• Friday, December 2, 2016 - 15:39 Canada Week Ahead: Housing and the BOC Amid Rising Yields 0

    By Yali N'Diaye

    OTTAWA (MNI) - The coming week in Canada will see data on the housing front and the state of exports, but the focus will be on the Bank of Canada interest rate announcement on Wednesday in a global context of rising yields and ongoing political uncertainty.

    Analysts in a Market News International survey expect the BOC to leave its overnight rate target at 0.50% for the last meeting of the year.

    On the data front, the BOC will keep its eyes on the export performance when Statistics Canada publishes the trade balance report on Tuesday. Analysts expect the deficit to narrow from C$4.1 billion in September to C$2.0 billion in October.

  • Friday, December 2, 2016 - 12:05 ANALYSIS: Italian Referendum, China Reserves May Rattle or Not 0

    By Vicki Schmelzer

    NEW YORK (MNI) - Under normal circumstances, with U.S. non-farm payrolls now in the rear-view mirror, market focus would turn to next Thursday's European Central Bank decision as the next key event to potentially rattle risk sentiment.

    But ahead of the ECB meeting, the Italian Referendum taking place Dec. 4 and the release of Chinese reserve data, likely Dec. 7, could lead to a shift towards risk aversion, depending on the outcome.

  • Friday, December 2, 2016 - 10:24 BBK Bd Member: Low Int Rates Are Serious Challenge For Banks 0

    By David Barwick

    FRANKFURT (MNI) - Low interest rates present a significant challenge to the profitability of banks, Bundesbank Board member Andreas Dombret said Friday.

    According to a speech text distributed by the Bundesbank, Dombret, speaking in Rio de Janeiro, warned of increasing pressure on margins with the persistence of low rates, but also of the possible effect of the end of the low-rate environment.

    "Irrespective of their origin, the very low interest rates pose a serious challenge for profitability in the financial sector," he said, particularly for banks that rely on net interest income.

    Although net interest income "hasn't been affected much so far," he said, "the pressure on margins is going to...

  • Friday, December 2, 2016 - 09:44 ANALYSIS: Nov NFP Odd Duck; Dec Fed Hike Still On Track 0

    By Vicki Schmelzer

    NEW YORK (MNI) - Friday's release of U.S. November non-farm payrolls was an odd duck, with a solid enough headline reading and a drop in the jobless rate, but also an unexpected decline in average hourly earnings that suggested inflation, despite recent commentary to the contrary, is not yet a concern.

    November non-farm payrolls rose by 178,000, very close to MNI's median estimate of 180,000. There was a net 2,000 decline in backward revisions to the prior two months.

    The unemployment rate of 4.6% matched a low seen in August 2007 and was the lowest since May 2007, when the jobless rate stood at 4.4%.

  • Friday, December 2, 2016 - 08:44 StatCan Text:Canada 3Q Labor Productivity +1.2% vs 2Q -0.2% 0

    OTTAWA (MNI) - Following is the text of a report published Friday by Statistics Canada about labor productivity, hourly compensation and unit labor costs in the third quarter 2016:

    Labour productivity rises following a decline in the second quarter

    Labour productivity of Canadian businesses rose 1.2% in the third quarter, after declining 0.2% in the second quarter.

    Although this was the highest rate of growth since the second quarter of 2014 (+1.9%), the increase in productivity reflects a rebound in business output following a decline in the second quarter. Hours worked continued to decrease, but at a slower pace than in the previous quarter.

  • Friday, December 2, 2016 - 08:41 Analysis: Canada Nov Employment +10.7K, Details Not As Strong 0

    By Yali N'Diaye

    Ottawa (MNI) - The Canadian economy added jobs for the fourth consecutive month in November, when employment rose 10,700, Statistics Canada reported Friday.

    A 38,100 decline in unemployment helped bring down the unemployment rate by 0.2 percentage point to 6.8%.

    The participation rate declined to 65.6% from 65.8%.

    The two headline figures topped analysts' expectations in a MNI survey, which had centered on a 10,000 decline in employment with the unemployment rate remaining at 7.0%.

    However, details were not as strong as the headline figures suggested, comforting the Bank of Canada's view that despite the labor market resilience, there is still more economic slack than...