Sponsored by Sage Potash

Carney Rejects Ford’s Tariff Retaliation Call

Prime Minister Mark Carney on Thursday rejected calls from Ontario Premier Doug Ford to impose retaliatory tariffs on the United States, saying Canada should prioritize ongoing trade negotiations over escalation.

“There’s times to hit back and there’s times to talk, and right now is the time to talk,” Carney told reporters at a news conference in Toronto, where he briefed Ford on the status of trade talks with Washington.

The rebuff came two days after Ford delivered a forceful speech at the Empire Club of Canada, urging the prime minister to take a harder line with US President Donald Trump’s administration.

You can read more on the matter here.

What’s going on?

• Carney Rebuffs Ford’s Call to Hit Back at US Over Tariffs (theDeepDive)

• Canadian passport now among the world’s most powerful passports, outranking U.S. for visa-free access (CTV)

• Capital Relief Is Coming As US Bank Regulators Readies Leverage Ratio Cut (theDeepDive)

• Carney announces plan for 1,000 more border officers, with boost in benefits to aid recruitment (Globe)

• Watchdog Group Renews Push for Independent Prosecutor in Trudeau SNC-Lavalin Case (theDeepDive)

• OpenAI stops Sora videos of Martin Luther King Jr. after users made ‘disrespectful’ deepfakes (CNBC)

• EDC: Recession For Canada In 2025 Due To Trump Tariffs, Trade Conflicts (theDeepDive)

• Trump welcomes Zelenskyy to White House (FT)

• Are Tariffs The Real Reason Canada’s Economy Is Failing? (theDeepDive)

• Goldman Sachs Pursues Bigger Share of AI Infrastructure Financing Boom (WSJ)

• Trump Authorizes CIA Covert Operations in Venezuela (theDeepDive)

What’s the latest?

• Gold: Gold hit a record high of over US$4,200/oz, driving global central banks to stockpile — except Canada, the only G7 nation with zero gold reserves. Canada sold its last gold in 2016; its US$127 B reserves are entirely in paper currencies, over half in USD. TD Securities strategist Bart Malek says the lack of gold increases vulnerability to inflation and currency risk, while 73% of central banks expect the USD share of reserves to fall. Despite being the world’s 4th-largest gold producer, Canada holds none, which industry leaders call a missed opportunity.

• Markets: U.S. stocks steadied Friday with the S&P 500 up 0.2%, Dow Jones Industrial Average up 138 points (0.3%), and Nasdaq Composite up 0.2%. Bank stocks rebounded after strong earnings from Truist Financial, Fifth Third Bancorp, and Huntington Bancshares. Zions Bancorp rose 5.3% and Western Alliance Bancorp gained 2.4% after sharp losses. The 10-year Treasury yield climbed to 4.01%, and gold prices dipped 1.4% to $4,245.20/oz after hitting a record.

• Trade War: Donald Trump admitted his proposed 100% tariff on Chinese goods “is not sustainable” but blamed Beijing’s rare earth export curbs for the trade impasse. The U.S. also announced new export controls on critical software by Nov. 1. Trump confirmed a meeting with Xi Jinping in South Korea in two weeks, easing market tensions — U.S. stocks rose modestly Friday. Trade negotiators Scott Bessent and He Lifeng are set to hold talks Friday, signaling a potential thaw.

• Canaccord: Canaccord Genuity is reviewing strategic options for its U.K. wealth management arm and has met with potential buyers, including CVC Capital Partners and Advent International. The unit could be valued at over £1 billion (US$1.34 billion). Shares rose nearly 16% after the news. The firm, with a market cap of US$747.86 million, emphasized no deal is guaranteed.

• Inflation: Economists expect Canadian inflation to rise to 2.2%–2.4% in September from 1.9% in August, mainly due to higher gasoline prices. The Bank of Canada will decide on interest rates Oct. 29, with markets pricing a 64% chance of another 0.25% cut. The central bank’s rate currently stands at 2.5%, and unemployment remains elevated at 7.1%. Core inflation trends and business outlook surveys will be key factors in the decision.

Critical minerals are rerating!

The stock market and stuff

• Scotiabank Cuts More Jobs in Canada (theDeepDive)

• Would Trump’s $110/kg Rare Earth Price Floor Work? (theDeepDive)

• Morgan Stanley Sells $8 Billion High-Grade Bonds (BLOOMBERG)

• JPMorgan CEO Says Gold Could Hit $10,000 in Current Environment (theDeepDive)

• Battery-Free Tags Target 4,600 Walmart Sites In IoT Push (theDeepDive)

In the juniors

• Heliostar Updates Economic Model For La Colorada, Boosting NPV To US$243 Million At $3,500 Gold (theDeepDive)

• Abitibi Metals Expands B26 Mineralization: 150m Step-Out Confirms Continued Growth in the Western Down-Plunge (JMN)

• Tudor Gold Proposes Route Changes For KSM Tunnels To Save Goldstorm Deposit (theDeepDive)

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