July, 6, 2018

Employment data

  • Canada added 31,800 jobs in June (22,700 part-time) vs 20,000 expected; unemployment rate 6% vs 5.9% in May.
    • Alberta added 2,000 jobs in June; added 2,900 part-time and lost 900 full-time; unemployment rate 6.5% vs 6.2% in May.
  • US added 213,000 jobs vs 195,000 expected; unemployment rate 4% vs 3.8% expected.
    • Average hourly earnings increased 2.7% Y/Y.

Housing

  • June Toronto home sales up 17.6% M/M and 2.4%Y/Y.
    • Average price $807,871, up 3.3% M/M and 2% Y/Y.
    • Q1, Toronto average rent up 11% Y/Y to $2,206.
  • June Vancouver sales down 14% M/M. Properties for sale up 40% Y/Y, highest in 3 years.
  • Vancouverites need almost 88% of their income to buy a home, Toronto 74%, Canadian average 48%.

Crude

  • Last week, US imported a record 3.73 million bpd of crude from Canada, largest volume since June 2010.
  • Saudi Arabia’s oil output increased by 330,000 bpd last month to 10.489 million bpd, largest increase since 2013.
  • President Trump’s tweets on oil got a backlash from Iranian OPEC Governor, who pointed out that those tweets “increased the prices by at least $10. Please stop this method”.

Trade

  • US exports to China: 45.7% aerospace, 17.1% electronics, 12.7% information and communication, 10.4% life science, 8.3% flexible manufacturing, 5.8% other.
  • US and China have implemented the expected tariffs on $34 billion of goods. Reminder, US said if China retaliated they would add more tariffs.
  • Proposal has been made for China and the EU to launch joint action against the US at the WTO.
  • Regulators are blocking Chinese takeover attempts in the US.
  • Decision by a court in China temporarily bans some sales by Micron Technology Inc., the US maker of memory chips essential to most smartphones.

Tidbits

  • A single parking spot in Hong Kong’s luxury district was sold at a record USD$765,000.
  • Federal Reserve minutes indicated continued gradual hiking of interest rates amidst “a strong economy”, and expressed concerns about trade headwinds.
  • China has issued a travel advisory to their citizens travelling to the US, citing issues like public shootings, robberies, expensive medical bills, searches and seizures by customs agents, as well as natural disasters and telecommunications fraud.
  • GM has created its own ride-hailing platform and built one of the largest charging stations in the US, in a parking lot near San Francisco’s Embarcadero.
  • Brits are set to wager an estimated USD$3.31 billion on the World Cup, a 50% increase from the previous tournament.