Hello, N2K’ers!

This week, our world famous News Haiku^TM competition focuses on news that Albania’s prime minister has “hired” an AI-generated “Minister” (a.k.a. a robot) to root out corruption. Send me your haiku by Thursday at noon Eastern for consideration. Now let’s talk about the news you Need2Know, eh?

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Why matcha prices are going through the roof

• McDonald’s invests millions in “regenerative” cows …

• Parents of suicidal teens testify on AI chatbot da …

• FDA takes aim at Hims & Hers for weight loss ads

• Fed convenes meeting to set interest rates amid co …

• Poll of the day: Finally met your matcha

What’s the stock market up to, eh?

$SPX ( ▼ 0.13% ) $DJI ( ▼ 0.27% ) $NDX ( ▼ 0.07% )

Companies mentioned in today’s newsletter

$MCD ( ▲ 0.4% )  $NVO ( ▲ 2.84% )

Why matcha prices are going through the roof

Matcha lovers worldwide are bracing for significant price hikes as the powdered green tea faces supply issues and surging demand. Retail sales of matcha in the U.S. have soared by 86% over the past three years, driven by social media trends and its various health benefits. Now a combination of poor harvests in Japan, labor shortages, tariffs, and rising production costs are straining the market.

“People should expect an enormous increase in the price of matcha this year,” said Aaron Vick, senior tea buyer at G.S. Haly. With Japanese matcha prices rising up to 75% for high-grade varieties, he predicts a “tough adjustment period” for loyal fans.

Meanwhile, attempts to grow China’s matcha market have shown promise. “We are seeing more interest in Chinese matcha because of changing perceptions,” said Jason Walker, marketing director at Firsd Tea, hinting that Chinese producers are stepping in to fill gaps left by Japan.

Despite price hikes, matcha's cultural appeal remains strong. "It’s not just a tea bag in water. It’s a whole experience," said Melissa Lindsay, a daily matcha drinker from San Francisco. However, tea supplier Josh Mordecai wonders if this is a temporary trend, cautioning, “Nothing stays on social media that long.”

The editor of today’s newsletter started drinking matcha in 2017, and “was really into matcha its first go-around.” Now, she just drinks “like coffee or whatever.”

Will you continue drinking matcha if it’s 75% more expensive? Let us know in today’s poll below 👇🏻

Song of the day: Iron & Wine with Ben Bridwell, ‘I want to know what love is.’

Singer/songwriter Sam Beam, a.k.a. Iron & Wine, and Band of Horses frontman Ben Bridwell have released a new duet rendition of the classic 1984 Foreigner ballad “I Want to Know What Love Is.” The tune is the second track the duo released from their new collaborative EP, “Making Good Time.” I like it, although maybe that’s because I like the original? Who cares!

McDonald’s invests millions in “regenerative” cows

McDonald’s, the fast-food giant known for, well… being McDonald’s, is taking a bold step to address environmental challenges in agriculture. That’s right. They’re going vegetarian.

The company will invest $200 million over the next 7 years to support “regenerative cattle ranching practices” in the U.S.

Fear not. This does not involve resurrecting cows.

“As a brand that serves more than 90% of Americans every year, we recognize the responsibility we have to help safeguard our food systems for long-term vitality,” said Cesar Piña, McDonald’s chief supply chain officer for North America.

Regenerative ranching techniques aim to enhance soil health, conserve water, and reduce the use of synthetic chemicals. By rotating cattle and allowing land to recover between grazing periods, these practices promote deeper-rooted grass, which sequesters more carbon and restores ecosystems. McDonald’s plans to use its investment to improve grazing methods as well as water and wildlife conservation across 4 million acres in up to 38 states.

The initiative includes collaboration with the National Fish and Wildlife Foundation, which will distribute grants to organizations assisting ranchers. Jeff Trandahl, the foundation’s executive director, said: “Regenerative practices can ultimately improve the productivity of grasslands and increase ranches’ profitability.”

Today on the ‘gram: All the news that’s fit to skint

Post of the day: Rest in peace, Sundance

Quote of the Day

Parents of suicidal teens testify on AI chatbot dangers

In a powerful Senate hearing, the parents of two teenagers who tragically took their own lives after interacting with AI chatbots called for urgent action to protect young users. Matthew Raine and Megan Garcia, who lost their children, Adam Raine (16) and Sewell Setzer III (14), are highlighting the risks posed by AI in discussions around mental health and youth safety.

