Ozempic Era Winner...Yogurt & Apple and Meta Becoming Friends?

0:28Change is always happening. Good morning Brew Daily Show. I'm Neil Freiman. And I'm Toby Howe. Today, the Paris Olympics refused to put a C in the Olympic Village. Team USA has other ideas. Then the NASA astronauts who hitched a ride to the space station with Boeing haven't been able to hitch a ride back to Earth. It's Monday, June 24th. Let's ride.

0:55Welcome back to the week. Yes, it was an extremely hot weekend, but it was also a big weekend for selfies. After her show in London on Friday night, Taylor Swift posted a viral selfie with Prince William, Prince George, and Princess Charlotte. Then on Saturday, Portugal's Euros match against Turkey had to be stopped four times when fans ran onto the pitch to nab a selfie with Cristiano Ronaldo. though. Finally, Chicago's Bean Sculpture, where every tourist is obligated to take a selfie, reopened to the public on Sunday after being closed for a year. Toby, are selfies back, and were they ever gone?

1:30I think selfies are back, but I do want to break down the difference between a millennial selfie and a Gen Z selfie. A Gen Z selfie, you actually use the back camera, you don't use the front camera, and you also put it on.5, and you take it from kind of this downward angle to make your forehead look a little big. I don't know why young people are doing that these days, but it is what it is. Basically, it's whatever the Ellen selfie was. Not that. It's very different from that 2016 Oscars. And then what's a millennial selfie? Right. The classic. The classic. Yeah. Now let's hear a word from our friends over at Yahoo Finance.

2:05Growing up, Neil, were you into investing at all? Honestly, not really. I was more focused on memorizing the stat line of every baseball player in the MLB. That checks out. I wasn't either until I took an econ class my junior year of high school. Part of the class was a stock trading competition where we got$10 ,000 of fake money to trade. And how'd you do? Well, I tried to find random biotech companies that were on the verge of releasing new treatments. That strategy did not work at all. But one part of that competition I'll never forget was using Yahoo Finance. My teacher encouraged us to use the platform because it has great data on companies we'd actually be trading.

2:41Even the random biotechs you were trying to get insider info on? Yes, even those. What'd you end up doing with the fake$10 ,000? Well, I 0.5xed a cool$5 ,000 by the end. I got dead last, and now I'm a podcaster. If you want to see if you can trade better than Toby, and I think you can, head to yahoofinance.com or download the mobile app to get it directly on your phone. Eczema isn't always obvious, but it's real. And so is the relief from Evglyss. After an initial dosing phase, about 4 in 10 people taking EBCLIS achieved itch relief and clear or almost clear skin at 16 weeks. And most of those people maintain skin that's still more clear at one year with monthly dosing.

3:22EBCLIS, LibriKizumab, LBKZ, a 250 milligram per two milliliter injection, is a prescription medicine used to treat adults and children 12 years of age and older who weigh at least 88 pounds or 40 kilograms with moderate to severe eczema. Also called atopic dermatitis that is not well controlled with prescription therapies used on the skin or topicals or who cannot use topical therapies. EpGliss can be used with or without topical corticosteroids. Don't use if you're allergic to EpGliss. Allergic reactions can occur that can be severe. Eye problems can occur. Tell your doctor if you have new or worsening eye problems.

3:50You should not receive a live vaccine when treated with EpGliss. Before starting EpGliss, tell your doctor if you have a parasitic infection. Searching for real relief? Ask your doctor about EpGliss and visit epgliss.lily.com or call 1-800-LILY-RX or 1-800-545-5979. Like Monday morning looming after a big weekend, the food industry has been monitoring the GLP-1 class of weight loss drugs with a sense of impending dread. A type of drug that makes people less hungry is not what you want when you run a food company, and already billions of dollars have been wiped from the market caps of Nestle, Kraft, and other big conglomerates.

