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Leave it to the Brits: Boxing Day is a day to spend with special people in your life doing special things like: donating food at local charities, supporting charities, watching sporting events, going to the horse races, and watching football (⚽️) a whole day of Premiere League games.

Seed Stage Founders Pay: How much should founders pay themselves and their first few employees. Click to find out.

Data Created By Data: The promise and perils of synthetic data created by AI

HAPPY NEW YEAR 🏁

2025 Prediction: A Surge of Self-Serve CTV Buyers

• Roku predicts 2025 will be a big year for self-serve CTV

• Roku Ads Manager makes CTV advertising easy

• Target your audience, optimize campaigns, and drive performance

Discover CTV performance on Roku

HEADLINE NEWS 👀

Tale of Two Holidays Splurging Or Scraping By

This holiday retail season underscored a growing divide. Inflation weary Americans spent more on gifts, food, and decorations, but it was the higher income households, those earning over $100,000 a year, who powered the splurge. Lower income families struggled, pinched by rising costs for essentials like groceries and child care.

Retailers navigated the turbulence unevenly. The Container Store and Party City filed for bankruptcy days before Christmas. Nordstrom’s founding family seized the moment to take the struggling department store private.

Chris Peterson, CEO of Newell Brands, summed it up, “There’s a real split in the market.” His company, which sells Sharpie pens and Oster blenders, is abandoning innovation for its cheapest products to focus on high end offerings. We will have absolutely “100% of our innovation” “at the medium and higher price point next year,” he said.

Consumers spent 3.8% more this season, with online sales up 6.7% and in-store sales rising 2.9%, Mastercard reported. Restaurants saw a 6.3% boost, though discounts drove much of the spending. Upscale retailers like Williams Sonoma thrived, while discount chains like Dollar Tree felt the strain.

“Lower income families just don’t feel like they’re thriving,” said Joanne W. Hsu of the University of Michigan’s consumer survey. Meanwhile, sentiment among wealthier Americans rebounded quickly.

The contrast played out in pricing strategies. Some brands, like L.L. Bean, cut prices to appeal to budget conscious shoppers, while high end retailers banked on affluent buyers. Real Flame slashed prices on fireplaces, and Made by Gather redesigned its $19.99 toaster to cut costs and attract buyers.

Even big spenders like Erik Soell near St. Louis hunted for deals. “Santa will be generous,” he said, but only after snagging bargains like a discounted iPhone.

In beauty, the divide was stark. Luxury brands like Gucci fragrances thrived, while drugstore staples struggled. Citi’s Filippo Falorni put it bluntly, “When you’re struggling, you consume less. The prestige side is doing better.”

This holiday season, the message was clear. The divide between the haves and have nots is growing, and retailers are adjusting their bets accordingly.

Microsoft’s AI Like It or Not You’re Getting Copilot

Microsoft is pushing its AI assistant, Copilot, onto users by default. In Australia and parts of Southeast Asia, the tech giant bundled Copilot with its Microsoft 365 subscription, raising prices along the way. Users who don’t want the feature? Too bad.

Australian YouTuber Alistair Fleming noticed Copilot’s logo popping up after every line as he wrote scripts about 1990s Japanese wrestling. “It was very keen to be used, and this was irritating,” he said. Fleming’s monthly subscription cost also jumped from A$11 to A$16.

On social media, some users likened Copilot to Clippy, Microsoft’s infamous 1990s Office helper, notorious for its uninvited advice.

Microsoft declined to explain the forced rollout or whether it plans to expand the approach. But it’s clear the company is doubling down on its $14 billion investment in OpenAI’s technology. Copilot, which helps write emails and create presentations, is central to CEO Satya Nadella’s AI strategy.

The premium version of Copilot costs U.S. users $20 a month on top of the $7 Microsoft 365 subscription. Enterprise customers pay $30 per user. Despite mixed reviews, Microsoft claims nearly 70% of Fortune 500 companies use Copilot, contributing to its AI revenue nearing $10 billion annually.

