__SPAC at it again...__ with the federal inquiries. The SEC and FINRA are [investigating](https://www.cnbc.com/2021/12/06/trump-spac-investigated-by-federal-regulators-including-sec.html) a planned merger between former President Trump’s media company and __Digital World Acquisition Corp.__ (DWAC), the special-purpose acquisition company that plans to take it public. Refresher: Trump wants to rival Big Tech and build a “non-cancellable global community” with __Trump Media & Technology Group__ (TMTG). Trump’s still barred from __[Twitter](https://robinhood.com/crypto/TWTR)__, __[Facebook](https://robinhood.com/crypto/FB)__, and __YouTube__. 

- __On Monday,__ DWAC disclosed that in October regulators had requested info on trading and comms that happened *before* the TMTG deal was announced. 
- __Potential issue:__ Trump reportedly [met](https://www.wsj.com/articles/trump-social-media-spac-deal-being-investigated-by-sec-11638807224) with DWAC’s CEO *before* the SPAC had raised money. SPACs aren’t supposed to have a target identified when they initially fundraise, so the meeting could violate SEC rules if found to have represented substantive deal talks. 
- DWAC said that regulators' requests indicated that there’s been no determination of wrongdoing. 

__What the DWAC...__ DWAC shares dipped 11% on the news, but rebounded 17% yesterday. When the merger was announced, DWAC shares *quadrupled* and it became the most traded stock on major exchanges that day. We still don’t know the identities of TMTG’s execs — besides GOP Rep. Devin Nunes, who’s set to [become](https://www.cnbc.com/2021/12/06/gop-rep-devin-nunes-resigns-from-congress-to-become-ceo-of-trumps-media-company.html) CEO — *or* the identities of investors who’ve committed $1B. What we do know:

- __Social network + streamer (in theory):__ TMTG says it plans to launch "Truth Social" next year to compete with social giants, plus a “non-woke” Netflix rival.
- __Big ambitions:__ TMTG forecasts $3.7B in revenue by 2026, though some of its growth projections seem [contradictory](https://www.bloomberg.com/opinion/articles/2021-12-07/the-trump-spac-pitch-is-weird?sref=q3KSFp38).

DWAC

__SPAC scrutiny is rising…__ Companies that go public via SPAC sometimes face less oversight than those that IPO, but they’re still held to regulatory standards. SPACs have raised as much money as traditional IPOs this year. Now regulatory heat is growing to keep tabs. EV startup __[Lucid](https://robinhood.com/stocks/LCID)__ recently got an SEC subpoena about projections made as part of its mega-SPAC merger. And Nikola said it would pay $125M to settle an SEC probe related to statements made by its founder.

Trump’s SPAC merger is being investigated, and scrutiny over IPO alternatives intensifies

__Sparks are flying…__ There’s a new EV power player on the scene. __[Con Edison](https://robinhood.com/stocks/ED)__, __[Duke Energy](https://robinhood.com/stocks/DUK)__, the __Tennessee Valley Authority__, and nearly 50 other US electric companies partnered to [launch](https://www.eei.org/resourcesandmedia/newsroom/Pages/Press%20Releases/Electric%20Companies%20Join%20Together%20to%20Form%20National%20Electric%20Highway%20Coalition.aspx) the National Electric Highway Coalition (NEHC) yesterday. Together, they plan to build a coast-to-coast network of fast-charging EV stations along major US highways by 2023. 

- NEHC members have already pitched in $3B, but the group hasn’t set precise funding or station goals yet. 

__EV envy…__ Lately, carmakers have been the key drivers behind EV investments: __[VW](https://robinhood.com/stocks/VWAGY)__, __[Daimler](https://robinhood.com/stocks/DMLRY)__, __[Stellantis](https://robinhood.com/stocks/STLA)__, __[Ford](https://robinhood.com/stocks/F)__, and __[GM](https://robinhood.com/stocks/GM)__ have committed $330B to developing EV tech in the next four years. But President Biden’s recent infrastructure bill (now a law) [sets aside](https://www.cnbc.com/2021/11/19/ev-tax-credits-in-bidens-build-back-better-act-will-help-sell-more-cars-than-new-chargers.html) $7.5B for *EV-charging stations*, offering more types of companies an incentive to support EV infrastructure too. That’s:

- __Good news__ for utilities companies, which could tap into Biden’s coffers, and good for EV-charging companies like __[ChargePoint](https://robinhood.com/stocks/CHPT)__ and __[EVgo](https://robinhood.com/stocks/EVGO)__, which run their own networks and might access more $$.
- __Bad news__ for __[Tesla](https://robinhood.com/stocks/TSLA)__, which has spent billions building 30K+ global charging stations and could lose the competitive moat of its own network. Also: Tesla isn’t eligible for some of the gov’t funds. Elon Musk [told WSJ](https://www.wsj.com/articles/elon-musk-comes-out-against-federal-electric-vehicle-spending-11638892791?mod=hp_trending_now_article_pos2) that the charging subsidies in Biden’s bill should be deleted. 
- __Just the beginning:__ Analysts say $7.5B is only 15% of the $50B necessary to hit Biden’s goal of building 500K EV chargers by 2030.

When you overcome range anxiety [Klaus Vedfelt/DigitalVision via Getty Images]

Charged

__A cure for range anxiety could be near…__ About 60% of drivers [say](https://www.virta.global/blog/myth-buster-electric-vehicles-range-real) range anxiety is a barrier to EV-buying. Now there’s clear incentive not only to create more powerful batteries but to build more chargers — which could make EVs a lot more practical. As companies race to grow America’s charging network 10X to hit Biden’s 2030 goals, EV-charging investments could accelerate.

Utilities companies partner to electrify US highways, pushing a cure for range anxiety

🕵️ Trump’s SPAC drama, EVs’ new plug, and more of today’s top Snacks stories

Dow Jones

S&P 500

Nasdaq

Bitcoin

The top 0.01% richest individuals — 520K people with a net worth of at least $19M each — now hold more than 1/10th of the world's total wealth

🕵️ Trump’s SPAC drama

__NYC to Hong Kong ETA…__ 15 hours and 35 minutes. Financial ties between the US and China are coming undone as political tensions escalate. The latest case study: __[DiDi](https://robinhood.com/stocks/DIDI)__, aka the __[Uber](https://robinhood.com/stocks/UBER)__ of China, which went public in the US in June in the largest US IPO of a Chinese company since __[Alibaba](https://robinhood.com/stocks/BABA)__. But DiDi's debut caused some #drama: China wanted DiDi to *pause* its IPO until it could show Chinese data was safe. So Chinese regulators banned DiDi from app stores and started investigating the company. Now...

