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Speed Over Logic? The Alto Route Debate

Since Prime Minister Justin Trudeau announced his ambitious high-speed rail proposal, recently rebranded as Alto, there’s been a growing voice of criticism regarding the true benefit of the project. Billed as Canada’s “largest-ever infrastructure project,” the rail network aims to link Toronto and Quebec City with 300 km/h trains.

The route adds stops in Peterborough, Ottawa, Montreal, Laval, and Trois-Rivières. But for economist Dr. Mike P. Moffatt, “the route that the federal government has chosen for the new high-speed train makes zero sense.”

He acknowledges the strategic importance of connecting Toronto, Ottawa, and Montreal—home to some of Canada’s largest metro populations—but sees little rationale for extending to lower-growth areas instead of thriving hubs such as Hamilton, Kitchener-Waterloo, London, and Windsor.

You can read more on the matter here.

What’s going on?

• Musk Urges ISS Shutdown After Clash With Former Commander (theDeepDive)

• Ottawa to remove majority of federal exceptions from Canada Free Trade Agreement, source says (Globe)

• Liberal Party Withholds $21,000 in Donations to Leadership Candidate (theDeepDive)

• Apple withdraws cloud encryption service from UK after government order (FT)

• US Defense Budget Faces 8% Annual Cuts Under New Directive (theDeepDive)

• US Existing-Home Sales Drop Back Again With Mortgage Rates at 7%

  (Bloomberg)

• US Orders Diplomats to Cancel News Subscriptions Worldwide (theDeepDive)

• Coinbase Says SEC Intends to Drop Lawsuit Against Crypto Exchange (WSJ)

• Canadian Trucker TFI Plans To Leave Canada For The US (theDeepDive)

• Japan to court Tesla on Nissan investment (FT)

• Delta Offers $30,000 to Each Passenger on Toronto Crash Flight (theDeepDive)

What’s the latest?

• Onex: Onex Corp. reported a Q4 net loss of US$2 million (US$0.02 per share), down from a US$373 million profit (US$4.81 per share) a year earlier. Total segment net earnings dropped to US$47 million from US$372 million. However, distributable earnings rose to US$231 million from US$139 million. The firm manages US$51.1 billion in assets, including US$8.3 billion of its own capital.

• Amazon: A Quebec labour group, CSN, has filed a complaint to overturn Amazon’s decision to close its warehouses in the province, affecting nearly 2,000 workers. The union alleges Amazon is restructuring to evade employer obligations and is demanding over a year’s salary in compensation per worker, along with damages. Amazon denies union-busting claims, stating the closures were for operational efficiency.

• Poll: A Leger poll found that 70% of Canadians support dollar-for-dollar retaliatory tariffs against the U.S., with 45% strongly in favor. The poll, conducted online with 1,500 respondents, also found that 81% worry about U.S. economic pressure on Canada, including tariffs and trade sanctions. In response to U.S. policies, 63% are buying fewer American products, 52% are reducing Amazon purchases, and 30% have canceled U.S. travel plans, while 68% are increasing purchases of Canadian goods.

• Retail Sales: Statistics Canada reported a 2.5% increase in retail sales to $69.6 billion in December, with food and beverage retailers (+3.5%) and motor vehicle and parts dealers (+1.9%) leading the gains. Supermarkets and grocery retailers saw a 3.9% rise, while beer, wine, and liquor sales also grew by 3.9%. However, a preliminary estimate suggests retail sales declined by 0.4% in January 2025.

• Stellantis: Stellantis is pausing work on the next-generation Jeep Compass and halting activities at its Brampton, Ontario plant, which employs about 3,000 workers. The plant was undergoing retooling for EV and gas-powered Jeep production, with future operations now uncertain. Unifor and the Canadian government expressed concerns, as delays could impact suppliers and jobs. The move comes amid U.S. tariff threats, which could disrupt the North American auto supply chain.

Osisko Q4 Earnings

The stock market and stuff

• Lundin Gold 2024 Results: 137% Net Income Jump, Hits 500K-Ounce Production Mark (theDeepDive)

• Newmont Rakes In $3.4B In 2024 Net Income Following Divesting Assets (theDeepDive)

• UnitedHealth tumbles 9% on WSJ report the DOJ is investigating Medicare billing practices (CNBC)

• First Majestic Posts Record Free Cash Flow Of $68.4 Million In Fourth Quarter (theDeepDive)

• IAMGOLD Posts Seven-Fold Increase In Earnings In 2024, Thanks To Westwood And Gold Prices (theDeepDive)

In the juniors

• Leocor Mining Updates Current Drill Program at the Copper-Gold Baie Verte Project in Newfoundland (JMN)

• i-80 Gold Outlines $2.1 Billion NPV At Spot Prices For Mineral Point Project (theDeepDive)

• VR Resources Completes Drilling at Silverback Copper-Gold Project in Northwest Ontario (JMN)

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.