September 28th, 2022

The financial information you need at your fingertips.

Welcome Good morning. We hope you are all as interested and confused as we are in present day capital markets. As we make our way out of the pandemic, the economy and markets are starting to look a little scary. At the end of the day, the markets affect us all; might as well read what follows! Our student-run bi-weekly updates will follow all the twists and turns of financial markets, the economy, and other tid-bits of information that will help you keep up with current events.

Capital Markets:

FedEx took on a 22% drop in its stock price on Friday after releasing their annual earnings forecast, wow. What’s interesting about FedEx is it can be used as an indicator for economic conditions. Think about it, if they’re performing well, it may indicate that consumers have a little extra to spend online shopping (businesses are doing well) and vice versa. Interesting… Amazon on an acquisition rampage. The company recently just purchased Cloostermans, a warehouse robotics firm marking its 5th major acquisition this year. The S&P 500 and NASDAQ had their worst week since June this year. Twitter shareholders have finally accepted Elon Musk's 44 billion dollar bid to acquire the company. This deal also entails Elon taking the company private, and Twitter taking Elon to court in late October for breaching their agreement.

Fixed income:

The housing market fall across Canada is not being felt evenly across the country. The CREA shows that the price of a house fell 3.9% since August 2021. Some regions are only reporting dips while others are in a complete free-fall.

Commodities and World Currencies: Header The Bank of Canada is losing money for the first time ever on rising rates. The Bank of Canada started to use quantitative easing during the Covid-19 pandemic resulting in a surplus of money equivalent to hundreds of billions of dollars to help keep interest rates low and to increase the capacity for banks to lend money. A consequence of that policy is that the Bank of Canada is on track to lose money for the first time. White House Recommends Creating a Digital Dollar. The Biden administration has been speaking about digital currency for the U.S for a while know, wanting to promote themselves as financial leaders. This past week, the government released a new list of regulations in regards to digital assets such as Crypto currencies and NFTs. The government specified they wanted to make the transactions of these assets was easier and more protected against fraud. Inflation is being felt everywhere. America’s annual inflation rate went down in August to 8.3% from 8.5% in July. The core inflation, which does not include volatile energy and food prices, rose sharply. Average electricity bills were up by 15.8% from the previous year representing the biggest spike since 1981. Natural gas rose by 33% on a year over year basis.

Euro falls further against the US dollar due to the current gas supply conditions in the European continent. Being 40% dependant on Russia for oil is seriously affecting the area and causing fears of recession.

grab n' go: further reads Indian Billionaire Gautam Adani Scales New Heights To Become The World’s Second-Richest Person. Friday, Gautam Adani became the world's second-richest person with a net worth of $155.5 billion. . Adani surpassed Jeff Bezos who recently lost 1.49% putting him at an estimated net worth of $149.7 billion. Elon Musk remains the world’s richest person with a net worth of $273.5 billion. Ferrari just revealed its first-ever 4-door model, a high-riding and powerful sports car called the Purosangue. Ferrari’s new four-door vehicle is the best sounding SUV we've all been waiting for. The new Purosangue is powered by a 715-horsepower 6.5L V-12 engine. The Purosangue is Ferrari’s first-ever production four-door model and its able to reach 0-100km/h in 3.3 seconds. With a top speed of 310km/h, you can expect a price tag of around 530 000$