- __DiDi, delisted:__ Last week, DiDi said it would immediately start delisting its shares from the NYSE, saying it plans to relist in Hong Kong. Bloomberg earlier [reported](https://www.bloomberg.com/news/articles/2021-11-26/china-is-said-to-ask-didi-to-delist-from-u-s-on-security-fears?sref=q3KSFp38) that Chinese regulators were behind the reversal.
- DiDi shares have plunged 20% since the announcement. Shares of other Chinese tech giants also dropped, with Alibaba (“the [Amazon](https://robinhood.com/stocks/AMZN) of China") and __Nio__ ("the __[Tesla](https://robinhood.com/stocks/TSLA)__ of China") leading the losses.

__Taking stock...__ China has been [cracking down](https://snacks.robinhood.com/newsletters/lmendgmwiqrFZ5v9KHvVo/articles/7elgOaDupMl8Er1xxvUq14/) on its tech titans this year, levying major fines and imposing strict anti-monopoly laws. DiDi’s delisting marks a dramatic escalation. DiDi's now worth $31B — less than half its value at IPO. And it's not the only one...
- In May, there were 248 Chinese companies with a combined $2.1T market cap on US exchanges. $1T+ of that value has been *erased*.
- Not just DiDi: Since 2019, more than a dozen US-listed Chinese companies have sought alternative listings in Hong Kong.


__The Great Delisting could be coming…__ and not just because of China. Last week, the SEC [finalized](https://www.cnbc.com/2021/12/02/sec-issues-final-regs-that-allow-it-to-delist-foreign-companies-that-dont-comply-with-audit-rules.html) rules to *forcibly* delist foreign companies that don't follow auditing requirements. The goal: Avoid situations like __Luckin's__ [fake earnings](https://snacks.robinhood.com/newsletters/1cblBuDtgtokNEYEzCvie4/articles/1krUG6u9IaHRyq4K1dx9Fo/). Meanwhile, Beijing is tightening data-privacy regulations that’ll make it harder for Chinese companies to list on foreign markets. Escalating US-China tensions could mean a wave of Chinese tech companies leaving US markets — which could hurt both American and Chinese investors.

After DiDi, more Chinese tech giants could ditch the US stock market — or be forced out 

__10-minute Doritos…__ The race to deliver snacks in under 15 minutes is getting spicy. Yesterday __[DoorDash](https://robinhood.com/stocks/DASH)__ [launched](https://www.axios.com/doordash-ultra-fast-grocery-delivery-nyc-613aa099-39d7-44eb-947e-759c80592755.html) an ultrafast-delivery service in NYC that delivers snack staples like chips and candy to customers in 10 to 15 minutes for a $1 to $2 fee. How it works: 

- __Deliveries are limited__ to an area near Dash’s tiny urban warehouse (aka: “DashMart”) in NYC’s Chelsea neighborhood. Dash [plans](https://www.wired.com/story/doordash-joins-instant-delivery-game-employees/) to expand supercharged delivery to other DashMarts in NYC and beyond.
- __Full-time employees__ who make $15/hour with benefits will complete the extra-quick deliveries, a big [shift](https://www.theverge.com/2021/12/6/22820197/doordash-launches-fast-delivery-option-new-york-city-dash-corps) from Dash’s norm of using gig workers. Quick-delivery rivals __Gorillas__ and __Jokr__ also employ full-time workers.

__Ultrafast growth…__ Online grocery sales more than doubled last year, inspiring a wave of startups focused on fast urban delivery. This year 15 quick-delivery companies have raised nearly $8B. Jokr, Gorillas, and __Flink__ — all under two years old — each hit $1B valuations. __GoPuff__, which launched in 2013, is now worth $15B.

- __But fast Fritos don’t work everywhere:__ Delivery companies say the 15-minute model works only in dense cities with high order volumes.

Accelerating your emergency Dorito delivery [Capuski/E+ via Getty Images]

Hangry

__NYC is an ultrafast-delivery lab…__ But consumers’ broader appetite is still uncertain. As the densest city in America, the Big Apple is perfect for delivery experimentation. But superfast delivery is risky even there: Last week, __1520__ closed after it spent all its cash trying to win customers. Because DoorDash’s and Uber Eats’ *regular* delivery businesses still aren’t profitable — and speedy delivery has even *higher* costs — some doubt 15-minute snacks will ever be profitable.

DoorDash launches ultrafast delivery in NYC, but speedy snacks may not be profitable

China’s Great Delisting, DoorDash’s ultrafast pivot, and more of today’s top Snacks stories

🇨🇳 China’s Great Delisting

__Doesn’t roll off the tongue...__ “Omicron” is living rent-free in investors' minds. Markets have been on edge since the new Covid variant was identified in South Africa late last month. Omicron has since been [detected](https://www.nytimes.com/article/omicron-coronavirus-variant.html) in 20+ countries, including the US, which reported cases in at least 16 states. Some infected people were fully vaxxed. Experts said it would take weeks to assess Omicron’s severity, but here's what we do know:

- __Most Omicron cases have been mild__ so far. The WHO’s chief scientist [said](https://www.bloomberg.com/news/articles/2021-12-01/vaccines-likely-to-protect-against-severe-cases-of-omicron-who?sref=q3KSFp38) existing vaccines were likely to offer some protection.
- __Omicron is spreading more than twice as quickly__ as Delta in South Africa, and accounts for the bulk of new cases there.
- __FYI:__ Several Covid variants have been identified, but Delta and Omicron are the only “[variants of concern](https://www.hopkinsmedicine.org/health/conditions-and-diseases/coronavirus/a-new-strain-of-coronavirus-what-you-should-know)” so far.

__Crank out the test tubes...__ Biden [said](https://www.wsj.com/video/biden-us-is-working-with-vaccine-makers-on-omicron-contingency-plans/F2CA6319-2A64-4929-A864-AB8583790F63.html) he doesn’t expect to impose more lockdowns or vax mandates this winter, but he's [working](https://www.wsj.com/video/biden-us-is-working-with-vaccine-makers-on-omicron-contingency-plans/F2CA6319-2A64-4929-A864-AB8583790F63.html) with vax makers on plans for Omicron-specific doses in case they're needed. __[BioNTech's](https://robinhood.com/stocks/BNTX)__ founder said Omicron is unlikely to cause severe illness in vaxxed people, but __[Moderna’s](https://robinhood.com/stocks/MRNA)__ CEO said it could make shots much less effective. How vax makers are prepping:

- __[Pfizer](https://robinhood.com/stocks/PFE) and BioNTech, Moderna,__ and __[J&J](https://robinhood.com/stocks/JNJ)__ have already started working on Omicron-specific shots, in addition to testing the protection of existing ones. Pfizer and Moderna say an Omicron-focused vaccine could be ready in under [100 days](https://www.statnews.com/2021/11/30/pfizer-research-head-envisions-a-sprint-to-develop-omicron-vaccine-if-its-needed/). 
- __Financial boosters:__ Vaccines can translate into big profits. Moderna made $7.3B in profit on $11.3B in vax sales in the first nine months of this year. Pfizer, which is also selling vaccines at a profit, expects $36B in 2021 Covid vax sales.

