Sponsored by Lithium Chile

Trudeau says the quiet part out loud

Prime Minister Justin Trudeau recently admitted that his government’s approach to housing aims to benefit existing homeowners, predominantly baby boomers, at the expense of younger Canadians. In an interview on The Globe and Mail’s City Space podcast, Trudeau emphasized the importance of maintaining high property values, stating, “Housing needs to retain its value. It’s a huge part of people’s potential for retirement and future nest egg.”

This comment has sparked significant controversy, particularly among younger voters who feel increasingly marginalized in the housing market. With the average home price in Canada exceeding $735,000 and topping $1 million in cities like Toronto, many younger Canadians are priced out of the market. Rental costs have also surged, exacerbating frustration.

You can read more on the matter here.

What’s going on?

• Temporary Pier in Gaza Damaged, Suspending US Aid Deliveries (theDeepDive)

• BHP’s £39bn pursuit of Anglo American on brink of collapse (FT)

• Jared Birchall: The Man Behind Elon Musk’s Many, Many Ventures (And Potential Conflicts Of Interests) (theDeepDive)

• Nearly half of Canadians think Trudeau is staying on for selfish reasons: poll (NP)

• Rising Inventory Puts GTA Buyers in Driver’s Seat, Contrasting National Trends (theDeepDive)

• Five more Canadian school boards sue social media giants, alleging harm to students’ mental health (Globe)

• Orange juice crisis prompts search for alternative fruits (FT)

• Peru’s Q1 2024 GDP Rises 1.4% on Strong Public Investment (theDeepDive)

• Rare spat shows China, North Korea still at odds on nuclear weapons (Reuters)

• France To Send Military Instructors to Ukraine (theDeepDive)

What’s the latest?

• Glencore Coal: Glencore Plc plans to consult shareholders on the future of its coal business following the expected closure of its acquisition of Teck Resources Ltd.’s coal mines later this year. If a majority of shareholders support retaining the coal mines, the company will forgo a vote. This decision marks a significant strategic consideration for Glencore, as its coal business has been highly profitable.

• Taseko Strike: Unifor Local 3018, representing 550 workers at Taseko's Gibraltar Mine in British Columbia, has announced that workers are prepared to strike if a new contract is not reached by the end of Friday. The union demands fair wages, strong safety protocols, and equitable treatment. Despite several weeks of negotiations, meaningful proposals have not been made by the company, according to the union.

• Gildan Battle: The protracted leadership battle at Gildan Activewear Inc. cost the company at least US$65 million, newly reinstated CEO Glenn Chamandy disclosed, highlighting severance packages, legal expenses, and other related costs. Shareholders overwhelmingly voted to reinstate Chamandy and elect a new slate of directors proposed by activist investor Browning West LP.

• Indigo Go Private: Indigo Books & Music Inc. shareholders have approved a deal for the company to go private, with 95.09% of votes in favor and 83% from independent shareholders. The $2.50 per share offer from Trilogy Retail Holdings Inc. and Trilogy Investments L.P., owned by Gerald Schwartz, was accepted after raising the initial bid from $2.25.

• TD Downgraded: Fitch Ratings Inc. has downgraded its outlook on TD Bank Group to negative from stable, citing uncertainties related to the bank's anti-money laundering deficiencies in the U.S. Despite affirming TD's long-term credit rating of AA-, Fitch warns that potential penalties and barriers to U.S. acquisitions could impact the bank's focus on operations. This comes after TD reported a 22% drop in profits due to a $615 million charge linked to one of the investigations.

Is lithium bouncing back?

The stock market and stuff

• BMO, National Bank, TD and Scotiabank: A breakdown of the big banks’ second-quarter earnings (Globe)

• US Stock Market Goes Back to T+1 System, Braces for Transition (theDeepDive)

• ConocoPhillips to acquire Marathon Oil in US$17 billion deal (BNN)

• BMO Misses Estimates on Higher-Than-Expected Provisions (Bloomberg)

In the juniors

• UGe International To Go Private At 270% Premium, Netting Shareholders $2.00 Per Share In Cash (theDeepDive)

• CanAlaska Hits 7.4% U3O8 Over 19.5 Metres At West McArthur (theDeepDive)

• NexGen Reports 10.0% U3O8 Over 0.5 Metres At New Discovery (theDeepDive)

FULL DISCLOSURE: Lithium Chile is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Lithium Chile. The author has been compensated to cover Lithium Chile on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.