Hi! Comment Apples-tu? Turns out, live translation — one of the buzziest features of the new AirPods unveiled at Apple’s event on Tuesday — won’t actually be available in the EU due to regulatory concerns. Merde. Today we’re exploring: |
- Caught in the web: More than 40% of Americans now report being online “almost constantly.”
- The patty line: Shake Shack is launching a French onion soup burger.
- Peak interest: Governments are facing record debt piles as borrowing costs surge.
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More than 40% of American adults now report being online “almost constantly” |
The world has only been online for a short period of time, relatively speaking. Only 2% of people had used the internet in 1997; by 2019, this figure had ballooned to 53%; and, in 2023, it had jumped again to 67%. Naturally, as internet connectivity has become nearly ubiquitous around the globe, so have the people it connects come to rely on it more relentlessly. On Monday, the Pew Research Center published a survey conducted across 24 countries worldwide that found a median of 28% of adults reporting being online constantly... and 9% reporting not using it at all. |
The data showed greater shares of online adults in wealthier nations, with the lowest reported internet use in India and the three sub-Saharan African nations surveyed. |
Of all the countries surveyed, Japan had the highest rates of frequent internet usage, with 56% of adults overall reporting being almost constantly online. However, among wealthy countries, Japan also saw the greatest share of people reportedly abstaining from the internet entirely (14%). Considering that the country is so technologically advanced — shattering the internet speed record this summer at 4 million times the average US broadband speed — a number of these could well be “neo-Luddites” opting for a simpler, less digitally governed life. But other highly developed countries with large shares of internet non-users, like Italy and Hungary, also tended to have rapidly aging populations. For Japan, then, it’s perhaps more likely that members of its graying demographic are simply continuing their lives as they’ve largely known it: without the internet. |
Shake Shack is launching a French onion soup... burger |
While many fast-food chains double down on value options, Shake Shack is going in a different direction, betting on premium menu items to lure customers in. After launching a ~$10 “Dubai Chocolate Pistachio Shake,” which helped boost its second-quarter earnings, Shake Shack is back with another indulgent “innovation.” This time it’s a French onion soup burger — which sounds, of course, completely insane, but is basically just a burger topped with Gruyère cheese, caramelized onions, and roasted garlic Parmesan aioli. | America’s favorite sandwich |
The soup-burger idea is only the second offering from Shake Shack’s longer commitment to a premium limited-time menu, with the company now “locked and loaded” with plans for new items over the next 18 months. In America’s burger market, Shake Shack occupies an interesting space: toward the premium end of the “I fancy a quick burger” scene. By going all-in on that niche, the NYC-based chain will be hoping to reinvigorate growth and squeeze more sales out of each of its stores. Data from QSR reveals that the average Shake Shack store generated $3.9 million last year, the fourth-highest average unit volume (AUV) of all burger chains tracked by the magazine. |
That figure is some ways off from best-in-class rival In-N-Out, which sold a whopping $5.24 million worth of burgers, fries, and drinks in each of its stores last year, per QSR. With beef prices continuing to climb — rising ~14% in the 12 months to August — adding onions and cheese to a burger, rather than more beef, is a smart upsell. Will it be enough to drive customers back to Shake Shack and get its AUV closer to In-N-Out’s? Only time will tell. |
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ETF Investors, There’s A New Way To Bitcoin |
Bitcoin’s rollercoaster returns have sent rumbles through the investment community for years. The world’s largest cryptocurrency outperformed US equities by nearly 5x last year. But wide measures of periodic outperformance have come back-to-back with intermittent drawdowns, leaving many investors looking for a way to manage volatility and capture upside potential. |
Past performance is not a guarantee of future results. Index returns are for illustrative purposes and do not reflect any fees or expenses. Asset classes represented as follows: Bitcoin, Bloomberg Bitcoin Index; U.S. Equities, S&P 500; EM Equities, MSCI Emerging Markets Index; REITs, MSCI US REIT Index; US Bonds, Bloomberg US Agg Total Return Index; Treasuries, Bloomberg US Treasury Total Return Index; Commods, Bloomberg Commodity Index; Gold, S&P GSCI Gold Index. |
Bitcoin Covered Call ETF (BCCC) from Global X seeks to turn Bitcoin’s volatility into an asset. It’s a new, actively-managed fund that provides exposure to Bitcoin exchange-traded products (ETPs) while employing a partial covered call strategy. This may help to: |
- Capture a portion of Bitcoin’s capital appreciation1 while seeking to manage its inherent volatility through the pursuit of options premiums and distributions.
