Good morning. A new pair of Chanel sandals is causing controversy in the fashion world for their minimal design — and we mean minimal. The “cap-heel” sandal is essentially a heel piece with laces attached to it, leaving most of the foot exposed and forgoing a sole entirely.
Who are we to question one of the great French fashion houses, but can you really call it a shoe if it doesn’t have a sole? We’ll stick with our Adidas Slides, or maybe our Crocs.
Today’s reading time is 5½ minutes.
MARKETS
| ▼ | TSX |
33,318.39 |
-0.79% |
|
| ▼ | S&P 500 |
7,135.95 |
-0.04% |
|
| ▼ | DOW JONES |
48,861.81 |
-0.57% |
|
| ▲ | NASDAQ |
24,673.24 |
+0.04% |
|
| ▼ | GOLD |
4,557.3 |
-1.11% |
|
| ▲ | OIL |
108.49 |
+8.57% |
|
| ▼ | CAD/USD |
0.73 |
-0.04% |
|
| ▼ | BTC/USD |
75,771.06 |
-0.76% |
Markets: Canada’s main stock index fell for a fifth straight session yesterday. Oil surged on reports that Donald Trump told staff to expect an extended blockade of Iran. On the earnings front, Starbucks shares surged 8.5% after it reported a sales rebound, Meta and Amazon saw their share prices fall in after-hours trading after projecting more spending on data centres and AI, while Google parent company Alphabet reported a 22% surge in revenue, lifting its stock.
BUSINESS
Canada’s elevator industry is broken
Source: Bagzhan Sadvakassov / Unsplash.
A historic deal in the elevator industry is going down. Cue the muzak.
What happened: Finnish elevator maker Kone has agreed to take over German rival TK Elevator (TKE) in a deal valued at $34.4 billion. The lift link-up would create the world’s biggest elevator company, surpassing the current top dog Otis, the U.S. elevator originator.
Why it matters: The elevator industry is already an oligopoly, with four manufacturers (the three above plus Switzerland’s Schindler) dominating the game. Consolidation could exacerbate the issues over-concentration in the sector has already caused — especially in the U.S. and Canada.
Wait, why here? Canada is godawful at elevators. We have the second-fewest per capita in the developed world (behind the U.S.) due to norms about how many a building needs per unit and high prices — a new lift costs up to four times as much here as it does in Europe.
This cost is a product of the byzantine set of regulations for new elevators, which are different from everywhere else except the U.S. And because of the extra costs of building elevators for one specific market, only the biggest companies bother.
That’s how we get the current oligopoly where the big four (three if the deal goes through) elevator makers control some 70% of the North American market — and as high as 90% in places like Ontario — with a vice grip on maintenance, too.
Our take: Elevators are more than just a way to skip the stairs, they’re a crucial form of urban transport, particularly for people with accessibility needs. Adding more elevators and keeping them up and running is vital as more of Canada’s population lives in cities and apartment buildings. The further consolidation of an already concentrated industry will only make things worse.—QH
BIG PICTURE
Source: Bank of Canada / Flickr.
The Bank of Canada and the Fed hold interest rates. As expected, Canada’s central bank kept its key interest rate at 2.25%, with Governor Tiff Macklem saying there was “little evidence” oil spikes are affecting prices more broadly — though he admitted that could change. The U.S. Federal Reserve also kept rates steady as Chair Jerome Powell prepares to step aside for his successor. (CTV News)
Families of Tumbler Ridge victims sue OpenAI. In seven overlapping lawsuits, a group of plaintiffs — including a 12-year-old who survived and is still in hospital — allege that OpenAI and its CEO Sam Altman were negligent in failing to alert authorities about the shooter Jesse Van Rootselaar’s ChatGPT activity. A lawyer for some of the plaintiffs told CTV News he expects the families will seek more than US$1 billion. (Bloomberg News)
Uber wants to be the everything app for travel. The ride-hailing app touted new travel features at its annual Go-Get event, including a hotel booking feature through an Expedia integration, an AI tool that lets you book rides via voice command, and a room service feature that can deliver commonly forgotten travel essentials to your hotel door. (CNBC)
📡 What else is on our radar:
General Motors said it will invest $691 million in its St. Catharines, Ont., plant to equip the facility for production of its latest V-8 engines.
