Stocks are pointing to a lower open this morning as a global bond rout sends yields higher, potentially ending the week, and the unofficial start to summer, on a dour note. Mixed messaging out of the Trump-Xi Jinping summit did little to help sentiment. Oil prices are moving higher again, with Brent crude futures back above $107 per barrel while Treasury yields are pushing higher. Overseas, European equities are also under pressure, and in Asia, KOSPI reversed, falling more than -6% after its recent surge. While both Trump and Xi spoke positively about the visit, with China referring to a vision of “strategic stability” and Trump describing the relationship as “very strong,” no formal joint agreement came out of the summit. On Iran, Trump stated the two countries agreed the conflict should end and the Strait should reopen, though China did not reference the war in its official readouts. However, on the summit’s second day, China’s foreign minister said that the war should not have been started in the first place, showing some divergent messaging between the two sides.
Who will win the race? The next major phase of AI competition may be determined by which countries can most effectively industrialize physical AI through robotics deployment, manufacturing scale, and supply-chain dominance. Experts argue that the long-term winners in robotics may not be defined by who builds the smartest robots first, but by who can mass-produce and deploy them fastest at industrial scale. This is something where China currently has an advantage. While the U.S. leads in software and intelligence, China is better positioned to dominate other areas which will use AI like manufacturing. China also has an edge due to lower production costs and state-backed support.
Powering up. Mark Carney unveiled a strategy to double Canada’s electricity generation by 2050, a plan expected to cost over $1 trillion and require coordination across federal and provincial governments, as well as private capital. No small feat. The proposal includes loosening clean electricity rules to allow greater use of natural gas, and incentives for home retrofits and a transition toward electric power. It also calls for expanding transmission infrastructure to improve east-west grid connectivity and support a more integrated system. While the plan sets an ambitious target, it remains light on execution details, with consultations to follow across provinces and industry. Achieving the balance between affordability, reliability, and emissions reduction will require significant coordination, policy clarity, and alignment across jurisdictions.
It was a week full of disappointing (but predictable) inflation prints out of the U.S., with April’s inflation data suggesting the U.S. may not be confronting isolated price shocks. Both the CPI and PPI data pointed to the growing effects of repeated fiscal, geopolitical, and policy disruptions that risk reshaping longer-term inflation psychology. While current pressures remain heavily energy-driven, the broader concern is that consecutive shocks from tariffs, war, and fiscal responses, could eventually unanchor inflation expectations if policymakers fail to restore credibility and stability. For new Fed Chair Kevin Warsh, the core challenge is less about reacting to one inflation print and more about preserving institutional confidence that the Fed remains committed to price stability despite political pressure.
Canada’s housing market appears to be stabilizing, although we have yet to see a meaningful rebound. Recent data points to demand modestly improving, although elevated listings continue to restrain broader price appreciation. The data suggests buyers are cautiously re-engaging, particularly as affordability improves relative to recent peaks, but persistent macro headwinds, including trade uncertainty, elevated energy costs, and weaker labour conditions, are still limiting momentum. It’s also worth noting that this stabilization is occurring unevenly across segments, with more vulnerable markets such as condos likely remaining under greater pressure than detached housing. So while Canada’s housing sector is showing early signs of bottoming, sustained recovery will likely depend on broader economic confidence.
Add this to the list of questionable decisions made after a few drinks. A man reportedly changed the password to his Bitcoin wallet while under the influence, only to lock himself out of his account for over 11 years. In hindsight, the mistake was a profitable one as the value of the five Bitcoin be bought in college ballooned to nearly $400,000. After years of trying to get in, the man eventually turned to AI. Using Claude, the software acted as a digital forensic assistant by analyzing old computer files, uncovering an overlooked backup file, and identifying a technical bug in existing recovery software that had previously prevented success. Beyond an expensive password lesson, the case highlights AI’s growing potential as a powerful tool for crypto recovery through data analysis and troubleshooting. For now, the simple takeaway is don’t change your passwords after a few cocktails.
Diversion: Out cooled