Cron

__Better safe than sorry…__ Dr. Fauci [said](https://www.cnbc.com/2021/12/03/fauci-says-booster-shots-likely-give-cross-protection-against-wide-range-of-covid-variants.html) existing boosters would likely protect against a wide variety of variants. But there are still a number of unknowns. If Omicron is severe, it could slow economic recovery, depress markets, and exacerbate supply problems — as Delta did. Dozens of countries, including the US, have already imposed Omicron-fueled travel restrictions, while vax makers prep new shots. It’s better to be overly prepared when public health is at stake: US Covid deaths this year recently surpassed 2020's toll.


Plan Omicron: How Biden and vax makers are prepping to tackle the new variant

__Anchoring your digital yacht…__ next to your virtual mansion. From virtual Gucci bags to digital plots of land, people have been pouring money into metaverse possessions. A meta-yacht sold for a record $650K last week, while a virtual developer [bought](https://www.wsj.com/articles/metaverse-real-estate-piles-up-record-sales-in-sandbox-and-other-virtual-realms-11638268380?mod=hp_lead_pos12) a property from gaming company __Atari__ for $4.3M. The market for real estate in digital worlds like __Decentraland__ and __Sandbox__ is growing: Some developers have even built and rented out digital malls. But experts warn the digital real-estate market is far riskier than *actual* real estate given crypto’s volatility.

__No coal in the stocking…__ As if gas prices weren’t enough, coal prices have hit a 10-year high. That could make it hard for some to warm their homes this winter. While natural gas has replaced coal as the US’s main source of energy, demand for coal has held steady this year. As the world moves away from fossil fuels, nuclear energy — which provides 20% of the US’s juice — is gaining traction. A Bill Gates-backed startup, __Commonwealth Fusion__, just raised $1.8B. And the EU [might](https://www.bloomberg.com/news/articles/2021-11-30/eu-considers-giving-some-gas-and-nuclear-projects-green-label?sref=q3KSFp38) allow certain nuclear investments to be labeled as “green.” 

It’s always sunny in the metaverse [Plug Pattarin via Getty Images]

Zoom Out

Stories we’re watching...

__Sports-bra stand-off…__ Lockdowns may be over, but the leggings life isn’t. __[Lululemon’s](https://robinhood.com/stocks/LULU)__ sales soared 63% last quarter as shoppers visited Lulu’s digital *and* physical stores for stretchy tanks. Lulu’s on track to exceed its 2023 sales goals *this year*. But it's not all peace and vinyasa: Last week, Lulu sued __[Peloton](https://robinhood.com/stocks/PTON)__ over its “copycat” yogawear. And it has a fledgling revenue stream to grow: Lulu bought connected-fitness company __Mirror__ for $500M. We’ll see whether the athleisure life is still revving when it reports on Thursday. 

__Just binged “Selling Sunset”…__ The housing market is still #thriving, with the median US home price hitting a record [$360K](https://nationalmortgageprofessional.com/news/sale-home-inventory-hits-new-all-time-low) last month. The boom has been good for the US’s largest homebuilders, including __[Lennar](https://robinhood.com/stocks/LEN)__, __Pulte Group__, and __[Toll Brothers](https://robinhood.com/stocks/TOL)__. US home sales are on track for their [best year](https://www.wsj.com/articles/u-s-home-sales-on-track-for-biggest-year-in-15-years-11637593790?mod=markets_minor_pos16) in more than a decade, and homes for sale [just hit](https://nationalmortgageprofessional.com/news/sale-home-inventory-hits-new-all-time-low) a new low. That translated into record income for Toll last quarter. But home building has cooled since peak pandemic, while rising costs for materials like lumber have pushed homebuilders to raise prices. We’ll see if that bruised Toll when it reports earnings tomorrow.

Events

Coming up this week…

- __[Ping](https://snacks.robinhood.com/newsletters/4YSTdNOZ2mu83UVlDgiCYM/articles/1onPZNNY7k2JvfFj7hvzEH/):__ __SpaceX__ CEO Elon Musk warned employees that the rocket startup could face bankruptcy if it doesn’t ramp up production of its Raptor engines — but his SOS seems mostly to be a move to drive results.
- __[Namaste](https://snacks.robinhood.com/newsletters/7ulB0FYNp6qUhXwrwbS5HI/articles/4vdCsYuHPUjDuLjZUujp5W/):__ Jack Dorsey stepped down last week as __[Twitter](https://robinhood.com/stocks/TWTR)__ CEO to focus on being the full-time CEO of Block (fka: __[Square](https://robinhood.com/stocks/SQ)__), letting Twitter join the ranks of tech titans like __[Amazon](https://robinhood.com/stocks/AMZN)__ and __[Google](https://robinhood.com/stocks/GOOGL)__ that have also ditched their founders to evolve.
- __[Woolly](https://snacks.robinhood.com/newsletters/y2vYdUTHNaS4xw4nNE5Wd/articles/Hge0g8ZSvXBIsH2a7akah/):__ __[Allbirds](https://robinhood.com/stocks/BIRD)__ saw huge demand for its eucalyptus-pulp-infused sustainable sneakers in its first-ever earnings report — but it needs to grow its customer base if it wants to turn a profit.

ICYMI

Last week's highlights...

The Omicron plan, metaverse mansions, and more of today’s top Snacks stories

💉 Enter: Plan Omicron

__Grab a taxi...__ or a taco. Singapore-based __[Grab](https://robinhood.com/stocks/GRAB)__ started as a ride-hailing platform, but it’s now one of Asia's largest super apps. Think: __[Uber](https://robinhood.com/stocks/UBER)__, __[DoorDash](https://robinhood.com/stocks/DASH)__, __Venmo__, __[Expedia](https://robinhood.com/stocks/EXPE)__, __[Netflix](https://robinhood.com/stocks/NFLX)__, and __[Amazon](https://robinhood.com/stocks/AMZN)__... *all in one app*. The decade-old company has 187M users in eight countries — nearly *double* Uber's users. Yesterday, the super app became a super SPAC.

- __Grab went public on the Nasdaq__ through a SPAC merger that valued it at nearly $40B — the largest SPAC deal on record. But shares closed down 21% on day one. 
- __The #s:__ Grab's loss grew to nearly $1B last quarter and sales fell 9% as Covid surges in Southeast Asia hit its ride-hail biz.

__Can't color-coordinate your home screen...__ when you have just one app. Grab users can manage their entire lives in-app: from ordering groceries to booking resort vacays, to applying for loans and health insurance, and even streaming rom-coms.

