Jan. 30, 2015

CANADA

  • Statistics Canada revised the employment data for the past 14 years. In 2014, Canada created 121,000 new jobs vs 186,000 previously reported. Employment creation in Ontario and BC were reduced 50%.
  • 84% of jobs created in 2014 came from the 4 western provinces vs 71% previously reported.
  • Alberta was revised to 63,100 (down 2,200); BC 16,500 (down 22,000); Saskatchewan 8,200 (down 6,600); Manitoba 14,200 (up 800).
  • Canadian November GDP contracted 0.2% M/M led by declines in manufacturing (-1.9%), oil and gas extraction (-0.7%) and mining (-2.5%).

UNITED STATES

  • Federal Reserve left interest rates unchanged this week but added that they can ‘be patient’ with the timing for any rate increases. They also added ‘international developments’ to their watch list.
  • US Q4 GDP grew 2.6% Y/Y vs consensus of 3.0% and Q3 5% Y/Y . For 2014 as a whole, GDP grew 2.4% vs 2.2% in 2013.
  • Q4 consumer spending grew 4.3%, the fastest since Q1 2006.
  • Gasoline prices have declined 43% since June 2014.
  • Q4 US homeownership fell to 64% (the lowest since Q2 1994).

REST OF THE WORLD

  • Euro area 2014 annual CPI fell to -0.6% vs the -0.5% expected.
  • Unemployment in Germany is 4.8%, Spain 23.7%, Italy 12.9%, Italian youth unemployment 42%.
  • Japan’s December CPI (excluding fresh food) rose 2.5% Y/Y vs 2.6% expected.
  • Russia’s central bank lowered its benchmark rate to 15% vs 17% today.
  • Denmark’s central bank cut its benchmark rate for the 3rd time in 10 days to -0.5% vs -0.35% (more negative) to discourage deposits and to reduce demand for their currency..

ENERGY

  • Baker Hughes weekly rig count for North America dropped 128 to 1,937 vs 2,393 in the same week last year.
  • OPEC January production rose to 30.37 million boe/d vs 30.24 million boe/d in December.

TIDBITS

  • Two Russian bombers were intercepted by British fighters over the English Channel on Thursday.
  • NATO countries have experienced 3x the amount of Russian activity in the skies in 2014 vs 2013.
  • Russia says nuclear arms will ensure military superiority over the West and they are committed to spending $286 billion over the next 5 years to modernize their military.
  • ‘Apple’, the brand, is now the top luxury gift in China.