Morning Brew Daily – August 27, 2025

Episode Title: Will Apple Reinvent the iPhone? & AI is Reportedly Killing Entry-Level Jobs
Hosts: Neal Freyman and Toby Howell

Episode Overview

On this lively and insightful episode, Neal and Toby break down several major business and tech stories impacting the world today:

• President Trump's unprecedented attempt to remove a Federal Reserve Governor and what that means for central bank independence.
• Apple's upcoming big product event and hints of real, paradigm-shifting iPhone innovation for the first time in years.
• The first clear research showing generative AI is eliminating entry-level jobs and shifting the job market, especially for recent grads.
• Spotify’s foray into social features with in-app DMs.
• Rapid-fire news: SpaceX’s Starship milestone, government stakes in defense contractors, the Cracker Barrel logo saga, and the Mediterranean diet miracle.

Throughout, the tone is witty, conversational, and loaded with cultural references and a touch of skepticism—classic Morning Brew.

Key Discussion Points & Insights

1. Taylor Swift Engaged to Travis Kelce: America’s Royal Wedding Moment

• The episode opens with reaction to the news that Taylor Swift and Travis Kelce are engaged, comparing the announcement’s cultural impact to the moon landing for millennials.
  • Neal: “When these two get married, it’s going to be the closest thing to a royal wedding we Americans have ever seen.” (00:57)
• Jokes about the likely influence Swift’s wedding esthetic will have on the wedding industry for years to come.
• Amusement over Kelce’s casual Instagram handle: “killatrav” (01:34)

2. Trump Attempts to Remove Fed Governor Lisa Cook – Fed Independence at Stake

• Summary: Trump’s effort to fire a Federal Reserve Governor over unproven allegations could set a historic legal precedent, raising alarms over Fed independence.
• Key Details:
  • No president has ever tried to remove a Fed governor since 1913.
  • Supreme Court has ruled before (e.g., 1935, Humphrey’s Executor) that Congress can restrict presidential firing powers, but recent trends favor executive authority.
  • Markets reacted mildly (slight rise in bond yields, stocks steady).
  • Experts warn the Fed’s independence—crucial for economic stability—could be undermined.

Notable Quotes

• Neal: “It is no exaggeration to say that the Fed’s independence and role in the international financial system could hang on Cook’s fate.” (04:29)
• Toby: “For cause is just the phrase that you’re going to hear so much, because that is generally meant to mean gross misconduct… not necessarily stuff you did pre-appointment.” (04:44)
• Neal: “This is unprecedented. This has never happened ever in the history of the Federal Reserve since it was created in 1913.” (05:30)

Timestamps

• Discussion starts: 02:56
• Legal precedent and constitutional implications: 05:30–06:50
• Market reaction: 06:50–07:49

3. Apple’s Big September Event – Is Real Innovation Coming Back to the iPhone?

• Event: Apple to unveil iPhone 17 and the new “iPhone Air” on September 9.
• Hardware Refresh: iPhone Air will be slimmer (2mm reduction), single rear camera, shorter battery life—a wholly new design.
• “Three Year Makeover Plan”: Includes an eventual foldable phone and, in 2027, a radically new curved-glass “iPhone 20.”
• Market Context: Apple is focusing on hardware while competitors lean into AI. Its U.S. market share is slipping as Samsung gains ground with hardware innovation (e.g., foldables).
• Investor Perspective: Apple stock rebounding after a tough start to the year, aided by manufacturing commitments and a return to growth in China.

Notable Quotes

• Toby: “Using a phone now feels a lot like using a phone from five years ago. We’ll see if this event can bring back some of that wow factor.” (09:09)
• Neal: “It’s a zig where other tech companies have zagged… Apple just leaning into what it does best, which is make really cool hardware. We’ll see whether consumers bite.” (09:37)
• Toby: “Two new form factors in the next three years, that is something that could bring that pizzazz back to Apple’s hardware.” (10:22)

Timestamps

• Segment start: 08:13
• Hardware vs. AI focus: 09:37
• Market dynamics and Apple’s comeback: 11:24

4. AI’s Real-World Impact: Fewer Entry-Level Jobs, Especially for Grads

• Highlights from Stanford Study:
  • First clear evidence that generative AI is eliminating jobs, especially for young and entry-level workers.
  • 16% decline in employment for younger workers in AI-vulnerable sectors (software development, customer service) since ChatGPT’s launch in late 2022.
  • Opportunities increasing for experienced workers and those who can “centaur”—work in concert with AI.
• Wider Impact:
  • Computer science majors now face some of the highest unemployment rates among college grads.
  • Raises critical questions: If AI replaces junior jobs, how do young workers ever gain the real-world experience they need?

