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China is driving gold prices

The price of gold has surged to record highs this year, largely driven by strong demand from Chinese consumers and the country’s central bank. As traditional investments like real estate and stocks have faltered, Chinese buyers have turned to gold as a safe haven during times of economic uncertainty.

Retail investors in China have been purchasing gold in various forms, including “gold beans,” which are small, affordable morsels of the precious metal. These beans have become increasingly popular among young investors looking to participate in the gold market without spending large sums on jewelry or bars.

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What’s going on?

• Florida GOP Announces Opposition to Marijuana Legalization Ballot Initiative (theDeepDive)

• Private equity firms circle Peloton for potential buyout (CNBC)

• Russians Are Coming to Terms With Putin’s War in Ukraine (Bloomberg)

• Is Jagmeet Singh Biased in His Attacks Against Loblaws? (theDeepDive)

• Apple Is Developing AI Chips for Data Centers, Seeking Edge in Arms Race (WSJ)

• New rules on renewable energy are driving away investment, Alberta government told (Globe)

• Paramount Now In Negotiations With Sony Pictures and Apollo Global (theDeepDive)

• U.S.-Israel Rift Widens Over Rafah Assault (WSJ)

• India forced meeting about Sikh activists by keeping Trudeau’s plane in air during 2018 trip (Globe)

• UBS Returns to Profit as CEO Ermotti Affirms Buyback Plans (Bloomberg)

• Canadian Pension Fund Hit Hard by Plummeting Value of San Francisco Office Property (theDeepDive)

What’s the latest?

• Google Sues CRTC: Google has initiated legal action against Canada's broadcasting regulator, the CRTC, challenging the inclusion of YouTube's advertisement revenue from user-generated content in the calculation of regulatory fees. The tech company filed a lawsuit in the Federal Court of Canada, arguing that this type of revenue should not be considered due to exemptions in the Broadcasting Act.

• Tesla Investigation: The U.S. NHTSA is intensifying its investigation into Tesla's December recall of over 2 million vehicles, focusing on the automaker's implementation of new Autopilot safeguards. This recall, aimed at ensuring drivers remain attentive, covers nearly all Tesla vehicles on U.S. roads from model years 2012 to 2024. NHTSA has raised concerns after 20 crashes were reported involving vehicles with the updated Autopilot software.

• Disney Earnings: Walt Disney Co. reported a second-quarter profit of $1.21 per share, surpassing the analyst consensus of $1.12 per share, and raised its full-year earnings growth forecast to 25% from 20%. However, revenue fell short of expectations and Disney+ subscribers were lower than anticipated, leading to a 4.7% drop in share price in early trading.

• TD Risk: Gabriel Dechaine, an analyst with National Bank, has highlighted potential long-term financial impacts for TD Bank following revelations of its involvement in a U.S. money-laundering investigation. Dechaine suggests that TD could face $1 billion in downside risks to its earnings potential due to non-monetary penalties and ongoing high compliance costs. These factors could restrict the bank's revenue growth and necessitate continued heavy investment in compliance systems and staff.

• Weston Earnings: George Weston Ltd. reported a decrease in its first-quarter profit compared to last year, with net earnings dropping to $236 million, or $1.73 per diluted share, from $426 million, or $3.01 per diluted share. Despite the decline in profit, largely due to one-time charges related to its stake in Choice Properties REIT, the company raised its quarterly dividend from 71.3 cents to 82 cents per share.

Metal that supercharges EV batteries

The stock market and stuff

• Gold Prices Soar As Chinese Consumers And Central Banks Drive Demand (theDeepDive)

• Disney's surprise streaming entertainment profit offset by weaker TV business (Reuters)

• Cyber Startup Wiz Raises $1 Billion on Path to IPO (WSJ)

• Tesla’s Largest Retail Shareholder Says Elon Musk Is a ‘Magician’ Who’s Only in it ‘for Money and Power’ (theDeepDive)

In the juniors

• Canopy Growth Exercises Wana, Jetty Call Options As Part Of US Strategy (theDeepDive)

• Golden Cariboo Reports 0.87 g/t Gold Over 32.0 Metres After Further Compiling Data (theDeepDive)

• Patriot Battery Metals Hits 2.90% Li2O Over 34.4 Metres In High-Grade Discovery At CV13 (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.