guac. So potentially they will be able to fit in more with their supply chain and their prices to say that we're not like this Americanized chain with Americanized prices. Or maybe they won't be able to pull that off. So it could just be pricing power that ends up, you know, dictating the fortunes of Chipotle in Mexico.

[Neal Freyman]

If you were Chipotle execs, would you go in and try to say like, we're one of you, or would you adopt the second Taco Bell approach and just be like, yeah, we have burrito bowls. You probably have never heard of that before because we invented it in Colorado. But, you know, that is what we do. And, you know, I think you're going to like it.

[Toby Howell]

I think just lean into the quality aspect. Don't try to be anything you're not. Just say, hey, we make quality ingredients right there in front of you. Come try it if you want it. Up next, we got Toby's Trends.

[Neal Freyman]

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[Toby Howell]

Creamy, Crunchy, Exacerbating a worldwide shortage of pistachios, Dubai Chocolate is the latest TikTok trend that is leading to real world consequences. And it's also the latest Toby's trend that I want to talk about today. Dubai Chocolate is a sweet treat that consists of a milk chocolate bar stuffed with a cream, creamy green pistachio filling and shredded pastry known as kitafi or kanafe. First made by an Emirati chocolatier fix, it initially debuted to modest success back in 2021, but that modest success gradually turned into smashing success due to a single TikTok. A video posted in December of 2023 features a girl just eating Dubai Chocolate in her car. The ASMR vibes combined with the clearly delicious looking treat has since racked up over 120 million views and it has put some serious strain on its key ingredient, one nut trader told the Financial Times. The pistachio world is basically tapped out at the moment with the craze pushing prices to over $10 a pound. A 34% rise in just a year. And one chocolate shop in the UK sells Dubai Chocolate at more than double the price of its other bars. It does look like the only thing that can slow Dubai Chocolate's role now is shortages. The US Pistachio industry is coming off a poor harvest and now it's got to contend with half of TikTok clamoring for this delicious new treat.

[Neal Freyman]

Neal this is a very cool example of guerrilla marketing too, because the bars were first invented in 2021 by this British Egyptian woman living in Dubai, Sarah Hammuda, and she made these bars while she was pregnant because she wanted to, you know, kind of indulge herself. And she sent all these bars to a bunch of local Influencers and said, hey, do you want to try my chocolate? This is, you know, a tactic that a lot of people do when they're creat product, they're going to send it to influencers and see whether they make a video about it that happens to go viral. And you know, one caught on. He racked up so many millions of views and led to a global craze that's, you know, I've never had this but you know, you can't get it anywhere because it sells out in multiple hours. When they, when these stores have it in stock, it's leading to a global shortage of pistachios. So an absolute, an absolute sensation.

[Toby Howell]

One interesting aspect of this is the US is actually pistachios, the world leader in exporting pistachios. That's one thing we do at export. And when I say that they're the US crop, the US the most recent US crop had a shortage. It was actually because they had a higher quality than usual crop, leaving fewer of the cheaper, you know, shell free kernels that usually are used as ingredients in stuff like baking or chocolate. So it was almost too good of a harvest season for the United States. And also it's coming off of a year where there was a supply gluttony in 2023. So suddenly there was like this global supply exceeding Demand back in 2023. So maybe that coincided with the fact that a lot of chocolatiers were experimenting around with this ingredient. Ingredient. And so it's been like the worst of both worlds where they're like, all right, there's going to be a lot of pistachios because we're in the supply glut environment now. There's the supply shortage and prices are kind of skyrocketing and leading to, you know, Dubai chocolate being very expensive as well.

[Neal Freyman]

Well, I need to get my hands on this because it looks so good. Delicious. Okay, let's sprint to the fin final headlines. In its monumental battle against the Trump administration, Harvard has turned the volume up to 11, filing a federal lawsuit yesterday against the government for illegally freezing $2.2 billion in funding and threatening its academic independence as part of an anti Semitism crackdown at colleges. The country's wealthiest college accused the government of violating the First Amendment by attempting to use financial leverage to, quote, gain control of academic decision making. At Harvard. Alan Garber, the university's president, said the consequences of government's overreach will be severe and long lasting, saying that funding cuts imperil research into things like child cancer and infectious disease outbreaks. The White House replied to the suit by saying taxpayer funds are a privilege and Harvard fails to meet the basic conditions required to access that privilege. The gloves are officially off.

