Tausi Insider

Pedestrians pass a souvenir shop on Oxford Street, in London, on Nov. 11. Kirsty Wigglesworth/The Associated Press Britain’s economy shrank in the three months to September at the start of what is likely to be a lengthy recession, underscoring the challenge for finance minister Jeremy Hunt as he prepares to raise taxes and cut spending next week. Economic output shrank by 0.2 per cent in the third quarter, less than the 0.5 per cent contraction analysts had forecast in a Reuters poll, Friday’s official data showed. But it was the first fall in gross domestic product since the start of 2021, when Britain was still under tight coronavirus restrictions, as households and businesses struggle with a severe cost-of-living crisis. Britain’s economy is now further below its pre-pandemic size – it is the only Group of Seven economy yet to recover fully from the COVID slump – and is smaller than it was three years ago on a calendar-quarter basis. The Resolution Foundation think tank said that ...

Canada Mortgage and Housing Corp. says the annual pace of housing starts slowed in October from its high for the year reached in September. The national housing agency says the seasonally adjusted annual rate of housing starts in October was 267,055 units, down 11 per cent from 298,811 units in September. The annual pace of urban starts was down 11 per cent at 245,234 units in October as multi-unit urban starts fell 13 per cent to 188,189 units. Urban starts of single-detached homes dropped four per cent to 57,045 units. CMHC says the annual pace of starts was down in Toronto and Vancouver, however Montreal posted an increase. Rural starts were estimated at a seasonally adjusted annual rate of 21,821. The six-month moving average of the monthly seasonally adjusted annual rate was 277,667 units in October, up 0.5 per cent from 276,374 in September. https://www.tausiinsider.com/annual-pace-of-housing-starts-in-canada-slowed-in-october/?feed_id=350691&_unique_id=648a5981c56e0

Cryptocurrency exchange Kraken said on Wednesday it would cut its global work force by 30 per cent, or about 1,100 employees, citing tough market conditions that have crippled demand for digital assets this year. Higher interest rates and worries of an economic downturn have roiled cryptocurrencies as investors dump risky assets, with recent bankruptcies adding to the uncertainty. “Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets,” the company said. Kraken said the reduction will take its total head count to where it was 12 months ago, and that it has seen a drop in trading volumes and fewer client sign-ups. The implosion of FTX has rippled across the industry, hobbling liquidity at firms with exposure to what was once one of the world’s biggest crypto exchanges. https://www.tausiinsider.com/cryptocurrency-exchange-kraken-to-cut-about-1100-jobs-from-its-global-work-force/?feed_id=331782&_unique_id=6457e7e637489

U.S. consumer spending increased solidly in October, while inflation moderated, giving the economy a powerful boost at the start of the fourth quarter as it navigates a high interest rate environment. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.8 per cent after an unrevised 0.6 per cent increase in September, the Commerce Department said on Thursday. October’s gain was in line with economists’ expectations. Spending last month was boosted by wage gains amid labour market resilience, one-time tax refunds in California, which saw some households receiving as much as $1,050 in stimulus checks, and cost of living adjustments for food stamp recipients. The Federal Reserve is in the midst of what has become the fastest rate-hiking cycle since the 1980s, as it battles high inflation, raising the risks of a recession next year. Fed Chair Jerome Powell said on Wednesday the U.S. central bank could scale back the pace of its rate increases “as...

Labour Minister Seamus O’Regan speaks during a news conference in Ottawa, on Oct. 19. Adrian Wyld/The Canadian Press Employees in federally regulated private-sector workplaces are now eligible for 10 days of paid sick leave. As of Dec. 31, workers who have been continuously employed for at least 30 days will have access to three paid sick days. Workers will then get a fourth sick day as of Feb. 1, and will accumulate one additional day at the start of every month up to a maximum of 10 days per year. On the campaign trail in 2021, the Liberals pledged to introduce 10 days of paid sick leave for federally regulated workers. In a news release, Labour Minister Seamus O’Regan says the paid leave means “more workers won’t have to choose between getting well and getting paid.” The Canadian Labour Congress applauded the new policy in a statement, urging provinces that do not offer paid sick leave to follow suit. https://www.tausiinsider.com/new-paid-sick-leave-rules-coming-into-effect-f...

Canada Mortgage and Housing Corp. says the annual pace of housing starts in November edged down 0.2 per cent compared with October. The national housing agency says the seasonally adjusted annual rate of housing starts in November was 264,159 units, down from 264,581 in October. The result came as the annual pace of urban starts was flat at 242,644 units as multi-unit urban starts rose two per cent to 190,415, but single-detached urban starts fell seven per cent to 52,229. The annual pace of starts in Toronto and Vancouver rose, but Montreal saw a drop. Rural starts were estimated at a seasonally adjusted annual rate of 21,515. The six-month moving average of the monthly seasonally adjusted annual rates of housing starts was 274,361 in November, down from 277,044 in October. https://www.tausiinsider.com/annual-pace-of-housing-starts-in-canada-edged-down-in-november-cmhc-says/?feed_id=328182&_unique_id=641c26e84861b

Canada Mortgage and Housing Corp. says the annual pace of housing starts in December slowed five per cent compared with November. The national housing agency says the seasonally adjusted annual rate of housing starts in December was 248,625 units compared with 263,022 in November. The drop came as the annual pace of urban starts fell five per cent to 227,708. The rate of multi-unit urban starts dropped four per cent to 182,850, while the pace of single-detached urban starts fell 11 per cent to 44,858. Rural starts were estimated at a seasonally adjusted annual rate of 20,917 units for December. The six-month moving average of the monthly seasonally adjusted annual rates of housing starts was 269,930 in December, down one per cent from 273,801 in November. https://www.tausiinsider.com/canadas-annual-pace-of-housing-starts-slowed-in-december-cmhc-says/?feed_id=323944&_unique_id=63e8da9185dca