What You Need To Know This Week — July 6th, 2019
What You Need To Know This Week
A weekly recap to keep you informed on the most important events this week impacting markets, business, tech and the global economy.
DONALD TRUMP HALTS ADDITIONAL CHINA TARIFFS AS LEADERS SEEK TO DE-ESCALATE TRADE WAR
In a series of tweets on Saturday, President Trump stated that he had a “great meeting with President Xi of China” and he agreed to not follow through with the previously threatened increase in tariffs on Chinese goods as the two countries continue to negotiate. The market reacted favourably to the trade truce, with U.S. equity indices notching new all-time highs.
GROUP MACH WITHDRAWS $14.00 PER SHARE OFFER FOR TRANSAT
Shares of Transat fell -8% on the news that would-be interloper withdrew its $14.00 per share offer for the airline and travel company. The next step for Transat shareholders is to vote on the friendly $13.00 offer from Air Canada, which is facing resistance from some Transat shareholders.
CANOPY GROWTH FOUNDER BRUCE LINTON FIRED AS CEO
Leading cannabis company Canopy Growth terminated industry-cheerleader Bruce Linton as its CEO amidst increasing operating losses at the company. The decision to fire Linton was driven by controlling shareholder Constellation Brands, who invested $4 billion in Canopy Growth less than a year ago.
LOONIE HITS 8-MONTH HIGH AS CANADA SWINGS TO TRADE SURPLUS
The Canadian dollar hit its highest level in 8 months measured against the U.S. dollar as data showed that Canada booked an unexpected trade surplus in May. Canada posted a $762 million trade surplus for the month versus expectations of a $1.5 billion deficit.
YIELDS ON EUROPEAN BONDS HIT NEW LOWS AS CHRISTINE LAGARDE NOMINATED TO LEAD THE ECB
Christine Lagarde, the current managing director of the International Monetary Fund, was nominated to become the next president of the European Central Bank. The FTSE 100 closed up 0.7% while 2-year bond yields hit fresh new lows as the market expects that Lagarde would implement a fresh stimulus package to boost the European economy.
Recommended Articles, Podcasts, Books and Tweets
Listen to former World Series of Poker champion and author Annie Duke discuss how to improve decision making to boost your odds of future success in life on The Drive podcast.
A profile on quant hedge fund firm Two Sigma. “Two Sigma sets a continuing high bar for standards in building a technology firm that is reinventing investment management”.
The current U.S. economic expansion became the longest in history as it hit its 121st consecutive month of growth.
Shares in online luxury goods reseller The RealReal jumped 40% in its IPO.
A profile of Jeff Jordan, the venture capitalist who backed Airbnb and Pinterest.
An alternative analysis that looks at why company earnings are systematically overstated in The Earnings Mirage: Why Corporate Profits are Overstated and What It Means for Investors.
Factor investing in fixed income: ‘using factors such as value and momentum to pick these securities provided “consistently higher” returns over traditional bond market benchmark.’
U.S. payrolls rose by 224,000 in June, higher than economists expectations for 160,000 jobs.
-The Accelerate Team
