Sponsored by Carlyle Commodities

USA targets Chinese EV supply chains

The Biden administration has introduced new regulations aimed at curbing China’s influence in the country’s electric vehicle supply chain. These rules, unveiled by the US Treasury, have sparked debates over their potential impact on the transition from traditional gasoline-powered vehicles to EVs.

Effective next month, EVs manufactured in the United States that incorporate Chinese-made battery components will no longer qualify for the full subsidies provided under President Joe Biden’s $369 billion landmark climate law.

Additionally, EVs will be ineligible for incentives under the Inflation Reduction Act if they are produced by companies closely affiliated with the Chinese government or through licensing agreements with Beijing-controlled operators.

You can read more on the matter here.

What’s going on?

• Venezuela Votes To Annex Guyana’s Oil-Rich Essequibo Region (theDeepDive)

• Calgary sees another home sales gain in November as prices jump nearly 11% (BNN)

• CBC/Radio-Canada Could Be Laying Off 700 Jobs (theDeepDive)

• COP28: Head of UN talks hits back at climate denial claims (BBC)

• Mastermind Toys Moves To Liquidate 18 Stores Under Creditor Protection, Sell Off Remaining Locations (theDeepDive)

• Seized Phosphoric Acid Cargo Recovered As Phosphate Shortage Looms (theDeepDive)

• Unemployment rate rises to 5.8% in November as job market continues to cave (BNN)

• Argentina Opts Out of BRICS, Signaling Shift In Foreign Policy Under Milei (theDeepDive)

• Ohio Attorney Gets Caught Tossing Poop-Filled Pringles Can From His Car Window (theDeepDive)

• 11 climbers killed, 12 missing following Indonesian volcano eruption (CNN)

• CSIS Report Now Claims Chinese Interference in Both Provincial And Federal Party Elections (theDeepDive)

What’s the latest?

• Mastermind Buyout: Mastermind Toys is set to be acquired by Unity Acquisitions Inc., a company led by renowned Canadian entrepreneur Joe Mimran, along with partners Frank Rocchetti and David Lui. This move comes after Mastermind Toys obtained creditor protection last month. Under the agreement, Unity will purchase most of the chain's 66 stores, ensuring their operation through the holiday season. The majority of Mastermind's employees are expected to retain their jobs.

• Panama Forecasts Smashed: Panama is considering a significant reduction in its economic growth forecast for 2024, potentially dropping from an expected 5% to just 1-2%. This revision comes in the wake of a Supreme Court ruling that deemed the contract with Canadian mining company First Quantum Minerals for the Cobre Panama mine unconstitutional. As the mine contributes about 5% to Panama's GDP, its closure could have a substantial impact on the country's economy.

• Walmart Invests In Canada: Walmart Canada is investing nearly $1 billion in this fiscal year to modernize and improve its stores across the country. This investment includes over $300 million for renovations and remodels of existing stores. Key enhancements will feature expanded produce areas, improved order preparation spaces for employees, and clearer aisle signage.

• Purdue Bankruptcy: The U.S. Supreme Court is reviewing the legality of Purdue Pharma's bankruptcy settlement, which is pivotal to the ongoing opioid crisis litigation. This settlement could grant legal immunity to the Sackler family, owners of Purdue, in exchange for up to $6 billion to settle lawsuits. The Biden administration challenges this aspect of the bankruptcy plan, arguing it could be misused by wealthy individuals to escape liability.

• AirBnB’s Impact: A Desjardins report indicates that the growth of short-term rentals, primarily through platforms like Airbnb and Vrbo, has played a significant role in exacerbating the housing affordability crisis in Canada and globally. With over 235,800 active short-term rental listings in Canada, accounting for about 1.4% of the national housing stock, these rentals are impacting the availability of homes for long-term rental and purchase.

The future of media

The stock market and stuff

• Spotify To Cut 1,500 Jobs Due To Slowing Economic Growth (theDeepDive)

• Alaska Airlines to Acquire Hawaiian Airlines for $1.9 Billion (theDeepDive)

• Walmart Canada investing $1 billion in modernization, 'store of the future' (BNN)

• Gold Hits New High Of $2,146, Bitcoin And Silver Join The Rally (theDeepDive)

• Virgin Galactic shares plunge after Branson rules out further investment (CNBC)

In the juniors

• Heritage Mining Identifies Two Large Nickel-Copper-PGM Targets At Contact Bay (theDeepDive)

• GoldMining Turns Focus To Uranium Asset In Athabasca Basin (theDeepDive)

• Power Nickel Reports Initial Resource Estimate Of 5.4 Million Indicated Tonnes At 1.05% Nickel Equivalent (theDeepDive)

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