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Swiss Gold Refiners Struggle With Demand

Swiss gold refiners are taking unusual steps to manage supply constraints, with Metalor Technologies implementing surcharges and Argor-Heraeus halting some orders, signaling broader pressure in global precious metals markets.

Metalor has introduced a per-ounce surcharge on all its gold products due to shortages, while Argor-Heraeus has suspended production of certain minted gold bars, according to Singapore-based dealer BullionStar.

You can read more on the matter here.

What’s going on?

• South Korea Suspends Chinese AI App DeepSeek Over Data Privacy Concerns (theDeepDive)

• Canada reports outbreak of H5N5 bird flu on backyard farm in Newfoundland and Labrador (Globe)

• Inflation rose to 1.9% in January, with low prices on GST-free goods offsetting high energy costs (CBC)

• BREAKING: Delta Airlines Plane Crashes At Pearson Airport, Pictured On Roof (theDeepDive)

• US and Russia agree to ‘lay the groundwork’ for ending Ukraine war (FT)

• Joly says she rebuked U.S. senators who joked about Canada becoming the 51st state (Globe)

• Texas Senate Votes 30-0 for Property Tax Exemption Boost (theDeepDive)

• Honduras to continue extradition treaty with US (Reuters)

• Food prices in Canada down first time in 8 years: StatCan (Global)

• US-Belarus Thaw Could Ease Sanctions for Prisoner Release (theDeepDive)

What’s the latest?

• Peace Talks: European leaders held an emergency summit in Paris after being excluded from U.S.-led Russia-Ukraine peace talks set for this week. The Stoxx Europe Aerospace & Defense index hit a record high as defense stocks surged following EU approval for increased military spending. The Reserve Bank of Australia cut its benchmark interest rate by 25 basis points to 4.1%, marking its first rate cut in over four years. In Germany, onshore wind permits surged in 2024, but upcoming elections could impact the sector’s future.

• Inflation: Canada’s annual inflation rate rose to 1.9% in January, with gas prices increasing 8.6% year-over-year, partly due to Manitoba’s 25.9% spike from a reinstated gas tax. Natural gas prices also rose 4.8%, while restaurant food and alcohol prices fell 5.1% and 3.6%, respectively, due to a temporary tax break. Without the tax break, inflation would have reached 2.7%, as mortgage interest costs continued rising at 10.2%. Analysts predict the Bank of Canada may hold rates steady in March, depending on tariff developments and further data.

• Cargojet: Cargojet Inc. reported record full-year revenues exceeding $1 billion, a 14% increase from 2023. Fourth-quarter revenues surged 32% to $293.2 million, while net income reached $71.2 million, reversing a $34.9 million loss from the prior year. Adjusted earnings per share rose over 400% to $1.71, beating analysts' forecasts of $1.62. The company also increased flight hours by 16% despite challenging weather during the holiday season.

• Google: Google denies the Competition Bureau’s claims that it holds a dominant market position in online advertising in Canada. The Bureau alleges Google has unlawfully tied its ad tech tools to stifle competition and seeks the divestiture of DoubleClick for Publishers and AdX. Google argues that the Bureau's market definition is too narrow and that the proposed financial penalty—up to three times Google's benefit or 3% of global revenue—is unconstitutional. The case is being handled by the Competition Tribunal, with Google insisting that competition in ad tech remains strong against rivals like Microsoft, Meta, and Amazon.

• Treasury Yields: U.S. Treasury yields rose Tuesday, with the 10-year yield up 3.7 basis points to 4.515% and the 2-year yield rising over 2 basis points to 4.282%. The increase followed a European bond sell-off driven by expectations of higher defense spending. Investors await Wednesday’s Federal Reserve meeting minutes for insights into interest rate policy, with markets pricing in a 98% chance of no rate cuts in March. Wall Street’s major indexes gained last week, partly due to Trump’s reciprocal tariff proposal and inflation reports delaying rate-cut expectations.

Brazil's Potash Power Play

The stock market and stuff

• Argentinian President Could Face Impeachment Thanks To A Memecoin (theDeepDive)

• Musk’s xAI releases artificial intelligence model Grok 3, claims better performance than rivals in early testing (CNBC)

• Southwest Airlines to Cut 1,750 Corporate Jobs in First Mass Layoff (theDeepDive)

In the juniors

• Goliath Hits Two New Stacked Gold Veins At Surebet Discovery (theDeepDive)

• Defense Metals Outlines $992 Million After Tax NPV For Wicheeda Rare Earth Project (theDeepDive)

• The Bull Case For The Interpretation Of Canadian Copper’s Metallurgical Testwork (theDeepDive)

• GoviEx Uranium Enters LOI For Strategic Roadmap On Madaouela Project Dispute (theDeepDive)

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