Monday, November 21, 2011

Misc. leads wholesale sales

Think about it, while wholesale sales rose (5th consecutive month), virtually all the growth came from the miscellaneous segment (BTW this is mostly an agricultural sector) -- too inconsequential to be enumerated, the melting pot of the the wholesale sector.  One sector is hurting, and it's a critical one:  machinery, equipment and supplies -- that's gone down (again).

Wholesale Sales September 2011
 Wholesale sales increase in September
(Source: StatsCan)

Needless to say that since Misc. is mostly agricultural, the gains were mostly in Canada's Western provinces.  It's still a good report, although worrying for the rest of Canada -- the recent weakness of the CAD should help the manufacturing sector -- assuming that the world doesn't end (odds are good).

Although this week should be fascinating.  Greece has a right wing government (we're not talking garden variety, but the extreme -- you know think of the more nutty element of the GOP), Spain has a new center right  (majority) government.  Yields are rising in France, Italy and Greek bonds are also having fun -- with a French downgrade looking increasingly likely.  Watch some of the French banks this week, as investors realize that nationalization cannot be far off (not that they can afford it -- if you thing the UK and Irish were screwed by the size of their bank bail out -- child's play compare to France...).

Then you've got 'Merica and its "Supper Committee" that will come out tomorrow with "no agreement" -- was there ever any doubt about this...


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