Sponsored by PTX Metals

Blackout Follows Spain’s 78% Renewable Energy Spike

Spain’s ambitious renewable energy mix faced a harsh reckoning as a massive grid failure swept across the Iberian Peninsula—cutting power to millions in Spain and Portugal—just minutes after the country reached record-low reliance on dispatchable generation.

At 12:30 p.m. local time, Spain was running on a grid powered by approximately 78% solar and wind, with nuclear at 11.5%, cogeneration at 5%, and combined cycle gas providing a mere 3.37%, or less than 1 GW. By 12:35 p.m., the system buckled.

You can read more on the matter here.

What’s going on?

• Canada’s Fractured Election: Liberal Minority, Conservative War, Western Alienation (theDeepDive)

• Canada will deal with Trump 'on our terms', Carney tells BBC (BBC)

• Conservative Leader Poilievre Defeated in Own Riding as Liberals Take Power (theDeepDive)

• Trump will sign an executive order on auto industry tariffs today, White House says (CBC)

• US Faces Tariff-Induced Shipping Shock, May Take Up To 9 Months To Recover (theDeepDive)

• Meta Launches Standalone AI App in Bid to Compete With ChatGPT (Bloomberg)

• Jagmeet Singh to resign as NDP Leader (Globe)

• Singh Resigns as NDP Loses Widely (theDeepDive)

• US goods trade gap hits record high as Trump tariffs prompt import surge

  Subscribe to unlock this article (FT)

• North Korea Finally Admits Sending Military Personnel To Fight With Russia In Ukraine War (theDeepDive)

• Apple's iPhone production starts at new Tata plant, Foxconn facility close behind in India (SA)

• ‘No Flag, Nobody There’: Philippines Refutes China’s Sandy Cay Control Claims (theDeepDive)

What’s the latest?

• Crypto: The U.K. published draft legislation to create a comprehensive regulatory regime for crypto assets, requiring exchanges, dealers, and agents to meet standards on transparency, consumer protection, and resilience. Finance Minister Rachel Reeves said the goal is for Britain to become a world leader in digital assets, with deeper U.S.-U.K. regulatory cooperation planned. The Financial Conduct Authority (FCA) will oversee registration under money laundering regulations, amid industry concerns the FCA has been too restrictive.

• Canadian Dollar: The Canadian dollar held steady at 1.3828 per U.S. dollar after Mark Carney’s Liberal Party narrowly won the election, though analysts warned the loonie could weaken if U.S.-Canada trade tensions worsen. Citigroup projects the currency could fall to 1.45 per U.S. dollar if tensions re-escalate, while MUFG warned economic risks could force further Bank of Canada rate cuts. Carney’s Liberals won about 43% of the vote but will likely need alliances to govern, and markets are watching closely for trade and policy impacts. Meanwhile, Canada's S&P/TSX Composite Index continues to outperform the S&P 500, boosted by gold miners.

• Auto Tariffs: U.S. President Donald Trump will sign an executive order easing auto tariffs, including partial reimbursements for tariffs on imported parts based on U.S. production levels, and removing double tariffs on imported vehicles facing steel and aluminum duties. The 25% tariffs on foreign auto parts were set to take effect May 3, but the changes will phase out over time to push more supply chain production into the U.S. Ford, GM, and Stellantis stocks rose 1-2% following the news. Automakers had warned that tariffs risked disrupting the North American supply chain and raising costs.

• Gold:  Gold fell as much as 1.2% to US$3,305.23 an ounce as hopes for easing U.S. auto tariffs reduced haven demand and strengthened the U.S. dollar. Despite a 25% year-to-date gain, gold's rally has cooled with cautious optimism returning to markets. Traders are now watching upcoming U.S. jobs and inflation data, which could influence expectations for a potential June Fed rate cut and reignite gold's momentum. Meanwhile, U.S.-China trade tensions remain unresolved, with China denying active negotiations.

• Layoffs: UPS announced it will cut 20,000 jobs and shut 73 facilities to save US$3.5 billion in 2025, amid economic uncertainty and reduced trade flows due to Trump-era tariffs. First-quarter revenue was $21.5 billion, slightly above expectations, while adjusted EPS came in at $1.49 versus a $1.38 forecast. UPS cited slowing global trade and a planned reduction in Amazon deliveries, which made up 11.8% of 2024 revenue, as key challenges. The company withdrew its 2025 guidance, citing high macroeconomic uncertainty.

Teck Resources Q1 Earnings

The stock market and stuff

• Amazon Tariff Transparency Spurs White House Backlash: “Not A Surprise” (theDeepDive)

• Toyota Industries $42 bln buyout is scrap value (Reuters)

• BP To Slash More Jobs as Profit Halves (theDeepDive)

• Coca-cola anticipates 5%-6% organic revenue growth for 2025 with expanded global strategies (SA)

• G Mining Reports Oko West NPV Of $2.2 Billion In Feasibility Study (theDeepDive)

In the juniors

• AbraSilver Resource Further Expands High-Grade Silver Mineralization Beyond JAC Boundary at Diablillos; Including 65.0 Metres Grading 162 g/t Ag (JMN)

• GR Silver Suspends Exploration Work In Sinaloa, Mexico Over Security Concerns (theDeepDive)

• Ramp Metals Provides Drilling Update and Confirms Copper-Zinc Mineralization at Rush Target (JMN)

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