- Get synthetic exposure to Bitcoin’s ETP price movements in an efficient ETF wrapper, without owning the coin.
- Receive potential distributions from collection of options premiums, which the fund aims to distribute on a weekly basis.
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1 The Fund does not invest directly in Bitcoin. |
Concerns about rising government debt are not strictly an American problem |
After years of cheap money, the cost of borrowing for many governments is going up. Sticky inflation, ballooning deficits, and political instability have all driven bond yields higher — the market's way of saying that investors need bigger returns to be comfortable lending to governments. Earlier this month, long-term borrowing costs surged across the globe, with UK 30-year gilts jumping to late-1990s levels, German Bunds hitting their loftiest since 2011, and France’s 30-year bonds reaching a 14-year high. Even Japan — long synonymous with rock-bottom yields — saw its 20-year bonds climb to their highest point since 1999. In the US, 30-year treasuries hovered near 5% last week, the highest since July and a threshold rarely touched in the 2010s (though they have since retreated). Indeed, global public debt has continued to swell to an almost-comically large figure, reaching a record $102 trillion last year, per UN data. |
Global public debt can be a hard concept to get your head around. Planet Earth doesn’t owe that money to Mars — instead, it’s the sum of government debt worldwide. Roughly 70% of that is owed by developed countries, where the problem isn't just how big the debt pile is, but how costly it's become to carry it. Last year, the US spent a cool $882 billion — more than it spent on defense or Medicare — on just the interest on its debt, which contributed to Moody’s stripping the country of its last AAA credit rating. But developing economies are feeling the squeeze even harder. Over the past 15 years, their debts have mounted at a "record-setting clip," according to a June analysis from the World Bank Chief Economist Indermit Gill, leaving them with roughly 50-50 odds of a financial crisis. |
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- Slimming down… Ozempic maker Novo Nordisk is slashing 9,000 jobs — just weeks after canceling new-hire contracts — in a cost-saving push amid rising competition.
- Bulking up… Coffee prices surged 21%, beef climbed 14%, and electricity bills hit a two-year peak in August, according to the latest US Consumer Price Index released Thursday.
- The DoJ is suing Uber over claims that the ride-hailing giant routinely discriminates against passengers with physical disabilities.
- Mega-hyphenate: Shares of Warner Bros. Discovery soared ~30% yesterday after the WSJ reported that Paramount Skydance is preparing a takeover bid for the media company.
- Kodak’s $30 palm-sized retro cameras have sold out within days, tapping into Gen Z’s latest fixations: vintage vibes and blind boxes.
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Compared to equities, gold, and bonds, Bitcoin has historically shown a lot more volatility. If you’re looking to get indirect exposure to the coin’s movements while aiming to manage that volatility, Global X’s Bitcoin Covered Call ETF (BCCC) could be the place to start.2 |
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Off the charts: Which billionaire saw their fortune jump by the biggest single-day gain ever this week, briefly overtaking Elon Musk as the world’s richest person? [Answer below]. |
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Important Information 2 Bitcoin and bitcoin futures are a relatively new asset class. They are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment. Investing involves risk, including the possible loss of principal. BCCC is actively managed and invests in options contracts on one or more bitcoin exchange-traded product (ETP) that invests principally in bitcoin futures contracts or invests directly in bitcoin. BCCC does not invest directly in or hold bitcoin. The price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin. These differences could be significant. Bitcoin futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund's performance and its ability to achieve its investment objective. Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin and bitcoin futures are subject to rapid price swings, including as a result of actions and statements by influencers and the media, changes in the supply of and demand for bitcoin and bitcoin futures contracts and other factors. BCCC's concentration will subject it to loss due to adverse occurrences that may affect that sector. Investors in BCCC should be willing to accept a high degree of volatility in the price of the fund’s shares and the possibility of significant losses. BCCC engages in options trading. An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date. A covered call option involves holding a long position in a particular asset and writing a call option on that same asset with the goal of realizing additional income from the option premium. BCCC establishes its "long" position through the combination of purchasing call options and selling put options on the Bitcoin ETPs. As a buyer of call options, the Fund pays a premium to the seller of the options. The fund then also sells call options to establish the "covered call". By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying asset above the exercise price, but continues to bear the risk of a decline in the asset. A liquid market may not exist for options held by the fund. While the fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below the asset's current market price. BCCC is non-diversified. Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses,which may be obtained at globalxetfs.com . Please read the prospectus carefully before investing. Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. |
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