Canada's New Sovereign Wealth Fund and Intel’s Stunning AI Quarter

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Previously titled “Canada Strong Fund and Intel’s Stunning AI Quarter” — renamed by the publisher on Aug 3, 2026

The Canadian Investor 53 min 3 speakers 4 chapters transcribed 3 months ago
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What did the Bank of Canada's latest rate decision signal for inflation?

Simon Belanger 0:01
Investing is simple, but don't confuse that with thinking it's easy. A stock is not just a ticker. At the end of the day, you have to remember that it's a business.
Dan Kent 0:12
Just my reminder to people who own cyclicals, don't be surprised when there's a cycle.
Simon Belanger 0:17
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
Braden Dennis 0:23
This has to be one of the biggest quarters I've seen from this company in quite some time.
Simon Belanger 0:32
Welcome back to the Canadian Investor Podcast. I'm Simon Beranger. I'm back with Dan Kent. We're back for a news and earnings episode. A lot of stuff going on, Dan, between the BOC, the Bank of Canada announcement. We have also the Canada Strong Fund, so the new sovereign wealth fund that the Canadian government, the Carney government launched just a couple of days ago or the announcement of it. A lot of news. We also have earnings season that's in full force. So we'll have a few companies we'll be talking in there as well. I mean, I wish we had like probably an hour and a half. We'll try to keep it to around 45 minutes. We debated doing an extra episode, but I think we'll just do one this week. Maybe we'll go for two next week.
Simon Belanger 1:13
But yeah, lots of stuff to talk about.
Braden Dennis 1:15
Yeah, and the crazy thing is I'm pretty sure all, well, not all, but it's Alphabet, Meta, Amazon all report after hours today. There might even be more of them like all on the same day too. I haven't seen that. Usually they try to spread them around a day or two apart, but yeah, it's going to be a big end of the day too. So next week's episode should be pretty good as well.
Simon Belanger 1:36
No, exactly. So a lot of stuff happening. I think it's something I read like 40% of S&P 500 companies are reporting this week, something crazy like that. So there's a lot of companies reporting. So it'll be a fun couple of weeks when we're deep into earnings season. Well, let's start with a little bit of macro here. The Bank of Canada decision. We are recording this on April 29th. So it just happened this morning. I actually watched a live press conference. So in real time, it was interesting to see. Just see Tiff and Rogers answering some of the questions. So they decided to keep rates unchanged at 2.25%. This was widely expected. I talked with Dan Foch about it last Friday on our YouTube live, which, by the way, we will be doing this week, but also posting it as a podcast on Saturday.
Simon Belanger 2:26
So if you're interested in that, I'm sure we'll be talking a bit more in depth about the Bank of Canada announcement, the Fed announcement also coming later today and a few other topics. Now, to get back to this, they believe the interest rate is appropriate and things play out along with their... If things play out along with their base case, they don't anticipate any major changes in terms of the policy rate. Their projections... haven't changed materially from earlier this year and are based on tariffs largely remaining at current levels. So clearly, it could vary in terms of are they raising or lowering rates, depending if tariffs actually switch here.

What is the Canada Strong Fund and how does it impact Canadian policy?

Simon Belanger 3:06
If tariffs are significantly higher, they said obviously they would likely consider lowering rates. They are projecting... Slow growth for the rest of 2026, around 1.2%, and then slightly higher for 2027, and then slightly higher again for 2028. And although consumers are squeezed by higher prices, it's also contributing to GDP in Canada since we are a net oil exporter. And on that note, I think we've talked about that before where yes, if you have the US dollar straightening because there is a rush for safety in terms of actual US dollars, well, it's been a little bit offset and they touch on that on the currency level where Canada's currency has been essentially about the same throughout this whole episode since the war of Iran started, whereas a lot of other countries, it's actually, the US is actually straightening versus those other currencies.
Simon Belanger 4:03
So clearly, I think, They're saying that, but it's also an example or I guess it shows how much more demand there is for the Canadian dollar when oil is higher.

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