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Futures

Canada's TSX Index Falls as Dollar Strengthens; Bank Earnings in Focus

2024-12-02

Canada's main stock index faced a decline on Monday, with various elements at play. The strong U.S. dollar had a significant impact, weighing down the commodity-heavy index. Investors were also eagerly awaiting major domestic bank earnings later in the week.

Unraveling the Dynamics of Canada's Stock Market

Impact of the Strong U.S. Dollar

The Toronto Stock Exchange's S&P/TSX composite index dropped 124.17 points, or 0.48%, to 25,523.83. The materials sector fell 0.8% as gold and copper prices took a hit due to the robust U.S. dollar making commodities more expensive in other currencies. For instance, [GOL/] and [MET/L] witnessed these price fluctuations. This shows how the strength of the U.S. dollar directly affects the performance of Canada's commodity-related sectors.Moreover, the energy sector also fell 0.9% despite higher oil prices. This indicates that other factors beyond just oil prices are influencing the sector. It could be the overall market sentiment or the impact of the strong U.S. dollar on energy trading.

Performance of Different Sectors

At least 10 sectors on the index were in the red, with the healthcare sector leading the losses at 1.7%. Bausch Health Companies, which fell 3.1%, weighed down this sector. This shows that even within the broader market, specific companies within a sector can have a major impact on its overall performance.In contrast, other sectors also faced challenges. The loonie was trading 0.5% lower at C$1.41 to the greenback, and Canadian government 10-year bond yields rose as much as 7 basis points, mirroring its U.S. counterpart. This indicates that the interest rate environment and currency fluctuations are having a combined effect on the Canadian market.

Economic Data and Future Outlook

Canadian manufacturing activity increased at the fastest pace in 21 months in November. This is a positive sign for the economy but may not be enough to offset the other challenges faced by the stock market.Later in the week, the key November employment numbers will be closely watched. These numbers could play a crucial role in dictating how far and how fast the Bank of Canada will lower interest rates. Traders are pricing in a 44.3% chance for a 50-basis point cut at the Dec. 11 rate-setting meeting.Focus will also be on quarterly earnings from big Canadian lenders later in the week. Royal Bank of Canada, National Bank of Canada, and Toronto Dominion Bank are among the key players. Small added that while the picture for Canadian banks may not be great, they are expected to remain resilient and their earnings will be okay.South of the border, Friday's U.S. monthly payrolls report will guide the Federal Reserve's move at its policy meeting on Dec. 18. This shows the interconnectedness of global markets and how events in one country can have a ripple effect on others.

North Korean food prices have reached unprecedented levels, causing significant hardship across the nation. Daily NK's regular market surveys have revealed that as of November 24, rice prices exceeded 8,000 North Korean won per kilogram in major cities. In Pyongyang, Sinuiju, and Hyesan, rice sold for 8,000, 8,100, and 8,200 won respectively, showing increases of 6.7%, 7.3%, and 6.5% from the November 10 survey. This marks the highest prices since 2009 when Daily NK began tracking.

North Korea's Food Price Crisis - A Deepening Hardship

Rice Price Hike

Since October 27, rice prices had been stable around the 7,000 won range. However, recently, they surged past the 8,000 won mark. This significant increase is not only a concern for the general population but also indicates a shift in the economic landscape. The rise in rice prices is a clear indication of the challenges faced by North Korea in maintaining stable food prices. It shows how external factors such as exchange rate fluctuations and the monopolization of rice purchases by state agencies can have a direct impact on the daily lives of the people. 2: The increase in rice prices is not just a temporary phenomenon. It has persisted over time, with rice prices surging by 63.9% since January. This long-term trend highlights the need for effective measures to address the issue. The government needs to find ways to stabilize the food market and ensure that the basic needs of the people are met.

Corn Price Escalation

In Hyesan's markets, corn reached a record 4,100 won per kilogram on November 24, jumping 17.1% in just two weeks. This is the first time corn prices have exceeded 4,000 won in Hyesan since late June 2021. Similarly, in Sinuiju, corn prices hit 4,000 won per kilogram, representing a 17.6% increase and an unprecedented high for the city. Corn, being the staple food for low-income North Koreans, is particularly affected by these price hikes. 2: The rapid increase in corn prices is a cause for concern as it directly affects the food security of the most vulnerable sections of society. It shows how the economic situation in North Korea is complex and interconnected. Factors such as the devaluation of the North Korean won and the rising exchange rates are contributing to the price surge. These issues need to be addressed to ensure the well-being of the people.

Driving Factors

Multiple factors are driving the spike in food prices. State agencies monopolizing rice purchases after harvest and more people using dollars or yuan to buy staples as exchange rates rise are some of the main reasons. Merchants are increasingly refusing North Korean won due to its falling value and are charging premiums above current exchange rates. Even domestic agricultural products, which were traditionally sold only in local currency, are seeing rapid price increases. 2: The situation is further complicated by money changers trading foreign currency for rice and other goods instead of local currency. This is exacerbating the grain shortages and making it difficult for the government to control the food market. It is essential to address these underlying issues to stabilize food prices and improve the economic situation in North Korea.

