The Weekly Snapshot

“Fortune befriends the bold.” – Emily Dickinson.

Good morning. In this weekly snapshot:

• Market Updates📈💵

• Quebec Labour Unions Strikes👷

📈 Market Updates

Economic Pulse🌎:

While oil futures rose ~5% in response to fears of escalating tensions in the Middle East, US bond yields surged after the Department of Commerce released better-than-expected retail sales data. US equities rose as investors await many corporate earnings, with the Nasdaq leading indices with a 1.2% gain. However, shares of chip manufacturers including Intel and Nvidia fell after the Biden administration announced new restrictions to restrict China’s access to American-made semiconductors. Combined with a wave of negative Chinese economic data, these measures resulted in a fall in Asian stocks.

Money Moves📈:

Headlining TMT transactions was the completion of Microsoft’s long-awaited acquisition of Activision Blizzard for $69B. Representing the largest-ever acquisition in the video games industry, this deal ends Microsoft’s nearly two-year battle with global regulators. Down under, Australian collaboration software company Atlassian will buy privately held video messaging platform Loom for ~$975M. In domestic news, Canadian pension funds are weighing a potential $3B, 72% sale in Transelec, Chile’s biggest power-transmission company, while British Columbia Investment Management is teaming up with Searchlight Capital Partners to acquire fibre provider Consolidated Communications for $3.1B.

👷Quebec Labour Unions Strikes

An Unprecedented United Front

Labour unions in Quebec have come together and voted 95% in favour of a strike. Quebec’s public sector presents a united front in its fight against the government. Primary healthcare, education, and social service unions have come together to represent 420,000 public sector workers. The size of the front is unprecedented, as it is the largest front for a mandate in the last 40 years. Union members are unhappy with the current state of affairs in the public sector and demand better working conditions. The strike mandates an indefinite strike; however, the strike is not expected to begin before November as negotiations ensue.

Brewing Negotiations

Quebec labour unions are fighting for a three-year deal that adjusts income for inflation. The agreement they seek consists of a $100 payment weekly or payment increases of the CPI plus two percent, three percent, and four percent for the first, second and, third years respectively. On the contrary, Quebec has offered a net 13 percent increase over five years. This amount is comprised of a nine percent increase alongside a $ 1,000 payment in the first year and other increases that the province has amounted to a total of 13 percent.

🗣 Word on the Street

• Team Canada’s Christine Sinclair has retired

• Greta Thunberg charged with public order offense

• Israel-Hamas war updates

Authors: Simon Ing and Tomas Serrano

Senior Editor: Amyn Dehal

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