Tausi Insider

Pedestrians are reflected on the wall of a shopping mall in Tokyo, on Nov. 15. KIM KYUNG-HOON/Reuters Japan’s economy unexpectedly shrank for the first time in a year in the third quarter, stoking further uncertainty about the outlook as global recession risks, a weak yen and higher import costs taking a toll on household consumption and businesses. The world’s third-biggest economy has struggled to motor on despite the recent lifting of COVID-19 curbs, and has faced intensifying pressure from red-hot global inflation, sweeping interest rate increases worldwide and the Ukraine war. Gross domestic product fell an annualized 1.2 per cent in July-September, official data showed, compared with economists’ median estimate for a 1.1-per-cent expansion and a revised 4.6-per-cent rise in the second quarter. It translated into a quarterly decline of 0.3 per cent, versus a forecast of 0.3-per-cent growth. Japan has also been dealing with the challenge of the yen’s slide to 32-year lows against...

The Canadian dollar CADUSD strengthened to its highest level in more than six weeks against its U.S. counterpart on Monday, as investors grew more optimistic about the global economy and domestic data showed building permits rebounding in November. Equity markets globally and the price of oil rose as investors scaled back expectations for U.S. Federal Reserve interest rate hikes and after China’s move to reopen its borders boosted the global economic outlook. U.S. crude prices were up nearly 3 per cent at $75.96 a barrel. Oil is one of Canada’s major exports. The value of Canadian building permits climbed by 14.1 per cent in November from October after declining 5.3 per cent in October, data from Statistics Canada showed. It follows data on Friday showing that the Canadian economy added much more jobs than expected in December, boosting expectations for a quarter-point interest rate hike by the Bank of Canada later this month. BoC Governor Tiff Macklem is due to participate in a pane...

Wind turbines at the Saint-Nazaire offshore wind farm, off the coast of the Guerande peninsula in western France, on Sept. 22, 2022. STEPHANE MAHE/The Associated Press Climate change is the global economy’s biggest long-term challenge but one the world is least prepared to tackle because of short-term problems led by a cost-of-living crisis, the World Economic Forum said in a report Wednesday. The group’s Global Risks Report, released ahead of its annual gathering of government leaders and business elites next week in the Swiss Alpine resort of Davos, offers a bleak outlook. The report based on a survey of 1,200 risk experts, industry bosses and policy-makers says the biggest challenges over the next decade involve the environment, yet more immediate challenges are distracting world leaders, some of whom will be in Davos for panel discussions and schmoozing at an event that has faced criticism for not producing concrete action. “The coming years will present tough trade-offs for gove...

Oil prices held near this year’s highs on Monday as easing COVID restrictions in China raised expectations for a demand recovery in the world’s top crude importer. Brent crude fell 38 cents, or 0.45 per cent, to $84.90 a barrel by 1012 GMT, while U.S. West Texas Intermediate crude was down 26 cents, or 0.33 per cent, at $79.60 a barrel, amid thin trade during Monday’s U.S. public holiday. Both contracts rose more than 8 per cent last week, the biggest weekly gains since October after China abandoned what remained of its zero-COVID policy by reopening its borders on Jan. 8. China’s crude imports rose 4 per cent year on year in December, while an expected resurgence in travel for the Lunar New Year holiday at the end of the week raised the outlook for demand for fuels used in transport. Traffic levels in China are rebounding from record lows after the easing of COVID-19 restrictions, resulting in stronger demand for crude and oil products, ANZ analysts said in a note. But new reports o...

The Canadian dollar CADUSD was little changed against its U.S. counterpart on Monday and bond yields fell as a Bank of Canada survey showed businesses growing more pessimistic about the economic outlook. The loonie was trading nearly unchanged at 1.34 to the greenback, or 74.63 U.S. cents, after moving in a range of 1.3353 to 1.3417. Most Canadian businesses expect a mild recession over the next year because higher interest rates are curbing investment plans and consumer spending, while at the same time more see inflation staying high for longer, the BoC said. The survey “was largely downbeat on the economic outlook,” strategists at TD Securities, including Andrew Kelvin, said in a note. “As much as recent readings on employment and prices argue for additional tightening, the survey data very much suggests that the Bank may be quite close to the end of its tightening cycle.” Money markets expect the BoC’s benchmark interest rate to peak at 4.50%, after it was raised last month to 4.2...