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Liberal MPs Challenge Carney’s Control

Prime Minister Mark Carney’s narrow Liberal majority has turned caucus discipline from an internal management issue into a governing risk, as anonymous MPs allege that dissent is being squeezed just as the prime minister has gained more room to legislate.

The Liberals’ parliamentary position changed materially in April. Three special-election wins pushed the party to 174 seats in the 343-seat House of Commons, enough to pass legislation without opposition support.

That majority, however, is not deep. Former environment minister Steven Guilbeault’s planned resignation would lower the Liberals to 173 seats and leave Carney with a one-seat majority.

You can read more on the matter here.

What’s going on?

• Toronto’s Chow Vs. FIFA: The Battle Of Bottled Wat (theDeepDive)

• UK and France Finalize 15 Nation Hormuz Mine Clearing Plan (theDeepDive)

• Carney unveils national AI strategy, says it prioritizes safety, reliability, sovereignty (CBC)

• John Bolton Plea Deal Sidesteps Classified Documents Trial (theDeepDive)

• After Two Years, Hungary Steps Aside—Ukraine’s EU Accession Can Now Begin (theDeepDive)

• Canada’s deficit doubled from last fiscal year, says watchdog (CTV)

• Pelley Calls Weiss a Liar After CBS Boss Claims Network Tried to ‘Find a Way Back’ (theDeepDive)

• Canada Still Second in G7 Growth, OECD Says—With Iran War as an Unlikely Tailwind (theDeepDive)

• Canadians should hit back at renewed 51st state insults (Globe)

• House Passes War Powers Resolution Ordering Trump to End Iran War (theDeepDive)

• The CEOs Behind ChatGPT, Claude, and Gemini Just Warned Congress About AI Creating Bioweapons (theDeepDive)

• Mark Carney promises ‘consultation process’ over future of Billy Bishop airport (TS)

• Russia Claims 500-Tonne Gold Output That Would Dethrone China, but Analysts Can’t Explain the Numbers (theDeepDive)

What’s the latest?

• AI: Canada's AI strategy targets 90,000 AI-related jobs and 250,000 AI-enabled jobs by 2031, while increasing business AI adoption from 12% today to 60% by 2034. The plan includes a world-leading supercomputer by 2031, free AI literacy training, and $700M in AI compute funding for businesses, but provides few details on new AI safety and consumer protection measures.

• Energy: Oil fell about 3% after reports that President Trump is reluctant to escalate the Iran conflict, easing fears of a major supply disruption. WTI crude dropped to US$92.64 and Brent fell to US$94.78, while markets also reacted positively to a new Israel-Lebanon ceasefire that could support renewed U.S.-Iran negotiations.

• Economy: A Reuters poll of 31 FX analysts forecasts the Canadian dollar to strengthen to 1.37/USD in 3 months and 1.34/USD in 12 months, implying gains of 1.4% and 3.7%, respectively. Analysts say sustained loonie strength depends on progress in CUSMA trade talks and a recovery in Canada's economy, despite the country entering a technical recession in Q1. Expectations are for economic stabilization in the second half of 2026, supported by housing, investment, infrastructure spending, and reduced dependence on the U.S. market.

• Real Estate: Montreal home sales fell 6.8% year-over-year to 4,623 transactions in May, reflecting a softer housing market amid rising unemployment (7.7% in April vs. 6.3% in January) and slower population growth. Despite weaker demand, prices continued to rise, with median prices reaching $645,000 for single-family homes (+3.2%), $430,000 for condos (+0.6%), and $875,000 for plexes (+6.1%). Inventory increased 13.7% to 21,073 listings, marking the 10th consecutive month of supply growth, particularly in the condo segment.

• Markets: Canada’s S&P/TSX gained 372 points (+1.1%) to 35,173, led by strength in financial stocks. In the U.S., the Dow rose 861 points (+1.7%), while the S&P 500 edged up 18 points and the Nasdaq slipped 52 points. The Canadian dollar weakened to 71.92 US cents, while oil fell 3.2% to US$92.98/barrel and gold rose US$34.80 to US$4,501.70/oz.

Why More Canadians Are Starting to Think About Leaving

The stock market and stuff

• Oil prices fall 3% on report Trump reluctant to restart Iran war (CNBC)

• Orla Mining Wins Ruling Against Camino Rojo Blockade as Authorities Order It Lifted (theDeepDive)

• Blackstone Investors Ask to Pull $4.4 Billion From Private-Credit Fund (WSJ)

In the juniors

• Silver47 Targets Resource Growth With 10,000 Metre Red Mountain Drill Program (theDeepDive)

• Valor Gold to Begin Trading June 5 as Seabridge Closes Courageous Lake Spin-Out (theDeepDive)

• Blue Jay Gold Debuts on the TSXV, Sets Out Fully Funded Steller Drill Plan (theDeepDive)

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