Peak Food

Markets: Gold topped US$5,000 an ounce for the first time yesterday as investors kept up an insatiable appetite for safe-haven assets. Not to be outdone, silver continued its own record-setting run, building on the momentum of surpassing $100 an ounce for the first time last Friday.

About 12 million Canadians will be getting a little more breathing room on their grocery bills.   

What happened: Prime Minister Mark Carney unveiled a suite of new measures aimed at tackling food affordability, including increases to the GST tax credit that will amount to around an extra $800 for eligible Canadians this year.

Why it matters: Since 2021, the cost of groceries and housing has grown 50% faster than Canadians’ average hourly pay, and over a quarter of Canadians are now experiencing some level of food insecurity, according to a recent report.

Yes, but: Kaylie Tiessen, chief economist at The Canadian SHIELD Institute, told The Peak that the move won’t address the root of the food affordability problem. “This is the third temporary measure implemented in as many years to deal with grocery prices, and the problem clearly isn't going away,” she said. 

Zoom in: Overshadowed by the headline GST credit, the feds also announced new unit price labelling measures aimed at tackling shrinkflation in grocery aisles.—LA

Y Combinator will no longer invest in Canadian startups. The Silicon Valley incubator, widely regarded as the most successful startup accelerator in the world, will no longer invest in Canadian companies unless they relocate their headquarters to either the U.S., Singapore, or the Cayman Islands. (The Logic) 

Chinese miner Zijin is buying Canada’s Allied Gold for ~$5.5 billion. Zijin, which has previously had its investments in Canadian miners blocked by Ottawa, is indirectly owned by the Chinese government. The blockbuster deal will test whether the federal government will continue its crackdown on Chinese investment in the mining sector, given its goal of growing trade ties with Beijing. (The Canadian Press)  

Ottawa is subsidizing a Canadian tech firm providing ICE with wiretapping tools. According to The Logic, Ottawa-based JSI currently has a contract with the U.S. Immigration and Customs Enforcement (ICE) agency worth over US$23 million. Last month, the federal government announced it was providing JSI with $1 million to help commercialize its AI technology, which includes wiretapping equipment. (The Logic)

Cineplex is looking to challenge its drip pricing ruling in the Supreme Court. The movie theatre chain is asking Canada’s top court to hear its appeal of a previous ruling that found Cineplex engaged in drip pricing and deceptive marketing. (Mobile Syrup)

Social media platforms are on trial this week. A landmark case alleging that Meta, TikTok, and YouTube directly cause youth mental health disorders kicked off yesterday. If the companies lose, legal experts say they could be forced to redesign their platforms and algorithms to be less addictive. (Reuters)

Toronto says its troubled Eglinton LRT will open on February 8. We’ll see! (Global News) —LA

What they’re saying: “Enough of Washington’s orders to Venezuelan politicians, let Venezuelan politics resolve our differences and conflicts. Enough of foreign powers,” Venezuela’s acting president Delcy Rodríguez proclaimed in an address to state oil workers.

Why it matters: Following the removal of Nicolás Maduro, Rodríguez has walked a fine line between appeasing the U.S. and the Maduro loyalists of her party. While Rodríguez has met many U.S. demands so far — from pushing oil law reforms to releasing prisoners — her change of tone could spur the always-erratic White House to shift its favourable view of her.

New public sector cuts could mess with your stomach.

Driving the news: Agriculture and Agri-Food Canada (AAFC) is closing seven of its federal research sites as Ottawa continues to zap the public sector with a shrink ray. One prominent facility in Guelph, Ontario, is focused on research and development in food safety. 

Why it matters: The closure comes at a time of heightened safety concerns in Canada’s food supply chain. The U.S., our largest supplier of foreign food, has made its own disease surveillance and research cuts, raising the risk of cross-border food-borne illnesses. 

Yes, but: Others in the industry don’t share this pessimism and think this could be a good thing. The managing director of the Canadian Agri-Food Policy Institute told the Western Producer cuts are a result of poor investing and AAFC now has an opportunity to boost efficiency.

Our take: The idea of draining a bloated public sector sounds good, but when the rubber meets the road, the consequences may be less appealing. Canada has to be prepared for ripple effects and, as the barrage of recent job cut notices has made clear, the inevitable human toll.—QH

⛷️ ​​41%. Decline in Canadian visits to U.S. ski resorts this winter. Ski destinations across the States are offering steep discounts — with some even offering to take Canadian dollars on par with the U.S. — to try and win back visitors. The ski town of Burlington, Vermont, even rebranded one of its main roads “Canada Street” as a gesture of goodwill.

Banish those Tuesday blues with the mini-crossword and the daily sudoku!

And, if you’re feeling adventurous, play our new game Codebreaker! We have added a tutorial that hopefully makes it more clear how to play.