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Democratic Senators Push for 50 Bps Cut

Democratic Senators Elizabeth Warren of Massachusetts and John Hickenlooper of Colorado have urged the Federal Reserve to implement a 50 basis point reduction in the federal funds rate at the upcoming November Federal Open Market Committee meeting.

Their call comes as recent data shows inflation has fallen to 2.1%, the lowest level since February 2021. The Fed has previously noted increased confidence in inflation trending toward their 2% target, stating that risks to employment and inflation goals are roughly balanced. It also follows the Fed’s September decision to lower rates by 50 basis points, marking the first reduction since 2020.

You can read more on the matter here.

What’s going on?

• Canadian Mortgage Delinquency Rates Expected to Rise Through 2025 (theDeepDive)

• Boeing workers vote for 38% pay rise deal to end costly strike (FT)

• OpenAI hires Meta’s former Orion head to lead its robotics efforts (CNBC)

• Uber Q3 Earnings: Is Autonomous Driving A Risk? (theDeepDive)

• Leaders from key countries to skip COP29 climate summit (Reuters)

• B.C. ports shuttered as lockout takes hold in latest labour dispute (BNN)

• Quebec Announces Major Immigration Pathway Suspension and Potential Cuts (theDeepDive)

• Polls open after Kamala Harris and Donald Trump finish their final push (FT)

• Treasuries Slip on Election Day as Volatility Hits One-Year High (Bloomberg)

• Gold Demand Hits Record Q3 Value as Price Surges (theDeepDive)

• Copper Extends Gain on Chinese Recovery While US Election Looms (Bloomberg)

What’s the latest?

• Crypto:Bitcoin rose 4% to over $70,000, fueled by investor interest around the U.S. election. Other major cryptocurrencies also saw gains, with Ether up over 1% and Solana’s token rising more than 4%. Analysts project bitcoin could rally to $90,000 if Trump wins, but may dip to $50,000 if Harris prevails. The broader crypto market outlook depends heavily on potential SEC policy shifts and bipartisan support for crypto regulations.

• Nvidia vs Apple: Nvidia briefly surpassed Apple as the world’s most valuable company on Monday, reaching a $3.38 trillion market cap before Apple reclaimed the top spot later in the day. This milestone follows Nvidia’s recent addition to the Dow Jones Industrial Average, replacing Intel. Nvidia’s market strength is largely due to its advanced AI chips, far from its origins in 3D graphics for video games..

• Trade Deficit: Canada’s merchandise trade deficit narrowed to $1.3 billion in September, down from a revised $1.5 billion in August, as imports fell 0.4% to $65.1 billion and exports dipped slightly by 0.1% to $63.9 billion. Exports of metals and mineral products dropped 5.4%, driven by a 15.4% decline in unwrought metals, while energy exports fell 2.6%. In volume terms, exports rose 1.4% while imports remained steady.

• Thomson Reuters: Thomson Reuters reported a Q3 profit of $301 million (67 cents per diluted share), down from $367 million (80 cents per share) a year earlier, despite an 8% revenue increase to $1.72 billion. Adjusted earnings were 80 cents per share, surpassing analyst estimates of 76 cents. The company raised its organic revenue growth outlook for the year to 7%, up from 6.5%.

• Fortis: Fortis Inc. reported a Q3 profit of $420 million (85 cents per share), up from $394 million (81 cents per share) last year, driven by rate base growth and new rates at Tucson Electric Power. Revenue rose to $2.77 billion from $2.72 billion. Adjusted earnings also hit 85 cents per share, beating analyst estimates of 82 cents.

Canadian Copper to Buy Caribou Complex

The stock market and stuff

• Teck Resources To Spend Up To US$3.9 Billion Over Next Four Years On Copper Strategy (theDeepDive)

• Nvidia briefly overtakes Apple as world’s most valuable company (CNBC)

• Eldorado Gold: It Takes Money to Build a Mine. Q3 Earnings Breakdown (theDeepDive)

• Emerson offers to buy rest of AspenTech in $15 bln deal to sharpen automation focus (Reuters)

• Palantir Sees 30% Revenue Jump in Q3 2024, Raises Revenue Guidance Again (theDeepDive)

In the juniors

• SNDL’s Liquor Sales Slip While Cannabis Gains Drive Record 26.6% Margin in Q3 2024 (theDeepDive)

• Jericho Energy To Spin Out Hydrogen Assets (theDeepDive)

• SNDL Closes On Acquisition Of Indiva Via CCAA Proceedings, Pays $22.7 Million (theDeepDive)

• Endeavour Silver’s 24% Output Drop Drives $17.3M Loss, Cost Pressures Mount (theDeepDive)

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