Trans Mountain, a government-owned oil pipeline operator in Canada, recently made revisions to its standards for accepting crude oil on its expanded system. This decision came after buyers expressed concerns about the quality of the crude oil being transported through the Trans Mountain pipeline expansion, known as TMX. The U.S. West Coast refining market is a significant outlet for the Canadian heavy oil shipped via this pipeline. Trans Mountain announced that it would be replacing the existing pool of “Low TAN Dilbit” with a pool of “Pacific Cold Lake,” which consists of bitumen diluted with crude having a density of less than 800 kilograms per cubic meter.
Meanwhile, GameStop, a popular video game retailer, saw its shares plummet after CEO Ryan Cohen revealed plans to operate a smaller network of stores. However, details about what the company intends to do with its cash reserves were not provided. The announcement led to an 11.6% drop in GameStop shares to $25.38 following the annual general shareholder meeting. Cohen emphasized that the company aims to operate with a smaller network offering more value-added items to enhance sales and profitability.
In Spain, a leading EU pork exporter, efforts are underway to avoid damaging tariffs after China announced an anti-dumping inquiry. The investigation seems to be primarily focused on Spain, the Netherlands, France, and Denmark, which are the top EU exporters of pork to China. Additionally, the European Commission recently stated that it would impose anti-subsidy duties on imported Chinese cars starting in July.
LCBO workers in Ontario have set an early July deadline for a potential strike at liquor stores. The Ontario public sector union’s bargaining team expressed dissatisfaction with the current state of collective bargaining and accused Premier Doug Ford of pursuing a deal that would result in a significant loss of public funds. A historic vote revealed that 97% of LCBO workers supported strike action if necessary, prompting the bargaining team to announce plans for a strike in early July.
The US is looking to decouple its military supplies from China due to the latter’s central role in the global supply chain. As tensions between the two countries escalate, the US defence industry may seek to reduce its reliance on China for essential supplies. China’s significant role in producing raw materials, rare earth metals, and high-tech equipment has prompted the US to consider cutting ties with China entirely.
In other news, Amazon was fined $5.9 million for failing to provide written work quotas to employees at two warehouses in Southern California. This penalty comes in the wake of a new state law that took effect in 2022, increasing regulatory scrutiny on the online retail giant.
As different developments unfold across various industries, it is essential for companies and governments to adapt to changing circumstances and navigate challenges effectively to ensure stability and growth in the global economy.