Good morning readers. Welcome back to the work week. In case you were living under a rock for the last few days, here’s an update on what went down. On Friday, most of North America experienced a massive IT outage that’s now being dubbed one of the biggest (if not the biggest) outages to have ever happened. Several industries were impacted (and faced the blue screen of death), including: airlines, banks, healthcare and government to name a few.

• Major airlines in the U.S. had to ground thousands of flights in a matter of hours. The top three major airlines in the U.S. (United, Delta and American) had to stop roughly 9,200 Friday morning

• Banks could not process or execute on trades for the day

• Hospitals had to reschedule major surgeries

As of this morning, CrowdStrike is operating normally, with no major issues being reported.

Let’s jump into today’s storylines.

In today’s digest:

• Biden drops out of the Presidential race

• Headline Hustle: WSJ reporter gets sentenced to 16 years in a Russian prison, Disneyland employees authorize the first strike in over 40 years, Elliot Management acquires stake in Starbucks to turn it around

• Story #2: Starbucks is changing its personality

• The Week Ahead: What to Expect

• Pulse Points: What’s Trending

POLITICS

Biden steps down, Harris steps up

President Joe Biden announced on Sunday that he’s bowing out of the 2024 presidential race, setting the stage for Vice President Kamala Harris to take the lead. Biden’s decision, revealed in a heartfelt social media post, marks a major pivot in his long political career and stirs up the Democratic game plan just as the election season heats up.

The last straw

Biden’s choice came on the heels of a challenging debate with Donald Trump this June, where he struggled to deliver his points with the usual sharpness. His performance raised serious questions about his stamina and readiness for another term, especially when stacked against Trump’s more polished appearance. This moment was a wake-up call for many in his party, leading to a wave of pressure for a fresh face at the top of the ticket.

Here are some other key moments that led to Biden’s withdrawal:

• July 3 – big democratic donors including Reed Hastings calls on Biden to step down

• July 5 – Biden gets interviewed by George Stephanopoulos

• July 11 – Biden accidentally calls Ukrainian President Zelensky “Putin” at a NATO presser

• July 13 – assassination attempt on Trump’s life at the Penn rally

• July 19 – Biden says he will not step down as at least 25 lawmakers call for him to step aside

With Biden stepping aside, he’s thrown his full support behind Harris, setting her up as the Democratic frontrunner. The endorsement has already been backed by a roster of key Democrats, signaling a quick shift to get Harris’s campaign moving full steam ahead. If she secures the nomination, Harris would make history as the first Black woman to lead a major U.S. party into a presidential election.

The Democratic Party has a big task ahead: They need to rally around Harris, realign their strategies, and prep for what’s shaping up to be a fiercely competitive race. With 107 days left to election day, Harris now faces the daunting task of quickly crafting a compelling campaign message that resonates with voters, capitalizing on her new role to energize the Democratic base.

IN THE KNOW

Headline Hustle

⚖️ Wall Street Journal Evan Gershkovich sentenced to 16 years in a Russian Prison . Evan Gershkovich, arrested on espionage charges in Russia, has been found guilty and sentenced to 16 years in prison, a verdict denounced by the U.S. government and supporters as a sham. The journalist was accused of spying for the CIA, but no evidence was provided. The case, seen as politically motivated, raises concerns about Russia using detained foreigners as bargaining chips. The U.S. government, the Wall Street Journal, and advocacy groups are calling for his immediate release.

🎢 Thousands of Disneyland employees vote to authorize a strike, the first in 40 years. Thousands of Disneyland employees have voted to authorize a potential strike over low wages and poor working conditions. Despite recent wage increases, many workers say they still struggle to afford basic living expenses. As a result, the union is pushing to address unfair labor practices and secure better pay. While Disneyland officials emphasize the need to maintain guest experiences and are in ongoing negotiations, the strike, if it happens, would be the first in 40 years, highlighting significant issues in employee welfare at the resort.

☕️ Elliot Management acquires stake in Starbucks to try and turn it around. Elliott Management has acquired a significant stake in Starbucks and is engaging with management to boost the company's share price, according to reports. Starbucks has faced several challenges, including disappointing quarterly results, falling same-store sales, and leadership changes. The company's CEO is under pressure to improve store performance. Starbucks shares jumped over 6% following the news, although specific demands from Elliott remain undisclosed.

BUSINESS

Starbucks is having an identity crisis

Remember the days when Starbucks was less about the hustle and just a chill spot to unwind? Those days are sipping into the sunset. Starbucks, once the quintessential "third place" between work and home, is now more of a grab-and-go hub, with the plush armchairs giving way to a high-speed service model.

Under Howard Schultz's leadership, Starbucks was more than a coffee shop; it was a community space where people lingered, chatted, and enjoyed the vibe. Fast forward to today, and the scene is starkly different. With over 70% of transactions now whipped up through mobile orders and drive-thrus, the personal touch—like baristas writing your name on your cup—has been swapped for efficiency.

Driving through change

In the '90s, Starbucks hesitated to embrace drive-thrus, fearing it would dilute their community coffeehouse charm. But customer preferences steered towards convenience, and by 2005, drive-thrus were popping up faster than foam on a cappuccino. Today, they're a staple at 70% of Starbucks locations.

Then there’s mobile.

• Launched in 2014, Starbucks' mobile ordering system was a leap towards modernizing customer interactions.

• Initially a convenience, it became a necessity during the pandemic, ballooning from 17% to 26% of sales by 2021.

• Yet, this shift towards digital convenience has side-stepped the sit-down experience Starbucks was known for.

Looking ahead: Starbucks claims it's redefining the concept of 'third place'—no longer just a physical space, but a feeling. But can a feeling substitute the tangible warmth of a coffee shop that feels like a second home?

WEEK AHEAD

What to expect

• Wall Street second-quarter earnings reports come in this week. Companies include: Alphabet, Tesla, Spotify on Tuesday, Santander, Deutsche Bank, AT&T on Wednesday, Lloyds on Thursday, NatWest on Friday

• Notable political events in the U.S. this week are: Israel’s Prime Minister Benjamin Netanyahu is in Washington this week to discuss “establishing just and lasting peace in the region”

• U.S. economic data comes out this week: Investors are anticipating potential Federal Reserve interest rate reductions in September

• Bank of Canada could announce a second interest rate cut this week

• The Paris Olympics opening ceremony is this Friday: Ceremony will take place along the Seine

SNIPPETS

Pulse Points

• The Federal Communications Commission aims to standardize the wait time for consumers to unlock their cell phones to switch carriers.

• Incoming Utah State cornerback Andre Seldon Jr. died Saturday in an apparent cliff-diving accident at a reservoir near the school's campus, the university said in a statement.

• Over the weekend, Warren Buffet’s Berkshire Hathaway offloads $1.5 billion of Bank of America stock. The company now owns 999 million shares of B of A.

• The Secret Service confirmed to NBC News that it has denied some of former President Donald Trump’s requests for additional security resources over the past two years.

• Esta TerBlanche, the South African actress renowned for her role as Gillian Andrassy Lavery on “All My Children,” has died at age 51, according to her manager.

Was this email forwarded to you? Feel free to sign up using the following link: https://www.pulseofprogress.info/

⚡️ Want to feature in this newsletter?

Elevate your brand's visibility to over 7,000+ decision makers by partnering with Pulse of Progress and seize the chance to connect with our rapidly expanding, highly engaged audience! Reach out for more details.