Monday morning briefing: Inflation skyrockets, investors shrug
This is the end of the Keystone XL pipeline. Over the past 16 years, the Gulf Coast-to-Alberta pipeline experienced many regulatory challenges and raised concern among climate change activists in both Canada and the U.S. The project came under increased pressure earlier this year when U.S. President Joe Biden pulled its permit. Out of options, TC Energy Corp. has finally pulled the plug on the project. The Alberta Government, which has a $1.3 billion stake in the project, will now try to recoup some of that investment.
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Chart of the week: Inflation skyrockets, investors shrug
U.S. inflation rose to 5.0% year-over-year in May, which was the highest year-over-year increase since 2008. The core inflation rate, which excludes more volatile food and energy prices, rose to 3.8% in May, its largest year-over-year increase since the early 90s. But investors didn’t blink an eye and pushed equity markets higher on June 10, focusing not on the overall inflation rate increase, but on its composition. Specifically, growth in consumer prices was highly concentrated in goods benefiting from easing lockdown restrictions. While consumer prices may have more growth ahead, this report eased concerns that inflation would stall the recovery. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Hedge funds post strong returns in 2021: Hedge funds traverse volatility and inflation trends with biggest Jan-to-May returns in 25 years
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News and notes (Canada)
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