Morning BREW -> Raising the federal minimum wage to $15 hr by 2025 will put 1.3 million out of a job

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Morning BREW -> Raising the federal minimum wage to $15 hr by 2025 will put 1.3 million out of a job

July 9, 2019 Read in Browser

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The Ascent

Good morning. Here’s a sign of the times: Nearly a quarter of Americans never plan to retire, according to a poll from The Associated Press-NORC Center for Public Affairs Research. If that’s you let us know why.

MARKETS

S&P

2,976.01

-0.48%

NASDAQ

8,098.38

-0.78%

DJIA

26,806.89

-0.43%

10-YR

2.049%

+1.2 bps

GOLD

1,396.10

-0.29%

OIL

57.46

-0.09%

*As of market close

  • Workforce: The Congressional Budget Office estimated that raising the federal minimum wage to $15/hr by 2025 would increase pay for 17 million workers…but put 1.3 million out of a job.
  • Global markets: Both Turkish stocks and the lira dropped after President Recep Tayyip Erdoğan sacked Turkey’s central bank head last weekend. The instability continues.


MEDIA

Do Billionaires Get Homesick?

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Francis Scialabba

Media and tech moguls are unpacking their numerous belongings in Sun Valley, Idaho, today for the annual networking conference hosted by investment bank Allen & Co. At this “summer camp for billionaires,” the bug juice is top shelf, the gaga pit is lined with velvet, and the campfire talk focuses on the industry’s fierce streaming wars.

A taste of the guest list: Disney’s Bob Iger, Comcast’s Brian Roberts, Amazon’s Jeff Bezos, Tim Apple, and most likely Facebook’s Mark Zuckerberg and Sheryl Sandberg.

As Variety reminds us, a lot has changed in media since last year’s conference.

  • Disney finalized its acquisition of 21st Century Fox’s entertainment assets.
  • Comcast bought European pay TV company Sky.
  • AT&T swapped out execs at its new properties, HBO and Warner Bros.
  • Apple revealed its own streaming plans.
  • Les Moonves got axed from CBS following sexual misconduct allegations.

Anything cooking this year?

Sun Valley has always been known for those spontaneous encounters that eventually lead to deals (as milk-chugging camp legend Warren Buffett calls it, “ABWA,” or “acquisitions by walking around”). In fact, we found this list of camp couples laying around one of the bunks.

This year, though, the most likely merger—CBS and Viacom—is already in the works, and neither company’s CEO is attending Sun Valley. Back in NYC, Fox Business reports that talks have progressed to negotiating possible deal terms.

  • Both CBS and Viacom are controlled by the Redstone dynasty’s National Amusements. Shari Redstone, daughter of Sumner, wants to merge the two in order to compete with the likes of Disney and AT&T, which have made power plays recently.
  • Shari will be at Sun Valley, but Viacom CEO Bob Bakish has been “blackballed” from the conference by Allen & Co. after complaining about the bank’s work on a deal, according to Fox Business. Typical camp drama.

            


REGULATION

U.K. Data Watchdog Growls at British Airways

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EluveitieBoeing 747-436 – British Airways (G-BNLF)CC BY-SA 3.0

Yesterday, the U.K.’s Information Commissioner’s Office (ICO) asked British Airways if it fancies a cuppa data privacy penalties. It proposed a positively gobsmacking $229 million fine for exposing about 500,000 customers’ personal information in a data breach last year.

That’s around 1.5% of BA’s total 2017 revenue and about 367 times the ICO’s previous top fine, the $626,000 it demanded from Facebook over the Cambridge Analytica scandal.

So what changed? GDPR, Europe’s new data privacy rules, went into effectlast May.

BA hasn’t exactly confirmed it’ll appeal the penalty, but Willie Walsh, CEO of parent company IAG, said he intends “to take all appropriate steps to defend the airline’s position vigorously, including making any necessary appeals.”

Bottom line: The ICO’s harsh penalty (the biggest to date under GDPR) shows that, under the new regulations, data breaches won’t just be an embarrassment for companies with customers in Europe—they could make a serious financial dent.

            


INTERNATIONAL

Greece up Those Economic Wheels

Greece has a new prime minister in Kyriakos Mitsotakis, a U.S.-educated ex-financier whose center-right New Democracy party just took control of the government on the promise of broad economic reform.

And reform…sounds okay following a decade-long economic crisis that decked living standards. A small sampling of Greece’s troubles?

  • Unemployment rate: 18%, the eurozone’s highest
  • Debt-to-GDP ratio: almost 180%

Still, Greece’s economy expanded 1.9% last year. And since Mitsotakis won late-May European Parliament elections, the Athens Stock Exchange general index is up over 20%.

But his plate is full with more than spanakopita. Mitsotakis wants to doubleGreece’s growth rate to 4% in 2020 by convincing foreign investors they can trust Greece again. He also wants to cut taxes to jumpstart economic activity.

