__Plus isn’t always positive…__ CNN+ is off to a rough start. The network that invented cable news launched its $6/month subscription streaming service two weeks ago. It went live days before CNN’s parent [merged](https://snacks.robinhood.com/newsletters/aHxrhlzudIs7bopZbJSGR/articles/jw8WzXcTXZhgCC7cyV676/) with Discovery to form __[Warner Bros. Discovery](https://robinhood.com/stocks/WBD)__, and it raised [questions](https://www.axios.com/cnn-plus-cuts-warner-brothers-discovery-1be0ac3a-6952-4af0-b8e2-03dd6ae0839c.html) that the launch may’ve been rushed. Sure enough, early numbers don’t look good:

- __Tiny viewership:__ CNN+ is said to have fewer than 10K daily viewers, making its goal of 2M subscribers in its first year seem far-fetched. __[Disney+](https://robinhood.com/stocks/DIS)__ got 10M subs on its *first day*.
- __Limited programming:__ The app does *not* have live news (more on that in a sec). It *does* have a Jake Tapper-hosted book club and a show about Anderson Cooper navigating parenthood.
- __Big cuts:__ Execs are reportedly planning to slash hundreds of millions from the project’s budget, which was originally $1B.

__Stuck in the carriage…__ As more consumers ditch cable, media OGs have repackaged their content in apps to appeal to the cord-cutting crowd. Discovery+, Disney+, and HBO Max offer the programming those brands are known for — *plus* extra content (hence all the + signs). But CNN can’t include live news in its app because of “carriage contracts.”

- __Carriage contracts__ give cable giants like __[Comcast](https://robinhood.com/stocks/CMCSA)__ and __[AT&T](https://robinhood.com/stocks/T)__ exclusive rights to live news from outlets like CNN — and prevent simulcasts on apps.
- __Cable sold separately:__ If you subscribe to CNN+, you don’t actually get CNN. In contrast, HBO Max subscribers get *all* HBO shows and then some.

Can CNN’s A-Team get people to pay for streaming news? (Slaven Vlasic/Getty Images)

Nonplussed

__Streaming is fighting subscription fatigue…__ For news junkies who already pay for cable — or cord-cutters who pay for 12 different TV apps and don’t know Chris Wallace from Chris Hemsworth — CNN+ may feel unnecessary. One possible solution: bundling. Many analysts expect CNN+ to get bundled with other WBD apps like HBO Max and Discovery+ to attract subscribers.

CNN’s new streaming service is reportedly pulling in fewer than 10K daily viewers, and it’s raising concerns that cord-cutters won’t pay for news

__A DIY dilemma…__ [Millions](https://www.wsj.com/articles/etsy-sellers-strike-as-site-ramps-up-to-battle-amazon-11649681740) of small-biz merchants use [Etsy’s](https://robinhood.com/stocks/ETSY) ecommerce platform to sell everything from embroidered crewnecks to hand-sculpted vases. Now thousands of those vendors are on strike, closing up their shops for the week. They’re protesting transaction fees that are going from 5% to 6.5%. Just three years ago fees were half that. 

__Blinged-out face masks…__ circa: 2020. Etsy was the [go-to](https://www.wsj.com/articles/etsy-sellers-strike-as-site-ramps-up-to-battle-amazon-11649681740) marketplace in the early days of the pandemic, when mask scarcity at major retailers forced consumers to go the homemade route. As a result Etsy saw record profits and was the S&P’s [second-best-performing](https://snacks.robinhood.com/newsletters/1huKaRyrqLQlWLkXap0P29/) stock in 2020 (after __[Tesla](https://robinhood.com/stocks/TSLA)__). But like other pandemic thrivers, sales are starting to cool as shoppers return to their pre-Covid routines and shopping habits. Now Etsy’s execs want to __[Amazon](https://robinhood.com/stocks/AMZN)__-ify the biz by widening its appeal: 

- __Etsy's CEO said it’s competing__ against some of the biggest retailers and needs to hike fees to reinvest in elements of its core biz, such as speeding up response times to sellers. 
- __Etsy’s sellers have complained__ that the rapid growth has also attracted a flood of wholesale and mass-produced vendors — which is against company policy.

Crafty

__Etsy risks losing what made it special…__ its sellers. Etsy now aspires to be the first place you go to shop online. But those Amazon-esque ambitions conflict with its original mission of providing a platform for artists, arts-and-crafts folks, and their customers. The tension playing out between Etsy and its sellers suggests that as it aims for a bigger piece of the e-commerce pie, the mission may have to change.

Etsy sellers go on strike, protesting the Amazon-ification of the niche marketplace

CNN+ is struggling, raising doubts about demand for streaming news

Dow Jones

S&P 500

Nasdaq

Bitcoin

Interns are much less sold on remote work than seasoned employees, with 70% viewing it negatively

📡 CNN’s streaming struggle

__It’s not easy being cheesy…__ especially when inflation is Flamin’ Hot. Thanks to rising prices, your next bag of Cheetos may be less satisfying: food giants are [shrinking](https://www.businessinsider.com/how-companies-charge-the-same-for-less-stuff-shrinkflation-doritos-2022-3) their snacks to mask price hikes, just one way companies are trying to manage costs that keep going up. Last month, consumer prices [rose](https://www.wsj.com/articles/us-inflation-consumer-price-index-march-2022-11649725215) 8.5% from last year for the biggest spike in four decades. Driving the increase: skyrocketing energy and food prices.

- __You’re not wrong:__ bags of Doritos are coming with five [fewer](https://www.newsweek.com/not-your-imagination-doritos-bag-has-5-fewer-chips-due-shrinkflation-1689450) chips. And __[Pepsi](https://robinhood.com/stocks/PEP)__ [shrank](https://www.cnet.com/personal-finance/gatorade-doritos-wheat-thins-why-are-grocery-products-shrinking/) the packaging of Gatorade and Wheat Thins, giving customers the illusion prices aren’t rising when they really are.

__#Flation takes many forms…__ and some are easier to spot than others. Snack companies can cut costs just by changing packaging: shrinking it, [rebranding](https://www.wsj.com/articles/us-inflation-consumer-price-index-march-2022-11649725215) it as “limited edition,” or both (“Birthday Edition” [Oreos](https://www.oreo.com/oreo-110th-birthday-chocolate-confetti-cake) = smaller *and* pricier). And the “creativity” isn’t confined to the supermarket: 

- __Swap-flation:__ __[GM](https://robinhood.com/stocks/GM)__ is [swapping](https://www.cnbc.com/2022/02/20/the-chip-shortage-is-so-bad-gm-dropped-heated-seats-in-winter.html) out premium features like heated seats for more basic, butt-freezing alternatives.
- __Skimp-flation:__ __[Hilton](https://robinhood.com/stocks/HLT)__ and __[Marriott](https://robinhood.com/stocks/MAR)__ are [ditching](https://www.ft.com/content/042af8db-a201-4d9d-9f61-cc783be0d725) once standard services like room cleaning, making them “opt in” instead; __[Hyatt](https://robinhood.com/stocks/H)__ even nixed its mini shampoo bottles.
- __Robo-flation:__ Banks and airlines are using chatbots instead of employees, and labor-strapped restaurants are [replacing](https://www.nytimes.com/2021/10/10/upshot/shadow-inflation-analysis.html) waitstaff with QR codes.

