Headline inflation of 3.2% came in above expectations, continuing to expand versus last month…

… on the back of acceleration in food and transportation inflation, which offset deceleration in shelter.

In transportation, gas prices are the main driver - which could see some relief in the coming prints…

… while food inflation is proving sticky, climbing to 4.3% on Y/Y jumps of 5% and 9% in the price of fresh fruit and vegetables.

Together, upward pressure in those two categories is masking the steady grind lower in shelter inflation - driven by mortgage interest costs and rent expense.

While small, one other category worth flagging is computer equipment - which flipped positive for the first time since 2020…

… on demand linked to data centres.

We got a couple more government pushes on nuclear, with Canada’s new strategy aiming to bring AtkinsRealis-serviced CANDU reactors to at least four new international markets by 2040…

… and the US DoE committing $17.5B of credit towards the purchase of equipment needed to reach construction on 10 Westinghouse AP1000 reactors by 2030 (owned by Cameco and Brookfield).

As we’ve said previously, aging nuclear fleets in developed economies are driving demand for refurbishment and new builds…

… so the origin of the underlying technology matters now more than ever, given the geopolitical backdrop.

That means public sector capital will continue to flow to the private sector, which investors have been banking on over the past few years.

Couche-Tard (ATD) ran over 10% on its Q4 results, which beat on revenue thanks to continued acceleration in US same-store merchandise growth…

… and crushed EPS estimates thanks to margin expansion in fuel, stemming from prior investments that enable the company to capitalize on energy market volatility.

Management expects those drivers to repeat in Q1, giving them confidence in the full-year >10% EPS growth guide and making ATD’s current valuation look interesting.

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