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TECH TODAY

Threads Threatened Competes With Bluesky: Meta is rolling out its own take on Bluesky’s Starter Packs. Curated lists of suggested accounts for new users to follow.

Teens Are Addicted: Nearly half of U.S. teenagers are online nearly all waking hours.

Drones fly across New Jersey and NorthEast: The Pentagon in a press briefing said the unknown drones were not military nor are they believed to be of a foreign nation.

 🎁 Happy Holidays 🎄

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 🎄 Happy Holidays 🎁🎅🎎🪔🧑‍🎄🤶

HEADLINE NEWS 👀

Banks Must Cap Overdraft Fees At $5

Consumer Financial Protection Bureau (CFPB) finalized a rule limiting overdraft fees at large banks and credit unions to $5, significantly reducing the current average fee of $35. Set to take effect on October 1, 2025, the rule could save consumers up to $5 billion annually, with households saving an average of $225 per year.

Banks will also have the option to either align fees with their actual costs or treat overdrafts as loans, disclosing terms like interest rates. While consumer advocates praise the move, banking trade groups argue the rule could limit consumer choice and innovation. The rule follows President Biden’s broader efforts to eliminate "junk fees" across various industries. However, its implementation could be at risk if the next administration revises or overturns it.

Consumers Splurge Costco Beats On Q1 Expectations

Costco exceeded Wall Street forecasts for its fiscal first quarter, reporting earnings of $4.04 per share and $62.15 billion in revenue. Ecommerce sales surged 13%, while demand for high-ticket items like jewelry, furniture, and luggage drove growth. Net income rose to $1.8 billion, up from $1.59 billion a year ago.

Despite selective consumer spending, CFO Gary Millerchip noted that shoppers continue to buy when quality and value align, especially as inflation cools. Strong fresh produce and meat sales suggest more customers are cooking at home, with some opting for premium cuts and others choosing lower-priced options.

Costco’s membership revenue grew nearly 8% to $1.17 billion, with total cardholders rising to 138.8 million. Comparable sales increased 5.2% globally, with store traffic up 5.1%. Private label brand Kirkland Signature outperformed overall sales, benefiting from price reductions on key items.

Expansion continued with seven new clubs opened during the quarter, online orders hit a record 1 million deliveries, boosting Costco’s market share in bulky items. Shares have climbed nearly 50% this year, showcasing Costco’s strength as a value-driven leader amid shifting consumer trends.

Media companies are in the news this week

Warner Bros. & Discovery Split Its Streaming Vs Cable

Warner Bros. Discovery is restructuring its business into two major divisions, a move that could pave the way for future growth and potential mergers. The company announced it will consolidate its streaming services, including Max and Discovery+, with its Warner Bros. production studios into one unit. Meanwhile, its legacy cable networks, such as CNN, TNT, and HGTV, will form a separate division.

CEO David Zaslav said the reorganization is designed to better align the company’s operations and enhance flexibility for “future strategic opportunities.” The new structure, which is expected to take effect by mid-2025, aims to position Warner Bros. Discovery as a competitive player in the entertainment industry alongside streaming giants like Netflix, Amazon, and Apple.

Streaming remains at the center of Warner’s growth strategy, with 110 million global subscribers to its platforms. However, the company’s cable division, despite declining performance, continues to be its largest revenue generator, bringing in $15.4 billion through the first nine months of the year. This marks a 3% drop from the same period last year as cord-cutting and shifts in advertising spending accelerate.

The restructuring also revives speculation about potential dealmaking. Since its 2022 merger, Warner has been rumored to be exploring acquisitions or partnerships to build scale. Earlier this year, it discussed a combination with Paramount Global before Paramount announced plans to merge with Skydance Media. Warner has also partnered with Disney to offer streaming bundles, signaling its willingness to collaborate in an increasingly competitive landscape.

Shares of Warner Bros. Discovery surged 15% following the announcement, as the company seeks to modernize its corporate structure and adapt to a rapidly evolving media environment.

Netflix Retreats On Employee Parental Leave Promise

Netflix once made headlines with its groundbreaking parental leave policy, offering new parents unlimited time off during their child’s first year a reflection of its “freedom and responsibility” ethos. But the ambitious benefit proved unsustainable, and Netflix has spent years quietly scaling it back.

Internally, taking more than six months off is now viewed as a career risk, according to employees. Official guidance has become increasingly vague, and the policy no longer promises the flexibility it once championed. While Netflix maintains its leave policy hasn’t changed, data shows average leave durations of about six to eight months.

The parental leave rollback mirrors broader cultural shifts at Netflix as it prioritizes profitability over growth. Renowned for its radical transparency and autonomy, Netflix has begun tightening costs, limiting spending, and reshaping its culture. The changes include reduced compensation flexibility, restrictions on internal document sharing, and subtle curbs on employee controversial content feedback.

Critics argue these shifts are eroding Netflix’s unique workplace identity, risking its ability to attract top talent. Current and former employees cite the leave policy as emblematic of this transformation, with some alleging layoffs disproportionately impacted employees on or returning from parental leave. Netflix denies targeting such employees and highlights its industry leading job acceptance and retention rates.