Still, Copilot is struggling against ChatGPT, its biggest competitor. Since May, Copilot was downloaded 37 million times compared to ChatGPT’s 433 million. Critics have questioned Copilot’s accuracy and value, with some businesses hesitant to justify the cost.

For some individuals, the frustration is already too much. Fleming tried to disable Copilot but found no option. He canceled his subscription and switched to Google Docs. “It’s not worth it,” he said.

For Microsoft, the bet is clear, make Copilot ubiquitous now to pave the way for its next AI frontier, automated tools for complex tasks. But as Fleming’s story shows, forcing AI on users might win the battle, but it could lose the trust war.

Real Estate Firm Settles PPP Loan Abuse Case

A private real estate manager with over $1 billion in assets has agreed to pay $680,000 to settle allegations of misusing federal pandemic relief funds meant for small businesses.

Lafayette RE Management and its founder, Thibault Adrien, faced accusations from former partner Jesus Nunez-Unda, who claimed they fraudulently secured a Paycheck Protection Program (PPP) loan. The loan, Nunez-Unda alleged, was used to grow the business and maintain Adrien’s “lavish lifestyle” rather than support workers during the pandemic.

Lafayette denied wrongdoing, stating the loan was used for employee wages and rent and citing confusion over eligibility rules. The settlement, reached with the Justice Department, resolves the case without admission of guilt.

Lafayette, which manages thousands of single family homes across the southern U.S., said it sought the PPP loan amid uncertainty but maintained high occupancy and rent collections during the pandemic.

Nunez-Unda’s lawyer, Max Rodriguez, called for more whistleblowers to expose PPP fraud, which the U.S. Small Business Administration estimates affected $64 billion of the program’s $800 billion in loans.

Lafayette’s partner, private equity giant Carlyle Group, was not implicated in the wrongdoing.

💰️ Smart Money Matters 💰️ 

Culture Corner

For Many Americans Homeownership Math Ain’t Math’in

Rising Costs Push Homeownership to Breaking Point. Skyrocketing insurance premiums and property taxes are squeezing homeowners across the U.S., rewriting the financial math of owning a home.

Insurers are hiking rates due to mounting disaster losses and costly repairs, while surging home values have driven property taxes higher. In September, 32% of the average single family mortgage payment went to taxes and insurance, an all time high, according to Intercontinental Exchange.

In some cities like Miami and Omaha, one in four homeowners spends more than half their monthly mortgage on taxes and insurance. Nationwide, 9% of homeowners face this burden, up from 4% in 2014.

The financial pinch isn’t just hitting new buyers. Older homeowners on fixed incomes are struggling to keep up. “Even retirees who paid off their mortgages years ago didn’t budget for these kinds of increases,” said Joshua Stewart of housing nonprofit Fahe.

Take Michael and Lisa Landry of New Orleans. They bought their home in 2015, paying $725 a month for taxes and insurance. Today, that figure is $2,448, more than their mortgage payment. “Had I known this, we wouldn’t have moved here,” said Michael, who fears they’ll have to sell when he retires.

Many are already opting out. In Florida, for example, the number of uninsured homeowners has risen sharply, with 21% of Miami homeowners forgoing insurance in 2023. But skipping coverage could spell disaster after a storm.

Rising costs are also eating into housing affordability. High taxes and insurance premiums are forcing some to lower asking prices, while others struggle to qualify for refinancing. “You have less budget for the mortgage itself,” said Andy Walden of Intercontinental Exchange, “which drives down home prices.”

For now, homeownership remains a costly dream for many, and for some, it’s turning into a nightmare.

SMALL BUSINESS OWNERS NEWS

Corporate Transparency Act (CTA)

Federal Courts Hit Pause on Beneficial Ownership Filings—For Now

UPDATE Dec 22, 2024: Businesses just got a reprieve, or maybe a ticking time bomb. For now, the federal government isn’t enforcing the Beneficial Ownership Information (BOI) filing requirement under the Corporate Transparency Act (CTA). But the situation remains fluid.

