The Best One Yet - Microsoft’s new “Phonebook”, Chipotle’s anti-breakfast carne asada strategy, and the World Trade Organization’s major decision

Episode Date: October 3, 2019

Don’t call it a phone — Microsoft just cooked up a 2-part foldable phone that creates a whole new product category (its mojo is back). The World Trade Organization (WTO) just decided on a 15-year trade dispute between Boeing and Airbus that reveals how trade conflicts should go down. And Chipotle’s new-ish CEO makes a bold move during the breakfast wars — focus on dinner and everything the previous CEO wouldn’t do.Learn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. This is snacks daily. It is Thursday, October 3rd. Today, Mean Girls Day? It's actually Mean Girls Day. Wow. There you go. It's also the best snacks daily. We've ever put together, Jack, what's going on? Well, October has been very bad for stocks. Can we talk about the first two days of the month? The Dow is down 800 points in the first two days. That's about 3%. It's all over worries that the global economy has lost its mojo. Yeah. It might be slowing to like a no-growth halt. But we've still found three wonderful snores at Snacks Daily. Jack can hit us with the first. First, Microsoft just unveiled a new category of electronic device.

Don't call it a phone. Don't call it a laptop. Don't call it a anything. I want to call this thing. You ready for it? Hit me with it. A phone book. It's basically two smartphones.

Put it to what. Not the yellow pages, not the white pages. The Microsoft page. Second story, Jack. The WTO, the World Trade Organization, is the world's economic referee and just declared a personal foul on Europe. True. Whistle?

This story is about Airbus versus Boeing and global jumbo jets. Third and final story, Chipotle has a new plan for. for how to win the breakfast wars. Here it is. Don't enter the breakfast wars. Don't enter that. Avoid the breakfast competition and go big on steak for your burrita.

So we're focusing on their Karnay Asada strategy. But before we get into all that, we know what you're thinking. It is probably too late to have booked the holiday trips around here. It's over four digits for sure. I'm looking at flights back to New York. I'm like, oh, yeah, no problem. Oh, $50,000 for a backseat comfort economy.

No, I see between the two lavatories. Oh, that sounds fantastic. I can't afford this thing. So kayak, the travel site, came out with an early list, right on time, actually, of the holiday hacking travel list. Yeah, while you're putting together a sidehouse list so you can afford to go home and see your family, here's their advice. What's the first one?

First one is if you want to go abroad, travel internationally for Thanksgiving, you should book by the third week in October. Okay, who travels internationally during Thanksgiving? It seems like a fake point here. File that one in the useless advice category. Completely disinterested in leaving the country. Now, the next one's a bit more useful. If you're traveling home for Christmas, you better book by what date?

October 7. Which is really coming up quickly. Yeah, someone must have crunched the numbers and figure out October 7th is when it switches from very expensive to insanely expensive. This weekend, there's going to be like a lot of couples getting together where like, one person's being like, we've got to book this. Other person's not a planner. One person's a planner. A lot of conflict there. Finally, this last one you might have heard before. But if you're traveling for the holiday, the cheapest day is to travel on the holiday. Kind of meta here. Do it on the holiday if you want to enjoy the holiday. Now, Delta's Union of Vegan Pilots loves to travel on things. Great guru right there.

You're out of that turkey and gravy. It's a awkwardness. Smart move. In the meantime, good luck with your holiday bookings, everyone. You're tuned in the snacks. Snacks about the hair ain't food. It's air candy. They don't reflect the views of the Robberhood family.

It's all informational just so. You know, we're not recommending any securities. Nope. It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible. Business news for you.

Robahood Financial, LLC. L-L-C. Member FINRA. Slash S-S-I-P-C. For our first story, Microsoft just unveiled not a new phone. It's not a new phone. Don't say phone. Don't say phone.

It's putting his finger on my lips. It's not a phone right now. It's a whole new category of product. It's a totally different thing. And it's a perfect time of year to do this because it's not the holidays. It's pre-folage post-labor day. It's product on vassies. It's time to tell people what they should consider buying two months from now.

So at Microsoft's big product event, yes. Yep. We got the new tablets. New stuff. We got the new computers. Okay, to wow me now. We saw Common do something about how cool surface tablets are. Tablets, you know, saving like leopards and snow lions.

