Markets appear to like the news over the weekend that China is trying to tackle the IP issues. It will raise penalties on offenders and is hoping that this is enough of a goodwill gesture to smooth over a sticking point in trade talks. Though we’ve been thinking that markets have already priced in a deal, every new piece of news continues to push them higher.
The U.S. dollar index is slightly higher, and the loonie continues to fade as trade talks progress. The rail strike is also driving a general uneasiness with potential disruptions across a number of industries a main concern
. 2YR differentials have also come back in slightly. Big Six continue to run
After coming off a decent amount in the summer Canadian banks are back. The Bix Six have outperformed the TSX by about 6% off of the low in August
. A tail wind from macro sentiment has helped, as has the continued effort to find efficiencies to keep costs under control. The retail sales beat from last Friday should also pare down concerns on the Canadian Consumer. Not all surprises are good
Poloz noted in an interview that the Canadian economy is doing well, and the BoC remains stimulative. While they may view current rates as being below ‘neutral’, the fact that the central bank has not joined the major developed banks in cutting interest rates leaves Canada at risk of falling behind. Taking a look at the Citi Economic Surprise Index, Canada has had more misses than beats in recent weeks. With key jobs and manufacturing data out over the next week, we’ll get to see rather soon if the Canadian economy can maintain its standing relative to other majors. See our Chart of the Day
. Find me something nice to buy
With markets around all-time highs, it is a lot harder to find compelling investments when you’re looking for something on sale. Typically, you start hearing a lot about relative value, or growth at a reasonable price to justify higher multiples. If you look hard enough you can always find something interesting as Fortune points out, there’s always a bear market somewhere
. Energy and mining stocks are still cheap, and value itself as a factor is continuing to gain interest. Ok Boomer
Why boomers and not millennials are fueling the urban apartment surge. (Curbed
) According to the Urban Land Institute’s latest Emerging Trends Report, urban growth has come from two distinct age groups. Over the last decade, the urban population of 20- to 29-year-olds grew by 4.7 million. But during the same time, the number of 55- to 64-year-olds living downtown grew by 10.3 million. Diversion
: Bloomberg shares 33 travel hacks
. Anyone else feeling the travel bug recently?