Canada’s coming supply chain disruption

Canada’s coming supply chain crisis

Canada’s vital supply chains face an impending disruption as labor tensions escalate between two of the country’s largest railway operators and their workers. Over 9,000 employees at Canadian Pacific Kansas City Ltd. (TSX: CP) and Canadian National Railway Co. (TSX: CNR) could find themselves on strike or locked out as of Thursday, threatening to upend the movement of goods across the country.

The Teamsters Canada Rail Conference (TCRC), which represents a significant portion of these workers, has issued a 72-hour strike notice to CP, warning that unless a last-minute agreement is reached, a strike will commence at 12:01 a.m. Eastern Time on Thursday.

You can read more on the matter here.

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What’s going on?

  • China Tightens Border Controls to Fend Off New Mpox Strain (theDeepDive)

  • Canadian, U.K. tech entrepreneur among six missing after luxury superyacht sinks off coast of Sicily (Globe)

  • Mouse Trap: Disney Tries to Use Streaming Sign-up to Block Wrongful Death Suit (theDeepDive)

  • Cogeco signs pair of agreements to advance plans to offer wireless services (BNN)

  • The hunt for scandium has started (theDeepDive)

  • Libya Power Struggle Builds as Central Bank Pulled Into Dispute (Bloomberg)

  • SpaceX Faces Increasing Federal Scrutiny Amid Environmental Violations (theDeepDive)

  • German finance minister under fire for Ukraine aid veto (FT)

  • Canada’s Largest Nickel Operation & Carbon Storage Facility by 2027 with Mark Selby of Canada Nickel (theDeepDive)

  • Maersk to stop accepting some Canada-bound cargo ahead of possible rail strike (Globe)

  • Métis Nation Demands Halt To Fission Uranium’s Patterson Lake South Project (theDeepDive)

What’s the latest?

  • 7-Eleven Bid: Alimentation Couche-Tard, operator of Circle K, has made a proposal to acquire Seven & i Holdings Co., the owner of 7-Eleven, for an undisclosed figure. A merger would create the world’s largest operator of convenience stores, with around 100,000 locations globally. Although smaller in store count, Couche-Tard’s higher market valuation of $58.5 billion compared to Seven & i's $31 billion prior to the offer makes the bid feasible.

  • Teck Fined: Teck Coal Ltd., now operating as Elk Valley Resources, has been fined nearly $221,000 by the B.C. Ministry of Environment for 29 instances of unauthorized waste discharges at its Elkview operations near Sparwood, B.C. The incidents, which occurred between February 2021 and November 2022, involved the release of process slurry containing harmful substances.

  • AMD Purchase: AMD has announced plans to acquire server maker ZT Systems for $4.9 billion to strengthen its AI chip and hardware portfolio and compete with Nvidia. The deal, which will be 75% cash and 25% stock, aims to enhance AMD's capabilities in AI computing by integrating ZT Systems' engineering expertise. The acquisition is expected to close in the first half of 2025, with AMD planning to sell off the server manufacturing business afterward.

  • BHP Union: The union at Chile's Escondida copper mine, the world's largest, has reached a three-year deal with BHP, ending a strike that had the potential to disrupt global copper supplies. The agreement includes changes in labor conditions such as optimizing shift changes, increasing equipment utilization, and complying with the 40-hour workweek law. The deal also reportedly includes a bonus of around $32,000 per worker, along with an additional $2,000 in soft loans.

  • Green Energy: Doug Ford's government, which initially canceled over 750 renewable energy projects upon taking office in 2018, is now planning the largest expansion of green energy in Ontario in nearly a decade, with 5,000 megawatts of renewable energy set to be procured by 2034. This policy shift is driven by the rising demand for electricity and the need for emissions-free energy.

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The stock market and stuff

  • SEC Slaps Carl Icahn With Charges Over Icahn Enterprises’ Hidden Billion-Dollar Pledges (theDeepDive)

  • Shares in Trump’s social media company hit lowest level since going public (FT)

  • Ivanhoe Mines Hits Commercial Production At Phase 3 Concentrator At Kamoa-Kakula Copper (theDeepDive)

  • GM lays off more than 1,000 salaried software and services employees (CNBC)

  • Silver’s New Floor, With John Feneck (theDeepDive)

In the juniors

  • Nevada King Hits 4.67 g/t Gold Over 42.7 Metres At New Discovery (theDeepDive)

  • PharmaDrug Joint Venture Receives Approval For Phase 1 Clinical Trial (theDeepDive)

  • Cytophage Develops Freeze-Dried Phage Tablets For Poultry (theDeepDive)

  • Hercules Metals Set To Drill Test Two New Targets (theDeepDive)

  • Plurilock Adds Best Buy Canada President Ron Wilson To Advisory Council (theDeepDive)

  • Victoria Gold CEO Reflects on “Mistake” Amid Yukon Cyanide Spill (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.