Disney is facing renewed pressure to focus its future more narrowly around its streaming business, Hope writes.

Driving the news: Activist investor Dan Loeb said Monday that his fund, Third Point, "repurchased a significant stake" in Disney.

• In a letter to Disney CEO Bob Chapek, Loeb recommended the company take full control of Hulu sooner than targeted, spin off ESPN, cut costs, suspend dividends and change up its board.

Why it matters: Disney's streaming business has taken off, and investors like Loeb are eager to see the company ride the momentum.

• Loeb likened Disney's evolution — "from 'analog' theatrical releases towards digital distribution" — to Microsoft’s transition from "selling software in plastic wrap boxes to a SaaS model."
• Shares of Disney rose 2.2%.

Be smart: Loeb has history with Disney — having asked for a similar push for a streaming expansion in late 2020.

The big picture: The benefits (global distribution) and costs (technology build and large quantities of content to produce) of streaming present challenges for media companies with legacy distribution businesses.

• For example, spinning off ESPN would, according to Loeb, free Disney from being "haunted by the specter of cord cutting."
• And the sports network's strong cash flow would allow it to take on some of Disney's debt load in a spinoff.

What Disney is saying: "We welcome the views of all our investors," the company said in a statement.

What to watch: Disney isn't alone in facing calls for change amid industry-changing formats and changing consumer behaviors.

• The New York Times has been talking to activist investor ValueAct about offering more subscription bundles.

Oil giants have made huge profits this year as prices and demand have soared, Hope writes.

Driving the news: Saudi Aramco, the world's largest oil company, yesterday reported a 90% increase in second-quarter profits from last year, to $48.4 billion.

• Peers including Exxon Mobil and Chevron in the U.S. and Shell in the U.K. have also booked record profits.

Why it matters: The war in Ukraine limited oil and gas supply from Russia, accelerating energy prices that were already on the rise as global economies recovered from the depth of the pandemic.

What to watch: Aramco says it expects oil demand to continue to grow through 2030, despite current economic pressures.

• At the same time, weak economic data from China today sent oil prices down 2.9% on demand concerns.

🪧 Starbucks asked the labor board to halt mail-in ballot union elections, alleging misconduct. (CNBC)

🏠 Wells Fargo, once a dominant player in the mortgage business, is planning a major retreat. (Bloomberg)

New data earlier today confirmed worries that China's growth is continuing to slow, although markets largely shrugged off the news by the end of trading, Hope writes.

Driving the news: China's central bank cut a key interest rate unexpectedly for the second time this year.

• “The rate cut shows the entire economy is in trouble,” Iris Pang, ING chief economist for greater China, told Bloomberg.

The big picture: Policymakers in China are facing a number of challenges that prevent them from feeling confident about economic growth this year.

• A slowdown in China will ultimately have a ripple effect on the rest of the world.

Yes, but: U.S. corporate earnings have been better than expected, and investors have become less sensitive to this year's string of bad news.

Nearly half of all U.S. teens (46%) say they use the internet "almost constantly," according to a new poll, around double the percentage (24%) that reported the same usage in 2014–15, Axios' Sara Fischer reports.

• Facebook has been replaced by video apps like YouTube, TikTok and Snapchat as the primary networks used by teens now, according to a new Pew Research Center poll.

Yes, but: More than half (53%) of teens who almost constantly use at least one social network say they are on social media too much.

• Under pressure from parents and regulators, tech companies have begun to introduce parental controls and safety policies.

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