Silver banana goes to…

In this issue of the peel:

• 📃 Commerce Secretary Howard Lutnick is working through trade deals left and right.

• 🚗 Automakers are getting some tariff relief, and investors are getting cheerful.

• 👔Canada’s Mark Carney pulls off the late buzzer-beater to remain PM of the country.

Market Snapshot

Banana Bits

• Canadians have spoken, and PM Mark Carney is set to remain in power.

• Amazon backs down from its plans to list “tariff costs” on its website after meeting with the White House.

• The auto industry is getting a break on tariffs, and GM reported an earnings beat.

• The market is headed for its worst 100-day performance since the ‘70s.

• Retired QB Eli Manning is putting in a bid for ownership of the New York Giants.

• Consumer bellwether company Kraft Heinz cut its full-year outlook on spending concerns.

The Daily Poll

Previous Poll:

Can DoorDash beat Uber Eats in Europe?

Easy win: 23% // Tough crowd: 50% // Depends on the deal: 27%

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Macro Monkey Says

Mark Carney: The Man of Many Hats

Ascending to the throne of being Prime Minister of Canada is one thing. Doing so after serving as Governor of the Bank of Canada and The Bank of England makes me feel unaccomplished. 

Mark Carney, who initially took over for the shamed Justin Trudeau after he resigned, decided that his 15 minutes of fame as interim PM wasn’t enough. He applied for a full-time job and led the Liberal Party to victory. This win marks the Liberals' fourth consecutive term, a rare achievement in Canadian politics. ​

Carney's ascent followed Justin Trudeau's resignation in January 2025, amid declining approval ratings and internal party pressures. Carney officially became Prime Minister on March 14 of this year, after winning the Liberal leadership election. 

The election campaign was notably influenced by the US (because, let’s be honest, who isn’t influenced by the US). Aggressive trade policies and rhetoric, including threats of annexation, have stirred a wave of Canadian nationalism, with Carney positioning himself as a steady and experienced leader ready to defend Canada's sovereignty. ​

Despite initial predictions favoring the Conservative Party, led by Pierre Poilievre, the Liberals managed a comeback. Poilievre's alignment with Trump's policies and his "Canada First" slogan did not resonate with voters, leading to his loss of a parliamentary seat. ​

Carney's victory speech emphasized unity and resilience, pledging to navigate the nation through economic challenges and strained U.S. relations. His background in economics and crisis management is expected to play a crucial role in addressing issues like the cost-of-living crisis and housing shortages. ​

The Takeaway?

Mark Carney's rise to Prime Minister underscores how external factors, like international politics, can significantly impact domestic elections. 

His leadership marks a shift towards technocratic governance, with a focus on economic stability and national unity. As Canada faces ongoing challenges, Carney's approach will be pivotal in shaping the country's future.

Career Corner

Question

I got connected with a VP at JPM, and when requested to connect on a call, he replied and said, "Let's talk on LinkedIn."

Now, I am not sure how many questions I can ask or how much is too much in a test format, and above all, I am not sure how to take the conversation and convert it to a potential phone call. Any suggestions?

Answer

It could be that he doesn't want to chat via email and prefers his recruiting conversations over LinkedIn (not company email). Just continue the conversation on LinkedIn, remind him who you are and that you've already connected via email, and ask for a phone call.

Head Mentor, WSO Academy

Check out WSO Academy!

What's Ripe

Hims & Hers (HIMS) 23.0%

• Hims & Hers’ stock jumped after announcing a partnership with Novo Nordisk to offer the weight-loss drug Wegovy through its platform. This collaboration allows customers to access all doses of Wegovy bundled with a Hims & Hers membership starting at $599, expanding access to the FDA-approved medication. 

• The move comes as the FDA plans to restrict compounded versions of such drugs, positioning Hims & Hers to meet demand with branded treatments.

Shift4 Payments (FOUR) 12.8%

• Shift4 Payments saw its stock jump despite releasing a mixed earnings report. While the company missed revenue expectations, it exceeded earnings per share estimates and raised its full-year guidance, boosting investor confidence. 

• The positive outlook suggests that Shift4 is optimistic about its growth prospects despite the revenue shortfall.

What's Rotten

Brinker International (EAT) 14.8%

• Strong earnings weren't enough to help the parent company of Chili’s restaurants yesterday. Despite reporting an EPS of $2.66, which was up 115% from last year and beating expectations, the stock plunged on account of uneasiness about consumer spending moving forward.

Insperity (NSP) 14.5%

• Insperity shares dropped after the company reported disappointing quarterly earnings. The HR services provider missed revenue expectations and issued weaker-than-anticipated guidance, raising concerns about its growth prospects. As a result, the stock is now trading down more than 35% from its 52-week high.

Thought Banana

A Collective Sigh of Relief 

In a week filled with economic headlines, U.S. Commerce Secretary Howard Lutnick announced that the United States has successfully negotiated a trade deal with an unnamed foreign partner. 

While the specifics remain confidential pending the partner country's approval, this development signals progress in the administration's efforts to reshape global trade relationships.

Simultaneously, President Donald Trump introduced measures to alleviate the impact of the recently imposed 25% tariffs on imported vehicles and auto parts. 

Under the new policy, automakers assembling vehicles in the U.S. will receive credits covering up to 15% of the value of domestically assembled vehicles, which can be applied against the cost of imported parts. This initiative aims to ease pressure on the auto industry while incentivizing companies to reshore production. ​

Industry leaders have responded positively to these announcements. Ford CEO Jim Farley expressed appreciation for the tariff relief measures, highlighting their potential to mitigate the impact on automakers, suppliers, and consumers. 

Similarly, Stellantis Chairman John Elkann praised the administration's decision, emphasizing the importance of a competitive American auto industry. ​

The Takeaway?

The recent developments in trade negotiations and tariff policies indicate a strategic shift aimed at strengthening domestic manufacturing and fostering international trade relationships. While the long-term effects remain to be seen, these measures reflect a concerted effort to balance economic growth with global competitiveness.

Banana Brain Teaser

Previous

Pipe A can fill a tank in 4 hours, and Pipe B can fill the same tank in 6 hours. If both pipes are opened together, but Pipe B is closed after 2 hours, how long will it take in total to fill the tank?

Answer: 2hrs and 40mins

Today

60% of the members of a study group are women, and 45% of those women are lawyers. If one member of the study group is to be selected at random, what is the probability that the member selected is a woman lawyer?

Send your guesses to [email protected]

How Would You Rate Today's Peel?

Happy Investing,
Chris, Vyom, Ankit & Patrick

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