pipeline capacity, says a new report from the C.D. Howe Institute. A lack of pipeline capacity for getting product to ma
Weekly Economic Headlines
FEBRUARY 2 - 9, 2018
Stock selloff overdue, say investors. The speed of last week’s global equity selloff and subsequent volatility put world markets on course for their worst week since the height of eurozone crisis. However, few seemed surprised about the pullback. Equity investors are looking at the recent declines as a healthy correction after a stellar start to the year. The downward move was sparked by rising bond yields, and exacerbated by the most recent U.S. wage data that pointed to quickening inflation, which would lead to higher rates and, in turn, rising borrowing costs for companies.
Pipeline capacity is major barrier to Canadian competitiveness. Canada's oil and gas producers are struggling to stay competitive with their U.S. counterparts because of the struggle to expand pipeline capacity, says a new report from the C.D. Howe Institute. A lack of pipeline capacity for getting product to market has a significant impact, associate director of research Benjamin Dachis said, estimating that the bottleneck cuts about $5 off the profits of every barrel of oil produced in an average western Canadian well. Canada has watched several pipeline projects evaporate in the last year, as the plummeting price of natural gas made new pipelines less economical.
Canada sheds most jobs since 2009. January’s 88,000 job decrease fell well short of economists’ forecasts for a gain of 10,000, and was the biggest decline since the global financial crisis of 2009, Statistics Canada said. The drop was driven by a record-breaking decline in part-time work, eclipsing an increase in full-time positions. The job market is coming off its strongest pace of growth since 2002 after creating more than 400,000 jobs in 2017. Economists said January’s drop was to be expected after such a strong year.
†Source: Bloomberg, data as at February 9, 2018.
Automation fills gaps in eastern Europe factories. While policymakers and economists in many parts of the world worry about robots displacing humans, companies across eastern Europe are ramping up investment in automation to cope with a labour shortage. Economists warn the labour shortage could cripple some of eastern Europe’s economies before the end of this decade, at a time when companies in the west are also complaining about the scarcity of workers. Hungary faces the biggest shortages but Czech, Slovak and Polish companies have also been affected, a survey by Austrian Erste Group Bank showed last month.
This document has been prepared by 1832 Asset Management L.P and is provided for information purposes only. Views expressed regarding a particular investment, economy, industry or market sector should not be considered an indication of trading intent of any of the mutual funds managed by 1832 Asset Management LP. These views are not to be relied upon as investment advice nor should they be considered a recommendation to buy or sell. These views are subject to change at any time based upon markets and other conditions, and we disclaim any responsibility to update such views. Information contained in this document, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and 1832 Asset Management L.P. is not responsible to update this information. To the extent this document contains information or data obtained from third party sources, it is believed to be accurate and reliable as of the date of publication, but 1832 Asset Management L.P. does not guarantee its accuracy or reliability. Nothing in this document is or should be relied upon as a promise or representation as to the future. Investors should consult their own professional advisor for specific investment advice tailored to their needs when planning to implement an investment strategy to ensure that individual circumstances are considered properly and action is taken based on the latest available information. ® Registered trademarks of The Bank of Nova Scotia, used under licence.
3905-2018-0209 WEH R1
