Social Media Wars: Banning Foreign Apps

November 04, 2023

The Weekly Snapshot

“There are no secrets to success. It is the result of preparation, hard work and learning from failure.” – Colin Powell

Good morning. In this weekly snapshot:

  • Market Updates📈💵

  • Social Media Wars: Banning Foreign Apps📱📵

  • We Have a Winner: 2034 World Cup⚽️🏆

📈 Market Updates

Economic Pulse🌎:

In U.S. markets, the Fed held interest rates steady but left the door open to a further increase in borrowing costs. As a result, the S&P 500 and Nasdaq saw sharp gains as the Dow rallied more than 200 points. Treasury yields fell in response, signalling a prevailing sentiment that the Fed is likely finished with rate hikes this cycle. Meanwhile, new monthly GDP data indicates stagnation in the Canadian economy during August instead of growing 0.1% as expected. If GDP is found to be flat in September, as now projected, Canada will officially enter a technical recession.

Money Moves📈:

On Tuesday, the US urged a judge to block JetBlue Airways' $3.8B purchase of ultra-low-cost carrier Spirit Airlines, arguing that the acquisition would result in higher fares and fewer flights for travellers. Simultaneously, the airline forecasted a loss for the fourth quarter, and shares of JetBlue crashed to a 12-year low. In domestic news, Canadian Tire bought back a 20% stake in its financial services business from Bank of Nova Scotia for $647M. Elsewhere, fashion giant Shein acquired British online brand Missguided in an effort to diversify offerings on its popular online marketplace, a move that follows Shein’s partial acquisition of Forever 21’s operator.

📱📵Social Media Wars: Banning Foreign Apps

A Threat to Data Security and Privacy

Citing security concerns during a time of international tensions, the federal government has announced a ban on WeChat, a Chinese social media platform still used by many Chinese Canadians and Kaspersky, a Russian media application from government-issued devices. Earlier this year, the government did the same with TikTok, the popular social media platform originating from Beijing.

Despite this ban, apps like WeChat remain a prominent mode of communication for Chinese Canadians with more than 1.2 Billion users worldwide and over 1 million Canadians using the application regularly. As per Canadian law, it is still up to the discretion of individual users to make decisions over the applications they download. However, with the government highlighting the data exposure and security risk posed by the likes of WeChat, will Canadians continue to rely on the social media platforms that connect them back home?

Future of Foreign Apps in Canadian Markets

Security officials have been on high alert regarding foreign access to Canadian data after it was revealed that foreign applications were used to interfere in Canadian elections, as seen by the targeting of Canadian MP Michael Chong through WeChat.

 The social media landscape is constantly changing, with growing consumer awareness of the cybersecurity risk of foreign software and the increased frequency of data breaches. It remains to be seen what other steps security officials will recommend to combat foreign cyber risk.

⚽️🏆We Have a Winner: 2034 World Cup

Saudi Arabia’s national soccer team.

Back to the Middle East

Saudi Arabia has been selected to host the 2034 FIFA World Cup after Australia pulled out at the last minute. Saudi Arabia became the sole bidder for the spot after a joint bid between Australia, Indonesia, Singapore, and Malaysia fell through. As football's largest tournament heads back to the Middle East, so does the tournament's timeline. Due to extreme heat, the 2034 World Cup, for the second time ever, will be held in the winter.

Saudi Arabia's Sports Boom

The World Cup making its way to the Saudi Kingdom is the newest in line of sports attractions in the country. The recent success of LIV golf and Saudi pro football has created a growing market for sports investment in the country. Recently, SRG sports investment, funded by Saudi Arabia's sovereign wealth fund, has announced a 100 million dollar investment into a mixed martial arts league set to premiere in early 2024. The confirmation of the World Cup has set Saudi Arabia to continue the entertainment industry growth for at least the next ten years.

🗣 Word on the Street

Senior Editor: Amyn Dehal

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