Every week we bring you the world’s biggest business, currency, and travel stories. This week: oil prices rise, but the loonie doesn’t follow, Canada adds jobs but the jobless rate increases, SpaceX explodes, Canadian house prices rise, and the iPhone 7 is released.
Canada Adds Jobs, but jobless rate increases
The Canadian economy added 26,000 jobs in August, but it wasn’t enough to prevent the jobless rate from rising to 6.9% as more people entered the labour market. According to Statistics Canada employment rose in Quebec and Newfoundland and Labrador, but declined in New Brunswick with minimal change in the other provinces. Overall it is good news, especially compared to the 32,000 jobs lost in the previous month.
Enbridge Infrastructure Growth
Canadian owned Enbridge shelled out $28 billion for Texas based natural gas company Spectra. The deal makes Enbridge the proud owner of one of the most extensive and lucrative energy infrastructures in North America. As oil and gas prices continue to fall consolidation has been expected in order to boost efficiency and reduce costs.
SpaceX goes down in flames
A SpaceX rocket exploded at Cape Canaveral prompting questions about the safety of Elon Musk’s company. A Spacecom satellite was destroyed in explosion. The satellite was rented by Facebook which was trying to create accessible internet to developing countries. SpaceX has undergone numerous setbacks, but is still the frontrunner in the private space race.
The average Canadian home price is now $503,301 (as of August), up just over 11% year on year. Factoring out Toronto and Vancouver, the average house price is just $374,760, with a still healthy 8.4% growth year on year. According to the Canadian Real Estate Association, the Aggregate Composite MLS Benchmark Price indicates an aggregate growth of 13.6%. That figure is the largest growth since 2006.
Markit, a global financial information and services company, found that Britain’s service industry grew by a record amount in August .The firm now thinks that the UK is unlikely to fall into recession, despite the Brexit vote in June, however Markit does maintain that growth will slow.
Production Down, Prices Up
An unexpected drop in US oil production caused oil prices to shoot up on Thursday. According to the EIA (US Energy Information Administration) oil futures closed with an increase of $2.12 to $47.62. A report by the EIA indicated that domestic supply dropped by 14.5 million barrels in the last month of August. Experts had predicted an increase of 425,000 barrels. Tropical Storm Hermine is the likely culprit of the sudden decrease, as the storm forced oil production to be halted temporarily. There was no damage and production is expected to rebound.
Despite a rise in oil prices on Thursday, the loonie closed at 77.35 cents, down 0.17 cents on the USD. The loonie is closely linked to oil prices and has decreased in value compared to the US dollar as oil prices began sliding in 2014.
Speedy South Africa Growth
South Africa’s economy grew at the fastest rate since 2014 at 3.3% in Q2, this is in contrast to a 1.2% contraction in Q1. The resurgent mining industry has led the recovery.
Apple doesn’t know Jack
Apple released the iPhone 7 this week. The device is waterproof, a move welcomed by consumers, however it also lacks a headphone jack, instead requiring the use of rechargeable wireless ear headphones. IPhone sales have declined globally, and the iPhone 7s lukewarm reception will not alleviate fears, however smartphone rival Samsung had a much more difficult weak. The new Galaxy 7 was recalled due to a faulty battery that resulted in the phone catching fire. It does however have a headphone jack.
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