Back down to Earth

Good morning. U.K. company Deep is unveiling its first-ever underwater house off the coast of Florida, with the first tenants set to move in soon. The home, which features living chambers, research labs, and private bedrooms, lets people live underwater for weeks at a time without resurfacing. 

It’s a great place to live as long as you’re cool with watching your neighbours settle their disputes by eating each other. 

Today’s reading time is 5 minutes.

Earnings to watch: Rogers, Tesla, and Alphabet will all report their results on Wednesday, Intel and Teck Resources will follow on Thursday with their earnings, and CN Railway will close out the week with its earnings call on Friday.

“Houston, we have a problem” — an iconic phrase that (conveniently for newsletter writers) now aptly describes SpaceX’s brief life as a publicly traded company.

What happened: After pulling off the biggest IPO in history and reaching a market cap larger than Amazon’s, SpaceX shares are now trading below their initial listing price of $135 for the first time. 

Why it’s happening: Last week’s failed Starship launch didn’t help matters, but SpaceX’s doldrums may be more about market-wide questions about whether AI companies will ever be able to turn a profit — something SpaceX will have to nail for its valuation to make sense in the long term.

Why it matters: Steep losses for early buyers of SpaceX shares could cast a pall over the next two big public offerings on the calendar: Anthropic and OpenAI.—TS

Three U.S. service members were killed in fighting with Iran. The Pentagon has so far reported the deaths of three American service members in fighting with Iran over the weekend, bringing the total American military death toll in the conflict to 17. Fighting between the two sides has intensified after the ceasefire broke down earlier this month. The U.S. military said it was launching a fresh wave of attacks on Iranian targets last night. (BBC News)

The Crown is narrowing its case against corrupt Toronto police officers. Prosecutors have reportedly dropped several charges against the main defendants in the police corruption case known as Project South, honing in on the most serious allegations ahead of the trial. Experts say that narrowing the charges will help complete the trial within the Jordan Rule’s mandatory 30-month window. Thousands of criminal cases have been tossed out over the past decade because they weren’t wrapped up in that timeframe. (Toronto Star)

Ford workers ratified a new collective agreement. Hourly workers at the automakers Canadian plants will receive a 9% wage increase over three years along with a one-time ratification bonus. Along with the deal, Ford also announced it would invest an additional $700 million in its Essex Engine Plant. (The Canadian Press)

📡 What else is on our radar: 

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🔥 Wildfires expected to continue. The smoke blanketing cities on the East Coast has eased, but nearly 1,000 wildfires are still active in the country. In Ontario, the number of active fires has grown to nearly 200. In B.C., a series of lightning strikes on Friday sparked the majority of the 115 wildfires currently burning in the province. (Associated Press)

📊 Refreshed inflation data. The Consumer Price Index for June arrives today, with analysts expecting a mild easing of inflation from the previous month. As far as inflation prints go, this one isn’t enormously important, as there will be more to come before the Bank of Canada’s next interest rate decision in September.

🇬🇧 Britain gets a new Prime Minister. Newly crowned Labour leader Andy Burnham will officially take the reins as the newest Prime Minister of the U.K. today. Burnham announced over the weekend that one of his first moves would be to scrap a controversial national digital ID program. Premium subscribers can read our explainer on why Britain can’t stop sacking its prime ministers.

An abnormally warm stretch of the Pacific Ocean could translate into higher prices at the grocery store.

Driving the news: Scientists are warning that this year’s El Niño — the periodic warming of the Pacific Ocean that disrupts global weather patterns — could be the most powerful on record. The so-called super El Niño threatens to spark more floods, wildfires, and food inflation.

Why it matters: Global food supply chains are already in turmoil from the war in Iran, which has led to energy and fertilizer shortages. Analysts say even a modest crop disruption — like one a record-setting El Niño will likely cause — could cause a run-up in food prices that lasts through 2028, according to Goldman Sachs economists.

In Canada: Milder temperatures and drier winter conditions caused by a super El Niño will also likely increase wildfire risks — not something anyone wants to contemplate right now.—LA

📦 15 million. Counterfeit products that Amazon’s Counterfeit Crimes Unit seized last year, more than twice as many as it caught in 2023. With 60% of its products now coming from third-party sellers, Amazon has seen a surge in vendors selling fake products, particularly from China.

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