Dear valued client,
Both American and Canadian markets were back on track with gains this week as Canadian inflation numbers for May came in a full percentage point lower (3.4%) compared to a month prior. This is the lowest inflation has been in Canada in over two years. Pundits are warning, however, this encouraging report may not be enough for a continued pause on interest rate hikes as food prices remain lingeringly elevated – roughly 9% higher than a year ago.
The story that dominated headlines this week was the attempted coup by the Wagner Group as they marched toward Moscow last weekend. The Wagner Group is a private military company, led by Yevgeny Prigozhin, that has helped further Putin’s global interests in Syria, Africa, and more recently in Ukraine.
Prigozhin entered Kremlin circles decades ago with his catering company, Concord, which serviced state dinners for U.S. Presidents and other world leaders. The revolt last weekend was ignited when Prigozhin accused Russian Defense Minister of air strikes on Wagner fighters in Ukraine, feeling his soldiers were being treated as shields and not given the respect they deserve. This comes on the heels of an order issued earlier this month that all Wagner fighters were to sign contracts with the Russian government, a move to bring Wagner under formal military control. The order was refused. Putin may have overplayed his hand.
In an act of open rebellion, the Wagner army made their way toward Moscow. As fears of a civil war mounded, Putin agreed to a truce that sent Prigozhin to Belarus in exchange for amnesty, and Wagner troops aborted their mutiny. This is the biggest threat Putin has faced in his 24 years in power and has exposed glaring weaknesses in his authority.
What this means for Wagner soldiers, the war in Ukraine, and Putin’s regime remind to be seen. This could be the beginning of the end of the war and Putin’s reign, or a rejuvenation of the Russian army. I’m hoping for the former.
“Your greatest threat will always come from the inside. Never forget that.” – Omar Navarro (Ozark)
Have a terrific weekend.
PW