Navigating shrinkflation in the snack aisle (Mok Jee Chuang/EyeEm/Getty Images)

Flated

__Shrinkflation could outlast inflation…__ Even if fuel costs return to normal this year, you might still be a few Doritos short of a full bag. Inflation’s expected to slow in the coming months as Fed rate hikes kick into gear. But just because prices cool doesn’t mean #flation strategies will disappear: experts say companies are unlikely to bring back larger sizes or free perks and services once they’ve trained consumers to expect something less.

Consumer prices jump the most in 4 decades, unleashing a flurry of creative ’flation

__Bowser goes bowling...__ From the Game Boy to the Wii, __[Nintendo](https://robinhood.com/stocks/NTDOY)__ popularized video games as a family-friendly activity. Now the 133-year-old Japanese gaming icon is bringing together two of its most popular products. This month Nintendo will [release](https://www.theverge.com/2022/4/11/23014891/nintendo-switch-sports-wii-bowling-features-mini-games-price-release-date-hands-on) “Nintendo Switch Sports,” a Switch adaptation of “Wii Sports,” the top-selling Wii game that sold 83M copies.

- __Interactive:__ Joy-Con controllers (which break off from the Switch tablet) let you kick, sprint, and hit virtual balls with your hands. You can even [strap](https://www.youtube.com/watch?v=TZ16-1YIRAc) the Joy-Con to your leg for soccer.
- __Immersive:__ Six mini-games (including bowling, tennis, and sword dueling) play out in vivid graphics on your Switch screen or TV.

__Nostalgia crossing...__ Despite pesky supply shortages, Nintendo [boosted](https://www.shacknews.com/article/128644/nintendo-ntdoy-increases-sales-and-earnings-guidance-for-fy-2022) its sales and profit outlook for the year. Its greatest strength lies in its iconic franchises, from Mario and Pokémon to the Wii series and Switch console — and leveraging them into new but familiar products. “Switch Sports” could gain hit status by merging two best-sellers:

- __Wii winning:__ Released in 2006, the Wii introduced motion-controlled gaming to a wide audience with winners like “Mario Kart” and “Wii Sports” ([shattering](https://www.youtube.com/watch?v=D_uXEWKdsTY) TVs in the process).
- __Switch it up:__ This year, Switch [overtook](https://www.engadget.com/nintendo-switch-sales-have-surpassed-the-wii-090515380.html) Wii to become Nintendo's best-selling home console ever with 100M+ units sold since its 2017 launch. Thanks, “Animal Crossing.”

Wiin

__Nintendo doesn’t need to go meta…__ Its Wii (and now Switch) games are kind of like a mini-metaverse where you interact with friends, minus the heavy and disorienting headsets. That’s why Nintendo says it’s [not interested](https://www.ign.com/articles/nintendo-metaverse) in getting into the metaverse right now. Products with low barriers to entry from consumer faves like Nintendo could be a threat to the more immersive meta vision that __[Meta’s](https://robinhood.com/stocks/META)__ banking on.

Nintendo merges 2 hit franchises in an interactive Switch game, banking on the power of nostalgia

Shrinking snacks and opt-in room service: companies get creative to manage inflation

There are 170K ways to customize a Starbucks drink order

🔎 Beyond shrinkflation

__Bugs Bunny and Guy Fieri just moved in together…__ They’re Warner Brothers now. Yesterday, __WarnerMedia__ and __Discovery__ finally [completed](https://www.nytimes.com/2022/04/10/business/media/warner-bros-discovery.html) their $43B merger, creating a new Hollywood heavyweight for the streaming era. Longtime Discovery CEO David Zaslav — aka Zaz — will run the new biz, __[Warner Bros. Discovery](https://robinhood.com/stocks/WBD)__. 

- __Upside:__ WBD combines classic IP, streaming hits, and cable catnip under one roof (think: “Batman” *and* “Game of Thrones” *and* “Shark Week”). It also has 94M subscribers between HBO Max and Discovery+, putting it closer to __[Disney](https://robinhood.com/stocks/DIS)__ (130M) and __[Netflix](https://robinhood.com/stocks/NFLX)__ (222M).
- __Downside:__ WBD has $55B of debt, which could lead to “synergies” (aka layoffs). Several high-profile execs have already been shown the door. 

__Back to (show) business…__ WBD is going full Hollywood. Zaz has spent months meeting with Tinseltown’s biggest names to talk strategy. The goal: distance WBD from WarnerMedia’s former parent, __[AT&T](https://robinhood.com/stocks/T)__. 

- __Flashback:__ AT&T bought WarnerMedia in 2016 and planned to run it like a tech biz. But development stalled during the 20 months it took for the deal to be approved — and all the while Netflix and __[Amazon](https://robinhood.com/stocks/AMZN)__ poached top talent and churned out content.
- __Odd couples:__ Corporate giants have bought unrelated media businesses before: __[Coke](https://robinhood.com/stocks/KO)__ once owned __Columbia Pictures__ and, more recently, __[GE](https://robinhood.com/stocks/GE)__ owned __NBC__. Both were eventually offloaded.

Welcome to Hollywood, Zaz (Roy Rochlin/Getty Images)

DiscoBros

__The key to streaming may be streamlining…__ WBD is more streamlined than AT&T, which was always a telecom biz at heart. But it’s still clunkier than its streaming-centric rivals because its top content straddles cable TV and streaming services. WBD has enough hot IP to compete with Netflix and Disney in the streaming wars. But added expenses related to cable programming and debt repayment may leave a narrow path to streaming profitability, and a big incentive to streamline even further.

Warner Bros. Discovery is Hollywood’s new heavyweight, but it faces an upstream battle

__*Cruising* past the cops…__ ICYMI: a recent viral [video](https://www.newsweek.com/video-police-driverless-car-gm-cruise-video-viral-1696833) showed one of __[GM’s](https://robinhood.com/stocks/GM)__ Cruise robo-taxis being pulled over by San Francisco police, before it briefly drove off, leaving the officers looking confused. The stop appeared to be for missing headlights. Cruise said the car yielded to police and then drove to the nearest safe location “as intended.” How we got here:

- __In February:__ Cruise [rolled](https://fortune.com/2022/02/01/cruise-robotaxi-self-driving-car-san-francisco/) out its driverless robo-taxi service to the public in San Francisco. Up until then only employees could use it. 
- __Last month:__ __[Google’s](https://robinhood.com/stocks/GOOGL)__ Waymo robo-taxis [joined](https://www.wsj.com/articles/waymo-to-send-driverless-cars-through-san-francisco-11648648800) Cruise in SF and [Phoenix](https://www.azcentral.com/story/money/business/consumers/2022/03/30/waymo-expanding-autonomous-vehicle-service-downtown-phoenix/7209759001/) by offering driverless rides for its employees. 

__The (driverless) future has arrived...__ While you weren’t looking — and after years of hype — fully self-driving cars became a reality in the first US cities. Nearly [30](https://www.ncsl.org/research/transportation/autonomous-vehicles-self-driving-vehicles-enacted-legislation.aspx#:~:text=Twenty%2Dnine%20states%E2%80%94Alabama%2C,%2C%20Virginia%2C%20Vermont%2C%20Washington%20and) US states have now passed legislation on autonomous driving, with California issuing the first commercial-use [permits](https://www.reuters.com/technology/california-issues-permits-cruise-waymo-autonomous-vehicle-service-2022-02-28/) in 2018. Still, the road ahead for mass public acceptance is long. Voters remain skeptical, with nearly half of Americans [saying](https://www.engadget.com/many-americans-distrust-emerging-technology-new-study-finds-170038843.html) they’re uncomfortable sharing the road with self-driving cars, and two-thirds saying they wouldn’t get in one.

