Carney Looks To AI For Savings As Canada’s Budget Pressures Mount

Political

Economic

Summary:

Prime Minister Mark Carney said Canada will begin to use artificial intelligence “at scale” to make the government more productive, as his administration looks for ways to squeeze out cost savings in a time of economic pressure.

Carney released a letter spelling out seven major priorities for his new cabinet, one of which is “spending less on government operations” to free up money for other priorities. The prime minister promised during the recent election campaign to rebuild Canada's military and use the financial backing of the government to accelerate home construction, among other spending ideas.

The government won't release a budget until the autumn months; usually it does so in March or April. That will allow more time to assess the economic effects of the trade war and figure out what new defense spending is needed, Carney told reporters Tuesday evening. The last new federal budget was in April 2024.

The Canadian government's total program expenses are expected to reach C$500 billion ($360 billion) this fiscal year, excluding debt charges, up from about C$260 billion in 2016. Carney has said operating expenses are growing too quickly and must be reined in, but has given few details on how he believes AI can be deployed in government operations.

He did, however, appoint Canada's first minister of artificial intelligence — Evan Solomon, a former television broadcaster — as well as a minister of government transformation, Quebec lawmaker Joel Lightbound.

Economists are forecasting a budget deficit of 1.7% of gross domestic product this year, according to data compiled by Bloomberg. But the number is likely to be higher because of sluggish economic growth and the election pledges that Carney made. The Liberal Party's platform projected a deficit of 2% of GDP for the fiscal year that ends next March.

“The delay of the budget is a bit concerning, as it raises questions about transparency and contributes to greater economic and fiscal uncertainty,” Josh Grundleger, a director at Fitch Ratings, said in an emailed statement.

Parliament will reopen next week, with King Charles III set to deliver what's known as the throne speech on Tuesday, laying out the government's priorities.

“It would be helpful for markets to have a clear sense of which aspects of the party platform will be implemented and what the ultimate impact will be on deficits, debt and the taxpayer,” said Fitch's Grundleger.

Canada's debt is rated AAA by S&P Global Ratings and Aaa by Moody's, the highest ratings available from those agencies. Fitch downgraded the country to AA+ in June 2020.

“We hope to get more clarity on near-term priorities when the speech from the throne is introduced,” Travis Shaw, the lead analyst for Canada at Morningstar DBRS, said in an emailed statement.

Jennifer Love, an associate director at S&P Global Ratings, said Canada's economic growth will remain “constrained” because of the tariff war launched by the US, its largest trading partner. However, “we continue to believe that Canada's credit strength will persist even with lower growth and trade uncertainties,” she said.

Source: Bloomberg Europe

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Adam

Cryptocurrency

All crypto boats rose again on Thursday, with bitcoin notching fresh all-time highs as bullish momentum swept through the broader crypto market.

The world’s largest cryptocurrency climbed more than 4% to $111,889 on trading platforms like Coinbase, before easing slightly to $111,400 by publication time, according to The Block's price page.

Altcoins rallied alongside, with the GMCI 30 Index — which tracks the top 30 cryptocurrencies by market capitalization — posting gains as well.

The price momentum has catapulted demand for global crypto options. Bitcoin BTC +1.85% options open interest (OI) reached a new all-time high above $45.8 billion, accounting for nearly 84% of the total digital asset options market, per CoinGlass data. Meanwhile, open interest in ETH options soared to over $8 billion.

Total options OI for bitcoin and ether grew to over $53.8 billion in notional value, its highest point since December 2024.

All drivers in full gear

Geoffrey Kendrick, Standard Chartered's global head of digital assets research, said that previously reported market stimulants moved in unison to fuel BTC's rally.

"With Bitcoin printing in a predicted all-time high, it is time to take stock and see which of our predicted drivers is working. Short answer – everything is working," Kendrick wrote in a May 22 report shared with The Block.

