Users Trick UK’s Age Verification Law & KPop Takes Over Netflix

Summary

Morning Brew Daily Summary Episode: Users Trick UK’s Age Verification Law & KPop Takes Over Netflix
Release Date: July 29, 2025
Hosts: Neal Freyman & Toby Howell

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Introduction

In the July 29, 2025 episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into a variety of engaging topics ranging from emerging drink trends and stringent age verification laws in the UK to a surge in small-scale real estate investments and the meteoric rise of a K-Pop anime sensation on Netflix. The episode concludes with insightful discussions on the booming bobblehead memorabilia market and several pressing global headlines.

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Spaghetti: The Summer's Hottest New Drink

The episode kicks off with Neal introducing a novel summer beverage known as the "spaghetti." Initially confusing to many, including Toby, the drink is a creative blend of Miller High Life beer topped with Aperol, earning aliases like the NASCAR Spritz or Hobo Negroni.

• Notable Quote:
  Neal Freyman [00:25]: “A drink that got its start as a secret menu item for bartenders and others in the service industry has officially hit the mainstream.”

The origin traces back to a Baltimore brewery, where it was crafted as a “bastardized Aperol spritz.” Its popularity has skyrocketed, with Insider reporting a 65% increase in orders in the first half of 2025 compared to last year, and a staggering 1,000% rise since 2022.

• Toby's Take:
  Toby Howell [01:04]: “It captures the vibes perfectly right now. So next time you're out, give it an order.”

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UK’s Age Verification Law and the VPN Surge

A significant portion of the episode addresses the UK's new Online Safety Act, which mandates robust age verification for online platforms displaying adult content. Despite the law's intention to protect minors, Neal and Toby discuss the unintended consequences, notably the surge in VPN usage as users circumvent these restrictions.

• Neal’s Explanation:
  Neal Freyman [02:28]: “The Online Safety act... requires that online platforms... use a method that is 'strong and highly effective.'”

The law’s enforcement faces challenges as platforms like Pornhub, X, Reddit, and Discord have adopted easily bypassed age checks. Recent data shows that VPN app downloads in the UK have surged, with Proton reporting a 1,800% spike.

• Toby’s Insight:
  Toby Howell [04:06]: “A lot of people... because a lot of countries are going to see changes when it comes to Internet privacy.”

The hosts also highlight global parallels, noting similar legislative moves in the US, France, Ireland, and Australia, raising concerns about privacy invasions and the technology's ability to accurately verify age without compromising user data.

• Neal’s Concerns:
  Neal Freyman [06:04]: “These are very sensitive pieces of personal information... security experts are saying this is not just a question of if these will get hacked, it's a question of when.”

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Real Estate Trends: Surge in Individual Investors

As mortgage rates linger near 7%, the traditional housing market faces a slowdown in individual homebuyers. In contrast, individual and small-scale investors are capitalizing on the opportunity, leading to a record 30% of single-family home purchases this year, up from an average of 18.5% between 2020 and 2023.

• Neal’s Analysis:
  Neal Freyman [09:09]: “Investors are swooping in... because very few individual homebuyers are buying a house right now.”

Toby elaborates on why smaller investors dominate the market, citing their ability to take risks and the reduced competition from individual buyers. This trend is further supported by regional variations, with hotspots like Hartford, Springfield, and New York City experiencing significant price hikes due to constrained inventory, while southern markets like Austin and Tampa see declining prices thanks to ample new constructions.

• Toby’s Observation:
  Toby Howell [09:59]: “Smaller investors can take a lot more risk... so they're just so much more active right now.”

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Entertainment Spotlight: K-Pop Anime Takes Over Netflix

A highlight of the episode is the explosive success of the anime movie K Pop Demon Hunters on Netflix. Originating as a modest release with 9.3 million viewers, the film has since surged to become the most-watched animated movie in Netflix history, also propelling its fictional band’s single to the top of Spotify's global charts.

• Neal’s Excitement:
  Neal Freyman [12:49]: “Song of the Summer has to be 'Golden' by Hunt Tricks... it's so good.”

The movie's global appeal is partly attributed to its use of North American English dialogue, making it accessible beyond Korean audiences. Hosts discuss how this success aligns with Netflix CEO Reed Hastings's 2021 vision to rival Disney in family animation, highlighting the potential for K Pop Demon Hunters to spawn a lucrative franchise akin to Disney’s ecosystems.

