No Churning Back: France Needs Your Butter!; The New “It” Couple; Americans Are Spending! Yay.


Très mal…

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Image courtesy of rakratchada torsap/FreeDigitalPhotos.net

Nothing screams “It’s time to panic!” quite like a butter shortage in France. Oui oui. The country is in the throes of a shortage of the stuff that dreams and croissants are made of, primarily because the cost of the creamy spread has gone up and the supermarkets aren’t forking over the euros to pay for it. So how exactly does an entire country find itself in the midst of such a supply shortage? First, France has been dealing with some bad weather which has somehow affected the supply of cow feed. Don’t ask me the mechanics here because I have no idea. Then we get to New Zealand. Yes, New Zealand. Did you know that New Zealand is a leading butter producer? Neither did I. New Zealand, with its own issues, has been decreasing its exports of the stuff, which in turn has contributed to France’s shortage and price increases.  However, the all-time proverbial buzz-killer/price-increaser is basically an overall global increase in demand for butter. When the whole world is eating more of the stuff, the price magically, and inconveniently goes up. In fact, butter went from $2,800 per ton in April 2016, to $8,000 per ton this past September. Crazy, right? And like Americans stockpiling batteries and water before major storms, the French have been stockpiling…butter. I dare you not to laugh. Out loud. In any case, if you don’t believe me, just check out Twitter for all sorts of French/butter humor. You won’t believe how many jokes this is churning out – sorry, had to do it.

Let’s get together…

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Image courtesy of Zuzuan/FreeDigitaPhotos.net

There are some things in life that are just meant to be. For instance, peanut butter and jelly, macaroni and cheese, and of course, beer and cannabis. Hence, Corona beer maker Constellation Brands just scooped up a 10%, $191 million-stake in Canopy Growth Corp, a Canadian company that makes cannabis and medical-marijuana products.  As for Constellation Brands, a company valued at $42 billion, it now has the dubious distinction of becoming the very first major company that specializes in wine, beer, and spirits to invest in this budding – no pun intended –  pseudo-legal industry.  The fact is, the issue of legalizing marijuana seems to be on the table in the U.S. and Canada, and not just for medical use. But Constellation really isn’t planning on doing anything major with its stake. Just yet, anyway. It plans on maybe just starting to produce some cannabis-infused drinks. Interestingly enough, the more marijuana gets legalized, the less alcohol gets consumed. For Constellation Brands, it was a pre-emptive move, positioning itself at the forefront of the industry, enabling it to take advantage of the all the opportunities that await once legalization, on the federal level, is securely in place. Nice little fun-fact: Canopy Growth Corp’s ticker symbol, which trades on the Toronto Stock Exchange is…wait for it…WEED. Catchy, huh?

You “auto” know…

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U.S. consumer spending went up quite impressively last month – a whopping 1% (yes, that is whopping) –  in large part because of the auto industry.  That’s especially important since consumer spending accounts for 2/3  of the U.S. economic output.  And who doesn’t love strong economic output, right? Yes, spending rose a lot, the most since August 2009, because there seemed to be a major increase in consumers buying cars. Sadly, that surge in car-buying was helped by the two recent major storms that ravaged a large swath of the United States and effectively destroyed a ton of vehicles. Incidentally, August 2009’s rise in spending was also attributed to the auto industry. At the time the government put out a program called “cash for clunkers” that fueled its own surge in pending.  Along with that nifty bump in consumer spending came a 0.4% increase in personal income. And bonus: wages increased by the same amount.

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