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Good morning. Pandora has opened the world’s largest jewellery factory in Ho Chi Minh City, Vietnam. The Danish charm bracelet giant, which previously made all of its goods in Thailand, is looking to boost its manufacturing capacity by around 50% with this new plant.
Wow, that’s a lot of last-minute Mother’s Day gifts!
Today’s reading time is 5 minutes.
MARKETS
| ▼ | TSX |
35,154.76 |
-0.23% |
|
| ▲ | S&P 500 |
7,666.45 |
+0.20% |
|
| ▲ | DOW JONES |
50,926.56 |
+0.04% |
|
| ▲ | NASDAQ |
26,871.6 |
+0.04% |
|
| ▲ | GOLD |
4,204.7 |
+0.43% |
|
| ▲ | OIL |
92.9 |
+2.74% |
|
| ▲ | CAD/USD |
0.703 |
+0.03% |
|
| ▲ | BTC/USD |
84,624.46 |
+1.20% |
Markets: The global bond sell-off flared up again yesterday, as long-dated U.S. Treasury bonds reached levels unseen since 2002. This turmoil contributed to a fourth-straight day of losses for Canada’s top stock index.
TECH
Canada Could Be Getting Another Prediction Market
Source: Unsplash.
We have a not-so-bold prediction: Canada will soon see more prediction market platforms.
Driving the news: A new prediction market called Verdx is seeking regulatory approval to enter the Canadian market, per the Globe and Mail. Founded by a group of former finance industry execs, the platform would be classified as an investment dealer, targeting both retail and institutional investors.
Unlike the prediction market Wealthsimple launched earlier this year, Verdx will be a standalone product focused on event contracts rather than one offering that’s part of a larger company.
Why it matters: Co-founder Atul Tiwari laid out the case for Canadian prediction market platforms in a Globe op-ed earlier this year, arguing they would provide valuable hedging mechanisms for investors and that regulated options would stifle grey market participation.
Tiwari used Ontario’s iGaming system as a comparison, noting that participation with licensed gambling operators increased from 30% to 84% over three to four years after it launched.
Yes, but: Under Canadian Investment Regulatory Organization rules, prediction market operators can only offer wagers on economic indicators, financial markets, and climate trends. Which is to say, none of the fun stuff like sporting events or political elections.
Our take: The iGaming comparison doesn’t really work as, without these offerings, it will be hard to attract the existing base of Canadian prediction market users, who are already comfortable using VPNs to access platforms like Kalshi. However, attracting institutional investors who need to keep things aboveboard does feel like a real potential market.—QH
BIG PICTURE
Image courtesy of Canada Rocket Company.
Canada Rocket Company is taking off. The rocket startup unveiled its new 50-acre engine testing facility in London, Ontario, yesterday, where it is planning to build a Canadian rival to SpaceX’s reusable Falcon 9 rocket in the next six years. While the ten-month-old company has already raised $22 million, CEO Hugh Kolias told The Peak that it would need ~$1 billion in funding from the government and private investors before a targeted launch date in 2032. (BetaKit)
A Canadian government website was targeted by rogue AI agents. According to research firm Transluce, a group of AI agents launched an unsuccessful cyberattack on Library and Archives Canada this summer. The tactics used in the attack drew parallels to others involving OpenAI agents and, while its involvement hasn’t been confirmed, the company said that it's now investigating the incident. (CBC News)
The Paramount-Warner Bros. merger is really happening. A judge gave the companies the green light to close what will be the richest deal in Hollywood history, approving a settlement between Paramount and 12 U.S. states. Shortly after the ruling, Paramount announced that Ynon Kreiz, who just stepped down as the CEO of Mattel, will run the studio alongside David Ellison. (Associated Press)
📡 What else is on our radar:
Prime Minister Mark Carney has officially designated the proposed West Coast oil pipeline as the first project of national interest.
OpenAI has let go of a group of researchers who allegedly shared confidential company information with a third-party AI safety group.