• Toby’s Perspective:
  Toby Howell [13:53]: “Betting on Korea was the smartest thing that Netflix did... this is the nexus of all three of those trends.”

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Toby's Trends: The Bobblehead Boom

In the Toby’s Trends segment, the hosts explore the resurgence of bobbleheads in the sports memorabilia market. Once niche collectibles, bobbleheads are now commanding high resale values, with unique editions like the Travis Scott Houston Rocket and Mac Miller Pittsburgh Pirates bobbleheads selling for up to $300.

• Neal’s Commentary:
  Neal Freyman [18:27]: “There's no denying how much of a force they are in the stadium promotion field.”

Toby highlights the strategic marketing behind bobblehead nights, noting significant attendance boosts and fan engagement. The discussion underscores the transformation of bobbleheads from simple toys to sophisticated, highly sought-after collectibles, driving both sales and event attendance.

• Toby’s Insight:
  Toby Howell [19:53]: “Visitors are pacing to rise 25% this year... it is a thing.”

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Final Headlines

The episode wraps up with brief coverage of pressing news stories:

1. NYC Office Shooting: A tragic incident on Park Avenue resulted in four fatalities, including a police officer and a Blackstone executive. The suspect, Shane Tamura, reportedly suffered from CTE and referenced another former player’s suicide in his note ([21:26] Toby Howell).

2. Tesla’s AI Chip Deal with Samsung: Tesla secures a $16.5 billion agreement with Samsung to produce next-generation AI6 chips in Texas, aiming to enhance its autonomous driving systems and robotics initiatives ([22:34] Neal Freyman).

3. China Reverses One-Child Policy: Facing a depopulation crisis, China introduces a nationwide child care subsidy program, offering $500 annually for each child under three, signaling a significant policy shift from the previous one-child limit ([24:17] Toby Howell). The discussion touches on global low birth rates and the efficacy of financial incentives versus supportive measures like parental leave.

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Conclusion

Neal and Toby conclude the episode by reflecting on the diverse topics covered, emphasizing the interconnectedness of technology, culture, and economic trends. They invite listeners to engage with the show via email and tease the continuation of insightful discussions in future episodes.

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Notable Quotes Recap:

• Neal Freyman [00:25]: “A drink that got its start as a secret menu item for bartenders and others in the service industry has officially hit the mainstream.”

• Toby Howell [01:04]: “It captures the vibes perfectly right now. So next time you're out, give it an order.”

• Neal Freyman [02:28]: “The Online Safety act... requires that online platforms... use a method that is 'strong and highly effective.'”

• Toby Howell [04:06]: “A lot of people... because a lot of countries are going to see changes when it comes to Internet privacy.”

• Neal Freyman [06:04]: “These are very sensitive pieces of personal information... security experts are saying this is not just a question of if these will get hacked, it's a question of when.”

• Toby Howell [09:59]: “Smaller investors can take a lot more risk... so they're just so much more active right now.”

• Neal Freyman [12:49]: “Song of the Summer has to be 'Golden' by Hunt Tricks... it's so good.”

• Toby Howell [13:53]: “Betting on Korea was the smartest thing that Netflix did... this is the nexus of all three of those trends.”

• Neal Freyman [18:27]: “There's no denying how much of a force they are in the stadium promotion field.”

• Toby Howell [19:53]: “Visitors are pacing to rise 25% this year... it is a thing.”

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Stay Updated: For more insights and daily updates, subscribe to Morning Brew Daily on your preferred podcast platform or watch on YouTube.

Transcript

[Neal Freyman]

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

[Toby Howell]

And I'm Toby Howell.

[Neal Freyman]

Today, VPN use is soaring in the UK after a new age verification law went into effect.

[Toby Howell]

Then the anime movie K Pop Demon Hunters is a Netflix sensation and could help it take on Disney. It's Tuesday, July 29th. Let's ride.

[Neal Freyman]

It only took until the last few days of July, but it looks like we finally have a drink of the summer. The spaghetti. At first I thought this was just how Tony Soprano would say spaghetti. But no. The spaghetti is a Miller High Life topped with a splash of Aperol, which some of you may know by other names like NASCAR Spritz or Hobo Negroni. Whatever you call it, lots more people are drinking it. With orders for the spaghetti in the first half of 2025, up 65% from last year and up by 1,000% since 2022, according to Insider. And so a drink that got its start as a secret menu item for bartenders and others in the service industry has has officially hit the mainstream.

