Trading Day for Monday, Jan. 26, 2026

Key Concepts

• Canada Groceries and Essentials Benefit: A new federal program providing increased GST credit payments to eligible households to address affordability concerns.
• Allied Gold Acquisition: Zijing Gold’s $5.5 billion acquisition of Allied Gold, a significant event in the Canadian mining sector.
• NVIDIA & Core Expansion: NVIDIA’s $2 billion investment in Core to expand AI computing capacity.
• TSX & Gold Rally: The Toronto Stock Exchange (TSX) reaching record highs driven by a surge in gold prices.
• Telesat Canada Legal Issues: Creditors suing Telesat Canada alleging asset transfers to hinder their claims.
• Team Canada 2035: A new plan to attract $500 million in private investment to boost Canadian sports and Olympic performance.
• Food Security & Innovation: Discussions around strengthening Canada’s food supply chain and leveraging technology for increased resilience.

Main Topics and Key Points

1. Government Support for Affordability (Canada Groceries and Essentials Benefit)

• Prime Minister Carney announced the “Canada Groceries and Essentials Benefit,” increasing GST credit payments by 25% over five years.
• A one-time special payment equivalent to 50% of the credit will be issued in June.
• The initiative aims to mitigate the impact of higher food prices since the pandemic.
• The Prime Minister emphasized improving supply chain resilience as a long-term solution to rising grocery costs.

2. Mining Sector – Allied Gold Acquisition

• Zijing Gold, a Chinese mining company, is acquiring Allied Gold for $5.5 billion, including three African assets and development projects.
• The deal represents a 27% premium over Allied Gold’s 30-day average share price, at $44 per share in cash.
• Allied Gold CEO Peter Moroney stated the deal provides shareholders with a “fair deal” and mitigates risk related to fluctuating gold prices.
• Moroney highlighted the strategic value of creating options and the certainty of a cash offer, regardless of future gold price movements.
• Analysts suggest the deal is beneficial for Allied Gold’s management team, potentially allowing them to pursue future ventures.
• Regulatory approval from both Canadian and Chinese governments is required for the deal to finalize.

3. Technology & AI – NVIDIA & Core Investment

• NVIDIA is investing an additional $2 billion US in Core, a data center provider, to expand AI computing capacity by over 5,000,000,005GW by the end of the decade.
• Core will be among the first to deploy new NVIDIA products, including storage systems and a new central processing unit (CPU).
• This investment is contributing to the broader rally in technology stocks and the TSX.

4. Market Performance – TSX & Gold

• The TSX reached record highs, fueled by the rally in gold stocks.
• Gold prices hit a new record high, exceeding $2,100 US an ounce.
• McEwen Mining (MCEW) saw a 6% stock increase, benefiting from both gold and copper interests.
• Apple (AAPL) received a buy rating from JP Morgan with a raised price target of $315, citing an attractive entry point after recent underperformance.

5. Corporate Challenges – Telesat Canada

• Telesat Canada is facing legal action from creditors alleging the transfer of a key asset (62% stake in Lightspeed, a low earth orbit satellite business) beyond their reach.
• Creditors claim the asset transfer was intended to shield it from their claims.
• Telesat Canada is poised to become a defense contractor for the Canadian government.

6. Retail Sector – TJX Companies

• TJX Companies (TJX) experienced a slight decline (3%) despite no apparent negative news, potentially due to profit-taking after a recent stock run-up.
• Morningstar analysts maintain a positive outlook on TJX, citing its “off-price dominance” and ability to acquire inventory from struggling retailers.

7. Investment Strategy & Gold Outlook (Uma Moriarty Interview)

• Uma Moriarty, Senior Investment Strategist at CenterSquare Investment Management, discussed the factors driving the recent surge in gold prices.
• Key drivers include geopolitical uncertainty, inflation hedging, and central bank accumulation of gold reserves.
• Moriarty noted a trend of de-dollarization, with central banks reducing holdings of US Treasuries and increasing transactions in other currencies.
• She recommends focusing on real estate, particularly Global REITs, as a hedge against inflation, citing discounted valuations.
• Moriarty highlighted the potential of senior housing REITs due to demographic trends and limited supply.
• She believes the market is broadening beyond tech stocks, creating opportunities in other sectors.
• Moriarty doesn’t foresee the Federal Reserve cutting interest rates in the near future, citing stable economic data and inflation levels.