Yield

__With great virality comes great responsibility…__ The Cruise traffic stop was a relatively harmless incident: no one was hurt and the car apparently did what it was programmed to do. But like air travel once was, self-driving tech is dependent on the public believing it’s safe. Uber once had high-flying autonomous ambitions that came to a [halt](https://www.theverge.com/2020/12/7/22158745/uber-selling-autonomous-vehicle-business-aurora-innovation) after one of its partially self-driving cars struck and killed a pedestrian (the car’s “safety driver” was [charged](https://www.reuters.com/article/uber-selfdriving/safety-driver-in-fatal-arizona-uber-self-driving-car-crash-charged-with-homicide-idUSKBN26708P) with negligent homicide). Now that fully driverless cars are on the road, videos showing them interacting with the real world could become make or break for companies like Cruise and Waymo as they expand.

GM’s self-driving-car unit gets its first viral moment — a sign of things to come as robo-taxis hit city streets

Hollywood's newest heavyweight, Warner Bros. Discovery, faces an upstream battle

8 of the 10 busiest airports in the world are in the US, with Atlanta’s Hartsfield-Jackson having retaken the top spot

🎥 Hollywood’s new heavyweight

__A new crisis is building...__ From fertilizing [manure](https://www.reuters.com/world/us/us-manure-is-hot-commodity-amid-commercial-fertilizer-shortage-2022-04-06/) to tractor-fueling diesel, the inputs that power the world’s agriculture industry are in short supply. Why it matters: these shortages make it hard for farmers to feed the world and have caused global food prices to surge at their [fastest pace](https://www.bloomberg.com/news/articles/2022-04-08/food-prices-jump-most-on-record-as-war-sparks-supply-chaos?sref=px9VEDa6) *ever*: a record 13% jump last month. The pandemic gave us shortages and sticky inflation. Now Russia’s war on Ukraine — plus Covid lockdowns in China’s farming provinces — are making a bad situation worse. 

- __Pricey breadbasket:__ Wheat and corn prices soared more than [19%](https://www.theguardian.com/global-development/2022/apr/08/global-food-prices-rise-to-highest-ever-levels-after-russian-invasion-ukraine-wheat) last month as war + sanctions crush supply from the key Black Sea “breadbasket” region. 
- __Empty breadbasket:__ Food staples are running low as Russia bombs Ukrainian wheat fields and critical shipping ports remain closed. 
- __FYI:__ Russia is the world’s largest wheat exporter, while Ukraine accounts for a quarter of all grains trade and is the #1 exporter of sunflower oil. 

__Corn Flakes price hikes…__ are just one ripple effect from a major crisis. Americans notice food inflation in the form of pricier __[General Mills](https://robinhood.com/stocks/GIS)__ Cheerios or __[Kellogg’s](https://robinhood.com/stocks/K)__ Pop-Tarts. While US food prices are up [8%](https://www.bls.gov/cpi/) from a year ago, the latest rally is hitting the world’s poor hardest. Countries in the Middle East and North Africa, for example, are feeling the brunt of food shortages because they largely import their staples. Russia’s war could plunge [40M](https://www.cgdev.org/blog/price-spike-caused-ukraine-war-will-push-over-40-million-poverty-how-should-we-respond) more people into extreme poverty if it continues this way.

On the brink of a global food crisis  (Burak Kara/Getty Images)

Bread

__It’s an imperfect storm…__ From the pandemic and war to severe weather and historic droughts, a rare combo of terrible circumstances is putting every aspect of food production under pressure — *all at once*. Global food prices have surged 75% since mid-2020 and are expected to keep climbing. The UN [said](https://www.bloomberg.com/news/articles/2022-03-31/middle-east-at-breaking-point-over-food-prices-un-says) it’s putting some people in poorer countries at a “breaking point.” Food insecurity is known to lead to more civil conflict and unrest — it was bread prices that helped spark the Arab Spring over a decade ago.

Farm-ageddon: The world’s food supply is under threat as a storm of rare conditions brews

__The drones are coming…__ with your allergy meds. Retailers from __[Amazon](https://robinhood.com/stocks/AMZN)__ to __[Walmart](https://robinhood.com/stocks/WMT)__ are finally [starting](https://www.wsj.com/articles/amazon-alphabet-and-others-are-quietly-rolling-out-drone-delivery-across-america-11648872022) to deploy delivery drones after years of hype. Last week, residents of Frisco, Texas, became the [first](https://www.dallasnews.com/business/retail/2022/04/07/see-drones-in-action-in-frisco-that-walgreens-and-wing-hope-to-use-more-broadly-for-deliveries/) to receive robo-packages from __[Walgreens](https://robinhood.com/stocks/WBA)__, via its __[Google](https://robinhood.com/stocks/GOOGL)__-owned drone supplier Wing. Amazon is rolling out commercial drone deliveries this fall, with plans to deliver 500M aerial packages/year. While drone advocates say the delivery tech could reduce emissions (fewer traffic-clogging trucks), regulators have yet to give the green light for nationwide shipments.

__The paradox of recession-omics...__ By most metrics, the US economy is booming: unemployment is back to pre-pandemic levels; salaries are rising at their fastest clip in decades; and consumers are splurging on spring fits and summer vacays. And yet… some economists are bracing for a downturn. Their reasoning: the Fed can’t cool the worst inflation in 40 years without also slamming the brakes on growth. Last week __[Deutsche Bank](https://robinhood.com/stocks/DB)__ was the first on Wall Street to predict a recession, followed by __[Bank of America](https://robinhood.com/stocks/BAC)__ warning of a “recession shock.”

Zoom Out

Stories we’re watching...

__Fanny packs and flower crowns...__ #FestivalSzn is back. Coachella, Cali’s most Insta-worthy music festival, returns for the first time in two years this weekend — launching what could be a blockbuster summer for live events. When the pandemic hit, the music stopped. Now it’s back with a vengeance, and people are ready to *dance*. Last year, some bookers sold a year's worth of tickets in six months. Concert giant __[Live Nation](https://robinhood.com/stocks/LYV)__, a rival to Chella parent __AEG__, says ticket sales are [up](https://www.bloomberg.com/news/articles/2022-02-24/live-nation-jumps-as-music-promoter-predicts-concert-comeback) 45% from 2019 and predicts its best year ever.

__Opening the vaults...__ Big banks kick off earnings season this week, giving investors the first peek at how an [*eventful*](https://snacks.robinhood.com/newsletters/3lyRcv80sVxPoaiv3W15GL/) first quarter affected corporate profits. Rising interest rates, which let banks charge more for loans, mortgages, and credit cards are expected to [boost](https://www.forbes.com/sites/sergeiklebnikov/2022/01/14/heres-why-big-bank-stocks-like-jpmorgan-are-struggling-despite-solid-earnings/?sh=2a2fb1257d68) profits at __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__, __[Wells Fargo](https://robinhood.com/stocks/WFC)__, and __[Citi](https://robinhood.com/stocks/C)__. On the flip side, Citi and JPM expect big losses related to their holdings in Russia. And a dramatic slowdown in IPO and deal-making activity so far this year probably won’t help either.

Events

Coming up this week...

