The price of West Texas Intermediate crude went up as much as 4.8% this morning in hopes that OPEC+ will agree to a big cut in production when they meet this week in Vienna. Our partners at Bloomberg News say that the cartel and its allies will talk about cutting their output quotas by more than one million barrels per day at the meeting on Wednesday. This is because WTI has fallen by about a third since its peak in March, and rate hikes by central banks are making people worry about a recession.
Credit Suisse is in trouble.
This is by far the most unsettling story going around. This morning, Credit Suisse shares fell to a new all-time low. For some, this brings back memories of 2008 and 2009. Its CEO has been trying to calm fears about the bank’s capital levels, but he has also said that the bank is in a “critical moment.” Aside from the falling price of its shares, the market’s fear can also be seen in the prices of credit default swaps. Right now, the big question might be whether or not Credit Suisse can wait until Oct. 27 to show its plan for reorganizing.
BACKTRACKS OF UK CHANCELLOR
So much for the plan of the United Kingdom to cut taxes for its top earners. “It is clear that getting rid of the 45% tax rate has become a distraction,” said Chancellor Kwasi Kwarteng today when he announced the change of heart on Twitter. On the currency market, the British pound was up a full cent against the U.S. dollar at one point before giving up some of its gains. The rest of the chancellor’s big tax changes, which caused market chaos and led the Bank of England to step in, are still in effect.
The MNP consumer debt index comes out every three months. If you’re the type to look at the glass as half full, you might find comfort in the fact that the number of people who said they were within $200 of going bankrupt dropped by six points. If you’re not that kind of person, you’ll see that almost half of the people who answered the survey said they were almost out of money and couldn’t pay all their bills. You might also be worried by the survey’s finding that Canadians aged 18–34 have seen their average cash balance at the end of the month drop by $273, to $606. This is a big change from the previous quarter.
The company that runs the pipelines said this morning that Al Monaco is leaving Enbridge at the beginning of next year. It also named Greg Ebel, its current chair, as Monaco’s replacement. We’ll use this time to look back on Monaco’s time as president since 2012, when he took over from Pat Daniel, and to think about the challenges and chances that lie ahead for Ebel.
OTHER IMPORTANT STORIES
- Some miners in Burkina Faso are under a lot of scrutinies because of a new coup. This morning, Iamgold said that its Essakane mine is running normally and that it is “closely watching the political situation.” Endeavor Mining also said in a press release that “recent political events have no effect” on how it does business.
- Interior said it will pay $325 million to buy Chaleur Forest Products of New Brunswick. Interior said that the deal, which includes the ability to make 350 million board feet of lumber every year, will increase earnings right away.
- In the third quarter, Tesla delivered a record number of cars, 343,830, but that was a bit less than expected, so its shares are falling in pre-market trading. The company that makes electric cars said, “During these peak logistics weeks, it’s getting harder and more expensive to find space for transporting vehicles at a fair price.”
- This morning, the U.S. Securities and Exchange Commission said that Kim Kardashian will be charged with not telling the truth about how she promoted crypto security on Instagram. In a settlement agreement, she has to pay $1.26 million.
- AGF Management said it might buy back up to $40 million worth of its own shares in a large issuer bid in which investors can take part for $5.85 to $6.75 per share.
- Notable Releases/Events
- The Calgary Real Estate Board’s monthly sales report and the ISM U.S. manufacturing index are examples of important data.
- 1530 General Election in Quebec Chrystia Freeland, Deputy Prime Minister, and Finance Minister talk about Bill C-30 at a hearing of the House Standing Committee on Finance.
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