Economy

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The World Bank warn the steep growth of shadow banking could trigger a debt crisis in China in it's October report on the East Asian and Pacific economies. They see Chinese debt levels and it's "shadow banking" as one of the greatest threats to regional prosperity.

Apparently Russian President Vladimir Putin has not decided he will run for re-election in March 2018. For a guy who hasn't relinguished any power since he headed the KGB this seems doubtful.  Also today Senate Intelligence Committee head Burr said "Can certifiably say no vote totals were affected as a result of Russia" 

Home sales in the Greater Toronto Area fell 35% in September year on year, however the average price rose 5.9 % from CAD $732,039 in August for the first month-over-month increase since the April  record high of  CAD $918,285 the Toronto Real Estate Board said Wednesday.

Eurozone August retail sales saw the worst decline almost two years, however the Euro shrugged off the bad news to move higher as it showed it's teflon qualities after ignoring the Catalonia referendum crisis in Spain.

At all time highs U.S. stock markets have put it all on red on Tax reform with the Trump Adminstration. U.S. Treasury Secretary Mnuchin is out with the spin on the plan and his outlook. Highlights on states, growth and debt follow. The big one, he wants the tax cuts to be retrospective.

We saw the third estimate of U.S. second quarter GDP Thursday which was higher at 3.1% up from the second estimate of +3.0% and the first estimate of +2.6%. However corporate profits after tax were revised to +0.1% from +0.8% is worrisome particuarly with stock markets at all time highs.

The British Prime Minister speaking at the Bank of England conference reminded of the nature of unintended consequences when actions to solve one problem can create others. She is talking about Brexit but could well be allusing to the Boeing-Bombardier fallout.

The NAFTA renegotiation talks completed their third round today in Ottawa, Canada. No surprise the reporters favorite topic, the US imposing 220% duty on Bombardier planes. Negotiators from Canada, Mexico and the U.S. were all positive and look forward to round 4.

U.S. President Trump may be the most divisive President in History but the Federal Reserve shows Americans are getting weathier with him. U.S. household wealth increased in the second quarter to yet another record by $1.7 Trillion to $96.2 trillion, following a 2.327 Trillion gain in the first quarter. 

Global GDP growth is projected to increase to around 3.5% in 2017 and 3.7% in 2018 from 3% in 2016,slightly improved since the OECD’s June Economic Outlook. The upturn has become more synchronised across countries. Investment, employment and tradeare expanding.

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