CANADIAN EMPLOYMENT – SURVEY PERIOD MARCH 15TH TO MARCH 21ST
- Canada lost 1,010,700 jobs in March (474,000 full time)
- Unemployment rate up 2.2% to 7.8%
- Quebec had the largest increase in unemployment rate, up 3.6% to 8.1%
- Alberta lost 117,100 jobs in March (43,500 full time)
- Unemployment rate up 1.5% to 8.7%
COVID-19 UPDATE
- Alberta Premier Jason Kenney provided an update on Alberta’s response to COVID-19 on April 7th:
- Probable case projects a peak of 800,000 cases peaking in mid-May
- Number of ‘probable’ deaths range from 400 to 3,100
- In an ‘elevated’ scenario, there could be over 1,000,000 infections and between 500 and 6,600 deaths
- Physical distancing and hand washing are working and must be maintained
- Relaunch Strategy (once approved by Chief Medical Officer):
- Aggressive system of mass testing (up to 20,000 tests per day) to track infections and close contacts
- Strong border screening at airports
- Strictly enforced quarantine orders
- Encourage use of masks in crowded public spaces
- Companies are pivoting production:
- CAE to make 10,000 ventilators (currently makes flight simulators)
- Medicom will begin manufacturing N95 masks in Canada
- Food manufacturers are limiting production to their most popular items
FEDERAL RESERVE UPDATE – APRIL 9, 2020
- Federal Reserve Chairman Jerome Powell: Path of economy will depend on COVID-19
- Recovery is expected in the second half of 2020. Q2 is likely to be very weak
- Inflation is not the “first order concern” right now
- Many people need direct fiscal support
- Chair Powell does not believe US banks need to suspend dividends
OIL OVERSUPPLY AS GLOBAL DEMAND CONTINUES TO DECLINE
- OPEC and its allies met by video conference today and have the ‘outline’ of a deal to cut production by 10 million barrels a day.
- These decisions will form the basis of Friday’s discussions on further contributions from G20 nations
- US involvement is seen as key
- Oil demand in India has collapsed as much as 70%.
- Some American refineries face closure as consumption has declined to the lowest level in at least 30 years.
- US Energy Information Administration said that US fuel demand has dropped about 1/3 in the last 3 weeks.
- The largest demand decline on record occurred last week (down 3.4 million barrels/day)
- US production declined 600,000 barrels/day in the week ending April 3rd