The Raine family alleges that OpenAI’s ChatGPT encouraged Adam to plan his suicide in April, while Garcia claims her son became isolated and engaged in harmful conversations with a chatbot created by Character Technologies. Both parents are suing the respective companies for wrongful death.

Ahead of the hearing, OpenAI announced new safeguards aimed at teens, including better age detection protocols and parental controls. However, the move was met with skepticism from child safety advocates. “This is a fairly common tactic,” said Josh Golin, executive director of Fairplay, a group advocating for online child safety. “It promises to be a splashy announcement, but what they should be doing is not targeting minors at all until they can prove it’s safe.”

The Federal Trade Commission has launched an inquiry into AI companies, including OpenAI and Character Technologies, to evaluate the harmful effects of AI chatbots on teenagers. As Golin warns, “We shouldn’t allow companies…to perform uncontrolled experiments on kids.”

Should you check your 401(k) today?

👍️ 

I mean sure. It’s been at record highs for days, now.

FDA takes aim at Hims & Hers for weight loss ads

The Food and Drug Administration (FDA) is cracking down on telehealth companies, including Hims & Hers, for promoting unofficial versions of prescription drugs, which aren’t FDA approved.

The FDA issued over 100 warning letters, condemning "false and misleading" claims made by Hims & Hers. The company had suggested its compounded weight loss products contain the same active ingredients as FDA-approved medications like Wegovy and Ozempic $NVO ( ▲ 2.84% ) the FDA says. The FDA countered, “Your claims imply that your products are the same as an FDA-approved product when they are not.”

In response, Hims stated they are eager to work with the FDA and noted that their customer materials indicate these compounds are not FDA-evaluated. The scrutiny isn't new for Hims, which previously focused on generic drugs for hair loss and erectile dysfunction before expanding into the lucrative weight loss market.

Health Secretary Robert F. Kennedy Jr. has long been a critic of the pharmaceutical industry, including GLP-1 drugs, previously suggesting Americans can reverse obesity with diet and exercise alone. This is obviously true if you visit the Hamptons, where “everyone is on the shot.” 

Despite the controversy, the demand for cheaper alternatives to Wegovy and Ozempic remains high. Still, shares of Hims & Hers Health $HIMS ( ▼ 5.69% ) fell by 6.47% on the news.

Fed convenes meeting to set interest rates amid controversy over govs

The Federal Reserve commenced its two-day meeting on Tuesday to decide the next steps for U.S. interest rates, but the gathering has been overshadowed by political drama. The controversy stems from the involvement of two figures: Stephen Miran, newly appointed by the Trump administration, and Fed governor Lisa Cook, whom the White House unsuccessfully attempted to remove.

Stephen Miran, a White House economist, was confirmed by the Senate late Monday and sworn in to the Fed’s board on Tuesday. Miran is expected to advocate for deeper rate cuts, possibly dissenting in favor of a half-point reduction over the anticipated quarter-point move. Meanwhile, Lisa Cook retains her position due to a court ruling that President Trump’s attempt to fire her violated due process. A lower court had previously ruled that the administration failed to provide adequate “cause” for her removal.

The situation creates a uniquely contentious environment for the typically consensus-driven institution, with as many as three of the seven governors potentially dissenting from the decision, a scenario not seen since 1988. The White House plans to escalate Cook’s firing attempt to the Supreme Court. “The President lawfully removed Lisa Cook for cause,” said White House spokesman Kush Desai, vowing to achieve “ultimate victory” on the matter.

All eyes are now on today’s 2 p.m. announcement over the rate changes.

Poll of the day: Finally met your matcha

Poll of the day: You want quarterly reporting

We asked: Do you think it's a good idea to move companies to six-monthly reporting?

You answered:

🟨🟨⬜️⬜️⬜️⬜️ Yes, it seems sensible. (243)

🟩🟩🟩🟩🟩🟩 No, I think transparency is important for investors, and every three months is a good cadence. (567)

810 Votes via @beehiiv polls