HEADLINES
Producer Prices Continued to Rise, Climbing 1.2% in May
Producer price in Canada continued to rise last month as Iran war and disruption to shipping through the Strait of Hormuz buoyed crude oil costs and hit supply chains.
Statistics Canada's industrial product price index increased for a fifth straight month, climbing 1.2% in May from the month before. Compared with the same month last year, the producer-price index jumped 13.6%, a 20th consecutive year-over-year increase and the steepest since mid-2022.
Stripping out energy and petroleum products, the index was up a slightly softer 0.9% for the month, lifting the annual rate to 9.3%, hinting at possible pressures on core consumer inflation that so far has shown little sign of broadening widely.
Government Has No In-House Analysis on Potential Fallout From U.S. Trade Talks
Canadian officials have not produced analyses outlining what would happen to the economy should the Trump administration either decline to renew or terminate the existing U.S.-Mexico-Canada agreement.
The disclosure from Canada's department of foreign affairs, trade and development was made this week through a formal request for information in Canada's legislature.
Some former officials say they're surprised by this apparent lack of preparedness on the part of Canada's federal bureaucracy. Former officials say it is commonplace for senior members of the public service to prepare briefings for ministers and political staff about ramifications from policy decisions, whether they are made domestically or abroad.
Energy Fuels Wins Conditional $725 Million Support for Rare Earths Projects in U.S.
Energy Fuels received a conditional commitment for up to $725 million in U.S. government-backed financing to accelerate its expansion into rare earths and other critical materials.
Shares jumped 8.2% to settle at C$23.39.
The critical minerals company, which focuses on uranium, rare earth elements and other strategic materials, said the conditional financing commitment is from the Department of War's U.S. Office of Strategic Capital.
If fully approved, the department would extend a 20-year loan of $725 million loan to fund the planned expansion of the company's critical minerals processing capabilities at its White Mesa Mill in Utah and help build a new rare earth metals and alloy facility in the country.
Empire Profit, Revenue Rise
Empire reported higher profit in its fourth quarter, driven by higher sales across both its full-service and discount banners.
Shares gained 3.9%, settling at C$51.25.
For the three months ended May 2, the Canadian grocer posted a rise in net income to C$212 million, or C$0.94 a share, rising from C$173 million, or C$0.74 a share, in the comparable quarter a year ago.
Adjusted earnings were C$0.94 a share. According to FactSet, analysts were expecting C$0.87 a share.
Empire, which operates under retail banners such as Sobeys and FreshCo, saw sales rise to C$7.81 billion from C$7.64 billion, just shy of analyst forecasts of a rise to C$7.82 billion.
Titan Mining Names Richard Pozzebon Chief Financial Officer
Titan Mining has hired Richard Pozzebon as the zinc concentrate producer's new chief financial officer, effective July 6.
Shares declined 4.4% to end at C$3.04.
Titan said Pozzebon most recently served as executive vice president and finance chief of lumber maker Interfor.
Kevin Hart, Titan's previous chief financial officer, left the Gouverneur, N.Y., company last month for personal reasons.
Bell, Cohere, Hypertec and Hive Unit Partner on Canadian AI Infrastructure
Bell Canada, Cohere, Hypertec and Buzz High Performance Computing are teaming up to develop artificial-intelligence infrastructure in Canada.
Under the agreement, Bell will provide data-center capacity and connectivity services, the companies said. Buzz HPC, a subsidiary of Hive Digital Technologies, will provide cloud-computing infrastructure using hardware manufactured in Canada by Hypertec, as well as accelerated-computing technology from Nvidia. And Cohere will use the platform to operate its foundation models and provide AI services to government and enterprise customers.
The companies said that the collaboration will support the development and deployment of AI models on Canadian-based infrastructure.
TALKING POINT
Groupe Dynamite Bets on Wealthy U.S. ZIP Codes as Consumer Divide Widens
By Adriano Marchese
A Canadian fast-fashion brand is pushing deeper into America's wealthier enclaves, betting that selling affordable clothes in high-income neighborhoods will keep it tethered to consumers who are still spending in a cooling economy.
Groupe Dynamite, a Montreal-based fast-fashion retailer that owns the Garage and Dynamite brands, is building its U.S. footprint almost entirely inside the wealthiest shopping corridors in the country. Chief Executive Andrew Lutfy, who describes himself as a real estate professional as much as a retailer, said the strategy mirrors the K-shaped divide defining the current U.S. consumer landscape, where higher-income shoppers remain far more resilient than the rest.
"If you think about a K-shaped economy and you think about, let's say, that top 25%, top quartile income earners, we basically invest and open stores in those markets," Lutfy said in an interview.
Groupe Dynamite is navigating a U.S. consumer landscape increasingly split between those pulling back under the weight of higher inflation and borrowing costs, and a higher-income cohort that is still spending on apparel, travel and experiences.
The payoff shows up in the numbers. Groupe Dynamite has strung together several quarters of strong revenue growth and profit gains, most recently in its first quarter reported on Tuesday where it delivered a 37% revenue growth, driving up profit. However, its forecast for slower same-store sales sent the stock plunging 36% in a single session.
Markdowns at Groupe Dynamite remain in the low-single digits, Lutfy said, a sign that the company rarely needs to discount merchandise to move its product. Its stores continue to post strong returns from a core customer base of women in their mid-twenties and thirties, a demographic that still has discretionary spending power even as broader consumer demand cools.
"It's almost like we're starting from scratch in the U.S.," Lutfy said. "We don't have to go into the assets where many of our legacy competitors are currently situated."
New store openings have also shown signs of early momentum. A recent store opening in Hawaii drew lines around the block, Lutfy said, while the company's latest expansion in the U.K. has been well-received. Lutfy also hinted at potentially exporting the brand into new markets in Europe, but didn't disclose any details about immediate plans.
The strategy comes with its own pressures. Competition for those top-tier locations is intense, Lutfy said, with most major retailers chasing the same small pool of premium real estate. That dynamic is part of why the company has pushed into international markets like the U.K.
Still, Lutfy said he has no plans to slow store openings, with the company targeting eight to 10 new stores in fiscal 2027. "In terms of store openings, we've been pretty steady Eddie and I don't see any change there," he said.
Write to Adriano Marchese at [adriano.marchese@wsj.com]
Expected Major Events for Friday
06:00/GER: May PPI
06:00/UK: May Public sector finances
06:00/UK: May Retail sales
08:30/UK: May Monthly Insolvency statistics
08:30/UK: 1Q Bank of England statistics on UK banks' external claims
12:30/CAN: Apr Retail trade
13:00/RUS: Weekly International Reserves
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday
Cyanotech Corp (CYAN) is expected to report for 4Q.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
June 18, 2026 16:31 ET (20:31 GMT)
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