Sponsored by Verses AI

Rate hike pause for Canadians

As was forecasted by economists, Bank of Canada Governor Tiff Macklem decided to keep the overnight borrowing rate unchanged at 5%, following data suggesting high interest costs are finally making their way through the economy and delivering stagnant GDP figures.

Macklem pointed to signs of an alarming second quarter slowdown in China’s economic growth, with inflation across advanced economies showing signs of easing. Likewise, Canada’s economy, too, has abruptly decelerated, thanks to slowing consumption growth and housing activity, as well as negative impacts stemming from this season’s rampant wildfires.

“Year-over-year and three-month measures of core inflation are now both running at about 3.5%, indicating there has been little recent downward momentum in underlying inflation,” reads the bank’s statement. “The longer high inflation persists, the greater the risk that elevated inflation becomes entrenched, making it more difficult to restore price stability.”

You can read more on the matter here.

What’s going on?

• Mr. X And Phoenix Kiss: Who Are These Characters In Doug Ford’s Greenbelt Fiasco? (theDeepDive)

• Michigan Considers Historic Move To Remove Trump From 2024 Ballot (theDeepDive)

• Asean Vows to Refrain From Trade Curbs Amid Rice Supply Concerns (Bloomberg)

• Americans Grapple with Rising Loan Denials Amid High Interest Rates (theDeepDive)

• Bank of Canada holds rates, says it could hike further if inflation persists (Reuters)

• Toronto's $46.5-Billion Dilemma: Can a Sales Tax Save the Day? (theDeepDive)

• REMAX: Canadian Home Prices to Remain Stagnant for Remainder of 2023 (theDeepDive)

• Trump loses key ruling ahead of writer Carroll's defamation trial (Reuters)

• Doug Ford Becomes Second Premier to Urge Bank of Canada to Stop Rate Hikes (theDeepDive)

• FDIC Initiates Marketing Process for $33 Billion Signature Bank Commercial Loan Portfolio (theDeepDive)

What’s the latest?

• Canada’s Trade Deficit Narrows: Statistics Canada reports that Canada's merchandise trade deficit in July was $987 million, a significant improvement from the revised deficit of $4.9 billion in June. The improvement was primarily driven by a 5.4 percent decline in total imports, with lower shipments of gold and the B.C. port strike contributing to this decrease.

• US Services Sector Picks Up: The US services sector surprised analysts by gaining momentum in August, with the Institute for Supply Management reporting a non-manufacturing PMI of 54.5, the highest reading since February. This unexpected strength is characterized by increased new orders and businesses paying higher prices for inputs, suggesting persistent inflation pressures.

• Toronto Forever Unaffordable: A report by Desjardins economists suggests that even in a worst-case recession scenario, Toronto's housing market will remain unaffordable for many buyers. The study examined various economic scenarios, including a 1990s-style recession, and found that even in the most dire circumstances, Toronto home prices would only return to levels last seen in late 2015.

• Greenbelt Review: Ontario's new housing minister, Paul Calandra, has initiated a review of the Greenbelt and development applications after last year's process for earmarking Greenbelt land for development was found to be rushed and flawed. Calandra stated that development will continue on 14 sites removed from the Greenbelt last year while the review takes place. Policy revisions may include penalties for developers that don’t build on the land.

• Trump Found Liable: A federal judge has ruled that former President Donald Trump is civilly liable for defamatory statements he made about writer E. Jean Carroll when she accused him of raping her decades earlier. The judge's decision means that the upcoming trial will focus on determining how much Trump should pay in monetary damages for defaming Carroll.

Logan Paul Vs Dillon Danis

The stock market and stuff

• A Look At Sam Bankman-Fried’s Prison Experience (theDeepDive)

• Comcast moves up date for Hulu deal with Disney to Sept 30, 2023 (Reuters)

• Hackers Steal $41 Million from Crypto Gambling Site Stake.com (theDeepDive)

In the juniors

• First Phosphate Produces Merchant Grade Phosphoric Acid In Pilot Program (theDeepDive)

• Aston Bay Uses Excitement At Storm Copper Project To Raise Funds For Virginia Assets (theDeepDive)

• Power Nickel Hits 25 Metres Of Sulfides In 300 Metre Step Out Hole (theDeepDive)

FULL DISCLOSURE: VERSES AI is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Verses AI. The author has been compensated to cover VERSES AI on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.