Earlier this week, Kendrick reaffirmed his $500,000 BTC price target expected during President Donald Trump's current tenure. To back the thesis, Standard Chartered's expert highlighted quarterly 13F data from the U.S. Securities and Exchange Commission (SEC), which showed sovereign nations and institutions increasing exposure to bitcoin via proxy assets like Strategy's MSTR. The analyst said this trend has likely continued into the second quarter of 2025.

In addition, capital has rotated from gold funds to bitcoin products since the former's April 22 peak. Gold exchange-traded products shed over $3.6 billion while BTC ETFs attracted over $7.5 billion in those five weeks, Kendrick noted. Hedge fund shorts rose only by $1 billion in that time, suggesting that net long positions comprised the lion's share of BTC ETF flows.

Kendrick also said bitcoin remains closely correlated with the U.S. Treasury term premium. Mounting risks in the Treasury market, both domestic and international, are adding to bitcoin’s appeal, he argued.

"My official forecasts for Bitcoin are 120k end Q2, 200k end 2025, and 500k end 2028. All are well in hand," he said.

Analysts affirm 'buy in May and go away' theme as bitcoin hits $111,889 amid record options demand_1

Caution amid growing euphoria

Despite the bullish sentiment, some analysts warned of potential volatility.

Dr. Kirill Kretov, senior automation expert at CoinPanel, advised caution amid rising open interest and thin market liquidity.

“Think of it like stretching a rubber band: when OI is high and liquidity is low, the market is tightly wound—small catalysts can cause big moves,” Kretov said via Telegram. “Paired with the liquidity withdrawal trend I’ve tracked since November 2024, this surge in OI suggests that we are entering a highly sensitive phase. The question is: how long can this last? In a market this thin and volatile, it could turn at any moment. All it takes is a macro headline, a regulatory comment, or a liquidity hiccup."

Still, others are optimistic. Paul Howard, senior director at Wincent, said he expects bitcoin to trade higher in the weeks ahead.

“The more regulatory-friendly stance from the US and an increasing number of institutions that are coming into the market from both ETF and spot acquisition means we will see prices continue to move higher in the coming months, especially as the macro picture improves,” Howard told The Block. "The sense is it's more likely a case of buy in May and go away than any significant headwinds or selling pressure."

Source: theblock

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Thomas

Economic

Finance ministers and central bank governors from the Group of Seven nations pledged to address "excessive imbalances" in the global economy, Bloomberg News reported on Thursday, citing a draft communique.

The finance leaders, meeting in the Canadian Rocky Mountains, said there was a need for a common understanding of how "non-market policies and practices" undermine international economic security, Bloomberg News reported. It said the draft statement calls for an analysis of "market concentration and international supply chain resilience."

Reuters could not immediately verify the report.

German Finance Minister Lars Klingbeil told reporters on Thursday that a joint statement from G7 finance ministers and central bank governors meeting in Banff, Alberta, was still under negotiation but that he was optimistic there would be agreement.

The leaders said they agreed "on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency," the report said.

The report said the draft did not name China, but references by the U.S. and other G7 economies to "non-market policies and practices" often are targeted at China's state subsidies and export-driven economic model.

The U.S. Treasury said earlier this week that Treasury Secretary Scott Bessent intended to press G7 allies to focus on rebalancing the global economy to protect workers and companies from China's "unfair practices."

A U.S. Treasury spokesperson did not immediately respond to a request for comment on the Bloomberg report.

The report said the draft also recognized an increase in low-value international "de minimis" package shipments that can overwhelm customs and tax collection systems and be used for smuggling drugs and other illicit goods.

The duty-free de minimis exemption for packages valued below $800 has been exploited by Chinese e-commerce companies including Shein and Temu.

The G7 nations also will consider options to increase sanctions on Russia if a ceasefire with Ukraine is not reached, the report said.

Klingbeil said Russia needs to commit to serious peace talks to end the war in Ukraine, or face stronger international sanctions.

