Trump-y’s Bumpy Budget Plans; McDonald’s Unknowingly Picks Fight with President; The Goose is Loose: Luxury Coats Hit Wall Street

Did you say…trillion?

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There’s nothing like a $1.1 trillion budget proposal to perk up a Thursday. The big winner in Trump’s plan is defense, which gets a $54 billion boost if the President gets his way. Losers of the $54 billion corresponding cuts include  – but are not limited to – the Department of Housing and Urban Development and the Environmental Protection Agency – which you had to have seen a mile away. The National Endowment for the Arts, legal aid for the poor and low-income heating assistance would also be history. Because why bother helping poor people pay for heat when you can spend $1.5 billion on a down payment to build a wall along the Mexican border. Wasn’t Mexico supposed to foot the bill for that one, by the way?  In any case, the outline was described as a “hard power budget” – if you have to laugh, then g’head – by Mike Mulvaney, the President’s director of the Office of Management and Budget. In case it wasn’t painfully obvious, it means that this plan caters to defense and building up the military, while foreign aid and diplomacy can go suck it. Sort of. Naturally, the Democrats are just not that into this budget and are wondering how smart it is to cut spending in areas that work with defense to facilitate diplomacy in more volatile parts of the world. On the bright side, the plan calls for slashing funds to the United Nations. If the President could find away to turn all that pricey UN real estate into affordable housing, then we’d really be onto something. But now it’s up to Paul Ryan to get that budget passed in Congress, which is not likely, though, since rumor has it that this plan is Dead On Arrival.

Speaking of greasy of food…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

For some inexplicable reason, at 9:16 this morning,  McDonald’s official Twitter account unleashed this little gem:”@realDonaldTrump You are actually a disgusting excuse of a President and we would love to have @BarackObama back, also you have tiny hands.” Sure the message was deleted 25 minutes later but not before it was retweeted more than 600 times. Interestingly enough Trump is a mega fan of McDonald’s, and even starred in a commercial for the fast-food chain a few years ago. McDonald’s was initially mum on the incident but later said Twitter notified the company to say that its account had been compromised and the situation is currently being investigated. Incidentally, Barack Obama’s former press secretary and campaign adviser, Robert Gibbs, is McDonald’s head of communication. Not that that had anything to do with this particular tweet, mind you. However, my question is, if this Tweet boosts business, will they keep tweeting more insults to the President? Hmmm.

Warm and fuzzy…

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Snapchat look out. There’s a new Wall Street darling today and its one that actually warms hearts. Literally. Luxury Canadian coat maker Canada Goose made its much anticipated New York stock market debut, with 20 million shares being unleashed to the tune of $18 a pop. Initially priced at closer to $12 a share, the apparel company came out swinging raising a very impressive $255 million and hitting a market valuation of $1.88 billion. And why shouldn’t that be the case? After all, the coat maker scored close to $300 million in revenue for 2016 with a $27 million profit, proving that people really do dig the Canadian brand. Of course, no party is complete without a few crashers and for Canada Goose it was PETA, who were there to protest Canada Goose’s use of coyote fur on some of its offerings. The animal-rights organization even purchased $4,000 worth of shares, which might seem completely at odds with its mission. However, that $4,000 investment affords PETA the opportunity to submit its own letter to shareholders and buys it admission to Canada Goose’s annual shareholder meeting, where, presumably, the organization plans to up its protest game.

 

 

Beer Companies Foam Up to Take Over the World; Colorado Ditch Day for Marijuana Tax; Poor Findings from U.S. Census Bureau

Sudsy…

Image courtesy of Danilin/FreeDigitalPhotos.net

Image courtesy of Danilin/FreeDigitalPhotos.net

A frothy beer merger seems to be brewing for two of the biggest beer makers in the world. Rumor has it that ABInBev and SABMiller are throwing around the idea of possibly joining foamy forces to create the biggest beer company. Ever. The move could also result in forming one of the biggest food and beverage companies. Ever. If the merger goes through, the new company would control a mind-numbing half of the entire beer market’s total profits. The new entity will also become one of the top ten biggest companies in the world, with Procter & Gamble and Nestle SA trailing behind. How a beer company’s market cap could surpass that of companies which make toothpaste and chocolate is beyond me. But I digress. ABInBev owns a lot beers you know like perennial classics, Budweiser, Corona and Stella Artois. But it also owns a lot that you may not have heard of like Antarctica, which is brewed…wait for it…in Brazil. Together with the malodorous Cass beer from South Korea, AbInBev owns over 40 different brews from all over the world. However it’s the market in Africa that has eluded this beer behemoth all this time. Hence, it’s looking to expand with SABMiller who already has quite the handle on that continent. Even though this is still all just talk, news of the potential merger sent shares of SABMiller up 23%.