- __[Zero](https://snacks.robinhood.com/newsletters/6CvoAkhTzggBHZuGf3azk2/articles/svsEnsjFsXcHb4qgGjdHj/):__ China’s financial capital remains locked down over a spike in Covid cases, with ~26M Shanghai residents forced to stay home — monitored by drones and robo-dogs.
- __[Turbulent](https://snacks.robinhood.com/newsletters/22c5VDDeeLOi4iyaybumsG/articles/6v13W7lFCwtbaBJ73GcFzB/):__ __[JetBlue](https://robinhood.com/stocks/JBLU)__ outbid __[Frontier](https://robinhood.com/stocks/ULCC)__ with a $3.6B offer to buy budget airline __[Spirit](https://robinhood.com/stocks/SAVE)__. Pilot shortages and demand for scarce tarmac gates are forcing smaller airlines to merge to survive.
- __[Muskular](https://snacks.robinhood.com/newsletters/5lepo7UAINWNcn90JfK6HE/articles/68N6hnLpsgBLa7R4OZx8YF/):__ Elon became __[Twitter’s](https://robinhood.com/stocks/TWTR)__ biggest shareholder after nabbing a 9.2% stake — and a board seat. The web’s “town square” could get a makeover: Musk teased upcoming “significant improvements” (edit button?).

ICYMI

Last week's highlights...

Utah is the most financially literate US state — one reason: nearly 85% of its residents spend less than they make

🚜 Farm-ageddon

__Bringing the ’90s back…__ in those high-school low-rises. __[Levi’s](https://robinhood.com/stocks/LEVI)__ scored big last quarter as you splurged on jumpers and jean jackets for IRL date nights. Its CEO said that [despite](https://www.cnbc.com/2022/04/06/levi-strauss-co-levi-reports-q1-2022-earnings-beat.html) hiking prices, customers still shelled out more $$ for their jeans and cotton tees — and expects strong sales to continue. Total sales jumped 22% even after the denim icon took a $60M hit to combat supply snafus. Digi-sales jumped 16%, making up a quarter of Levi’s revenue. Still, Levi’s shares are down 20%+ over the past year. 

__501-fitting appointment…__ Retailers lost [billions](https://www.forrester.com/press-newsroom/forrester-retail-will-see-a-2-1-trillion-loss-globally-in-2020-due-to-coronavirus-pandemic/) during the pandemic as we swapped distressed denim for old college sweats. Since Levi’s couldn’t control its wholesaler’s closures (like: __[Kohl’s](https://robinhood.com/stocks/KSS)__ and __[Nordstrom](https://robinhood.com/stocks/JWN)__), it focused on selling directly through its own channels, both online and in stores. As part of that strategy, Levi’s [built](https://www.levistrauss.com/2020/09/29/levis-nextgen-stores-come-to-north-america/) its first handful of upgraded locations it’s dubbed “NextGen,” and it plans to roll out 30 more this year:

- __Tailor shop:__ Customers [pick](https://www.levi.com/US/en_US/features/tailor-shop) from a brunch-style menu of services like: custom embroidery, alterations, even converting old jeans into Coachella-worthy jorts. 
- __Endless AI-sles:__ Levi’s uses artificial intelligence to predict what style and price will sell best in each location (think: shorts in Silver Lake, trucker jackets in Brooklyn).
- __Payoff:__ Sales at company-operated Levi’s stores jumped 48% last quarter, while D2C sales made up 39% of total sales.

High rise, high price (Ben Gabbe/Getty Images for Nordstrom)

Rivet

__Levi's is in retail’s sweet spot…__ Its customers are paying higher prices *and* buying directly. That sweetens profits, since there’s no one in the middle to take a cut. But to justify higher prices and boost direct sales, retailers need to premium-ify the shopping experience (or at least give it some pizazz). Instead of buying $30 Levi’s from Ross, you might choose the Levi’s store to get a flower patch sewn into your jean jacket.

Levi’s bet on brick-and-mortar and personalized denim is driving a sales boom — putting the brand in retail’s sweet spot

__It’s Day 12…__ and there’s no sign of Shanghai’s lockdown lifting. Almost two weeks ago, China [locked down](https://www.wsj.com/articles/manufacturers-grind-to-a-halt-in-china-as-lockdowns-expand-11649343420?mod=hp_lead_pos4) its largest city and financial capital to contain its biggest Covid outbreak in two years. Since then, China’s zero-Covid policy has brought life to a halt for 26M people, virtually freezing one of the world’s most important manufacturing hubs.

- __Drones and robo-dogs__ are [circulating](https://www.insider.com/shanghai-deploys-drones-robot-dogs-broadcast-covid-19-lockdown-guidelines-2022-4) to remind citizens to obey the rules and curb their “soul’s desire for freedom.” Many residents are running low on [food](https://www.wsj.com/articles/shanghai-in-lockdown-struggles-to-feed-itself-11649353336) because delivery services have been disrupted (and they can’t go to the grocery store). 
- __Office sleepover:__ Some bankers are stuck [sleeping](https://www.wsj.com/articles/shanghai-workers-sleep-at-the-office-as-china-extends-covid-19-lockdown-11649244601) under their desks and brushing teeth with their coworkers.

__Indefinite lockdown, definite damage…__ Shanghai accounts for 4% of China’s GDP and 10% of its exports, so the lockdown threatens to slow the entire country’s economy. But the rest of the world could be affected, too, since Shanghai is an industrial nerve center. 

- __Closed factories:__ __[Tesla](https://robinhood.com/stocks/TSLA)__, __[Volkswagen](https://robinhood.com/stocks/VWAGY)__, and German industrial giant __ThyssenKrupp__ have shut their Shanghai plants for two weeks and counting; production has slowed for 80% of Shanghai-based manufacturers.
- __Empty ports:__ Cargo volume in Shanghai’s port — among the world’s busiest — has [dropped](https://www.ft.com/content/572eae5f-d47b-4e1b-a7c2-be63bd45000a) by a third since mid-March. Shipping giant __[Maersk](https://robinhood.com/stocks/AMKBY)__ says the lockdown will also reduce trucking in and out of the city by 30%.
- __Mounting losses:__ After this clampdown and a similar [quarantine](https://snacks.robinhood.com/newsletters/61f1B3p6bwLVtvt34XMAtW/articles/3RvjyEpf0eI4nWt1Q0lGVg/) in Shenzhen last month, half of US companies in China have reduced their annual sales estimates.

Quar

__Supply struggles could speed the “decoupling”…__ of the West’s business ties with China. If a pandemic and a war didn’t persuade global businesses to strengthen their own supply chains, this Shanghai shutdown might. Chinese citizens have no choice but to obey their government and its robo-dogs. But multinational companies have options — and a growing list of reasons to reduce dependence on China.

