Tag Archives: declined

Canadian dollar falls after highest job losses since recession 4 years ago

Canadian Dollar Tumbles After Unexpected March Employment Loss

By Ari Altstedter

The Canadian dollar fell in its biggest decline in nine months against its U.S. peer after the nation unexpectedly lost jobs last month by the most since the last recession four years ago.

The currency declined against 13 of its 16 major peers as Canada had 54,500 fewer jobs in March, compared with the 6,500 gain predicted in the median estimate of a Bloomberg survey of 24 economists. The nation’s jobless rate increased to 7.2 percent from 7 percent. The U.S. added 88,000 jobs in March, versus estimates of a 190,000 gain. The Bank of Canada’s March 6 policy statement called for the economy to “pick up through 2013” on its way to 2 percent annual growth.

“Huge miss on both numbers, but particularly the Canadian number after many months of surprisingly strong employment data, we’ve finally seen some give back, so pretty swift reaction for the Canadian dollar,” said Blake Jespersen, managing director of foreign exchange at Bank of Montreal, by phone from Toronto. “There’s a lot more room for this to run, I think this is just the beginning of what could be a series of weaker employment numbers in Canada.”

The loonie, as the Canadian dollar is known for the image of the C$1 coin, fell 0.5 percent to C$1.0176 at 5 p.m. in Toronto. Earlier, it fell 1.1 percent to C$1.0236 per U.S. dollar, the largest drop since June 28. One loonie buys 98.27 U.S. cents.

Bonds Gain

Canada’s benchmark 10-year government bonds rose, with yields falling four basis points or 0.04 percentage point to 1.75 percent, touching the lowest level since Dec. 11. The 1.5 percent security maturing in June 2023 rose 36 cents to C$97.68.

Crude oil, the country’s biggest export, fell 0.3 percent to $93.02 per barrel in New York, after touching its lowest point since March 7. The Standard & Poor’s 500 Index of U.S. stocks fell 0.4 percent.

Canada’s jobs figures brings the labor market more in line with other parts of the economy, where output growth slowed to a 0.6 percent annualized pace in the fourth quarter and inflation has lagged the central bank’s 2 percent target since May. Last month’s figures mean Canada posted a net loss of 25,700 jobs in the first three months of the year.

’Ugly Across’

“It was ugly across the board, there wasn’t one redeeming feature for the Canadian employment report,” said Mark Frey, chief market strategist at Cambridge Mercantile Group, a corporate currency broker, by phone from Victoria British Columbia. “When you look at the overall employment figures for Q1 in Canada, you’re seeing a pretty bleak outlook that has turned almost on a dime from the last five months of 2012.”

A separate report showed Canada recorded its 11th straight merchandise trade deficit in February, the longest streak in at least 25 years, with the shortfall unexpectedly widening as exports of metals declined.

The deficit of C$1.02 billion ($1 billion) followed a January figure that was revised to C$746 million from C$237 million, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg forecast the string would end with a C$100 million surplus, based on the median of 21 forecasts.

“Obviously disappointment on both sides of the border,” said David Tulk, chief macro strategist at Toronto-Dominion Bank (TD)’s TD Securities unit by phone from Toronto. “The labor market is sort of catching up to the wider economic backdrop that we’ve always argued is still quite subdued, so this helps a little bit.” ….

Read more » Bloomberg
http://www.bloomberg.com/news/2013-04-05/canadian-dollar-extends-loss-after-unexpected-march-jobs-decline.html

CBC – Canadian quality of life hammered by recession

Index shows turnaround in GDP growth no boost to quality of life

Canada’s economy may well be muddling through, but on a more personal level, Canadians generally are not, a new study of well-being suggests.

The Canadian Well-being Index, led by researchers at the University of Waterloo, shows that quality of life in Canada deteriorated by 24 per cent between the onset of recession in 2008 and 2010.

Canada’s main economic indicator, gross domestic product, only declined by about 8.3 per cent over the same period and began to make a turnaround by the end of 2010. ….

Read more » CBC
http://www.cbc.ca/news/canada/story/2012/10/23/well-being-index-canadians.html

Hopelessness to doom: Pakistan’s journey

Pakistan

by Malik A. Rashid

BBC reported, “The US is so concerned about security in Pakistan that it is considering plans to enter the country to prevent extremists getting hold of nuclear material”. According to Senator McCain, Pakistan’s ISI has connections with the Haqqani network. In his confirmation hearing Lt. Gen. John Allen said he is aware that explosive devises used against American forces in Afghanistancome from Pakistan. Adm. McRaven thinks Pakistanis know where Mulla Omar is. So, the US-NATO has enemies in Pakistan in their cross-hair.

But the war is not the root cause of the predicament Pakistan finds itself in. Declared #12 on the list of failed nations, Pakistan is the 3rd most dangerous country for women. Out of 70 million between 5 to 19 year old Pakistanis, only 30 million go to school. On education and health care together, government spends about 1% of the GDP. Pakistan’s rulers prescribed a low quality education for their public school system to keep commoners from joining the ranks of army officers and bureaucrats.

US have cut aid to Pakistan. Installment of IMF’s loan was declined because the government could not raise taxes. Pakistan’s economy grew by 2.4% in 2010-11, slower than Somalia’s economy which grew 2.6%. Population of the cities continues to rise; so does joblessness.

Since 75% of supplies to US and NATO troops in Afghanistan will be re-routed through North of Afghanistan by the end of this year, not only the war has turned unrewarding for Pakistan’s rulers, it challenges their power and state’s existence.

Army relied heavily on proxy-warriors to influence other countries in the region and manipulated international aid through terrorism, while the generals indulged in enriching themselves. The business empire of the Military Inc. continued to grow at the expense of dwindling electricity supplies while millions of citizens fell below the poverty line. A conflict with the world-powers has shaken the brazen and brutal power structure of Pakistan. …

Read more → ViewPoint