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Musk’s $2T Cut Pledge Falls Flat

The Trump administration plans to ask Congress for $9.4 billion in spending cuts next week, a fraction of the $2 trillion billionaire Elon Musk originally promised to slash from the federal budget through his Department of Government Efficiency.

The modest request represents less than 0.5% of Musk’s initial target. To meet a $1 trillion annual goal, he said during a March cabinet meeting, it would require “saving $4 billion per day every day from now through the end of September.”

The White House will send Congress a “rescissions package” on Tuesday to formalize some cuts made by DOGE, according to administration officials. The package includes $1.1 billion from the Corporation of Public Broadcasting and $8.3 billion in foreign assistance.

You can read more on the matter here.

What’s going on?

• Carney Tables Half-Trillion-Dollar Plan With Revenue Questions Unanswered (theDeepDive)

• China calls out Trump for ‘abuse’ of semiconductor export controls (CNBC)

• Carney’s Two-Year Fast-Track Push For Major Projects Is Coming (theDeepDive)

• TFSA contribution limit info has been unavailable since mid-April, CRA confirms (CBC)

• Former Immigration Chief Says Canada Misrepresents Immigrant Selection Data (theDeepDive)

• Carney says he wants Canada to join major European defence plan (BBC)

• Mark Carney Wants More Than Pipelines (theDeepDive)

• Taylor Swift buys back her first six albums, now has full control of her music (Globe)

• What Happened to the Fort Knox Audit? (theDeepDive)

• Tariff Revenues Rise Sharply in Canada After Retaliation Against Trump Levies (Bloomberg)

• Trump Renews Push to Privatize Fannie Mae, Freddie Mac (theDeepDive)

• Supreme Court Allows Trump Administration to End Parole Program for Some Migrants (WSJ)

What’s the latest?

• RBC: Royal Bank of Canada will require employees to work in-office four days a week starting September, according to internal memos. The change excludes fully remote or already in-office roles. The announcement, made after RBC reported weaker-than-expected Q2 earnings due to increased loan loss provisions, has sparked employee concerns in internal chats about commutes and costs. RBC follows JPMorgan Chase, which mandated a full return to office for hybrid staff earlier this year.

• Economy: Canada's economy grew 2.2% annualized in Q1, beating forecasts of 1.7%, driven by a 1.6% rise in exports as U.S. firms stockpiled ahead of Trump’s tariffs. However, final domestic demand stalled for the first time since 2023, with household spending slowing to 0.3%. Despite growth, signs of domestic weakness raise caution. Markets now see an 82% chance of a Bank of Canada rate hold next week, with rates currently at 2.75%.

• Oil: Analysts cut 2025 oil price forecasts for the third month in a row. Brent is now seen averaging $66.98/barrel (down from $68.98), and U.S. crude at $63.35 (down from $65.08). Rising OPEC+ supply, including 411,000 bpd increases for May–June, and trade-related demand concerns are key drivers. Global oil demand is forecast to grow 775,000 bpd in 2025, slightly above the IEA’s 740,000 bpd. Trade tensions, weak compliance, and potential easing of Russia sanctions all add downward pressure.

• Wall Street: Wall Street drifted Friday as markets reacted to mixed earnings and tariff uncertainty. The S&P 500 dipped 0.2%, Nasdaq fell 0.5%, and the Dow rose slightly. Gap dropped 21.1% despite beating earnings, warning tariffs may add $300M in costs. In contrast, Ulta Beauty rose 14.8% and Costco climbed 3.7% on strong results. SharpLink Gaming surged 1,308% this week after announcing a $425M crypto investment. Treasury yields were steady, with the 10-year at 4.40%and 2-year at 3.92%, as inflation data came in slightly below expectations.

• Tesla: Tesla shares are up over 20% in May despite weak sales in Europe (down 50%) and China (down 25%). The rebound follows Elon Musk’s pledge to focus more on Tesla and less on politics, as he ends his formal role in Trump’s administration. Year-to-date, Tesla stock is still down 12%, better than Apple’s 21% drop. Pension funds have criticized Musk’s leadership, demanding more commitment to Tesla amid protests and declining global sales. Tesla is now leaning into its robotaxi launch in Austin on June 12 and AI initiatives, seeking to regain investor confidence.

Moody's Downgrades the US [Gold to $10,000]

The stock market and stuff

• CIBC Q2 2025 Profit Slides 8% QoQ as Credit Losses Jump to $605M (theDeepDive)

• NatWest returns to full private ownership 17 years after £46bn UK bailout (FT)

• Judge Considers Curbs for Google in AI Arms Race (WSJ)

• Toronto Area Home Sales Plunge 72% to Historic Lows (theDeepDive)

In the juniors

• Ayr Wellness Undertakes Strategic Review To Deal With Debt (theDeepDive)

• ESGold Begins Concentration Tests Ahead Of First Production (theDeepDive)

• Goldshore Repurchases 1% NSR On Moss Gold Project For $7.5 Million (theDeepDive)

• Canopy Growth Sees Q4 2025 Revenue Drop 11%, Net Loss Widen (theDeepDive)

FULL DISCLOSURE: Rua Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Rua Gold 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.