Episode 137 of All the way down to Enterprise podcast
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On Feb. 2, Fb’s guardian firm suffered a plunge in its inventory value that worn out US$230 billion in worth, and the most recent signal that the tech sector has been taking a rout. By the primary three weeks of January, Shopify had misplaced US$79 billion.
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So what’s driving these firms down and what does it imply for the Canadian financial system?
This week on All the way down to Enterprise, Douglas Porter, chief economist and managing director at BMO Monetary Group weighs in.
“We at all times need to kind out the fairness market valuation in Canada, and the precise influence on the Canadian financial system,” Porter mentioned.
He mentioned that many tech firms really don’t help that many roles, both within the U.S. or in Canada, and so a plunge in inventory value could have little influence on the broader financial system. As for the rout, he pointed to the rising consensus that rates of interest are set to march larger as central banks attempt to curb inflation.
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