Welcome to The Globe and Mail’s business and investing news quiz. Join us each week to test your knowledge of the stories making the headlines. Our business reporters come up with the questions, and you can show us what you know.
This week: The Olympics were under way in Paris, but some of the biggest gymnastics took place in global stock markets. In the U.S., the S&P 500 fell 3 per cent Monday, then rose 1 per cent Tuesday. The Dow Jones Industrial Average took a 2.6-per-cent fall on Monday, then rose 0.8 per cent on the following day. While markets had largely calmed by end of week, a slew of earnings reports offered no clear direction for the economy’s future. Canadian Tire reported a profit attributable to shareholders in its latest quarter of $198.8-million, up from $99.4-million a year earlier.
Also: Maple Leaf Foods reported a loss of $26.2-million in its latest quarter compared with a loss of $53.7-million a year earlier.
1It was a wild, wild week in markets. Japan’s Nikkei Stock Average was one of the major victims. It plunged 12.4 per cent on Monday, its biggest one-day decline since:
a. 2017
b. 2007
c. 1997
d. 1987
d. 1987. The Nikkei’s crash was part of a selling frenzy in stock markets around the globe. The Nikkei did recover part of its losses later in the week.
2Billionaire investor Warren Buffett added to investors’ anxiety this week by announcing he had dumped roughly half of one of his biggest holdings. What did he sell so enthusiastically?
a. Coca-Cola stock
b. Apple stock
c. U.S. Treasury bills
d. American Express stock
b. Apple stock. Mr. Buffett revealed that he sold off slightly more than 49 per cent of his Apple shares in the second quarter. The sale helped raise the amount of cash at his flagship Berkshire Hathaway to US$277-billion, its highest level on record. It would appear that Mr. Buffett is not brimming with optimism about what lies ahead for the stock market.
3It wasn’t all gloom in markets. Shares of Shopify, the Canadian e-commerce specialist, jumped 18 per cent on Wednesday after it reported:
a. Better-than-expected revenue and profit for the second quarter
b. A partnership with Amazon
c. The acquisition of a European delivery service
d. It was laying off workers
a. Better-than-expected revenue and profit for the second quarter. Shopify beat expectations and offered an optimistic forecast for what lies ahead. The good news was a welcome contrast to the mood in May, when the company’s share price plunged by close to 20 per cent on concerns that its operating expenses were rising too rapidly for investors’ liking.
4Toronto-Dominion Bank’s online investing platform launched “fractional trading” this week. What is that?
a. The ability to buy shares while putting up only a fraction of the sales price
b. The ability to place orders in volumes of less than 100 shares
c. The ability to buy a small piece of an expensive stock
d. The ability for investors to split share ownership among family members
c. The ability to buy a small piece of an expensive stock. Fractional trading allows investors to buy a small portion of a stock that may sell for hundreds or thousands of dollars.
5Rachel Reeves, Britain’s Chancellor of Exchequer, was in Toronto this week to talk to senior executives from a Canadian sector she regards as a model for Britain. What sector is that?
a. Nuclear power
b. Pension funds
c. Banking
d. Artificial intelligence
b. Pension funds. Ms. Reeves met with bosses of big Canadian pension funds, according to the Financial Times. She favours consolidating Britain’s numerous local government pension schemes and turning them into something more similar to those from the the Ontario Teachers’ Pension Plan or the Caisse de dépôt et placement du Quebec.
6A landmark ruling this week in a U.S. found that Google was guilty of:
a. Maintaining an illegal monopoly over online search
b. Forcing Apple to use its search engine
c. Undercutting competitors on ad rates
d. Keeping its algorithms private
a. Maintaining an illegal monopoly over online search. Judge Amit Mehta called Google a “monopolist” and said it uses its dominance in online search to squash competition and maintain artificially high rates for online ads. Among other tactics, Google pays billions of dollars every year to Apple and other handset makers to ensure it is the default search engine on new cellphones and other gadgets.
7Mars Inc., maker of iconic sweets, such as Snickers chocolate bars and M&Ms, is reportedly in talks to buy the maker of:
a. Altoids peppermints
b. Pringle potato chips
c. Skittles candy
d. Wrigley’s gum
b. Pringle potato chips. Think of the junk-food synergies. According to the Financial Times and Reuters, privately owned Mars is manoeuvring to acquire Kellanova, a collection of snack and food brands spun off from Kellogg less than a year ago. Kellanova’s products include Pringles, Pop Tarts and Cheez-It. Mars already owns Altoids, Wrigley’s gum and Skittles. Would a combination of all these brands be nutritional? Maybe not, but profitable, yes.
8Rents across Canada are still going up. What was the average asking rent for all residential property types in July?
a. About $1,600 a month
b. About $1,800 a month
c. About $2,200 a month
d. About $2,400 a month
c. About $2,200 a month. The average asking rent across the country was $2,201 a month in July, according to data from Rentals.ca and Urbanation. That was a hefty 5.9-per-cent increase from where things stood a year earlier. The glimmer of good news here is that July’s rate of increase was the slowest since 2022. Rent increases had been running close to 10 per cent a year.
9Ottawa says it is cutting back on the Temporary Foreign Worker Program, especially the part that allows employers to bring low-paid workers into Canada rather than hire locally. So how did the number of workers in this category in the first quarter of 2024 compare with to the number a year earlier?
a. It was down 10 per cent
b. It was roughly the same
c. It was up 10 per cent
d. It was up 25 per cent
d. It was up 25 per cent. Ottawa’s rhetoric seems to be running well ahead of reality. During the first quarter of the year, employers received approval to hire 28,730 people through the low-wage stream of the TFW program, an increase of 25 per cent from a year earlier and the highest quarterly number for such approvals in government records going back to 2016.
10A passenger-rights group filed a lawsuit this week against WestJet Airlines Ltd. The non-profit group wants the Calgary-based airline to:
a. Stop attempting to limit the amount of reimbursements a passenger can seek in the event of a flight disruption
b. Enlarge the airline’s economy seats
c. Publish detailed breakdowns of how many WestJet flights are delayed or cancelled
d. Take a more lenient attitude toward emotional-support animals on flights
a. Stop attempting to limit the amount of reimbursements a passenger can seek in the event of a flight disruption. The Air Passenger Rights group alleges guidelines published online by WestJet are potentially misleading customers about their ability to get money back if a flight is cancelled or delayed. The lawsuit alleges that the airline’s limits on reimbursement are contrary to both federal and international rules.
11Glencore, the big Swiss miner that acquired Teck Resources’ steelmaking coal division last year, said this week that:
a. It would split off all its coal assets into a separate company this fall
b. It was shrinking the size of its coal operations because of environmental concerns
c. It was reversing its plan to spin off its coal assets
d. It was hoping to sell the coal assets to a Chinese company
c. It was reversing its plan to spin off its coal assets. Glencore scrapped plans to separate its coal division. When it acquired Teck Resources’ steelmaking coal unit this past year, it said it would merge the Canadian miner’s assets with its existing coal unit. It would then put the combined coal operations into a new company. Shareholders were cool to the idea, underscoring the tension companies face as they try to curb emissions while generating big profits.
12Investors are nervous and are being merciless to any company that misses its targets. Which of these stocks has lost 20 per cent or more of its value over the past month?
a. Intel
b. Lundin Mining
c. Airbnb
d. All the above
Answer all of the questions to see your result