4:25But even as the industry reels, there have been some bright spots. Danone, the French food giant, says it's seeing a major boost in demand for its yogurts in the U.S. Yogurt is a high-protein, low-calorie option that is attractive to people taking Ozempic or Vigovie, who are eating less but still want to keep muscle on. It's an angle that food companies have started to embrace, hoping that an uptick in people buying nutrient-rich foods that aren't too filling will offset some of the losses they're incurring on verticals that usually pad the bottom line and waste, like ice cream or candy. Neil, some of these companies are starting dedicated product lines specifically geared towards people taking GLP-1 drugs.

5:06We're in the midst of a major industry shift here. Yeah, I mean, 30 million Americans have taken one of these shots. That's one in eight. I think the food industry is trying to figure out whether this is a marginal shift, another small trend that they have constantly been having to adapt to over the past few decades, or more of a watershed moment where really everything that we knew about food and food marketing is going to blow up in their face and they have to rip up the playbook and start afresh. We're already seeing some of the impacts. As Danone said, its yogurts were flying off the shelves.

5:38Nestle, which is the biggest food company in the world, said it would release a line dedicated to people who are taking these shots. It's called Vital Pursuit and it's going to be frozen pizzas, sandwich melts, pasta again. And high protein, high nutrients, low calorie, it seems like that is sort of the mix that they're going with to try to attract people who are on these shots. Right, because remember, these weight loss drugs, they help you lose weight by reducing caloric intake. But when you reduce caloric intake, that usually leads to losing muscle alongside losing fat. So it feels like they've carved out this lane here to say, hey, do you want to reduce the muscle loss that you're experiencing?

6:19here's some high protein, very nutrient-dense foods, and you're making lines dedicated towards them. It will be interesting because you said the food industry is constantly reacting to new trends. I mean, when veganism became mainstream, you saw a bunch of more vegan meals. Gluten-free became mainstream, more gluten-free meals. But now the industry is shaking because this new class of drug is making people eat less. And that's a much harder trend to adapt to overall. The overall pie is shrinking. So it's very interesting to see how they're facing this crisis. Yeah. And a crisis or just changing trends.

6:52It'll be, yeah, especially fascinating to watch food marketing, which is pretty much what the food industry is banking on. And typically they've tried to create associations with particular points in your life. Coke is happiness. McDonald's is comfort. And so when you have these new sort of product lines you're rolling out, you have to create these fresh new associations and you can't rely on the sort of crave ability snack ability dive in and eat as much as you can marketing associations that you have made in the past and it'll be really interesting to see whether these companies mention glp1 explicitly on the packaging nestle with its new line is saying is not mentioning specifically they're calling it a health journey on your weight management journey so they're doing a little bit of a wink and a nod to people to maybe broaden their user base or customer base for this particular product and not trying to alienate people who aren't taking these shots specifically.

7:48And I do just want to circle back finally to yogurt because I do think yogurt is almost the poster child of food trends because back in the early 2000s, fat-free yogurt was like this very big thing. And then it evolved into Greek yogurt, Chobani, which is full fat, very filling yogurt. I actually had a yogurt wholesaler come in and talk to one of my classes when I was in college, and he was in charge of, he came up with the flip cup, you know, the ones that you can drop the fruit in, and he's like, oh yeah, I absolutely killed that trend. So it's just very interesting to see how yogurt come and goes, and now it's riding this new wave.

8:23Meanwhile, Truist, which is a bank analyzing Krispy Kreme, said that Krispy Kreme is no, or Ozempic is no match for Krispy Kreme. You never want to bring a vegetable platter to your office in the morning, so he thinks Krispy Kreme is going to overcome whatever trend may come its way. Buzz and Woody, Donkey and Shrek, Katara and Zuko. History is littered with examples of enemies becoming friends, and the tech world is no different. Over the weekend, the Wall Street Journal reported that Apple is talking to Meta about integrating Meta's generative AI model into Apple Intelligence, the company's new AI product suite coming to the newest iPhones.

9:01Apple and Meta's feud goes way back to when Meta was called Facebook, but times have changed and putting a top-class AI model in front of customers is seemingly the only thing that matters now. Remember, Apple already linked up with OpenAI to make Siri actually useful, and these discussions with Meta shows it's leaning further into this partnership approach. In the same report, the journal also mentioned that Apple is talking with Perplexity and Anthropic to AI startups about bringing their models to the iPhone as well. What this means is in the near future when using your new iPhone, you might be able to choose from a buffet of AI services to accomplish different things.

