Jul. 19, 2019

Canada

  • Canadian Consumer Price Index rose by 2% Y/Y in June vs 2.4% in May.
    • Gasoline prices fell 8.0%, the sharpest drop on record for June
    • Alberta’s Consumer Price Index rate is up 1.4%
  • Canadian retail sales dropped 0.1% M/M in May vs an expected gain of 0.3% led by a decline in food and drink due to poor weather.
    • Alberta’s retail sales shrank 1.7% M/M in May
  • Canada has fallen to the 13th most competitive economy in the world, its lowest ranking ever.
    • #1. Singapore, #2. Hong Kong, #3. United States
  • Teranet National Housing Price Index grew at 0.5% Y/Y (vs 2% inflation), its smallest gain since November 2009.
  • The interest rate used in ‘Canadian Mortgage Stress Test’ has fallen for the first time since 2016. The rate for new homes or changes of lender used is now 5.19% vs a previous 5.34%.
    • Same lender refinancing (change of terms) was down 12% in 2018 while renewals (no changes) with the same lender were up 16%
  • A minimum wage earner could afford a one or two bedroom apartment in just 24 Canadian neighbourhoods (of 795 examined).

Alberta’s Income, 2017

  • The median after-tax family income for Albertans in 2017 was $62,950 vs $52,330 across all of Canada, income grew 0.5% between 2014 and 2017 vs 7.2% for Canada.
  • Income fell in 10 out of 18 urban areas in Alberta between 2014 and 2017.
    • Edmonton median after-tax family income was $63,030 and Calgary was $63,830 in 2017
  • 74.9% of Albertans income in 2017 came from their employment, 8% came from dividends and interest.

Livestock

  • 60% of livestock breeds are at risk of extinction in 70 countries that the UN has risk status information on.
  • Pork producers in the US are losing $1 billion annually because of the trade war with China, costing them an annual $8 per animal.
  • Chinese hog inventories have dropped 26% Y/Y, due to the outbreak of a deadly virus in August 2018.

Tidbits

  • Amazon Prime Day sales (first 24 hours up 53% vs 2018) were more than 10x as much as was spent on Walmart and eBay, combined.
  • The EU has opened a formal antitrust investigation into Amazon centered around Amazon’s “dual role” as both a merchant and a market place.
  • Ursula von der Leyen has won parliamentary approval to become the first female European Commission President.
  • Elon Musk says Neuralink (allows paralyzed patients to operate computers with electrodes implated in their brains) is ready for testing.
  • Alert, Nunavut experienced a record-breaking heatwave topping 21C (July avg is 7C).
    • Heatwave is the equivalent of Toronto having a high of 42C