As expected, the Bank of Canada announced it was raising the benchmark lending rate by 25 basis points to 0.75 percent. This is the second increase in the past two months and comes as the Canadian economy continues to recover from last year’s recovery. Bank of Canada Governor Mark Carney gave little indication of future interest rate plans, but some analysts suggest there could be another 25 basis point increase in the near future to bring the lending rate to an even 1 percent.
July 20, 2010
Weaker Revenues Expected to Pull Down Stocks
Disappointing earnings from Goldman Sachs and IBM are expected to send North American stock markets into negative territory at this morning’s open. A weaker-than-expected housing starts report is also giving investors the jitters this morning.
Ahead of the opening bell, Dow Jones industrial average futures fell 84, or 0.8 percent, to 9,976. Standard & Poor’s 500 index futures dropped 10.10, or 1 percent, to 1,054, while Nasdaq 100 index futures fell 17, or 0.9 percent, to 1,789.
Source: Associated Press
US Housing Starts Disappoint
US housing starts fell more than expected in June, falling 5.0 percent to a seasonally-adjusted annual rate of 549,000 units. This is the lowest level of new starts in eight months, providing further evidence that the economy is slowing.
Source: Reuters
December 16, 2009
UK Jobless Rate Slows in 3rd Quarter
According to the Office for National Statistics (ONS), the UK lost 21,000 jobs between August and October, bringing the total number of officially unemployed to 2.49 million. The good news however, is that this was the lowest three-month total since the second quarter of 2009.
“It is still tough for a lot of people and we still expect unemployment to increase again in the New Year. So we are determined to do more, supporting a total of 400,000 extra youth opportunities over the next 18 months,” said Yvette Cooper, Secretary of State for Work and Pensions.
BBC News
December 10, 2009
Canada Records Trade Surplus in October
Canada’s exports grew by 3.4 percent in October and helped lift Canada’s trade surplus for the month to $428 million. Imports dropped slightly but this is the second straight monthly increase in the value of exports and the fourth advance in five months.
The Canadian Press
Eurozone Pledges to Prevent Bankruptcy in Greece
Jean-Claude Juncker – Prime Minister of Luxembourg and spokesperson for the countries using the euro – said today that even though the credit situation in Greece is “tense”, there is no chance that Greece will face bankruptcy even after suffering a credit rating cut earlier this week.
“I totally exclude a state bankruptcy in Greece”, Juncker said.
In addition to Greece, Ireland, Portugal, and Spain have also received warnings from credit rating agencies that their credit ratings are also in peril.
AFP News
Bank of England Maintains Interest Rate
The Bank of England voted today to hold the benchmark interest rate at 0.5 percent. The move was widely expected as was the commitment to continue with its £200 billion (US$325 billion) stimulus spending program.
“It was the only realistic thing they could have done. The next big decision will be taken in February with the new inflation report,” said Brian Hilliard, economic at Societe Generale. “But cracks are already appearing in the committee and I don’t think they will expand again.”