Tag Archives: unexpected

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

Military monopoly challenged

by Dr Manzur Ejaz

Excerpt;

Pakistan’s socio-political system has reached a critical stage where the competition or confrontation between institutions is leading to an inevitable but unexpected change. An overwhelmingly agrarian Pakistani society has evolved into a multi-layered complex body where new urban middle classes have matured enough to play a role. If the dominant institutions of the military and political elites do not rapidly adjust to the changing reality, an unprecedented and disastrous situation can develop.

Whatever way we cut it, the incidents of the last month compelled the military to come to parliament and explain itself to the legislators and the public. Despite the chiding posture of General Shuja Pasha, this was a new development. But then, Chief of the Army Staff (COAS) General Ashfaq Pervez Kayani issued a long rebuttal, a public criticism, after the 139th Corps Commander’s Conference. In this comprehensive statement, he reasserted the military’s monopoly over defining the ideology and policy of the state of Pakistan. If one dissects General Kayani’s statement, part of it is the military’s claim to define the country as an ‘Islamic’ state and other parts are operational policies as to how the country is going to be run.

What General Kayani and the army do not realise is that the military’s monopoly over the Pakistani state was the product of a set of historical factors that have substantially changed. Now, other institutions of the state are maturing to the level that a new inter-institutional balance has to evolve or the state will wither away. …

… In the last decade, the media, as an institution, was rising and having an impact on different sectors of society. The movement for the restoration of the independent judiciary also showed that a vital branch of the state was gaining enough maturity. The way the PML-N acted as an opposition party was also another sign of the strengthening of democratic forces. Despite the incompetent PPP government and its non-cooperation with the judiciary or with the genuine political opposition, it is becoming clearer that a realignment of institutional balance is underway. Therefore, the military is facing other sets of forces that are different from the 70s. In this situation, the military can unleash ruthlessness to suppress the emerging forces or concede to them as a fait accompli. Maybe the military has read the tea leaves as an ex-COAS, General Jehangir Karamat maintains, but it has yet to be seen how far the military can withdraw itself from civilian affairs.

To read complete article: Wichaar

Al-Qaeda had warned of Pakistan strike

By Syed Saleem Shahzad

ISLAMABAD – Al-Qaeda carried out the brazen attack on PNS Mehran naval air station in Karachi on May 22 after talks failed between the navy and al-Qaeda over the release of naval officials arrested on suspicion of al-Qaeda links, an Asia Times Online investigation reveals.

Pakistani security forces battled for 15 hours to clear the naval base after it had been stormed by a handful of well-armed militants.

At least 10 people were killed and two United States-made P3-C …..

Read more : ASIA TIMES

via Wichaar