This week: Egypt floated the Egyptian pound; Canada adds more jobs than expected, Air France-KLM announces new discount long haul flights, US jobs data strengthens the case for a rates rise.
Egyptian pound floats
Egypt floated the pound on the international currency market, resulting in an almost 50% drop in value against the USD. The move comes as part of an economic liberalisation policy aimed at modernising Egypt’s economy, and was required by the International Monetary Fund (IMF) in order for the country to receive a $12 billion loan. Egypt’s central bank has also increased interest rates to 14.75%. Egypt’s main stock exchange jumped 8% as a result of the decision. The commodities slump is continuing to affect the job market, there are now 20,000 fewer jobs in the natural resources sector than at the same time a year ago.
Canada adds more jobs than expected
Canada added 44,000 jobs in October, but the unemployment rate remained at 7% and the actual number of hours worked declined. Economists had predicted a decline of 15,000 jobs. Despite the good news, many of the jobs were part time or self employment. Part time job creation has exceeded full time job creation all year, while there has been little growth in employment for Canadians between the ages of 25 and 54. The majority of new jobs came from Ontario and British Columbia.
Cheaper Long Haul Flights
AirFrance KLM is looking to win back customers with a new low-cost, long haul airline. The new airline is yet to be named, but the company intends to compete with other low cost carriers.
Strong US Economic Data
The US economy added 161,000 jobs last month, and revised data indicated that more jobs were created in August and September than was previously thought, strengthening the case for a rates rise in December. Unemployment in the US is now just 4.9%, and average hourly earnings are up $0.10 per hour. The Commerce Department also revealed an annual growth rate of 2.9%.
Stay informed. Stay Current.