Finance with Pall

2024 Finance Wrap-up 

Welcome to the Carillon’s “Finance with Pall,” a news finance column covering important economic and financial news from Canada and around the world, focusing on explaining what that news means for students. From tuition costs to job markets, we’ll break down how these changes affect you, making finance easy to understand and relevant to your life. If you have any request for a topic or want me to highlight a stock price – shoot me an email at pall@carillonregina.com. 

Disclaimer: The information in this column is intended for educational purposes and is not financial advice. For personalized financial guidance, please consult a licensed professional.

This week, to mark the new year, we’ve put together a 2024 finance wrap-up, looking at key financial and economic events that took place throughout 2024. Keep an eye on the news pages for 2025’s finance news and more educational definitions. 

1. Rate hike by Japan: For the first time in 17 years, the Bank of Japan (BOJ) implemented an interest rate hike from 0 per cent to 0.1 per cent. This ended years of negative interest rates in Japan, which was introduced to counteract deflation and encourage economic activity. Towards the end of the year, Governor Kazuo Ueda decided to hold back its hike this month, waiting for Trump’s policies as threats of tariffs loom over global trade. 
2. Trump’s Return: Donald Trump was elected as the 47th President of the US, and in turn, the financial markets opened at record highs, including indices like Down Jones, S&P 500, and NASDAQ. The highlight of this surge was the stock of Tesla which experienced a nearly 15 per cent surge in its stock price. Elon Musk’s (CEO of Tesla) loud support for Trump reflected in the gains as investors felt confident in the company. 
3. Canada’s economy: In 2024, the Bank of Canada introduced a lot of interest rate fluctuations and the entire year the interest rate was maintained between 1 and 3 per cent. They cut interest rate five times this entire year to stabilize housing prices, unemployment etc. According to the 2024 Fall Economic Statement, “the Canadian economy is now 7.3 per cent larger than it was before COVID first hit, and over 1.4 million more Canadians are employed today than before the pandemic.”
4. China’s Industry: The world’s second largest economy struggled to maintain profitability and saw an annual decline in earnings by about 7.3 per cent in November last. Overall, according to experts, “this year is expected to be the worst in over two decades due to persistently soft domestic consumption.”
5. AI Investments: This year many companies saw a lot of heavy investments in AI, including xAI founded by Elon Musk. The firm saw a crucial role in fundraising by leading companies like Advanced Micro Devices and NVIDIA. OpenAI has pivoted to a for-profit model to secure more funding. Currently worth $157 billion, OpenAI plans to set up a public benefit corporation for its commercial operations, whilst keeping its non-profit arm geared towards charitable initiatives. 
6. Cryptocurrency:  MicroStrategy Inc. which is the largest corporate holder of Bitcoin saw a surge of over 120 per cent in its bitcoin price. The company itself saw an impressive growth of 402 per cent, driving its market cap to $83 billion. After Trump’s election, the price of the world’s largest cryptocurrency surged past $100,000 and the overall market value of all crypto inflated over $1.7 trillion.