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Canada’s Secret Is Out: Growth Is Dead

Canada, once praised for its economic resilience during the 2008 global financial crisis, has now become a cautionary tale because of its struggle to adapt to a rapidly changing global landscape. 

A recent article by Rockefeller International chair Ruchir Sharma in the Financial Times notes that the country has experienced the worst per capita GDP growth rate among developed economies in the top 50 since 2020, with an annual decline of 0.4%.

You can read more on the matter here.

What’s going on?

• Federal Party Leaders Hit Historic Low in Popularity, Analysis Reveals (theDeepDive)

• Three firms tied to ArriveCan app got $1-billion in federal contracts, Ottawa reveals (Globe)

• Major airlines sue Biden administration over fee disclosure rule (Reuters)

• Biden to Escalate Tariffs on Chinese Goods, EVs Up To 102.5% (theDeepDive)

• Fire officials worry wind could push wildfire into B.C. town today (BNN)

• Michael Cohen Testifies About Negotiating Payments and Bullying Reporters for Donald Trump (WSJ)

• Canada’s April Jobs Numbers Are Driven By The Public Sector And Part Time Employment (theDeepDive)

• Jerry Seinfeld speech at Duke commencement prompts walkout protesting his support for Israel (Globe)

• Iraq Rejects Further OPEC+ Oil Production Cuts (theDeepDive)

• Canada's Trudeau backs away from tax threat on apartment owners (BNN)

• Is There Still “Mutual Respect” If China Allegedly Hacked The UK Ministry of Defence? (theDeepDive)

What’s the latest?

• BHP Rejected: BHP Group's latest attempt to acquire Anglo American, a move that could make it the world’s top copper producer, was turned down even after they raised their initial offer by 15%. The offer was part of BHP's strategic effort to enhance its portfolio with Anglo’s coveted South American copper assets. Anglo American rejected this improved proposal, which was valued at approximately £34 billion (US$43 billion) and insisted on the divestiture of its South African units.

• REIT Tax: The Canadian government has decided not to alter the tax treatment of real estate investment trusts, as confirmed by a recent statement from the finance department. This decision follows considerable pressure from the real estate sector, which argued that the proposed changes would increase their capital costs and hinder their ability to contribute to the housing supply.

• BMO Cuts: Bank of Montreal is continuing to downsize its U.S. investment banking staff, including cutting ties with at least two managing directors, particularly in the health-care division. This move is part of an ongoing cost reduction strategy that began last year, aiming for $400 million in annual savings by the end of 2024.

• GME Insanity: GameStop Corp. is experiencing a surge reminiscent of the meme-stock frenzy of 2021, with shares jumping as much as 118% before backing off. This spike follows a new post from Keith Gill, known as "Roaring Kitty," who played a central role in the 2021 rally by promoting GameStop on social media. His recent post, the first since June 2021, has garnered over 8 million views, fueling the latest increase in the stock’s value.

• SpaceX Bills: SpaceX has faced numerous complaints and legal actions from construction-related businesses over unpaid bills in Texas, where the company has been expanding its facilities. A review by Reuters revealed that more than two dozen companies have filed at least 72 liens since 2019 against SpaceX properties, seeking payments totaling over $2.5 million.

China's Buying Frenzy Igniting Gold Rally

The stock market and stuff

• Squarespace to go private in $7 billion private-equity deal (CNBC)

• Anglo American Rejects BHP’s Fresh $43 Billion Takeover Bid (WSJ)

• GameStop Surges as ‘Roaring Kitty’ Return Adds Fuel to Rally (Bloomberg)

• Shein’s U.S. charm offensive and IPO could hinge on NRF membership. So far, it’s been rejected (CNBC)

In the juniors

• Alaska Energy Metals Sells Off Mexican Subsidiary, Interest In ASX-Listed Gold Explorer (theDeepDive)

• Canada Nickel Reports Recoveries Of Up To 59% Nickel From Mann Property Samples (theDeepDive)

• Planet 13 Closes US$63.4 Million Purchase Of Florida-Based VidaCann (theDeepDive)

• PharmaDrug Anticipates Biosynthetic Cocaine Commercial-Scale Production In As Little As 12 Months (theDeepDive)

• Max Resource Options Out Cesar Copper-Silver Project To Freeport-McMoRan For $50 Million In Expenditures (theDeepDive)

FULL DISCLOSURE: Alaska Energy Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Alaska Energy Metals. The author has been compensated to cover Alaska Energy Metals 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.