Elf On The Shelf 'Twas the Toy They Said Would Fail’

Not all toys begin their journey to stardom wrapped in shiny paper and bow topped. Some toys, like this holiday underdog, are written off as misfits,

destined for the damaged goods bin, naysayers declared. Yet, like Rudolph finding his glow, this creation defied expectations and soared straight into the hearts of families.

It’s a tale as magical as Santa’s sleigh ride. Once dismissed as a flop, the toy's creators tinkered like Christmas elves, fine-tuning every detail. With a sprinkle of innovation, a dash of resilience, and perhaps a bit of holiday luck, their product transformed into a phenomenon as beloved as a roaring yule log. Brandy and eggnog flowed in celebration.

Now, shelves are emptied faster than Santa's sack on Christmas Eve, and the toy is the season's must have gift. Proof even underdogs can shine brighter than the North Star.

💰️ Smart Money Matters 💰️ 

Culture Corner

I’m a sucker for wholesome. Grab a tissue and close your office door so no one hears, now go giggle and snort, enjoy!

SMALL BUSINESS OWNERS NEWS

Corporate Transparency Act (CTA)

12/11/24 Update: U.S. Businesses May Face $10K Fines for Missing Ownership Reporting Deadline Under New Law

Small businesses must comply with the Corporate Transparency Act (CTA) by reporting beneficial ownership information (BOI) to the Treasury's Financial Crimes Enforcement Network (FinCEN) by Jan. 1, 2025. The CTA, passed in 2021, targets illicit finance by requiring transparency around who owns or controls companies operating in the U.S.

An estimated 32.6 million businesses, including corporations and LLCs, are subject to the new rules. Noncompliance could result in fines of $10,000 or more, plus possible jail time for "willful" violations.

Despite the looming deadline, many businesses remain unaware or unprepared. The Treasury has not disclosed how many BOI reports have been filed so far. A federal court in Texas has temporarily halted enforcement of the law, but the mandate is still in place.

The law seeks to prevent crimes like money laundering, terrorism, and corruption by eliminating the anonymity often enabled by shell companies. As Treasury Secretary Janet Yellen emphasized during FinCEN's BOI portal launch in January, "Corporate anonymity enables money laundering, drug trafficking, terrorism, and corruption."

For more details, visit FinCEN’s Corporate Transparency Act page or learn about beneficial ownership reporting here.

12/4/24 Update: A federal court has halted the implementation of the Corporate Transparency Act’s beneficial ownership reporting requirements. This will remain in effect until the conclusion of legal proceedings. As of this update, businesses are not required to comply with the reporting requirements.

ECONOMY

Inflation Proves Stubborn Ticking Up to 2.7%

Inflation progress hit a snag in November as the Consumer Price Index (CPI) rose 2.7% year-over-year, reversing earlier trends of declining goods prices. Core inflation, excluding food and energy, climbed 0.3% m-o-m, holding steady at 3.3% annually.

Goods inflation surged at its fastest pace in 18 months, driven by a jump in vehicle prices as drivers replaced hurricane-damaged cars. Economists fear inflation could accelerate further if the incoming Trump administration enacts broad tariffs.

Housing cost increases slowed slightly, offering a glimmer of hope, but persistent inflation in services like medical care remains a concern. Economists warn the "last mile" of tackling inflation will require a demand slowdown, posing political challenges.

The Federal Reserve faces tough decisions. Another rate cut is widely expected next week, though sticky inflation could force officials to slow or halt further reductions.

Meanwhile, consumer and business optimism rose post-election, buoyed by hopes of pro-business policies under the Trump administration. Yet, budget-conscious households continue to feel the pinch of prolonged inflation and higher interest rates.

The economic outlook hinges on whether housing cost improvements persist or goods price pressures escalate in the coming months.

Federal Reserve This Week

The Federal Reserve reported the Consumer Price Index (CPI) this morning. Later in the week the Fed reports U.S. Import & Export Prices Friday morning.

FINANCE

Macy’s Reveals Accounting Error Of $151 Million

Macy’s concluded investigations uncovering $151 million in false accounting entries caused by a single employee’s error and subsequent coverup. The discrepancy, spanning from late 2021 to fall 2024 and stemmed from understated small package delivery expenses, according to a source familiar with the probe.

The employee, responsible for delivery expense accounting, falsified documentation to conceal the mistake. Although terminated, the individual reportedly did not act for personal financial gain.

The accounting irregularities delayed Macy’s financial report last month, triggering a selloff in its stock, which dropped 10% Wednesday as the company lowered its profit forecast. Macy’s now projects fiscal year earnings of $2.25 to $2.50 per share, citing the uncovered expenses as a contributing factor.

Macy’s CEO Tony Spring announced strengthened controls to prevent future errors but declined to comment on whether the case was referred to law enforcement. The company has not disclosed how the discrepancies went unnoticed by its auditor, KPMG, which it paid $12.8 million from 2021 to 2023.

