Franklin Finance Fridays: 06/27/2025
Top of the mountain looking down, how do you want to finish?
All,
“I found Rome a city of bricks and left it a city of marble.” This quote, attributed to Emperor Augustus, is more than a boast about infrastructure. It captures the essence of transformative leadership and long-term investment, ideas at the heart of economic development. We must continue to explore how this mindset applies to today’s economies, where short-term fixes often take precedence over structural change. What does it take to turn a system built on fragile foundations into one of enduring strength? Whether in cities, markets, or policy, the economics of transformation demands vision, patience, and smart capital.
A new $400 million meatpacking plant called Sustainable Beef has opened in North Platte, Nebraska, aiming to attract American workers with better pay, safer conditions, and a single daytime shift. The plant is trying to reverse the trend of relying mostly on immigrant labor, offering locals $22 per hour and upgraded facilities. North Platte has faced economic decline and population loss, and city leaders hope this plant revives the town’s economy. The plant plans to employ 850 people directly and potentially spur 1,200 related jobs.
The project was born from frustration with meat industry consolidation and a lack of fair cattle pricing. It has gained support from major players like Walmart and boasts state and local incentives. While some residents worry about changes and rising immigration, others see hope for stability and growth. Migrants are already moving in to fill jobs, but stigma around meatpacking remains. As labor shortages and immigration crackdowns continue, Sustainable Beef faces tough challenges from industry giants and rising cattle costs. Despite this, its founders believe they are building something unique for the future.
Amrize, a new public company spun off from Swiss building materials giant Holcim, is making its debut with an expected market value of over $30 billion. Based in Chicago, Amrize is the largest cement supplier and second-largest commercial roofing provider in North America. Unlike many of its competitors, the company sources most of its materials domestically, which could protect it from the impact of new tariffs. This gives it a potential advantage as U.S. trade policy becomes more unpredictable.
The U.S. housing and commercial construction markets have slowed, but public infrastructure spending and a push for domestic manufacturing may drive long-term demand. Analysts note that data centers and refurbishment projects are still growing areas. Nearly half of Amrize’s business comes from repair work. Its CEO, Jan Jenisch, says the U.S. construction market is becoming more localized and less global, with different regions now requiring separate strategies. Amrize plans to trade on both the New York and Swiss stock exchanges and is already considering new acquisitions. With support from government investment and a shift toward American-made materials, Amrize hopes to thrive as the construction industry evolves.
A $71.3 million industrial redevelopment project has been approved for North Lawndale, on a 21-acre site that was once used as an illegal dump. The site, located at 4300 W. Roosevelt Road, will be developed by 548 Development and Related Midwest. Plans include two large industrial buildings and two smaller innovation centers. To support the project, the City Council approved a Cook County Class 6(b) property tax incentive valued at $7.7 million over 12 years. This tax break is designed to promote industrial growth in underinvested areas. The development is expected to create 250 permanent jobs and 125 construction jobs.
Previously, the City Council had also approved up to $8 million in Tax Increment Financing (TIF) for the same project. The site has a controversial history, as its past use as a dump led to criminal convictions of several public officials in the 1990s. This redevelopment reflects the city’s broader push to transform disused or contaminated land into job-generating industrial spaces, especially in historically disinvested communities like North Lawndale.
Lawmakers in Congress are trying to close a loophole that allows Medicare Advantage insurers to receive billions in federal payments for veterans who also get care through the VA. A recent investigation by the Wall Street Journal revealed that from 2018 to 2021, the government paid these insurers around $44 billion, even though the VA provided much of the care. Under current rules, the VA cannot bill Medicare Advantage insurers, even though it can bill other insurers. This means insurers receive money for care they do not have to provide, which many lawmakers describe as double dipping. The new legislation would allow the VA to charge Medicare Advantage plans for services they give to those plan members.
