Feb. 6, 2015


  • 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 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.


  • 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.


  • 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.