Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

A roundup of what the Globe and Mail's market strategist Scott Barlow is reading this morning on the world wide web.

More weak economic data out of China sets a weaker tone for North American markets this morning. The HSBC Manufacturing PMI survey came in below economists' expectations at 48.1. The sub-50 reading signals a contraction in national manufacturing activity.

Statistics on Chinese property sales are even more alarming. Property sales in Beijing fell more than 18 per cent in year-over-year terms, leading Nomura research to proclaim that "it is no longer a question of 'if' but how severe China's property correction will be."

Story continues below advertisement

Declining real estate values will send shock waves throughout the economy because property is used extensively as collateral for new loans. The trend is also important for Canadian investors – a slowing China construction boom means less demand for commodities.

Nomura: 'It is no longer a question of 'if' but rather 'how severe' [China's] property market correction will be.' – Wall Street Journal

Leaked Comments From Top Property Developer: China Is Built Out – ChinaRealTime

"A whole slew of industries that provide inputs to real estate development, such as steel, white goods, and cement, will suddenly experience a sharp drop in demand as home construction slows" – China Economic Watch

Nobel Prize-winner Robert Shiller calculates that while most North Americans think real estate is a better investment than equities or bonds, houses actually fare poorly over the long term once inflation is taken into account.

Why your home is not a good investment – Motley Fool/Robert Shiller

Much of the economics discussion over the weekend focused on unemployment rates, specifically how much labour slack there is – on both sides of the border. The consensus is that retiring workers are making the headline statistics look far worse than conditions actually warrant.

Story continues below advertisement

Canada Continues To Be Crippled By Long-Term Unemployment – Business in Canada

Goldman Sachs on the Labor Force Participation Rate – Calculated Risk

Diversion: I played baseball for 15 years and have been watching games my whole life. This is the best catch I've ever seen. With a left-handed hitter the ball is slicing away from the outfielder AND he has to jump like Michael Jordan: – Bleacher Report

Follow Scott Barlow on Twitter at @SBarlow_ROB.

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies