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Canadian economy grows more than expected

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Last Week’s Highlights

Canadian economy grows beyond expectations

The Canadian economy had better-than-expected growth for January and is likely to continue to do so. According to Statistics Canada, after contracting by 0.1% last December, the Canadian economy grew by 0.5% in January, higher than the 0.3% expected. These figures fuel the central bank’s concerns that inflation is still not entirely under control. “There were many indications that the economy was off to a solid start in 2023, but today’s double burst of strength is well above even the most optimistic views,” said Doug Porter, chief economist at BMO Capital Markets. “Suffice it to say that if the strength seen in the first few months of the year persists, the Bank of Canada is going to be in for a rough ride,” he added.

Meta going against all forecasts

Despite what specialists said, Meta’s shares rose in value. Benchmark analyst Mark Zgutowicz called for a halt to the stock rally. Meta cut 21,000 jobs over the past few months; although the analyst approves of these changes, he claims they will affect the company’s earnings. “Meta’s significant rally since forward earnings revisions and shares bottomed last November (following the third-quarter earnings miss) is over. It’s time to lighten the load on a misperceived safe bet in a troubled macroeconomic [environment],” Zgutowicz commented. Although Meta’s revenues have a consensus of 5% growth, the analyst expects them to fall by 2% this year because “there has been a high correlation between the company’s revenues and the number of employees,” he noted.

Coming Up This Week

MercadoLibre jumps on positive comments

MercadoLibre is one of the leading e-commerce platforms in South and Central America. The company’s shares rose 4% on Friday in response to praise from Morgan Stanley. According to the US financier, MercadoLibre’s operations are undervalued because it is not limited to financial technology. The company would have several favorable revenue streams such as advertising, which could bring in a lot. In addition, MercadoLibre also recently opened cryptocurrency trading in Chile. According to Morgan Stanley forecasts, if everything goes well for MercadoLibre including the context, the company could gain up to 40%; for that reason, its shares are given a “buy” rating.

Good news push Tesla up

It has been a busy few days for Tesla as several news items have emerged with relevance for the electric vehicle manufacturer. For starters, the company assured that the demand for its vehicles is well ahead of production, even doubling it. They also announced that the company’s CEO, Elon Musk, will have a meeting with Chinese Premier Li Qiang. Although it is not clear what topics they will discuss, there is an indication that something has to do with the tax breaks that Tesla had in 2019. To end the news from the US company, Tesla has drawbacks with its semi-electric system. There is a problem with an electronic parking brake valve module; that is, if a vehicle is parked, it could start rolling. Currently, the company is offering a new valve that in theory should fix the problem.

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NewsFlight

NewsFlight

July 8, 2024

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