The biggest city in China is locked down — and the groaning supply chain is about to feel it

Levi’s bet on direct-to-consumer denim and personalized fit is paying off

Half of US streaming users feel overwhelmed by the deluge of programming on streaming services — but 90% have no plans to cut back

👖 Levi’s pricing power

__Red shirts & green jackets...__ 25 years after his first Masters victory, Tiger Woods is teeing up once again to compete in the Super Bowl of golf tourneys today. The return of the five-time champ made headlines, especially after a serious car accident almost cost him a leg a year ago. But that’s not the only reason: Tiger, who’s famously sponsored by __[Nike](https://robinhood.com/stocks/NKE)__, was spotted [practicing](https://www.axios.com/tiger-woods-shoes-masters-nike-footjoy-211463ac-1852-4eeb-a44f-2ed37e77c1db.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiossports&stream=top) in a pair of rival brand FootJoy shoes this week. Why it matters:

- __In 1996:__ Nike turned heads when it signed the still unknown 20-year-old to a sponsorship deal worth a then eye-popping record $40M (nearly $73M in today’s money).
- __Today:__ Tiger’s made over half a billion dollars rocking Nike polos, hats, and shoes ever since. He’s still a Nike athlete, and [said](https://sports.yahoo.com/tiger-woods-explains-ditching-nike-shoes-for-foot-joy-at-masters-190038857.html) he chose the FootJoys to help with his post-accident mobility. 
- __FYI:__ FootJoy is owned by golf-merch company __[Acushnet](https://robinhood.com/stocks/GOLF)__. The stock popped 3% after Tiger was seen in its kicks.

__Splashy sponsorships…__ Star athletes' astronomical salaries are nothing new, but playing isn’t usually their primary source of income. Endorsement deals [made](https://www.businessinsider.com/athletes-endorsements-nba-golf-tennis-2019-6#tiger-woods-made-97-of-his-earnings-from-endorsements-5) up nearly all of Woods' [$800M](https://www.lifeandstylemag.com/posts/what-is-tiger-woods-net-worth-inside-his-massive-fortune/) net worth in 2019. In return, brands get to borrow celebrity status to build credibility and rack up fans. At the 2019 Masters, Nike got [$22M](https://www.cnn.com/2019/04/15/media/tiger-woods-nike-ad/index.html) worth of exposure just from Tiger’s come-from-behind Sunday win alone.

Tiger just doing it at the ’97 Masters (Stephen Munday/Allsport/Getty Images)

Green

__The post-endorsement era is coming…__ While athlete sponsorships aren’t going away, big-name players don’t necessarily need brands anymore the way brands need them. The kind of Nike mega-deals pioneered by Michael Jordan and Tiger Woods are no longer inevitable for top players. See: fellow GOAT Tom Brady, who’s leveraging his social-media following to [create](https://www.forbes.com/sites/andyfrye/2022/01/12/tom-brady-unveils-his-namesake-apparel-brand/?sh=3e7c71da1105) his own apparel line. Tiger's FootJoy-clad feet could also signal the dwindling power of official sponsors.

Tiger returns to the Masters — but his sponsor Nike may be losing influence in the post-endorsement era

__Flight costs $40…__ carry-on + sandwich costs $400. This week __[JetBlue](https://robinhood.com/stocks/JBLU)__ made a $3.6B [offer](https://www.wsj.com/articles/jetblue-offers-to-buy-spirit-in-all-cash-deal-11649191019?mod=hp_lista_pos4) to buy budget airline __[Spirit](https://robinhood.com/stocks/SAVE)__, topping the $2.9B bid [made](https://snacks.robinhood.com/newsletters/1I3jIJQkqK0ygv51yekmCQ/articles/V8eaYxPExXyVEX2Vdr6Jz/) by rival __[Frontier](https://robinhood.com/stocks/ULCC)__ in February. Awkward, since Spirit and Frontier had [already agreed](https://snacks.robinhood.com/newsletters/1I3jIJQkqK0ygv51yekmCQ/articles/V8eaYxPExXyVEX2Vdr6Jz/) to a merger that would’ve created a budget behemoth. Spirit said its board would discuss the offer before accepting either bid. 

- __JetBlue says__ its offer is best for investors, at a 37% premium over Frontier’s. JB wants to spruce up Spirit planes and add ’em to its fleet, not run a separate carrier.
- __Frontier says__ a JB merger would boost flight prices and reduce options for fliers, since the airlines have similar routes. 
- __Odd couple:__ Analysts [called](https://www.cnbc.com/2022/04/06/why-jetblue-is-willing-to-shell-out-3point6-billion-for-discount-airline-spirit.html) the bid a “headscratcher” because JetBlue is known for perks like free Terra chips while Spirit is known for free nothing. JB also offers a business-class tier, while Spirit… doesn’t.

__Spirit in the sky…__ needs a companion. Four carriers dominate the US airline industry: __[American](https://robinhood.com/stocks/AAL)__, __[Delta](https://robinhood.com/stocks/DAL)__, __[Southwest](https://robinhood.com/stocks/LUV)__, and __[United](https://robinhood.com/stocks/UAL)__ control 80% of domestic flights. But headwinds are now forcing smaller airlines to merge to survive: 

- __Not enough pilots:__ A [shortage](https://airlineweekly.com/2022/03/the-u-s-pilot-shortage-may-not-peak-until-2023/) has caused costs to [soar](https://thepointsguy.com/news/pilot-shortage-pay-raise-avelo/) for smaller airlines and resulted in hundreds of canceled flights.
- __Not enough gates:__ Gates at major hubs like ATL are often reserved for the Big Four, which makes it hard for smaller airlines to add new routes.
- __FYI:__ President Biden’s antitrust [crackdown](https://www.whitehouse.gov/briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/) is targeting airlines, and that could ground *either* merger.

Tarmac

__In sight, in mind…__ Presence is key for airlines and reminds consumers that they exist. You can’t book your LA weekend with an airline that doesn’t have gates at LAX. JetBlue and Frontier need access to more gates to expand into new markets. But they can’t buy gates — at least not directly. That’s why they’re willing to pay a premium for Spirit: it’s an *indirect* way to buy gates at major airports, a scarce resource they both need.

JetBlue outbids Frontier with a $3.6B offer for Spirit, because both airlines need gates to grow

Tiger Woods returns to the Masters — and his sponsor Nike may be losing influence

Roblox is offering this year’s highest-paid internships, with interns raking in nearly $10K/month

⛳ The Tiger Effect

__Got my (electric) driver's license last week...__ but these two won't be driving alone past your street. __[Honda](https://robinhood.com/stocks/HMC)__ and __[GM](https://robinhood.com/stocks/GM)__ are [teaming up](https://www.cnbc.com/2022/04/05/gm-and-honda-to-partner-on-affordable-electric-vehicles.html) to develop EVs for under $30K — even cheaper than GM's upcoming $30K electric Chevy. EVs at those prices are virtually unheard of, but GM and Honda want to start cranking out millions by 2027.

- __Plugged in:__ The compact SUVs will use GM’s next-gen Ultium battery tech that’s the base for its electric Hummer. GM [says](https://snacks.robinhood.com/newsletters/3W8LX1jIAswA4HFNTbvVHO/articles/vdFCNmlM6aWPfSxbASbFe/) Ultium can get up to 450 miles/charge at 40% less cost than its current batteries.
- __Partnered up:__ The collab will yield new EVs for both GM and Honda, expanding on their existing electric partnership (GM already made two EVs for Honda).

__Chev-EV...__ As policymakers and consumers lean into green tech, GM, __[VW](https://robinhood.com/stocks/VWAGY)__, and other gassy OGs are investing billions in an electric future. Even Honda, which has focused more on hybrids, is pivoting to all-electric. Two ways to gain an edge over industry leader __[Tesla](https://robinhood.com/stocks/TSLA)__: de-luxify EVs and boost battery range.

- __Price anxiety:__ EVs are still much pricier than their gas cousins. A new electric model costs $60K, on average — $15K more than new cars generally.
- __Range anxiety:__ Road trips can be sweat-inducing when you’re far from a charging station, while gas pumps populate every exit.

