This week’s headlines: US jobs up, GTA house sales increase, The Bay looks to buy Macy’s, President Trump signs an executive order which could be the end of Dodd-Frank, and the UK service industry slows but still grows.
UK service sector growth slowed from a purchasing manager’s index of 56.2 to 54.5. Any score above 50 indicates growth, and the UK’s economy looks to be on course for a good start to the new year, despite the slight slowdown.
President Trump signed two more executive orders, to review and reform financial services regulation. Included in the review will be the Dodd-Frank act which was put in place after the last recession to prevent irresponsible banking and lending practices. Trump believes that the regulation is harming businesses.
The Bay and Macy’s
The Hudson’s Bay Company is rumoured to be preparing a takeover of American department store chain Macy’s. The shares of both companies surged on the news. The Hudson’s Bay Company was founded in 1670, and recently bought up another American company Saks Fifth Avenue, and the German Galeria Kaufhof chain. Macy’s is much larger but has been struggling.
Toronto Sales up
According to the Toronto Real Estate Board houses sales are up 11.8% year-on-year, despite a drop in listings, and the average selling price is up 22.3% to $770,745 across the GTA.
The US added 227,000 jobs in January, higher than the 175,000 that economists had expected. However unemployment still rose from 4.7% to 4.8%. Hourly wages only grew by 0.1%, but the strong numbers could help convince the US Fed to raise rates.
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