AI. Microsoft is saving the world. You've seen these commercials. I don't know. I can't play along with it. But then we saw a new product that we couldn't put into any bucket. This shocked people, the name, dual screen, surface duo. It is a laptop computer, smartphone, tablet thing.

This is like an Harry Potter when they're like, it's the thing with Hath, no, name and cannot be that thing. I think you're mixed up fantasy stories there. But basically, you're looking at this thing, it's got a 5.6 inch screen, right, Jack? Yes, but it's not just one 5.6 inch screen. Don't just stop there. There's more. There are two 5.6 inch screens with little hinges in between like a door, like a little spine or like a magazine situation. It's smarter than the iPhone 11, but there are two of them. Yes, there are two phones just as big, almost as big as the iPhone 11.

Now, while that have hinges, Jack and I are reading this are like feeble mortal minds are trying to like visualize what this looks like. We look like we're playing charades and- picture that. Indicating that we're opening a book. Put your hands next to each other and then flip them all the way around because that's what this thing can do. Yes.

The hinges can rotate 360 degrees. So it can fit in like your pocket and sort of look like a thick smartphone. Yeah. Or you can open it up and it's like a full tablet. Like a book. Or you can put it on your desk, fold it up and then it's like a laptop. You should be doing QVC, dude. I don't know what you're doing here on Snacks Dale.

Now, Microsoft's CEO. Sacha Nadella says this is the most productive device ever because you'll be able to run two apps on the same phone. One on one screen. One on the other. My question, I don't need two tabs open on a smartphone. Yet. You don't need it yet. And now you have the option.

Apparently, we're about to hit a new realm of productivity on our smartphones. And I'm nervous about this. There's no name for this new category of device. But I'm telling you what they got to call. Can we call this? What are you going to call? The phone buck. Exactly.

Those things don't exist. anymore, they need to come back. Someday Strong guys are going to try to rip this phone book in half to prove their strength. But the big surprise here wasn't just this dual phone situation. No, it's the fact that Microsoft isn't doing the software. Right. Microsoft has always been known for the software. They left the hardware to everyone else. Bill Gates became the richest person in the world on software.

Back in the day, Nick, you didn't get a Windows computer. You got a compact, an HP. I was a lie right now. A gateway. Dude, you're getting a Dell. There was no such thing as a Windows. Windows computer. It was just the software. Now Microsoft is doing the hardware in this case, and they're not doing the software. So who's doing the software? Google. Exactly. Google's

Android operating software. Basically, they said, hey, we want to partner with Google to make the absolute best of Android and take it to this phone. That's because only two operating softwares exist for smartphones. 13% of the world is running on Apple. Yes, iOS. And the other 87%, virtually all other smartphones are run by droid. Exactly. That doesn't leave much room for a new one. virtually all of the rest, the other 87%, is running on Android, which is owned by Google. So, Jack, what's the takeaway for our buddies over at Microsoft? This is Microsoft getting its swagger back. Microsoft acquired Nokia in 2013, kind of sold it back, then it killed its Windows phone in 2017,

but the stock's up 90% since then. Yeah, so it had this giant smartphone debacle failure, but it's at its best. It's over a trillion dollar value because it's focused on two non-phone things. The first is Enterprise. Which is software for businesses. And the second is cloud. Which is software for businesses. Yeah. It's storage.

Digital storage for business. But it's for businesses. So Microsoft is looking at Apple right now, and they're like, anything you can do, I can do. Not better, but I can do it. And that's why they just came out with the phone book. For our second story, the World Trade Organization, the old WTO, just sided with the U.S. in a big fight against Europe's Airbus. Yes. Europe's Airbus is called Airbus.

Airbus. It's basically the Boeing of Europe. Yeah, pretty much. Now, Snackers, we're not talking about the NWO of the New World Order. We're talking about the WTO. Yes, the NWO is a band of antisocial wrestlers from the old WWE. Of course. The WTO, on the other hand, is a club of 164 nations.

