Bank of Canada holds key interest rate steady as economy slows (2 min read) The Bank of Canada (BoC) has decided to leave its key rate unchanged at 5%, as expected, due to signs of a slowing Canadian economy. Recent data showed a 0.2% contraction in Canada’s GDP for Q2 and increased job losses in July. The central bank had paused its rate hikes in March but raised again in June and July to address inflation concerns. Despite the slowdown, the BoC remains cautious and said it's ready to increase rates further if needed.
China to launch $40 billion state fund to boost chip industry (3 min read) China is launching a $40 billion state-backed investment fund to bolster its semiconductor industry. President Xi Jinping has emphasized the need for semiconductor self-sufficiency and aims to narrow the gap with the US and other competitors in advanced chip production. The move also serves as a counter to the US-imposed chip export controls and the CHIPS Act that aims to boost domestic production in the US. The fund will likely take several months to raise.
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Business & Stocks
AMC shares slide 20% after theater chain announces plan to sell additional stock (2 min read) AMC's stock plunged over 20% as the company announced plans to sell up to 40 million new shares to raise cash. This move was somewhat expected after the conversion of its preferred APE shares into common stock in August was a success. AMC’s effort has been focused on raising funds to stabilize its finances as the movie industry remains below pre-pandemic levels, and ongoing strikes in Hollywood have added uncertainty to future releases.
China bans government officials from using iPhones for work (2 min read) China has instructed officials at central government agencies not to use Apple iPhones or other foreign-branded devices for work. Many see this move as reflecting China's broader push for self-reliance in technology. This also comes ahead of an anticipated Apple event, raising concerns for foreign companies operating in China amid rising Sino-U.S. tensions. Apple's shares dipped about 3% in response to the news.
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Funds & ETFs
ETF Investors Are Missing Out on These 3 Themes (6 min read) This article discusses three promising ETF categories that haven’t seen significant inflows this year. Currency-hedged ETFs greatly outperformed unhedged ones last year and have the potential to continue in 2023. Fintech and crypto-themed ETFs have been among the best performers this year and could further rise from the recent industry development. Tech and AI-themed ETFs will also likely receive a boost as the adoption of AI technologies surges.
August Had Second Lowest ETF Inflows This Year (3 min read) US-listed ETFs had the second-lowest monthly inflow for the year in August as investors held back from pouring assets into them. Factors like market uncertainty and economic concerns might have contributed to this slowdown. The biggest ETF inflows last month remain to be broad market giant funds tracking the S&P 500 and QQQ, despite both indexes falling 1.5%. This article has the full list of top ETF asset gainers and losers for the month of August.
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