About this episode

The episode discusses the implications of rising bond yields and inflation on the Canadian economy, housing market, and the AI sector.

Bond yields are climbing, energy prices are surging, and central banks are being forced to navigate an increasingly complicated inflation picture. Simon and Dan break down what the bond market may be signaling and why higher long-term yields matter even if the Bank of Canada keeps its policy rate unchanged. They discuss the potential impact on Canadian housing, rental construction and mortgage financing, along with why inflation-adjusted home prices can continue falling even when nominal prices stabilize. They also look at the sharp increase in diesel prices and refinery margins, what higher transportation costs could eventually mean for consumers, and whether households have enough room left to absorb another round of price increases. The conversation then turns to monetary policy following the latest Bank of Canada decision and Kevin Warsh’s Jackson Hole remarks, before digging into one of the biggest risks surrounding the AI boom: financing. With hundreds of billions being poured into AI infrastructure, rising borrowing costs and increasingly interconnected financing arrangements could become a major vulnerability. Simon and Dan discuss what happens if AI companies…

People in this episode

Hosts: Simon, Dan

Topics covered

• inflation
• bond yields
• monetary policy
• AI financing
• housing market
• energy prices

Keywords

• bond yields
• inflation
• Bank of Canada
• housing market
• AI financing
• energy prices
• diesel prices
• monetary policy

Mentioned in this episode

Organizations: Bank of Canada, Kevin Warsh

Products: AI, NVDA, MSFT, GOOGL, ORCL, TSLA, WMT, TGT, HD, LOW

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