Every week we bring you the world’s biggest currency, travel, and business news. This week: Canada adds jobs and exports soar, US unemployment falls but wages stagnate, the GBP falls, and Tesla builds the world’s biggest battery farm down under.
Canada adds jobs
Canada adds 45,000 jobs in June pushing the unemployment rate down to 6.5%. 37,000 however, were part time positions, with only 8,000 new full time jobs. Over the last year Canada has added over 350,000 jobs. Most of the new jobs were in Quebec or BC, elsewhere the job market remained fairly stagnant. The bank of Canada will meet next week to set interest rates and, in light of stronger economic performance, will likely raise rates.
US Jobs Growth
US employment figures grew faster than expected in June by adding 222,000 jobs according to the US Department of Labor. The unemployment rate sits at just 4.4% but wages are still not rising quick enough. Wages grew at just 2.5% year on year. Employment has increased by an average of 180,000 per month this year so far. Strong employment may encourage the Fed to raise rates further, but low wages could be a dissuading factor.
The GBP has fallen 0.7% due to disappointing manufacturing, construction, and trade data which reduces the likelihood that the Bank of England could raise rates.
World’s biggest battery
Tesla has signed an agreement with French energy company Neoen to build a 100-megawatt battery farm in South Australia. Elon Musk, owner of Tesla, has vowed to build it in 100 days or it will be free. South Australia is heavily reliant on renewable energy like solar and wind power but has been suffering from blackouts and power grid issues. The battery farm will enable South Australia to store extra energy and use it when demand is higher.
Trade between Canada and the rest of the world hit an all time high in May, imports rose 2.4% to $49.8 billion and exports rose by 1.3% to high of $48.7 billion. Trade between Canada and the US rose to $98.5 billion. Although the trade deficit increased to $1.1 billion, the strong broad-based export market strengthens the argument for the Bank of Canada to raise rates.
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