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Canada Enforces Arbitration at Ports

Canada’s federal government ordered an immediate end to work stoppages at major ports in British Columbia and Quebec on Tuesday, imposing binding arbitration that sparked immediate pushback from labor unions.

Labor Minister Steve MacKinnon directed the Canada Industrial Relations Board (CIRB) to resume operations at all affected ports, citing daily disruptions to more than C$1.2 billion in trade flows. The Vancouver Board of Trade estimates direct disruptions have already reached C$6.1 billion.

Canadians ”have limited tolerance for economic self-harm,” MacKinnon told reporters in Ottawa, defending the government’s second use of binding arbitration to end a major labor dispute this year, following similar intervention in a railway strike in August.

You can read more on the matter here.

What’s going on?

• Spotify Hits Record Margins Despite Revenue Challenges from Currency Headwinds (theDeepDive)

• US inflation rises to 2.6% (FT)

• Canada Imposes Binding Arbitration at Major Ports (theDeepDive)

• Donald Trump returns to Washington to meet Joe Biden, Republicans in Congress (Globe)

• Republicans Secure House, Completing GOP Trifecta in Washington (theDeepDive)

• Personal insolvencies jump 14%, with one half of Canadians now living ‘paycheque to paycheque’ (TS)

• “Deeply Disappointing And Wrong”: Small Business Outraged as Government Plans to Tax Carbon Tax Rebates (theDeepDive)

• Boeing starts issuing layoff notices as part of plan to cut 17,000 workers (Reuters)

• US Sets Ambitious Goal to Triple Nuclear Power by 2050 (theDeepDive)

• Credit card debt hits record $1.17 trillion, New York Fed research shows (CNBC)

• Trump Win Sparks $1 Billion Outflow from World’s Biggest Gold ETF (theDeepDive)

What’s the latest?

• Klarna: Swedish "buy now, pay later" company Klarna has filed for a U.S. IPO, with analysts valuing it around $15 billion—down from its pandemic peak of $46 billion. Major shareholders include SoftBank, Sequoia Capital, and Atomico. Klarna recently achieved profitability and aims for greater brand visibility in the U.S., bypassing European exchanges despite local market reforms to attract tech listings.

• Bitcoin: Bitcoin surged to a record high of $93,469.08, climbing over 3% as traders analyzed October's 0.2% inflation rise, which aligns with a 12-month rate of 2.6%. Other cryptocurrencies saw modest gains, with Ether and Solana up about 1%, while Dogecoin jumped 3%, partly influenced by Elon Musk’s involvement with President-elect Trump’s team.

• Amazon: Amazon has launched "Amazon Haul," a budget-focused storefront offering items under $20, competing with discount platforms Temu and Shein. Accessible via Amazon's mobile app, Haul includes goods like $1 eyelash curlers and $3 nail dryers, with free shipping on orders over $25. Most deliveries are under two weeks, and returns are not accepted on items $3 or less, aligning with Amazon’s cost-saving strategy of direct imports from China.

• Inflation: U.S. inflation edged up in October, with consumer prices rising 2.6% year-over-year, up from 2.4% in September, largely due to rent and used car costs. Core inflation held steady at 3.3% over the past year, and most economists predict inflation will eventually ease. The Fed remains on track to lower rates by a quarter-point in December, marking the third cut this year. Gas prices dropped 0.9% from September, and grocery prices rose only 0.1%, providing some relief to consumers.

• Loblaw: Loblaw Companies Ltd. reported a Q3 net profit of $777 million ($2.53 per share), up from $621 million ($1.95 per share) year-over-year, partly due to a favorable court decision impacting President’s Choice Bank. Revenue rose to $18.54 billion, with food same-store sales up 0.5% and drug retail same-store sales up 2.9%. Adjusted earnings were $2.50 per share, up from $2.26. The company raised its full-year earnings guidance to low double-digit growth and increased its planned capital expenditures to $1.9 billion.

Shopify Q3 2024 earnings

The stock market and stuff

• Rising Costs and Shrinking Margins Leave Bitfarms with a Deepening Net Loss In Q3 2024 (theDeepDive)

• Fintech Klarna files for IPO in US (FT)

• Inside FTX’s $1.8 Billion Lawsuit Against Binance Amid Crypto Collapse Fallout (theDeepDive)

• 7-Eleven Owner Considers Going Private in Japan's Biggest $58 Billion Buyout (Bloomberg)

In the juniors

• SilverCrest Metals Boosts Revenue By 26% Amid Strong Metal Prices Ahead Of Coeur Mining Merger (theDeepDive)

• Borealis Mining Hits 2.25 g/t Gold Over 99.1 Metres At Graben Deposit (theDeepDive)

• AMEX Exploration Outlines $525 Million After Tax NPV(5%) For Perron Project In PEA (theDeepDive)

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