CHILE: Government Reaches Agreement To Advance Pension Reform
Jan-15 19:22
- The government has reached a deal with the opposition on some parts of its pension reform, according to Labour Minister Jeannette Jara. She said that the Senate had been presented with amendments to the reform and that after months of talks, points of agreement had been found to advance it.
- The reform would increase employer contributions to 8.5% of workers' salaries, according to Bloomberg, with 4.5% going directly to individual savings accounts and 1.5% temporarily going towards increasing payouts for retirees.
- The Senate’s labour committee agreed to debate on the reform and will now move to article-by-article votes. Senators have an agreement to put the legislation up for a floor vote this month, and if approved it must go back to the lower house before becoming law.
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NDP LEADER SINGH SAYS JUSTIN TRUDEAU MUST RESIGN
Dec-16 19:19
- NDP LEADER SINGH SAYS JUSTIN TRUDEAU MUST RESIGN
- SINGH HASN’T DECIDED HOW TO VOTE ON FUTURE CONFIDENCE MOTIONS
EURGBP TECHS: Monitoring Resistance At The 50-Day EMA
Dec-16 19:00
- RES 4: 0.8448 High Oct 31 and reversal trigger
- RES 3: 0.8376 High Nov 19 and a bull trigger
- RES 2: 0.8356 High Nov 27
- RES 1: 0.8330 50-day EMA
- PRICE: 0.8275 @ 16:39 GMT Dec 16
- SUP 1: 0.8225 Low Dec 11
- SUP 2: 0.8203 Low Mar 7 2022 and a major support
- SUP 3: 0.8200 Round number support
- SUP 4: 0.8188 1.00 proj of the Oct 31 - Nov 11 - 19 price swing
EURGBP has reversed higher from last week’s 0.8225 low (Dec 11). Gains are considered corrective and attention is on 0.8330, the 50-day EMA. A clear break of this EMA would undermine the bear theme and signal scope for a stronger recovery. For bears, a reversal lower would refocus attention on 0.8225. Clearance of this level would expose the major support at 0.8203, the Mar 7 ‘22 low and the lowest point of a multi-year range.
CANADA: Scotia Warn Of Blowing Away Fiscal Guardrails In A Tariff World
Dec-16 18:51
- “The fact that it is likely to be an election year combined with the probability that tariffs lie ahead mean that the numbers that are presented this week are likely to be mere placeholders ahead of an election-oriented Winter budget that incorporates the potential effects of tariffs.”
- “Estimates of the size of the federal government’s deficit could range anywhere from the mid-$40s to mid-$50s in billions of dollars for FY23–24. Still, as a share of GDP Canada’s deficit is very small at around 1½% to 1¾% of nominal GDP compared to other countries and notably the gargantuan size of the US imbalance US (-7.1%)."
- “Using our estimates of the impact of tariff scenarios on GDP alone and combining them with Finance’s estimates of the sensitivities of the budgetary balance to real GDP growth, the federal deficit could increase by somewhere between C$20B and $30B in the first year alone and depending on the extent to which Canada may retaliate.”
- “To sum up, fiscal guardrails may be the current obsession as folks sharpen their pencils on exactly how large (or small as a % of GDP) the deficit may be now. In a tariff world, we’ll soon forget about guardrails.”
