T-Pain releases ‘Get Low’, Cheese Bandits, Canada’s nuclear ambitions and Amazon launches Haul

Greetings folks and a warm welcome to the 18th Edition of Friday Finance Weekly. It’s the Grey Cup this weekend (in case you didn’t know) and it’s Toronto vs. Winnipeg (also in case you didn’t know). In other news, I am sure everyone is being inundated with ‘breaking news’ every time Trump makes a new cabinet appointment. He even managed to create a new division for Elon. I don’t know what all the fuss is about; this is going to be an entertaining few years to say the least. Okay, let’s get right to it.

Earlier this week, Meta CEO Mark Zuckerberg and Grammy Award winner T-Pain released a single titled “Get Low.” The collaboration was an ode to Zuckerberg’s wife, Priscilla, whom he had met at a college party while the original version of the song played in the background. In an Instagram post, Zuckerberg revealed that each year since, he and his wife would commemorate their dating anniversary by listening to the song together. “This year I worked with @tpain on our own version of this lyrical masterpiece,” Zuckerberg went on to say, before releasing the track on Spotify.

What’s interesting about all of this is that “Get Low” is not one of T-Pain’s songs; it was produced by Lil Jon. While it’s unclear how Zuckerberg confused the rapper with his favorite song, it’s hilarious that T-Pain was willing to turn a blind eye for the sake of cashing a quick cheque. I am more curious as to the private lives of the Zuckerbergs. If ‘Get Low’ is their favourite song, it begs the question if ‘Ruff Ryders Anthem’ is their next favourite song. Obviously not finance-related, but fun.

Food-related crimes (smuggling, counterfeiting, theft, etc.) cost the global food industry between US $30B and $50B each year. The problem is only expected to get worse as inflation drives up food prices around the world. One of the primary food crime targets is the cheese industry, particularly luxury cheeses.

• In 2016, Italy’s Parmigiano Reggiano Consortium advised CBS that approximately $7M worth of product had been stolen over a two-year period.

• In October, a series of family-owned farms in England were scammed out of approximately £300,000 worth of Somerset and Hafod cheddar by a perpetrator posing as the president of a French grocery chain.

Russia is an example of a country with a thriving black market for cheese. Following Russia’s annexation of Crimea in 2014, the EU and other states imposed economic sanctions, and Russia responded by banning fresh produce from these nations. Since the onset of the invasion of Ukraine, Western sanctions have tightened further, and food availability has become even more limited. These trade restrictions have given rise to expensive and complex cheese varieties from countries that were not previously known for these products, such as Belarusian camembert and parmesan. Understandably, many Russians prefer the taste of the European imports, which has led to extreme smuggling measures. For example, one Russian man was caught smuggling 460kg of banned cheese from Poland in the backseat of his car.

Black markets for food aren’t limited to Russia – in various parts of the Middle East, the presence of food subsidies has created an incentive to smuggle ingredients into areas where government support doesn’t exist, or prices are high. In the US, where it’s illegal to import unpasteurized cheeses, a black market exists for raw-milk products like Brie de Meaux and Mont d’Or. These dynamics led to the prosecution of a raw-milk trafficking gang in 2015.

Fortunately for cheese connoisseurs, the food industry is developing innovative solutions to protect their products. For example, the Parmigiano Consortium has begun inserting rice-granule-sized tracking chips into their packaging to reduce theft and help identify counterfeits. “You gouda brie kidding!” (Source: BBC)

One of the countries poised for nuclear investment is Canada, whose backyard is rich with high-grade uranium deposits, particularly in the Athabasca Basin located in northern Saskatchewan. Mining companies are rushing to capitalize on the opportunity, including Nexgen, which are currently developing what will become the country’s largest uranium mine. Although the mine won’t be operational until at least 2028, the company is already worth nearly $4B. Once fully operational, the Nexgen project alone could boost Canada’s output from 13% of global production to 25%, which would vault Canada over Kazakhstan as the world’s leading producer.

Canada is already considered a “tier-one nuclear nation” given its capability to produce nuclear fuel from the mining to the manufacturing stage as part of a one-stop shop. Other factors like the quality of its ore, suitability of existing infrastructure, proximity to the US border, and abundance of potential storage sites point to Canada emerging as a nuclear superpower. The enthusiasm for nuclear isn’t without critics, however, as many Canadians (~45%) do not support growing their nuclear footprint, given the perceived safety risks. Regulatory hurdles are also a major barrier. In British Columbia, for example, a ban on nuclear plants and uranium mines has been in effect since 1980, despite the province sitting on its own supply of uranium.

While the risk of nuclear is not zero, the technology is both promising and viable, and its advantages over many contemporary energy sources are undeniable – at least from an emissions standpoint. According to the World Nuclear Association, approximately 10% of the world’s power is generated from nuclear sources, while more than 50% is still generated by gas or coal-fired plants despite being more than 100 times dirtier. Unless new uranium mines start opening in Canada, there will be a global supply shortage within the decade, and power prices will increase.

Regardless of public perception, the reality is that nuclear produces safe, reliable, and affordable electricity worldwide, and Canada would be wise to capitalize on the golden opportunity it has been presented with. This is more of a carry-on from my previous articles in which we explored how Big Tech is also going nuclear. It seems that the world is finally coming to terms with it. Let’s please invest in this sector and make it competitive. (Source: BBC again)

In response to the rise of low-cost retailers like Temu and Shein, Amazon has officially launched Haul. The mobile-only outlet offers a variety of products including apparel, home goods, and electronics priced at $20 or less. According to Amazon, U.S. customers can expect delivery timelines ranging from one to two weeks and shipping fees for orders under $25.

Ultra-discount storefronts operate by shipping products directly from factories in China and classifying them as “low value” items (i.e., under $800). These products can then enter the U.S. duty-free under the “de minimis” rule, which was intended for small-scale personal imports when introduced in 1930. By taking advantage of this import loophole, companies can lower their cost of goods by eliminating the need for fulfillment centers and skirting customs.

Despite facing criticism over their environmental impacts, labor violations, and abetting intellectual property violators, Amazon’s Chinese e-commerce rivals have become hugely popular in recent years. While Amazon still holds a dominant position in the overall market, estimates suggest that its share has slipped from around 40% in 2020 to closer to 35% in 2023 – 2024, with competitors like Temu and Shein capturing those losses. Temu’s tagline is ‘Shop like a Billionaire.’ I think Haul’s should be ‘Shop like Jeff Bezos.’ I do find it hilarious that Amazon was supposed to be the affordable online shop, and now it’s creating an even more affordable shop to undercut its affordable online shop. Interestingly, the cheap, very affordable online shops haven’t done much to dent the business of brick-and-mortar dollar stores. (Source: Bloomberg, ChatGPT)

Have a fantastic weekend and please don’t hesitate to forward this email.

Many thanks,

Sam