Feb. 6, 2015

CANADA

  • Canadian January employment increased 35,000 vs 5,000 expected. The unemployment rate declined to 6.6% vs 6.7%.
  • Part-time employment increased 47,000 and full time was unchanged.
  • Alberta added 14,000 in January. For the past 12 months Alberta added 67,000 jobs, the fastest provincial growth.
  • Canadian December building permits rose 7.7% vs 5% expected. Residential permits were unchanged and non-residential permits rose 22.9%.

McKinsey report on Debt

  • Canada had the 2nd largest jump in household debt-to-income ratio from 2007 to Q2 2014 of 47 countries aside from Greece. Other countries at risk: Netherlands, Sweden, Australia, Malaysia, Thailand and South Korea.
  • Canada now has a larger household debt burden than the US or UK at the peak of the credit bubble.
  • Q3 2014 Canadian debt-to-income was 162.6.

US EMPLOYMENT

  • US added 257,000 jobs last month and data for November and December were revised up 147,000.
  • January was the 11th consecutive month of job gains over 200,000, the longest since 1994.
  • Unemployment rate rose to 5.7% vs 5.6%.
  • Wages increased 12¢ vs a decline of 5¢ in December, up 2.2% Y/Y.
  • Manufacturing added 22,000, construction 39,000, while oil and gas extraction lost 1,900.

EUROPE

  • Ukraine devalued its currency, the ‘hryvnia’ by 33% today, bringing the official rate closer to the black market level.
  • ECB is no longer allowing Greek banks to use Greek government bonds as loan collateral.
  • Siemens cut 7,800 jobs (2% of their global workforce), 3,300 will be cut in Germany.
  • 8 European countries are expected to move closer to deflation this year, among them Bulgaria, Croatia, Greece, Poland, Spain, Sweden and Italy.
  • German Chancellor Angela Merkel and French President Francois Hollande met Russian President Vladmir Putin today and are vowing tougher sanctions unless he agrees to end the escalating violence in Ukraine.

TIDBITS

  • Saudi Arabia’s finance minister said the country has prepared for a period of cheap oil and expects it to continue for ‘quite some time’.
  • Canadian Pacific Railway reduced their expect crude-by-rail oil volumes to 140,000 carloads from 200,000 last year.
  • It costs $15 to $22 to move a Canadian barrel of oil to Texas by train vs less than $12 by pipeline.
  • 2014 World food prices slid to the lowest level since 2010 as grain costs fell due to ample world supplies.