The EV 1% (VCG/Getty Images)

De-luxe

__Priced out = iced out…__ EV makers are still iced out by consumers, because they’ve *priced out* consumers. Despite increasing adoption, fewer than [1%](https://graphics.reuters.com/AUTOS-ELECTRIC/USA/mopanyqxwva/) of the 250M cars on US roads are electric. Most Americans aren’t ready to buy an EV yet, [citing](https://www.greencarreports.com/news/1134702_americans-dont-want-ev-yet-half-wont-pay-extra-for-electrified) price as a main concern. A recent Axios [poll](https://www.axios.com/axios-momentive-poll-young-people-are-the-biggest-techno-optimists-90b7aaca-1aac-406e-8f37-3aa48142d620.html) found that 7 in 10 young adults would buy an EV if they could afford one. By developing lower-priced EVs at scale, GM and Honda could tap into an iced-out market. 

GM and Honda partner on sub-$30K electric cars in a push to bring EVs mainstream

__Shoot for the moon…__ Even if you miss, you’ll land among the __SpaceX__ satellites. Yesterday __[Amazon](https://robinhood.com/stocks/AMZN)__ [announced](https://www.wsj.com/articles/amazon-to-spend-billions-on-space-launches-as-spacex-ramps-up-satellite-internet-service-11649156400?mod=business_lead_pos1) the biggest rocket deal in commercial space history. The goal: bring on partners to help launch thousands of satellites that beam WiFi across the globe. 

- __The mission:__ Amazon’s Project Kuiper plans to send thousands of internet satellites into orbit in 83 rocket launches over the next five years (and will spend billions to do it).
- __The crew:__ The Zon’s tapped three rocket-makers: United Launch Alliance (run by __[Boeing](https://robinhood.com/stocks/BA)__ and defense giant __[Lockheed Martin](https://robinhood.com/stocks/LMT)__), French biz __Arianespace__, and of course Jeff Bezos’ __Blue Origin__. 
- __The countdown:__ Amazon got Uncle Sam’s permission in 2020 to launch 3K+ satellites. But there’s a catch: if half of those aren’t live by 2026, it [loses](https://www.theverge.com/2020/7/30/21348768/fcc-amazon-kuiper-satellite-constellation-approval) its license.

__There’s a new space race…__ and it’s centered on earthly WiFi, not Martian colonies. A third of the world’s population still [doesn’t](https://www.washingtonpost.com/world/2021/12/01/global-internet-usage/) have internet access. One solution: small, low-orbiting satellites that send broadband to remote locations, and do it without the latency issues that satellite internet is known for.

- __Head start:__ SpaceX-owned Starlink has already [launched](https://www.space.com/spacex-starlink-satellites.html) 2K satellites that serve 250K customers, and has approval for 10K more.
- __Crowded skies:__ But competitors like __Astra__, __OneWeb__, __Intelsat__, and Amazon have [submitted](https://www.cnbc.com/2021/11/05/space-companies-ask-fcc-to-approve-38000-broadband-satellites.html) plans to launch 38K of their own.

Hotspot

__Amazon already had the rocket fuel…__ Now it’s got the rockets. This won’t be the Zon’s first time blasting off into a new industry: the corporate behemoth has already successfully leveraged its size and scale to enter grocery, cloud computing, streaming, and healthcare. It may not have a head start with satellites, but its cash, customers, and infrastructure give it an edge in any space.

Amazon signs a huge rocket deal to bring satellite internet worldwide, sending the space race into a new orbit

There are 329 fewer billionaires than there were last year, as sanctions hit Russian oligarchs — it’s the biggest billionaire drop since ’09

🔌 Cheap EVs 

__#ICYMI…__ Twitter’s favorite CEO-lebrity is now its biggest shareholder. Two weeks ago Elon Musk [asked](https://twitter.com/elonmusk/status/1507259709224632344) his 80M followers whether Twitter was doing a good job supporting free speech: 70% of respondents said no. Yesterday an SEC filing [revealed](https://www.cnbc.com/2022/04/04/twitter-shares-soar-more-than-25percent-after-elon-musk-takes-9percent-stake-in-social-media-company.html) that the __[Tesla](https://robinhood.com/stocks/TSLA)__ and __SpaceX__ CEO had owned a big chunk of Twitter shares at the time of the poll.

- __Musk now owns__ over 9% of Twitter shares — quadruple that of cofounder Jack Dorsey. 
- __Passive activist:__ Elon’s stake is less than a 10th, and he’s technically not an “activist” investor. But it doesn’t mean he can’t influence Twitter’s price. 
- __Exhibit A:__ Twitter shares jumped nearly 30% on word of Elon’s purchase.

__Itchy Twitter finger…__ Elon has [called](https://twitter.com/elonmusk/status/1507777261654605828) Twitter a “de facto public town square,” and he’s famously loud in that square: he [tweeted](https://www.visualcapitalist.com/a-decade-of-elon-musks-tweets-visualized/) 3K+ times last year. In just the past month, he posted memes of ducks in police cars, “Lord of the Rings” quotes, and that poll about the future of free speech. But tweets have also landed the Technoking in hot water:

- __Tweet-trouble:__ The SEC accused Elon of [fraud](https://twitter.com/elonmusk/status/1026872652290379776) in connection with breaking securities laws on Twitter (think: the infamous 420 [tweet](https://twitter.com/elonmusk/status/1026872652290379776)), which resulted in $20M penalties for both Elon and Tesla.

Send tweet (Odd Andersen/AFP/Getty Images)

__Seats speak louder than tweets…__ The Tesla titan looks more interested in *influencing* Twitter than owning or profiting from it. As the world’s richest man, Elon could buy Twitter seven times over if he wanted. But since Twitter doesn’t have “supershares” that give founders voting control — unlike __[Google](https://robinhood.com/stocks/GOOGL)__, __[Meta](https://robinhood.com/stocks/META)__, and __[Snap](https://robinhood.com/stocks/SNAP)__ — some analysts are [speculating](https://fortune.com/2022/04/04/elon-musk-twitter-stake-activist-role-board-seat-wedbush/) that Elon’s relatively small stake could lead to a seat on the board. Translation: Elon may have found a way to demand change at the platform he loves to hate even more loudly than before.

Elon is now Twitter’s biggest shareholder, and the web’s “town square” could be in for an overhaul

__Don’t call it a comeback…__ Longtime __[Starbucks](https://robinhood.com/stocks/SBUX)__ CEO Howard Schultz is taking back the reins as (interim) chief exec this week — his third time in the gig — and he’s already brewing up big changes. First order of business: halting stock buybacks. (Flashback: former CEO Kevin Johnson [pledged](https://www.bloomberg.com/news/articles/2021-10-28/starbucks-pledges-20-billion-in-payouts-as-sales-miss-estimates) $20B in new buybacks and dividends as recently as in October.) Starbucks posted [record](https://www.seattletimes.com/business/starbucks-posts-record-quarterly-sales-thanks-to-us-business/#:~:text=Robust%20U.S.%20business%20takes%20Starbucks,last%20year's%20pandemic%2Dbattered%20level.) sales last year as you splurged on venti chai lattes, but the world's largest coffee biz has been struggling with rising supply costs and overwhelmed, unhappy baristas: 

- __Starbucks’ flagship Reserve Roastery__ in NYC just became the ninth location to unionize. Another 140 stores have filed for union recognition. 
- __Starbucks has spent $1B__ over the past two years to boost employee wages and incentives — including a new starting wage of $17/hour — but some workers say it isn’t enough.

