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China targets Canadian trade

China has announced plans to initiate an anti-dumping investigation into Canadian canola imports, escalating trade tensions between the two nations. This move comes in response to Canada’s recent imposition of tariffs on Chinese electric vehicles, steel, and aluminum.

The Chinese Commerce Ministry expressed strong opposition to Canada’s “discriminatory unilateral restrictive measures” and revealed intentions to also investigate certain Canadian chemical products. Canadian Farm Minister Lawrence MacAulay described the situation as “deeply concerning” and pledged to defend the country’s agricultural sector.

You can read more on the matter here.

What’s going on?

• Orano to Build Multi-Billion Dollar Uranium Enrichment Plant in Tennessee (theDeepDive)

• Canadians were slightly supportive of Liberal, NDP deal, new poll shows (Globe)

• NDP Walks From Supply And Confidence Agreement With Liberals (theDeepDive)

• Trump to Adopt Musk Proposal for Efficiency Commission (WSJ)

• Toronto-area home sales decline in August (BNN)

• Trump Supports Marijuana Legalization in Florida … Kind Of? (theDeepDive)

• Michel Barnier appointed French prime minister (FT)

• OPEC+ members delay plans to hike production by two months after oil price slump (CNBC)

• Dutch Regulator Slams Clearview AI with €30.5 Million Penalty for “Massive” Rights Breach (theDeepDive)

• OpenAI considers pricier subscriptions to its Chatbot AI, The Information reports (Reuters)

• U.S. Steel Threatens Plant Closures as Acquisition Deal Faces Political Opposition (theDeepDive)

What’s the latest?

• Canfor Closures: Canfor Corp. announced it is shutting down two northern British Columbia sawmills, affecting about 500 workers, citing U.S. tariffs, timber access issues, and financial losses. The closures of the Plateau mill in Vanderhoof and the Fort St. John operation will reduce production by 670 million board feet annually. Canfor's President and CEO Don Kayne pointed to a significant increase in U.S. tariffs, which nearly doubled to 14.54%, as a critical factor in the decision.

• Weak Home Sales: In August, home sales in the Greater Toronto Area fell 5.3% year-over-year, with 4,975 homes sold, and average selling prices dropped 0.8% to $1,074,425. The composite benchmark price was down 4.6% from the previous year. New listings increased by 1.5% compared to August 2022.

• Russian Oil: Russia's oil product exports fell to a four-month low in August, averaging 2 million barrels per day, down 11% from July. Diesel and gasoil exports, which make up about 40% of Russia's total oil exports, saw a significant 20% decline, largely due to a refinery outage in Belarus that prompted more fuel to be diverted to the domestic market.

• RBC USA: Royal Bank of Canada CEO Dave McKay has expressed reluctance to pursue US bank acquisitions, citing concerns about inheriting problems related to customer deposits and necessary investments. McKay emphasized a preference for organic growth in the US, highlighting the challenges in delivering returns from acquisitions. His stance follows issues with RBC's acquisition of City National Bank, which has faced profitability and regulatory challenges in recent years.

• Shell Asset Sale: Saudi Aramco, Abu Dhabi National Oil Co., and Trafigura are among the contenders to purchase Shell Plc’s service stations in South Africa, with interest also coming from South Africa's Central Energy Fund, Sasol Ltd., and Oman’s OQ Trading. The sale, which could raise nearly $1 billion for Shell, includes 600 service stations, as well as trading and fuel supply businesses.

Nations Royalty explained.

The stock market and stuff

• Trump’s New Crypto Project Already Sounds Like A Disaster (theDeepDive)

• Rexall’s U.S. owner sells pharmacy chain to Canadian private equity firm Birch Hill (Globe)

• Nvidia’s Market Slide Deepens Following DOJ Antitrust Subpoena (theDeepDive)

• Canada's services PMI shows August activity down for third straight month (Reuters)

In the juniors

• Amex Exploration Craters 37% After Releasing Mineral Resource Estimate For Perron (theDeepDive)

• Fireweed Metals Substantially Expands Mineral Resource Estimate At Macmillan Pass Project (theDeepDive)

• New Model, Old Roots: Explaining Nations Royalty with Derrick Pattenden (theDeepDive)

• First Majestic Silver To Acquire Gatos Silver In $970 Million Transaction (theDeepDive)

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