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Cocoaflation?

It might be a good time to hoard candy bars, as Nestlé (SWX: NESN) warns of an impending “cocoaflation.”

The cocoa market is experiencing unprecedented turmoil, with futures prices more than doubling this year due to a significant global shortage. This surge in cocoa prices is expected to have a ripple effect on the chocolate industry and consumer behavior, according to a Bloomberg report that cited Mark Davies, managing director at Nestlé Confectionery UK & Ireland.

You can read more on the matter here.

What’s going on?

• Article 4: Russia and North Korea’s Bold Move Towards Mutual Defense (theDeepDive)

• China warns of possible 'trade war' with EU (Reuters)

• OpenAI Co-Founder Ilya Sutskever Is Starting A New AI Firm (theDeepDive)

• Businessman killed in Toronto triple shooting defrauded hundreds of victims, netted at least $100-million, records show (Globe)

• U.S. and China hold first informal nuclear talks in five years (Reuters)

• Insane $223k Airplane Catering Bill Highlights Trudeau’s Disconnect with Middle-Class (theDeepDive)

• Supreme Court Upholds US Gun Ban in Domestic Violence Cases (Bloomberg)

• SoftBank’s Nvidia Blunder: A $150B Missed Opportunity (theDeepDive)

• Exclusive: Amazon mulls $5 to $10 monthly price tag for unprofitable Alexa service, AI revamp (Reuters)

• Indian Students No Longer Want to Come to Canada, Application Rate Falls 83% In March (theDeepDive)

• Lawyer couple accused of stealing millions from homebuyers while law society stalled (CBC)

• Ohio Attorney Suspended for Tossing Poop-Filled Pringles Cans from His Car Window Has Been Reinstated (theDeepDive)

• Neuralink competitor Paradromics gears up to test its brain implant on humans (CNBC)

What’s the latest?

• Retail Sales: Canadian retail sales likely fell by 0.6% in May, nearly erasing the 0.7% gain in April, highlighting ongoing consumer spending weakness, according to an advance estimate from Statistics Canada. April's increase was primarily driven by gasoline stations and fuel vendors due to higher prices, while sales excluding autos surged 1.8%.

• CFIB Protests: With Canada's capital gains tax inclusion rate set to rise to 66.7% on June 25, the Canadian Federation of Independent Business is urging the federal government to reconsider the change, warning it could negatively impact thousands of small businesses. CFIB's survey reveals that over half of small-business owners believe the increase will affect the sale of their business, investments, and reinvestments within their companies.

• EV Protectionism: Ontario Premier Doug Ford has urged Prime Minister Justin Trudeau to impose tariffs on Chinese imports, including at least a 100 per cent levy on electric vehicles, to align with the Biden administration's policy. Ford accused China of exploiting low labor standards and dirty energy to flood the market with cheap EVs, which he claims threaten Ontario and Canadian jobs.

• EU/China Trade: Beijing warned of a potential trade war with the European Union over proposed tariffs on Chinese electric vehicle imports, as German Economy Minister Robert Habeck began a visit to China. Habeck's trip, the first by a senior European official since the EU proposed the tariffs, aims to address these tensions. In retaliation for the EU's move, China has launched a dumping probe into EU pork imports and is considering higher tariffs on European gasoline-powered cars.

• Nuclear Talks: The United States and China resumed semi-official nuclear arms talks in March, the first in five years, where Chinese representatives assured their U.S. counterparts they would not use nuclear weapons in a conflict over Taiwan. Beijing maintained its no-first-use policy and minimal deterrence stance, despite the U.S. concerns about China’s nuclear modernization efforts and the potential for nuclear threats.

Copper: the lifeblood of electrification

The stock market and stuff

• Canada Updates Critical Minerals List, Adding Silica, Phosphorous (theDeepDive)

• Ola Electric Is Said to Face Investor Pushback on IPO Valuation (Bloomberg)

• A Massive Ad Campaign Is Labeling Tether As "Tethered To Corruption" (theDeepDive)

• Investors hate the Canadian dollar (Globe)

• Nvidia Stock Falls As Challenger AI Chipmaker Cerebras Files For IPO (theDeepDive)

In the juniors

• Verses AI Secures US$10 Million Investment From UAE-Based G42 (theDeepDive)

• IsoEnergy To Move Listing To TSX Big Board (theDeepDive)

• Nations Royalty Hits Market With Multiple Key Assets In BC’s Golden Triangle (theDeepDive)

• Cytophage Enters Letter Of Intent With Major Singapore-Based Agrifood Company (theDeepDive)

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