Let’s get physical

Good morning. McDonald’s is facing a class-action lawsuit in Illinois from disgruntled diners alleging the fast food giant misled them about the content of its McRib sandwich, which they claim contains no actual pork rib meat. McDonald’s said the suit makes inaccurate claims.

Between this and the Whopper lawsuit against Burger King, it feels like fast food law is a burgeoning legal practice.

Today’s reading time is 6½ minutes.

Markets: Canada’s main stock index notched another record closing yesterday, with rising gold prices continuing to lift the materials sector. South of the border, the Dow Jones also reached a new high, powered by AI chip stocks.

The CEO of the world’s most valuable company said that "the ChatGPT moment for physical AI is almost here.” Translation: get ready for a deluge of AI-powered doohickeys. 

What happened: At the Consumer Electronics Showcase, Nvidia CEO Jensen Huang unveiled Alpamayo, the company’s first platform for autonomous vehicles. Huang claimed it will bring human “reasoning” to self-driving cars (maybe not the best thing based on some of the driving we see around town). 

Zoom out: While Alpamayo stole the show, Huang also unveiled a whole whack of new models and tools meant to power working robots. As TechCrunch’s Rebecca Bellan put it, this is all part of Nvidia’s master plan to “become the default platform for generalist robotics.”

Why it matters: Nvidia’s pivot to physical AI is a sign of the times for the industry. Firms need to prove they can actually make money to justify lofty valuations, which requires moving away from infinitely scaling up costly language models to shipping out profitable products. 

Our take: Broadly speaking, AI firms need to get more practical this year, because no one really cares about chatbots setting new benchmarks. Certainly, one way to do this is making self-driving cars that don’t freak out or robots that can be used in industrial settings. Functional wearables also look promising. Take Meta, which had to delay global expansion of its Ray-Ban smart glasses due to high demand.—QH

Canada and other allies are doubling down on Ukraine’s defence. Alongside 30 other countries, Prime Minister Mark Carney signed a joint commitment to defend Ukraine from any future Russian invasions once a peace deal is reached. The U.S. says it will run a ceasefire monitoring program using drones to enforce the terms of a peace agreement, while both France and the U.K. have committed to sending troops and weaponry into Ukraine. (CTV News)

Nobel Prize winner Maria Corina Machado wants an election in Venezuela. The opposition leader, who was banned from running in the country’s last election in 2024, says she will return to the country soon to run in a free election. While Machado has praised the U.S.’ toppling of Nicolás Maduro, Trump said she lacks public support and has not endorsed her to lead the country. The Washington Post reported that Trump’s decision not to back Machado stemmed from her acceptance of the Nobel Peace Prize, an award he not-so-subtly campaigned for. (Reuters) 

Unionized workers in Canada saw their best year of wage gains in nearly a decade. Canadian unionized workers negotiated the highest average wage bumps since at least 2016. Around 30% of the Canadian labour force are unionized workers, with public servants making up the highest proportion. (Globe and Mail) 

Vancouver home sales are at the lowest point in over two decades. Home sales in the Greater Vancouver region fell to just 23,800 last year, nearly 25% below the 10-year average. (CBC)

Chrystia Freeland will officially resign her seat to become an economic advisor to Ukraine, ending her 12-year run as a member of Parliament. (CTV News)—LA

🤝 Meet Linda Dang. She’s the founder and CEO of Sukoshi, a Toronto-based beauty retailer focused on products from South Korea and other Asian countries that’s rapidly growing its footprint. We sat down with Linda to talk about why K-beauty is dominating store shelves and the challenges of expanding in the U.S. amid trade turmoil.

What are the store’s origins?

Sukoshi started eight years ago from a simple gap I experienced as a consumer. There was no place in Canada where you could properly discover Asian beauty in person, ask questions, and feel confident in what you were buying. What began as a small retail concept grew organically through community, word of mouth, and trust. As demand grew, so did our responsibility to build something thoughtful, scalable, and culturally respectful.

Why do you think K-beauty has taken off the way it has in recent years? What distinguishes these products from North American products?

K-beauty prioritizes skin health, prevention, and long-term results. The innovation cycle is faster, formulations are more ingredient-driven, and brands are willing to challenge traditional beauty norms. Instead of selling a miracle product, the focus is on routines, layering, and education. That approach resonates with consumers who are more informed and skeptical than ever.

South Korea's population isn't much bigger than Canada's, yet it has outsized cultural influence. Why do you think that is?

South Korea has been incredibly intentional about exporting culture. Music, film, fashion, and beauty are treated as soft power and economic drivers. There is also a deep respect for craft and constant improvement. Trends don’t stagnate. They evolve quickly, which keeps global audiences engaged and curious.

You’re prioritizing U.S. expansion. How do you manage that while Canada is in the middle of a trade war with the U.S.?

We stay focused on fundamentals. Strong unit economics, diversified supply chains, and localized teams on the ground matter more than headlines. Our expansion is intentional, not rushed. We invest heavily in compliance, logistics, and partnerships so that geopolitical noise does not derail long-term strategy.

This excerpt has been lightly edited for length and clarity. Read the full interview on our website.

Welcome to 2026, where you can buy illegal drugs from the same platform that brings you sports highlights, recipe videos, and pictures of your friends’ babies. 

Driving the news: A CBC News investigation uncovered a network of websites selling illegal drugs, including cocaine, heroin, and ecstasy, by advertising them prominently to Canadians on Instagram and Facebook. One customer who bought cocaine from an Instagram ad compared his experience to shopping on Amazon.

Catch-up: Social workers, law enforcement and companies tapped to flag these bad actors say the advertising and selling of illicit products online has grown rapidly in recent years. 

Why it matters: New websites selling illegal items are popping up faster than they can be taken down. The head of LegitScript, a company that specializes in flagging these types of ads, compared it to playing a game of whack-a-mole that can never fully be won.—LA

🎤 $282 million. Economic boost that Toronto received from Taylor Swift’s six show stop in the city. A report found that Toronto saw a 45% increase in week-over-week spending in its downtown core during Swift’s concerts, which brought 240,000 people to the Rogers Centre over six nights.

We’re going to be giving you a double dose of mini-crosswords as we roll out our new games platforms. We’re still ironing out all the wrinkles, so please write to us to let us know if you’re having any problems. 

Without further ado, here’s your regular mini-crossword, a bonus mini-crossword we need testers to try, and of course, today’s sudoku.