Global Economic News and Trends
World Leaders React to Carney’s View
World leaders are pushing back against Prime Minister Mark Carney’s speech at the World Economic Forum in Davos, Switzerland. European Central Bank President Christine Lagarde stated that she is “not exactly on the same page” as Carney, emphasizing the strong links and dependencies between countries. Ngozi Okonjo-Iweala, director general of the World Trade Organization, also highlighted the resilience of the global trade system despite disruptions.
Canadian Retail Sector: Mixed Signals
The Canadian retail sector is showing mixed signals, with retail sales rising by 1.3% in November, driven by increases at food and beverage retailers. However, the ‘flash estimate’ for December showed a 0.5% drop. This suggests a significant deceleration in retail sales growth compared to the start of 2025.
Intel’s Struggles to Meet Demand
Intel’s shares have dropped by over 10% in pre-market trading due to the company’s struggles to meet surging demand from AI data centers. The company has cited manufacturing problems and supply-chain constraints, issuing profit and revenue forecasts below expectations.
Gold Prices Soar
Gold is heading for its best week in six years, driven by geopolitical risks and threats to the US Federal Reserve’s independence. The rally has led to a record high above $4,967 an ounce, with silver and platinum also reaching all-time highs. Precious metal stocks have been top performers on the TSX this year, but it’s unclear if it’s too late for investors to jump on the bandwagon.
Lululemon’s Embarrassing Moment
Lululemon is facing embarrassment over its “Get Low” leggings, which have been criticized for being see-through. The company has reinstated sales of the product online, but with disclaimers advising customers to size up and wear skin-tone underwear. The fiasco has sparked a lashing from founder Chip Wilson, who blamed the company’s board for the “total operational failure.”
Conclusion
In conclusion, the global economy is experiencing a mix of trends and challenges. World leaders are debating the state of the global economy, while the Canadian retail sector is showing mixed signals. Intel’s struggles to meet demand and the surge in gold prices are also making headlines. Meanwhile, Lululemon is facing growing pressure over its product quality and slowing growth. As the economic landscape continues to evolve, it’s essential to stay informed about the latest developments and trends.