Finance leaders from G7 countries — the U.S., Britain, Canada, France, Germany, Italy and Japan — are meeting through Thursday. The remarks reported may be part of a final communique being prepared to summarize three days of meetings among officials from the G7 countries.

Source: TradingView

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Adam

Economic

EIA Storage Build Pressures U.S. Natural Gas Futures as Traders Eye Technical Support Levels

U.S. natural gas futures slipped Thursday morning, with traders reacting to downside momentum following Wednesday’s rejection at the key $3.438 pivot. Market participants are bracing for another larger-than-normal storage build in the weekly EIA report, reinforcing a bearish near-term bias.

Can the 200-Day Moving Average Hold Under Pressure?

Daily Natural Gas

Futures are edging lower with prices threatening the 200-day moving average at $3.170. A decisive break below this level would signal growing seller conviction. However, stronger support lies below at $3.098 and $3.035, both of which have recently attracted aggressive dip-buying. To push through this zone, bears will likely need a significant volume surge—something that has yet to materialize.

If the downside holds, the rebound path is clearly mapped. A break above $3.438 would put the 50-day moving average at $3.700 in play, with further resistance at $3.733. Breaching that level could open the door for a run toward $4.062, making $3.438 the key battleground for both sides in the coming sessions.

EIA Storage Report Forecasted to Beat Seasonal Norms Again

Thursday’s EIA report is widely expected to show a build of +119 Bcf for the week ending May 16, significantly above the five-year average of +87 Bcf. If confirmed, this would follow last week’s +110 Bcf injection, further weighing on sentiment. Inventory levels now sit 2.6% above their five-year average, despite being 14.6% lower year-on-year. These data continue to suggest ample supply heading into summer.

The bearish tone isn’t limited to U.S. markets. European gas storage was at 45% capacity as of May 18, compared to a five-year seasonal average of 55%, further reinforcing global supply adequacy even as the continent prepares for peak summer demand.

Will Seasonal Weather Trends Help Bulls Recover Control?

Short-term demand remains muted. Forecasts for May 21–27 point to a mild pattern across the Midwest and East, with highs in the 50s to 70s and even 40s in some areas. The West and South remain hotter, but not enough to drive significant national demand. Looking forward, some models suggest a warming trend by early June, but confidence in that outlook remains limited given the timeframe.

Market Forecast: Bearish Near-Term Outlook Until Support Break or Weather Shift

Unless bulls can retake the $3.438 pivot, the path of least resistance remains lower. Elevated storage builds and mild weather imply limited upside for now. A break below $3.035 would further cement short-term bearish momentum. Traders should monitor weather shifts and EIA surprises for potential catalysts, but current conditions favor sellers.

Source: fxempire

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Gerik

Economic

Malaysia and the End of Frictionless Globalization

The collapse of the post-Cold War era's "frictionless globalization" is not an abrupt crash but a prolonged recalibration of global systems—fueled by rising tariffs, slowing trade, financial stress, and renewed geopolitical rivalry. For Malaysia, a country with a trade-to-GDP ratio exceeding 130%, this reconfiguration strikes at its economic core. As major trading partners like China, Japan, and Singapore face domestic and structural challenges, Malaysia finds itself squeezed by weakened exports, reduced services demand, and dwindling investment flows.

More critically, the global shift toward protectionism and “reshoring” of production risks marginalizing Malaysia from the global supply chains that once propelled its growth. In this new paradigm, access to markets, capital, and technology is increasingly dictated by geopolitics—not economic efficiency.

Pivot or Perish: Domestic Economic Strategy Under Pressure

According to economist Samirul Ariff Othman, Malaysia must urgently pivot from an outdated export-led model toward resilient domestic foundations. This means a new fiscal stimulus to boost household consumption, strengthen micro and small businesses, and invest in sectors like digital technology, renewable energy, and advanced manufacturing. Such investments must also be tied to industrial localization strategies, strategic supply chain reconfiguration, and targeted FDI through a “China +1” positioning.

