The Canadian dollar gained 0.1 percent on its US counterpart by 7:15 a.m. in Toronto on Friday to C$1.0730 from C$1.0744 yesterday. The loonie receive a boost on a jobs report from Statistics Canada showing that the economy gained 43,000 jobs in January, dropping the overall unemployment rate to 8.3 percent from 8.5 percent.
Source: Bloomberg
European Central Bank President Jean-Claude Trichet has been forced into the awkward position of trying to convince investors that despite the debt concerns of several Euro Zone member nations, the euro itself is solid and worthy of consideration as a safe investment. Yesterday, Trichet reaffirmed his “confidence” in Greece’s efforts to address its growing deficit while noting that the Euro Zone’s combined budget shortfall was less that the deficits in the US and Japan.
Despite these efforts, investors remain wary of the entire region.
“Something has to happen to turn credibility around,” said Paul Mortimer-Lee, head of Market Economics at BNP Paribas in London. “The market’s just saying it’s not believable. It might have to get worse before it gets better.”
Source: Bloomberg
Canada’s inflation rate rose 1 percent in the month of November as costs rose in seven of the eight sectors reviewed by Statistics Canada. The government agency did point to an increase in gasoline prices however, as the largest single component pushing the overall inflation rate higher.
“Prices at the pump are now exerting upward pressure on the Consumer Price Index after an extended period in which they were the main contributors to year-over-year declines in overall consumer prices,” Statistics Canada noted in its inflation report.
The Canadian Press
Existing home sales in Canada rose to the tune of 73 percent in November when compared to the same month one year ago. The Canadian Real Estate Association said on Tuesday that 36,383 homes changed hands in November on a seasonally adjusted basis, 0.4 percentage points below the record high set in November 2007.
“As we predicted last April, the rebound in resale housing activity led the overall Canadian economy out of recession,” CREA President Dale Rippinger said in a statement.
Bloomberg
Existing home sales in Canada rose to the tune of 73 percent in November when compared to the same month one year ago. The Canadian Real Estate Association said on Tuesday that 36,383 homes changed hands in November on a seasonally adjusted basis, 0.4 percentage points below the record high set in November 2007.
“As we predicted last April, the rebound in resale housing activity led the overall Canadian economy out of recession,” CREA President Dale Rippinger said in a statement.
Bloomberg
Industrial output in the US increased in November as the US economy continues to gain strength heading into the new year. Output at factories, mines and utilities climbed 0.8 percent, after no change in October, the Federal Reserve said today in Washington. Manufacturing and mining rose, while warmer weather restrained utility demand. Capacity utilization, which measures the proportion of plants in use, increased.
“We’ll continue to see growth in manufacturing output, given strong exports and that consumers are spending,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York, who forecast a production gain of 0.9 percent. “You’re seeing a decent amount of breadth in terms of the increases.”
Industrial output in the US increased in November as the US economy continues to gain strength heading into the new year. Output at factories, mines and utilities climbed 0.8 percent, after no change in October, the Federal Reserve said today in Washington. Manufacturing and mining rose, while warmer weather restrained utility demand. Capacity utilization, which measures the proportion of plants in use, increased.
“We’ll continue to see growth in manufacturing output, given strong exports and that consumers are spending,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York, who forecast a production gain of 0.9 percent. “You’re seeing a decent amount of breadth in terms of the increases.”
The US Labor Department announced that 11,000 jobs were lost in the month of December – a dramatic improvement over the 110,000 position lost in October and a reduction in the overall unemployment rate from 10.2 percent to 10 percent.
Associated Press
The US Commerce Department said this morning that consumer spending fell 0.5 percent in September – the largest single month fall in nine months. While the overall economy grew in the quarter ending in September, government spending programs and other initiatives helped inflate the results, and once the programs wound down, consumers immediately cut back.
This is causing concern with economists who worry that the recovery could stall in the next quarter as consumers are still facing continuing unemployment and a growing foreclosure rate. For this reason, analysts warn that a “double-dip recession” cannot yet be ruled out.
Associated Press
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