[Toby Howell]

I won't lie, Neil. No idea this was even a drink. When people were talking about in the office yesterday, I legitimately thought they were pronouncing spaghetti wrong. The origin of the drink does go back to this Baltimore brewery. A bartender there called it a bastardized Aperol spritz and it is this sort of insider drink, but apparently it's delicious. And now it has a reputation as kind of a no frills cocktail that embodies this recession indicator mentality. It's a beer cocktail. Not as expensive, but more dive bari, but captures the vibes perfectly right now. So next time you're out, give it an order. But I hope to goodness the bartender knows what it is because if not, you're going to get a very weird look because you just ordered spaghetti at a bar. And now a word from our sponsor, Range Rover. Neal, what do you think makes a great leader?

[Neal Freyman]

Well, that's a tough one, Toby. If I really had to nail it down, I think I'd say someone who's a risk taker, someone who's determined and passionate, and someone who leads by example.

[Toby Howell]

It sounds an awful lot like you're describing the Range Rover Sport.

[Neal Freyman]

Well, that may be because that's what you can expect from the Range Rover Sport. Each model offers a dynamic, sophisticated take on sporting luxury. With dynamic air suspension, you can achieve agility, control and composure.

[Toby Howell]

Take it off road with adaptive off road cruise control that monitors ground conditions and acclimates to the present terrain. The adaptive dynamics reduces unwanted body movements to deliver smooth and composed handling.

[Neal Freyman]

So rise to any occasion and build your Range Rover Sport at range Rover.com US/Sport that's range Rover.com/US/Sport on Friday, the United Kingdom instituted age verification for online platforms showing adult content. And to no one's surprise, people have spent the last few days easily skirting the new rules. The Online Safety act, as the law is known, requires that online platforms showing pornographic material verify that users are 18 or older using a method that is quote, strong and highly effective. So having an I am over 18 button that you click on is is no longer good enough. The idea behind the law is to prevent kids from seeing the most harmful parts of the Internet. And sites from pornhub to X to Reddit to Discord have all instituted AIDS checks in compliance with the law. The problem is they are very easy to circumvent using VPNs or virtual private networks, which disguises your location. Online VPN use has skyrocketed in the UK since the Online Safety act went into effect and as of yesterday morning, half of the top 10 free apps in the UK App Store were VPN services. One VPN provider, Proton, told the BBC that downloads had spiked 1800%. Enforcement is just one of the many challenges facing UK authorities as they try to make the Internet safer for kids because this law has many critics from the privacy and security sector. While acknowledging the law is well intentioned, they say that age verification techniques platforms are using open a Pandora's box of privacy issues that that don't just affect kids, but everyone using the Internet. Toby, who could have seen this coming?

[Toby Howell]

A lot of people, because a lot of countries are going to see changes when it comes to Internet privacy. Last month the US Supreme Court paved the way for certain states to require pornographic websites to age tech users who are under 18. And then courts in France also ruled that you would need to do the same. Ireland implemented similar age checking laws. I was literally there last week and was scrolling on X and ran into a video that says you have not verified your age. You cannot watch this. And then the European Commission is testing an age verification app as well. So and actually the probably the country that we haven't talked about is Australia who wants to ban social media for children under the age of 16. So that is another country where age verification is front and center. So yes, this is controversial right now because you do want to protect children online. That is a big and urgent issue right. Right now. But it also impedes everyone's ability to access the Internet, especially if you start limiting certain things for political reasons as well. Maybe a government steps in and say, hey, I don't want kids seeing LGBTQ concert content or reproductive health information. That's where it gets into a very slippery slope.

[Neal Freyman]

So why are privacy experts raising the alarm? Like, what are the techniques or methods that platforms are instituting in order to comply with this law that asks you, requires you to verify ages? Well, one of those techniques is you have to upload a credit card. Another is you upload a photo or government id. And then the final one is that is being used by many websites is that you have to submit a selfie, which a machine learning algorithm uses to estimate your age. Now, these are very sensitive pieces of personal information that you're uploading to websites and often third party providers that websites are employing to do these age verification techniques. Which is why security experts are saying this is not just a question of if these will get hacked, it's a question of when.

