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Canada’s Economy at a Glance
Economics Society News, Events, and Articles
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News and Noteworthy
Canada’s No. 2 pension fund Caisse sees opportunities in battered bond market
Canada’s second-largest pension fund Caisse de dépôt et placement du Québec sees opportunities in global fixed-income assets after the recent sell-off. Caisse expects the global markets to stabilize in the first half of 2023. Caisse also sees potential in private credit, where non-banking institutions provide loans to companies. With the continued push into global fixed-income markets, where yields have nearly doubled from 4% to 7% last year in some cases, Caisse is spearheading a very strategic approach heading into 2023. Read more.
Canada recession may be ‘necessary evil’ as big hike expected from central bank
As recession fears worsen in Canada, the Bank of Canada is likely to announce a supersized increase in interest rates after data showed underlying inflation was persistent despite aggressive tightening measures. Anticipating a 75-basis point move after the Bank of Canada meets on October 26 will take its policy rate to a 14-year high of 4.0%. Some believe that the BoC aims to restore credibility and bring inflation lower and a recession is just a necessary component of that goal. Read more.
Cryptocurrency service provider agrees to return $17 million to digital lender Celsius as it reorganizes in bankruptcy
Crypto service provider Prime Trust agreed on Thursday to return $17 million to Celsius that was allegedly withheld just as digital currencies hit their first bottom last year. Prime Trust “refused to fulfill its obligation” by transferring the $17 million in crypto assets upon the dissolution of the contract, according to the lawsuit filed by Celsius against Prime Trust. Read more.
Bank of Canada rate hikes: Economists respond to new inflation data
With the latest inflation data showing no signs of a substantial cool-down, economists are forecasting the Bank of Canada will continue its reign of aggressive rate hikes, and some predict a “technical recession” during the first half of 2023. Data released by Statistics Canada on Wednesday indicates that the consumer price index (CPI) is up 6.9 percent year-over-year in September, despite economists previously anticipating a mere 6.7 percent increase. In an interview with BNN Bloomberg on Tuesday, Jean-Francois Perrault, chief economist at Scotiabank, said “there’s a limit to how much [the Canadian economy] can withstand.” Read more.
Truss quits, but UK’s political and economic turmoil persist
British Prime Minister Liz Truss quit Thursday after a tumultuous and historically brief term marred by economic policies that roiled financial markets and a rebellion in her political party that obliterated her authority. After just 45 days in office, Truss became the third Conservative prime minister to be toppled in as many years, and she will go down as the shortest-serving leader in British history. Her resignation extends the instability that has shaken Britain since it broke off from the European Union and leaves its leadership in limbo as the country faces a cost-of-living crisis and looming recession. Read more.
Alberta to weather ‘rough economic waters’ in 2023: economic outlook
Alberta is expected to ride out “rough economic waters” on the horizon, according to Calgary Economic Development’s 2023 economic. And according to Rob Roach, ATB Financial’s deputy chief economist, “there’s a lot of great things going on in Calgary and in Alberta economically.” ATB Financial forecasts Alberta’s 2022 GDP growth will be 5.0 percent and dip to approximately 3.0 percent next year. Commodity prices are buoying much of this province’s positive growth next year. Read more.