11AM Hour: Nova Scotia Premier on Trade War, The AI & Quantum Trade & Tanger CEO on the Consumer 8/25/26

The episode opens with an update on the escalating trade conflict between the U.S. and Canada, with Canada announcing it will retaliate dollar-for-dollar against U.S. tariffs by imposing tariffs of up to 50% on about $27.6 billion worth of American imports, including steel, dairy, farm equipment, lumber, and paper. This response is seen as a strategic and proportionate move amidst recent U.S. tariffs and inflammatory rhetoric. Canadian officials, including Premier Tim Houston, express that the relationship is strained but emphasize the need for a return to fair trade and mutual respect, highlighting Canada's efforts to diversify markets and focus on energy independence and other sectors for resilience.

Financial markets show a cautious bounce as investors anticipate key upcoming events like NVIDIA's earnings and the Jackson Hole symposium. Experts discuss the current market dynamics, noting a transition from paying close attention to earnings and macro data to a more optimistic outlook based on moderating inflation, strong earnings forecasts, and AI secular tailwinds. There is an emerging focus on how companies will demonstrate real-world AI applications and scalability, alongside a shift from expenditure to tangible business value and ROI. Analysts also consider macroeconomic factors such as interest rates, geopolitical tensions, and midterm elections which may introduce volatility but also present buying opportunities.

The episode features insights into AI development trends, including Perplexity’s new full-stack AI platform capable of local hardware execution, potentially lowering costs, increasing privacy, and reducing reliance on cloud providers. Discussions include OpenAI’s recent performance benchmarks touting energy efficiency and cost advantages, signaling increased competition in semiconductor manufacturing and AI hardware. Kristin Milchanowski from BMO highlights the shift of AI from pilots to enterprise-scale deployment and stresses the importance of new metrics for measuring business value and ROI. Quantum computing’s role as a long-term, complementary technology is emphasized, with preparations for achieving quantum advantage within a year, signaling a silent but impactful wave of innovation.

The episode covers macroeconomic themes such as China's potential peak in oil demand, which could influence global markets and oil prices. It also discusses retail sector performance, with Tanger CEO Steven Yalof sharing optimistic expectations for the holiday season despite consumer caution, supported by strong back-to-school sales and international travel related to the World Cup and movie theater experiences. Meanwhile, inflation, trade tensions, and tariffs are noted as ongoing factors influencing consumer behavior and corporate strategies. The retail discussion underscores the importance of value and experience in maintaining demand.