[Toby Howell]

Yeah, we've already seen it happen. One age verification platform used by TikTok, Uber and X has been hacked and leaked sensitive information. Just yesterday on the show we talked about the app T that was supposed to help protect women and, you know, vet their dating partners also was hacked and a lot of their personal information was leaked as well. So most privacy experts say, yeah, it's just a matter of when this is going to happen. And it's not a perfect technology yet. You can spoof it, you can fool it. A lot of people on Reddit were showing that they used a video game character's face to beat Reddit's age verification system. So this is a fledgling technology and yet the laws have kind of outpaced it already and saying you're going to have to figure this out. Even though the technology isn't there yet.

[Neal Freyman]

And people are working to figure this out. There are proponents of age verification who say that there are techniques that can be used that minimizes data collection. One of those methods is by using an authentication token. It reminds me a little bit of what Sam Altman is doing with that orb. But basically you only get your age verification, your age verified once through a selfie or another method, and you receive an authentication token, which is a credential that you can use across the Internet. So you just have this age verification method once and you use whatever you receive and then return this credential to log into all these websites that now require you to be over a certain age. Well, that technology just isn't here yet. We'll see Going forward, if you are a country that is implementing an age verification software, then expect that VPN use to soar, especially in Australia, which is doing the social media ban for kids under 16. VPN providers have your servers ready. Don't be surprised if your new neighbor isn't planning to stay in the area for a long time. As individual homebuyers get frozen out of an unaffordable housing market, real estate investors are swooping in. Investors who buy houses to flip or rent have accounted for 30% of single family home purchases so far this year. That is a record high in data going back back 14 years. Between 2020 and 2023, that share averaged just around 18.5%. According to Bright Edge Institutional investors that own More than 1,000 homes account for only 2.2% of investor owned homes in the first three months of the year. The vast majority, about 85%, are mom and pop investors who own between one and five homes, while those between six and 10 properties contribute another 5%. What's even more illuminating is that investors haven't bought that many more homes and than they had been just 1.2% more than a year earlier. But they're grabbing a much bigger share of the pie. And that's because very few individual homebuyers are buying a house right now. With mortgage rates hovering near 7%, the spring housing season, which is typically the busiest stretch of the year, notched its lowest sales levels since 2012. Prices hit a new record in June with the median home price rising above $435,000. And it seems no one can afford a house except for investors who have some cash on hand or can tap into home equity for from their portfolio.

[Toby Howell]

Yeah, smaller investors are super active right now. One because even though mortgage rates are elevated, even though it's the economy is in a little bit of a tough spot, the business is still solid, you can still fix up and rent out homes. Renting market is still very solid right now. And then also these smaller investors can take a lot more risk. If you are a giant investor like a Blackstone, you probably can't necessarily pitch to your LPs, pitch the pension funds that hey, we're going in the housing market right now, it doesn't necessarily give them a lot of confidence. So smaller investors can take those risks and so do jump in. And then you're right, there are less actual homebuyers out there to compete with. So a lot of sellers are saying if we get any offer right now, we used to get 12 offers on a property. Now we're getting two if we're lucky. So suddenly this opportunity is there for smaller investors, which is why they're just so much more active right now.

[Neal Freyman]

Yeah. In July, 38% of homebuilders reported lowering prices on their deals. And we're seeing a very fascinating divergence and in home price trends across the United States, really depends on where you live, whether you'll see your home going for more than asking or if it's falling off a cliff. Because in this latest report that came out last week, home prices jumped 4.2% in the Northeast. If you live in a place like Hartford, you saw home prices grow 7.3% from a year ago. Some reports say that Springfield, Massachusetts, my hometown, is the hottest housing market in the United States. They were up 6.2% in New York City, 6.1% in Milwaukee. And the reason for that is there hasn't been a ton of building activity. Inventory is constrained. But then you go to the South. Home prices were basically flat year over year. And the reason is that because there's been so much building activity in places like Texas and Florida. So if you look at certain markets in those areas, you're seeing a lot of home price declines. Austin. Austin's home prices fell 4.3% from a year ago. Tampa was down 3.4% and in Miami, prices were down 2.6%. The slowest housing market of all is in near you Toby, Fort Myers, Cape Corral, where prices are down 11% in the last two years.

