The United States inflation report on Wednesday has investors on edge, where they should just take off their jackets and stay a while. The cost of the ongoing riots in Britain is already being pegged in the tens of millions, just as the country goes on an economic road show to attract investment. And as Canadian Olympians return home to a proud nation, we look at the small price we pay for unquantifiable glory.
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‘The shock of the normal’
Even if investors have shown signs of calm and possibly even wisdom after last week’s nosedive, a weak inflation report from the United States on Wednesday could test the market’s newfound courage.
Concerns over a recession, growing trepidation over tech stocks and a surprise decision by the Bank of Japan to raise its interest rate made for a fast-growing wave of worry. But that wave largely receded before you could say “yen carry trade,” and many are suggesting reports of a recession are deeply exaggerated.
Still, nervous investors are hypersensitive to whatever economic data floats by, Ian McGugan writes. And that makes its own kind of sense: “Call it the shock of the normal.”
Also in the news:
- Property bothers: Residential property developers are facing rising insolvencies as they struggle with higher borrowing and construction costs – and industry experts warn the trend is likely to worsen as interest expenses remain elevated.
- Online, offline: Canada’s financial intelligence unit is still working to bring all of its services back online more than five months after a cyberattack, creating headaches for some businesses and sparking concerns about gaps in the country’s anti-money laundering regime.
- Riot reckoning: British officials expect the cost of damages to homes and businesses to be in the tens of millions as violent riots across the country show signs of slowing. As King Charles called for “mutual respect and understanding,” the government said it is considering tougher regulations for social media companies.
In focus
Canada at the Olympics: Earnings report
Canadian Olympians are coming home rich with experience and pride – if not necessarily the money they need to sustain a life dedicated to their sport.
A donation this year by Canadian health-care technology entrepreneur Sanjay Malaviya made a gold medal worth $25,000, silver $20,000 and bronze $15,000 to athletes – an increase of $5,000 per medal that was already being awarded by the Canadian Olympic Committee.
For comparison’s sake, Malaysia, Morocco and Serbia award their athletes north of US$200,000 and at least six other countries dole out more than US$100,000.
Only Olympi-Fans
Small wonder that bronze-medal pole vaulter Alysha Newman and other Olympians are turning to OnlyFans. There is certainly no shame in that, Erin Gee writes.
But the fact that she and so many other athletes have side hustles shames us as a country: “Athletes spread a country’s name abroad, and they uplift their compatriots back home. It’s a service to their nation. That has value,” she writes. “At home, we fail to provide athletes with the support they need, even as we expect them to bring home the gold on the world stage.”
- The Olympics, the world’s biggest sporting stage, bring in billions of dollars in TV rights, ticket sales and sponsorship, but critics say athletes are mostly fending for themselves financially.
I melt with you
Failing all else, they could all band together to melt their metals down.
- Nine gold medals (made mostly of silver), seven silvers, and 11 bronze would fetch about $9,478.78 in the current marketplace.
- Assuming a Canadian inclination toward equal distribution, that’s about $351.07 for each medal winner – enough, maybe, for a decent night out in Toronto.
Adieu Paris! You were your genuine self and the Olympic Games were better for it, Cathal Kelly writes.
In photos: A look at every Canadian medal winner at the Paris Olympics, among Canada’s most successful Summer Games.
Charted
Sell-offs like the one last week are the rule rather than the exception, Tim Shufelt writes. History shows that the average year will have about three pullbacks of 5 per cent or more, and one 10-per-cent correction, according to a Bank of America strategy note.
The outlook
On our radar and reading list
Today: Canada reports building permits for June. Earnings include Barrick Gold, Sun Life Financial, Ballard and Extendicare.
This week: The U.S. consumer price index report on Wednesday will draw a lot of attention as jittery investors second-guess the Federal Reserve’s timing on taming inflation.
‘On the brink’ Airlines are fleeing small cities, cutting key links to the rest of the country.
Passings: Tech leaders mourn Susan Wojcicki, a pioneering tech executive who helped shape Google and YouTube.
ICYMI: Loblaw’s health care empire is growing. But can it earn the trust of Canadian patients?
Morning markets
Global markets started the week cautiously, as investors prepared for U.S. inflation data to gauge the Federal Reserve’s monetary policy path. Wall Street futures were muted while TSX futures were flat.
Overseas, the pan-European STOXX 600 added 0.08 per cent in morning trading. Britain’s FTSE 100 gained 0.54 per cent, Germany’s DAX rose 0.09 per cent and France’s CAC 40 gave back 0.1 per cent.
In Asia, Hong Kong’s Hang Seng closed 0.13 per cent higher while Japan’s market was closed for a holiday.
The Canadian dollar traded at 72.87 U.S. cents.