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Tax changes without parliamentary approval?

The Liberal government has announced its intention to introduce legislation to implement the proposed changes to the capital gains tax before the House adjourns for the summer break. 

Deputy Prime Minister and Finance Minister Chrystia Freeland said that the legislative process will commence in the coming weeks to increase the “inclusion rate” from one-half to two-thirds on capital gains above $250,000 for individuals.

You can read more on the matter here.

What’s going on?

• DOJ Poised to Break Up Live Nation and Ticketmaster (theDeepDive)

• World Court orders Israel to halt military operation in Rafah; Israel is unlikely to comply (Globe)

• Canada Poised to Implement Capital Gains Tax Hike Without Parliamentary Approval (theDeepDive)

• Exclusive: Putin wants Ukraine ceasefire on current frontlines (Reuters)

• Harvard Corporation Rejects Faculty Attempt to Allow Sanctioned Student Protesters to Graduate (theDeepDive)

• Google criticized as AI Overview makes obvious errors, saying President Obama is Muslim (CNBC)

• Citi, HSBC, Barclays Ramp Up Demands for Five Days in Office (Bloomberg)

• DOJ Poised to Break Up Live Nation and Ticketmaster (theDeepDive)

• Woman jailed for laundering bitcoin in UK from $6.4 billion China fraud (Reuters)

• Randall Denley: Ontario is paying dearly for falling for Trudeau's 'free' child-care money (NP)

• Panasonic Warns of Weakness in Auto Battery Business Amid EV Slowdown (theDeepDive)

• Hungary seeks to ‘redefine’ its Nato membership over Ukraine (FT)

• Former Fauci Adviser Apologizes After Memo Reveals Allegations of Illegal Activity: “I Was Making A Joke” (theDeepDive)

What’s the latest?

• Retail Sales: Canadian retail sales rebounded sharply in April, rising 0.7%, the fastest pace since September, according to preliminary data from Statistics Canada. This followed a 0.2% drop in March, which was below expectations. Despite the April increase, first-quarter retail sales were down 0.2% overall and remain below December levels.

• China Struggles: Foreign investment into China fell for the fourth consecutive month in April, highlighting Beijing's challenges in attracting overseas funds to bolster its slowing economic growth. New foreign investment amounted to 58.5 billion yuan (US$8.1 billion) in April, down 36% year-over-year, marking the second-lowest monthly figure since late 2019.

• Gildan Implodes: Gildan Activewear Inc.’s board of directors and CEO Vince Tyra resigned on Thursday, ending a five-month battle with activist shareholder Browning West LP, which owns about 5% of Gildan’s shares. Browning West will take control of the board, appoint Michael Kneeland as chair, and reinstate former CEO Glenn Chamandy.

• Grocer Probe: The Canadian Competition Bureau has initiated investigations into the parent companies of grocery chains Loblaws and Sobeys for alleged anticompetitive conduct related to property controls that restrict competition in the retail grocery market. The Bureau claims that these controls, embedded in lease agreements, limit potential tenants and hamper competition.

• Debt Costs Balloon: Canada's government will spend $1.9 billion more on public debt charges in the 2024-25 fiscal year than initially planned, raising total debt payments to $56 billion—a 3.5% increase from previous forecasts. This rise is attributed to higher projected interest rates and increased borrowing requirements.

Nickel boom: Industry shifts ahead

The stock market and stuff

• Crypto Adoption Among US Adults Drops to 7%, Fed Survey Shows (theDeepDive)

• Eli Lilly to invest extra $5.3bn in manufacturing site for weight loss drugs (FT)

• PayPal Turns On Money Tap For Venmo With Fee Increase (theDeepDive)

• Nvidia CEO Jensen Huang’s net worth swells from $3 billion to $90 billion in five years (CNBC)

• Carry Trade Is All the Rage Across Global Bond and FX Markets (Bloomberg)

In the juniors

• Hertz Energy Acquires Final Claim In Nunavut To Complete Cominco Uranium Project (theDeepDive)

• Canadian Government Blocks Mining Investment… But It’s In Ecuador (theDeepDive)

• Defiance ETFs Launches New 2x Leveraged Uranium ETF (theDeepDive)

• Money Again Flows In Mining Sector As Multiple Producers Close On Financings (theDeepDive)

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