8. Canadian Sports Funding & Olympic Goals (Jacqueline Ryan Interview)

• Team Canada launched the “Team Canada 2035” plan, aiming to attract $500 million in private investment to boost Canadian sports.
• The plan aims to make Canada a top-five country by medal count at the Olympics and get 1 million more young people involved in organized sports.
• The Canadian Olympic Committee is primarily funded by private investment (marketing partners and donors).
• The plan focuses on three pillars: Podium (high performance), Play (youth participation), and Planet (sustainability).
• There’s a need for increased funding for National Sport Organizations, which haven’t seen a funding increase in 20 years.

9. Food Security & Innovation (Catherine Riga Interview)

• Catherine Riga, founder of Edie Farming, discussed the importance of strengthening Canada’s food supply chain.
• She highlighted the potential of urban greenhouses powered by waste heat from data centers.
• Riga emphasized the need for innovation in Canadian agriculture to compete with countries like Mexico.
• She noted the importance of government support for ventures focused on food security and scaling up Canadian food production.

Step-by-Step Processes/Methodologies

• Allied Gold Acquisition Process: The process involves shareholder votes, regulatory approvals from both Canadian and Chinese governments, and a cash payment of $44 per share upon completion.
• Team Canada 2035 Plan: The plan involves attracting $500 million in private investment, focusing on three pillars (Podium, Play, Planet), and collaborating with National Sport Organizations.

Key Arguments/Perspectives

• Gold as a Safe Haven: The surge in gold prices is driven by geopolitical uncertainty, inflation concerns, and central bank de-dollarization.
• Importance of Food Security: Strengthening Canada’s food supply chain is crucial for national defense and resilience in the face of climate change and geopolitical instability.
• Value in Real Estate: Real estate, particularly Global REITs and senior housing, offers a compelling investment opportunity as a hedge against inflation.

Notable Quotes

• Peter Moroney (Allied Gold CEO): “I think the shareholders should be comforted that they're getting a very fair deal.”
• Peter Moroney (Allied Gold CEO): “We’re in a business of creating options and optionality…If it goes lower [gold price], shareholders have the certainty that they’ve got an underpinning in our share price.”
• Uma Moriarty (CenterSquare Investment Management): “Gold is being used as a hedge against inflation…a hedge against a lot of this potential uncertainty associated with AI.”

Technical Terms

• GST (Goods and Services Tax): A value-added tax levied on most goods and services in Canada.
• REIT (Real Estate Investment Trust): A company that owns, operates, or finances income-producing real estate.
• AI (Artificial Intelligence): The simulation of human intelligence processes by computer systems.
• TSX (Toronto Stock Exchange): The largest stock exchange in Canada.
• Microchimerism: The presence of cells from another individual within the body.
• De-dollarization: The reduction of the US dollar's dominance in international trade and finance.

Logical Connections

The broadcast connects various economic and market events, demonstrating the interplay between government policy, corporate activity, and investment trends. The discussion flows from macroeconomic factors (inflation, geopolitical uncertainty) to specific company deals (Allied Gold, NVIDIA/Core) and investment strategies (real estate, gold). The segments on food security and sports funding highlight broader societal concerns and the role of investment in addressing them.

Data/Research Findings/Statistics

• Allied Gold Acquisition Price: $5.5 billion.
• Allied Gold Production: 370,000 oz of gold in the last year.
• NVIDIA Investment in Core: $2 billion US.
• Core AI Capacity Expansion: Over 5,000,000,005GW.
• TSX Gold Price: Exceeded $2,100 US an ounce.
• Apple Price Target (JP Morgan): Raised to $315 from $305.
• Team Canada 2035 Investment Goal: $500 million.
• GST Credit Increase: 25% over five years.

Synthesis/Conclusion

The broadcast provides a snapshot of the Canadian economic landscape, highlighting both opportunities and challenges. The government’s affordability measures, while potentially helpful, are unlikely to have an immediate impact on grocery prices. The surge in gold prices and the TSX rally reflect broader global trends and investor sentiment. Innovation in sectors like AI and food technology is crucial for Canada’s long-term competitiveness and resilience. The emphasis on food security and sports funding underscores the importance of strategic investment in key areas for national prosperity and well-being. The overall message is one of cautious optimism, with a focus on adapting to a changing global environment and leveraging Canadian strengths to build a more secure and sustainable future.