By James Langton
(September 8 – 09:00 ET) – The Canadian jobs data came in weaker than expected this morning. The unemployment rate rose from 6.8% to 7.1% in August, thanks to an increase in people looking for work. However the participation rate isn’t as high as it has been, leaving some economists with the impression that there’s still room for growth.
Employment rose by 27,000, with most of the gains in part-time employment. The report is certainly weaker than expected, but it is not a disaster. Most analysts believe the Bank of Canada stands pat on this data.
Statistics Canada is also reporting that industries operated at 87.9% capacity during the second quarter, slightly higher than in the first quarter. This marks the seventh straight quarter of increasing capacity. This number is pretty much on target too and should have little market impact.
There’s no major economic data in the U.S. today. In Japan, Moody’s has downgraded Japan’s domestic currency rating to Aa2 from Aa1. This boosted the U.S. dollar against the yen.
So far stocks are down in Europe this morning, and they are pointing that way in U.S. pre-market trading, too. Chemicals are sliding, as are oils, with the price of crude down today in anticipation of this weekend’s OPEC meetings.
The FTSE is off by 101 points to 6,587. The CAC 40 is down 84 to 6,750. The DAX has shed 71 points to sit at 7,302.
The only merger news today is that America Online Inc. is offering concessions in its proposed US$147 billion merger with Time Warner Inc. to try and win antitrust clearance from the European Union.
In other business news this morning DaimlerChrysler AG announced it will pay 10% less for a stake in Mitsubishi Motor Co. Mitsubishi has appointed Rolf Eckrodt as chief operating officer at the firm.
The world’s biggest miner, Anglo American plc, reports first-half profits up 77% thanks to increases in the prices of platinum, paper and industrial metals.
In the U.S., auto parts stocks are in for a rough ride after TRW Inc. issued a profit warning, as did semiconductor firm SpeedFam-IPEC Inc.
Overnight in Asia stocks finished mixed. The Nikkei closed the week up 201 points on the weaker yen to 16,501. The Hang Seng slid 156 points to 17,275.
In Canadian business news, Research In Motion says it has appointed Don Morrison as chief operating officer effective immediately. His background includes jobs in Canada, Europe and the U.S., including president and CEO of AT&T Canada subsidiary ACC TelEnterprises Ltd.