June 10-14, 2013
Market Comments: Stimulus jitters hit global markets, after Fed Chairman Ben Bernanke announced the tapering of government stimulus. But, the end of QE does not necessarily mean the end of the bull market.
“Investors are very worried about a potential reduction in QE programs,” said strategists at Pavilion Global Markets, in a note. “However, history tells us that the first tightening in a recovery does not lead to bear markets.”
The TSX rallied on Thursday, erasing losses from earlier in the week, but fell again on Friday. Investors across North America are looking forward to the Fed's policy meeting next week.
Companies: Facebook held its first shareholder meeting since last year's IPO. CEO Mark Zuckerberg told investors he was "dissapointed" with the companies share price, which has dropped 40% from its initial price.
Lululemon has hit a snag (hahaha) as CEO Christine Day announced her departure from the company. Day is well known for the development of the brand, and shares fell almost 18% at the news. One must wonder if the company will continue in the same pose, or if this is the beginning of a major transition.
International: Speculation of fed tapering and the end of quantitative easing in the US caused global market volatility. This was particularly noticed in currency and bond markets in emerging economies.
Sobey's put in a bid for grocery store Safeways, in a $5.8 bn deal. It strengthens the companies position in Western Canada, making it more competitive with Loblaw's (Canada's largest grocer).
Otherwise: While keeping the credit rating at AA+, Standard & Poor raised its outlook of the American economy from negative to stable.
RBS chief Hester has announced he wills step down, throwing the bank's leadership into question. Another departure was announced, as Paul Tucker sys he will leave the Bank of England.
Vodafone is looking at a cable company in Germany. It is expected to expand its offering to include phone, internet and TV.
*Bye Bye Bye, by Nsync chosen to reflect the high level departures across industry and government this week.