[Toby Howell]

All the Toby's are moving up to be next to all the Neil's. We can say that much. Let's move on. The hottest movie on Netflix right now is also the hottest band on Spotify. It's not because the streaming service found another Selena Gomez esque dual threat. It's because the anime K pop Demon Hunters has taken over the platform and is well on its way to becoming the most watched animated movie in Netflix history. When the movie debuted, it had a modest 9.3 million viewers. But thanks to strong word of mouth, it's only grown from there, becoming the first original movie on Netflix to hit a new peak in its fifth week since its debut. And the Spotify Angle, a single from one of the fictional bands in the movie, has been a fixture on Spotify's most streamed global songs, becoming the first K pop song ever to take the number one spot. Currently, five songs from the movie are in the top 15 on Spotify's daily charts. Part of the success of K Pop Demon Hunters which follows, as you might have guessed, K Pop stars who moonlight as Demon Hunters is its global appeal. Since it premiered back in June, it has hit Netflix's top 10 list in every single country. The service tracks 93 in total. Despite being a production grounded in Korean culture, Washington Post columnist Jeff Yang notes that the film's dialog, accent and diction are delivered in North American English, which may help explain its appeal outside of Korea itself. Neal, this movie and its music are twin juggernauts. We've been waiting for the Song of the Summer. Maybe you've just needed to log on to Netflix to find it.

[Neal Freyman]

Yeah, Song of the Summer has to be golden by Hunt Tricks, which is not a real band, but it is so good. Back in 2021, Reed Hastings, Netflix's CEO, said Netflix is trying to beat Disney in family animation. It's 2025. We haven't seen that strategy pan out at all until this movie came out. Because not only is it a super smash hit movie, it's tracking in 93 countries and blowing up the Spotify charts. But it could be the backbone of a franchise, which is what Disney is so good at, creating these ecosystems around certain IP that allows them to sell merch and theme parks and create, you know, a Hu Halo effect around certain movies and then lay into it. Netflix doesn't have a lot of original products, original movies or TV shows that is, it is able to do that with. I'm only thinking of maybe Squid Games or Stranger Things. So this could be huge in that it lays the bedrock for a particular franchise around K Pop Demon Slayers or K Pop in general, which is absolutely blowing up.

[Toby Howell]

Yeah, betting on Korea was the smartest thing that Netflix did. Obviously Squid Game has been the biggest show in Netflix's history and what they did is actually make a multibillion dollar investment in the country's content. They want to extend this strategy. They want to find more K Pop Demon Hunters. This wasn't some necessarily small ball under the radar show like it was. It came from the studio that produced into the Spider Verse, the animation studio. It's a Sony production. So this is not necessarily something that came out of nowhere for Netflix. They have been investing in Korean stories because they have shown global appeal. And I do think one final angle to this is that they are going after the kids here. PG films have outgrowth PG13 films in the box office over the last three years. So this is another one in that PG area. And they are not just competing against Disney here. They're trying to win over Generation Alpha who is gravitating towards YouTube. You have to make Netflix a place that these kids want to go to, want to spend their time at. Because YouTube is what's always looming, always taking time away when it comes to the kids. So this has a ton of bang for its buck right now. Invest in PG films, invest in animated films, invest in Korean films. This is kind of the nexus of all three of those trends.

[Neal Freyman]

Yeah, and the discourse has been, wow, is Netflix coming for Disney? But I should point out Netflix is already blowing away Disney. It has a $500 billion market cap. Disney's market cap is just 216 billion. So Netflix has already conquered Disney. Maybe family animation is just the final area to dominate.

[Toby Howell]

Up next, we got Toby's trends.

[Neal Freyman]

Toby, what makes you feel your best?

[Toby Howell]

A nice bubble bath, some smooth jazz.

[Neal Freyman]

And when modern performance wear meets classic style.

[Toby Howell]

I was going to say chocolate covered pretzels, but that too sounds like you're talking about Mizzen and Maine.

[Neal Freyman]

That's because I am. Toby. Their Leeward dress shirt is the original performance fabric dress shirt. With those moisture wicking, wrinkle resistant, four way stretch and machine washable shirts, it's easier than ever to feel your best while looking tres chic.