More coffee, more formal. That have all agreed to global trade rules. And these guys have gotten together since 1995. And their ultimate goal is peace. This is a really interesting point that you got to nail down when it comes to, like, big global organizations. When nations are trading with each other, like imports and exports, they are much less likely to go to war. Great example of this, the European Union. Europe used to have, like, wars all the time. Yes, and since the European Union, when trade has been encouraged, remember your old textbooks?

There's been no world wars or fights between Germany and France. These guys, those guys, everyone's fighting. So the WTO, it acts as a referee in disputes between nations. And it just decided that Europe has been unfairly subsidizing Airbus. Yes. The U.S. and Europe basically are two kids in a fight. Yep. WTO is like the parent that says,

Hey, settle on. Jimmy, I'm going to pull over. Go to your room. Now, no dessert. Timmy, you get extra dessert because Jimmy was wrong. I don't know if that's the best parent. Yeah, I'm not a parent. Yeah, we don't do this.

So the WTO had a panel of judges come together, and the judges are from all of the member nations. This is straight up like winning at the Olympics where they all walk in in the ceremony with the flags. You know what I'm talking about? You got Norway. You got Trinidad and Tobago. You got Ecuador. Those are random countries, but you also got big ones like the USA and China.

Exactly. And what the WTO has just decided is that the United States is allowed to impose tariffs against Airbus because of what Airbus and Europe had been doing to Boeing. Right. So Europe has been hooking up Airbus with all these subsidies so it had an unfair advantage against Boeing, which is American Bay. Which is the United States' big jetmaker. Now, it wasn't just Boeing and Airbus that were involved here. technically Delta American Airlines, their stocks fell too. Right, because they buy loads of planes from Airbus.

You know those A320s that you fly out? Seven-something-somethings and then you got the A3-somethings. The 7-7-somethings are Boeing. The A-whatever is Airbus. And those are going to be more expensive for Delta and American because of these new tariffs that just got announced yesterday. So, Jack, what's the takeaway for our buddies who are everyone? This is how trade disputes are supposed to be resolved.

Even though this took like a really long time. Get this, Snackers. The complaint filed by the United States to the WTO. It wasn't last month. It happened before President Trump came to office. Wasn't like five years ago either. It happened before President Obama came into office. Wasn't 10 years ago either.

It was 15 years ago that this complaint was initially filed. It takes a long time, but the WTO resolved this international trade dispute peacefully. And by the book. So they decided Europe was wrong. and the penalty is tariffs on $7.5 billion of air buses. The only issue here is that everything has kind of become political lately. So it's not just that Boeing and Airbus are battling each other. You also have issues like worker wages and profits maybe not being distributed to workers.

And everyone just thinks it's a zero-sum game where my victory is your loss and your victory is my loss. So the U.S. immediately imposed new tariffs against Europe worth $7.5 billion. And guess what? Europe is expected to make the same exact component. complaint against Boeing because the United States subsidizes Boeing as well. So even though the WTO was able to resolve this conflict, the result was just more tit for tact. The new normal.

For our third story, Chipotle just introduced a limited time menu item for like the first time in a year. Carnet Asada. Exactly. By way, Jack, Chipotle, when it comes to Chipotle, are you a burrito or a bowl guy? At Chipotle, I'm a bowl guy. He's thinking hard. He's thinking hard.

I want a crispy tortilla. Jack, you know the way. I want a crunchy tortilla. Like, I want the Tocherea Cancun. I get it. Jack, here's how I live my life. Bowl on the weekdays, burrito on the weekends. Nick likes rules.

That sounded cool. The CEO took over Chipotle after a lot of turmoil. And we're talking the food crises. His name is Mr. Nicol, Brian Nicol, and he's had a lot of success today with a couple of key things. Well, the stock was way down when he took over because of no-ro virus and e-coli in the kitchen. Now he's introduced like a loyalty app and Chipotle lanes for takeout. Great name. Another word for drive-through.

But he's also doing some things to, like, mix up Chipotle lately that are very bold. Exhibit A. The Breakfast Wars? We told you about him. It's kind of perfect that today is Mean Girls Day because everybody's doing the breakfast wars. We got Wendy's. McDonald's is doing donuts sticks for breakfast. Starbucks.

