Economy

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Treasury Secretary Steve Mnuchin speaking before the House appropriations committee said that if NAFTA negotiations are successful the steel tarriffs will not apply to Canada or Mexico. This is largely in line with what President Trump said yesterday.

The 2015 Liberal platform said they would balance the budget in 2019 and have a $1 billion surplus. WIthout the budget balancing itself, $18.1B is the projected deficit for 2018-19.

Warning bells from the housing market with US January new home sales coming in at 593K, much lower than 648K expected from 643K last month (revised up from 625k). In percentage terms sales were -7.8% an expected +3.6% rise.

Wages are expected to rise in Australia over the coming year as the world economy picks up. The RBA noted in their latest rate move that employmernt growth has been strong. In Q3 wages rose .5% in Australia, and expected another .5% in Q4. 

RBA Governor Philip Lowe speaking to the House of Representatives Standing Committee on Economics Friday said the global upswing is helping China's and Australia's economies as trade increases and commodity prices rise.

US January CPI +0.5% m/m vs +0.3% expected, a fail with key inflation for the stock marlet and clearly all the QE is flowing in and now concerns are the Fed is behind the curve, or was this a catch up number? S&P Futures fell over 40 handles instantly on the fail but then bounced 50!

With all the noise from Wall Street execs and their bonuses the lanscape isn't looking so shiney for main street. We have had the stress of the biggest stock market point crash ever and now we see 30 year loans are at their highest since Jan 2014. no wonder applications 4.1%

Canada employment fell by 88,000 in January. The unemployment rate increased by 0.1 percentage points to 5.9%.

Moody's issued a report on the U.S Debt structure saying America's stable credit profile is likely to face downward pressure in the long-term due to "meaningful" fiscal deterioration and a widening Federal budget deficit. 

U.S. Stock Markets are at all time highs, tax reform has seen companies issue bonuses and pay rises.  January's Employment report comes with high expectations. After Yellen's last FOMC hourly earnings are the number that should dictate interest rates.

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