A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web.
U.S. officials have announced steep tariffs on Bombardier jets that more or less prohibit sales of the C-Series planes in the world's largest economy. Once we get past the rich irony of Bombardier complaining about a foreign government protecting of their aerospace industry, the issue is more mixed. Boeing is clearly subsidized by U.S. Defense Department,
"Bombardier gets a taste of 'America First.' What comes next?" – Maclean's
"What analysts say about a wounded Bombardier" – Babad, Report on Business
"Canada says steep U.S. duty aimed at 'eliminating' CSeries from U.S." – Reuters
"Bombardier Takes Twin Hits in U.S. Jet Levy, Rival Rail Deal" – Bloomberg
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An in-depth report on the domestic housing market by Scotia Economist Derek Holt argues that the peaks in the Canadian housing market and consumer spending are behind us,
"@SBarlow_ROB Scotia: "Canada Is At A Cycle Top In Housing" – (research excerpt, chart) Twitter
"@SBarlow_ROB BNS: "Canada Is At An Exhausted Point In The Consumer Cycle" - (research excerpt, chart) Twitter
"@SBarlow_ROB * winces * (BNS again) - (research excerpt, chart) Twitter
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Bloomberg cites Gluskin Sheff economist David Rosenberg to argue that the Bank of Canada won't be able to raise interest rates much further or risk an implosion of the household debt bubble. The Bank, however, also wants credit growth to slow or decline to engineer a de-leveraging process that causes minimal damage to broader economic growth,
"Canadian Indebtedness to Limit Rate-Hike Path, Economists Say" – Bloomberg
"Why Canadians shouldn't worry about inflation—yet" – Macleans
"@SBarlow_ROB Citi: Central banks' newfound patience on inflation " – (research excerpt) Twitter
"Yellen's Gradualism Doesn't Mean Policy Halt as Fed Presses Ahead" – Bloomberg
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Tuesday data on U.S. crude inventories provided more evidence of a balancing market and the end of glut conditions,
"[Brent] Oil dips, but remains in view of $60" – Reuters
"Surging Diesel Demand Is Underpinning Crude Oil's Bull Market" – Bloomberg
"Everything's happening at once in oil markets" – Barlow, Globe Investor Newsletter
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Tweet of the Day: "@vsualst USDCAD not afraid of moving too gradually: " – (chart) Twitter
Diversion: "Blade Runner 2049 "might be a masterpiece" - the early reactions are in and they are neon-glowing" – Total Film
Scott Barlow