The lowdown

Here’s what you missed while you were off the clock:

• 📈 All Eyes on US CPI Data, Bank Earnings Kick Off Q4 Season
  Investors are watching closely as the latest CPI report could reveal whether inflation is cooling and influence the Fed’s next moves. At the same time, major banks like JPMorgan, Citigroup, and Wells Fargo are preparing to release Q4 earnings, offering a pulse check on the financial sector amid economic uncertainty.

• ☕ Starbucks Reverses Its Open-Door Policy, Requiring People to Make a Purchase If They Want to Stay
  Starbucks is rolling back its 2018 open-door policy, now mandating that only paying customers can use its cafes and restrooms. This shift aims to enhance the in-store experience for patrons and staff, addressing concerns over safety and the store environment that have arisen since the original policy's implementation.

• 💴 JPY Rises Amid Risk Aversion
  The Japanese yen is gaining strength as investors flock to safe-haven assets amid global economic uncertainties. This surge reflects heightened market caution, with traders seeking stability in the yen.

Featured story

The Barrel Break: Jack Daniel’s Parent Company Faces the Heat

Whiskey giant Brown-Forman, the name behind Jack Daniel’s, just dropped a bombshell: they’re slashing 12% of their global workforce and shutting down their iconic Louisville barrel-making plant. This move is set to save the company $70-$80 million annually but comes at a steep cost—210 local jobs and a historic piece of their bourbon-making tradition. Brown-Forman says it’ll now source barrels externally, a shift that has bourbon fans raising their eyebrows over what this means for quality.

So, what’s driving the cuts? It’s a cocktail of tough challenges: younger generations are sipping less whiskey, the U.S. liquor industry is staring down renewed tariff threats, and new alcohol alternatives are crowding the market. Add to that the 14.3 million barrels of bourbon aging in Kentucky warehouses—an industry record—and you’ve got a recipe for potential overproduction. With EU tariffs on American whiskey set to spike to 50% in March, things could get even harder for brands already reeling from declining sales.

For Brown-Forman, the focus now is on “evolving to thrive,” with plans to reinvest savings into growth strategies. However, the broader picture is clear: the American whiskey industry is facing tough sledding. From shifting consumer habits to regulatory challenges, brands like Jack Daniel’s are being forced to adapt—or risk being left behind in an increasingly competitive market.

Here’s what we’re reading this week:

• ✈️ Arizona Republic:
  A United Airlines flight had an unexpected run-in with a coyote during takeoff in Phoenix, a rare and wild twist for the aviation world.

• 🏠 Realtor.com:
  Homeowners across the U.S. are feeling the pinch as HOA fees rise faster than inflation, sparking questions about where all that extra money is goin

• 🌸 Fast Company:
  In a desperate battle against wildfires, Los Angeles is being coated in pink flame-retardant spray—a vivid reminder of the city’s ongoing fight to protect lives and homes from devastating blazes.

Off-balance sheet items

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  Credit: Cheezeburger.com

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