Duncan's doing bowls. So last week, Brian Nichols said this when it comes to breakfast. We are not going to be doing breakfast anytime soon. Nope. They're doing the exact opposite. But wait, there actually is one exception. There's one exception. That's true.

Dulles International Airport in Washington, D.C. Very true. Snackers, anybody going through, check out the Chipotle because it's the only one in the nation that serves a chorizo breakfast barri-a. Well, there's a rule for that airport. If you have that precious restaurant space, you need to offer three meals for travelers all day. So apparently, Chipotle's just doing it there. For everyone else, though, they're doing no breakfast.

They're doing the opposite meal. Dinner. They're focusing on dinner, especially takeout and delivery. Dinner, dinner, dinner. So last week, they began selling Karnay Asada for a little. limited time only across a bunch of chipoles. A couple weeks ago on this pod, we asked what Karnayasata meant in Spanish. Yeah.

Ricardo from the city of Juarez on the other side of the Rio Grande. Yes. Told us, it basically just means grilled steak. Yeah, they added lime juice and cilantro and that's how they cooked up, you know, this new Chipotle, Carniacada. New item menu, so you get barbacoa, you get carnitas, you get chicken, but you also get Carniaz out. And it fits with Brian Nichols's, like, new strategy

of like promoting something, publicizing it, making it exclusive, getting a lot of attention, and hoping you come back in. So, Jack, what's the takeaway for our buddies over Chipotle. Carni Asada isn't just grilled steak. It's also an executive milestone. We said Brian Nicol was the newish CEO

because the old CEO was totally against everything Brian's doing, like limited time offers of new food items. The old CEO figured if you bring something in for the short term, yeah, you might gin up some fun. Hey, you guys hear about this carnage asado for Chipotle? But that buzz, although it might lead to short term revenues,

it'll disappoint customers in the long term when they come back and it's not there. What do you mean? There's no more carnage as far. out of here at Chipotle. Now the new CEO, he recognized a problem from Chipotle, not just E. coli, not just no virus. Menu fatigue. That was a big problem. They hadn't changed the menu up. People were tired of what was on the menu. And we're tired of hearing like, yeah, we get it. Gwok is $2 extra. Let's move on. So this one new item, Carnitasada, it represents a major structural

shift about the menu and the whole business model. It's not just beef. Jack, can you whip up the takeaways for us over there? Microsoft is back, baby. Oh yeah. With the phone buck, a.k.a. The dual screen surface duo. Multitasking is like a requirement if you're going to use this thing, first of all. The WTO is the global referee of economics and just ruled that the USA may impose tariffs on Europe's Arabi. This thing took forever to decide, but it's happened, and this is how trade should be. Tripoli is spicing up its menu with Carnay Asada. And the new CEO is using steak to redo how the old CEO did things.

Snackers, time for our snack factor date. This one is particularly special. Renato Villanueva works at D. Divi, which is based in San Francisco, but he's in the Salt Lake City office. Very true. And it's not just Renata who wanted to send this one in. No, it's more than Renata. It's the whole finance team. It's the whole team of Divi.

It's a snack pack. It's a snack pack over at Divi. Snackers at Divi. We love you guys. We appreciate this snack fact. Here's the deal. Plastic is getting a lot of hate right now. You've got plastic straws getting banned.

You got paper straws coming to Starbucks. People are turning to like alternatives. They're looking at things also like aluminum. It's getting a lot more love lately. I think PepsiCo is like getting rid of first use. virgin plastic for bottles. Yeah. Switching to aluminum. I'll go with you on that. Now, none of them are actually perfect, but an interesting point here about aluminum and how it could be better for the environment than plastic. Well, 75% of the aluminum ever produced in the United States

is still in use today. Now, we know what you're thinking, plastic's probably less or lower. It's a lot less. It's a lot less. A lot lower. It's 9% of plastic is still in use today that has been produced. Aluminum is much easier to recycle and reuse than plastic. Plastic is much easier to throw in landfill. Renato, thanks so much to you and your team for the snack fact. Other snackers, send us your snack facts at Robin Hood Snacks. This snack has been tasty, incredible, delicious. You guys look fantastic. Let's do this tomorrow. See you that. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets,

or any of its subsidiaries or affiliates. The podcast is for informational purposes only. is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC member FINRA SIPC.