The federal government has earmarked up to $145 million for FIFA World Cup security, with $45 million set aside for Toronto and $100 million for Vancouver.
OxyContin maker Purdue Pharma will pay more than US$8 billion to states, cities, health insurers, and victims to resolve a long-running criminal case.
SPONSORED BY THE PUBLIC SERVICE ALLIANCE OF CANADA
Protect Canada's Public Services
Every day, people count on public services to access benefits, keep food safe, protect communities, and respond when disaster strikes.
But Prime Minister Carney’s government is cutting those services, leaving workers and their families who are already stretched thin, without support. The consequences are real: longer waits, growing backlogs, and greater uncertainty when support is needed most.
Great nations aren’t built through austerity – they’re built by investing in the public services people rely on and the workers who deliver them.
If this government is serious about a strong Canada, it should invest in strong, reliable public services.
IN THE LAB
A Canadian man may have been cured of HIV
Source: National Institute of Allergy and Infectious Diseases / Unsplash.
In a Canadian first, clinicians and researchers at University Health Network, Unity Health Toronto, and the University of Toronto reported a man who was living with HIV for 27 years had gone into remission, the result of a bone marrow transplant using stem cells with a rare HIV-resistant genetic mutation. As of right now, HIV remains undetected in his body.
Why it matters: If the patient is still HIV-negative after another 20 months, he will be considered cured, making him one of just 10 other people worldwide with that designation. While the risky and expensive treatment isn’t feasible for most of the world’s ~41 million HIV patients, it’s still a remarkable achievement in Canadian medicine and will generate insights for potential future cures.
DEFENCE
Canada’s defence push is picking up steam
Source: @MarkJCarney / X.
Canada will soon be home to the West’s piggy bank for all things military.
What happened: Canada has been chosen as the host nation of a new global defence bank that will provide cheap, long-term funding for defence projects, per The Globe and Mail. The Defence, Security and Resilience Bank (DSRB) will include up to 40 countries, including NATO members and their allies.
The DSRB, which will be funded by public contributions from its member countries, will provide loans to military equipment suppliers (including startups in need of cash) as well as governments looking to buy new gear.
Why it matters: The feds have committed to giving 70% of all defence contracts to Canadian companies by the end of the decade. To meet the sudden surge in demand for homegrown defence equipment, experts say Canadian firms will need a lot more cash to ramp up production.
Zoom out: Few countries are more reliant on American defence contractors than Canada, but after spending $63 billion on defence this year, Ottawa’s domestic defence push is gaining traction.
NATO has reportedly selected the GlobalEye aircraft, built by Canada’s Bombardier and Sweden’s Saab, to replace its fleet of Boeing surveillance planes. The deal, which is likely worth north of €5 billion, is expected to lead to more plane production in Canada.
Meanwhile, South Korea’s Hanwha — one of the finalists for a contract to build Canada’s next submarine fleet — promised to build its armoured vehicles in Canada with local auto parts and workers as a sweetener for its submarine bid.
What’s next: We’ll find out soon which city will serve as the home base for the new defence bank (Toronto, Montreal and Vancouver have all lobbied to host). The Ontario government said hosting the DRSB would create 3,500 new jobs in Toronto.—LA
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ONE BIG NUMBER
💰 16. New billionaires that Canada is expected to add by 2031, according to a new report, a 33% increase from this year. Canada is currently home to 49 billionaires, while the number of ultra-high-net-worth individuals has grown by over 21% between 2021 and 2026. Who knows, maybe you’ll be one of them!
PEAK PICKS
Drink up: The best bars in Canada for 2026.
Meet the vigilante on a mission to fix Montreal’s potholes.
Halifax chef Mathew Kelly shares his lobster salad recipe.
Google Translate will now let you practise your pronunciation.
17 essential exercises for beginners and gym rats, according to personal trainers.
Watch: Why is Times Square legally required to have billboards?
Think you got game? Play today’s mini-crossword, the daily sudoku, Codebreaker, and Who’s Who!