- __"Everything apps"__ like Grab are super popular in Asia, with Chinese powerhouses like __WeChat__, __Alipay__, and __[Alibaba](https://robinhood.com/stocks/BABA)__ touting billions of users. That’s partly because slower broadband connections discourage people from clogging their phone with multiple apps.
- __American companies__ have been dipping into super-app territory. Think: Uber doing food delivery and __[Facebook](https://robinhood.com/stocks/FB)__ integrating payments and shopping. But they’re way less super.

Taco

__Super apps aren’t just staying abroad....__ American companies have been dipping into super-app territory. Think: Uber doing “delivery everything” and Facebook integrating payments, gaming, and shopping. All-in-one platforms are super convenient for users, but that comes at a cost: bigger privacy and regulatory concerns. As antitrust scrutiny heats up, becoming more super could get harder for US tech titans. 

Grab goes public in the largest SPAC merger ever as super apps take over Asia

__Three strikes…__ and you’re (locked) out. Major League Baseball owners locked out players yesterday after [failing](https://www.wsj.com/articles/lockout-owners-mlb-players-union-11638400103) to reach a deal with the players’ union — its first shutdown in 27 years. When workers strike, they refuse to work; when employers lock out, they refuse to *let* employees work. Now all 30 teams are shut down, and no trades are allowed until a deal is reached. 

- __Players__ want a higher salary minimum (it’s currently $571K) and more trade flexibility. Average MLB salaries fell last year, while MLB franchise values jumped.
- __Owners__ say players’ demands are too high. MLB teams spent $2B on free agents this year, including a record deal for one pitcher that pays $43M *per season*.
- __It’s the offseason,__ so games haven’t been cancelled — yet. But the dispute’s expected to last weeks and could cut into the season.

__Not the first labor curveball...__ MLB has had nine labor stoppages, including four lockouts. They haven’t usually interfered with regular-season games, but the 1994 strike resulted in the cancelation of 900 games — including the World Series. And MLB attendance didn’t rebound for *more than a decade*.

- __Higher stakes:__ Today, the average MLB team is worth $1.9B — 10X more than during the 1994 strike — so an in-season lockdown would be way costlier. 


Batter out [peepo/E+ via Getty Images]

Swing

__Labor is gaining power…__ and not just in sports. Pro athletes have leverage to negotiate with owners thanks to powerful players’ unions. And because of labor shortages and mass quittings, workers *across* the economy have gained bargaining power this year, too. That’s led to rising wages and better benefits — and the highest level of support for unions since 1965. Work stoppages are becoming common in other industries, from __[Kellogg’s](https://robinhood.com/stocks/K)__ and __[John Deere](https://robinhood.com/stocks/DE)__ factories to __BuzzFeed’s__ newsroom (just yesterday).

The MLB is shutting down over a labor dispute — and it’s not just a pro-sports trend

The MLB shutdown, Grab’s super SPAC, and more of today’s top Snacks stories

⚾ MLB shuts down

__You’ve got Email...__ Elon mail. It's the day after Thanksgiving. __SpaceX__ employees are still digesting pecan pie, when Elon Musk [sends](https://spaceexplored.com/2021/11/29/spacex-raptor-crisis/) a company-wide email that would give anyone indigestion: The lack of progress in developing Raptor rocket engines has created a “genuine risk of bankruptcy” for SpaceX. Employees spit out their pie as Elon intensifies:

- __Not to make you feel bad,__ but Elon was going to take his first weekend off in *forever*, yet instead he’ll be “on the Raptor line all night and through the weekend."
- __Cancel Black Friday.__ Elon’s not sugarcoating it: “We need all hands on deck to recover from… a disaster."

__Starships were meant to flyyy...__ Nicki Minaj's 2012 banger is also the name of SpaceX's next-generation rocket being developed in Texas. Starship will first be used to take humans to the moon for NASA's Artemis program. Then the fully reusable rocket will launch cargo and people on missions to Mars. But before Starship can fly, SpaceX needs to fix issues plaguing production of its Raptor engines.

- Starship rockets are also necessary to launch the next generation of SpaceX’s Starlink satellites. The first gen are major money losers. 
- With its Falcon rocket, SpaceX has launched 1.7K *first*-gen satellites, with 140K customers paying $99/month for high-speed internet. But only Starship can launch the next version.

When Elon cancels Thanksgiving [Cavan Images via Getty Images]

Ping

__Sometimes pressure is the greatest motivator...__ SpaceX has raised billions, leading it to cross a massive $100B valuation. Investors are eager to continue funding it, plus its CEO is Earth’s richest person. And Elon has conceded that even if a global recession were to hit, a SpaceX bankruptcy is unlikely. But he has *also* [underscored](https://twitter.com/elonmusk/status/1465793233729069063?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1465795739104206853%7Ctwgr%5E%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fd-41966254304092310471.ampproject.net%2F2111152338002%2Fframe.html): *"Only the paranoid survive."* Elon knows that fear sometimes drives results more than complacency. So he's raising alarms to motivate employees to reach SpaceX's ambitious goal of flying Starships at least once every two weeks next year.

Elon says SpaceX faces a “bankruptcy” crisis, but it’s more about pressure than $$$

__Scrambling for Baby Yoda toys…__ The force isn’t with you this holiday season. For the first time ever recorded, online shoppers spent *less* on Black Friday and Cyber Monday than the year before. But it isn’t because Americans aren’t splurging: Holiday shopping is expected to hit a record $843B this season. And while online sales *dropped* during Cyber Week (Thanksgiving through Cyber Monday), online sales from all of November *rose* from last year.

__Extra pricey *and* extra delayed…__ As the global economy recovers from the pandemic, inflation has [hit](https://www.wsj.com/articles/us-inflation-consumer-price-index-october-2021-11636491959) a 31-year high and global-supply [clogs](https://www.nytimes.com/2021/10/31/business/economy/global-shipping-delays-shortages.html) have led to major shipping delays. Two shopping trends have emerged:

- __Early sales:__ __[Target](https://robinhood.com/stocks/TGT)__, __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Macy’s](https://robinhood.com/stocks/M)__, and __[Best Buy](https://robinhood.com/stocks/BBY)__ launched Black Friday-style deals in *October* to get ahead of shortages, so buyers started shopping earlier and spreading their purchases out over time. 
- __BNPL boom:__ To help pay for pricier products (#flated), shoppers [paid](https://www.retaildive.com/news/winners-and-losers-of-black-friday-2021/610601/) with “buy now, pay later” 5X more in November than pre-pandemic. __[PayPal](https://robinhood.com/stocks/PYPL)__ saw a 5X increase in installment payments on Black Friday vs. last year, and rival __Klarna__ saw a 4X increase.

Spread

__The holiday “spread” is replacing the holiday crunch…__ And we’re not talking Nutella and gingerbread cookies. Two global economic issues — inflation and supply disruptions — are transforming shopping habits. Holiday shopping is lasting longer and being paid for in installments more often. Still, spread out doesn’t mean small: Spending is expected to keep rising next year despite supply constraints and rising prices.