9:37And for the AI companies, this will be a great opportunity to show you what they're capable of and hope that you'll upgrade to a paid version. Toby, the AI revolution is leading to some unlikely tech partnership. It is. I was very surprised to see this, but it makes a lot of sense for all parties involved. I mean, it makes sense that you would want this buffet of options when choosing which models you want to use for different tax, because Maybe you really like Llama, Meta's model for creative writing, but then you really love Claude from Anthropic for coding. Each model kind of has their pros and cons, and Apple is saying, come one and come all.

10:14I'll distribute you guys. You guys all want distribution, and we want the really great flexibility that you guys offer us. So it's a weird kind of mixture, though, because not a lot of dollars are being exchanged. No dollars are being exchanged if reports are believed. It's all about distribution and all about access. So it's just interesting to see this very unique conglomerate of brands coming together. Yeah, Apple has a billion iPhones in people's pockets, and it can bring that to any part of the negotiating table. Meanwhile, companies like Anthropic, Perplexity, OpenAI, they're kind of at a disadvantage here because they need to get with Apple.

10:52They're not going to get paid for it. And anytime anybody uses their chatbots or anything, they are doing the computing power on the back end, which is, remember, extremely expensive, extremely power intensive. ChatGBT infrastructure costs are expected to grow 30 % to 40 % because of this iPhone partnership. So these companies may be getting fleeced a little bit by Apple, but Apple has put itself in that position because it has an iPhone in everybody's pocket. The thought process is, though, that to offset some of these higher computing costs, hopefully once using the beautiful capabilities of these models, you will go to Apple's App Store and download the premium versions of OpenAI's ChatCBT, the premium version of these other models, so they can offset some of those costs.

11:34But it's kind of a little bit of a big if at the current moment. Also, though, we just have to zoom out and say that Apple's rolling out of these AI features is meeting a few roadblocks, especially abroad, because there's a big problem in China where iPhone sales have been lagging. We've talked about this over and over on this show. ChatGPT is banned in China. So here was Apple's rolling out this great new AI features, their Apple intelligence features, and yet in their second biggest market, they cannot use ChatGPT. So they're going to try to find a Chinese partner specifically to work with, maybe Baidu, maybe Alibaba.

12:10But that's putting a cramp in their style. And same in Europe. I mean, Europe just released these new tech regulations called DMA, Digital Markets Act. And because of that, Apple said it's not going to be able to release Apple Intelligence, their AI product suite, at least this year because they have to learn about the regulations and see whether they comply. So in their two biggest international markets beside the United States, Europe and China, Apple's big push to get people to upgrade their iPhones is not going to be able to roll out this year, which could put a cramp on their sales. So last week, you may have heard us talk about a big hack that affected 15 ,000 car dealerships across North America.

12:46And you might have also heard us mention the astronauts that were stuck up on the International Space Station because their Boeing spacecraft was having some issues. There have been a few more updates, so let's circle back on those two stories, starting with the car dealership situation. It is still not great. So the tech that was hacked is from a third-party provider called CDK Global. Its core product is a suite of software tools that are known as a dealership management system. DMSs are involved in pretty much every part of a retailer's day-to-day business. CDK shut down its systems after reporting the hack on June 19th, And it is only now, four to five days later, that it's started to restore some of its functionality.

13:27A group that claims to be behind this cyber attack, which has remained anonymous, is demanding tens of million dollars in ransom, which CDK was reportedly planning to send. Neil, the word on the dealership street right now is that it's just mass chaos still, made worse by the fact that this is peak car buying season right now. Yes, there's a big end of the quarter push. It's June 24th now. And the first half of the year, the second quarter is coming up in just a few days. And there's always this big push from car dealerships. We'll see the economic fallout of this. But$1.2 trillion is the size of the car dealership market.

