Dear valued client,
Encouraging Canadian inflation numbers were released on Tuesday, despite the Bank of Canada pausing its interest rate campaign. Statistics Canada reported a March CPI reading of 4.3% (compared to 5.2% in Feb. and 5.9% in Jan.). This is the lowest inflation has been in Canada since August 2021. The relief is most evident in lowered energy prices, while higher mortgage rates and grocery prices are still squeezing Canadians’ monthly budgets.
Q1 earnings season for corporate America is in full swing as a number of notable companies posted their numbers;
1. Investment banks: Morgan Stanley and Goldman Sachs posted underwhelming results. With a slower economy, there’s been a deal-making lull as Morgan Stanley’s Q1 profits dropped 19% while Goldman’s fell 18%.
2. Netflix: it was exactly one year ago that the steaming service announced it had lost subscribers for the first time in 10 years, leading to a 35% stock drop the following day. Though the stock has climbed back somewhat since then, the streamer’s financial strength is still on shaky ground with 500,000 fewer subscribers than expected at this point. Also, their program to limit password sharing won’t be rolled out for another few months.
3. Tesla: after cutting prices on its cars six times this year, Tesla reported a dent in their Q1 profits, down 24% compared to the same period last year. With competition in the EV space heating up, the company said it is sticking with its plan to sell more cars for less.
The largest company in the world recently opened stores in the (soon to be) most populous country in the world. Apple CEO Tim Cook was in Mumbai and Delhi this week to cut the ribbon of enormous brick-and-mortar Apple Stores. Though the expensive iPhone is not the phone of choice for most Indians, sales have increased by almost 50% over the past year in the area. India is not just becoming a bigger consumer of Apple products, it’s also making them. Apple’s main manufacturing partner, Foxconn, recently invested $700 million in an Indian manufacturing facility.
“Everywhere man blames nature and fate, yet his fate is mostly but the echo of his character and passions, his mistakes and weaknesses.” – Democritus
Have a terrific weekend,
PW