Black Friday sales looked darker this year, as two trends reshape shopping habits

SpaceX’s “bankruptcy” alarm, the holiday-shopping “spread,” and more of today’s top Snacks stories

🚀 SpaceX’s “bankruptcy” alarm

__Time to fire up the popcorn.gif…__ __[Facebook’s](https://robinhood.com/stocks/FB)__ purchase of __Giphy__ is turning into a [thriller](https://tenor.com/view/thriller-michael-jackson-eating-popcorn-watching-gif-5577709). Yesterday the UK’s antitrust regulator [ordered](https://techcrunch.com/2021/11/30/faecbook-giphy-cma-order/) Meta (formerly Facebook) to sell Giphy, the GIF-sharing platform that FB [acquired](https://snacks.robinhood.com/newsletters/1kPSsi3ynqeUj7WZlEwOGg/articles/g6csPyNDoJerrDLhfKQk6/) last year for $315M. Refresher: Giphy doesn't own the rights to the vids used in GIFs, so it made money by showing sponsored results to searches (you search "glow up" and get a glossy mouth with Maybelline branding).

- __2 whammies:__ Regulators say the merger reduced ad competition by killing Giphy’s ad service in the US *and* hurt social competition by giving Meta control over __[Snap](https://robinhood.com/stocks/SNAP)__, __[Twitter](https://robinhood.com/stocks/TWTR)__, and __TikTok’s__ access to GIFs.
- __4 options:__ Meta can appeal, sell Giphy, leave the UK, or get fined. The UK *already* fined Meta $70M for failing to cooperate with the investigation. The social giant said it’s considering an appeal.

__Zuck never Meta tougher regulator…__ The company formerly known as Facebook has received plenty of antitrust criticism before, but this lawsuit is unprecedented because it involves a UK regulator trying to break up a *completed* tech merger between *American* companies. Still, global regulators have targeted US tech giants before. __A few examples:__

- London regulators ordered __[Uber](https://robinhood.com/stocks/UBER)__ to shut down in 2019, but Uber won the legal battle.
- Australia passed a law to make Facebook and __[Google](https://robinhood.com/stocks/GOOGL)__ pay for news content, and both eventually struck deals with Aussie media companies after getting the legislation amended. Oz is expected to announce a new inquiry into Big Tech companies today. 


Popcorn

__Precedent is powerful…__ Since Meta faces ongoing antitrust lawsuits worldwide, regulators will be watching its every move. If Meta *doesn’t* appeal, other regulators may be emboldened to crack down too. President Biden has appointed several regulators in the past year — like FTC Chair Lina Khan — who can’t wait to challenge monopolistic practices at Meta, Google, __[Apple](https://robinhood.com/stocks/AAPL)__, and __[Amazon](https://robinhood.com/stocks/AMZN)__. Meta doesn’t want to set a precedent that could break up its biz, so it may take extra care to guard its GIFs. 

UK regulators ordered Facebook to sell Giphy — and it could set a powerful precedent 

__Wool shoes and hydro flasks…__ Throw in a Patagonia, and you’ve got yourself a tech uniform. __[Allbirds’](https://robinhood.com/stocks/BIRD)__ eco-friendly shoes have become a Silicon Valley staple. Think: $98 kicks made from wool, sugarcane, and South African eucalyptus pulp. Shares of the direct-to-consumer company have fallen 33% since going public last month. Allbirds’ first public earnings report didn’t wow investors, and the stock dropped 6% after hours. 

- __Step up:__ Allbirds' quarterly sales [rose](https://ir.allbirds.com/news-releases/news-release-details/allbirds-reports-third-quarter-2021-financial-results) 33%, to $63M, thanks to strong demand for its new athleisure clothing line and fresh sneaker styles (like limited-edition Runner Fluffs).
- __Step down:__ Allbirds’ loss nearly doubled from last year, to $14M, as it splurged to expand its brick-and-mortar stores to 31 locations. 

__Plastic-bottle shoestrings…__ and carbon-negative soles. Allbirds has put sustainability at the center of its business, attracting eco-conscious Zillennials. While the average pair of sneakers creates 12 kilograms of CO2 emissions, Allbirds claims its shoes produce only 7. Its ESG pledges include creating 100% renewable energy for its production facilities by 2025. 

- __Younger consumers are__ almost 2X as likely to consider ESG issues when making purchasing decisions, compared to consumers over the age of 38.
- That’s why companies like __[Beyond Meat](https://robinhood.com/stocks/BYND)__, __Patagonia__, __Tom’s__, and Allbirds have put eco-friendly messaging and materials at their core. 


Eucalyptus-pulp shoes in the wild [Gary John Norman/ The Image Bank via Getty Images]

Woolly

__Brand love doesn’t equal brand permanence…__ Last year, more than half of Allbirds' sales were from repeat customers. But since its expenses are growing along with losses, it may need to grow beyond that core audience to survive long term. Values-driven companies like __Impossible Foods__ and Beyond Meat have seen sales slump recently, and even OG sustainable shoe brand Toms has had to revamp its image to broaden its appeal.

Eco-friendly shoemaker Allbirds posts strong sales for its first-ever earnings — but needs a bigger fan base to potentially turn a profit

👟 Allbirds’ woolly earnings, Meta’s Giphy drama, and more of today’s top Snacks stories

👟 Allbirds’ woolly earnings

__"A variant of concern"...__ Omicron. Global markets plunged on Friday after the world was alerted to the new Covid variant. The heavily mutated variant, first detected in South Africa, has [spread](https://www.cnn.com/2021/11/29/world/covid-omicron-variant-countries-list-cmd-intl/index.html) to at least 15 countries. So far, fewer than 200 cases have been reported globally, with none in the US — but Dr. Fauci said US cases are [inevitable](https://www.npr.org/sections/coronavirus-live-updates/2021/11/28/1059623783/fauci-says-the-omicron-variant-will-inevitably-appear-in-the-u-s). What we know:

- __The bad:__ The World Health Organization [said](https://www.cnbc.com/2021/11/29/omicron-variant-spreads-across-world-heres-what-we-know.html) Omicron poses a “very high” global risk, since existing vaccines may not work against some of its mutations. Also: Early data suggests it may be more transmissible than other strains.
- __The not so bad:__ Symptoms seen so far have been “extremely mild,” according to Angelique Coetzee, the South African doctor who first flagged the strain.

