Good morning readers. McDonald's might need to rethink its chicken sandwich game in the EU after losing its trademark grip on the 'Big Mac' label. Now, any chicken sandwich in the bloc can use the moniker, courtesy of a ruling from an EU court. This poultry victory sprouted from a battle with Irish fast-food chain Supermac’s, which has been itching to expand its wings across Europe. While McDonald’s still reigns supreme with beef burgers, Supermac’s is feeling pretty plucky about the outcome. With the spat now in the EU court’s frying pan, McDonald’s has some soul-searching to do within the next two-and-a-half months before they can cry foul and appeal.

On a similar note, were we the only ones that no idea they had chicken Big Mac’s in Europe? And why don’t we have one? Would you try a chicken Big Mac? Let us know by replying to this email. We’d love to hear your response.

Let’s jump into today’s storylines.

In today’s digest:

• Texas is starting its own stock market

• Headline Hustle: Bank of Canada cuts interest rates as first G7 Central Bank to ease policy, Boeing Starliner launches with NASA astronauts, Senate Republicans block bill protecting access to contraception

• Lululemon is no longer the king of athleisure

• Pulse Points: What’s Trending

FINANCE

Texas eyes Wall Street's throne with a stock exchange of its own

As the saying goes, everything's bigger in Texas—including their ambitions to corral a piece of Wall Street's action. With a swagger that could rival any Wall Street bull, the newly minted TXSE Group is gearing up to challenge the titans of trade in New York, backed by financial behemoths like BlackRock and Citadel.

The challenger from Dallas

With an impressive war chest of $120 million and a coalition of over two dozen investors, the TXSE Group is poised to become the most well-capitalized newcomer to seek SEC registration. "Texas and the other states in the southeast quadrant have become economic powerhouses," proclaimed founder and CEO James Lee. His vision? A national stock exchange that capitalizes on the region’s booming private equity landscape, where over 5,200 companies might be eyeing public prospects.

The push for a Texas-based exchange couldn't come at a more critical time.

• Since the mid-90s, America’s public company count has halved, not due to a shrinking of industry but because the pressures and costs of public life—intensified regulations, shareholder activism, and the relentless cycle of quarterly reports—have pushed companies to remain private.

• Today, private equity-backed firms outnumber publicly listed companies five to one, a shift that has stretched the average tech firm’s public debut from four to eleven years.

But why now? Why Texas?

TXSE aims to ease the difficult path to going public. By offering more predictable listing standards and associated costs, they intend to lure companies back to the trading floors.

As the U.S. boasts other exchanges from Philadelphia to Miami, the exchange plans to focus on elevating local businesses in Texas and the surrounding areas, making it a pivotal player in reshaping how and where America trades.

The future of finance: As Jamie Dimon of JPMorgan Chase warns, the shrinking public market is a trend we must address. The TXSE might just be the catalyst needed to turn the tide.

IN THE KNOW

Headline Hustle

🇨🇦 Bank of Canada cuts rates becoming the first G7 Central Bank to ease policy. The Bank of Canada cut its main interest rate by a quarter percentage point to 4.75%, becoming the first G7 central bank to provide rate relief amid easing inflation. Governor Tiff Macklem indicated further cuts could follow if inflation continues to decline. The cut comes as Canada faces high household and corporate debt levels and a wave of mortgage renewals. The Canadian dollar weakened slightly, and bond yields fell following the announcement. Canada's GDP growth and job market have been sluggish, adding pressure for rate adjustments.

🚀 Boeing Starliner launches for the first time with NASA astronauts. Boeing successfully launched its first crewed Starliner flight on Wednesday, beginning a critical test of the delayed spacecraft. The launch from Cape Canaveral, Florida, carried two NASA astronauts to the International Space Station. Previous attempts were aborted due to technical issues. This mission aims to certify Starliner for regular NASA use, despite Boeing's setbacks and competition from SpaceX. Astronauts Butch Wilmore and Suni Williams are on board, with Starliner scheduled to dock at the ISS on Thursday.

💊 Senate Republicans block bill protecting access to contraception. Senate Republicans blocked a Democratic bill to protect nationwide access to contraception, including emergency pills like Plan B, with a 51-39 vote falling short of the needed 60. The measure aimed to highlight GOP opposition to reproductive rights ahead of the fall election. Democrats argue it exposes GOP extremism, while Republicans claim there’s no real threat to contraception access. The bill’s failure reflects ongoing tensions over reproductive rights post-Dobbs v. Jackson Women’s Health Organization.

BUSINESS

Lululemon isn’t the dominant force it once was

Who said yoga pants were just for yoga? Certainly not Lululemon, the titan of athleisure that turned stretchy pants into high fashion. But even the masters of yoga-wear are finding that the fashion world’s tree pose is a tricky balance to hold.

Stretching beyond the comfort zone

Despite a recent 10% uptick in stock price following a slight beat on first-quarter revenue expectations, Lululemon's shares have plummeted nearly 40% year-to-date. The culprit? A potent mix of macroeconomic pressures and a fierce influx of trendy rivals like Alo and Vuori, which are not only capturing the limelight but also stealing shelf space near Lululemon's own storefronts.

Adding to the turbulence, Sun Choe, the chief product officer credited as a key architect of Lululemon’s recent successes, has exited stage left to join Vans. Her departure casts a long shadow over Lululemon, with analysts expressing concerns over the brand’s ability to continue its tradition of innovation and market dominance without her.

As if competition from high-profile brands wasn't enough, Lululemon is also wrestling with a surge in knock-off culture. The company once swapped fake leggings for real deals in a Los Angeles mall, a testament to their battle against budget buys that mimic their premium products.

Realigning for the future: Still, there’s room for optimism. Lululemon’s leadership, under CEO Calvin McDonald, remains committed to adapting and capturing its new core market—be it through sizing strategies or geographic expansion. With a strong historical track record and a recent surge in China’s market by 78%, the company is not just stretching to maintain its position but flexing to expand it.

SNIPPETS

Pulse Points

• On Wednesday, Nvidia surpassed Apple in market cap, becoming the second-most valuable public company after Microsoft, as investors bet on its role in the AI boom. Nvidia also reached a $3 trillion market cap milestone after shares rose over 5%.

• The Federal Trade Commission is preparing an antitrust lawsuit against Southern Glazer’s Wine and Spirits, the largest U.S. alcohol distributor.

• A Georgia appeals court has paused the election subversion conspiracy case against Donald Trump and several co-defendants, a significant win for Trump as he aims to delay legal issues until 2025 or potentially dismiss them entirely.

• Dollar Tree announced Wednesday it will consider selling or spinning off Family Dollar, following a problematic merger less than a decade ago.

• Netflix announced it will no longer be available on second- and third-generation Apple TVs, which were released over a decade ago.

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