Good morning. On this day in 1973, a bank was robbed in Sweden, sparking a six-day standoff during which many of the hostages at the bank became sympathetic to their captors and hostile toward the authorities. Why are we telling you this story? Because that bank was located in the city of Stockholm, and the episode was the origin of the term "Stockholm syndrome" for the (rare) phenomenon of some victims developing positive feelings toward an abuser or a captor. Interesting! —Neal Freyman, Max Knoblauch | | | |  | Nasdaq | 12,381.57 | | | | | S&P | 4,137.99 | | | | | Dow | 33,063.61 | | |  | 10-Year | 3.027% | | | | | Bitcoin | $21,106.46 | | | | | Netflix | $226.54 | | | | *Stock data as of market close, cryptocurrency data as of 9:00pm ET. Here's what these numbers mean. | - Markets: The S&P posted its worst day in more than two months as the summer rally makes way for a throbbing hangover. Analysts are expecting a jittery market this week ahead of Fed Chair Jerome Powell's big speech on inflation at Jackson Hole, WY, on Friday.
| | | | Photo Illustration: Dianna "Mick" McDougall, Sources: Getty Images AMC's new preferred share class, APE, started trading on the New York Stock Exchange yesterday morning. And while it's certainly a whacky scheme, we wouldn't be surprised if down the line finance professors use it to teach some of the fundamental concepts of Wall Street. Why APE exists AMC CEO Adam Aron knows he has a rabid fanbase of individual traders ("Apes," as they call themselves) that formed during Covid. Not many public companies have followings like sports teams, so Aron has searched for ways to leverage AMC supporters and help the company shore up its finances at a time when movie theater chains are still struggling to recover from the pandemic. - Cineworld, the British owner of Regal Cinemas, said it's considering filing for bankruptcy in the US as it sags under a debt load of $5 billion.
- AMC's debt pile is even bigger: $5.4 billion.
To pay down that debt, AMC could raise money by issuing new shares. Except it can't—it ran out of shares to issue and existing shareholders didn't support selling any more out of concerns their equity would get diluted. Enter: APE. How it works APE is a special dividend for AMC shareholders that takes the form of one preferred equity unit. Think of it like a 2–1 stock split: For every common share of AMC you held, you got an equivalent amount of APE. And in the future, you may be able to convert your APE shares to traditional AMC common shares. The similarity to a stock split is why analysts weren't sweating AMC stock's 42% plunge yesterday. When a stock splits 2–1, its share price halves (but the underlying value of the company doesn't change). Big picture: APE is AMC's creative solution to running out of common shares to issue. After handing out 517 million APE units in this first go-round, it still has an allotment of nearly 4.5 billion to sell. If it does so, then the company could raise more money to pay down its debt or make acquisitions that put it in a better position over the long term. Executing on that plan, while perhaps a long shot, would vindicate Aron's controversial strategy of leaning into AMC's meme stock status.—NF | | | You don't have to sit on your hands as your portfolio goes from green to red during a market decline. You can actively hedge your investments with a Fundrise real estate portfolio and instantly improve your return potential. Through the first half of 2022, Fundrise produced its strongest ever relative performance, beating the S&P 500 on an absolute basis by nearly 25%. Public stocks saw their worst start to the year since 1970, down nearly 20%. The average net return for Fundrise investors through the first six months was a resilient 5.52%.* Here's another dose of optimism: Fundrise just posted its 21st-consecutive quarter of positive returns. The real estate assets within the portfolio, currently valued at more than $6 billion, are exceptionally well positioned to outperform the market, even during economic downturns. Don't let current market conditions keep you from building wealth. Sign up with Fundrise today. | | Jim Lo Scalzo-Pool/Getty Images  Fauci is hanging up the mask. Dr. Anthony Fauci is leaving his posts as President Biden's chief medical advisor and the director of the National Institute of Allergy and Infectious Diseases (NIAID) in December, ending his 50+ year run in government service. While many of us know Fauci as the leader of the country's Covid-19 response, the infectious disease expert has combated a range of outbreaks, from HIV/AIDS to Zika, during his tenure working under seven presidents.
🚙 Ford axes thousands of jobs in its shift to EVs. The automaker said it was cutting 3,000 jobs, mostly in the US, because it needed to slash costs for its $50 billion pivot to electric vehicles. "Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century," CEO Jim Farley and Executive Chairman Bill Ford wrote in a memo. The job cuts are primarily coming to units that produce vehicles using internal combustion engines.  Soccer returns to Ukraine. Ukraine's Premier League will start up again today, almost exactly six months since Russia invaded Ukraine. While it represents a bit of normalcy in the war-torn country, it'll be anything but a typical season. Two teams, FC Desna Chernihiv and FC Mariupol, were replaced in the league after their stadiums were demolished in the fighting. And no fans will be allowed into games because of the threat of missile strikes.
