October 24th, 2022

Welcome UK PM loses to 60p head of lettuce from Tesco in blond wig. Lettuce hope the 3rd time's the charm...

On a spookier note, you might want to keep your Jack'o'Lanterns unlit. Candy prices (sadly) did not dodge inflation: Skittles and Starburst both jump over 35% from last year.

Capital Markets: 100% chance of a US recession?

This past week, two very different things happened.

1. Bloomberg forecasted a 100% chance of a US recession in the next 12 months

2. NASDAQ, S&P, and the Dow had their best week since June.

Investor's bullish attitudes rose as new Wall Street Journal reports come out that the Fed perhaps backing off aggressive rate-hikes later this year. Bank of America CEO describes how they are not seeing signs of recession as transaction volume jumped 10% in September. NASDAQ Inc. Has stopped 4 Chinese IPO in its tracks to investigate short-lived rallies. Instacart, the grocery delivery app has delayed it's highly anticipated IPO into 2023 due to current market conditions. Bad news for the majority of Canada's population: Ontario, Quebec and BC to be hard hit by high household debt, real estate value downturns and unfavourable labor conditions in 2024.

Is Elon Musk trying to “clean house” over at Twitter? That is what a report on Thursday by the Washington Post Suggested. After months of negotiations, a deal that everyone thought would never happen might actually happen this week. Behind closed doors, negotiations have been going on between Twitter and Elon Musk's legal team for months, from which we should hear news by October 28th, the final verdict date granted by a Delaware judge, otherwise, a trial will start in November.

Fixed income: Another day, another yield curve.

On Tuesday, the 3-month rate rose above the 10-year rate for the first time since before the pandemic further inverting the U.S. yield curve. Historically, an inversion of the yield curve strong indicators of an upcoming recession.

Unprecedented fall in UK bond prices and surge in yields take UK bank executives by surprise. Expert advice on fixed income: three quarters of respondents don't care. RBC expands line of fixed incomes ETFs through iShares. IShares mid 2022 investor guide: on embracing volatility and living with inflation.

Is the housing market heading toward a crash? This is the question many people have been asking themselves for the past few months. The Covid-19 Pandemic caused interest rates to tumble down to record low levels. With people locked inside their homes and supply chains being significantly disrupted, this led to one of the fastest demand growth in the housing market in 2020-2021. Now that the upcoming interest rate increase is looming around the corner and inflation seems unstoppable, prices for real estate are starting to fall. According to the Economist, Canada has seen an 8% decrease in the real estate market since February of 2022 alone. With that being said, supply chain issues are still present creating a supply-demand imbalance in the market. Many experts suggest that will be the reason why prices stay where they are. Another factor that may reduce the chance of a potential crash is that nowadays, lending standards are much more strict and controlled, a mistake that was learned the hard way during the 2008 housing bubble. Having more rigorous standards for lending money means borrowers are less likely to default on their mortgages.

Commodities and World Currencies: International tensions rise Biden and Saudi tensions rise as the current fuel crisis continues, along with the midterm elections around the corner. Saudi Arabia and China met on Friday to discuss cooperation in the global oil market. Furthermore, Saudi has continued with their global oil supply cuts of 2 millions barrels a day. Germany has been through this rabbit hole before. With Germany’s goal of phasing out all coal-generated electricity by 2038, the country had aggressively stopped supporting the new development of these facilities and closed existing ones. Now that the world is facing supply issues from the war in Ukraine with Russia, Germany opened back the coal plants and over 30% of the country's electricity relies on 33 million tonnes of coal imported from the USA.

grab n' go: further reads What CEOs Are Saying: The Fed ‘Should Look Out the Front Windshield’ $70 million almost left unclaimed Gift card economics Sustainability Academy Struggling to keep it together till student success week? Bishops has got you covered. BU students can contact Empower Me Mental Health and Wellness Support 24 hours a day, 7 days a week, 365 days a year at 1-833-628-5589.