Banks and Consumers:
The Bank of Nova Scotia reported third quarter earnings were up 19% over the same quarter last year. The quarterly earnings came in at $928million or 93 cents per share up from 77 cents per share in 2005.
The Banks Latin American and Caribbean operations showed excellent improvement and were the main driver for increased earnings, while the Canadian operations performed about the same as last year.
The Conference Boards consumer confidence index declined materially in July falling from 107.0 to 99.6, economists had expected a decline to 102.5. Over the past ten years there has been a 66% correlation between the level of consumer confidence and consumer spending.
The recent slow down in the real estate market along with higher energy prices are likely the main reason for the sharp decline in confidence, if this trend continues it does not bode well for the US economy going forward.
The Federal Reserve will be watching the jobs number closely when it is released on Friday a weak report will tend to confirm the other data released over the past month. The data has tended to indicate that the US economy is slowing, possibly more dramatically that first anticipated.
Gold and oil both fell today as there appears to be a sigh of relief that the Gulf coast will not be hit by a hurricane and that maybe Iran will be reasonable regarding their uranium enrichment program.
Only time will tell if these events are not going to be threats in the future.
The Canadian dollar continues to hold up around the 90 cent US level and the longer this holds the more likely it becomes that the Can$ goes a lot higher. It will be interesting to see if the Can$ will continue this move gaining on most currencies including the Euro and the Yen.
For more information go to http://www.campbellreport.com/
The Banks Latin American and Caribbean operations showed excellent improvement and were the main driver for increased earnings, while the Canadian operations performed about the same as last year.
The Conference Boards consumer confidence index declined materially in July falling from 107.0 to 99.6, economists had expected a decline to 102.5. Over the past ten years there has been a 66% correlation between the level of consumer confidence and consumer spending.
The recent slow down in the real estate market along with higher energy prices are likely the main reason for the sharp decline in confidence, if this trend continues it does not bode well for the US economy going forward.
The Federal Reserve will be watching the jobs number closely when it is released on Friday a weak report will tend to confirm the other data released over the past month. The data has tended to indicate that the US economy is slowing, possibly more dramatically that first anticipated.
Gold and oil both fell today as there appears to be a sigh of relief that the Gulf coast will not be hit by a hurricane and that maybe Iran will be reasonable regarding their uranium enrichment program.
Only time will tell if these events are not going to be threats in the future.
The Canadian dollar continues to hold up around the 90 cent US level and the longer this holds the more likely it becomes that the Can$ goes a lot higher. It will be interesting to see if the Can$ will continue this move gaining on most currencies including the Euro and the Yen.
For more information go to http://www.campbellreport.com/
posted by Grant | 3:45 PM
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