What Happened: The CTA, effective January 1, 2024, requires over 30 million businesses to report ownership details to FinCEN by January 1, 2025, under threat of fines and jail time. Its aim is to Combat money laundering and terrorism. But lawsuits challenging its constitutionality quickly followed.

Alabama and Texas Rulings: In March 2024, an Alabama court ruled the CTA unconstitutional, allowing local plaintiffs to skip compliance. On December 3, 2024, a Texas court escalated matters with a nationwide injunction, calling the CTA an overreach. FinCEN has since halted enforcement, sparing businesses penalties, at least for now.

What’s Next: On December 13, the DOJ appealed to overturn the injunction, with a ruling expected by December 27. A reversal could force businesses into a last minute scramble before the January 1 deadline, or prompt FinCEN to extend it.

What Should Businesses Do?

Here are your options:

1. Monitor Developments: Hold off filing until the legal dust settles.

2. Prepare Documents: Gather BOI data to stay ready.

3. File Early: Avoid uncertainty and meet potential deadlines.

The Unknowns: The incoming administration might abandon the appeals, shelving the CTA entirely. Until then, the courts have offered businesses a temporary reprieve, but no certainty. Stay tuned.

ECONOMY

Honda and Nissan Eye Merger With Steep Challenges

Honda and Nissan, Japan’s automotive giants, are exploring a merger to tackle rising costs and intensify their competitiveness in a shifting industry. On paper, the deal could create the world’s third largest carmaker. In reality, mergers like these are a minefield.

Combining sprawling global operations is no small task. It demands harmonizing divergent technologies, cutting overlapping projects, and forcing rivals turned partners to work together. According to Thomas Stallkamp, a veteran of Chrysler’s ill fated merger with Daimler, the process is riddled with “egos and infighting.” Downsizing plants or scrapping engine programs often meets fierce internal and political resistance.

The urgency is clear. Both Honda and Nissan are grappling with plummeting sales in China, the world’s largest car market, as buyers there pivot rapidly to electric vehicles. Meanwhile, Nissan’s deeper struggles, shrinking U.S. market share and mounting losses, make the stakes even higher.

While mergers promise cost savings and quicker innovation, history tells a cautionary tale. Partnerships like Ford and Volkswagen or DaimlerChrysler often collapse under competing priorities and cultural clashes. Success stories, such as Hyundai and Kia’s alliance, are rare exceptions.

For Honda, tying its fortunes to Nissan’s woes raises eyebrows. As consultant Marc Cannon puts it, “Honda’s still strong. Nissan’s struggling. Why would Honda take on those problems?”

FINANCE

How One Retailer Plans To Keep Prices Low Even With Tariffs

As tariffs loom Academy Sports & Outdoors braces for their impact. Higher prices on Nike and Adidas shoes could hit shelves if President elect Trump’s proposed tariffs, up to 20% on imports and 60% on Chinese goods, become reality. But Academy bets on staying cheaper than competitors to lure cost conscious shoppers.

Carl Ford, Academy’s CFO, says the chain will stick to its strategy of pricing below MSRP. “If Nike raises prices, we’ll stay $5 under,” Ford insists. Meanwhile, Academy has been cutting its reliance on private label goods from China, down from 70% in 2019 to about half today.

National brands like Nike and Adidas face the same challenges, with 14-18% of their products sourced from China. Retailers across industries are scrambling, diversifying supply chains, negotiating with suppliers, and bracing for higher costs.

Academy’s challenge is going to be passing costs to value driven shoppers amid shrinking sales. But with new Nike products set to hit shelves in 140 stores next year, Academy hopes to reignite interest. In tough times, undercutting the competition might be its best defense.

