Good morning!U.S. earnings season kicked off today with Citigroup, the first big U.S. bank to report, beating expectations with a 7 per cent profit rise. Investors had been concerned after warnings last month of lower trading revenue and investment banking fees. Lower costs and stronger consumer lending, however, helped offset weakness in trading, reports Reuters. JPMorgan Chase & Co., Goldman Sachs and Wells Fargo follow Citigroup on Tuesday.
China’s economic data was out today, showing growth was the slowest since quarterly data began in 1992. Factory output and retail sales, however, were more upbeat and expectations of more stimulus from Beijing have boosted world shares towards an 18-month high. And it’s Amazon.com Prime Day today as the online retailer stretches their shopping event that now rivals Black Friday to two days. Shoppers can also look for deals at Walmart, Target and eBay, as these retailers take advantage of the buying frenzy. Prime Day is expected to bring in US$5.8 billion in sales this year for Amazon globally, up from US$3.9 billion last year, says Coresight Research.
Canada is the fourth biggest oil producer in the world, and exports twice the petroleum it consumes. So energy security is no problem, right? Wrong, argues energy economist Peter Tertzakian. Because this country lacks a cross-country pipeline, central Canada imports most of its oil from the United States. Now Michigan wants to shut that pipeline down and tensions between the U.S. and Iran is further raising the risk of shortages.