__Stow the passport...__ At least 46 countries, including the US and the UK, have already imposed travel restrictions from some African nations. Japan and Israel have closed their borders to all foreigners. Still, US stocks rebounded yesterday after President Biden [said](https://www.cnbc.com/2021/11/28/stock-market-futures-open-to-close-news.html) there was no need for panic, and there would be no lockdowns (for now). __[Pfizer](https://robinhood.com/stocks/PFE)__ and __[J&J](https://robinhood.com/stocks/JNJ)__ said they’re prepping for the possibility of updating their vaccines. __[Moderna](https://robinhood.com/stocks/MRNA)__ shares jumped 12% after the vax maker [said](https://www.wsj.com/articles/global-stock-markets-dow-update-11-29-2021-11638169716?mod=markets_lead_pos1) it’s working on an Omicron-specific booster.

- __Bear case:__ Depending on Omicron’s severity, it could sidetrack economic recovery, depress markets, and exacerbate supply issues — similar to Delta’s impact on the global economy. 
- __Bull case:__ Omicron’s effects could be curbed since vax makers say they can update their shots to fight it. Activist investor Bill Ackman [said](https://www.cnbc.com/2021/11/29/bill-ackman-says-the-omicron-covid-variant-could-end-up-being-bullish-for-markets.html) Omicron could *boost* stocks if symptoms prove to be less severe than those of other variants. Ackman = same guy who warned investors that "hell is coming" in March 2020. 

__Investors prefer the devil they know...__ And there's still *plenty* we don't know about Omicron. The WHO said it would take weeks to understand Omicron's health implications. Fed Chair Jerome Powell [believes](https://www.cnbc.com/2021/11/29/fed-chair-powell-says-omicron-variant-poses-risk-to-economy-complicates-inflation.html) Omicron is a threat to the economy and could boost inflation uncertainty. Still: Markets dipped when the Delta variant appeared, then rebounded to record highs as its effects unfolded. 

Enter “Omicron”: How the new variant could affect markets, and what we know so far

__New pinned tweet…__ 15 years, 8 months, and 8 days after posting history’s first tweet, __[Twitter](https://robinhood.com/stocks/TWTR)__ founder and CEO Jack Dorsey has stepped down. CNBC broke the news yesterday, and Dorsey confirmed via tweet. Twitter shares spiked after Twitter CTO Parag Agrawal was [promoted](https://www.cnbc.com/2021/11/29/twitter-ceo-jack-dorsey-is-expected-to-step-down-sources-say.html) to CEO, but closed down 3%. 

- __Dorsey has served double duty__ for years as the leader of both Twitter *and* payments giant __[Square](https://robinhood.com/stocks/SQ)__, joining Elon in the unusual double-CEO club. 
- But investors have [criticized](https://snacks.robinhood.com/newsletters/42WzDwJTA1ARzGFwlhSQCA/articles/63XF0Ex7GVtXqkWpEfixWt/) Dorsey for treating Square — which is nearly 3X as valuable as Twitter — as his favorite child. 

__Not so namaste…__ Dorsey and Twitter have had a #complicated relationship for years. In 2008, he was [fired](https://www.theverge.com/2015/10/5/9457277/jack-dorsey-twitter-ceo-timeline) from his CEO-ship for spending too much time on extracurriculars (think: vipassana meditation retreats, fashion classes). Then, in 2015, Dorsey made a Jobs-ian return as chief exec. Last year, activist investor Elliott Management tried to [pressure](https://snacks.robinhood.com/newsletters/42WzDwJTA1ARzGFwlhSQCA/articles/63XF0Ex7GVtXqkWpEfixWt/) him to either step down or stop multitasking. Now, Dorsey is leaving at a transformational time for Twitter:

- __Ups:__ This year, Twitter [unveiled targets](https://www.cnbc.com/2021/02/25/twitter-sets-goals-to-double-revenue-reach-315-million-users-by-end-of-2023.html) to double revenue by 2023 by attracting new users and launched fresh features like its Twitter Blue subscription and Audio Spaces. 
- __Downs:__ Congress grilled Twitter over failing to fight misinformation, and its revenue is growing [slower](https://snacks.robinhood.com/newsletters/5ei5KZ0s1RNU72D3ZPf13v/articles/4ZPkTzBA4s9p11Q0CXyTKP/) than other social giants’.

More time for breathwork meditation [Westend61 via Getty Images]

Namaste

__Sometimes it’s good for founders to get lost…__ In his resignation letter, Dorsey said companies must eventually ditch their founders to keep evolving. Some analysts argue that founder-led companies outperform competitors. But tech stars like __[Microsoft](https://robinhood.com/stocks/MSFT)__, __[Amazon](https://robinhood.com/stocks/AMZN)__, and __[Google](https://robinhood.com/stocks/GOOGL)__ have thrived *without* their parents. We’ll see if new Twitter boss Agrawal can guide the blue bird to a new era of growth.

Twitter founder Jack Dorsey steps down to focus on Square — and let Twitter find itself 

The Omicron effect, Jack Dorsey tweets out, and more of today’s top Snacks stories

🦠 The Omicron effect

__Charlotte's Web3…__ is tangly. By now, the term "Web3" has been thrown out by techies more times than “Gucci” at Fashion Week. The Silicon Valley buzzword [refers](https://slate.com/technology/2021/11/web3-explained-crypto-nfts-bored-apes.html) to a conceptual internet of the future that runs on public blockchains. Refresher: Web1 was the disjointed era of AOL and static GeoCities pages. Web2 is *the now*, dominated by Big Tech. Web3 is still a vision, but can be loosely defined as:

- __Decentralized:__ Instead of accessing the web through services controlled by titans like __[Google](https://robinhood.com/stocks/GOOGL)__ and __[Facebook](https://robinhood.com/stocks/FB)__, Web3 would feature new services *owned by their users.*
- __Unified:__ By recording your activity in “crypto Sharpie” on a blockchain, Web3 [could](https://www.fastcompany.com/90696192/what-is-web3) let us carry our data around and bounce *between* sites with one "account" (scrap the 50 logins).
- __Direct:__ Blockchain tech could allow for more direct online transactions and interactions, *without* Big Tech intermediaries.

__Googling "how to Web3"...__ *sooo* not Web3. *In theory*, decentralized payments and publicly owned social sites could eliminate some revenue for companies like Google, __[PayPal](https://robinhood.com/stocks/PYPL)__, and Meta (fka Facebook). In October, VC heavyweight Andreessen Horowitz launched a Web3 lobbying campaign in DC, promoting it as a solution to tech monopolies. Cryptos, NFTs, and DeFi apps will be crucial parts of any Web3 future:

- __DeFi:__ Decentralized finance apps replace financial mediators like banks, powering direct transactions via blockchain. 
- __NFTs:__ Web3 could form the basis for a marketplace to exchange everything from digital art to __[Nikes](https://robinhood.com/stocks/NKE)__ through non-fungible tokens. 
- __Voting:__ Web3 features could empower communal platform decisions. __Reddit__ is exploring letting users share ownership of communities with tokens accrued by posting.

