Sponsored by Cytophage Technologies

The ballooning Toronto condo problem

Despite anticipated easing of interest rates later in the year, the Toronto real estate market, particularly the condominium sector, continues to grapple with significant hurdles, dampening investor and buyer enthusiasm.

Following a sluggish recovery from last year’s market downturn, exacerbated by high lending rates, soaring living costs, and broader economic challenges, the condo market in Toronto finds itself in a precarious position. Developers are shelving projects due to tepid interest, even as the city contends with a housing crisis necessitating rapid construction of new units.

You can read more on the matter here.

What’s going on?

• Disturbing Photos Emerge of Texas Dairy Worker's Rare Bird Flu Infection from Cow (theDeepDive)

• Downtown Toronto faces a crush of rising office vacancies that could threaten building valuations (Globe)

• Maersk says Red Sea disruption could cut Asia-Europe capacity by 20% (Reuters)

• Canada Post Reports $748 Million Pre-Tax Loss In 2023 (theDeepDive)

• U.S. Jobs Growth Set to Slow, Conference Board Says (WSJ)

• Canadian Sanctions on Russian Titanium Lead to Waivers Amid Supply Challenges (theDeepDive)

• Columbia Cancels Main Graduation Event After Weeks of Turmoil (Bloomberg)

• Lawsuit Alleges Apollo’s Unlawful Scheme Betting on Senior Citizens’ Deaths (theDeepDive)

• Can floating nuclear power plants help solve Northern Canada’s energy woes? (Globe)

• Berkshire Hathaway gains as insurance lifts first-quarter profit and cash nears $200 billion (CNBC)

• Google Reportedly Begins Process of Seeking Cheaper Labor Following Layoffs (theDeepDive)

What’s the latest?

• Insolvencies Jump: Business insolvencies in Canada surged by 87.2% in Q1 2024 compared to last year, marking the largest annual increase in 37 years, with a total of 2,003 cases reported. This includes 1,599 bankruptcies. This significant rise also reflects a 31.7% increase from the fourth quarter of 2023. The Canadian Association of Insolvency and Restructuring Professionals attributes this spike to a confluence of factors including pandemic-related debts, rising costs, declining consumer spending, and higher interest rates.

• Canadians Hit A Low: The Nanos Pocketbook Index, tracking Canadians' perceptions of personal finances and job security, has fallen to a historical low of 50, matching the level seen in April 2020. Particularly concerning is the drop among individuals aged 18 to 29, where the index has plummeted to 40, marking the lowest point since its inception 16 years ago. Only 11% of respondents across all ages report an improvement in personal finances over the past year, the lowest figure since the survey began in 2008.

• Shipping Problems: The shipping industry is experiencing significant disruptions in the Red Sea due to attacks by Yemen's Houthi militants, leading companies like Maersk and Hapag-Lloyd to divert vessels around Africa's Cape of Good Hope. This diversion is substantially increasing voyage times and operational costs. Maersk reports a 40% rise in fuel costs on the Asia-Europe routes affected by this rerouting. As a result, the container shipping capacity between Asia and Europe is expected to decrease by 15% to 20% in the second quarter.

• Nestle Strike: Hundreds of Nestle workers in Toronto have gone on strike after rejecting a tentative agreement. The strike involves 461 Unifor members at the Nestle plant that produces popular products like Kit Kat, Aero, Coffee Crisp, and Smarties. The main issues for the workers include demands for improvements to the pension plan and opposition to a proposed two-year freeze on cost of living adjustments.

• Trump Fined Again: The judge in Donald Trump's criminal trial, Justice Juan Merchan, has repeatedly fined the former president for violating a court-imposed gag order, totaling $9,000 thus far. Despite these fines, Trump's continued disregard for the gag order led Merchan to warn that jail could be the next step if violations persist. Trump, facing charges related to a hush money payment, has claimed that the gag order infringes on his constitutional rights and hampers his ability to campaign for a return to the White House.

Copper jackpot w/ Intrepid Metals

The stock market and stuff

• Robinhood On SEC Issuing Wells Notice: “We’re Disappointed” (theDeepDive)

• Synopsys to Sell Unit for as Much as $2.1 Billion to Private Equity Firms (Bloomberg)

• Trump Media hires new auditor after previous accounting firm charged with ‘massive fraud’ (CNBC)

• Artificial Intelligence Boom Mirrors Surge in Uranium Prices (theDeepDive)

• At $2 Million Per Minute, Treasuries Mint Cash Like Never Before (Bloomberg)

In the juniors

• Hercules Silver Begins 20,000 Metre Drill Program Targeting 2023 Discovery (theDeepDive)

• Hertz Energy Applies For Two Uranium Projects In Namibia (theDeepDive)

• Canada Nickel Intersects 687 Metres Of 0.27% Nickel At Reid Property (theDeepDive)

FULL DISCLOSURE: Cytophage Technologies is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Cytophage Technologies. The author has been compensated to cover Cytophage Technologies on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.