Key Takeaways
- Canada and the U.S. remain in complex trade negotiations, with Canada resisting new U.S. tariffs of 35% on non-USMCA sectors like steel, aluminum, and autos, following a missed August 1st deadline.
- Former White House Economic Advisor Kevin Hassett has called for a "full overhaul" of the Bureau of Labor Statistics (BLS) methods, labeling current labor market data as "unreliable" and "misleading America" due to significant revisions and declining survey response rates.
- The UK's Financial Conduct Authority (FCA) estimates car loan redress costs for consumers affected by hidden commission arrangements could range between £9 billion and £18 billion, with most individual payouts expected to be under £950.
- Cleveland-Cliffs (CLF) has launched a new $150 million Vertical Stainless Bright Anneal Line at its Coshocton, Ohio facility, aiming to boost premium stainless steel production for the automotive and appliance industries, utilizing a 100% hydrogen atmosphere.
North American Trade Standoff Continues Amid Escalating Tariffs
Trade relations between Canada and the United States are facing renewed pressure as negotiations continue following a missed August 1st deadline for a new agreement. Canadian Trade Minister Dominic LeBlanc stated that Canada will not "rush into a bad deal" and is holding firm for its long-term economic interests, despite new U.S. tariffs. These new tariffs, increased from 25% to 35% by President Donald Trump, threaten non-USMCA sectors, specifically impacting Canadian steel, aluminum, and automotive industries.
LeBlanc remains optimistic about the ongoing trade talks, acknowledging that discussions may take "weeks" but emphasizing that Canada is encouraged by recent meetings with U.S. officials. The Canadian government is focused on supporting sectors affected by the tariffs, with Prime Minister Mark Carney expected to announce support measures for workers and businesses in the steel, aluminum, and auto sectors.
U.S. Labor Data Under Scrutiny as Calls for Overhaul Emerge
The integrity of U.S. labor market data has been sharply criticized by former White House Economic Advisor Kevin Hassett, who described it as "unreliable" and "misleading America." Hassett, speaking after the recent firing of the head of the Bureau of Labor Statistics (BLS), called for a "full overhaul" of the BLS's methods, citing persistent issues with significant downward revisions to job numbers and declining survey response rates. He highlighted that the mean absolute revision in payroll data post-COVID has been larger than the typical reported job gains, indicating a "heck of a lot of noisiness" in the data.
UK Car Loan Scandal: Billions in Redress Expected
The UK's financial regulator, the Financial Conduct Authority (FCA), is moving forward with a redress scheme for consumers affected by the car finance scandal, with estimated costs to lenders ranging from £9 billion to £18 billion. The scheme, set to launch in 2026, will address issues stemming from "discretionary commission arrangements" (DCAs), which were banned in 2021. These arrangements allowed car dealers to earn higher commissions by setting higher interest rates for customers without their full knowledge. While the Supreme Court recently sided with finance companies in a broader ruling, it upheld a case where the relationship between lender and borrower was deemed "unfair," paving the way for compensation in such instances. Most individual payouts are anticipated to be under £950.
Cleveland-Cliffs Expands Steel Manufacturing with New Line
In a significant development for the U.S. steel industry, Cleveland-Cliffs (CLF) has commissioned a new $150 million Vertical Stainless Bright Anneal Line at its Coshocton Works facility in Ohio. This investment aims to increase the production of premium stainless steel, primarily for high-end automotive and critical appliance applications. The new annealing line is technologically advanced, utilizing a 100% hydrogen atmosphere, which replaces conventional acid-based processing and includes a hydrogen recovery unit for enhanced sustainability. Lourenco Goncalves, Chairman, President, and CEO of Cleveland-Cliffs, stated that the stainless steel business has been the company's most consistent profit-generating unit since the acquisition of AK Steel in 2020, and this new line is expected to provide a quick payback on the investment.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.