Sponsored by Carlyle Commodities

A chocolate crisis is brewing

After wholesale cocoa prices surged past their 46-year-old peak, reaching a record high, chocolate prices are poised to increase, prompting what could be a crisis-like phenomenon for the grocery staple.

In an analysis by Bloomberg’s Javier Blas, a seismic industry shift is said to be underway as prices soar to unprecedented levels, driven by a perfect storm of supply shortages and escalating demand. Historically low prices, fueled by an abundance of West African smallholder farmers, have given way to a price surge that shows no signs of abating.

You can read more on the matter here.

What’s going on?

• The US Is About To Become Germany’s Top Trade Partner (theDeepDive)

• Prime Minister in Vancouver Tuesday to make housing announcement alongside Eby, Sim (BNN)

• Houthis Sink British Ship In The Red Sea, US Strikes Submarine Drone (theDeepDive)

• Elon Musk says first Neuralink patient can control a computer mouse through thinking (CNBC)

• Canada Sees Inflation Rise By 2.9% In January (theDeepDive)

• China rate cut gives households big helping hand (Reuters)

• Shortfall In Uranium Increases As Demand Grows (theDeepDive)

• U.S. crude hovers near three-month high as Middle East conflict rages on (CNBC)

• Trump Launches Sneakers at Sneaker Con, Man Buys Signed Pair for $9000 (theDeepDive)

• Greek ship attacked in Red Sea by Houthis arrives in Aden with cargo (Reuters)

• China’s Dominance in Global Element Production Risks Supply Flow Amid Constraints (theDeepDive)

What’s the latest?

• January CPI: Canada's inflation rate saw a significant drop to 2.9% in January, surpassing forecasters' expectations and moving within the Bank of Canada's target range of one to three percent. This decline, from 3.4% in December, was largely driven by lower gasoline prices. Additionally, grocery price increases slowed, with a year-over-year rise of 3.4% in January compared to 4.7% in December.

• Credit Card Consolidation: Capital One Financial Corp. has announced a $35 billion all-stock acquisition of Discover Financial Services, setting the stage to become the largest U.S. credit card issuer by loan volume. This strategic move, offering a 26.6% premium on Discover's closing price as of February 16, is not only the largest global merger of the year but also positions the new entity to robustly compete with major players like JPMorgan Chase & Co. and Citigroup Inc.

• TD Settlement: TD Bank has reached a $15.9 million settlement in a class-action lawsuit over the charging of non-sufficient funds fees, resolving allegations that it improperly charged customers twice for transactions that failed due to insufficient funds. As part of the settlement, approved by the Ontario Superior Court, TD agreed to enhance its disclosures and modify its policy to permit a full reversal of the fee for first-time issues brought up by customers.

• Cyber Takedown: An international operation led by Britain's National Crime Agency and the FBI has seen law enforcement agencies disrupt the notorious Lockbit ransomware gang, arresting two Russian nationals and seizing the gang's infrastructure. Dubbed "Operation Cronos," the collaborative effort across 10 countries has rendered Lockbit "effectively redundant," seizing control of its websites, source code, and providing decryption keys to assist victims.

• Loblaw Expansion: Loblaw has announced an unprecedented investment exceeding $2 billion, earmarked for the expansion and enhancement of its retail network across Canada. This ambitious plan includes the construction of over 40 new stores and the expansion or relocation of 10 existing outlets. Additionally, the company aims to renovate more than 700 locations, significantly modernizing its extensive portfolio of over 2,500 stores nationwide.

The Real Cost: International Students

The stock market and stuff

• Reddit Signs $60 Million Per Year Deal For AI Training Data (theDeepDive)

• US Supreme Court won't review Apple's win against $503 million patent verdict (Reuters)

• Walmart's earnings shine as it preps $2.3 billion Vizio acquisition (Reuters)

• OpenAI Deal Lets Employees Sell Shares at $86 Billion Valuation (Bloomberg)

• Nvidia dethrones Tesla as Wall Street's most traded stock (Reuters)

In the juniors

• F3 Uranium’s New Murphy Lake Option To See $18 Million In Work Expenditures In First 3 Years (theDeepDive)

• Aurora Cannabis Replaces CFO, Conducts Reverse Split (theDeepDive)

• Turkey Cancels Environmental Permits For SSR Mining’s Copler Mine, Detains Company Director (theDeepDive)

• Sayona Mining Reports Post-Tax NPV(8%) Of $2.2 Billion For Moblan Lithium Project In James Bay Region (theDeepDive)

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