Friday morning we will get the third-quarter GDP reports from the U.S. and Canada, both coming out at 7:30 a.m. CST. The U.S. is looking for growth of 2.1 percent and it will give us a good look to see if there was enough growth to support the equity rally and corporate profit picture we have seen this quarter. A bigger number may give the FED the cover to proceed down a less robust QE path and push out a liquidity addition on a glide path that was proposed by ST.LOUIS FED President James Bullard.
The Canadians will also unveil their number and the consensus is looking for 0.3 percent. Canada’s second-quarter GDP was negative 0.1 percent, so it is important for Ottawa to head into positive growth. If the Canadian economy begins to slow further it will be a negative for the LOONIE as the strong currency will have been enough to curtail growth. Also, a slowing Canada will reflect on the U.S. for the fact that our northern neighbor is often a good bell weather for U.S. growth. Canada has certainly benefited from the global growth story as commodity prices have been robust. If raw materials are not enough to generate growth in Canada it may be indicative of how weak the U.S. economy is as it takes a toll on Canadian manufacturing.
The GDP numbers have gained importance in light of the impact the British GDP had on the POUND. Besides this release, we remind our readers that it is the end of the month and alot of bookmarking takes place. Be aware of the trends that are in place and look for late-day window dressing. Otherwise enjoy the weekend and get ready for what will probably be a week of tremendous volatility as the U.S. elections, an FOMC meeting and the unemployment report fill the calendar. We will be preparing an outlook for the trading that will take place. Enjoy your rest.
But first, enjoy this morning’s CNBC with Home Depot co-founder Ken Langone and I!
Tags: Britain, Canada, Dollar, Fed, FOMC, GDP, James Bullard, Ken Langone, Loonie, Pound, QE, St. Louis, U.S., U.S. elections, unemployment
October 28, 2010 at 10:11 pm |
Santelli is absolutely insane. When Sharon Engle and the “tea partiers” get elected, “if that happens. The market will NOT go up.. They have zero intellectual ability. The market at some point will demand rational thinking and courage, not anti-intellectual, anti immigration, gay bashing idiots, with zero ideas on how to solve the countries serious problems. How any of the so-called “smart people” can support them is beyond me. I consider you Yra, an intellectual. Someone who does his homework, reads, and analyzes. Not a crackpot like some of these people. To think that the Rand Paul’s, Sharon Engles’ and the like could be in the Senate is mindbogglingly.While the current bunch of elected officials are far from worthy, I can only think of the old saying..”Be careful what you wish….you may just get it… Best wishes ..
October 29, 2010 at 3:55 am |
for those people that still are in barack’s corner, the probability that the republican’s will take over the house and come at least very close in the senate, is very good for barack. if i’m right, the next two years will not make people any less angrier–this recovery will be painstakingly slow–anyone in washington will be dealt a losing hand– and the newly elected repubs will finally have some skin in the game and will be held accountable– the days of merely being critics and filibustering will be over. and if palin turns out to be the repubs nominee-don’t bet against it- barack will start to look not so bad.
October 29, 2010 at 6:54 am |
Gregg and Chuck—nothing I don’t agree with here–but Gregg the History of the u.s. legislature is its ability to overcome the idiocy of its members.Chuck absolutely right –life is different when you have to actually step up rather then just saying no—no has to become know.By the way –santellis attempt to out Ken Langone as a tea party person fell very flat but it disrupted what could have been a real discussion on dividends and the mortgage issue
October 29, 2010 at 8:39 am |
Mike Lee 2010! Yra, he’s my old roomate, about get elected to Utah Senate. I was thinking of forwarding the Jeremy Grantham piece and suggesting the best thing he could do would be to change the Fed mandate to only price stability. You know, “Mike the problem is the Fed. We need to stop them from blowing all these bubbles. The economy and country can get strong on their own if we just keep the Fed from intererfering.”
Yra, he’s sharp, but is a lawyer with no special finance expertise. What would be the one thing you would tell him?
October 29, 2010 at 10:36 am |
ron–I think you should tell him to proceed with caution and get an outside advisor who would help him sort thru all the nonsense that will come his way.You should vette as much for him as possible .Tell him also not to fawn over the big names that will appear before congressional committees for that is the mistake that most legislators make.Numbers and data provide the hiding places for many scoundrels.If i were him I would find one analyst on the left and one on the right so as to get a reasonable balanced outlook.The FEd is a problem as Greenspan was a serial bubble blower that politicians loved because that “wealth effect” papered over a great many problems