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Mark Carney Wins Liberal Leadership

Former central banker Mark Carney has emerged as the new leader of Canada’s Liberal Party to become the nation’s prime minister-designate, succeeding Justin Trudeau. Carney’s ascent marks a significant departure from traditional political career paths, echoing the outsider status of figures like President Donald Trump in the US.

Carney, known for his tenure as Governor of both the Bank of Canada and the Bank of England, secured a commanding 86% of votes cast by nearly 152,000 party members, defeating former Finance Minister Chrystia Freeland.

“New threats demand new ideas and a new plan,” he declared at the Liberal Party convention, emphasizing his intent to redefine Canada’s economic and environmental policies.

His win comes at a time when the nation faces significant challenges, including a brewing trade war with Trump.

You can read more on the matter here.

What’s going on?

• Congress Sees Bipartisan Push To Cap Credit Card Interest At 10% (theDeepDive)

• South Korea wants to sell submarines to Canada as relations sour with U.S. (OC)

• Hudson’s Bay Company Files For Creditor Protection Amid Liquidity Crisis (theDeepDive)

• Trump threatens new tariffs on Canada, including 250% tax on dairy (CNN)

• Ontario’s Ford Says ‘Man Was I Wrong’ About Trump (theDeepDive)

• Tanker with jet fuel cargo ablaze after collision with container ship off UK coast (Reuters)

• China Escalates Trade War With $2.6 Billion Tariffs On Canada (theDeepDive)

• Elon Musk’s X suffers multiple outages (CNBC)

• Ford Doubles Down On Mining Development As Economic Shield Against US Tariffs (theDeepDive)

• 7-Eleven owner in talks with Couche-Tard over store sales for takeover deal (Globe)

• Trump Explores Lifting Russia Sanctions While Kremlin Awaits ‘Normalization’ (theDeepDive)

What’s the latest?

• Tariffs: The U.S. will impose 25% tariffs on Canadian steel and aluminum starting Wednesday, with additional tariffs on dairy and lumber delayed until April. A 10% levy on Canadian energy and potash will be reviewed next month. Trump temporarily paused tariffs on goods meeting CUSMA trade rules. Markets reacted with turmoil as the trade war escalated.

• Whitecap: Whitecap Resources and Veren Inc. are merging in a $15-billion all-stock deal to become the largest landholder in Alberta’s Montney and Duvernay shales. Veren shareholders will receive 1.05 Whitecap shares per share owned, with the deal expected to close before May 30. The new entity will have a production base of 370,000 barrels of oil equivalent per day, making it Canada’s seventh-largest oil and gas producer. Veren’s stock rose 14% to $8.03, while Whitecap’s fell nearly 15% to $7.95.

• Markets: The S&P 500 dropped 2.1%, the Nasdaq fell 3.6%, and the Dow declined 405 points as market uncertainty over Trump’s tariffs continues. Nvidia is down 20.2% for the year, Tesla has lost over 40%, and Bitcoin has dropped from $106,000 to around $80,000. The 10-year Treasury yield fell to 4.21% from 4.32%, reflecting increased investor caution. Meanwhile, Redfin’s stock surged 68.1% after Rocket announced a $1.75 billion acquisition, while ServiceNow fell 6.3% after acquiring Moveworks for $2.85 billion.

• RBC: RBC has laid off an undisclosed number of employees as part of a restructuring strategy aimed at streamlining operations and leveraging global scale. The bank emphasized that the cuts are unrelated to its $13.5 billion acquisition of HSBC Canada, which included job protection conditions. RBC recently reported a $5.13 billion profit for Q1, driven by strong trading revenue and business growth.

• BoC: The Bank of Canada is expected to announce a quarter-point interest rate cut on Wednesday, bringing the rate to 2.75%, as it navigates trade war uncertainties with the U.S. Inflation remains a concern, but economists believe the central bank will prioritize economic support amid tariff disruptions. Desjardins warns that prolonged tariffs could push Canada into a recession by mid-year, despite signs of economic recovery in late 2024. The loonie remains vulnerable to trade tensions and interest rate differentials with the U.S., limiting how aggressively the Bank of Canada can ease policy.

i-80 Gold Granite Creek Open Pit PEA

The stock market and stuff

• New Investors Are Now Flooding The Mining Sector? | Jay Martin (theDeepDive)

• Rocket Companies to buy real estate firm Redfin in $1.75 billion deal (Reuters)

• Endeavour Mining Reports “Record” Free Cash Flow, Wider Net Loss In Q4 2024 (theDeepDive)

• North American stock market selloff intensifies as recession, trade war fears grow (Globe)

• BlackRock Leads $22.8 Billion Takeover of Panama Canal Ports (theDeepDive)

In the juniors

• Meridian Mining Outlines $984 Million Net Present Value For Cabacal Deposit (theDeepDive)

• Ashley Gold Completes Burnthut Drill Program Intersecting Multiple Mineralized Zones (JMN)

• Why Silver Could Be the Most Controversial Investment of the Decade | Shawn Khunkhun – Dolly Varden (theDeepDive)

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