US Commercial Property Data Response Commercial Property Lending (May.) Commercial real estate debt continued to grow at a decent pace in May, in line with the recent strength in investment activity. However, we expect a weaker economic backdrop to weigh on commercial... 13th June 2022 · 2 mins read
Canada Economics Weekly From one policy mistake to another? Governor Tiff Macklem’s hawkish comments this week, even as he presented a report warning of the risks of aggressive policy tightening, leave little doubt that the Bank of Canada is singularly focused... 10th June 2022 · 5 mins read
US Economics Weekly Reports of the consumer’s death greatly exaggerated In contrast to reports from individual retailers, the aggregate data show that retail inventories are still lean, while the very strong May CPI data revelated no signs whatsoever of any discounting. 10th June 2022 · 6 mins read
Canada Data Response Labour Force Survey (May) The 39,800 rise in employment in May drove down the unemployment rate to a multi-decade low and there are now clear signs of the tight labour market pushing up wages. That raises the chance of the... 10th June 2022 · 2 mins read
US Data Response Consumer Prices (May) The surprise increase in headline inflation to a 40-year high of 8.6% in May, from 8.3%, together with another strong rise in core prices raises the odds that the Fed will need to extend its series of... 10th June 2022 · 2 mins read
Asset Allocation Update US equity valuations still much higher than elsewhere Despite the sharp fall in the US stock market this year so far, US equities still appear much more highly valued than their peers in the rest of the world. While that might not tell us much about the... 10th June 2022 · 5 mins read
US Housing Market Chart Pack Housing demand falls as mortgage rates rise Housing activity is slowing in the face of higher mortgage interest rates. Mortgage applications for home purchase dropped to a two-year low in May, existing homes sales have declined in each of the... 9th June 2022 · 9 mins read
FX Markets Update Fed’s “QT” supports our case for a stronger US dollar While we doubt it will be the main driver of the US dollar, the ongoing reduction in the size of the Fed’s balance sheet (i.e., “quantitative tightening”, or “QT”) adds to our conviction that the... 9th June 2022 · 3 mins read
Energy Data Response US Weekly Petroleum Status Report Commercial crude oil stocks rose this week owing to an unusually large release from the strategic reserve and a slump in crude exports. Interestingly, implied product demand ticked up, after being... 8th June 2022 · 2 mins read
US Fed Watch 50bp hikes to continue until inflation slows The Fed is set to hike interest rates by 50bp at its meeting next week and to signal that a similar move is coming in July. We still think a drop back in inflation will allow officials to ease the... 8th June 2022 · 8 mins read
US Commercial Property Update Why we’re not too concerned by Amazon’s slowdown The perception of Amazon as a bellwether for the industrial sector made the announcement that it had over-expanded in the last two years a potentially worrying one. But, the fact that Amazon is only... 8th June 2022 · 4 mins read
Asset Allocation Update Soft landing for the economy but perhaps not for markets? While we forecast that the US economy will merely slow rather than enter a recession, we still expect twin sell-offs in stock and bond markets to resume, with value stocks and defensive sectors... 8th June 2022 · 4 mins read
Canada Economics Update Bank risks sending housing into a tailspin The Bank of Canada’s recent communications suggest that it will be unfazed by the second consecutive double-digit drop in home sales in May. This raises the chance of the Bank enacting a larger... 7th June 2022 · 4 mins read
US Data Response International Trade (Apr.) The bigger than expected drop back in the trade deficit in April suggests that net trade will be a large boost to second-quarter GDP growth, with the risks to our forecast for growth of 4.8%... 7th June 2022 · 2 mins read
Canada Data Response International Trade (Apr.) Elevated commodity prices were still doing little to lift the goods trade surplus at the start of the second quarter, but we expect it to widen in the coming months as goods imports from Asia drop... 7th June 2022 · 3 mins read
US Economics Update Labour shortages easing in worst hit sectors While the headline job openings and quits rates remain close to record levels, below the surface there are clear signs that labour shortages are easing in the hardest-hit sectors. That provides some... 1st June 2022 · 3 mins read