The proposed levies on Canadian goods—including wine, cement, and clothing—represent a significant 5% slice of exports heading south. Canadian Prime Minister Mark Carney has pledged to intensify negotiations, signaling a potential return to the protectionist volatility that defined previous trade cycles. Meanwhile, in the UK, newly appointed Prime Minister Andy Burnham has named former defense minister John Healey as Chancellor of the Exchequer. This decision, which sidelined interior minister Shabana Mahmood, suggests a possible pivot in fiscal policy, specifically regarding the carve-out of defense spending from standing budgetary rules. Burnham’s administration also intends to lower electricity costs by abandoning a digital ID program, a move analysts believe could temper inflation and ease pressure on the Bank of England.

Market participants remain hyper-focused on the tech sector as Alphabet prepares to report earnings this Wednesday. Expectations are high for a 21% revenue increase to $117 billion, bolstered by a projected 64% surge in cloud revenue. While Alphabet’s stock has trailed its hyperscaler rivals recently, investor optimism received a jolt from reports that Google is developing a custom server chip integrated with its Gemini AI model. These corporate developments, alongside business surveys from the Philadelphia Fed and a slate of earnings from firms like GM and Halliburton, will set the tone for the remainder of the week.