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Good morning. A new study has found that avant-garde decor isn’t just an acquired taste, it may actually be straining our brains. The researchers discovered that modern visual patterns (like stripes, vibrant colours, and geometric tiles) could be forcing the brain to use more energy compared to natural imagery, causing some people physical discomfort.
Feel free to use this fun fact in any future furniture disagreements. “No, I do like the lime green rug, I’m just worried it will use up too much of my brain power.”
Today’s reading time is 5½ minutes.
MARKETS
| ▲ | TSX |
35,305.31 |
+0.30% |
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| ▲ | S&P 500 |
7,575.39 |
+0.42% |
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| ▲ | DOW JONES |
52,637.01 |
+0.29% |
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| ▲ | NASDAQ |
26,281.61 |
+0.29% |
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| ▼ | GOLD |
4,113.7 |
-0.65% |
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| ▼ | OIL |
71.41 |
-0.93% |
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| ▲ | CAD/USD |
0.7062 |
+0.03% |
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| ▼ | BTC/USD |
64,164.07 |
-0.27% |
Earnings to watch: It’s earnings week for U.S. banks, with JPMorgan Chase, Goldman Sachs, Bank of America, Wells Fargo, and Citigroup all reporting tomorrow, while Morgan Stanley and BlackRock will follow suit on Wednesday. Netflix will close out the week with its results after the bell on Thursday.
WORLD
The Gordie Howe bridge will open after Canada gives concessions
Source: Handout / Gordie Howe International Bridge.
The Gordie Howe International Bridge now has an official opening date of July 27. Of course, there is a catch.
What happened: After fronting the entire $6.4 billion cost of the new link between Windsor and Detroit, Canada has agreed to new, less favourable terms demanded by Washington to get the bridge opened.
Under the new terms, Canada will give up 50% of toll revenue for 15 years, which will now flow into a U.S.-controlled “economic development fund.” Canada was originally entitled to 100% of toll revenue until it had recouped the cost of the bridge, something that was expected to take at least 50 years.
Canada will also have to get permission from the U.S. to raise tolls by more than 10%, or to lower them below levels charged by other local crossings — a clause that will please the owners of the nearby Ambassador Bridge, who also happen to be major Republican donors.
Why it matters: The bridge will be a real boon for commercial traffic and the industries that depend on goods moving smoothly across the border, like the auto sector. It has six lanes versus the Ambassador’s four, more inspection lanes, better tech, and bypasses downtown Windsor. One estimate pegged the time savings for trucks at 850,000 hours per year.
Yes, but: Remember that scene in Star Wars when Lando Calrissian protests that Darth Vader isn’t honouring the terms of their agreement, and Vader informs him: “I am altering the deal. Pray I don’t alter it any further.” Well, that’s sort of what happened here, raising some obvious questions about how much other deals with the U.S. — like, say, a major free trade agreement currently being negotiated — are worth.—TS
BIG PICTURE
Source: Unsplash.
Alberta opens its doors to online gambling. The province will officially open up its online gambling market to private sportsbooks and casinos today, just the second Canadian province to do so. Like in Ontario, the Alberta government will take a 20% cut of the revenue that operators like DraftKings and FanDuel bring in from bettors in the province. Private sportsbooks and casinos are banned in every other province and territory, with online gambling limited to government-run lottery platforms. (The Peak)
Two people were killed in a shooting at a Toronto street festival. Multiple shooters exchanged gunfire while moving through the crowd of ~13,000 people on Saturday night, killing two and hospitalizing four more. No arrests have been made in connection to the shooting so far, and the rest of the Salsa on St. Clair Festival was cancelled. (CBC News)
The Super Bowl champions were just sold for nearly US$10 billion. The estate of Microsoft co-founder Paul Allen sold the Seattle Seahawks to venture capitalist Vinod Khosla for US$9.6 billion, an NFL record and the third-highest sports team valuation ever. Allen bought the team in 1997 for $194 million (not a bad ROI). (Axios)
📡 What else is on our radar:
The U.S. and Iran continued to trade attacks yesterday, as both sides battled to exercise control over the Strait of Hormuz.
Despite a budget of US$250 million, the live-action Moana made just $43 million in its opening weekend.
U.S. Senator Lindsey Graham died at the age of 71.
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LOOKOUT
What’s happening this week
Source: Bank of Canada.
🏦 Bank of Canada interest rate decision. The Bank of Canada is expected to hold rates steady at 2.25% on Wednesday for the sixth consecutive time since its cuts last autumn. Risks that might have pushed the central bank to move off its wait-and-see stance have not yet materialized — there’s so far little sign of broad inflation igniting again, and recent jobs and GDP reports have been more positive.
⚽️ FIFA World Cup finals. The World Cup men’s tournament final is on Sunday. The field is now narrowed to France, Spain, England, and Argentina, with semifinal matches tomorrow and Wednesday deciding who will advance to the championship match. Prediction markets favour France, and so far they have indeed looked unstoppable.
✈️ WestJet strike vote. Voting by WestJet flight attendants on whether to give their union a mandate to strike ends this week. The Canadian Union of Public Employees has asked for authorization, and if they get it, WestJet’s flight attendants could strike as early as August 2nd.
BUSINESS
Canadians are home swapping to save money on travel
Source: Kindred.
More Canadians are looking to live out the plot of The Holiday. No promises on stumbling into a young Jude Law in a turtleneck, but you’ll definitely save some cash.
Driving the news: Home exchange platforms are seeing a surge in popularity, particularly among Canadian travellers, according to new data collected by CBC News.
Popular platforms including People Like Us and HomeExchange (the actual site used in the movie The Holiday) said Canadian membership has jumped 20% and 30%, respectively over the past year.
HomeExchange says there are over 15,000 exchanges planned in Canada this summer. That’s a nearly 30% jump from the same time last year.
Catch-up: Home exchanges offer a lot more flexibility than they used to. Platforms like Kindred use a credit system, allowing members to earn credits when people stay in their space that they can then use to stay in other members’ homes.
That allows users to book places anywhere in the world on their own timeline, rather than being limited to swapping with the traveller staying in their home.
Why it matters: Accommodations make up about a quarter of the cost of an average vacation. Aside from a small membership or cleaning fee, these home exchange platforms are more or less free, offering an affordable way to see the world at a time when travel costs are up across the board.
Meanwhile, short-term stay platforms that used to offer an affordable alternative have become more expensive. Airbnb prices are up around 25% from pre-pandemic levels and can often be more expensive than hotels, depending on the length of stay.
Our take: Modern home swapping apps seem to have a similar value proposition as the early days of platforms like Airbnb and VRBO (affordability, being embedded in a real local’s home, getting personal recommendations from the host). Maybe they can recapture some of that magic.—LA
ONE BIG NUMBER
📉 $100 million. Sale price of former Canadian tech darling TouchBistro, a dramatic fall from its peak valuation of $650 million in 2019. The restaurant software company was backed by some of Canada’s largest investors, including OMERS, which put $140 million into the firm. After the sale, OMERS will recoup just $2 million of its investment.
PEAK PICKS
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The science behind avoiding temptation.
Germany is cracking down on fake sick days.
Why you should stop holding in your sneezes.
How Nova Scotians are tackling tick season with guinea fowls.
Watch: The economics of owning a movie theatre.
Inside the Danish seaside escape known as ‘Cold Hawaii’.
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Start your week on a high note with today’s mini-crossword, the daily sudoku, Codebreaker, and Who’s Who.
