🐂 Red Envelopes

Markets

On Thursday, stocks experienced a significant increase in value following the release of better-than-expected unemployment data, while treasury yields remained steady after three consecutive days of gains. Meta, in particular, had a strong performance among tech giants, with investors pondering the potential appeal of the company's AI-enhanced Ray-Ban smart glasses.

Underlying Prices Cooled in August, Giving the Fed More Evidence of Softer Inflation

During this summer, there has been a noticeable decrease in underlying inflation, with the most recent report marking a third consecutive month of slower price increases. If this trend continues into the fall, it would provide further support for the argument that the Federal Reserve should halt its interest rate hikes.

The Federal Reserve's preferred measure of inflation, the personal-consumption expenditures price index, showed a 0.4% increase last month, primarily due to higher energy costs. In contrast, core prices, which exclude food and energy, experienced a meager 0.1% rise in August, marking the lowest monthly increase since 2020, according to the Commerce Department's report released on Friday.

Over the three-month period ending in August, core prices exhibited an annualized growth rate of 2.2%. If this trend persists in the upcoming months, inflation would be approaching the Fed's target of 2%. However, the recent surge in energy prices has contributed to an overall uptick in inflation, emphasizing why policymakers are not yet ready to claim victory.

The report also indicated that Americans increased their spending by 0.4% in August compared to the previous month. While this reflects healthy growth, it does represent a slowdown from the 0.9% increase observed in July. Factors such as strong employment prospects, income growth, and rising gasoline prices played a role in driving consumer spending.

TV

Netflix’s DVD series is no more

After a quarter-century of sending out red envelopes, Netflix is shipping its final DVD today. This move isn't unexpected as the DVD business is no longer the lucrative venture it once was, and Netflix is looking to trim costs in the midst of the expensive streaming competition. Nevertheless, it's important to acknowledge that Netflix owes a significant part of its success to DVDs. The company that now wields considerable influence in Hollywood was originally built on those shiny silver discs.

In the early days, there was "Beetlejuice." In 1998, Netflix started by mailing out DVDs, and Tim Burton's film "Beetlejuice" was the first one they sent. This was during a time when most people spent their Friday nights at Blockbuster, only to find that all copies of "A Bug's Life" were already rented out. Netflix disrupted this by offering a convenient way to rent DVDs online and receive them the next day, all without late fees or due dates. At its peak, Netflix's DVD service was the fifth-largest customer of the US Postal Service, handling a staggering 1.2 million DVDs every week, as reported by the New York Times. It generated a profit of $2.6 billion between 2012 and 2019, which Netflix reinvested into its streaming platform and the creation of original content like "The Unbreakable Kimmy Schmidt."

Now, it's a service that's become a part of our history.

While the discontinuation of the DVD service was anticipated given the company's name, there were still about a million paying subscribers who felt a twinge of sadness as it came to an end. For these loyal DVD renters, Netflix offered a farewell gift: they could keep their final discs.

In commemoration of this moment, we've gathered some of our all-time favorite DVD selections. We haven't forgotten you, bouncing DVD logo.

• Adam: "The Lord of the Rings" extended editions. The best behind-the-scenes content ever. If you know, you know.

• Abby: "The Umbrellas of Cherbourg" because it deserves a bigger screen than my laptop.

• Sam: "The Parent Trap" because more Lindsay Lohans equal more fun.

• Cassandra: "Monk." It holds a special place in my heart as the first show I watched on Netflix DVD, and it stars my favorite actor, Tony Shalhoub.

• Matty: "Talladega Nights." I can't be expected to remember every iconic line at all times.

• Dave: "The Avengers" (1998). Because Ralph Fiennes and Uma Thurman make a great pair, and no other movie has ever come close when it comes to avenging.

Politics

House GOP’s first Biden impeachment hearing flopped

Republicans in Congress opened their impeachment inquiry into President Biden yesterday, looking to establish that he was involved in his family’s foreign business dealings. But the GOP’s own witnesses, which included law professor Jonathan Turley and forensic accountant Bruce Dubinsky, testified that the existing evidence does not supportimpeachment charges. House Oversight Chairman James Comer, who’s leading the hearings, said he plans to continue the inquiry even if the government shuts down this weekend.

Climate

Saltwater infiltrating the Mississippi River

Saltwater from the Gulf of Mexico is encroaching into the Mississippi River, contaminating the drinking water in Louisiana parishes and posing a threat to New Orleans. President Biden recently authorized an emergency declaration for Louisiana, unlocking federal resources to address this saltwater intrusion.

Local authorities are reassuring residents that there will be an ample supply of bottled water and urging them not to engage in panic buying at supermarkets.

What is causing the Mississippi River to become saline?

A wedge-shaped layer of saltwater from the Gulf of Mexico always exists beneath the freshwater of the Mississippi. Typically, the river's current pushes this saltwater downstream, keeping it near the river's mouth. However, a lack of rainfall during this summer has diminished the river's usual flow, allowing the saltwater to move upstream. With the increased frequency of low water levels in the Mississippi due to climate change, the risk of recurring saltwater intrusions is on the rise.

The US Army Corps of Engineers is taking action to combat this issue. They are working on raising the height of an existing underwater barrier to delay the saltwater's advance and planning to redirect freshwater from higher up the river.

Sports

The US-Europe rivalry hits the links

If ever there were a morning perfect for enjoying a continental breakfast, it would be today. While you were sleeping, American golfers embarked on their quest to defend their Ryder Cup title against Team Europe at the Marco Simone Golf and Country Club, located on the outskirts of Rome. Team USA delivered a dominant performance in the 2021 tournament in Wisconsin. However, it's worth noting that the United States hasn't clinched a Ryder Cup victory in Europe since 1993.

This cherished golf tournament, which originated in 1927, occurs biennially, alternating between venues in the United States and Europe.

Here's how it operates: Over the course of three days, the US and European teams engage in various "match play" formats to accrue points. The team with the most points at the end of the competition claims victory, although it's important to mention that there is no prize money at stake—this competition is all about earning bragging rights.

To help you get acquainted with this intercontinental rivalry, here's a comparison:

Comparison between United States and Europe:

• Odds: United States (-115) / Europe (+100) (indicating a slight favor for the US)

• Number of golf courses: United States (17,000) / Europe (9,000)

• Economic growth in the past 15 years: United States (82%) / Europe (6% in the eurozone)

• Mandatory time off: United States (none) / Europe (four weeks of paid vacation)

• Number of places named "Rome": United States (At least 20) / Europe (1)

• Most famous detective: United States (Benoit Blanc) / Europe (Sherlock Holmes)

• Most famous invention: United States (The Snuggie - 2008) / Europe (Printing press - 1440)

• Best Batman: United States (Michael Keaton) / Europe (Christian Bale)