| | Anadolu Agency/Getty Images Keep Malcolm Gladwell in your thoughts: Apple employees have launched a petition to push back against the company's rapidly approaching return-to-office deadline. The petition, signed by 600+ people as of Monday evening, is a direct response to an internal memo CEO Tim Cook sent all Apple employees last week, declaring that workers would have to report to the office at least three days a week beginning in early September. According to Cook's memo, the hybrid plan will enhance employees' ability to "work flexibly." Some Apple employees think they're plenty limber already. Posted by a group of Apple workers known as Apple Together (the same group behind last year's #AppleToo movement), the petition criticizes Cook's plan for not considering unique job demands or employee diversity. Signatories demand that employees instead be able to work with their immediate managers to develop flexible arrangements. More than 10,000 Apple employees have reportedly joined a company Slack group called "Remote Work Advocacy." Zoom out: Other major tech companies haven't drawn such hard lines in the sand, re: RTO. Last year, Spotify rolled out a self-explanatory "Work from Anywhere" policy. In May, a prominent machine-learning scientist left Apple for its rival, Alphabet, citing the RTO policy as a primary cause for his departure.—MK | | Let's All Go to the Lobby/Dave Fleischer/Filmack via Giphy The millennial version of the good ol' days—when your MoviePass account gave you the opportunity to see Clint Eastwood's The Mule 30 times in theaters for just $10—may be on its way back. The notorious flame-out subscription service will relaunch in beta form on Labor Day. Beginning this Thursday at 9am ET, anyone interested in giving this toxic ex a second chance can join a waitlist for the coming beta version via moviepass.com. And, lest you were worried, MoviePass promises it's changed for real this time. The service is markedly different from the halcyon days of 2018. - Users can choose from three price tiers: $10, $20, or $30 per month.
- Those tiers will determine the number of monthly credits you receive to put toward movies.
- The card will be black instead of red.
Since MoviePass's fall from grace, several theaters have launched their Own Private MoviePass—AMC Stubs, Regal Unlimited, and the Alamo Season Pass, to name a few—so time will tell if the stumbling cinema market still warrants the existence of this third-party service.—MK | | Francis Scialabba Stat: US home prices have soared to unconscionable levels in part due to a severe housing shortage—but relief might be on the way. 420,000 new apartments are forecast to be built in the US this year, according to RentCafe. Coming on top of 2021's building boom, it would mark the first time since 1972 that more than 400k new apartments were completed in each of two straight years. The top spot for new apartments in 2022 is the New York metro area. Quote: "Without resorting to demagogy or launching ad hominem attacks, there are some behaviors that are no longer acceptable." French transport minister Clément Beaune thinks that billionaires should have to wonder why their luggage ended up in Buffalo just like the rest of us: In an interview with Le Parisien newspaper, Beaune said that private jet use should be restricted due to its outsized impact on climate change. As in the US, Twitter accounts in France have popped up tracking the aerial joyrides of business moguls, such as LVMH founder and Europe's richest person Bernard Arnault. Read: Good conversations have lots of doorknobs. (Experimental History) | | - Three Arkansas police officers were suspended after a viral video showed two of them violently beating a suspect while he was on the ground, with the other officer pinning the suspect down. State police have launched a probe into the incident.
- Elon Musk subpoenaed former Twitter CEO Jack Dorsey for evidence ahead of an October 17 trial over Musk's attempt to pull out of buying Twitter.
- Teachers in Columbus, OH—the state's largest school district—voted to go on strike just days ahead of the scheduled start of school on Wednesday.
- Pfizer and BioNTech asked the FDA to authorize their updated, Omicron-specific Covid booster shot. If given the greenlight, it could be available this fall.
| | Two links for the history geeks: 1) A reconstruction of Aristotle based on his bust and 2) the story of the Tower of Babel, revisited. MythBusters, space edition: NASA says that despite what you might've heard there is sound in space. And it doesn't sound anything like the Guardians of the Galaxy soundtrack. The beer-drinking method that's dividing the internet: Should this baseball fan be put in jail or elected president? | | Brew Mini: "Trevi Fountain city" (four letters) is your sample clue today. Play the Mini here. For the gram Our grammar quiz is back! Below are three sentences that have grammatical or stylistic errors, according to the WSJ stylebook editors. Your job is to find the error in each. - He said according to their initial information, between 90 to 100 people were on board the boat.
- Ms. Loughran had speared an Obama-Biden sign into her suburban home's lawn and waived a handmade placard at the Women's March in New York.
- Analysts say that in both cases, billions of dollars were lost to corruption, which Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, has since sought to reign in.
| | Beyoncé sang about her Birkin bag, which go can for up to $500,000, on her latest album, Renaissance. What sets Birkin bags apart from others from Coach, Gucci, or Prada? Watch here. Check out more from the Brew:  Nora chats with Katie Gatti Tassin, the creator of Money with Katie, about how she turned her side hustle into a lucrative full-time gig. Listen or watch here.
 Leadership is most vital during periods of transition. Prolific economist Tyler Cowen talks about this and more on Sept. 1. Sign up today.
| | 1. Between is used with and, not to. So it should be "between 90 and 100 people." 2. Waved, not waived. 3. Rein in, not reign in. | | | Written by Neal Freyman and Max Knoblauch Was this email forwarded to you? Sign up here. WANT MORE BREW? Tips for smarter living → - Money Scoop: your personal finance upgrade
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