Looking ahead…Mitsotakis succeeds outgoing PM Alexis Tsipras, whose Syriza party raised taxes to meet creditors’ fiscal targets. The new PM will have to move fast to woo both foreign investors and a population scarred by a decade of austerity.

            


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E-COMMERCE

Amazon Workers Doth Protest

When you’re 37 Chrome tabs deep into Amazon’s Prime Day sales selection next week, consider the situation in Minnesota.

Workers at Amazon’s Shakopee, MN, fulfillment center are planning a six-hour strike during the two-day sales extravaganza. Their gripe? Amazon’s wages are too low and productivity quotas unreasonable (Amazon rebuts, saying it offers “excellent pay” and “comprehensive benefits”).

While this is the first time Amazon (+0.48%) workers in the U.S. will strikeduring a major sales event, it’s not the first time Shakopee area employees have gotten their activism on.

  • Amazon employs 1,000+ East African Muslim immigrants at four facilities in the Twin Cities area (including Shakopee).
  • Last year, they successfully petitioned for more perks when Prime Day coincided with Ramadan.

The double zoom-out: In a labor market this tight, Amazon workers are more emboldened to strike. Still, their protest is unlikely to derail Amazon’s Prime Day shipping capabilities, especially since the company has a network of 75+ fulfillment centers in North America alone to pick up the slack.

            


BIZ HISTORY

We’re Only 126 Years Younger

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WSJ

Q: What do you get your competitive older brother when he turns 130 and already has 37 Pulitzer Prizes?

A: A 170-word story about his accomplishments.

The fine journalists at the Wall Street Journal may approach business news a little differently than we do, but we’re still celebrating the paper of record’s 130th birthday yesterday and encourage you to don your own rigorously fact-checked party hats. They’ve kindly created a collection of their most historic articles, which you can peruse here. Some of our favorite stories:

June 20, 1913: New Currency Bill Creates A Federal Reserve Board

June 18, 1948: Now You Can Hear a Full Album of Music—On a Single Record

October 19, 1956: Offices of the Future May Have TV Phone, Atom Dictating Devices

September 15, 2008: Crisis on Wall Street as Lehman Totters, Merrill Is Sold, AIG Seeks to Raise Cash

Take it from us, nothing makes a journalist’s day like a whistleblower. Here’s the WSJ’s tips page. Or you can tell us.

            


WHAT ELSE IS BREWING
  • Deutsche Bank (-6.10%) began laying off 18,000 workers at global offices from Sydney to New York as part of its broad overhaul.
  • Federal prosecutors unsealed an indictment charging former hedge fund manager Jeffrey Epstein with sex trafficking and conspiracy. He could get up to 45 years in prison. Epstein pleaded not guilty.
  • SunTrust (-0.67%) said it will not offer future financing to operators of private prisons and immigration holding facilities.
  • Instagram is testing a new anti-bullying feature that will allow users to effectively shadow ban another user from their account.


BREAKROOM

Brew’s Bets

  • No false alarms here—SimpliSafe’s visual verification technology gets you help 3.5x faster than traditional security companies. Get VIP protection for just $15 a month here.*
  • Everyone and their mother has a podcast, so we’ll save you time finding your new favorite. KindredCast brings you mind-blowing insights from the biggest powerhouses in media and tech. View all their episodes here.*
  • Need some urgency to get outdoors? Check out sunshine.fyi, a website that tells you how much sunlight is left in your day. Admittedly, it gets depressing during the winter months…so enjoy it now.

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From the Crew

Yesterday, we asked if you would invest in PodShare, a co-living company offering bunk beds in California for up to $1,200/month. 75% of you evidently do not want to bring dorm life to the adult world, while the rest of you felt the sacrifice was worth it if it means being closer to the Clooneys.

Why you would invest:

  • “With the rise of the gig economy and freelancing it makes sense to move to these locations for 6-12 months without any rental agreement or commitment.”
  • “Feels like college.”

Why not:

  • “Privacy is something that people really care about, PodShare does not provide that.”
  • “Sharing living quarters isn’t like sharing a Netflix account.”
  • “Feels like college.”

Domains Around the World

During our international travels last week, we were reminded that each country has its own top-level domain on the internet. For example, the top-level domain for Hungary is .hu. So here’s the quiz: We’ll give you the domain, you have to figure out the location.

  1. .tw
  2. .bb
  3. .de
  4. .kp
  5. .ch

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BREAKROOM ANSWERS

Domains Around the World
1. .tw = Taiwan
2. .bb = Barbados
3. .de = Germany
4. .kp = North Korea (stands for Democratic People’s Republic of Korea)
5. .ch = Switzerland

85 Broad Street, New York, NY 10004.

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