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| The big idea | |||||
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Will the Russia conflict reshape the world economy as we know it? |
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If Russia’s invasion of Ukraine drags on or leads to conflict elsewhere, this week’s withdrawal of McDonald’s, Boeing, and other companies from Russia may look like a small ripple in a massive economic sea change. As CNBC reports, international tensions are pushing companies to rethink the concept of globalization altogether. For the past few decades…… the world order has been one of interdependence and (mostly) free trade. Experts believed economic interests would keep powerful nations out of war. Although globalization has declined slightly since the 2008 financial crisis, big companies still sell goods in far-flung, autocratic nations and move production into these markets, where they can pay far lower wages. But these moves have destroyed America’s manufacturing sector and made supply chains more vulnerable to crises (e.g., pandemics and wars). Russia’s war has been especially hard on the auto industry:
Car companies are feeling the squeeze and contemplating where they can maintain safe facilities. What will happen next?Russia has threatened to seize shuttered foreign manufacturing plants and place them under state control — leaving multinational companies with a difficult choice:
The latter would increase the deglobalization trend and reduce supply chain risks. “In 48 hours companies were pulling out and rethinking the post-war world,” Wharton School professor Witold Henisz told CNBC. “This is a fundamental break.” The elephant in the room?China. The rest of the world is far more connected with China than Russia (the US received ~$435B in Chinese imports in 2020, compared to $22B+ in Russian imports). If relations between China and the West decline substantially, then we’ll really see a reshaping of global economics. |
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| SNIPPETS |
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Pizza party: Uber Eats will now let customers split the bill. Each person selects want they want and pays on their own. #ecommerce-retail The Net Zero Technology Centre’s 2022 Open Innovation Program will split ~$9.2m among companies developing or using clean energy tech. A 2nd round will give away $4m. #clean-energy Round 2: The Verge tried Magic Leap’s 2nd AR headset, finding it comfier with a better field of vision. It’s still $2.2k+, though. #emerging-tech Ukraine-Russia conflict: Facial recognition is being used to identify Russian soldiers. #privacy Dive: Bitcoin dipped 5%+ following President Biden’s executive order surrounding the regulation of cryptocurrency. #fintech-crypto PlayStation’s State of Play event showed off games including “Ghostwire: Tokyo,” “Gundam Evolution,” “Stranger of Paradise: Final Fantasy Origin,” and a “Teenage Mutant Ninja Turtles” collection. #big-tech |
| Electric Slide | |||||
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Selina Lee |
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Where are the electric mail trucks? |
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Mail trucks are a perfect fit for EVs. They have short, slow, predictable routes, and park in the same spot every night. So, of the 165k mail trucks the USPS plans to procure, why will just 10% be electric?
While investing in EVs has a higher upfront cost, experts say it could save the agency $4.3B over time — though given the constraints, it’s not that easy. Still, it may be worth biting the bullet when you see this. |
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| Opinion | |||||
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Recessions are rare. We still need to be ready for them |
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A century ago we lived in a world where a recession was a normal thing that occurred every 2 or 3 years, like clockwork. But despite all kinds of chaos over the last quarter century, we’ve had 3 recessions, one of which (Covid, in 2020) was the shortest on record. What happened?Every smart person I know has a theory.
Whatever the cause, here’s what we know: When recessions are rare, people aren’t good at handling them. If Lake Tahoe gets 6 feet of snow…… the plows clear it out in a few hours and everyone goes about their day because they’re used to it. If Seattle gets 6 inches of snow, the city is paralyzed for a week. Same thing with recessions. So, maybe we’re lucky to have fewer recessions than our ancestors. But I think we’re actually at a higher risk, because the idea of a long recession or stock market slump is like a mystical theory to so many people. So if one happens, they’d be unprepared and bewildered. “The only thing new in the world is the history you do not know,” Harry Truman said. Make yourself familiar with the history of how fragile things can be. |
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| TRENDS |
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$720k/month selling… home theater seating?Trends here, with the scoop on home theater fixings and manga trading.
Trends is The Hustle’s premium research division and a community of 17k+ pros. We drop niche market signals and industry deep dives weekly, among other A 1 content. Check us out for $1. |
| AROUND THE WEB |
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🎸 On this day: In 1997, Beatle Paul McCartney was knighted by Queen Elizabeth II for his services to music. He dedicated the honor to the 3 other Beatles: John Lennon, Ringo Starr, and George Harrison. 🎧 Podcast: The Wall Street Journal’s new podcast As We Work explores shifts in the workplace over the last 2 years and how to navigate them. 🥩 That’s cool: Can you make steaks out of carbon dioxide? One California startup is willing to try. 📄 Useful: Here’s a free collection of resources, including a bidding template, creative brief questionnaire, and personal branding worksheet. 📷 Art: Canadian photographer François Brunelle shoots portraits of complete strangers who look a lot alike. |
| IN CASE YOU MISSED IT |
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(A roundup of our best reads from the last couple weeks…) |
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🏰 Meet the woman who builds the world’s most unique Airbnbs LINK ⛽ Why are gas prices skyrocketing? LINK 👤 The IRS and facial recognition, explained LINK 🎧 Google’s doubling down on headphones. Why? LINK 🎮 We tried Amazon Luna, and it’s not bad LINK |
| Shower Thoughts |
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| via Reddit |
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Data shows where markets are headed.
And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?
