10-June-2011

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Economic Summary

+ Canada’s unemployment rated declined to 7.4% vs 7.6% MoM, 22,300 net new jobs were added. Alberta’s unemployment rate was 5.4% vs 5.9% MoM and over the past 12 months Alberta had the fastest job growth rate in the country.

+ Bundesbank President Axel Weber, raised German GDP growth forecast to 3.1% for 2011 and stated “the prospects of the German economy experiencing a lengthy period of expansion are rising”.

+ Australia kept interest rates unchanged, medium term overall growth is likely to be at trend or higher.

+ Reserve Bank of New Zealand left rates unchanged stating that rate increases are needed over the next 2 years to contain inflation.

+ Brazil’s central bank raised interest rates to 12.25% from 12% and did not signal an end to increases.

Tidbits

+ Saudi Arabia said the most recent OPEC meeting was the worst ever. No change to output.

+ Greece has a full-fledged bank run occurring.

+ Germany stepped up demands that investors pay some of the cost of a 2nd Greek rescue.

+ Hong-Kong increased down-payment requirements on home loans to as much as 50% with foreign buyers having to deposit an additional 10%.

+ China’s May imports increased 28.4% vs 21.8% MoM. Exports were up 19.4% vs up 29.9% MoM.

+ Qaddafi’s son, Saif, has approached rebel leaders to negotiate an exit plan for his father.

+ Class-action lawsuit against Scotiabank for its overtime policy is going ahead.