Yet fiscal constraints remain. Malaysia’s Fiscal Responsibility Act caps federal debt at 60% of GDP—a ceiling already tested during the pandemic. Rising subsidies, budget deficits, and the politically sensitive PADU subsidy reform program pose immediate policy dilemmas. Delay in addressing these imbalances may deepen the long-term damage.

Recalibrating Foreign Policy in a Divided World

Beyond economics, Malaysia must reposition its foreign policy to thrive in a fragmented world. It cannot rely too heavily on the U.S.-led Indo-Pacific architecture, nor can it afford dependence on China's gravitational pull. Instead, a smart, flexible, multi-vector diplomacy is needed.

This entails deepening trade integration within ASEAN, securing security and tech partnerships with Japan, South Korea, and India, and engaging Europe on green economic cooperation. Malaysia should also become an active architect of new “minilateral” agreements—practical, fast-moving pacts with like-minded countries on trade, innovation, and technology. ASEAN, meanwhile, must evolve from a symbolic bloc to a strategic buffer with real economic and diplomatic muscle.

No Illusions, Only Hard Choices Ahead

The Cold War-era model of open trade, financial convergence, and shared prosperity is being dismantled and rebuilt. Trade routes will be weaponized, currencies contested, and tech standards divided along geopolitical lines. Middle powers like Malaysia will be forced to choose, hedge, or shape outcomes. But time is short, and old certainties have vanished.

Malaysia’s future hinges not on returning to what was, but on adapting to what is coming. The country must lead its own transformation—or be led by the currents of powers far stronger and less forgiving.

To stay updated on all economic events of today, please check out our Economic calendar

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Warren Takunda

Cryptocurrency

Key takeaways:

Memecoins like Fartcoin, WIF, SPX6900, and Popcat are outperforming Bitcoin in the short term amid renewed crypto market euphoria.

Bullish technical patterns signal more upside for top-performing memecoins.

Popcat stands out with a potential 350% rally, while Fartcoin and WIF also eye significant gains in the coming weeks.

Bitcoin has surged 7.35% over the past three days, hitting a new all-time high near $112,000 on May 22, but memecoins are stealing the spotlight.

Fueled by BTC’s rally, several high-risk tokens are posting even larger gains, stoking possibilities that they could continue to outperform Bitcoin as the crypto bull run accelerates.

Fartcoin ascending channel hints at more gains

Solana-based Fartcoin (FARTCOIN) memecoin has surged 30% in the last three days to hit $1.57 as of May 22, its highest level in the last four months.

The rally extends Fartcoin’s strong year-to-date (YTD) performance—up 74.50%—amid the ongoing memecoin frenzy. In comparison, Bitcoin has risen 18% so far in 2025.

Technically, Fartcoin is trading within a well-defined ascending channel that began forming in early March, suggesting sustained bullish momentum. These 4 Memecoins Can Outperform Bitcoin This Cycle_1

These 4 Memecoins Can Outperform Bitcoin This Cycle_1

FARTCOIN/USDT daily price chart. Source: TradingView

The memecoin has also broken above its 50-day exponential moving average (50-day EMA; the red wave), currently near $1.06, a key support level in uptrends.

FARTCOIN’s relative strength index (RSI) was hovering near 64 as of May 22, suggesting there is room to run before selling conditions emerge near the overbought threshold at 70.

If the uptrend holds, Fartcoin could retest the channel’s upper boundary near $2.74 by June, up 80% from the current price levels.

Dogwifhat price could double

Like FARTCOIN, Dogwifhat has outperformed Bitcoin during the recent rally, up over 27% in the past three days. But the Solana memecoin has underperformed the top cryptocurrency year-to-date, down about 38%.

But a bull pennant formation may put Dogwifhat in a position to catch up in the coming weeks.

