Daily Update (Source: RBC Financial Group)
Canadian household net worth inched lower in the second quarter of 2017
Sep 15, 2017
The key takeaway from today's snapshot on Canadian household finances is not the usual headline of
another record high for the debt-to-income ratio, which did surge to an all-time high of 167.8%. Instead
a decline in household net worth, albeit modest, alongside a sharp increase in consumer credit growth
are notable as together they suggest that the ability of households to absorb higher interest rates continued
to deteriorate. Beyond this, overall debt accumulation by Canadian households jumped in the
second quarter of 2017 while asset appreciation slowed sharply led by poor equity market performance.
A seasonal bounce in mortgage borrowing is typical as the spring thaw spurs home buying activity, yet
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Metals: Pointing to True North?
- Sep 14, 2017
By Peter G. Hall, Vice-President and Chief Economist, Export Development Canada
It still baffles me that magnetized metal on a frictionless surface will point north. Since its discovery, the simple compass has been relied on by the small and great alike, and doubtless has myriad stories to tell of dramatic rescues and great navigational feats. Metals have in the same way been a reliable bellwether of the economy – some more than others. As the signs of a long-delayed revival in global growth mount, are movements in metals markets telling us anything?
If so, it would be a big change. Metals lost their magnetism in the post-recession years, for a number of reasons. First, the massive global government spending program, launched in 2009, created the illusion of recovery, vaulting metals prices back to pre-recession highs. Second, wave upon wave of liquidity injections, through central banks' quantitative
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