Counting the “Web3” mentions [dowell/Moment via Getty Images]

Buzzy

__Web3 is a threat to Big Tech…__ But Big Tech companies will likely be very involved, from shaping regulation to integrating Web3 elements on their platforms (think: community tokens, NFTs). __[Twitter](https://robinhood.com/stocks/TWTR)__ is already exploring ways to add Web3 features to its app. Yet scaling the infrastructure needed for the fully fledged version could take decades. Even the largest blockchains are currently too small to handle all transactions that happen on Web2. Web3’s best-case scenario could be existing alongside Big Tech platforms — not replacing them.

Inside Web3: Why crypto fans are going wild over a blockchain-based internet idea

__The opioid saga continues...__ And now pharmacies are center stage. Last week, two Ohio counties [ruled](https://www.nytimes.com/2021/11/23/health/walmart-cvs-opioid-lawsuit-verdict.html) that __[CVS](https://robinhood.com/stocks/CVS)__, __[Walgreens](https://robinhood.com/stocks/WBA)__, and __[Walmart](https://robinhood.com/stocks/WMT)__ enabled the opioid epidemic — which has killed 500K+ Americans — by allowing opioid over-prescription. The verdict will likely lead to more fines for pharmacy giants. Leading drugmakers are already being held accountable: OxyContin maker __Purdue Pharma__ was slapped with $8.3B in penalties for fraudulent marketing, while __[Johnson & Johnson](https://robinhood.com/stocks/JNJ)__ and opioid distributors __[McKesson](https://robinhood.com/stocks/MCK)__, __[Cardinal Health](https://robinhood.com/stocks/CAH)__, and __[AmerisourceBergen](https://robinhood.com/stocks/ABC)__ also face a $26B settlement. 

__The inflation situation...__ Consumer prices jumped the most in 31 years last month. Three-quarters of Americans say they’re feeling the pinch, and more than half blame President Biden, knocking his approval rating to an all-time low of 41%. But high prices haven’t stopped US consumers from splurging, and holiday spending’s expected to hit a record $860B. Analysts expect inflation to stay high for years, so Biden’s stepping in. Last week, he tapped into national oil reserves to lower gas prices and [renominated](https://snacks.robinhood.com/newsletters/tvJUzlGkshzFrnGnd6qoi/articles/2MgXVXnmmDwESm1JRyHWX7/) Fed Chair Jerome Powell, hoping he’ll fight surging prices.

__Task board is stacked…__ with nothing checked off. Software company __[Asana](https://robinhood.com/stocks/ASAN)__ is a one-stop shop for online project management with 100K+ paying customers worldwide. Asana's revenue tripled to $90M last quarter as corporate customers more than doubled, which helped it notch a $20B market cap. Now Asana is focused on expanding its business overseas and growing partnerships with companies like __[Zoom](https://robinhood.com/stocks/ZM)__ and __[Vimeo](https://robinhood.com/stocks/VMEO)__. We’ll see whether that boosted Asana’s sales when it reports on Wednesday. 

__Help (still) wanted...__ even as people flock back to work. After the pandemic triggered millions of layoffs, the job market is heating up again. Last week, the number of Americans claiming jobless benefits hit its lowest level in more than 50 years. October hiring surged as bars, restaurants, and hotels rushed to staff up despite an ongoing labor shortage — which hasn’t been cheap. Retailers are hiking wages and offering free tuition to snag employees. We'll see how the labor rebound is faring when the November jobs report drops on Friday.

Coming up this week...

- __[Bitcity](https://snacks.robinhood.com/newsletters/tvJUzlGkshzFrnGnd6qoi/articles/7zjh1yq8Gd2c9acDpaEOyi/):__ El Salvador plans to build a volcano-powered "Bitcoin City," funded by the first government-issued “Bitcoin bonds” — but its crypto moves could be economically implosive. 
- __[DPF](https://snacks.robinhood.com/newsletters/2n989dA9N7ApWDcv9S51qS/articles/3Mz5szROvbpzCmXpoXRQA8/):__ Zoom shares plunged last week after it reported slowing sales growth. It’s not the only WFH winner suffering from the “demand pulled forward” effect. 
- __[Swipe](https://snacks.robinhood.com/newsletters/2n989dA9N7ApWDcv9S51qS/articles/2XP3myo7aKNIbAvpZ036fv/):__ __Tinder__ and __Hinge__ owner __[Match Group](https://robinhood.com/stocks/MTCH)__ launched a human-matchmaking subscription as swipe-fatigued singles look for love beyond algorithms.

Last week's highlights....

Web3 untangled, pharma’s opioid problem, and more of today’s top Snacks stories

🕸️ Web3, untangled

__“Voice Prompts” on Hinge…__ slightly cringe. Dating giant __[Match Group](https://robinhood.com/stocks/MTCH)__ owns __Tinder__, __Hinge__, __OKCupid__, and 20+ other e-romance businesses. Algorithms rule the world, from suggesting your __[Spotify](https://robinhood.com/stocks/SPOT)__ tunes to hooking you on __TikTok__. Match has long used algorithms to surface eligible singles who also love Nirvana and vegan sushi. Now its techy selection process is getting a human edge:

- __Matchmakers:__ For $5/week, Match.com users can lean on human dating coaches to handpick two top candidates based on their answers to four personal questions. 
- Match said it created the feature because, for some singles, the pandemic added urgency to find a serious relationship. 

__#CuffingSeason…__ During the pandemic, couch-bound singles flocked to dating apps for (virtual) company. Bumble video-chat usage soared 93% after a national emergency was declared, and Match added features to its apps — think free video calls, virtual trivia nights, and Insta-like social feeds. But the *real* money is in paid subscriptions like Tinder Gold and perks like unlimited swipes. Case in point: Tinder is the #1 grossing lifestyle app worldwide, with a record 10.4M “payers” last quarter. Human matchmaking could be apps’ next premium perk.

A match made on Match [Stephen Zeigler/DigitalVision via Getty Images]

Swiped

__There are *too many* fish in the sea…__ Algorithms have enabled personalized experiences on a broad scale. For a low cost (or for free) tailored music, entertainment, and even people can be surfaced to us via apps. Now the differentiators are *curation* and quality. Human curation is more expensive, but it increases the IRL connection that many crave in an algo-driven world. That could become a competitive advantage for apps like Match. 

Tinder owner Match expands to human matchmaking to fight swipe fatigue

__What Zooms in must Zoom out…__ The __[Zoom](https://robinhood.com/stocks/ZM)__ boom may be over. On Monday, the company [reported](https://www.cnbc.com/2021/11/22/zoom-zm-earnings-q3-2022.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axioscloser&stream=top) slightly better than expected earnings — but revenue growth slowed for the third consecutive quarter. Zoom’s quarterly sales grew just 35% from last year, compared to 10X faster growth a year ago. Shares slid 15% yesterday, dropping Zoom’s market cap to a third of its pandemic peak. Now Zoom’s focused on two things:

- __Corporate customers:__ The number of Zoom customers who spend $100K+ annually nearly doubled last quarter from last year, to 2.5K.
- __New offerings:__ Zoom is exploring growth opportunities, like licensing its video tech to other apps and letting people host paid events (think: __Zumba__ class).