[Toby Howell]

Yeah. After Harvard took this stand and filed this lawsuit, over 150 university leaders from other US universities signed this joint statement where they were pushing back against what they see as government overreach on college campuses. They specifically called out the use of federal funding as this sort of pressure lever to get these universities to do what the administration wants. So it's big names, mit, Princeton, Yale, Brown, Tufts, Duke, you name it, they were among the signers. So you're seeing higher ed kind of rally behind Harvard here as they fight what they see as overreach from this administration. For our next headline, Airbnb Users Rejoice. The short term rental company is finally being transparent about the fees it charges. You know the feeling. You're cruising around on Airbnb search function, find the perfect little cottage upstate for a weekend getaway for the right price, and then you click it and boom, hit in the face by taxes and fees galore, pushing it right out of your price range. It was always a huge pain point for users, but that changed as of Monday, with the platform now displaying the total price fees. And all right from the outset and by default, this change aligns with the new US FTC rule, which requires rental platforms and hotels to disclose all fees transparently before purchase to prevent hidden junk fees. Neal feels like a big win for consumers.

[Neal Freyman]

It is. And you know, they can thank the FTC for that, for instituting this rule. What I'm going to be looking for is whether this leads to any pricing changes or any pricing decrease among hosts, because you know the pricing will be far more transparent as you're scanning. And there may be some indications that hosts will lower their prices because in 2023, Airbnb introduced an optional toggle button that you could go, you could show it, show the prices with fees or without fees. And Airbnb in a blog post last year said that after they introduced this toggle button, hosts behind nearly 300,000 listings removed or lowered their cleaning fees in the months following its introduction. So I wonder how this will affect pricing on Airbnb. And you're not the only one using chat CBT to do your work for you. The United Arab Emirates announced that it will begin using artificial intelligence to write new laws and review existing ones in the world's most ambitious plan yet to fuse generative AI and government. The goal, according to UAE leaders is to make the legislative process more responsive, agile and efficient. Sheikh Mohammed bin Rashid Al Maktoum said the new system will allow us to track the daily impact of laws on our people and economy using large scale data and it will regularly suggest updates to our legislation. The government expects AI to speed up lawmaking by 70%. The UAE has been pouring billions into AI development in order to become a global leader in the technology. And this move shows how it's diving in much deeper than other countries are comfortable with.

[Toby Howell]

Yeah, they already created this dedicated investment vehicle to kind of back AI related projects. They it's called mgx and they have an AIR AI observer on its own board kind of figuring out how to deploy money into AI companies. So it's AI all the way down when you look at uae. Also, the tongue twister of UAE has been something that we've been grappling with over the past few hours. So yes, clearly the most bold plan yet. They do think it just speeds everything up. How it's going to be managed and what pitfalls it could face is something that they're willing to try again. More autocratic leaning states have the ability to work fast and break things when it comes to experimenting with government, less so than a democracy like the United States. So they are going off kind of like the deep end here and seeing what is going to be the result of, you know, giving AI the reins of laws that govern their country. Finally, researchers at UC Berkeley have figured out how to hijack your eyeballs. But they're not forcing teens to stop rolling their eyes. Instead, they figured out how to show people a brand new, never before seen color called olo. Now, of course, it's impossible to imagine a color you've never seen before. Seriously, try it. But the lucky few who have seen OLO describe it as a blue green of unprecedented saturation. The new technique researchers use is called Oz and uses lasers to zero in on specific cones in your eyes in isolation to unlock hues beyond our natural comprehension. The cones in question are those most sensitive to green light, hence the name Oz. Because Emerald City, you get it. Beyond unlocking new color magic, the controlling of the retina on such a granular level is a totally new way to study vision. For example, you could play around with the technique to try and bring back full color vision to colorblind people by compensating for any missing or defective light receptors. But Neil, I'm personally excited to walk into a hair salon and ask them to hook me up with some OLO colored locks for the summer.

[Neal Freyman]

Well, anything would be better than what you usually do in the summer. I don't know if I'm sold on this new color. I think I'm more with John Barber from the University of London. He's a vision scientist. He said it is not a new color. It's just a more saturated green and called the work limited value. So this, this experiment has had some pushback, but I am curious to see the new color for myself. The problem is only five people in the entire world, entire history of the world has seen this new color. What is actually a new color or just a more saturated green is up for debate.

[Toby Howell]

Yeah. If you want to weigh in on this debate as well. Obviously you can't see the actual color, but we link the article in the show description and we also flash it on YouTube. It does look like kind of a turquoise vibe, but I think it's not it. That's clearly not it. It has to be, you know, beamed in your eye via laser. So I am bullish on OLO and I'm going to get my hair colored OLO if it's the last thing I do.

[Neal Freyman]

I think we have enough colors. Too many colors. All right, let's wrap it up there. Thanks so much for starting your morning with us and have a wonderful Tuesday. For any questions, comments, or feedback, send an email to Morning Brew daily@morning brew.com. we'd love to hear from you. Let's roll the credits. Emily Milian is our executive producer. Raymond Lute is our producer. Our associate producers are Olivia Graham and Olivia Lake. Uchenawa OGU is our technical director. Scoop Stardaris is on Audio Hair Makeup Loves the Earth. Devin Emery is our president, and our show is a production of Morning Brew.

[Toby Howell]

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