Sell sell sell

Good morning. The Winter Olympics, which kicked off yesterday, could look a little different in the future. The International Olympic Committee is considering adding a sprinkling of summer sports to the mix — potentially running and cycling events — to increase interest. Additionally, the games could be moved to January to benefit from colder, snowier weather. 

If it means the addition of some cool new events, like cyclocross in the snow, then we’re here for it.

P.S. If you haven’t already, complete our survey about how you’re using AI before we report back the most interesting insights next week. You’ll be entered to win a book pack from the good folks at Penguin Canada.

Today’s reading time is 5½ minutes.

Markets: Chipmaker AMD had its worst day since 2017 after posting a middling outlook for 2026, with shares falling 17%. Meanwhile, Alphabet shares dropped in after-hours trading after predicting that its capital expenditures for 2026 would be nearly double 2025 levels.

In yesterday’s letter we said that Eliot Grondin is one of Canada’s Olympic flagbearers. That is not true — Mikaël Kingsbury and Marielle Thompson were chosen as flagbearers. We sincerely apologize for the goof up.

AI agents are making it a hard time to be a software provider. 

Driving the news: A widespread sell-off of software stocks entered its second day yesterday, with panic spreading from North American and European markets to Asia-Pacific as investors sought to dump any and all companies they felt were exposed to AI risks. 

Why it’s happening: Investors are worried that increasingly capable AI agents could decimate the business models of software providers by offering a one-stop shop for automating a variety of tasks that previously required multiple services.  This recent sell-off was sparked by the launch of new plugins for Anthropic’s Claude Cowork AI agent, in particular, a tool automating legal tasks. 

Why it matters: This is the latest example of how AI has eaten the stock market alive, and specifically, how new product releases can cause sudden unpredictable swings. As companies like Anthropic and ChatGPT keep trying to find ways to justify gargantuan investments, expect new developments to trigger more seismic market shifts.—QH

Ottawa is expected to axe the EV mandate today. The feds will reportedly scrap the EV mandate, replacing it with a system that will reward automakers for building electric models. The EV mandate required 60% of all new vehicles to be electric by 2030, a target that was criticized by automakers in the face of weak EV demand and U.S. tariffs. (CBC News)

Canada and France open up Greenland consulates. With the Arctic island under increased pressure from the U.S., Governor General Mary Simon will be in the capital city of Nuuk tomorrow to open a new Canadian consulate. (Globe and Mail)

Toys ‘R’ Us Canada goes belly up. The toy chain has filed for bankruptcy protection with a reported $120 million owed to vendors and an unknown “substantial” amount owed to its landlords. Unless you're Lego, it’s a pretty tough time to be in the toy business. (CBC News)

Washington pulls 700 ICE agents from Minnesota. The withdrawal follows mass protests over the killing of two civilians in Minneapolis, though ~2,000 ICE agents will remain in place. (BBC News)

The Washington Post is cutting a third of its workforce. The legacy media outlet laid off its entire sports section and many of its foreign bureaus. In what sounds like a twisted game of corporate Russian roulette, staff were reportedly sent emails yesterday with one of two subject lines, either telling them their role was or was not being eliminated. (Associated Press)—LA

A team at Shanghai Jiao Tong University in China has purportedly made a breakthrough in lithium-free batteries. In a new paper, the researchers detail how they were able to develop a sodium-sulfur battery that is less flammable than other batteries of its kind and can hold a charge at room temperature (typically these batteries need high heat to keep a charge). 

Why it matters: Sodium-sulfur batteries are a potentially cheaper alternative to lithium-ion batteries, swapping out a critical mineral with a fraught supply chain for two abundant and inexpensive raw materials. However, concerns about safety and efficiency have always been a serious drawback. If this new battery proves scalable, it could usher in wider adoption.

Catch up on yesterday:

What’s happening today: 

The White House is suddenly preaching peachy collaboration with its allies. 

What happened: Foreign Affairs Minister Anita Anand was in Washington yesterday, meeting with Vice-President JD Vance and foreign ministers from around the world to discuss a potential preferential trade zone for critical minerals. 

Why it’s happening: China controls the refining for ~70% of the world’s critical minerals, including lithium, cobalt, and graphite — all materials needed to make everything from smartphones to EV batteries. 

Why it matters: The U.S.’s eagerness to build up a mineral supply chain that doesn’t involve China represents a major opportunity for Canada, particularly at the trade negotiating table. Former industry minister James Moore says Canada’s abundance of critical minerals is Ottawa’s strongest leverage in the upcoming CUSMA review.

Yes, but: Prime Minister Carney said back in December that the country’s critical minerals are first and foremost an opportunity for Canada, and that American access to them is not guaranteed.—LA

📉 US$84 billion. Withdrawals made from ESG funds last year, the first time on record that the so-called ethical investing vehicles have seen a net outflow of cash. The anti-ESG movement, championed in the Trump administration, has sparked an exodus of support for climate-related financial efforts.

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Get your puzzle cap on, we’ve got today’s mini-crossword and the daily sudoku ready to go. 

Don’t stop there, there’s a new Codebreakers with your name on it.