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  • 2016-12-02 15:39


    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.

  • 2016-12-02 12:05


    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.

  • 2016-12-02 10:24


    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 mount over the medium term as outstanding loans are repai

  • 2016-12-02 09:44


    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%.

  • 2016-12-02 08:44


    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.

  • 2016-12-02 08:41


    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 suggested by the unemployment rate.

  • 2016-12-02 08:31


    --Unemployment Rate at 9-Year Low
    --Net Jobs Revisions -2k
    --Labor Force Participation Rate Down a Tenth to 62.7%

    WASHINGTON (MNI) - The U.S. unemployment rate fell to a nine-year low of 4.6% in November as the economy added 178,000 jobs, likely good enough to satisfy the Federal Reserve as it prepares for an interest-rate hike this month. But an unexpected decline in average hourly earnings and the workforce participation rate cast a shadow over the report from the Bureau of Labor Statistics Friday.

    The unemployment rate matched a low recorded in August 2007 and is the lowest since May 2007, when it was 4.4%. It has hovered between 4.9% and 5.0% for much of the past year.

  • 2016-12-02 07:40


    LONDON (MNI) - The UK economy has performed better than expected since the June 23 referendum on European Union, a bank of England policy maker said Friday, noting continued consumer buoyancy behind the strength.

    "The main source of this upside news to activity has been the buoyancy of consumers. They appear to have kept calm and carried on spending on the high street, in the car showrooms and in the estate agents," Chief Economist Andy Haldane said in a speech to businessmen.

  • 2016-12-02 04:50


    By David Robinson

    LONDON (MNI) - The Markit/CIPS UK Construction Purchasing Managers Index rose to 52.8 in November from 52.6 in October, the third consecutive monthly expansion.

    Respondents said that economic uncertainty was pushing down on growth but order books rose. With property prices elevated and mortgage rates at record lows the construction sector reported that housebuilding was the strongest growing sector while civil engineering was the worst performing one, suggesting infrastructure spending has yet to take off.

    Employment in the sector increased again in November but input costs rose, hitting their highest level for five and a half years.

  • 2016-12-02 03:03


    --Fears grow of correction as investors head for the exits

    BEIJING (MNI) - When everyone heads for the exit at the same time, there's a risk of injury in the stampede. Chinese bond investors are getting a taste of just how that feels as they scramble to offload their holdings in what could turn out to be a nasty correction.