The Bank of Canada stood pat for the second time in a row. There are enough signs of economic weakness. And that economic weakness is likely to continue and accelerate. While inflation has been sticky, it’s also very likely that weakness will contribute to further downward pressure on inflation. The real estate sector appears ready […]
Preparing for war and hoping for peace on the Sunday Reads.
There is no avoiding the crisis and tragedy of the Israel-Hamas war. While nothing can begin to match the humanitarian concerns, we will address the financial, economic and global risks. Preparing for war is preparing for risk and uncertainty whether that be a humanitarian crisis or a financial calamity. The risks and events can commingle […]
Rates are on hold as China sinks on the Sunday Reads.
Last week I reported on the negative quarter of GDP growth for Canada. I also suggested that the Bank of Canada would hold rates. That was an easy call you might say, and as expected the overnight rate was held at 5%. That’s a slight sigh of relief perhaps for mortgage holders. But the bond […]
The recession watch and more bank earnings on the Sunday Reads.
The past week offered more Canadian bank earnings. As expected we saw more softness, but the banks are hanging in there. I’ve updated last week’s Sunday Reads to include the recent earnings reports. And the big news of the week might have been the unexpected second quarter of negative growth for the Canadian economy. Is […]
Inflation is sticky, while oil and gas stocks pump the free cash flow on the Sunday Reads.
We had an inflation reading in Canada. It was a good news / bad news report. There are encouraging signs, inflation is moving in the right direction, but it is also sticky and still above target. I am of the opinion that there is no 2% inflation target in Canada and the U.S. That 2% […]
Was inflation transitory? Plus, the Sunday Reads.
Inflation is coming down in Canada and the U.S. And one can argue that the rate hikes have had little effect. After all, Canadians and Americans are spending money, and employment is strong. The economy has been very resilient. Perhaps inflation was transitory after all, caused by the pandemic and the invasion of Ukraine. This […]