Jo meets Mr. Drysdale

Mar 12, 2021 | Mark Ryan


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Good afternoon,

 

News from the Front: This week at RBC we received a COVID update from our team, covering infection data, the pace of reopening, and vaccination news. Overall, it’s more positive than negative, even though Canada’s vaccination rate has been embarrassingly poor compared to most other developed nations, which is a sore point.

 

The Year of Living Worriedly: It’s the COVID birthday nobody wanted, and the promise of less-persistent pestilence permeates. Now that the petulant presidency has past, the present president presents his presents like Willy Wonka working weekends. This modern monetary moment will be studied in economics textbooks for decades to come, along with my affliction for alliteration.

 

See the full report here:Macro Memo: Infections / Reopening / Vaccines / Good economy / Higher yields / Cdn competition / Low probability

 

Friday Charts: Two issues show the pandemic’s pent up yearnings:

 

  1. Some 4.4 million new businesses were created in the U.S. since last March, according to US Census Bureau data, far exceeding the uptick that has occurred during previous recessions. Hmm... And how many shut-downs?

 2. Far from bailing out household deficits (in aggregate at least) the international data show that pandemic relief is effectively borrowing from our grandchildren to fund stockpiles of savings

 

More Global Insights:

  • Shapes of recovery: Regional growth snapshots – It’s about one year on from when the pandemic shut down the global economy. While it will still be a long way back, the overall recovery is exceeding expectations. We look at where things stand for the world’s key regions as they continue to reset economic growth.
  • U.S. inflation low as Fed meeting approaches With inflation appearing well-contained and employment data improving, we see little likelihood of a policy shift at next week’s Fed meeting.
  • Regional highlights: Government of Canada bond yields approach pre-pandemic levels; ECB to accelerate the pace of asset purchases; Shanghai Shenzhen CSI 300 falls about 14% from recent peak.

Read the full report here: Global Insight Weekly

 

 

Friday Snarky Bits:

Six self-done haircuts into COVID, and I’m getting it done in under five minutes with my new power head-mower thing-a-mu-bobber. Not sure what takes them so long at the barber. Anyway, the front looks ok, and I can’t see the back, so who cares? So… PM Justin T – you’re looking a little frumpy these days. Drop by and I’ll rev up the buzzer for you.

 

Cousin Milburn Drysdale? Am I the only one who sees the striking resemblance between Joe Biden and that banker from Beverly Hillbillies? I’ll bet you a heap of possum stew if this here Great-Society-New-Deal thingy ain’t already some six trillion deep, and ponder’n on digg’n a bigger hole right down through to… uh… China.

 

Hey wait…

 

Enjoy your weekend!

Mark