As the Senate launches only the third impeachment trial of a president in history, Donald Trump is a world away as he was speaking at Davos, delivering its opening remarks and pumping his own tires along the way. He noted that “the United States is in the midst of an economic boom the likes of which the world has never seen before”. We’ll not argue that the market has had quite a run, or that unemployment is at a very low level, but it's hardly booming. GDP growth remains anemically low.
While climate change and ‘stakeholder capitalism’ are taking center stage at Davos, it is ironic that the world’s most powerful leaders including state and company heads preferred mode of travel is private jet polluting 18,090 metric tonnes of CO2 for the ‘sustainable world’
. Funny enough Davos is pushing for “greener’ fuel for private jets leaving the world economic forum
. Yea, that’s sure to address the issue. How about carpooling? Or better yet, jetpooling. Did you know that Davos secretly ranks all attendees on a 7 level scale. Quarts details the breakdown of exactly who is attending,
the majority of attendees are top executives.
With the U.S. markets open today, the void of market moving news should abate, especially with the Senate impeachment now underway. The fun will start at 1pm EST. But this isn’t necessarily a good thing, futures are lower ahead of the open. Asian shares are leading to the downside, thanks to rising fears of the mysterious new virus emanating from China. This relative of SARS has already infected 224 people and killed six
. The Hang Seng is lower by -2.8% and the CSI 300 is off by -1.7% as the ailment is seen more infectious than previously thought.
The Canadian dollar is off in trading this morning. Weaker than expected manufacturing sales numbers aren’t helping, but most of the weakness occurred overnight. After quickly rising at the end of the year, the loonie sold off some but has now been consolidating over the past couple of weeks in an extremely tight range, detailed in the chart below. While we expect further weakness, this chart pattern should be carefully observed, as the eventual breakout will signal the direction of the next trend. Chartists be on alert!
Canadian parliament is resuming next week, and ratifying the new NAFTA is slotted as a top priority
. Both Mexico and the US have already ratified the agreement, and it’s looking like the Conservatives will partner with the Liberals to push this legislation through. Any issues with ratification would be met with unhappy markets, as a ratified USMCA deal would allow corporations a more clear picture when planning capital expenditures. On top of trade, gun regulations will be on the table as the federal government looks to ban assault style weapons via a buy back program, and give municipalities the power to ban handguns at a local level. Diversion
: Amazing drone shot of a huge dust storm over Australia.
Giant spiders, fires, Foster’s and now this. No thanks.