🐂 Astroturfed

Markets

Stock markets experienced a mixed performance yesterday as investors sought insights into the Federal Reserve's future actions following the release of the latest Consumer Price Index data. This report revealed that inflation had increased beyond expectations last month, even when excluding the significantly elevated gas prices.

Gasoline Price Jump Boosted Retail Sales in August

Increased gasoline prices played a significant role in driving up U.S. retail sales last month, with consumers also moderately increasing their spending on various other products.

According to the Commerce Department's report on Thursday, retail sales, which encompass spending at physical stores, online retailers, and restaurants, saw a 0.6% seasonally adjusted rise in August compared to the previous month. This marks the fifth consecutive month of positive retail sales growth.

The surge in spending was primarily attributed to higher prices at the pump. If we exclude gasoline from the equation, retail sales for August showed a 0.2% increase. In August, the average cost of a gallon of regular gasoline was $3.84, up from $3.60 in July, as reported by OPIS, an energy data and analytics provider. Gas prices have remained relatively stable throughout September.

Additionally, consumers increased their expenditures at electronics and appliance stores, as well as clothing retailers, coinciding with the back-to-school season. Despite the challenges posed by higher interest rates and rising prices in the automobile market, people continued to spend more at car dealerships.

This uptick in spending during August extends the trend of positive economic activity in the United States. Robust job and wage growth continue to attract more individuals into the workforce.

Food & Bev

Pour one out: Surge Pricing Hits Beer

It's a clear indication that nothing remains immune during times of high inflation: Stonegate Group, Britain's largest pub company, recently made headlines by introducing surge pricing at 800 of its establishments across the UK.

These pubs have prominently displayed notices politely warning patrons about increased prices during peak hours, as reported by the Telegraph. The price adjustments, which can reach an extra 20 pence for a pint of beer, are intended to offset rising costs associated with staffing and licensing requirements, as explained by Stonegate. This decision to implement dynamic pricing comes on the heels of Stonegate reporting a £28.7 million loss for the first half of the year, attributed to the UK's escalating cost-of-living crisis.

Despite the fact that beer prices at Stonegate venues decrease after peak periods, the backlash was swift and severe. The Campaign for Real Ale, a consumer advocacy group, criticized the policy as an "unhappy hour surge" and suggested it could discourage customers who rely on pubs as affordable social venues. Other pub owners capitalized on Stonegate's negative publicity by declaring their intention to maintain their existing pricing structures.

However, this practice of surge pricing extends beyond the realm of pubs.

Airlines and hotels have employed surge pricing for years, but when this revenue strategy is applied to other industries, it doesn't always yield favorable results:

• In July, AMC announced it would abandon its attempt to implement higher prices for more sought-after seats after testing out the surge pricing model. The results showed that it did not significantly impact revenue but did frustrate moviegoers.

• Lyft is actively working to eliminate its surge pricing feature because it has been found to reduce demand and is vehemently disliked by riders, according to CEO David Risher.

• Ticketmaster has faced considerable criticism for its dynamic pricing, which has resulted in the sale of highly coveted Bruce Springsteen tickets for as much as $4,000.

In the broader context, despite consumer dissatisfaction, companies armed with algorithms and a drive to maximize revenue are likely to continue finding new areas of life where surge pricing can be applied.

Entertainment

T Swift Media gets her own beat

Gannett, the largest newspaper company in America, is currently in the process of hiring a reporter dedicated solely to covering Taylor Swift. Perhaps LinkedIn should consider offering a certification for those who passionately theorize about the "Gaylor" phenomenon on TikTok, to assist the overwhelmed hiring manager who is likely inundated with resumes.

It's relatively unusual for an entertainment reporter to exclusively cover a single artist, but Gannett-owned publications, The Tennessean and USA Today, are actively seeking two such reporters. Following the viral posting of the dream job for Swifties on Tuesday, the media company also announced its intention to hire a reporter to cover the Beyoncé beat.

