The recent run of Canadian strong economic figures was hard to ignore, as the Bank of Canada’s policy decisions are also a data-dependent, especially with the economy outperforming the Bank’s base case since October 2017.
The BoC raised rates to 1.25% from 1.00% last week, as solid employment growth and more solid inflation dampened the pressure of NAFTA unclarities.
Latest reports on the Canadian labour market outperformed expectations by the end of the year. The country’s unemployment rate was at its lowest level in more than four decades, becoming the reason for the BoC to consider further rate increases more willingly.
Nearly two out of three Latin Americans will choose a new leader over the next 12 months. Chile and Honduras have kicked off the year-long cycle. Brazil, Colombia, Costa Rica, Mexico, Paraguay and possibly Venezuela will follow next year.
Apple apologized for secretly slowing down older iPhones, a move it said was necessary to avoid unexpected shutdowns related to battery fatigue.
The firm said last week it ‘throttles’ phones to extend their life and stop them from shutting down as batteries age and become less effective, triggering lawsuits across the world.
Nestlé is investing 54 million Swiss francs ($55 million) to construct a new factory in Cuba, which will employ 260 people by its third year, it said Wednesday.
The Swiss company said that the site will produce its coffee brand Nescafe, Cuban coffee Serrano, Nestle Fitness cereal snacks, powdered beverage Nesquick and Maggi-brand cooking aids.
What is likely to affect the US economic activity in the near term?
I suppose that the US economy is on a fairly solid and steady growth path at the moment. I think that there are no serious policy errors and the economy will continue to show steady performance in the near term. However, possible policy errors would be an upturning protectionist action and probably the ending of the NAFTA, while tax measures would make a positive contribution to the economy. Nevertheless, I do not think the economic impact of the latter would be as strong as some people hope; there would be a moderate support and sustaining recovery rather than a strong boost.
The Mexican economy has essentially been a two-part tale lately: oil and services. The oil sector has been reformed for the better during President Pena Nieto’s term. But the reforms have nevertheless been overwhelmed by the sheer extent of the oil price drop. It is weakening exports, reducing tax revenues and hurting growth to the extent that the sector now accounts for around 4% of GDP, much less than in the past.
Despite the best efforts of cell companies, the vast majority of Puerto Rico is offline. Internet coverage might seem like a luxury when people are struggling for clean water and power, but communications make moving essential supplies much easier, and enables lost families and friends to find each other.
And while some are providing food and other necessary materials, Project Loon, a division of Alphabet’s X lab (formerly Google X), is trying to set up temporary internet and cell service using giant balloons.