14:03That's how much sales they did last year. So we'll see what resorting to pen and paper or just putting sales on ice will do. But yes, mass chaos did seem to be the sort of phrase that was thrown around by many car dealership owners last week. And it's very frustrating for car dealership owners, too, because this is a third-party software. They could do everything right when it comes to security on their own premises. But if a third-party app that you use, a third-party software that you use is compromised, then you feel the downstream effects of that. So it just shows the danger of having kind of this one node, this one point of failure for such a large industry.

14:36I mean, that's what happened with that UnitedHealthcare hack. It was their payment processor that was hacked earlier this year. And when you use a third-party vendor, the entire industry is on this particular software. And then hackers are starting to go after that particular third-party vendor. And that cripples the entire system. We're starting to see hackers go after these vendors. And it kind of takes down the entire sector. Now let's check in on the astronauts on the International Space Station. Things are also not looking great up there either. After delaying the return of its Starliner spacecraft two times, Boeing provided another update saying the return mission is now delayed indefinitely as the craft tries to deal with various technical issues ranging from helium leaks to thruster malfunctions.

15:20Now Boeing is confident that the craft is operational and could make the return trip in an emergency situation, but they'd rather be safe than sorry at this point. It was a celebration when Starliner carrying astronauts Butch Wilmore and Suni Williams made it up to orbit and docked at the space station. But that was only half the battle. And right now, Boeing is losing the other half. Yeah, wow. This is not going according to plan. I mean, they docked on the ISS on June 6th. It was supposed to be an eight-day mission. So they were supposed to come home June 14th, which was already 10 days ago at this point.

15:54And now it looks like they're going to be spending July 4th on the International Space Station. I don't know if you can see the fireworks. Maybe that'll be a good view. But they are going to stay up there for at least three weeks, hopefully coming back in July. But the thing is, there's a 40 day, 45 day timeline for Starliner to be docked on the ISS. And that started ticking on June 6th. So if you do the math at home, July 21st is the last possible day that Starliner could come back. I mean, I know Boeing and NASA officials are saying putting on a brave face and saying, like, we got everything covered.

16:26It's a hiccup here and there, but this is not how it was supposed to go. Worst case scenario, astronauts will have to wait on the space station until SpaceX's Dragon spacecraft makes a scheduled trip to the ISS in August. Up next, there's a war over air conditioning going down at the Olympic Village in Paris.

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17:48years ago Paris officials raised eyebrows when they announced that the rooms in the Olympic village would not have any air conditioning and instead feature an alternative cooling system that was much more friendly on the environment spurning AC units was the marquee symbol of Paris attempting to pull off the most sustainable Olympics yet by slashing its carbon footprint in half. But turns out not offering air conditioning to elite athletes who prize their sleep has backfired spectacularly. On Friday, Team USA said that it would be bringing its own AC units to install in rooms. And it's not the only country to freeze Paris's green Olympic dreams.

18:22Australia, Great Britain, Canada, Greece, and maybe even China are going to supply air conditioning to the athletes. And you'd expect more to come on board since this is a competition we're talking about. And taking a step back, it's not unusual for houses in Europe to not have air conditioning. Fewer than 1 in 10 European houses have AC, and that shrinks to just 1 in 100 in Paris. It doesn't get as hot there as it does here with the average July high being 79 degrees. But Toby, athletes are training their entire lives, dawn till dusk, for maybe 10 minutes total of competition. If they can afford to, their countries are going to eliminate any possible negative variables in their living arrangements.

19:00Yeah, listen, Paris was hot. Their heart was in the right place here. You do want to reduce carbon emissions. since you want to make this a Green Olympics, but their cooling system, they were promising to use these natural systems that they've been testing out in the Louvre, actually, to keep the temperature down there. But here's where they lose me. They said they can keep the indoor temperature between 23 and 26 degrees Celsius. That is 73 to 79 degrees Fahrenheit. Absolutely untenable for a lot of these athletes. I can't sleep unless it is like 64 degrees there. They're saying try to sleep and it's 79 degrees.

19:32So it's very tough because this is the biggest moment of a lot of these athletes life. And of course, they're going to want to strip away variables that would make them sleep worse or variables that would make them perform worse. Yeah, I mean, the number of countries that are bringing their own AC is definitely not just USA. A lot. Most of high income countries are going to be doing this. More than a quarter of the total number of athletes are already going to have ACs in their units. All of the G7 countries, besides for the host country, France, are bringing their own AC units. So I don't know what France is going to do.

