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Billionaire Warren Buffett sold half of his shares of which major company? Take our economics quiz for the week of August 9


Billionaire Warren Buffett sold half of his shares of which major company? Take our economics quiz for the week of August 9

Welcome to The Globe and Mail’s business and investment news quiz. Take part each week and test your knowledge of the headlines. Our business reporters come up with the questions and you can show us what you know.

This week: The Olympics were taking place in Paris, but some of the biggest sporting events were taking place on global stock markets. In the U.S., the S&P 500 fell 3 percent on Monday but rose 1 percent on Tuesday. The Dow Jones Industrial Average lost 2.6 percent on Monday but rose 0.8 percent the following day. Although markets had largely calmed down by the end of the week, a series of earnings reports offered no clear direction for the future of the economy. Canadian Tire reported profit attributable to shareholders of $198.8 million in the latest quarter, compared with $99.4 million a year earlier.

Also: Maple Leaf Foods reported a loss of $26.2 million in the latest quarter, compared to a loss of $53.7 million a year earlier.


1It’s been a wild, wild week on the markets. Japan’s Nikkei stock index was one of the biggest victims, plunging 12.4 percent on Monday, the biggest one-day loss since:

2017

born 2007

ca. 1997

died 1987

D. 1987. The Nikkei’s crash was part of a wave of selling on stock markets around the world. As the week progressed, the Nikkei recovered some of its losses.

2Billionaire investor Warren Buffett added to investor concerns this week when he announced he had sold about half of one of his largest holdings. What was he selling so enthusiastically?

a. Coca-Cola shares

b. Apple shares

c. US Treasury bills

d. American Express shares

b. Apple shares. Buffett announced that he sold just over 49 percent of his Apple shares in the second quarter. The sale helped push cash at his flagship Berkshire Hathaway to $277 billion, the highest level ever. It seems that Buffett is not exactly optimistic about the future of the stock market.

3But it wasn’t just the markets that were gloomy. Shares in Canadian e-commerce specialist Shopify rose 18 percent on Wednesday after the company announced:

a. Better than expected sales and profits in the second quarter

b. A partnership with Amazon

c. The acquisition of a European delivery service

d. Workers were laid off

A. Better than expected sales and profits in the second quarter. Shopify beat expectations and gave an optimistic forecast for the future. The good news was a welcome contrast to the sentiment in May, when the company’s share price slumped nearly 20 percent on concerns that operating costs were rising too quickly for investors’ liking.

4Toronto-Dominion Bank’s online investment platform launched fractional trading this week. What is it?

a. The ability to buy shares and pay only a fraction of the selling price

b. The possibility to place orders in quantities of less than 100 shares

c. The opportunity to buy a small portion of an expensive stock

d. The possibility for investors to divide share ownership among family members

C The opportunity to buy a small portion of an expensive stock. Fractional trading allows investors to purchase a small portion of a stock that can then be sold for hundreds or thousands of dollars.

5Rachel Reeves, the UK finance minister, was in Toronto this week to meet with leaders of a Canadian sector she sees as a model for the UK. Which sector is that?

a) Nuclear energy

b. Pension funds

c. Banking

Artificial intelligence

b. pension funds. According to the Financial Times, Ms Reeves met with the heads of major Canadian pension funds. She advocates consolidating Britain’s numerous municipal pension schemes and turning them into something similar to the Ontario Teachers’ Pension Plan or the Caisse de dépôt et placement du Quebec.

6In a landmark ruling in the US this week, Google was found guilty:

a. Maintaining an illegal monopoly on online search

b. Force Apple to use its search engine

c. Undercutting the competition in advertising prices

d. Confidentiality of algorithms

A. Maintaining an illegal monopoly over online search. Judge Amit Mehta called Google a “monopolist,” saying the company uses its dominance in online search to stifle competition and maintain artificially high prices for online advertising. Among other things, Google pays billions of dollars each year to Apple and other handset makers to ensure it is the default search engine on new phones and other devices.

7Mars Inc., maker of iconic candies such as Snickers candy bars and M&Ms, is reportedly in negotiations to acquire the maker of the following products:

a. Altoids Peppermint

b. Pringle potato chips

c. Skittles candy

d. Wrigley’s chewing gum

b. Pringle potato chips. Consider the synergies in the junk food space. According to the Financial Times and Reuters, privately held Mars plans to acquire Kellanova, a line 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 nutritious? Maybe not, but profitable, yes.

8Rents continue to rise across Canada. What was the average asking rent for all types of residential properties in July?

a. About $1,600 per month

b. About $1,800 per month

c. About $2,200 per month

d. About $2,400 per month

C About $2,200 a month. According to data from Rentals.ca and Urbanation, the average rent asking price nationwide in July was $2,201 per month, a sharp increase of 5.9 percent from the previous year. The good news is that July’s rate of increase was the lowest since 2022. Rent increases had previously been nearly 10 percent per year.

9Ottawa says it is cutting the temporary foreign worker program, particularly the part that allows employers to bring low-paid workers to Canada rather than hiring them locally. So how did the number of workers in this category in the first quarter of 2024 compare to the number last year?

a. The value fell by 10 percent

b. It was about the same

c. It rose by 10 percent

d. It rose by 25 percent

D. It was an increase of 25 percent. Ottawa’s rhetoric appears to be way ahead of reality. In the first quarter of the year, employers received approval to hire 28,730 people through the TFW program’s low-wage program, up 25 percent from the previous year and the highest quarterly figure for such approvals in government records since 2016.

10An air passenger rights advocacy group filed a lawsuit this week against WestJet Airlines Ltd. The non-profit organization is demanding that the Calgary-based airline:

a. No more attempts to limit the amount of compensation a passenger can claim in the event of a flight disruption

b. Expansion of the airline’s economy seats

c. Publish detailed breakdowns of how many WestJet flights are delayed or cancelled

d. Be more lenient with emotional support animals on flights

A. Stop trying to limit the amount of compensation a passenger can claim in the event of a flight disruption. The Air Passenger Rights Group claims that policies posted online by WestJet may mislead customers about their ability to get money back if a flight is canceled or delayed. The lawsuit alleges that the airline’s refund limits violate both federal and international regulations.

11Glencore, the major Swiss mining group that acquired Teck Resources’ steel coal division last year, said this week:

a. The company would spin off all of its coal assets into a separate company in the fall of this year

b. For environmental reasons, the scale of coal activities has been reduced.

c. The company abandoned its plan to divest its coal assets.

d. It hoped to sell the coal reserves to a Chinese company

C The company abandoned its plan to spin off its coal assets. Glencore has scrapped plans to spin off its coal division. When Glencore acquired Teck Resources’ coal division last year, the company said it would merge the Canadian miner’s assets with its existing coal division and then roll the combined coal operations into a new company. Shareholders were cool to the idea, underscoring the tension companies face as they try to reduce emissions while generating high profits.

12Investors are nervous and are ruthless with any company that misses its targets. Which of these stocks has lost 20 percent or more in value in the last month?

Intel

b. Lundin Mining

c. Airbnb

d. All of the above

How well did you do?

Answer all questions to see your result

It wasn’t your week, but that’s OK! We’ll be back next Friday with another business and investment quiz. Subscribe to our Top Business Headlines newsletter to get ready.

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