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Liberals want another tax

Prime Minister Justin Trudeau has issued a stern warning to grocery chains, signaling the possibility of imposing new taxes if they fail to rein in the escalating food prices.

In a move to address the mounting concerns over rising costs of living, Trudeau has summoned the heads of the nation’s five largest supermarket chains, which notably include giants like Walmart and Costco, to develop a comprehensive strategy to combat the surge in prices before the upcoming Thanksgiving holiday.

During a caucus retreat in London, Ontario, Trudeau left no room for ambiguity, stating, “If their plan doesn’t provide real relief for the middle class and people working hard to join it, then we will take further action, and we are not ruling anything out including tax measures.”

You can read more on the matter here.

What’s going on?

• United Auto Workers Strike Against Big 3 Detroit Automakers As Deadline Lapses (theDeepDive)

• Russia’s Putin Highlights Flaws in US Politics Amid Trump’s Legal Woes (theDeepDive)

• Fed losses breach $100 billion as interest costs rise (Reuters)

• Are the “Rich” Selling Their Luxury Gear (and Tanking the Markets)? (theDeepDive)

• Olymel Announces Massive Closures Of Food Production Facilities (theDeepDive)

• 'Alien bodies' presented in Mexican Congress panned as 'stunt' (Reuters)

• Justin Trudeau Drops GST From New Rental Builds (theDeepDive)

• Georgia Governor Suspends Gas and Diesel Taxes Amid Rising Fuel Costs (theDeepDive)

• UAW hits Detroit Three automakers with first simultaneous strike (Reuters)

• Canada Sees Sharp Drop in Permanent Resident Applications in July (theDeepDive)

What’s the latest?

• UAW Strike: The limited strike by autoworkers in the United States is expected to have an impact on the Canadian auto sector due to the deep integration of the industry in both countries. The strike, involving about 13,000 U.S. workers at General Motors, Ford, and Stellantis, comes as Unifor holds contract talks in Canada with these same U.S. automakers.

• Oil Rallies: Oil prices reached their highest levels of the year, with some analysts suggesting they could hit $100 a barrel before the year ends. International benchmark Brent crude futures traded at $93.46 a barrel, while U.S. West Texas Intermediate futures stood at $90.09. The rally is driven by expectations of tighter supply after Saudi Arabia and Russia extended their oil output cuts through the end of the year.

• Russia Raises Rates: Russia's central bank has raised its key interest rate to 13%, marking the third consecutive increase as it responds to inflationary pressures and a weakening rouble. The bank had previously raised rates by 350 basis points to 12% in response to the rouble's depreciation and calls for tighter monetary policy.

• Fighting Shrinkflation: French grocery chain Carrefour has placed warning labels on products that have recently shrunk in size but have seen an increase in price. The labels aim to pressure suppliers who have raised prices for the chain even as raw material prices have eased. Carrefour marked 26 products with labels reading, "This product has seen its volume or weight fall and the effective price by the supplier rise."

• SoftBank’s ARM Boost: Arm Holdings, the British chip designer, saw its shares rise by nearly 25% on its first day of trading, valuing the company at more than double the $32 billion that SoftBank paid to acquire it in 2016. This success will make it easier for SoftBank to revert to its acquisition-hungry strategy.

Emerita’s copper-rich discovery

The stock market and stuff

• FTX Examining Potential Retail Clawback After Getting Court Nod To Sell Crypto Assets (theDeepDive)

• Google to pay $155 million in settlements over location tracking (Reuters)

• US Congressman Leads Charge In Preventing The Fed To Develop CBDC (theDeepDive)

In the juniors

• E3 Lithium Jumps 12% On Positive Preliminary Results At Pilot Plant (theDeepDive)

• LightPath Technologies stock plummets 13% post Q4 results (SA)

• Sabre Gold Sells Brewery Creek Mine, Exploration Assets To Victoria Gold For $13.5 Million (theDeepDive)

FULL DISCLOSURE: Sterling Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Sterling Metals. The author has been compensated to cover Sterling Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.