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Senate: Musk Dodging $2B in Liabilities

A new report from the Senate Permanent Subcommittee on Investigations reveals that Elon Musk and his companies could potentially avoid more than $2.37 billion in liabilities through his position leading the Department of Government Efficiency.

The Democratic committee staff report, released Monday, details how Musk’s role in the Trump administration creates significant conflicts of interest, as he oversees federal agencies that have active investigations into his businesses. At the time of Trump’s inauguration in January, Musk’s companies faced at least 65 “actual or potential” actions from 11 different federal agencies.

You can read more on the matter here.

What’s going on?

• UPS to Cut 20,000 Jobs Amid Amazon Business Reduction (theDeepDive)

• 68,000 job losses possible in Ontario this year due to U.S. trade war: report (CBC)

• Danielle Smith Moves Closer To Referendum On Alberta Secession (theDeepDive)

• Ukraine ready to sign minerals deal with U.S. as soon as Wednesday (Globe)

• Liberal Victory Triggers Fiscal Warning from Fitch, Canada’s AAA Rating at Risk (theDeepDive)

• US Consumer Spending Jumps While Key Inflation Gauge Slows Down (Bloomberg)

• Pakistan Claims India Planning ‘Military Action’ Within 36 Hours (theDeepDive)

• Supreme Court Weighs Whether States Must Fund Religious Charter Schools (WSJ)

• Is McKinsey Replacing Employees with AI? (theDeepDive)

• Trump blames Biden after GDP shrinks in first quarter, says growth will ‘take a while’ (CNBC)

• China Targets Korean Firms in Rare Earth Export Clampdown (theDeepDive)

What’s the latest?

• Canadian Economy: Canada’s GDP fell 0.2% in February, following a 0.4% gain in January, with the decline led by a 2.5% drop in mining, quarrying, and oil and gas and a 0.5% fall in construction. Services edged down 0.1%, while manufacturing rose 0.6%, driven by a 5.9% surge in machinery manufacturing, potentially due to pre-tariff U.S. demand. StatCan’s early estimate shows 0.1% growth in March, putting Q1 annualized GDP growth at 1.5%. Economists expect Q2 contraction amid escalating trade war impacts and delays in fiscal stimulus rollout.

• American Economy: U.S. GDP contracted 0.3% in Q1 2025, marking the first economic decline in three years, largely due to a 41% surge in imports, which shaved 5 percentage points off growth. Consumer spending slowed to 1.8%, and federal spending plunged 5.1%, while inflation rose, with the PCE index hitting 3.6%. Financial markets reacted sharply: Dow fell 400 points, S&P 500 dropped 1.5%, and Nasdaq slid 2%. Economists warn that Trump's tariffs, ongoing uncertainty, and rising inflation could deepen the downturn and push the U.S. into a recession by year-end.

• Wallstreet: U.S. stocks fell Wednesday after data showed the economy shrank 0.3% in Q1, with the S&P 500 down 1.5%, Dow down 479 points, and Nasdaq down 2%, as fears of stagflation increased. The contraction was driven by a 41% surge in imports ahead of Trump’s tariffs, which shaved 5 points off GDP, while consumer spending slowed and inflation hit 2.3% in March. AI stocks led the drop, with Super Micro Computer plunging 17.7% and Nvidia down 3%, while Starbucks fell 6.9% after missing earnings expectations. Treasury yields also eased, with the 10-year yield at 4.17%.

• Stellantis:  Stellantis NV reported a 14% drop in Q1 revenue to €35.8 billion (US$40.7B) and suspended its full-year guidance due to uncertainty around U.S. auto tariffs. North American shipments fell about 20%, and Maserati sales plunged 50% as the automaker cut prices to manage inventory. The company also temporarily halted production in Canada and Mexico and is still seeking a new CEO by end of June. Stellantis shares are down about 33% year-to-date, reflecting trade tensions and weak performance in both the U.S. and Europe.

• McEwen Copper: McEwen Copper Inc. is planning an IPO in New York or Toronto, with a possible Buenos Aires listing, to fund its Los Azules copper project in Argentina. The mine, projected to begin production by the end of the decade, could gain US$900 million in value from Argentina’s RIGI incentive program, though approval delays may push the IPO past the initial mid-2025 target. The company aims to raise $25 million for feasibility studies and over $100 million for engineering work. Argentina’s investor climate has improved under President Milei, attracting interest from BHP and Glencore.

Canadian Election Shocker

The stock market and stuff

• Loblaw Sees Q1 2025 EPS Rise Despite Core Retail Slowdown (theDeepDive)

• Microsoft vows to protect European operations from Donald Trump (FT)

• Nvidia CEO Jensen Huang warns China is ‘not behind’ in AI (CNBC)

• Wall Street Banks Offload Last Of $13B Twitter Debt (theDeepDive)

In the juniors

• Emerita Resources Increases Indicated Resources By 35%, Inferred Resources By 44% In Latest Estimate (theDeepDive)

• Magna Mining Intersects 24.0% Cu, 1.2% Ni & 6.7 g/t Pt + Pd + Au over 2.0 Metres at Levack Mine (JMN)

• Verses Hits Commercialization Stage With Genius AI Platform (theDeepDive)

FULL DISCLOSURE: Silver47 Exploration is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is long the equity of Silver47 Exploration. The author has been compensated to cover Silver47 Exploration 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.