Hey Snackers,
The conflict in Ukraine has unfortunately escalated: Late yesterday, Russian President Vladimir Putin ordered a military operation in Ukraine, and the country confirmed that several of its cities were under attack. President Biden said Ukraine is facing an "unprovoked and unjustified attack," and that the world would "hold Russia accountable."
Yesterday, the US sent extra troops to Eastern Europe to bolster security. FYI: 70K US troops are permanently stationed in Europe through NATO, the US-led org founded after WWII to protect its now 30 members. Ukraine isn’t part of it. Meanwhile, the Dow plunged to its lowest level this year.
Refresh for updates... Days after Russia sent troops into Moscow-backed regions of Ukraine, the US has been upping its response by adding to targeted financial sanctions. Yesterday the US slapped sanctions on the company building Russia’s $11B Nord Stream 2 gas pipeline which spans from Russia to Germany after Germany halted its opening.
Companies are nervous... Most Western corporations don't have operations in Russia and Ukraine. But large multinationals that do are bracing for further sanctions, which Western leaders could leverage:
Sanctions could hit consumers hardest… especially Europeans. Western companies were relatively unaffected by Russia’s 2014 annexation of Ukraine’s Crimean Peninsula. American and EU officials say sanctions will be harsher this time, and consumers could feel that at the pump. As the world’s #2 exporter of natural gas and #3 exporter of oil, Russia can cut supply at a time when prices are already sky high. Americans, who are facing for the highest gas prices since 2013, could experience even more pump anxiety if global supply shrinks.
Yeezy taught me… Kanye West isn't afraid to be vocal, whether it’s about his personal life or his moves to take on an "oppressive" music industry. The artist now known by “‘Ye’” live-streamed a “Donda Experience” event on Tuesday to promote his new “Donda 2” album. Ye’s making the record available exclusively on a physical $200 “Stem Player” device (think: a new-age iPod that looks like a smoke detector). Why: Ye wants to bypass streaming platforms like Apple, Amazon, Spotify, and YouTube. Kanye also tried to skip those streamers with his launch event:
The revolution will be streamed… but it’s less certain where. Many musicians have criticized streaming platforms for their payout structures: artists reportedly earn only about 10% of streaming revenue, so they have to hit 1M streams just to pocket $5K on Spotify, Apple, or Amazon. Several stars have attempted to ditch major platforms in a push to better control their earnings:
Habit platforms are sticky… It’s one thing to fight streamer payouts, but another to fight listener habits. Taylor, Kanye, and Beyoncé can afford to ditch Spotify or Apple temporarily to fight for better terms. But they’ve all returned to where the ears and playlists are: Spotify and Apple have a combined global market share of more than 50%, but they’re not invincible. Example: Spotify shares fell 6% in the days after Neil Young jumped ship in protest of Joe Rogan’s vax misinfo, and they still haven’t recovered.
Authors of this Snacks own shares of: Tesla, Amazon, Spotify, Apple, Block, Google, and Exxon
ID: 2052707