[Toby Howell]

I'm partial to the Helzman pant. It's just like a classic tailored pant with all the benefits of the shirt and an elastic waistband and stretch pockets.

[Neal Freyman]

Head to mizzenandmain.com and get 20% off your first purchase with code BREW20. That's missing in main.com and code BREW20. Toby, what if I told you there was one tool with the power of nine tools?

[Toby Howell]

You mean like some sort of nuclear power powered super Hammer?

[Neal Freyman]

No Toby, not a Super Hammer gem. With Jam you can replace up to nine recruiting tools like ATS, CRM, sourcing, scheduling and analytics. Its unique AI first recruiting platform comes with over 650 million candidate profiles so you can reduce reliance on expensive talent sources and eliminate redundant tools.

[Toby Howell]

Gems customers love that they can consolidate completely or enhance their current setup. Most teams save 30 to 50% of while boosting productivity up to five times.

[Neal Freyman]

With gems AI agents embedded into every workflow. Recruiters can spend less time system switching, more time relationship building.

[Toby Howell]

Plus you can use GEMS ROI calculator to estimate potential savings and productivity gains. To get started, check out gem.com/roi. That's gm.com/roi. Welcome back to another edition of Toby's Trends where I spelunk into the corners of the Internet to emerge with a trend you should your eye on and today's trend is all about the hottest thing in sports memorabilia. It's not game worn jerseys or trading cards. It's bobbleheads. Yes, the humble bobblehead has fans shelling out big bucks to snag a toy with questionable next stability. Teams are taking notice and cooking up collabs for rabid fans. There's the Travis Scott Houston Rocket bobblehead that is reselling for nearly $200 on StockX. A Pittsburgh Pirates Mac Miller bobblehead is pushing $300 while Paul skins is Bobblehead night had fans lining up for hours ahead of the game. As you can see from the list above, not all the toys are even related to athletes. The New York Yankees, for instance, has a George Costanza sleeping under his desk. Bobblehead night coming later this summer with ebay presale listings for the toy popping up in the mid $200 range already. Heck, even the Pope has a bobblehead. Neil Collectible culture is all around us, from Labo boos to Trader Joe's tote bags and has always been a big aspect of sports. But right now, bobbleheads are hotter than anything else.

[Neal Freyman]

And that is excellent news because while I didn't collect Pokemon cards as a kid, I do have over a dozen Phillies bobbleheads. I'm not sure whether a Chase Utley one circa 2006 is the kind of thing that people would shell out for because as you mentioned, these bobbleheads have evolved over what maybe you would think they were 20 years ago to include different types of characters and they're just more sophisticated and intricate looking in their manufacturing process. But there's no denying how much of a force they are in the stadium promotion field. I mean, they are driving so much attendance, they're driving people to line up for hours. The Los Angeles Dodgers is doing five different Shohei Ohtani bobblehead promotions this year. The first one in April drew people coming out to the ballpark seven hours before. And you mentioned the Pirates Paul Skins one. Well, they sold out that game. And do you know how hard it is to sell out a Pirates game this year? The Cincinnati Reds had their highest attendance in ballpark history when they did an Ellie De La Cruz bobblehead night. And this Saturday I'm going to the Brooklyn Cyclones for Seinfeld night where they're giving away a bobblehead. I've been a Kramer bobblehead. I have been warned that you have to get there hours early in order to secure this bobblehead. And there they are asking people to pay a much higher price in order to make sure that you get get the bobblehead. And the Cyclones marketing guys said that they see an average of 30% higher attendance on days when they do bobblehead night.

[Toby Howell]

Phil Sklar, the co founder and CEO of the National Bobblehead hall of Fame and Museum, told Axios, we're so glad that's the thing. We're seeing bobblehead sell for hundreds, even thousands of dollars, literally. I put that quote in not because it's a great quote, but just I wanted people to know that it is a thing. It's in Milwaukee and it's also having a great year. Visitors are pacing to rise 25% this year. When I mentioned the Pope bobblehead, that's actually coming from the museum in the hall of Fame there as well. So if you're in the Milwaukee area, go give them a drop in. But this has me thinking, Neil, MBD bobbleheads. Is that vain? Is that all the fame going to my head that I want a giant head bobblehead Versions of our that's par.

[Neal Freyman]

For the course for you.

[Toby Howell]

Let's put it on the desk right here. Let's get a Toby and Neil Bob.