As of May 22, WIF’s price was testing the pennant’s upper trendline for a breakout, with its technical target at around $2.50, up about 125% from the current price levels. These 4 Memecoins Can Outperform Bitcoin This Cycle_2

These 4 Memecoins Can Outperform Bitcoin This Cycle_2

WIF/USDT daily price chart. Source: TradingView

The upside target aligns with the 0.5 Fibonacci retracement line, which has served as resistance during WIF’s consolidation phase between November 2024 and January 2025.

SPX6900 eyes 50% gains following breakout

Ethereum-based SPX6900 (SPX6900) has surged 35% in the last three days, paring its 2025 losses. It is, therefore, underperforming Bitcoin on a YTD timeframe but, like WIF, shows the potential of outperforming BTC this cycle in percentage terms.

At the core of this bullish outlook is SPX6900’s ongoing bullish reversal attempts. As of May 22, the memecoin had entered the breakout stage of its prevailing ascending triangle pattern, eyeing a rally toward $1.34 by June. These 4 Memecoins Can Outperform Bitcoin This Cycle_3

These 4 Memecoins Can Outperform Bitcoin This Cycle_3

SPX6900/USDT daily price chart. Source: TradingView

The upside target is up 50% from the current price levels, which was the resistance in January.

Popcat preps 350% rally setup

Solana’s Popcat gained 30% during Bitcoin’s rally, reaching its record high, but it remains an underperformer YTD.

However, a convincing cup-and-handle formation on POPCAT’s daily chart increases its potential of outperforming Bitcoin in the coming weeks or months. These 4 Memecoins Can Outperform Bitcoin This Cycle_4

These 4 Memecoins Can Outperform Bitcoin This Cycle_4

POPCAT/USDT daily price chart. Source: TradingView

As of May 22, the memecoin was testing the pattern’s neckline at $0.57 for a breakout toward $2.50, up by over 350%. This target is obtained by adding the neckline—a potential breakout point—to the cup-and-handle’s maximum height.

Source: Cointelegraph

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Adam

Commodity

The gold market could struggle to attract fresh safe-haven flows as preliminary economic data points to a modest recovery in activity across both the service and manufacturing sectors.

S&P Global reported on Tuesday that its flash Purchasing Managers Index (PMI) for the service sector rose in May to 52.3, up from April’s reading of 50.8. The data beat expectations, as economists had forecast a reading of around 51.

Activity in the manufacturing sector also improved at a similar pace, with the PMI rising to 52.3, up from the previous month’s reading of 50.2. The improvement in manufacturing was a bigger surprise compared to services, as economists had expected a contraction.

While the data will ease some fears of a major economic slowdown, the report noted that sentiment remains subdued.

“US business activity growth and expectations for future output improved from lows seen in April, according to flash PMI survey data for May. However, they both remained historically subdued amid ongoing concerns over the detrimental impact of tariffs on demand, supply chains, and prices,” the report said.

The gold market is seeing renewed selling pressure in its initial reaction to the better-than-expected data. The precious metal is struggling to hold key near-term resistance. Spot gold last traded at $3,292.70 an ounce, down 0.63% on the day.

While activity has improved, the report noted that President Donald Trump’s import tariffs have cast a long shadow over sentiment and are impacting prices.

“Prices charged for goods and services surged to an extent not seen since August 2022, overwhelmingly linked to tariffs,” the report said.

At the same time, although optimism has improved, the report noted that uncertainty continues to flow through the economy.

“Overall optimism was still slightly below the average seen in 2024, attributable to reports of supply worries, rising prices, ongoing uncertainty, and concerns over detrimental impacts from government policies, including tariffs and spending cuts,” the report said.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said that some of the activity could be front-loaded as the current 90-day deadline approaches.

“In particular, concerns over tariff-related supply shortages and price rises led to the largest accumulation of input inventories recorded since survey data were first available 18 years ago,” he said in the report. “Supply chain delays are now more prevalent than at any time since the pandemic led to widespread shortages in 2022, and prices charged for both goods and services have spiked higher as firms and their suppliers seek to pass on tariff levies to customers.”