Both of these hourly positions involve international travel and offer salaries ranging from approximately $40,000 to $100,000 annually. While these specialized beats may appear niche, they are linked to substantial financial opportunities:

• Swift's Eras Tour is estimated to potentially rake in a groundbreaking $1.6 billion, while Beyoncé's Renaissance Tour, concluding in October, has the potential to surpass that with a projected $2 billion in earnings.

• In addition to boosting the market for sparkly cowboy hats, these tours are anticipated to generate over $4.5 billion each in spending within North America, as per QuestionPro surveys.

However, some journalists have raised concerns about whether these positions represent the most efficient allocation of company resources, particularly considering that Gannett has downsized local newsrooms and carried out staff layoffs, including a 6% reduction in its roughly 3,440-person media division in December.

Tech

Apple’s New Lineup Fails to Create a Stir in China

Apple's annual release of its new iPhone lineup, marked by the green up-pointing triangle, has failed to generate the usual excitement among Chinese consumers. This development reflects the growing challenges that the tech giant faces in one of its most significant markets.

It's true that many dedicated Apple enthusiasts stayed up late to witness the unveiling of the iPhone 15 models, which took place at Apple's headquarters in Cupertino, California. Additionally, the topic "Apple's latest product release" garnered over 500 million views on Weibo, one of China's largest social media platforms, by Wednesday afternoon.

However, in contrast to previous years, Apple's new smartphones, which offer titanium cases, more powerful chips, camera enhancements, and an unexpected price freeze on most models, did not dominate the list of trending topics for discussion among Weibo's half-billion users on the day of their release.

Apple's challenges have become increasingly evident in China, particularly after disruptions in factories due to COVID-19 last year highlighted the necessity of diversifying its manufacturing and supply chain beyond the country. In response, Apple has been turning its attention to India, another country with a population exceeding one billion, where it has been increasing iPhone production, opening stores, and gaining market share.

More recently, Chinese authorities reportedly instructed government employees not to use iPhones for work, as reported by The Wall Street Journal last week. This guidance was conveyed to staff by their supervisors through workplace chat groups or meetings, according to individuals familiar with the matter.

U.S. News

Escaped murderer caught in Pennsylvania

Attempting to evade the law isn't as easy as simply crabwalking away from serving time. After a daring prison escape, Danelo Cavalcante was apprehended by the police yesterday, bringing an end to his two-week run from the authorities. In the course of an extensive manhunt, law enforcement used a heat-sensing plane to locate Cavalcante, and he was ultimately subdued and arrested with the assistance of a police dog.

During his time as a fugitive, Cavalcante, who had been convicted of the murder of his ex-girlfriend, went to great lengths to alter his appearance. He also stole a van, broke into residences to pilfer food, and even managed to acquire a rifle.

Sports

NFL Players want to touch grass

Aaron Rodgers's torn Achilles tendon has become a significant concern for the NFL. After the star quarterback suffered a season-ending injury during his debut for the New York Jets this week, the players' union is once again urging the league to replace artificial turf fields with natural grass, citing safety worries.

According to data analyzed by NFL Players Association President JC Tretter, in 10 of the last 11 regular seasons, players sustained injuries more frequently on synthetic surfaces than on natural grass.

Last year, the injury rate on turf was 37% higher. However, the NFL argues that there was no significant difference in injury rates during the 2021 season, which they claim as evidence that there's no issue with turf.

Players like Rodgers have voiced longstanding concerns about turf fields, citing feelings of instability and linking them to knee, ankle, and foot injuries. NFL Commissioner Roger Goodell has acknowledged that the matter is "complex."

Transitioning to natural grass for each of the NFL's 15 turf fields would incur an estimated cost of $850,000 per field—a relatively small expense compared to the league's $12 billion in revenue last season. NFLPA Executive Director Lloyd Howell stated that it's the "easiest decision the NFL can make."

In terms of innovative solutions, the Arizona Cardinals and Las Vegas Raiders have retractable grass fields that can be moved outdoors for exposure to sunlight. In Spain, Real Madrid has implemented a state-of-the-art grass pitch that can be lowered into an underground system for irrigation and UV light therapy.