__A new era for unions…__ Starbucks isn't the only biz in the middle of a rising labor movement. Last week __[Amazon](https://robinhood.com/stocks/AMZN)__ lost a historic fight after NYC warehouse workers voted to form the company's first US union. A tight labor market has spurred demand for higher wages and stronger benefits, and brought union popularity to its [highest](https://snacks.robinhood.com/newsletters/7CtuLmgMuoMjI0OwUeBMCf/) level since 1965. And it’s even gaining momentum in the famously union-averse food biz.

Steam

__There are three big ways to spend your spoils…__ when you’re a profitable public company: (1) give it back to shareholders through dividends and buybacks, (2) reinvest in the biz (think: acquisitions and salary hikes), or (3) pay down debt. Starbucks is moving away from an investor-first mentality to one more focused on workers — a sign the company sees the resurging labor movement as more than a passing trend. But it’s a risky time to pivot from a tried-and-true formula that makes investors happy: Starbucks shares are [down](https://www.cnbc.com/2022/04/04/why-starbucks-shareholders-are-taking-the-buyback-suspension-so-hard.html) 20%+ so far this year.

Schultz returns to Starbucks, suspending share buybacks in a pivot to focus on restless employees

Elon is Twitter’s biggest shareholder, and he might ruffle some feathers on its board

White-collar workers are spending 250% more time in meetings than they were pre-pandemic

🐦 Elon goes shopping

__Taxes 101…__ a class we wish we'd taken. The pandemic + soaring prices have stressed American wallets, highlighting the importance of financial literacy (think: saving, budgeting, investing). Layoffs left millions struggling to afford childcare and rent, and 1 in 10 families [had](https://www.cnbc.com/2020/09/10/1-in-10-americans-are-struggling-to-afford-enough-food-during-pandemic.html) difficulty stocking fridges. Meanwhile, stimmy payouts padded savings and sparked a surge in young retail investors. Now:

- __Money is the second-most__ [discussed](https://www.forbes.com/sites/christinecarter/2022/03/31/survey-gen-z--gen-alpha-place-high-importance-on-financial-literary-just-like-their-parents/?sh=1f9f1ec832b5) topic for parents and teens (after Covid) as high food and gas prices eat into family budgets.
- __93% of teens believe__ financial knowledge is crucial to achieving their life goals, yet [most](https://www.financialeducatorscouncil.org/national-financial-literacy-test/) 15-to-18-year-olds fail basic fin lit tests.
- __The financial literacy deficit__ [cost](https://www.prnewswire.com/news-releases/survey-results-shortfalls-in-financial-literacy-cost-americans-352-billion-in-2021-301458429.html) Americans $350B last year (think: overdraft fees, high-interest loans).

__Whiteboards & wallets...__ High school often marks a transition from summers scooping ice cream to financial independence — but [more](https://jaheartland.org/new-research-shows-majority-of-teens-feel-unprepared-to-finance-their-futures/#:~:text=(Moline%2C%20IL)%20%E2%80%93%20After,from%20Junior%20Achievement%20and%20Citizens.) than half of teens feel unprepared. For college students, poor money management skills can lead to maxed-out credit cards, late bills, and dropped degrees. Now lawmakers are stepping in:

- __Last year:__ Half of states proposed bills requiring personal finance courses in high school — a trend accelerated by Covid and [record](https://www.cnbc.com/2021/09/09/america-has-1point73-trillion-in-student-debtborrowers-from-these-states-owe-the-most.html) student loan debt.
- __Last month:__ Florida [became](https://www.cnbc.com/2022/03/23/florida-becomes-largest-state-to-mandate-personal-finance-education-.html) the largest state to mandate that all high school students   take a personal finance class to graduate. 
- __This year:__ A record 25% of US high schoolers are expected to take a personal finance course before graduation, up from 20% last school year.

Making cents of the fin lit problem (J Studios via Getty Images)

FinLit

__Financial literacy is an investment…__ in future stability. Early money management skills [can](https://papers.carlyurban.com/TeacherSurvey_brief.pdf)  lead to better credit scores, lower debts, and higher savings down the road. Some experts even say parents should start teaching kids about money as [early](https://www.cnbc.com/select/teaching-children-about-credit/#:~:text=Behavioral%20researchers%20from%20Cambridge%20University,at%20every%20stage%20of%20childhood.) as preschool. But financial literacy is more [likely](https://www.nytimes.com/2021/04/02/your-money/financial-literacy-courses.html) to be taught in wealthier districts. Equitable financial education could empower the next generation  and help bridge America's wealth gap.

The pandemic exposed America’s financial literacy gap — now lawmakers want $$ management to start in the classroom

__Ameri-canna milestone...__ On Friday, the House [passed](https://www.cnbc.com/2022/04/01/house-to-vote-on-bill-to-legalize-marijuana.html) legislation that would legalize marijuana nationwide and scrap criminal penalties for pot-related activities (feat. an 8% tax on cannabis sales). While recreational weed is legal in 18 states, marijuana is still an illegal Schedule I drug at the federal level (along with LSD and heroin). Now the bill heads to the Senate, where it [faces](https://www.newsweek.com/marijuana-decriminalization-bill-passes-house-heads-senate-1694288) an uphill battle. Big pot companies need federal legalization to grow, but they weren't feeling the buzz: shares of __[Tilray](https://robinhood.com/stocks/TLRY)__, __[Aurora](https://robinhood.com/stocks/ACB)__, and __[Canopy Growth](https://robinhood.com/stocks/CGC)__ all dipped.

__Workers have union dues...__ America's second-largest employer has union blues. __[Amazon](https://robinhood.com/stocks/AMZN)__ workers at a NYC warehouse [voted](https://www.wsj.com/articles/amazon-workers-in-new-york-vote-to-form-tech-giants-first-u-s-union-11648831151) to unionize on Friday, establishing Amazon's first US union. Last year, Amazon [won](https://snacks.robinhood.com/newsletters/7CtuLmgMuoMjI0OwUeBMCf/articles/33FGeI4OGeSbCzNjbOSQr8/) a labor battle when Alabama workers voted *not* to unionize. Amazon has fought against unionization (think: "Vote No" bathroom [flyers](https://www.cnbc.com/2022/04/01/amazon-workers-in-staten-island-vote-to-unionize.html)) and wants the power to quickly hire/fire workers and set hours/wages. But Amazon has been heavily criticized for its treatment of workers. It’s a landmark victory for organized labor that could threaten the Zon’s supremacy.

__Skinny jean nostalgia...__ in a mom jean era. Wall Street's blue-jean baby __[Levi Strauss](https://robinhood.com/stocks/LEVI)__ unzips earnings on Wednesday. Levi's most recent earnings were a solid improvement from 2020, when WFH sweats replaced denim. Last year, Levi's sales were up 29% while profit 6X'd as it focused on high-margin direct sales (think: Levi's site vs. [Nordstrom's](https://robinhood.com/stocks/JWN)). While the leggings life is still thriving ([see](https://www.marketwatch.com/story/lululemon-stock-jumps-after-reporting-6-billion-in-annual-sales-for-the-first-time-forecasting-more-growth-11648585687): __[Lulu](https://robinhood.com/stocks/LULU)__ earnings), Levi's is tapping into the soft-pant trend with looser, stretchy fits. We'll see if Gen Z’s love of high-waisted baggy jeans helped Levi's growth.

