A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web
The opening statement on Bloomberg regarding China's apparent plan to ban the internal combustion engine - "say goodbye to gasoline" – might be a tad dramatic, but the news does threaten the long term outlook for global crude demand,
"China, one-third of the world's car market, is working on a timetable to end sales of fossil-fuel-based vehicles, the country's vice minister of industry and information technology, Xin Guobin, told an industry forum in Tianjin on Saturday. That would probably see the country join Norway, France and the U.K. in switching to a wholly electric fleet within the lifetime of most current drivers… Almost 80 percent of the global auto market is pushing toward phase-out of petroleum cars and adoption of electric vehicles."
I took a quick look at the five year crude future price (I'll be following this more closely in light of the China news) which is weaker in recent months, but not by much.
Both Goldman Sachs and Morgan Stanley strategists are bullish on equities for the remainder of the year. Here's Morgan,
"The backdrop investors return to is a constructive one through year-end. Global GDP and EPS growth remain solid, the strongest since 4Q10. Financial conditions remain exceptionally easy, helped by softness in inflation. And measures of corporate and investor sentiment, while not 'fearful', remain far from exuberant … Our economists think global growth rises above 4% (real) in 2Q, the strongest reading since 2010, and one that comes with impressive breadth."
HSBC economists have published their forecast for Bank of Canada interest rate policy,
"we now think that the Bank of Canada will raise its policy rate by 25 basis points to 1.25% on 6 December. In our view, the key factor in the jobs report that tips the scales toward another rate hike was evidence of renewed wage growth… "
HSBC believes that the Bank will be cautious next year as indebted households adjust to higher rates, inflation pressures remain subdues, and Ontario raising of the minimum wage could limit national economic growth.
Tweet of the day: "@chigrl $GS : Alone these two hurricanes will add 600kb/d to global #oil inventories in Sept. Due to demand disruption #oott " – (chart) Twitter
Diversion: "Cancer Blood Tests Score Early Success" – M.I.T. Technology Review