Sponsored by Northern Superior

Ottawa Threatens Stellantis With Legal Action

Industry Minister Mélanie Joly threatened legal action against Stellantis less than 24 hours after the automaker announced a shift in Jeep Compass production from Brampton, Ontario, to Belvidere, Illinois.

In a letter to CEO Antonio Filosa, Joly said Ottawa would “exercise all options, including legal,” if obligations tied to government funding are not met—a notably after-the-fact remedy, arriving post-announcement.

Joly argued that the automaker failed to keep the firm’s “full Canadian footprint,” which could constitute contractual default despite billions in public support.

You can read more on the matter here.

What’s going on?

• US Expands Argentina Aid Package to $40 Billion Ahead of Midterm Elections (theDeepDive)

• China accuses U.S. of deliberately causing panic over rare earth controls, says it is open to talks (CNBC)

• X to Display Country Information, Username History on User Profiles (theDeepDive)

• Harvard suffers $113mn loss after Trump’s cuts to research funding (FT)

• Trump Team Plans IRS Overhaul to Enable Pursuit of Left-Leaning Groups (WSJ)

• China Tightens Economic Grip While Trump Sends Mixed Signals (theDeepDive)

• Treasury Hedges Can Deepen Rally as 10-Year Yield Falls Below 4% (Bloomberg)

• Military Seizes Power in Madagascar After President Flees (theDeepDive)

• Carney rules out countertariffs against the U.S. as talks proceed in Washington (Globe)

What’s the latest?

• TSMC: Taiwan Semiconductor Manufacturing Company reported a record Q3 net profit of NT$452.3 B (US$15 B), up nearly 40% YoY, with revenue rising 30% amid strong AI chip demand. The firm is expanding globally with US$100 B in U.S. investments—on top of a prior US$65 B—and new fabs in the U.S. and Japan to mitigate trade risks. It remains a key supplier to Apple and Nvidia. Analysts expect AI demand to stay resilient despite potential tariffs.

• Markets: U.S. stocks rose Thursday with the S&P 500 up 0.3%, Dow Jones Industrial Average up 116 points, and Nasdaq Composite up 0.5%. Tech led gains after Taiwan Semiconductor Manufacturing Co. posted strong profits, with Nvidiarising 1.3%. Salesforce jumped 8% and J.B. Hunt Transport Services surged 17.3%, offsetting drops from Travelers Companies (–4%) and Hewlett Packard Enterprise (–8.8%). Treasury yields eased to 4.04% amid weak manufacturing data and ongoing U.S. government shutdown delays.

• Real Estate: September 2025 home sales in Canada rose 5.2% YoY to 39,700 units, the highest since 2021. Canadian Real Estate Association revised its 2025 forecast to a 1.1% sales decline (473,093 units) from a previous 3% drop. Average home price is projected to fall 1.4% to $676,705, with rebounds expected in 2026 (+7.7% sales, $698,622 price). New listings hit 199,772, up 7.5% YoY, while September prices rose 0.7% YoY.

• Layoffs: Nestlé will cut 16,000 jobs globally over two years as it boosts cost-cut targets to CHF 3 B (US$3.76 B) by end-2026. Of those, 12,000 are white-collar roles, with expected savings of CHF 1 B annually, plus 4,000 manufacturing and supply chain cuts. Leadership changes followed CEO Laurent Freixe’s dismissal and Chairman Paul Bulcke’s early exit. Rising coffee and cocoa costs—amplified by U.S. tariffs of up to 50% on Brazilian goods—also pressure margins, but shares jumped ~8% after the announcement.

• BMO: BMO Financial Group will sell 138 U.S. branches to First-Citizens Bank & Trust Co., covering eight states and parts of Minnesota, Oregon, and Illinois. First Citizens will assume US$5.7 B in deposits and purchase US$1.1 B in loans. BMO will take a C$104 M goodwill charge and a C$117 M tax charge in Q4. The deal, pending regulatory approval, is expected to close mid-2026 as BMO plans to open 150 new branches, focusing on California.

The Forces Pushing Gold To New Highs

The stock market and stuff

• NGEx Minerals To Complete Royalty Spinout On October 23 (theDeepDive)

• Stellantis Shifts Jeep Production from Canada to Illinois, Threatening 3,000 Jobs (theDeepDive)

• Oracle expects cloud infrastructure revenue to be $166 bln in FY30 (Reuters)

• Freeport Abandons Copper Benchmark to Save Smelters (theDeepDive)

In the juniors

• GoGold Resources Reports Fiscal Q4 Production Of 487,876 Silver Equivalent Ounces (theDeepDive)

• Radisson Mining Expands Ongoing Step-Out Drill Program at O'Brien to 140,000 Metres (JMN)

• Endeavour Silver Reports Commercial Production At Terronera (theDeepDive)

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