Notes From The Desk
Notes From The Desk | BoC Meeting: We Aren’t There Yet Sept 07 2022
The Bank of Canada (BoC) hiked 75bps this morning, bringing the overnight rate to 3.25% The BoC squashed any hope that they were finished by making it clear that ‘policy interest rates will need to...
Notes From The Desk | Non-Farm Payrolls, A Sigh of Relief Sept 02 2022
Today’s US employment data shows that unsustainable growth is moderating: 315k jobs created (318k expected) Unemployment rate moves up 2 ticks to 3.7% (labour force rose by 800k as more...
Notes From The Desk | Jackson Hole – Higher for Longer Aug 26 2022
Chairman Powell's much-anticipated speech was short and to the point this morning. His effort to keep inflation expectations under control was on full display as he forcefully aligned...
Notes From The Desk | Employment – Hot and Cold Aug 05 2022
The employment picture in Canada and the US seems to be diverging. Here are the numbers: US Non-Farm Payrolls: 528k jobs added (250k expected) Monthly wage growth 0.5% (0.3% expected)...
Notes From The Desk | A More Flexible Fed Jul 27 2022
The Federal Reserve raised the target rate by 0.75% to the range of 2.25-2.5%. Chairman Powell confirmed that this is close to neutral. From the press conference: The FOMC is now data-dependant, so...
Notes From The Desk | BoC Shock and Awe Jul 13 2022
‘Shock and awe’ is a military tactic where overwhelming force is employed to destroy an enemy’s will to fight. Today the Bank of Canada (BoC) deployed the central bank version by delivering a...
Notes From The Desk | Cry Havoc and Let Slip the Dogs of War Jun 15 2022
Cry Havoc and Let Slip the Dogs of War. Chairman Powell and Co delivered a strong message that the war on inflation was not one the Fed would lose as they delivered a 75-bps rate hike today and...
Notes From The Desk | A Bond Play on the Rogers/Shaw Acquisition Jun 06 2022
A Bond Play on the Rogers/Shaw Acquisition. In March 2022, Rogers issued bonds with an interesting clause referred to as Special Mandatory Redemption. If the merger is not concluded by December...
Notes From The Desk | Not On Autopilot May 12 2022
Not On Autopilot – The Bank of Canada amidst the perfect storm. In yesterday’s speech (“the perfect storm”), Toni Gravelle, Deputy Governor of the Bank of Canada shared some insights into the BoC’s...
Notes From The Desk | US CPI | Hotter Than Hoped May 11 2022
US CPI |Hotter Than Hoped. Although US CPI decelerated in April, it remains far too high: Headline CPI rose 0.3% (0.2% expected) leaving the annual rate at 8.3% (8.1% expected) Core prices rose 0.6%...
Notes From The Desk | The Fed’s Playbook Leaked May 05 2022
Notes From the Desk | The Fed's Playbook Leaked Unlike the Supreme Court's abortion ruling, which was leaked in secret, the Fed’s playbook was leaked by Chairman Powell himself. Today’s meeting was...
Notes From The Desk | CAD CPI Apr 20 2022
Notes From the Desk|CAD CPI - Surprised But Not Surprised CAD CPI for March blew past expectations coming in at a hot 1.4% increase for March (1% expected) bringing the YoY change to 6.7% (6.1%...