Lawmakers from both parties support the bill, including Senator Elizabeth Warren and Representative Lloyd Doggett. They argue this fix would stop insurers from exploiting the system at the cost of taxpayers and veterans. The VA spent about $17 billion in 2021 treating veterans who were enrolled in Medicare Advantage. Some insurers, like Humana, have created veteran-branded plans and benefited from the current setup. The VA encourages veterans to enroll in Medicare to expand their healthcare options. The bill’s sponsors hope the new policy will increase fairness and better coordinate care between Medicare and the VA without wasting taxpayer money.
New York plans to build a new nuclear-power plant, marking the first major U.S. nuclear project in over 15 years. Governor Kathy Hochul directed the New York Power Authority to create at least 1 gigawatt of nuclear capacity to meet the state’s growing energy demands. The effort aims to boost clean energy, improve reliability, and support future economic growth while reducing fossil fuel dependence. This move aligns with President Trump’s executive orders that seek to streamline nuclear project approvals and revamp regulations. The proposed plant could use traditional large reactors or small modular ones, which might lower costs and speed up construction. Officials are also reviewing sites like Nine Mile Point and exploring partnerships with Constellation Energy.
The U.S. nuclear industry has faced setbacks due to long delays, high costs, and safety concerns. However, new support from politicians, tech companies, and energy agencies is reviving interest. Closing old plants like Indian Point increased emissions and made New York more reliant on fossil fuels. Supporters believe nuclear power is key to providing consistent, emissions-free electricity to back up solar and wind energy. Public perception appears to be improving, as seen in support for restarting Pennsylvania’s Three Mile Island. New York is also studying Canadian nuclear efforts to learn from their small reactor models. Governor Hochul said fast-tracking permitting and improving federal coordination are essential to making these projects succeed. The plan reflects both political will and technical ambition to reshape the country’s clean energy future through nuclear investment.
Fiserv is launching a new stablecoin and platform designed to bring thousands of regional and community banks into the crypto space. The stablecoin, named FIUSD, will support digital transactions and allow banks to brand their own coins if they choose. This move is aimed at helping smaller banks keep pace with technological change and compete with larger institutions and fintech firms. The platform will partner with major players like Solana, Circle, Paxos, and potentially PayPal. It is built to integrate with Fiserv’s existing network, which already handles trillions in transactions and supports over 10,000 financial institutions. The system will include strong fraud protection, risk management, and settlement tools, with large banks managing custody of the assets.
Stablecoins are digital tokens designed to hold a stable value and are backed by reserves like U.S. Treasurys. Fiserv’s goal is to allow its clients to use stablecoins in day-to-day operations while keeping implementation costs low. However, banks using the platform will pay transaction fees and share a portion of the yield from reserve assets with Fiserv. The push comes as Congress advances legislation supporting stablecoin adoption. Some banks worry that customers will shift deposits into stablecoins, which could impact their ability to lend. Still, many see an opportunity to improve transaction speeds and lower costs. Fiserv's strategy could help level the playing field for smaller banks and spark broader adoption of stablecoins across the U.S. financial system.
Ford is still struggling to get enough rare-earth magnets needed for electric vehicles, even after a deal between the U.S. and China was supposed to ease restrictions. China controls about 90% of the world’s supply of these rare-earth metals, which are essential for making magnets that can operate at high temperatures. These magnets are critical for electric vehicle motors, as well as for many other technologies like smartphones and fighter jets. In May, Ford had to stop production at a Chicago-area factory due to a magnet shortage. While conditions have improved slightly, the supply chain remains unstable. Ford’s Lisa Drake said the company is constantly adjusting operations to avoid further shutdowns.
Other car companies are also experiencing delays, with some describing the situation as changing week to week. Despite a recent agreement between President Trump and China, the pace of export approvals for these magnets has not significantly improved. The agreement only lasts for six months and allows China to maintain its tight grip on the materials, which gives it bargaining power in future trade talks. The risk remains that without steady access to rare-earth magnets, carmakers may need to stop or slow production.
