During the holiday season we talk about the many things we are grateful for, and I will mention a couple that does not get a lot of attention.
One, is that we have a very efficient and reliable grid system that keeps us warm during the winter and connected with all our devices. The US system is not regulated as well as ours which is a reason why we will not unilaterally connect any of our systems with them. The other is a robust banking regulation system and it sure saved our financial system and many Canadians during the credit crisis. The regulators are always overly cautious and this past week they surprised the banks with tougher capital requirements. The bank with the lowest capital ratio was hit the most and soon BMO made the decision to shore up their balance sheet and raise capital. https://www.bnnbloomberg.ca/bank-of-montreal-to-raise-3-15-billion-in-offering-of-shares-1.1858609 (I always have said during my career, we are grateful in Canada that we have a strong and stable banking system)
The ESG movement is getting lots of pushback lately and Bloomberg addresses this $4 Trillion situation.
‘Fearful of missing out’ is something that effects so many investors decision making, and the G&M looks at some big name investors and pension funds that made mistakes on that with regards to FTX.
A brilliant Global Macro interview with Felix Zulauf included and he touches on so many big global themes.
A big event happening in the ‘fusion energy’ space and the G&M highlighted the news and Peter Zeihan gives his take.
Peter Zeihan also back addressing China’s Problem Child.
CBC highlights where Canada stands now on attracting students from Hong Kong and that bodes well for the west coast schools for sure.
I always like the James Bond movies and the Jason Bourne series and even in the spying field, the women are taking over as the FT explains. I also added a NY Times that highlights that the Russian Spies are everywhere in the artic and I hope Canada gives notice.
Finally, sad news about Mike Leach who passed away. I like humor and individuals that know how to get the best out of young people and Mike was brilliant at both. I started to follow him after his hilarious interview about weddings. I added that link, a tribute from ESPN and a 60 Minutes segment when he turned around the Texas Tech Football Team.
PS…a bonus addition is a new podcast from the always brilliant Mr. Marks
Sea Change – The Memo by Howard Marks https://podcasts.apple.com/ca/podcast/sea-change/id1521551570?i=1000590049055
Number 1 - Increased Canadian Capital Requirements Support Bank Credit Profiles
Read more on fitchratings.com…
Fitch views the higher capital requirement as appropriate, as it coincides with building risks related to the rapid rise in interest rates this year, including an ongoing housing market correction, declining household savings, and an anticipated economic slowdown.
Number 4 - US markets: Systemic Calamity | Felix Zulauf
In this week’s Global Macro Update, Felix and I talk about how the unstable geopolitical landscape is disrupting supply chains and setting markets up for dramatic changes… how to navigate the coming decade of roller coaster markets… the failed policies that could doom the US dollar as the world’s reserve currency (and what may replace it)… why 2024–2025 could usher in a calamity in our financial and economic systems… and much more. You can access the full transcript of this week’s interview by clicking here.
Number 5 - Could fusion energy help fight climate change?
Read more on theglobeandmail.com…
U.S. scientists announced a breakthrough on fusion energy on Tuesday, potentially a step toward one day harnessing the process that fires the sun to generate carbon-free electricity as the world struggles with climate change.
Peter Zeihan-The Fusion Breakthrough: 70 years in the making
Number 7 - Canada overtakes U.K. as destination for Hong Kong students amid mounting exodus | CBC News
Thousands of Hong Kong students are choosing to come to Canada over countries like the U.K. and Australia, with more and more of its citizens applying for study permits abroad and contributing to a mounting exodus amid China’s growing control over the region.
Number 8 - Spy Stuff
In a Wary Arctic, Norway Starts to See Russian Spies Everywhere
Other European countries are, too, blurring the line between vigilance and paranoia.
| The secret lives of MI6’s top female spies |
| “Kathy is one of four directors-general at SIS, each of whom reports to the chief, known as ‘C’. For the first time, three of them are women. They work in the most important and rapidly evolving areas of spycraft. Kathy is director of operations. Rebecca is the chief’s deputy, who oversees strategy. The most storied MI6 job of all belongs to Ada, who is the head of technology, known as ‘Q’ after James Bond’s mastermind gadgeteer. I have spent six months interviewing them about how they reached the top in a traditionally male career and trying to understand what the life of a female spy is |
Number 9 - Confidential Records Show a Saudi Golf Tour Built on Far-Fetched Assumptions
McKinsey documents suggest the Saudi league is far off-track for success. Experts say the analysis shows it was never just about profits.
Early in 2021, consultants working for Saudi Arabia’s sovereign wealth fund studied an audacious idea: The desert kingdom wanted to become the world leader in the hidebound realm of men’s professional golf.
