Economic information to keep and eye on!!!!

This is some interesting information that you should keep an eye one!

HIGHLIGHTS OF THE WEEK

United States

•   Debate on the debt ceiling is approaching the July 22nd deadline set by the President. A solution continues to elude policymakers and continues to overshadow markets.

•   Failure to raise the debt ceiling would lead to a prioritization of spending commitments. Putting outlays in line with revenues would require cuts of 45%. While a technical default is unlikely, the impact on confidence and financial markets of missing the deadline would be severe.

•   The “Gang of six” plan, a bipartisan Senate compromise between three Democrats and three Republicans, appears to be the best guidepost for what an eventual plan will look like. This plan would trim deficits by $3.7 trillion over 10 years and cut $500 billion from deficits between now and 2015.

Canada

•   This week, financial markets’ attention was squarely on the negotiations for a Greek bailout package, and the Bank of Canada’s interest rate decision and subsequent Monetary Policy Report.

•   European leaders reached an agreement on a bailout package for Greece, lifting market sentiment and equity markets.

•   There was nothing surprising about the Bank of Canada’s decision leaving interest rates unchanged, but its statement was more hawkish than markets expected, initially taking yields and the Canadian dollar higher.

•   However, Friday’s softer-than-expected inflation report for June started to quell fears that BoC rate hikes were imminent, taking some of the wind out of the loonie’s sails.

Any questions feel free to contact me at jimamitofski@networthmortgage.com

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