Novo Nordisk has ended its partnership with Hims & Hers, accusing the telehealth company of selling illegal copycats of its weight-loss drug Wegovy and using deceptive marketing. Novo Nordisk says the knockoffs put patients at risk and violated laws meant to ensure patients receive approved drugs. Hims & Hers responded by claiming that Novo Nordisk pressured them to steer patients to Wegovy, limiting patient choice and provider independence. The fallout caused Hims & Hers’ stock to drop over 30%, the largest decline on record for the company. Novo Nordisk also saw its stock fall by nearly 6%. This split comes just months after the two companies announced a collaboration that would have allowed Hims & Hers to offer Wegovy through its platform.
The broader issue reflects rising tensions between drugmakers and telehealth companies over the control and sale of weight-loss drugs. Some telehealth companies have used compounding pharmacies to create cheaper versions of popular drugs like Wegovy when supply was low. Though shortages are over, some compounders continue producing these alternatives using legal loopholes. Novo Nordisk says it will continue offering Wegovy through approved telehealth channels, but only in ways that ensure the drug’s safety and authenticity. Hims & Hers plans to keep offering Wegovy as part of a wider range of treatment options, despite the dispute.
Unilever has acquired the men’s grooming brand Dr Squatch for $1.5 billion. The deal is part of Unilever’s push to expand its personal care and wellness portfolio, especially in higher-margin, fast-growing markets. Dr Squatch, based in the U.S., sells natural soaps, deodorants, and shampoos directly to consumers and through third-party retailers. The brand is known for viral marketing campaigns and celebrity ads featuring figures like Sydney Sweeney and Mike Tyson.
Unilever believes Dr Squatch’s strong digital presence and loyal customer base will help grow the brand internationally. This move follows Unilever’s earlier acquisition of Wild, a premium refillable cosmetics brand. It also comes as the company prepares to spin off its ice cream division, which includes brands like Magnum and Ben & Jerry’s. This is not Unilever’s first attempt at the male grooming market. In 2016, it bought Dollar Shave Club for $1 billion but later sold it in 2023 due to integration struggles. Under new CEO Fernando Fernandez, Unilever is trying to reduce its reliance on slower-growing food brands and focus more on health and personal care products.
Two major labor unions in New York City have shifted their endorsements from Andrew Cuomo to Zohran Mamdani in the mayoral race. The Hotel and Gaming Trades Council and Local 32BJ SEIU both backed Mamdani, citing his focus on affordability and working-class issues. The New York State Nurses Association also announced support for him. These endorsements reflect a growing consolidation of Democratic support behind Mamdani, a 33-year-old democratic socialist. Mamdani is leading the Democratic primary and is expected to face Mayor Eric Adams, who is running as an independent, in the general election. Adams and others have criticized Mamdani, labeling his ideas as extreme. Despite this, Mamdani’s campaign has gained momentum through grassroots efforts and volunteer support.
Unions that once powered Cuomo’s campaign are now promising significant field support for Mamdani. Their members, largely people of color, represent a key voting bloc in the city. Cuomo’s campaign appears to have accepted the shift, while some wealthy backers are considering supporting Adams instead. Labor’s support could play a decisive role in Mamdani’s path to City Hall.
A plan by Senator Mike Lee to sell over a million acres of federal land in the American West is facing strong opposition, not just from Democrats but also from conservative hunters and anglers. Influential figures like Cameron Hanes, who supports Trump and is known for hunting, have publicly denounced the plan, saying they did not vote for public land to be sold off. The proposal, part of Trump’s broader domestic policy bill, would allow land near urban areas to be sold for housing, but critics argue that the scale is excessive. Republican Representative Ryan Zinke, who once led the Interior Department, also opposes the plan, saying that affordable housing does not require millions of acres. Some conservative voices are now aligned with environmentalists in defending public lands. Outdoor influencers have used social media to rally followers against the sell-off and to pressure lawmakers. Senator Lee has hinted at revisions and promised to listen to concerns, but the controversy has revealed a deeper divide within the Republican Party. The issue has mobilized a unique coalition of right-wing outdoor enthusiasts and conservation advocates. Public lands are a major part of life in the West, and many feel lawmakers in Washington do not understand their value. The proposal still faces procedural hurdles, and several Republicans have said they would vote against the bill if the land sale remains
Have a great weekend.
Best,
Franklin
Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.