Sponsored by Golden Cariboo Resources

Privatized gains, socialized losses.

New data reveals significant financial distress in the Greater Toronto Area condo market as Canada grapples with an escalating real estate crisis. Recent reports from Urbanation, Teranet, and CIBC paint a grim picture of the current state of the market, highlighting the potential for widespread economic repercussions if corrective measures are not taken swiftly.

One of the most alarming findings is that 30% of newly completed GTA condos in 2023 and the first half of 2024 are cash flow negative by over $1,000. This significant financial strain on property owners is depicted in a recent chart showing the distribution of GTA condos by cash flow position. The majority of these units are deeply in the red, indicating that many investors and homeowners are unable to cover their expenses through rental income.

You can read more on the matter here.

What’s going on?

• Maduro’s ‘Win’ Questioned: Venezuelans Cry Foul Over Election (theDeepDive)

• CRA notifies Jewish National Fund it will revoke Canadian charitable status (NP)

• US, Canada Among The Slowest In Mine Development Timelines, New Report Shows (theDeepDive)

• Biden proposes Supreme Court term limits, binding code of conduct (Reuters)

• US Claims China Already Censoring TikTok Content Globally (theDeepDive)

• Former BBC Presenter Huw Edwards Charged With Making Indecent Images of Children (Bloomberg)

• Nations Royalty: A First Mover In The Indigenous Royalty Space (theDeepDive)

• Fox News Less Trusted Than Satire in Canada, Survey Finds (theDeepDive)

• Canadian Western Bank debated Laurentian Bank’s woes and a juicy acquisition premium before accepting $5-billion takeover (Globe)

• 81% of Ghana’s Major Cocoa Region Infected with Swollen Shoot Disease (theDeepDive)

• Mitsubishi Motors' shares up on reports it will join Honda-Nissan partnership (Reuters)

• Trump Agrees to Be Interviewed by FBI in Shooter Investigation (Bloomberg)

• EU Explores Controversial Asset Tracking System to Enhance Sanctions Enforcement (theDeepDive)

What’s the latest?

• Bitcoin Bump: Bitcoin touched its highest level since mid-June, reaching US$69,462, driven by Donald Trump’s pro-crypto stance and expectations of U.S. Federal Reserve interest-rate cuts. Trump pledged to make the U.S. the “crypto capital of the planet” and to establish a strategic Bitcoin stockpile if elected. This speech, along with anticipation of a potential rate-cutting cycle by the Fed, has bolstered investor sentiment, pushing Bitcoin and other cryptocurrencies higher.

• McD Earnings: McDonald’s Corp. experienced a decline in sales for the first time since 2020 in the second quarter, falling short of analyst expectations. Sales growth has slowed as diners worldwide cut back on spending due to price increases and tighter household budgets. Earnings for the quarter were $2.97 per share, missing analyst estimates.

• BC Short Term: Nearly half of the 22,405 short-term rental listings reviewed by the B.C. Ministry of Housing were found to be operating illegally, according to preliminary data from rental platforms like Airbnb, VRBO, and Booking.com. The data, which reveals the locations of units and identities of hosts, will bolster enforcement of regulations banning most short-term rentals not in the owner's principal residence. Housing Minister Ravi Kahlon said about 1,000 illegal listings have already been taken down.

• Cocoa Tumble: Cocoa futures have dropped to their lowest level in over four months, with the most-active contract falling 4.4% to $6,650 a ton in New York. This decline is attributed to expectations of improved supply in the next season, countering the prospects of weaker demand. Chocolate companies, such as Nestle and Lindt & Spruengli, have indicated potential margin pressures and a challenging consumer environment, as customers opt for cheaper products.

• Gold-Backed Currency: The use of Zimbabwe's bullion-backed currency, ZiG, has doubled since its launch in early April, now accounting for 30% of all transactions compared to 15% initially, according to central bank Governor John Mushayavanhu. This increase contrasts with a shift in product pricing ratio rather than a rise in foreign currency demand. The ZiG replaced the Zimbabwean dollar, backed by foreign reserves and precious metals, as the nation's 6th local currency attempt in 15 years.

Gold rush: From Eritrea to Saudi Arabia

The stock market and stuff

• EU Explores Controversial Asset Tracking System to Enhance Sanctions Enforcement (theDeepDive)

• Discount window reform bill introduced as Fed works on its own overhaul (Reuters)

• New Study Challenges Assumptions About Bitcoin Ownership in the US (theDeepDive)

• Traders Fret as 32-Hour Central Bank Spree Hangs Over Market (Bloomberg)

• McDonald's sales fall globally for first time in more than three years (Reuters)

• New Study Challenges Assumptions About Bitcoin Ownership in the US (theDeepDive)

In the juniors

• Power Nickel Appoints Mining Expert Dr Steve Beresford To Board Of Directors (theDeepDive)

• Integra Resources To Acquire Florida Canyon Gold For $95 Million (theDeepDive)

• Canada Nickel Metallurgical Testwork Improves Recoveries By 10% (theDeepDive)

• Happy Belly To Acquire 50% Stake In Salus Fresh Foods For $300,000 (theDeepDive)

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