Futures are up this morning, as there are some earnings on deck as well as some positive developments both on the trade front. Both sides continue to say that talks are progressing towards a partial trade deal, as China’s top negotiator offered some positive signals
over the weekend. With the latest Chinese growth numbers coming out rather dismal, it’s no wonder they also want to try to work things out.
We’re seeing a continuation of recent trends in the currency market. The U.S. dollar continues to weaken against most pairs (more on the US dollar below). The British Pound has reached its highest level since May on Brexit optimism.
Bloomberg notes that he may have enough votes to secure backing. The loonie also continues to fly higher.
It’s election day in Canada, please go out and vote. For polling station times and everything else you need to know, CBC is there to help you
. Should be interesting to see how it plays out they also provide this round up of federal party platforms for those who are still undecided
Should be an interesting week for Canadian markets, with the election and the ramp up of earnings season. This Bloomberg piece notes that growth may be running out of steam
for many Canadian companies, with growth expectations running below previous quarters. Hindering growth has been lower oil prices as well as weaker real estate markets. The good news, at least, is it seems real estate has been strengthening recently, as noted in this somewhat positive economic article from CBC. 7 reasons Canada could escape economic doom: Don Pittis
.After a slow patch Canadian houses are selling again. And while they may have reconsidered for a while, there are signs that the condo builders who have filled skylines with cranes are making too much money to stop. Some have pointed to the recent slump in New York condo prices as a warning, but there are reasons why Canadian cities are different.
Say it ain’t so! China’s pig crisis is pushing up bacon prices around the world
. By the end of next China’s swine heard will fallen by around 40% compared to levels last year thanks to African swine fever. Given that they are the worlds largest pork market by a significant margin, this is driving up prices for everyone. Here’s a great graphic from the article. Looks like Eastern Europe is the place to be.
We’re always on the lookout for potential bubbles and mispriced assets. While equity markets might have some excessive froth, they are far from a bubble. The weed bubble looks to have popped from a year ago, but there just might be a bubble in streaming rights. The race for content by streaming services has pushed the price up to ridiculous levels for any series that has a plenty of content and a loyal fanbase. South Park is reportedly nearing a $500 million deal for streaming rights
With earnings season back in action, currency traders have been noticing a lack of currency hedging at the corporate level
. Although weakening over the weekend, the USD has strengthened 6% against the Euro relative to Q3 last year, providing USD multinational companies with depressed foreign earnings in USD terms. For companies that quantify the effect on their results from currency, the costs in Q2 totaled just over $21 billion. The lack of hedging could be a result of two things: complacency at a corporate level, or a belief that the USD is overvalued. We recently put a partial hedge on the USD within our North American dividend mandate (meaning we see risks of the USD weakening).
As the global economy continues to develop, further integrating technology into our daily lives the demand for energy is rapidly increasing. Growth in renewables is projected to spike in the next 5 years
, and its electricity generation’s capacity is expected to equal up to that of the entire United States. With costs rapidly decreasing for solar panels, solar technology has the looks to become the leader in renewables technology, likely to account for 60% of the growth pushing renewables to 30% of global power generation by 2024.Diversion:
Turns out invisibility cloaks might become a thing of the future. Check out this material a Canadian company developed to hide whatever is behind it
(to clarify - it is not opaque).