[Neal Freyman]

I think the economics are pretty good because if you look at how much they cost you, you know, just call up a factory in China, they'll make one for you for 5 dol dollars. And clearly the markups are pretty high. So Toby, after the show you should look into that. Okay, let's sprint to the finish with some final headlines. A police officer and a Blackstone executive were among the four people killed after a gunman opened fire in a New York City office building yesterday evening, right in the thick of the afternoon rush hour. The suspect, a 27 year old man from Las Vegas, walked into one of the most famous office buildings in the city on Park Avenue, home to the NFL, Blackstone and kpmg, armed with an assault style rifle and he killed four people as he made his way from the lobby to the 33rd floor, the location of the offices of the building's property owner before killing himself. Police said the suspect had a documented history of mental illness but are still working on identifying a motive.

[Toby Howell]

Yeah, Shane Tamura, who is the suspect that was identified, grew up playing football and CNN reported he had a suicide note in his pocket that said he suffered from cte. He name dropped Terry Long, who is this former player from the Steelers who also died by suicide who also suffered from ct. So there looks to be some connection to football or to the NFL, which of course had an office in the building. But yes, obviously this happened pretty close in our backyard. So thinking of everyone affected by it, let's move on. Tesla has found a place to make the brains of its robots and cars. The company signed a 16 and a half billion dollar deal with Samsung yesterday to produce its next generation AI6 chips at a new Texas factory. Elon Musk has been working on an all in one chip designed to handle everything from powering Tesla's full self driving system and optimus robots to running large scale AI data centers. And Musk expects to spend even more with Samsung as the company doubles down on this custom chip approach that is crucial to its plans to transform itself from just an automaker into an AI and robotics juggernaut. Neil, you don't hear about Tesla's chip efforts all that often, but they are at the center of everything they are doing.

[Neal Freyman]

And you could say this is an example of Elon Musk going full founder mode and getting very hands on with the production process he called it. This is a critical point as I will walk the line personally to accelerate the pace of progress. He also noted that one reason why they agreed to do this deal with Samsung was that Samsung is allowing Tesla to assist in maximizing manufacturing efficiency. The the strategic importance of this is hard to overstate. Those are all from Elon Musk, so you can see that he will be a fixture at this Samsung plant which also got a is a huge boost to Samsung because this Taylor, Texas plant, they don't have a single customer. So the fact that Tesla is swooping in to sign this deal is a big boost for that particular plant. And it accounts for 7.6% of Samsung's entire 2024 revenue. And that's why you saw Samsung shares gain 6% yesterday and Tesla shares gained around 3% as well. Has anyone flip flopped harder than China and making babies? Until 2016, it had a policy limiting parents to one child per family. Now facing an escalating depopulation crisis, it's scrambling to reverse the damage. Yesterday, the government said it will give families about $500 a year for each child under the age of three, retroactively applied from January 2025. It's China's first ever nationwide child care subsidy program and reflects just how dire the situation is. The number of births in China last year totaled 9.5 million, which is just over half the 17.9 million peak in 2017. Demographers say a rapidly aging or even declining population would have huge ramifications for the economy with more elderly people to support and fewer workers in the labor force.

[Toby Howell]

It's not just China who are pushing programs like this. Two thirds of the world's population currently live in countries with below replacement level birth rates. That includes the US as well. And that's why we've seen the Trump administration pass a bill that allows the government to fund $1,000 investment accounts for babies born through 2028. But the question always leads back to can money actually spur a baby boom? And right now studies have showed that they do minimal long term, you know, effects on fertility rates. Some say that the better approach is actually just paid parental leave, expanded access to affordable child care. Those are more effective in catalyzing long term birth rates. Cash is good and maybe in the short term, but not necessarily leading to long term changes.

[Neal Freyman]

So everyone governments around the world will be watching to see how this massive Chinese subsidy experiment works out. That is all the time we have. Thanks so much for starting your morning with us. Have a wonderful Tuesday. Stay cool out there today. It is going to be another scorch torture in many parts of the country. If you have any thoughts on today's episode, send an email with questions, comments or feedback to Morning Brew daily@morning broad.com 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 Makeup has K Pop Demon Hunters stuck in their head. Devin Emery is our President and our show's production of Morning Brew.

[Toby Howell]

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

[C]

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