POLITICS

Is America Ready? Can A Woman Win The White House

Former President Bill Clinton and Senator Lindsey Graham don’t agree on much, but they share a belief, America’s first female president is likely to come from the right.

“If you have a Republican female nominee, they would have a good shot of being the first woman president,” Graham said recently on Capitol Hill. Clinton echoed the sentiment, adding that ideological alignment often overrides gender barriers for conservative voters.

This shared prediction highlights a persistent frustration in American politics, women breaking into the highest office. Since Hillary Clinton’s 2016 loss and Kamala Harris’s recent defeat, Democrats have grown wary of the lingering impact of sexism on presidential races.

Despite nine female candidates vying for major party nominations since 2008, only Clinton and Harris succeeded, and both fell short. Harris’s campaign avoided emphasizing her gender, yet many Democrats believe sexism played a role in her loss. Critics also point to traditional campaign missteps, economic concerns, and poor running mate choices.

Republican women haven’t fared much better. No GOP woman has captured the nomination, though Nikki Haley made history with primary wins in 2024. Some, like Graham and Senator Susan Collins, argue that a female leader in the “Margaret Thatcher mold” might overcome gender bias.

Still, many remain doubtful. Senator Elizabeth Warren, reflecting on her failed 2020 campaign, wrote about donor hesitations tied to Clinton’s loss. When asked recently if a woman could win the presidency, Warren sighed, “Someday.”

For now, America waits. Glass ceiling intact.

THE GRIND FACTORY ⚙️

UNIQUELY INTERESTING

💡 Epiphany Moments

At midnight on New Year’s Eve, the world sings Auld Lang Syne, often with more heart than harmony. But where did this nostalgic anthem come from?

The phrase Auld Lang Syne translates to “old long since” or, loosely, “for old times’ sake.” It’s a toast to friendships and memories. The song’s roots trace back to Scottish poet Robert Burns, who wrote it down in 1788, claiming he’d heard it from an old man. Its melody comes from traditional Scottish folk music, ensuring its sentimental charm.

Fast forward to the 1920s, Canadian bandleader Guy Lombardo turned it into a New Year’s staple. His orchestra played it every December 31 during radio broadcasts, and by 1929, it became the song for ringing in the new year.

Its magic s in its Simplicity. Auld Lang Syne is a global reminder to cherish the past while welcoming the future. So when the clock strikes twelve, and you belt it out with linked arms, you’re not just singing, you’re part of a centuries old tradition. Cheers to that 🥂 

 🍎 One Smart Apple

Kay Jewelers began in 1916 when two brothers, Sol and Edmund Kaufmann, opened a quirky little shop in Reading, Pennsylvania. Back then, Kay sold more than jewelry, think eyeglasses, radios, and even silverware. But diamonds, as it turns out, really are forever, and the brothers soon pivoted to focus exclusively on fine jewelry.

Fast forward, Kay grew into a national darling for engagement rings 💎 and sparkly sentimentality, powered by its catchy slogan, “Every kiss begins with Kay.” In 1987, it joined the Signet Jewelers family, leveling up into a jewelry giant. Now, with stores everywhere and a thriving online shop, Kay remains America’s go to for marking life’s big moments, one kiss (and diamond) at a time. 🍏 

 HEALTH & LONGEVITY •ᴗ•

Two Life Anchors That Support Longevity

The two most important components of achieving longevity are physical health and mental well being. To successfully achieve your goals of attaining longevity place these two lifestyle components at the top of the priority list.

1. Physical Health: Consistent exercise, a balanced diet rich in whole foods, adequate sleep, and preventive healthcare are essential. These habits reduce chronic diseases, improve cardiovascular health, and support the body’s resilience over time.

2. Mental Well-Being: Stress management, meaningful social connections, and a sense of purpose are critical. A positive mindset and emotional health significantly influence longevity, as they help reduce stress related illnesses and improve overall quality of life.

Together, these components create a balanced foundation for a longer, healthier, more enjoyable life.

 HAPPY NEW YEAR 💋

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