20:05Do you think they'll eventually cave and say, hey, we want to win gold, too? And everybody else is sleeping like a log. And our guys are twisting and turning in 77-degree heat. Maybe they're used to it. I mean, like I said, Europe is just not as hot here. Though there have been heat waves in the last seven hottest years have come since 2007. In Europe, obviously, things are getting hotter. But yeah, Europe is just not an air conditioning continent, but I don't know whether they'll change based on what all these competitor countries are doing. Seeing the AC stats, there's 1.6 billion AC units in use across the globe as of 2016.

20:38More than half are in China, 570 million. And then the United States has 375 million units. The entire European Union has around 100 million units. So you're right. It's just not a part of life over there. Much different. There are questions about whether this creates inequality or unfairness because the delegation of Uganda is like, yeah, we compete in tournaments all over the world where it is super hot and we can't afford to bring ACs. And there might be a bunch of countries that would be like, yeah, we can't just like shell out a ton of ACs like the United States and Germany can. So I wonder whether it'll create this imbalance in the competition because of people who, you know, because of just the various levels of economic inequality.

21:17In an Olympic redemption arc fit for a movie and some surprising comebacks in the animal kingdom, it's time for our winners of the weekend segment where Neil and I picked two stories that had a better weekend than Travis Kelsey on stage at the Aeros Tour. I won the pre-show game of naming obscure mid-2000s running backs, so I'm up first, and my winner of the weekend is the Olympian Sha 'Carri Richardson. Sha 'Carri Richardson was supposed to be the face of American sprinting at the 2021 Tokyo Olympics, but after earning her spot on the U.S. team by winning the 100 meters at the U.S. Olympic trials, she ended up missing out after accepting a one-month ban for testing positive for THC.

21:56But over the weekend, she got a do-over and did not miss a beat. She won the 100 meters at the U.S. trials in Eugene in dominant fashion, and barring any unforeseen circumstances, she will finally get a chance to represent Team USA at the Paris Olympics. This was such a great story, such a great redemption arc, And I'm very excited for her. She's got to be happy about the AC. I mean, because the Jamaican sprinters she's going to be going against are incredible. They've won the last four golds in 100 meters going back to 2008 in Beijing. But she's got to be the favorite 10.71. That's the fastest time of any woman this year in the 100 meters.

22:35So super exciting for her after getting disqualified a few years ago. She's definitely raring to go. It was also interesting, too, because you have to make it through multiple heats in the semifinals to even make it to the finals. And she actually stumbled out of the blocks in one of her heats, and her shoe came untied, which to me is just a sprinter's worst nightmare. She'd start running and go, oh no, the shoe is untied, the shoe is untied. But yeah, she won Worlds last year too, so she won the 100, the 4x1, and she got third in the 200. So I think it is her year right now, and yeah, you could just see how much it meant to her.

23:04Meanwhile, the Olympic trials themselves, where all of Team USA potential competitors go and race against one another, has become just massive events. The swimming trials just ended yesterday. They put that in Lucas Oil Stadium, a football stadium. More than 20 ,000 people attended that on Saturday night and made it the most watched swimming event in the history of the world. And you have gymnastics coming up in Minneapolis in just a few days on Thursday. So these events were just USA. Americans go at it against each other for a very limited number of spots in the Olympic team has become almost must-watch TV.

23:39Oh, it is must-watch TV. I know it has been for you. for years. I know. You know who's also must-watching though is NBC itself because they are broadcasting Olympics, so they want the stars to advance through. Sha 'Carri is someone who they've been marketing a lot, so they breathe a sigh of relief as well. My winner of the weekend is the Iberian Lynx, a wild cat that has just been removed from the endangered species list by the International Union for Conservation of Nature. Go back two decades, and few people thought Iberian Lynx would still be around today. In 2002, there were only about 60 of these cats living in Portugal and Spain, and they were labeled critically endangered.