Daily Review – Monday 24-Oct-2016

Daily Review – Monday 24-Oct-2016

US – FOMC Member Tarullo Speaks

Speaking at the Columbia Law School Conference, Daniel Tarullo said business and law schools should place more emphasis on the liability side of the financial sector, rather than the capital side.

Tarullo pointed out that the US FED may introduce more measures to test if big banks’ capital and liquidity levels are strong enough to secure the financial system.

Nothing was said nor any hints were given about the long awaited rate hike.


Canada – Core CPI M/M

Canadian core CPI rose to a seasonally adjusted 0.2% in September, from 0.0% in the previous month. This was in line with what the market were expecting to happen.


Canada – CPI M/M

The Canadian CPI increased 0.1% in September, after declining 0.2% in August.

The recreation, education and reading index (+0.4%) recorded the largest gain in September, while the food index (-0.4%) posted the largest decline.


Canada – Core Retail Sales M/M

Canadian core retail sales remained unchanged in August at a seasonally adjusted 0.0%, from -0.1% in the preceding month. Analysts expected the Canadian core retail sales to rise 0.4% last month.

Canada – Retail Sales M/M
Canadian retails sales were down 0.1% in August.
Lower sales in the categories motor vehicle and parts dealers, and general merchandise stores were the main contributors to the decline. Excluding these two subsectors, retail sales were up 0.2%.

Sales were down in 7 of 11 subsectors, representing 57% of retail trade.


Japan – BOJ Govenor Kuroda speaks

The most anticipated news in Asia of Friday 21 October was probably Kuroda’s speech at the Japan Summit hosted by the Economist.

Kuroda stated that he didn’t see any immediate reason to scale down the BOJ’s asset purchases as it now is shifting its focus on targeting interest rates.

The BOJ also stated that it’s current target for a 2% inflation rate by March 2018 might take a few more months longer than expected.


UK – Public Sector Net Borrowing

Government borrowing rose by more than expected to £10.1bn in September, £1.3bn higher than the same month last year.


EU – Consumer Confidence

October’s reading of the European consumer confidence remained unchanged at -8 compared to September.


Upcoming Data Releases

Another quiet day expected for Monday 24 October with no real high impact data being released. Some industrial and manufacturing numbers will be released in the US with the Empire State Manufacturing Index and the Capacity Utilisation Rate being the most interesting leading indicators.

Daily Review - Tuesday 25-Oct-2016 Daily Review - Friday 21-Oct-2016