On a high note…

Image courtesy of Paul/FreeDigitalPhotos.net

Image courtesy of Paul/FreeDigitalPhotos.net

There’s nothing like a good old-fashioned accounting error to generate marijuana sales. Because of a glitch in Colorado State Tax laws an automatic suspension of new taxes was conveniently triggered. The marijuana tax was the lucky winner and was met with great enthusiasm by the state’s marijuana users who regularly shell out an extra 25% in taxes for the stuff. It all started because Colorado under-estimated tax collection from last year. When that happens…poof…25% in sales and excise taxes magically disappears for one special day. Today being that day. Mason Tvert, director of communications for the Marijuana Policy Project said, “It’s crazy how much revenue our state used to flush down the drain by forcing marijuana sales into the underground market…It’s even crazier that so many states are still doing it…” Amen. Also interesting to note (well, to me anyway) is that sales of marijuana outpaced those of alcohol and tobacco. With marijuana raking in tax revenues of $70 million, alcohol only managed to eke out a paltry $42 million in tax revenue. Marijuana users spend approximately $1,800 a year on the stuff while consumers spend $450 on alcohol and just $315 a year on tobacco.

On a low note…

Image courtesy of  Mister GC/FreeDigitalPhotos.net

Image courtesy of Mister GC/FreeDigitalPhotos.net

Just when you think things are starting to look fiscally up, the U.S. Census Bureau steps in to to ruin the day. The bad news is that the median household income has been going down. As in, not up. In 2013, median income in the United States was $54,462. That number should have gotten bigger. But alas, 2014 brought with it a median income of $53,657. Which makes no sense since the economy seems to be recovering and employment is hovering at seven year lows (even though wages haven’t been picking up any speed). If that’s not bad enough, the poverty rate has also gone up from 14.5% in 2013 to 14.8% in 2014. Apparently, the poverty rate and the median income are not considered statistically significant, at least according to the Census Bureau researchers who presumably, make more than $53,657 a year. Just saying. And because it wouldn’t be any fun not to inject some politics into this discussion, the Democrats are rejoicing since the number of people roaming the streets without health insurance fell from 42 million people to 33 million. In an attempt to sap their mojo, however, Republican Paul Ryan, who chairs the House of Representatives Ways and Means Committee, advised Dems not to pat themselves on the back just yet, since clearly their efforts to fight poverty aren’t working.

The Buck Stops at Facebook, The Path to Nowhere and Flash Angry Mob Boys

You do realize that’s way below minimum wage…

Image courtesy of Master isolated images/FreeDigitalPhotos.net

Image courtesy of Master isolated images/FreeDigitalPhotos.net

In some countries paying an employee a yearly salary of $1 is nothing short of slavery. But here in the United States that’s the salary earned by 29 year old Facebook founder and CEO Mark Zuckerberg. Sure he took a took a 67% hit in his salary from the previous year but he made up for it when he exercised some stock options that scored him $3.3 billion. He still owns 426.3 million Facebook shares. Zuckerberg is currently worth about $27 billion and is ranked the world’s 22nd richest person.

Here we go again to nowhere…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

“We can’t keep spending money we don’t have,” said House Budget Chairman Paul Ryan. But why should that stop Washington. Ryan, R-Wis., released a plan that would raise NO taxes, REPEAL Obama’s healthcare laws and do all sorts of other nifty things with which you may or may not agree. The plan would cut $5.1 trillion (Note the “t”) of budget spending over the next ten years. Dubbed “The Path to Prosperity” the plan isn’t actually expected to go far…well actually anywhere, especially in a Democratic controlled house. But that’s not going to stop them from debating it for the next two weeks. So sit tight.

Don’t be such a trader-hater…

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Michael Lewis’s controversial new book “Flash Boys” about how high speed traders and high-frequency traders manipulate the stock market hit a lot of Wall Street nerves today with many high-speed traders fighting back that they are nothing short of upstanding businessman (I added that last part). The Modern Markets Initiative was particularly ticked off by Lewis’s comments on 60 Minutes Sunday night when he said “Stock market’s rigged.” The Modern Markets Initiative fired back saying,  “The markets are not rigged. Saying otherwise is a broad generalization that lumps the vast amount of good market behavior in with a few bad actors.” BTW, members of the Modern Markets Initiative are high-frequency trading firms. Meanwhile the FBI has launched an investigation into high-speed and high-frequency trading.