__Zoomed in too far…__ Zoom’s growth didn’t just slow from pandemic highs: It had its slowest quarter since *2018*. Other pandemic thrivers also experienced the “DPF effect” — demand pulled forward. Demand boomed all at once early in the pandemic (aka was “pulled forward”), then slowed as new customers dwindled. The stock market’s up 26% this year, but some WFH winners are seeing slowdown-driven selloffs:

- __[Peloton](https://robinhood.com/stocks/PTON)__ shares are down 71% this year, after __Equinox__ and __SoulCycle__ reopened. Sales grew 6% last quarter compared to 232% in the same quarter last year. 
- Online education company __[Chegg’s](https://robinhood.com/stocks/CHGG)__ shares are also down 71% this year as schools resume and subscription saturation intensifies (#subscripturation).
- __[Pinterest](https://robinhood.com/stocks/PINS)__ shares are down 39% this year since everyone’s already created too many kitchen inspo moodboards.
- __[Netflix](https://robinhood.com/stocks/NFLX)__ added only 4.4M subscribers last quarter, and lost 400K subscribers in North America, after adding a whopping 36M subs worldwide last year.

__Some pandemic habits could stick…__ But Zoom could still lose to the conference room. People who flocked to __Zoom__, __Peloton__, and __Chegg__ are returning to offices, gyms, and schools — and growth is slowing. But not everyone is experiencing subscripturation: __DocuSign’s__ subscription revenue grew *faster* last quarter than a year earlier, because people who started signing digitally aren’t returning to physical paperwork. 

Zoom shares plunge on slowing growth, as the “DPF effect” sets in

❤️‍🔥Match’s new matchmaking, Zoom’s “DPF effect,” and more of today’s top Snacks stories

❤️‍🔥 Match’s new matchmaking

__Not an Onion headline...__ El Salvador said it [plans](https://www.ft.com/content/18b59559-378b-4f14-ab2e-b54ede79816c) to build a volcano-powered __[Bitcoin](https://robinhood.com/crypto/BTC)__ City featuring a central plaza that looks like a massive Bitcoin symbol. Construction is scheduled to start next year. This past September, the Central American nation [became](https://snacks.robinhood.com/newsletters/16uFOszfvdJpLmfPxuN8cQ/articles/1VGWOHosnNxOoSHGQ0xRm/) the first country to adopt Bitcoin as legal tender, alongside the US dollar. Last week, 40-year-old Salvadoran President Bukele said Bitcoin City would be built next to a volcano, which would power BTC mining, and wouldn’t have any taxes, except a sales tax. Bukele is known for his crypto bullishness and authoritarian tactics (and his backward baseball cap).

- __Bit bonds:__ El Salvador plans to create the world’s first government-issued “Bitcoin bonds.” Half the funds from the $1B issues would be converted to BTC, and the other half would be used for city infrastructure and mining.

__Bit volatile...__ El Salvador is one of Latin America's poorest countries, with 23% of its population below the poverty line. Its existing gov’t bonds (aka: debt) are already [categorized](https://www.coindesk.com/markets/2021/11/22/junk-rated-el-salvadors-bitcoin-bonds-look-explosive-think-volcano/) as junk grade, and the Bitcoin-bonds plan is [getting](https://www.ft.com/content/18b59559-378b-4f14-ab2e-b54ede79816c) side-eye from financial experts. Meanwhile, El Salvador is spending hundreds of millions on its Bitcoin rollout, which Bukele [believes](https://theconversation.com/bitcoin-is-now-legal-tender-in-el-salvador-heres-what-that-means-167099) will improve financial inclusion and attract spending from foreign crypto investors.

- __Salvadorans can pay for anything in Bitcoin__ through gov’t-run BTC wallet “Chivo” — from McMuffins to taxes, rent, and even salaries. Bukele says Chivo now has millions of users, but USD is still the most used currency by far.

Erupt

__Larger scale = greater risk…__ By adopting BTC as legal tender, El Salvador is taking a wide-scale risk for 6.5M citizens. The IMF is worried that BTC's volatility — and history of rapid plunges — poses major threats to El Salvador's economy. In a September poll, 80% of Salvadorans said they lacked confidence in BTC, and protests have erupted over fears it could destabilize the economy further. Still, it could be a valuable experiment for other countries considering Bitcoin as a national currency. So far: only Panama. 

El Salvador is planning a volcano-powered “Bitcoin City,” but its moves could be economically implosive

__Powell reloaded…__ Fed Chair Jerome Powell has been running America’s central bank since 2018. He helped the economy rebound from a pandemic plunge with heavy stimulus medicine. Think: pumping trillions into the money supply through $120B monthly bond purchases. Now stocks are near record highs, but inflation is soaring — and Powell may have to clean up the aftermath. 

- __After months of deliberation,__ Biden [said](https://www.wsj.com/articles/biden-will-tap-jerome-powell-for-new-term-as-fed-chairman-11637589600) he’d appoint Powell to another four-year term. The Senate is expected to confirm Biden’s choice soon.
- __Power to the Powell:__ For months, investors had wondered whether Biden would nominate pro-business Powell or Fed governor Lael Brainard, who’s known to be tougher on banks (Biden said he’d appoint her to the No. 2 spot). 

__If it ain’t broke…__ don’t nix it. For Biden, the stakes of this nomination are high. US inflation hit a 31-year high last month. Half of voters blame Biden for surging prices of staples, from gas to bacon. Biden will rely on Powell for help keeping prices down: The Fed can raise interest rates to cool spending and keep prices in check. About that…

- This month the Fed [approved](https://www.wsj.com/articles/fed-dials-back-bond-purchases-plots-end-to-stimulus-by-june-11635962417?mod=hp_lead_pos1) plans to start scaling back its economy-boosting bond-buying program. 
- It announced it was planning to buy $15B less in bonds — *and end all bond purchases by June.*

Sticking to the chair [Westend61 via Getty Images]

Sequel

__There’s a trade-off…__ between inflation and growth. Keeping inflation in check could mean limiting the cash that flows out of banks. It could mean higher interest rates on loans, from mortgages to credit cards — which could depress spending. The sweet spot: keeping inflation under control while maintaining economic growth. Fed officials don’t want to raise interest rates until at least July, after they’ve ended their bond-buying spree. But if prices keep soaring, they may have to move more quickly.

Biden picks Powell for a second term as Fed chair, hoping to fight surging prices

Jerome’s 2nd act, El Salvador’s “Bitcoin City,” and more of today’s top Snacks stories