The best things in life are free

Good morning. And happy National Root Beer Float Day to all those who observe!  

We don’t know why today of all days is dedicated to root beer floats, but who are we to argue? If you find yourself craving one, A&W — surely our country’s top purveyor of the creamy cola confection — is giving out free floats all day with any $2 purchase. Not bad! 

Today’s reading time is 5½ minutes.

Markets: Canada’s main stock index hit another record high yesterday as Shopify shares rose 16.5% on an earnings beat (more on that below) and the mining sector rose. Elsewhere, SpaceX shares fell 13.6% as investors balked at AI spending unveiled in its first earnings call.

Canada’s biggest tech company seems to be adjusting pretty well to the new era of online shopping. 

What happened: Shopify shares soared as high as 25% yesterday after releasing its earnings from a banner second quarter. The Canadian e-commerce giant saw a 34% year-over-year increase in revenue and a more than 30% jump in merchant transaction volume, driven in part by AI chatbots directing more people to its online stores. 

Why it matters: Chatbots and agents are transforming how we shop online, with AI firms quickly becoming the gatekeepers of which products we’re exposed to (and thus what we buy). A recent National Bank survey found that more than one in three Canadians are using AI to make purchasing decisions. 

Our take: By some estimates, AI agents could account for up to 20% of the entire online shopping market by 2030. Figuring out how to get those agents to organically point to a brand or product is likely the next frontier of the ~US$100 billion SEO industry.—LA

Ottawa and the U.S. are weighing an export quota for steel and aluminum. Canada’s trade negotiators have reportedly discussed implementing a quota system for the metals — which are currently facing a 50% tariff rate — in return for the Trump administration lowering the levy. Under the proposal, a certain amount of Canadian aluminum and steel would be allowed into the U.S., after which point any exports would be hit with a prohibitively high tariff (similar to the system Canada has in place for foreign dairy products). (Globe and Mail)

Google overhauls its AI team. Google DeepMind CEO Demis Hassabis is stepping down, adding to a growing list of high-profile departures from the company’s AI unit. Despite a long history of investing in AI (and billions of people already in its product ecosystem), Google has struggled to compete with the likes of OpenAI and Anthropic and has faced several delays with its newest Gemini model. (Axios) 

Carney commits $2.7 billion to build rental units in Toronto. The PM announced that the feds will build more than 5,600 new rental homes over the next three years, ~1,800 of which will be affordable or rent-controlled units. Of the 18 total projects, half will be developed on city-owned land. The plan is to break ground on 4,500 of those units by the end of the year. (CTV News)

📡 What else is on our radar: 

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If you’re hunched over your laptop reading this, straighten out your spine. A new study from McGill University found that participants playing a risk-taking game took more successful risks and felt higher levels of pride when playing with an upright posture. The results suggest that posture plays a meaningful role in our decision-making and general emotional state.  

Why it matters: Sitting up straight isn’t going to magically transform your life for the better, but this study does contribute to the belief that ergonomics factor into productivity. Generally speaking, it’s just a good idea to keep your posture upright — your neck will thank you for it.

Streamers are pondering if the best things in life really are free (with ads, of course).

What happened: Disney CEO Josh D’Amaro confirmed on the company’s quarterly earnings call that it’s exploring adding a free ad-supported tier to Disney+. The House of Mouse is the latest big name in streaming to consider making a shift to free offerings. 

Why it matters: The streaming revolution challenged the necessity of ad-supported media — it looks like that challenge has failed. Not only do all the big streamers now have paid ad tiers, they’re increasingly losing market share to YouTube and FAST streamers like Tubi. 

Our take: The key to this will be offering enough quality content that people actually engage, without making it so attractive that paid subscribers trade down. Here’s the programming mix we would offer: new-ish movies that underperformed (giving them a second chance at hitting); the first season of hit shows (to get folks hooked); and older movies that used to be on TV all the time but are now locked behind paywalls (think The Fugitive, or Twister).—QH

🇺🇸 US$100 billion. Tariff revenue the Trump administration has refunded after the Supreme Court struck down the legal basis for the so-called “Liberation Day” tariffs and forced the government to repay companies. The refunds have covered 60% of the total revenue collected from the levies.

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Would you look at that? It’s today’s mini-crossword, the daily sudoku, Codebreaker, and Who’s Who!