By Angela Harmantas
China devalues its currency, Japan restarts nuclear reactor and Google’s restructuring debuts to mixed reaction – here’s what you need to know today:
China’s decision to devalue its currency sent shockwaves through global markets on Tuesday, meaning more pain is on the horizon for Canada’s own export-driven economy. The yuan’s 2% drop sent the Canadian dollar hurtling to a low of around 76 cents to the US dollar, and with slowed economic growth on the horizon in China, commodity prices are expected to remain weak in the short term. What’s worrying is that analysts expect the yuan to fall even further over the coming months as China deals with its own concerns about deflation.
Elsewhere in Asia, Japan took a bold move to restart the Sendai nuclear reactor under a new set of safety requirements in the wake of 2011’s Fukushima disaster. Nuclear power is and will continue to be a sensitive topic in Japan and indeed globally, but restarting Sendai despite the massive trauma four years ago shows that nuclear still has a significant role to play in power generation going forward. What do you think this could mean for uranium producers in the medium term?
It’s been just over 24 hours since Google engineered a massive restructuring of its business by creating the holding company Alphabet Inc., and industry watchers are divided in their reaction to the move. If you’re still confused about the new structure of the company, this is a great article that should help you understand the whos, hows and whys of the move. Think of the new Google – er, Alphabet – as a Berkshire Hathaway-type investment company, but for new technology ventures. Am I the only one who is having trouble realigning my business paradigms here?
Have a comment or suggestion? I’d love to hear from you! Contact me at angela@smallcappower.com or on Twitter: @aharmantas.
