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Germany Calls Snap Election for February

Germany is set for a snap election, scheduled for February 23 following the collapse of Chancellor Olaf Scholz’s government following a failed confidence vote on Monday. The election comes as opposition leader Friedrich Merz’s conservative alliance maintains a strong lead in polls and the economy faces stagnation.

Scholz’s formal defeat in a parliamentary confidence vote, with 394 against, 207 in favor and 116 abstentions, marks the latest step toward elections where seven major parties will compete for seats in the Bundestag.

Latest opinion polls show Merz’s CDU/CSU alliance at 32%, followed by the far-right AfD at 18% and Scholz’s Social Democrats at 16%. The Greens, led by Economics Minister Robert Habeck, stand at 14%.

You can read more on the matter here.

What’s going on?

• TikTok Seeks Supreme Court Intervention to Block US Ban (theDeepDive)

• Canada’s inflation rate fell to 1.9% in November (Globe)

• Terry Fox will be the next Canadian featured on the $5 bill (TS)

• Dominic LeBlanc Takes Over Finance Ministry Amid Trudeau’s Growing Crisis (theDeepDive)

• Biden Administration Agrees to Record $15 Billion Loan to PG&E (WSJ)

• Top Russian general killed in bomb blast in Moscow (FT)

• Edmonton Police Commission Chair to Oversee City Policing from…Portugal? (theDeepDive)

• Walmart employees are now wearing body cameras in some stores (CNBC)

• Trump loses bid to toss hush money conviction on immunity grounds (Reuters)

• Canada Unveils $61.9 Billion Deficit As Finance Minister Resigns (theDeepDive)

• Canada’s Dollar Slumps to Covid-Era Low as Political Risk Mounts (Bloomberg)

What’s the latest?

• Poll: A BMO report shows 30% of Canadians plan to reduce spending in 2025, while 46% say the higher cost of living will impact their financial resolutions. Leading financial anxieties include overall financial situations and unexpected expenses, both cited by 82%. The data is based on a September Ipsos online survey of 3,404 people.

• Postal Employees: Canada Post is resuming operations after a month-long strike by 55,000 workers, with delays expected into the new year due to backlogs. The Canada Industrial Relations Board ordered workers back after hearings determined a deal couldn’t be reached by 2024. The Canadian Union of Postal Workers is challenging the intervention, with hearings set for mid-January.

• Lion Electric: Lion Electric Co., a Quebec-based EV truck and bus maker, expects to seek creditor protection under Canada’s Companies Creditors Arrangement Act after failing to secure additional funding. The company reported $392 million in debt, $31 million in Q3 sales (down 61% year-over-year), and a 64% drop in deliveries. Quebec and Canada invested C$177 million and C$30 million, respectively, while Lion’s market cap plummeted 86% this year to $57 million. Lion's struggles, including delayed subsidies and supply chain issues, add to Quebec's EV sector woes alongside Taiga Motors’ restructuring and Northvolt’s C$7 billion battery project uncertainty.

• Canadian Dollar: The Canadian dollar fell 0.4% to its weakest level since March 2020, trading above 1.43 per US dollar, amid economic underperformance and political turmoil. Finance Minister Chrystia Freeland resigned over opposition to deficit-expanding spending, further unsettling markets. Trump’s renewed tariff threats of 25% on Canada exacerbate pressures, alongside the Bank of Canada’s rate cuts, widening the interest-rate gap with the US. The loonie has declined over 7% year-to-date, on track for its worst year since 2018.

• Inflation: Canada’s inflation edged down to 1.9% in November from 2% in October, nearing the Bank of Canada’s 2% target. Shelter costs rose 4.6%, with rent inflation accelerating to 7.7%, while grocery prices grew 2.6% year-over-year. The Bank of Canada’s key interest rate stands at 3.25%, following two consecutive rate cuts, with further but smaller reductions expected in 2025. Core inflation measures held steady at 2.6% and 2.7%, while goods price inflation slowed, offset by rising service costs driven by high wages and housing.

Agnico Eagle acquires O3 Mining

The stock market and stuff

• Cocoa Futures Surge Past $11,700 As Supply Crisis Deepens (theDeepDive)

• Bitcoin Sets Record for Second Straight Day in Climb to $110,000 (Bloomberg)

• Nvidia falls deeper into correction territory, Broadcom reverses earlier gains to tick lower (CNBC)

• Silver’s Perfect Storm: 200M oz Deficit, M&A Wave and 2025 Price Targets | Peter Krauth (theDeepDive)

In the juniors

• Verses AI Sees Genius Outperform OpenAI Model In Tech Challenge (theDeepDive)

• Mandalay Resources Guides To Lower Gold Production In 2025 (theDeepDive)

• Bunker Hill Delays Restart of Historic Idaho Mine (theDeepDive)

• Lion Electric To File For Creditor Protection After Defaulting On Debt (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.