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BMO: ’Canadian household debt appears to be finally cooling in a meaningful way’

A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

BMO economist Doug Porter notes that domestic household debt growth is finally starting to moderate,

“Canadian household debt appears to be finally cooling in a meaningful way…To be clear, we wouldn’t say it’s “cool”, but it is in the process of cooling. Overall household debt slowed to 5.3% y/y in March, from 5.5% the prior month and a recent peak of 5.9% early last summer. Still, this compares with underlying disposable income trends of closer to 4%. The big driver in the gentle slowdown in household borrowing is on the all-important mortgage side. Mortgage credit outstanding has also risen 5.3% y/y (one of the few times in the past 8 years that mortgages have not grown faster than all other forms of household debt). This is well down from the recent peak growth of 6.5% y/y”

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“@SBarlow_ROB23h BMO: “Canadian household debt appears to be finally cooling in a meaningful way” – (chart) Twitter

“Toronto home prices tumble but market shows signs of stability” – Report On Business

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Elon Musk tapped into dreams of a greener future in transportation and power,and the extent to which the market supported him is evident in how easily Tesla Inc. has been able to raise money in debt markets. This dream took a significant hit Wednesday during a conference call that fell into absurdity,

“Tesla Inc investors gave a rare rebuke to iconoclastic Chief Executive Elon Musk on Wednesday after he cut off analysts asking about profit potential, sending shares down 5 percent despite promises that production of the troubled Model 3 electric car was on track… “These questions are so dry. They’re killing me,” Musk said after an analyst asked what percentage of Tesla 3 reservation holders have started to configure options for their cars, an indicator of how much profit Tesla will be able to wring from the vehicles. Another analyst asked about a capital requirement before being cut off.”

“The price of Musk cutting off analysts? For Tesla, it’s $2 billion” – Reuters

“Push the Button” – Reuters Breakingviews

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“@TheStalwart 55m Morgan Stanley analyst says Tesla’s conference call was the most unusual call he’s experienced in 20 years working on the sell side bloomberg.com/news/articles/… “ – (research excerpt) Twitter

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The tug of war in oil markets between price-supportive global demand and price-dampening U.S. production increases continues,

“On Wednesday, a report from the U.S. Energy Information Administration (EIA) showed a 6.2-million-barrel jump in U.S. crude inventories C-STK-T-EIA. But bullish factors, including an increase in Saudi Arabia’s official oil selling price to Asia, also underpinned prices, according to Commerzbank analyst Carsten Fritsch.”

“Oil slips as OPEC, Iran worries bump against U.S. output” – Reuters

“@chris1reuters 5h The United States has overtaken #Saudi Arabia and may soon be world’s top #oil producer as higher #crude prices spur #shale and conventional fields; only #Russia pumps more now @hgloystein “ – (chart) Twitter

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Tweet of the Day:


Diversion: “Stunning Discovery Shows Early Humans Were Hunting Rhinos in the Philippines Over 700,000 Years Ago” – Gizmodo

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