It's finally here
MARKETS
- U.S. markets: D.C. is abuzz with the Mueller report, but up here on Wall St. investors also have their hands full. Part of the yield curve inverted on Friday (a reliable recession indicator) and there are too many upcoming techIPOsto count.
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MEDIA
It's Show Time for Apple
The quick version: Apple is expected to launch its original content and streaming video services today.
The long(er) version
Sorry to break it to you, but this isn't exactly the Apple vs. Netflix pay-per-view you ordered. This is Apple vs. every other third party selling video subscription services.
Netflix has carved a name for itself creating bingeworthy original content (that'll cost $15 billion this year). But for all the star power Reese Witherspoon and Jennifer Aniston bring to Cupertino, Apple's original content is more like the cherry on top of the sundae.
The sundae-at least for now: using Reese & Co. to get users on the platform, then selling those users subscriptions to premium services like HBO, Showtime, and more, all while taking a cut.
- It could work. Apple's already got more than 1 billion devices across the globe (compared to Netflix's 139 million subscribers worldwide). In the biz they call that owning the pipes.
You're looking at the Amazon model
Since its 2015 launch, Amazon Prime Channels has capitalized on existing customer relationships. It's a lot easier to click "purchase now" on a 12-month HBO deal when Amazon already has your billing info on file.
- One crazy stat: The Diffusion Group estimated Amazon was responsible a year ago for 55% of all standalone video subscriptions.
So what makes Apple's different?
According to Recode, Apple is expected to create a new storefront on the upcoming service that will streamline buying TV subscription apps. Instead of scrolling through streaming apps in a crowded App Store, all your shows will be in one convenient spot.
Plus, Apple is widely expected to offer its own bundles of premium services like Showtime, HBO, and Starz to its 1.4 billion users at lower price points than you'd pay for each individually.
Who's notably sitting out the bundle? You might've figured it out by now...Netflix.
MEDIA
When It Comes to the Apple Event, Speculate Responsibly
Apple's Hollywood play just goes to show, you can make one of the most successful devices in the history of humankind...but if you don't have a Queer Eye reboot, you're losing ground.
What we think we know
- Original video content: Five series have wrapped up filming, and about six others are finishing production, reports the NYT. Top Hollywood talent includes Octavia Spencer, Steven Spielberg, and the Always Sunny
- News subscriptions: Apple will likely reveal a service that bundles news and magazines together for a flat monthly fee. The WSJ and Vox are reportedly on board.
- Bundles: See above.
What we know we don't know
- Pricing and
- Will the content be exclusive to Apple devices?
- Will we get more info about a credit card with Goldman Sachs?
- Any news on a video games subscription?
What we know we know
This event, which puts the exclamation mark on Apple's shift to services, is one for the history e-book subscriptions.
INTERNATIONAL
You Do You, Italy
On Saturday, Italy shrugged off peer pressure and became the first country in the G7-a group of seven major world economies-to join China's "One Belt One Road" project.
One Belt One Road 101:
- China wants to be the world's construction company. Through building ports, highways, railroads, and pipelines across the globe, it hopes to spread its economic and political influence.
- It's now got 124 countries on board with the project. But Italy, as a gateway to Europe, might be the most strategic yet.
Italy's goal: to export more goods to the Chinese market. "There is a lot of 'Made in China' coming to Italy and too little 'Made in Italy' that goes to China," Italy's economic development minister said. He must not know about all the Pizza Huts in Shanghai...
Zoom out: The U.S. and other European countries, alarmed at the growing power of China, can hardly believe Italy is getting cozy with Beijing.
CANNABIS
Legal Weed Drama
We spent the weekend suffering through Orange Vanilla Coke commercials. New Jersey Gov. Phil Murphy spent the weekend enlisting support for the legalization of marijuana in his state.
NJ lawmakers are expected to vote today on whether it'll become the 11th state to legalize recreational weed, but the increasingly complicated measure could hit a wall.
- As of Saturday night, NJ's Democratic-controlled state Senate was short a handful of votes needed to pass the bill.
- NJ supporters have promised legalization would bring the $50 billion national legal weed industry to NYC's doorstep. Detractors aren't sold on the risks.
Plus, on Tuesday, the U.S. House Financial Services Committee is scheduled to vote on the SAFE Act-which would permit commercial banks to offer services to weed companies compliant with state law.
Zoom out: Yea or nay on this week's legislation, cannabis compounds are everywhere. Just last week, CVS struck a deal with Curaleaf Holdings to get cannabis-infused products on shelves at 800+ CVS stores.
CALENDAR
The Week Ahead
Q1 saved the best week for last.
Monday: Apple event; earnings (Red Hat)
Tuesday: Housing starts; consumer confidence; earnings (Carnival, FactSet, IHS Markit)
Wednesday: Senate hearing on aviation safety; international trade; earnings (Lululemon, Vale, Lennar, Five Below)
Thursday: GDP; jobless claims; earnings (Accenture); March Madness continues; opening day for the MLB
Friday: Lyft's IPO; consumer sentiment; PCE data; earnings (CarMax, BlackBerry)
什么正在酝酿之中
- Hundreds of passengers were airlifted to safety from a Viking Sky cruise ship off the coast of Norway. The ship had engine problems and encountered bad weather.
- Uber could announce a $3.1 billion deal to acquire Middle East rival Careem as early as this week, reports Bloomberg.
- Jordan Peele's Us scared scored $70.3 million at the domestic box office this weekend. It's the third-biggest opening for a horror movie ever.
- The Powerball jackpot now stands at $750 million. Your likelihood of winning in the Wednesday drawing? Roughly 1 in 292.2 million. So you're saying there's a chance...
- Uber and Lyft drivers plan to strike in L.A. today to protest an Uber pay cut.
BREAKROOM
Greater Than, Less Than, or Equal to
- Netflix subscribers globally // Population of Russia
- Number of Americans 18-34 without a steady romantic partner // 51%
- Harvard University endowment // Endowments of MIT + UPenn
- Corporate tax rate in the U.S. // Average corporate tax rate in Europe
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Breakroom Answers
Greater Than, Less Than, or Equal to
1. Less than 2. Equal to 3. Greater than 4. Greater than
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