__Inflation in aisle 5…__ Pantry powerhouses like __[Kraft](https://robinhood.com/stocks/KHC)__ and __[Kellogg](https://robinhood.com/stocks/K)__ have hiked prices as costs surge. Now shoppers are snagging what they can afford, even if it means [ditching](https://www.wsj.com/articles/why-the-american-consumer-is-switching-brands-more-than-ever-11648555251?mod=hp_lista_pos1) name brands for cheaper private labels. According to a mid-pandemic [survey](https://www.daymon.com/wp-content/uploads/2020/08/Daymon-PB-Intelligence-Report-2020.pdf), 70% of US shoppers said they’d tried new brands during Covid. It’s a worrying sign for household names that depend on consumer loyalty. We’ll get a peek at how some are doing this week when __[Conagra](https://robinhood.com/stocks/CAG)__ (Banquet pizza, Reddi-Wip), __[Simply Good](https://robinhood.com/stocks/SMPL)__ (Quest Bars), and __[Constellation](https://robinhood.com/stocks/STZ)__ (Corona, Modelo) all report.

- __[Tap](https://snacks.robinhood.com/newsletters/3RR5q8SXnbN0gmtGDTckMU/):__ President Biden will release a record 180M barrels from the strategic petroleum reserve over the next six months in a push to pump the brakes on soaring gas prices – but relief may be capped.
- __[W-2](https://snacks.robinhood.com/newsletters/5c1ov5mPyllDBQuH9iy5S5/):__ The FTC sued __[Intuit](https://robinhood.com/stocks/INTU)__, the financial software powerhouse behind TurboTax, claiming TurboTax’s “free” filing ads are “deceptive.” The FTC says most US taxpayers didn’t qualify for its free offering last tax year.
- __[Gold](https://snacks.robinhood.com/newsletters/2Bc4NhkgCxLnebOfphcUTk/):__ __[Apple](https://robinhood.com/stocks/AAPL)__ became the first streamer to win Best Picture at the Oscars with its indie drama “CODA.” Since 2019, Apple TV+ has taken on __[Netflix](https://robinhood.com/stocks/NFLX)__ with a less-is-more strategy of highly-curated premium content.

Lawmakers push money education in schools to fix the financial literacy gap

Fewer than half of Americans have enough savings to cover a $1K surprise expense

💸 The future of financial literacy

__Let it flow…__ The White House is heading back to the country’s emergency oil stockpile, in a push to pump the brakes on soaring gas prices that have Americans fuming (FYI: it’s an election year). President Biden [authorized](https://apnews.com/article/russia-ukraine-biden-business-europe-3e1808077371b88ae043c86584763afd) tapping 1M barrels/day from the strategic petroleum reserve for six months (total: 180M barrels). It’s the largest release ever, and the third time the SPR has been tapped in the last six months. Refresher:

- __Sweet:__ Just like Canada keeps a strategic maple syrup reserve (#[priorities](https://www.reuters.com/lifestyle/oddly-enough/quebec-unlocks-worlds-only-maple-syrup-strategic-reserve-keep-pancake-lovers-2021-12-07)), the US [has](https://www.energy.gov/fecm/strategic-petroleum-reserve-4) four underground sites along the Gulf Coast with capacity to store 700M+ barrels of oil. 
- __Sour:__ The SPR was created in 1975, during another global oil crisis. Presidents have hit up the SPR a couple [dozen](https://www.reuters.com/markets/commodities/when-have-united-states-others-previously-released-oil-reserves-2021-11-23/) times since then, mostly after supply-disrupting events like hurricanes or war. 

__Insatiable appetite…__ The US consumes 20M barrels of oil every day. Adding 1M barrels to the daily supply could lower crude prices, which would trickle down to the pump. But it’s not a sure bet: oil prices are set on complex global futures markets, and many analysts [expect](https://www.bloomberg.com/news/articles/2022-03-31/what-a-sizable-u-s-oil-release-may-mean-for-energy-markets?sref=px9VEDa6) any dips to be temporary. When Biden last released 50M barrels from the SPR, it barely budged the price of crude. Tapping it again could bring short-term relief to consumers, which could help Dems in November.

__Oil doesn’t grow on trees…__ While Russia’s war in Ukraine is aggravating the oil crunch, oil anxiety started early in the pandemic when demand collapsed, driving down prices. US oil producers got burned and have exercised restraint ever since, pressured by investors to maintain “[capital discipline](https://www.axios.com/wall-street-oil-execs-a3cdaa1b-6839-448c-a5fb-2697b0a0c77b.html)” (read: drill less, reinvest more). Surging prices give oil companies an incentive to drill more. But drillers are still reluctant, and would take months to ramp up.

Biden is ordering the largest-ever release from the US’ oil stockpile, but Pump Anxiety relief might be limited

__Life is a highway...__ or a race track. NASCAR driver Ricky Bobby hated Formula 1 in “Talladega Nights,” but Americans are loving it. That's why F1 just [added](https://apnews.com/article/sports-las-vegas-united-states-north-america-formula-one-f37caf2fea9e83ad17efbcc7115007f8) a race in Vegas that’ll debut in November 2023.

- __Fast:__ The 3.8-mile street course will run along the Vegas Strip, passing landmarks like Caesars Palace and the Bellagio Fountain (top speed: 212 mph).
- __Furious:__ Vegas will be F1’s third race in the US — that’s [more](https://huddleup.substack.com/p/formula-1-is-headed-to-the-las-vegas-0a4?s=r) F1 races than any other country. F1's other US Grand Prix's are in Austin and Miami.
- __Too fast, too furious:__ F1′s first race in Miami this May sold out in a day. The GP in Austin last year had 400K+ fans — the most-attended race in F1's 70-year history.

__NASCAR has #StreamEnvy…__ so does IndyCar. The US has become F1's fastest-growing market, largely thanks to __[Netflix](https://robinhood.com/stocks/NFLX)__. Interest in F1 has soared since Netflix's docuseries “F1: Drive to Survive” premiered in 2019.

- __Rewind to 2016:__ __[Liberty Media](https://robinhood.com/stocks/FWONK)__, the public company that owns the Atlanta Braves and SiriusXM, bought Formula 1 for $4.4B.
- __Back then,__ F1 had 100M global viewers per race — but US interest was weak, F1 was under-monetized, and fans skewed older.
- __New strategy:__ Slick [marketing](https://motorsports.nbcsports.com/2022/03/31/f1-three-races-america-2023-las-vegas-austin-miami/) with a focus on young Americans boosted F1’s US fanbase and made it the fastest-growing major sport on social media.

Vroom

__If you wanna go big, go broad…__ F1 used to be seen as a Euro-centric luxury sport for the wealthy (think: Rolex ads, races in Monaco). But one Netflix series and a strategy shift later, F1 fans are [younger](https://uk.motor1.com/news/542371/formula1-study-fans-younger-diverse/) and more diverse (average age: 32). By focusing on US expansion, Liberty Media is accessing an economy that’s 6-7X larger than any European country. And Liberty’s Formula One Series C shares are up 60% in the past year.

Formula 1 racing is gaining major US traction thanks to Netflix, Vegas, and younger marketing

Biden taps strategic oil reserves to bring down gas prices, but relief might be capped

Turning red over gas prices (Robert Gauthier/LA Times via Getty Images)

A fifth of US workers say they’re running out of money between paychecks, up 5% from last year