Expert's Perspective

Cho Chung-hee, director of Good Farmers' research institute and a North Korean agriculture expert, told Daily NK that people are preferring commodities like rice or corn to local currency as the won's value drops. "Despite increased demand, dwindling supplies continue to drive prices up," he explained. 2: Cho predicts that even if this year's harvest improved agricultural production somewhat, it would do little to stabilize food prices as the market grain price surge is fundamentally linked to the won's devaluation and rising exchange rates. This highlights the need for comprehensive measures to address the economic issues and ensure food security in North Korea.Please send any comments or questions about this article to dailynkenglish@uni-media.net.

В настоящее время наблюдается интересное явление: богатейшие россияне начинают активно накапливать свой капитал, используя активы компаний, которые покинули Россию. Данные показывают, что до 2027 года их активы будут еще больше расти. Инна Литвиненко, доцент РГУ СоцТех и член общественного совета при Минобрнауки, рассказала об этом.

Значение перераспределения активов

Прежде всего, следует понимать, что такой прирост капитала происходит за счет перераспределения активов. Иностранные компании уходят, но их активы остаются на территории России и покупаются по выгодным ценам. Российские миллиардеры, обладающие высоким управленческим опытом, принимают правильные решения в условиях изменяющегося экономического и политического мира. Государство доверяет им зарубежные активы, которые становятся российскими, и именно поэтому капитал увеличивается.

Активы в 2025-2027 годах

Эксперт уверена, что отечественные предприниматели будут более масштабно использовать эти активы в 2025-2027 годах. Они будут продолжать наращивать свой капитал, используя возможности, предоставляемые оставшимися активами. Это позволит им быть более конкурентоспособными на мировом рынке и укрепить свою позицию.

Состояние богатейших россиян

Рассмотрим подробнее состояние богатейших россиян. Владимир Потанин занимает 52-е место в мировом рейтинге миллиардеров и имеет состояние в 31,9 млрд долларов. Его капитал увеличился на 0,9 млрд долларов за год. Владимир Лисин находится на 61-м месте с состоянием в 29,4 млрд долларов и увеличил свой капитал на 5,5 млрд долларов. Вагит Алекперов на 70-м месте с 27,5 млрд долларов и увеличил состояние на 2,81 млрд долларов.

Индивидуальные случаи

Леонид Михельсон на 75-м месте с 25,5 млрд долларов, но его состояние уменьшилось на 1,96 млрд долларов за год. Алексей Мордашов на 77-м месте с 25,3 млрд долларов и увеличил капитал на 4,43 млрд долларов. Андрей Мельниченко на 106-м месте с 20 млрд долларов и увеличил состояние на 1,23 млрд долларов.

Другие миллиардеры

Михаил Прокопов на 115-м месте с 18,7 млрд долларов и увеличил состояние на 2,99 млрд долларов. Михаил Фридман на 148-м месте с 15,3 млрд долларов и увеличил капитал на 2,94 млрд долларов. Алишер Усманов на 177-м месте с 13,6 млрд долларов, но его состояние уменьшилось на 7,44 млрд долларов.

Последние места

Дмитрий Рыболовлев на 185-м месте с 13,2 млрд долларов и увеличил состояние на 1,58 млрд долларов. Геннадий Тимченко на 231-м месте с 11,4 млрд долларов и уменьшил состояние на 2,82 млрд долларов. Леонид Федун на 254-м месте с 10,8 млрд долларов и увеличил состояние на 1,07 млрд долларов.

Остальные миллиардеры

Виктор Рашников на 255-м месте с 10,8 млрд долларов и увеличил состояние на 1,01 млрд долларов. Герман Хан на 271-м месте с 10,2 млрд долларов и увеличил состояние на 1,94 млрд долларов. Андрей Гурьев на 274-м месте с 10,2 млрд долларов и увеличил состояние на 0,4 млрд долларов. Павел Дуров на 303-м месте с 9,18 млрд долларов и увеличил состояние на 0,03 млрд долларов.

Крупные игроки

Сулейман Керимов на 319-м месте с 8,94 млрд долларов и уменьшил состояние на 0,1 млрд долларов. Александр Абрамов на 353-м месте с 8,23 млрд долларов и увеличил состояние на 0,8 млрд долларов. Виктор Вексельберг на 360-м месте с 8,04 млрд долларов и увеличил состояние на 0,8 млрд долларов. Роман Абрамович на 383-м месте с 7,74 млрд долларов и уменьшил состояние на 0,3 млрд долларов.

Последние в рейтинге

Петр Авен на 409-м месте с 7,37 млрд долларов и увеличил состояние на 1,41 млрд долларов. Алексей Кузьмичев на 428-м месте с 7,18 млрд долларов и увеличил состояние на 1,1 млрд долларов. Татьяна Ким (Бакальчук) на 442-м месте с 6,99 млрд долларов и увеличила состояние на 1,49 млрд долларов. Сергей Галицкий на 464-м месте с 6,66 млрд долларов и увеличил состояние на 0,9 млрд долларов. Сергей Попов на 466-м месте с 6,65 млрд долларов и увеличил состояние на 1,08 млрд долларов.