The federal government unveiled plans to spend $360 million on Canada’s quantum science sector to secure the country’s position as a leader in the space (and if everything goes to plan, render all your devices obsolete). 

Why it matters: Canada has been a pioneer in the quantum computing space, but with rivers of money now flowing into the sector—$16.4 billion within the next four years, by one estimate—we risk losing our early lead. 

• That would be a missed opportunity for our economy if projections showing the quantum computing market growing to US$8.6 billion by 2027 hold true.
   
• The money from the feds is set aside for R&D, attracting talent, and commercializing new technology.

Catch up: At a high level (very high, because we are not scientists), quantum computers get their computing power from quantum bits (or “qubits”), which can deliver far more computing power than the type of computer we’re all accustomed to.

• In theory, this could allow quantum computers to quickly solve all sorts of problems that would take classical computers a very long time to figure out.
   
• For example, a working quantum computer could model extremely complex financial risks, design better batteries, or break cryptography measures to hack sensitive data.

Zoom out: Other governments and businesses are also making big bets on quantum computers. 

• China and the US, racing to stay ahead of each other in a technological arms race, are investing around $100 million per year in quantum science.
   
• IBM CEO Arvind Krishna has said his company will have a working quantum computer by 2025 that could solve problems which would take a classical computer the size of Earth to tackle today.

Yes, but: Some aren’t convinced that quantum computers are anywhere close to being useful in the real world. 

• Scott Aaronson, a computer scientist and professor at the University of Texas at Austin, has argued that quantum researchers are over-hyping their progress to secure more funding and investment. 

Bottom line: Even with the payoff uncertain, Canadian policymakers are willing to spend now to stay in the race to develop real-world applications for quantum tech.

The UK will send tanks to Ukraine. The decision is expected to add pressure on Germany to follow suit, opening the door for more European countries to send their own German-made Leopard 2 tanks to Ukraine, as well. Meanwhile, a Russian missile strike on an apartment building killed at least 30 people in Dnipro, the deadliest attack on civilians in months. (Reuters, CTV)

China reported 60,000 Covid-related deaths in the past month. The sharp rise in fatalities came after the country abandoned its zero-Covid policies and is likely an undercount because it only includes those who died in hospitals. Chinese officials said the number of patients in hospitals with Covid peaked in early January. (BBC)

Banks to charge small businesses to pay taxes. RBC and Scotiabank will require small businesses to pay a fee to a third-party service in order to pay taxes through their bank account beginning later this year. Previously both banks had offered the option to pay through Interac Online Payments, which was free. (The Globe & Mail)

💸 New inflation data drops tomorrow. Are you excited? We are. Forecasters expect that the Consumer Price Index fell (can you imagine?) in December from the previous month and rose 6.3% from the prior year. If that’s true, it will be the sixth consecutive month of inflation either falling or holding steady. Whatever the data shows, it will be a crucial factor in the Bank of Canada’s interest rate decision on January 25th.

🇯🇵 The Bank of Japan makes a key decision. Some economists think Japan’s central bank will tighten its monetary policy this week, following up on a surprise move in December to allow yields on government bonds to fluctuate more. That could add volatility to bond and currency markets (the yen is the third-most important currency).

🚨Peru’s state of emergency begins. The measure, declared over the weekend, will run for 30 days and allow the army to be used to break up protests that erupted across the country last month when President Pedro Castillo was ousted from power after trying to dissolve Congress. 42 people have died in the protests so far.

Fuel up the PJ (that’s a private jet, for those of you who missed Succession) and pack your best Patagonia vest because the World Economic Form’s (WEF) annual hobnob in Davos kicks off this week.

Catch up: For decades, Davos has been one of the premier settings for casual chit-chat among the global political and business elite.

• The conference is a chance for attendees to speak candidly about the biggest issues facing the global economy away from the prying eyes of the press. (We’re just miffed we didn’t get an invite.)
   
• 52 heads of state, 121 ministers (including Chrystia Freeland), and 19 central bank governors are expected to attend. Speakers will include U.N. Secretary-General Antonio Guterres, former U.S. Secretary of State Henry Kissinger, and… Idris Elba?

Why it matters: This year’s Davos gathering is likely to be more of a buzzkill than past summits, as a looming global recession and war dominate the agenda. 

• The WEF’s “Global Risks Report”, based on a survey of 1,200 government and business professionals, found that the vast majority of respondents expect a “constantly volatile” international situation over the next two years, featuring “multiple shocks” across economies and industries.
   
• A fifth of respondents expect “catastrophic outcomes” over the next decade.

Zoom out: Davos has traditionally been a forum to promote globalization (and address some of the challenges that go along with it), but with much of the Western world looking for ways to reduce dependence on relatively fragile global supply chains and boost domestic production of key goods, the purpose of the meeting may soon need a rethink.

📚 1.4 million. Copies of Prince Harry’s memoir “Spare” sold on its first day of publication in the US, UK, and Canada, a new record for a nonfiction book.

💨 3. How many large wind turbines Germany aims to build per day to meet its renewable energy goals by 2045.

🚔 $3.9 million. The value of assets (in USD) owned by Andrew Tate seized by Romanian authorities over the weekend—Tate, who has a large online following, has been detained on charges of human trafficking.

• Attention stock market investors: The Motley Fool’s 2023 Canadian Investor Summit is happening tomorrow! Peak subscribers get in for free – just click here to get on the guest list.*

• Check out Canadian Geographic’s newly-announced 2022 Photos of the Year.
   
• 15 TV shows to look forward to in 2023.
   
• Watch: A tour of China’s only pinball machine factory.
   
• Is there really a “best place to work”?
   
• From “quiet quitting” to “rage applying”: Why does the media keep making up words about work?

*This is sponsored content.

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