Sponsored by Cytophage Technologies

Newsom vs. Trump Intensifies

In a dramatic escalation of political tensions, California Governor Gavin Newsom publicly threatened to withhold billions of dollars in federal tax payments from the US government, deepening a contentious and highly charged dispute with President Donald Trump’s administration. The high-stakes clash centers primarily on immigration enforcement policies, the unprecedented deployment of federal troops in Los Angeles, and longstanding fiscal grievances between California and the federal government.

Newsom forcefully articulated his stance on X, stating, “Californians pay the bills for the federal government. We pay over $80 billion more in taxes than we get back. Maybe it’s time to cut that off.”

You can read more on the matter here.

What’s going on?

• Playing It Safe: ‘All-In’ Pod Keeps Mum about Musk-Trump Feud (theDeepDive)

• Carney says Canada will meet 2% NATO spending target by March (CBC)

• Kenney Accuses Carney of Contradicting the Constitution on Pipeline Authority (theDeepDive)

• Canada cracks down on immigration applicants over spouses (TS)

• Canada Bans ArriveCAN Contractor from Government Work for 7 Years (theDeepDive)

• Trump’s travel ban takes effect as tensions escalate over U.S. immigration enforcement (Globe)

• Britain Prepares Nuclear Power Push as Aging Plants Near Closure (theDeepDive)

• Norway’s oil fund calls for urgent reform of European capital markets (FT)

• Carney Government Tables Bill To Automatically Grant Citizenship To Foreign Descents (theDeepDive)

• Social Security Chief Says Musk’s DOGE Figures Heavily in Agency’s Plans (WSJ)

• Steve Bannon Urges Trump: Deport Musk, Seize SpaceX (theDeepDive)

What’s the latest?

• Shein: Shein plans to expand its manufacturing in India, aiming to grow its supplier base from 150 to 1,000 within a year and start exporting India-made products internationally in 6–12 months. This move comes amid the U.S.-China trade warand efforts to bypass potential 25% tariffs. Currently, India holds a 10% tariff rate while trade talks continue. The expansion aligns with Shein’s IPO ambitions and follows its 2024 return to India through a licensing deal with Reliance Retail.

• Politics: Canada will raise defence spending to 2% of GDP this fiscal year, up from 1.45% in 2024, meeting NATO's long-standing target ahead of schedule. The plan includes investments in submarines, aircraft, artillery, drones, and Arctic surveillance, and participation in Europe’s €150B ReArm program. Projected spending for 2025–26 is $52.3B, with a new defence policy to be drafted immediately. Canada joins 22 of 32 NATO allies now meeting or exceeding the 2% benchmark.

• Real Estate: Canada’s average asking rent in May 2025 dropped 3.3% year-over-year to $2,129, marking the eighth straight annual decline. Purpose-built apartment rents fell 2% to $2,117, and condo rents dropped 3.6% to $2,192. Ontario saw the largest decline at 3.6%, followed by B.C. (2.6%), Alberta (2.4%), and Quebec (1.8%). Rents remain 5.7% higher than two years ago and 12.6% above three years ago, despite the recent cooling.

• Crypto: The GENIUS Act, a Senate bill regulating stablecoins, gained support from 16 Democrats but faces backlash due to a loophole allowing President Trump and his family to profit from crypto. Trump, now heavily involved in the crypto industry, hosted investor dinners and launched his own stablecoin. Fairshake PAC spent over $130M in 2024 elections, targeting both parties and unseating anti-crypto Sen. Sherrod Brown. The bill is expected to pass the Senate soon, with market structure legislation up next.

• OpenAI: OpenAI has reached $10 billion in annual recurring revenue, up from $5.5 billion last year, excluding Microsoft licensing and one-time deals. It now has 500 million weekly users and 3 million paying business customers. Despite losing $5 billion in 2024, the company is targeting $125 billion in revenue by 2029. Its $40 billion funding round in March gave it a valuation of 30× revenue.

Bearcreek Q1 Earning

The stock market and stuff

• Guanajuato Silver Q1 Earnings: Trending Positive (theDeepDive)

• US Stocks Inch Higher as US-China Trade Talks Kick Off in London (Bloomberg)

• Lululemon Shares Crash On Dismal Earnings Guidance Cut (theDeepDive)

• Apple Under Pressure to Show AI Progress at Today’s WWDC Event (WSJ)

• Osisko Development: The Revised Cariboo Feasibility Study (theDeepDive)

In the juniors

• Tudor Gold Enters Binding LOI To Acquire American Creek Resources (theDeepDive)

• Cascadia Minerals To Acquire Granite Creek Copper In All-Stock Deal (theDeepDive)

• Canada Nickel Announces Partnership To Commercialize New CO2 Sequestration Tech (theDeepDive)

• Galantas Gold To Give Up 80% Interest In Flagship Project For US$14 Million Debt Settlement (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.