Notable Quotes

• Neal: “This is the fastest, broadest change that I’ve seen. Buckle up.” (Citing Eric Brynjolfsson, 13:41)
• Toby: “If AI is wiping out all these junior roles, how do the newer workers ever gain that tacit knowledge that makes older workers invaluable? So it’s almost like a very slippery slope…” (13:49)
• Neal: “Computer science and computer engineering majors have some of the highest unemployment rates of any industry—6.1% and 7.5% respectively. That is more than double the unemployment rate for biology and art history grads.” (14:33)
• Toby: “You’re going to hear a lot more going forward about centaur jobs, where humans and AI combine strength. They found centaur jobs often outperform one or the other.” (15:38)

Timestamps

• Segment start: 12:49
• Impact on new grads and centaur jobs: 13:49–15:38

5. Spotify Adds DMs — Social Features Aimed at Deeper Engagement

• Features:
  • Direct messaging within Spotify app, initially outside the U.S., for users 16+.
  • DM function limited to users with prior interaction (jams, blends, collaborative playlists).
  • Controls include blocking, rejecting, opting out.
• Strategic Rationale: Consolidate song/podcast shares within the app, create stickier user experience, potential to morph from pure tool to social platform.
• Hosts speculate: Could Spotify become an “accidental dating app,” similar to what’s happened on Strava and LinkedIn?

Notable Quotes

• Toby: “Still, Neal, not going to lie, it’s going to feel a little weird messaging someone on Spotify at first, but you can totally see how it can make the app stickier and deepen its cultural heft if it finds a willing audience.” (17:43)
• Neal: “Now they’ve introduced this DM feature and previously they introduced a feature like comments on podcasts...could keep more people on the Spotify app, which is exactly the whole point of this.” (19:08)
• Toby: “Do users really want another inbox to check? … All these other accidental dating apps that have arisen.” (19:55)

Timestamps

• Segment start: 17:43
• Social potential and business impact: 19:08–21:05

6. Quick Hits: SpaceX, Government Investment, Cracker Barrel, Mediterranean Diet

• SpaceX Starship Success: After several fiery failures, Starship completes key test — crucial for NASA's moon missions.
  • Toby: “If at first you don’t succeed, try again nine more times...Mission 10 went a whole lot better than 7, 8, and 9, which all ended in midair fireballs.” (21:52)
• US Gov Buying Into Defense Contractors: “Lockheed is basically an arm of the U.S. Government”—Trump wants government to share in profits, not just issue contracts.
• Cracker Barrel Logo Uproar: Classic logo restored after backlash; Trump chimes in: “They got $1 billion worth of free publicity if they play their cards right.” (24:20)
• Mediterranean Diet’s Health Benefits: Major trials show big reductions in diabetes and Alzheimer’s risk.
  • Neal: “I’m thinking the easiest way is just to take a vacation to Greece.” (27:03)
  • Toby: “This thing is basically the Wonder diet, the GLP-1 drug of all diets.” (27:53)

Timestamps

• SpaceX: 21:52
• Government stakes in private companies: 22:47–24:20
• Cracker Barrel and app logo design: 24:20–27:03
• Mediterranean diet research: 27:03–28:16

Memorable Moments & Tone

• Swift-Kelce engagement likened to a moon landing — sets the tone for a pop-culture savvy discussion. (00:57)
• Hosts’ banter on presidential intervention at the Fed: “At stake is only the global economic system.” (04:29)
• Biting commentary on tech innovation (or lack thereof): “Using a phone now feels a lot like using a phone from five years ago.” (09:09)
• Wry skepticism about corporate PR stunts (Cracker Barrel): “Did they roll out this horrible new logo deliberately to just get tons of publicity?” (25:39)
• Tongue-in-cheek on health advice: “We get it, Becky, you like hummus...I’m kind of hungry for some olive oil right now.” (27:03–28:16)

Conclusion

This episode is a high-energy, insightful breakdown of the big business and tech stories driving headlines:

• The unprecedented legal fight over the Fed’s independence.
• A possible “return to form” for Apple hardware innovation.
• Real data on the disruptive impact of AI on the job market, especially for new grads.
• Spotify’s push into social—and maybe even romantic—territory.
• Lighter fare on space travel, political investment strategies, branding drama, and healthy living.

The hosts’ quick wit and sharp commentary make even complex issues engaging and accessible. If you care about where business and tech are heading—and want to laugh along the way—this is a can't-miss episode.