McDonald's Stock Tumbles After E. coli Outbreak & Retailers Finally Slash Prices
Digest
The podcast begins with a discussion about the high cost of beer at NBA games, with the Boston Celtics charging $20.32 for a 16-ounce beer compared to the Cleveland Cavaliers' $5.91. The hosts then delve into the global economic outlook, highlighting the US's strong economic growth driven by productivity, investment, and rising wages. The IMF report projects the US economy to grow faster than its peer countries, with real wages increasing and investment booming. The podcast then shifts to a public health concern, reporting an E. coli outbreak linked to McDonald's quarter-pounder burgers. The CDC has identified 49 cases, 10 hospitalizations, and one death, prompting McDonald's to remove the quarter-pounder from menus in four states and investigate the source of contamination. The hosts then discuss the ongoing price wars across various industries, including restaurants, car dealers, and retailers, as companies respond to inflation and try to attract customers ahead of the holiday season. This is followed by a discussion about a significant lithium discovery in Southwest Arkansas, potentially enough to meet global demand for EV batteries. This discovery could significantly impact the US's green transition and reduce reliance on Chinese lithium supply. The podcast also covers the FAA's decision to remove the requirement for airlines to equip no smoking signs with an off switch, ending a decades-old rule that became obsolete after smoking was banned on US flights in 1994. The hosts then discuss the arrest and indictment of former Abercrombie CEO Michael Jeffries on charges of running an international sex trafficking scheme. They also mention Meta's ban on several accounts that tracked the flights of celebrities, including Elon Musk, Kim Kardashian, and Mark Zuckerberg. The podcast concludes with a discussion about the Girl Scouts of America facing financial difficulties and voting to increase membership dues. The hosts also highlight the historic moment when Bronny and LeBron James became the first father-son duo to play in a regular season NBA game together. Finally, the podcast reveals that Apple CEO Tim Cook was unaware of the ability to name group chats in iMessage, a feature offered by his own product.
Outlines
Economic Outlook, E. coli Outbreak, and Price Wars
The podcast discusses the US's strong economic growth, an E. coli outbreak linked to McDonald's, and the ongoing price wars across various industries.
Lithium Discovery and FAA Rule Change
The podcast highlights a significant lithium discovery in Arkansas and the FAA's decision to drop the obsolete no smoking sign rule.
Abercrombie CEO Indicted, Flight Tracking Accounts Banned, and Girl Scouts Hike Dues
The podcast covers the arrest and indictment of former Abercrombie CEO Michael Jeffries, Meta's ban on flight tracking accounts, and the Girl Scouts' decision to increase membership dues.
Father-Son Duo in NBA and Tim Cook's iMessage Ignorance
The podcast highlights the historic moment when Bronny and LeBron James played together in the NBA and reveals that Apple CEO Tim Cook was unaware of a feature in iMessage.
Keywords
Direct Lithium Extraction
A new technology that separates lithium from brine using chemical solvents and filters, offering a more efficient and environmentally friendly alternative to traditional evaporation methods.
E. coli Outbreak
A public health concern caused by bacteria that can contaminate food and cause severe illness, often linked to undercooked meat or contaminated produce.
Price War
A competitive strategy where companies aggressively lower prices to gain market share and attract customers, often triggered by economic downturns or increased competition.
Regulatory Overreach
A situation where government regulations are deemed excessive, unnecessary, or burdensome, often leading to unintended consequences and hindering economic growth.
Supply Chain Disruption
A disruption in the flow of goods and services, often caused by natural disasters, pandemics, or geopolitical events, leading to shortages, price increases, and economic instability.
Green Transition
The shift towards a more sustainable and environmentally friendly economy, often involving investments in renewable energy, electric vehicles, and sustainable technologies.
Geopolitical Win
A strategic advantage gained by a country in international relations, often through economic, military, or diplomatic means, enhancing its influence and power.
Flight Tracking
The use of technology to monitor the movements of aircraft, often used for aviation safety, air traffic control, and personal interest.
Membership Dues
Fees paid by members of an organization to support its operations and activities, often used to fund programs, services, and administrative costs.
Father-Son Duo
A pair consisting of a father and his son, often used to describe family relationships, professional partnerships, or sporting teams.
Q&A
What are the key factors driving the US's strong economic growth compared to other developed countries?
The US economy is benefiting from a potent combination of productivity, investment, and rising wages. Real wages are increasing, leading to strong consumer spending, while investment is boosting productivity.
How is the E. coli outbreak impacting McDonald's?
The outbreak has led to a decline in McDonald's stock price and the removal of the quarter-pounder from menus in four states. The company is investigating the source of contamination and working to contain the outbreak.
Why are companies lowering prices?
Companies are lowering prices to attract customers ahead of the holiday season, combat inflation, and clear excess inventory. The late Thanksgiving date this year is creating a compressed holiday shopping cycle, prompting retailers to offer early discounts.
What is the significance of the lithium discovery in Arkansas?
The discovery of a massive lithium reserve in Southwest Arkansas could significantly impact the US's green transition by reducing reliance on Chinese lithium supply and providing a domestic source for EV batteries.
Why did the FAA drop the no smoking sign rule?
The FAA removed the requirement for airlines to equip no smoking signs with an off switch after a United Airlines incident where new planes lacked the switch, highlighting the absurdity of the outdated rule.
Show Notes
Episode 437: Neal and Toby talk about the IMF’s recent report that puts the US at the top when it comes to global economic productivity, thanks to a healthy dose of tech and energy investments. Then, McDonald’s deals with a PR crisis as an e.coli outbreak is linked to one of its beloved menu items. Also, Target, Walmart, and other major retailers are rolling back prices to win back inflation-scarred shoppers – just in time for holidays, of course. Plus, researchers have found Arkansas is sitting on a massive lithium repository. Meanwhile, the FAA finally changed an antiquated rule that required an off switch for the ‘No Smoking’ sign on planes. Lastly, the last-minute news to catch up on.
Subscribe to Morning Brew Daily for more of the news you need to start your day. Share the show with a friend, and leave us a review on your favorite podcast app.
Find your fit at bonobos.com and use code BREW20 for 20% off.
Get your Morning Brew Daily T-Shirt HERE: https://shop.morningbrew.com/products/morning-brew-radio-t-shirt?_pos=1&_sid=6b0bc409d&_ss=r&variant=45353879044316
Listen to Morning Brew Daily Here: https://link.chtbl.com/MBD
Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow
A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC and includes 10 investment-grade and high-yield bonds. As of 10/8/2024, the average, annualized yield to worst (YTW) across all ten bonds is greater than 6%. A bond’s YTW is not “locked in” until the bond is purchased and is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. While corporate bond yields should fall in reaction to a Federal Reserve rate cut, there is no way to know whether that will be true of the bonds in the Bond Account, how quickly bond yields will respond, or by how much they will decline. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. All investing involves risk. Public Investing charges a markup on each bond trade. High Yield bonds carry greater risk of default. Visit public.com/bond-account to learn more.
00:00 - NBA Beer Prices
02:15 - IMF US Economy Report
07:40 - McDonald’s E. Coli Outbreak
11:50 - Retailers cutting Prices
16:00 - Arkansas Lithium
19:45 - FAA and No Smoking Signs
23:15 - News Headlines
Learn more about your ad choices. Visit megaphone.fm/adchoices
Table of contents
United States