Despite cautious holiday season expectations, Macy’s reported growth at top-performing stores and raised $66 million from asset sales, surpassing projections. Plans to close 65 stores this year reflect ongoing efforts to optimize its portfolio.

POLITICS

FBI Director Resigns Amid President Elect Tensions

FBI Director Christopher Wray announced his resignation, effective before the Trump administration begins, citing the need to preserve the bureau’s independence. The move comes after President elect made clear he would replace Wray with a loyalist intent on overhauling the FBI.

Wray was appointed in 2017 by Trump and endured a strained relationship with the former president, particularly following the FBI's investigations into Trump’s conduct and the 2022 search of Mar-a-Lago for classified documents. Trump's chosen successor, Kash Patel, a vocal critic of the FBI, has proposed sweeping reforms, leaving many bureau employees uneasy about its future.

In a final address to staff, Wray emphasized the importance of the FBI’s values, receiving a standing ovation from employees. While his tenure focused on cybersecurity, violent crime, and national security, Wray faced criticism for the bureau’s handling of politically sensitive cases, including the Russia probe.

Trump, who called Wray’s resignation "a great day for America," has faced criticism for his proposed replacement, with some questioning Patel’s qualifications. Senate confirmation for Patel remains uncertain, as concerns about the FBI’s future loom under a potentially tumultuous transition.

Deputy Director Paul Abbate is expected to serve as interim head until his planned retirement in April. Wray’s departure highlights the challenges of maintaining the FBI’s independence amid mounting political pressures.

THE GRIND FACTORY ⚙️

UNIQUELY INTERESTING

💡 Epiphany Moments

The Salesforce origination story began In March 1999 when Marc Benioff and his trio of collaborators—Parker Harris, Dave Moellenhoff, and Frank Dominguez set out to revolutionize software delivery. Working out of a one bedroom cozy apartment in San Francisco's Telegraph Hill they envisioned a groundbreaking new concept. Software delivered over the internet rather than installed on physical servers or hard drives. This bold idea became the foundation of Software-as-a-Service (SaaS).

The startup was unconventional from day one. Their mantra was simplicity and speed, and even Benioff’s dog, Koa, pitched in holding court as the “Chief Love Officer.” When Salesforce officially launched on February 7, 2000 its tagline, “The End of Software,” declared war on traditional computer industry methods.

Salesforce weathered the dot com crash and saw explosive growth during this tumultuous period. By 2003 they had hit 10,000 customers. A year later, they made history by going public and cementing their place as a SaaS pioneer. Today, Salesforce is a cloud computing juggernaut, shaping the software world it once sought to disrupt.

 🍎 One Smart Apple

When marrying right is right. Stan Kroenke is a billionaire whose wealth stems from both his entrepreneurial ventures and his connection to the Walton family, heirs to the Walmart fortune.

Kroenke's self-made success began with the Kroenke Group, a real estate development firm he founded in 1983. Kroenke Group specializes in shopping centers and apartment complexes. He expanded his empire by acquiring major sports franchises through Kroenke Sports & Entertainment owns the Los Angeles Rams, Denver Nuggets, Colorado Avalanche, and Arsenal F.C.

However, his marriage to Ann Walton in 1974, a Walmart heiress, significantly bolstered his financial foundation. This connection to one of the world's wealthiest families provided access to additional resources and opportunities that have shaped his rise 🍏 

 HEALTH & LONGEVITY •ᴗ•

The Essential Ingredient To Enjoy Longevity

A growing body of research emphasizes the importance of healthspan, the years spend enjoying good health, to be a more critical metric than lifespan. This is what the experts are saying:

Healthspan focuses on living healthier, not just longer, bridging the gap between the total years lived and the quality of those years. The period of life during which a person is in good health, free from chronic diseases or disabilities. Unlike lifespan, which measures the total years of life, healthspan focuses on the quality of those years, emphasizing vitality and functional independence.

How to Maximize Healthspan:

• Nutrition: Focus on anti-inflammatory foods (fruits, vegetables, healthy fats), avoid processed sugars, and consider intermittent fasting for cellular repair.

• Exercise: Combine aerobic activities, strength training, and balance exercises like yoga to maintain mobility and heart health.

• Sleep: Get a good nights sleep aiming for 7–9 hours with a consistent sleep.

• Stress Management: Practice mindfulness, meditation, or hobbies. Keep chronic stress to a minimum.

• Social Connections: Stay connected with friends and loved ones. Build new relationships and engage in community to combat loneliness.

• Brain Health: Stay sharp with puzzles, reading, or learning new skills; read The Grind Newsletter daily 😊 

• Avoid Harmful Habits: Quit smoking (yes, vapes too) and limit alcohol.

• Health Monitoring: Track key metrics e.g., blood pressure, cholesterol. Proactively seek out preventive care.

Focus on healthspan to ensure a long life, and vibrant enjoyable living.

🎁 Happy Holiday’s  🎄

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