Cold hard cash

Markets: Canada’s main stock index hit a record high yesterday as continued global uncertainty had investors piling into gold as a safe-haven asset, boosting the mining sector. U.S. markets missed out on the action as they were closed for Martin Luther King Jr. Day. 

With anxiety over Arctic sovereignty at an all-time high, a Canadian startup is pitching itself as Ottawa’s solution.

What happened: Canadian defence-tech startup Dominion Dynamics has raised $21 million in a funding round led by Georgian Partners, Canada’s largest venture capital firm. Founder Eliot Pence (who formerly worked at the U.S. defence company Anduril) told The Peak the capital will go toward its flagship Arctic sensor network, AuraNet, as well as the development of its first autonomous drone, Dominion Scout. 

Catch-up: Dominion’s sensors — which can monitor and detect threats in the Arctic — are already being trialled with the Canadian Armed Forces, but the company is still waiting for the feds to sign on as a paying customer. 

Why it matters: With the Trump administration alleging that Canada’s north is vulnerable to Russia and China, pressure is mounting on Ottawa to prove it can defend the Arctic — without abandoning its commitment to prioritize Canadian companies. 

Zoom out: A recent TD report suggests that Ottawa’s $82 billion defence spending commitment could have a trickle-down effect on secondary industries and lift other parts of the economy, as well.—LA

Ottawa could send troops to Greenland. The feds have reportedly drawn up plans to send a small group of soldiers to Greenland in a display of solidarity with its NATO allies (excluding the U.S.). The move is unlikely to go over well with President Trump, who has threatened to slap a 10% tariff on any allies who oppose his campaign to take control of the island. (Globe and Mail). 

Inflation jumped in December. Canada’s annual inflation rate ticked up to 2.4% last month, though the comparison to last December is a bit jumbled due to the two-month GST tax holiday in late 2024. Still, almost all of the main measures of inflation are within the Bank of Canada’s target range. (CBC News)

OpenAI will roll out its first device this year. The AI startup’s mystery hardware product, pioneered by former Apple design chief Jony Ive, is expected to be released before the end of the year. Details about the device are scant, but some reports suggest it is a screenless wearable. No pressure, Jony, but as the designer of the most popular consumer device of all time, we’re expecting big things. (Axios)

Japan’s prime minister has called a snap election. Voters will head to the polls on February 8, with Prime Minister Sanae Takaichi calling a snap election just three months after taking office. (BBC News)

Canada and Qatar are negotiating a new tax treaty. The treaty will make it easier for Qatar’s US$850 billion sovereign wealth fund to invest in major projects in Canada. (The Logic)—LA

What they’re saying: “[It’s] obvious that the world now places far less trust in us to help shape what comes next,” Larry Fink told Semafor ahead of the first day of the annual World Economic Forum (WEF) meeting in Davos yesterday. The CEO of BlackRock took over as interim co-chair of the WEF after founder Klaus Schwab resigned amid scandal last year. 

Why it matters: Fink wielded his substantial sway to attract a record crowd — and an appearance from Donald Trump — to the Swiss ski town this year, but he’s keenly aware that the meeting has become a lightning rod for criticism. Namely, that it’s an out-of-touch elite echo chamber generating lots of talk but no action. If Fink can’t help change that perception, the WEF’s influence will continue to dip.

Let's clear the air on food inflation.

Grocery retailers operate on razor-thin margins, roughly 4% profit per $100. They don't set commodity prices, control weather patterns, or dictate fuel costs. They pay what the supply chain demands.

What actually drives your bill up:

Understanding the real causes helps you make informed choices.

Get the complete picture here.

Like a student who’s behind on their readings, Health Canada is looking to copy some homework off of friends. 

Driving the news: A new draft ministerial order laid out proposals to quicken drug approvals by relying on work already completed by trusted foreign regulators. These trusted regulators haven’t yet been named, and the changes would apply only to certain drug categories.  

Why it matters: Health Canada’s drug approval process has been dinged for molasses-slow approval times compared to its peers, delaying market access for drugs that are more effective or less expensive. 

Yes, but: Critics are worried this could lead to a drop in Health Canada’s own due diligence. Some health experts also fret the U.S. Food and Drug Administration will be on the list of regulators, as the once-venerable body has been thrown into turmoil under the leadership of RFK Jr. 

Plus: There’s also an argument to be made that the real issue isn’t approvals, but the time it takes for new drugs to receive coverage. On average, it takes a drug two and a half years to get from approval to public reimbursement — the longest wait in the G7.—QH

💰 $550 billion. Wealth held by Canada’s richest 40 people, more than the GDPs of both Finland and Chile. The number of billionaires in Canada hit 89 last year, while globally the number exceeded 3,000 for the first time. The richest 1% of Canadians now hold almost $1.25 trillion in wealth, nearly as much as the bottom 80% combined.

Here is a brand new (we promise) mini-crossword and the daily sudoku. 

And as we continue to iron out the kinks of our new games platform, we’d love it if you played today’s bonus mini, and let us know if you encounter any bugs.