Click here for the PDF: The Weekly Beacon – November 3 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

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This weeks issue: Canada recession, Economic data, Recession fears, Gary Gensler, SEC, AI and equity markets, WeWork bankruptcy, WeWork rug pull, WeWork financials, Chapter 11 bankruptcy, CPI, Inflation rates, 1990s inflation, Corporate America, China demand issues, Canada Goose Holdings, Yum China, Estee Lauder earnings, Alimentation Couche-Tard, ATD financials, P/E ratios, Offshore wind energy, Orsted, Wind projects.


A recession up north…

The Great White North looks to have a big problem on their hands……a recession.

The Canadian economy is contracting, and Justin Trudeau’s government looks like it has yet another problem on its hands. Statistics Canada released its August GDP numbers on Tuesday along with preliminary third-quarter numbers and the data appears to show the Canadian economy in a recession. The three straight months of flat output since July point to a decline of 0.1% annualized for the quarter, following a decrease of 0.2% over the period from April to June. Although third-quarter data will likely be revised, the economic growth is much slower than the expected 0.8% growth rate forecast made by the Bank of Canada just a few months ago.

Statistics Canada also reported that GDP was unchanged in August, missing the median street estimate of 0.1%. Bloomberg surveyed several economists in this study.

Tuesday’s GDP data supports the Bank of Canada’s view that interest rate increases are working through the economy, slowing consumer demand and inflation down.

Governor Tiff Macklem and his officials held borrowing costs at 5% for the second straight meeting last week.


Click here for the PDF: The Weekly Beacon – November 3 2023