Dear valued client,
The Bank of Canada cut interest rates this week and markets responded positively. Rates were reduced for the first time in four years, down from 5% to 4.75%. This decision marks a turning point after rapid rate hikes and significant inflation. Governor Tiff Macklem cited easing inflation as the reason for the cut, suggesting monetary policy no longer needs to be as restrictive. While the immediate impact on monthly payments for mortgages and loans may be minimal, this move is expected to initiate a cycle of further rate reductions, potentially revitalizing the stagnating Canadian real estate market and providing relief to borrowers and homeowners.
While the economic story in Canada was positive this week, the political story consisted of revelations that some Canadian federal politicians are collaborating with foreign governments, specifically India and China, to advance their own interests – according to a report by the National Security and Intelligence Committee of Parliamentarians. The report indicates that these politicians may be engaging in illegal behavior by sharing privileged information and accepting money from foreign entities. Despite the severity of these allegations, the report does not identify the specific politicians involved. Deputy Prime Minister Chrystia Freeland announced that the Liberal Party would conduct an internal follow-up and Public Safety Minister Dominic LeBlanc assured Canadians that authorities are addressing the issue, but is not providing any specifics on potential prosecutions. The Conservative Party has demanded full disclosure of the involved politicians’ identities.
As the conflict in Gaza enters its 9th month, several protests have made the news, especially those on college campuses across North America. U.S. intelligence recently decided to probe further into the financial sources of these protests, encampments, and blockades. A Congressional committee has requested information from National Students for Justice in Palestine (NSJP), linked to Canadian group Solidarity for Palestinian Human Rights (SPHR), which has been involved in controversial actions at McGill University such as blockading the Montreal Holocaust Museum and targeting campus buildings. These investigations reveal that NSJP is backed by American Muslims for Palestine, with alleged connections to Hamas (and therefore Iran). Time will tell whether or not those pouring oil on the fire of this decades-long conflict with the goal of sowing division and discord will be met with appropriate repercussions.
Claudia Sheinbaum has been elected as Mexico’s first female president. Winning in a landslide, she will be the first woman to lead Mexico in its 200-year history as a republic. Sheinbaum plans to build on the social welfare policies of her mentor, outgoing President Andrés Manuel López Obrador, and address the rising issue of organized crime. This election cycle was the most violent in Mexico’s modern history, with thirty-eight candidates murdered.
“The soul attracts that which it loves, and also that which it fears; it reaches the height of its cherished aspirations; it falls to the level of its unchastened desires – and circumstances are the means by which the soul receives its own.” – James Allen
Have a terrific weekend,
PW