Chipmaker Broadcom is lending Anthropic up to US$42 billion to lease its AI chips.
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DEAL OF THE WEEK
Source: Freddie.
Dating app Grindr is acquiring Calgary-based telehealth group Freddie for US$250 million. The LGBTQ+-focused dating platform will integrate Freddie’s offerings into its healthcare branch, Woodwork, which it launched last year.
Why it matters: Freddie specializes in HIV testing and medications, and fits into Grindr’s pivot from dating to healthcare. Speaking about the acquisition, Grindr’s CEO said in a press release, “Today, we have the tools to prevent [HIV]. New infections should be close to zero, and that is what we are striving to achieve.”
BUSINESS
McDonald’s Is Getting Personal With Its Pricing
Source: Erik Mclean / Unsplash.
You could be paying more for your midnight McDonald’s order than your friend three blocks down the road.
Driving the news: A Reuters investigation found that McDonald’s has been using an AI algorithm to recommend vastly different prices for the same menu items at different locations in the U.S. and in some global markets.
In one case, a Big Mac at a location in Fresno, California, was priced at US$5.69, while the burger at a location just two miles away was $6.89 — more than 20% more expensive.
How it works: The algorithm is designed to find the “optimal price” for each product based on the customer base of a particular location. In Connecticut (where most residents aren’t particularly concerned about the price of a burger), McDonald’s suggested to one franchisee that they could charge US$18 for a Big Mac meal.
While McDonald’s franchisees can technically set their own prices, several store owners said the company pressures them to adhere to the AI-driven pricing.
Why it matters: This is a lot different from typical dynamic pricing, where high demand drives up costs for everyone. From fast food chains to airlines to grocery delivery services, companies are now calculating to the penny how much they can squeeze from each customer for the exact same product.
Bottom line: As consumer trend analyst Matt Britton told Fortune, “The era of 'fair' pricing is over. The price you see is the price the algorithm thinks you’ll accept.”—LA
DROP THE PIN
🌎 Hint: This sprawling capital sits along one of the world’s longest rivers, just outside the last surviving Wonder of the Ancient World. It’s home to the 1,000-year-old Al-Azhar University, bustling bazaars, and a centuries-old cafe culture.
Think you know where we’ve brought you this week? Lock in your guess here.
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Your landlord isn't supposed to write you a cheque
Most rental developers hand you a gym and a party room. Fitzrovia handed its residents 10 minutes and a shot at $10,000, pitching their businesses to founder and CEO Adrian Rocca.
46 applications, reviewed by Rocca
Six finalists, judged alongside The PUR Company and Anson Funds
$5,000 for second place, $1,000 for each remaining finalist
Carbon Nutrition won, and is using the cash to close an inventory gap
ONE BIG NUMBER
🚅 $113 billion. How much the Alto high-speed rail line between Toronto and Quebec City could end up costing, according to the Parliamentary Budget Officer, significantly more than the original estimate of $60 billion to $90 billion. The biggest potential cost driver of the project is a 15-kilometre tunnel running through Montreal.
PEAK PICKS
Canadian astronaut Joshua Kutryk is heading on a months-long trip to the International Space Station.
How to avoid your luggage getting lost, according to a baggage handler.
Audible’s new feature lets you talk to AI versions of the characters in your book.
These five provinces are getting minimum wage hikes.
A Game of Thrones movie is officially in the works.
Listen: A deep dive into Kevin O’Leary’s data centre battle with Utah residents.
FRIDAY CARTOON
Artwork by Hailey Ferguson.
Congratulations to the winners of last week's cartoon caption contest and thanks to everyone who submitted!
Want to see this week's cartoon and try your hand at another caption? Click here and give us your best witticism.
Were you paying attention this week? Prove it by playing The Peak’s Weekly News Quiz.
Then, keep things going with today’s mini-crossword, the daily sudoku, Codebreaker, and Who’s Who.
