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Canada Rejects U.S. Dairy Demands

Trade Minister Mary Ng rejected any changes to Canada’s dairy supply management system Wednesday, despite mounting US pressure and tariff threats.

“Correct,” Ng told CTV‘s Power Play when asked if Canada would maintain its current dairy policies. She pointed to a 2023 trade panel that ruled in Canada’s favor after American farmers challenged how the government allocates its tariff-free dairy import permits.

Trump’s commerce secretary nominee Howard Lutnick attacked Canadian dairy policies at his confirmation hearing, claiming that “Canada treats our dairy farmers horribly. That’s got to end.”

You can read more on the matter here.

What’s going on?

• Judge Halts Federal Worker Buyout Program Hours Before Deadline (theDeepDive)

• Unemployment rate ticked down to 6.6% in January as economy sees solid month of job gains (CBC)

• DeepSeek’s Claims On Infra Costs Might Actually Be Way Bigger (theDeepDive)

• Donald Trump wants to annex Canada to gain access to its critical minerals, Trudeau says (Globe)

• EPA Warns 1,000 Workers of Possible Immediate Dismissal (theDeepDive)

• Big Tech lines up over $300bn in AI spending for 2025 (FT)

• White House Plan Forces Major Job Cuts at Science Agency (theDeepDive)

• Bill Ackman reveals he’s been building a more than $2 billion stake in Uber (CNBC)

• Wilkinson Seeks Deeper US Trade Links as Provinces Urge Local Focus (theDeepDive)

• Bank of Canada's Tiff Macklem says tariff threat adds to central bank challenges (BNN)

• Will A Third Impeachment Attempt On Donald Trump Succeed? (theDeepDive)

• Tech Giants Double Down on Their Massive AI Spending (WSJ)

• EU Weighs Tech Restrictions in Response to US Tariff Threat (theDeepDive)

What’s the latest?

• Canopy Growth: Canopy Growth reported a Q3 loss of $121.9 million ($1.11 per share), improving from a $216.8 million loss ($2.62 per share) a year earlier. Net revenue declined to $74.8 million from $78.5 million, but excluding divested businesses, revenue grew 8%. Growth was driven by Canadian medical cannabis, Storz & Bickel vaporizers, and international cannabis sales.

• Egg Prices: Egg prices in the U.S. have surged due to avian flu, with a dozen eggs averaging $4.15 in December and reaching nearly $10 in some stores. Canada, however, is less affected due to smaller, more dispersed farms and a supply management system that stabilizes prices. In December, Canadian eggs averaged $4.75 per dozen, with little fluctuation. Experts say Canada is unlikely to experience sustained price hikes like the U.S.

• AI: The Canadian government has restricted Chinese AI company DeepSeek’s chatbot on some mobile devices due to privacy concerns, including the collection of sensitive personal data. The restriction applies to devices managed by Shared Services Canada, with other departments advised to follow suit. Security experts warn DeepSeek gathers user details such as names, emails, phone numbers, and chat histories.

• Housing: Canada's housing construction is expected to decline, with fewer than 250,000 new homes in 2025 and under 235,000 by 2027, despite previous government estimates of 500,000 annually until 2031. Supply chain issues, labor shortages, high interest rates, and potential immigration policy changes are contributing to the slowdown. The CMHC reports detached and semi-detached homes remain in demand, while rental affordability may improve due to rising vacancy rates. Developers say affordability remains a challenge, even as demand persists.

• Politics: Prime Minister Justin Trudeau hosted a summit on Canada’s economic resilience amid potential U.S. tariffs, with Trump’s 25% tariff threat on hold until March 4. Business and labor leaders stressed the need for internal trade reforms and diversifying trade partners. Advisory council member Flavio Volpe warned of an unprecedented industrial threat, calling for collective action. Industry representatives urged government support if tariffs are imposed, including tax relief and wage subsidies.

Trump's plan for Gaza

The stock market and stuff

• SilverCrest Shareholders Approve Coeur Mining Transaction, Deal To Close February 14 (theDeepDive)

• Exclusive: Shein poised to slash valuation to $50 billion in London IPO (Reuters)

• Amazon Sees Earnings Double In Q4 2024 But Weak Guidance Causes Shares To Drop (theDeepDive)

In the juniors

• Aurora Cannabis Enters $27 Million Supply Agreement With SNDL (theDeepDive)

• VR Resources Provides Exploration Update on Silverback and Empire Projects, Ontario (JMN)

• Endeavour Silver Sees Initial Capital Costs Jump 22% At Terronera (theDeepDive)

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