October 9, A recap of last week s top economic news and what s to come

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1 A recap of last week s top economic news and what s to come U.S. job growth slumps, while Canada records highest job numbers this year The U.S. Labor Department released its official hiring and unemployment figures for September last week, providing the latest snapshot of the American economy. While 134,000 jobs were added last month. Wall Street economists had expected an increase of about 168,000. Meanwhile, U.S. weekly jobless claims fell to a 49-year-low, with initial claims for state unemployment benefits dropping 8,000 to a seasonally adjusted 207,000 for the week ended Sept 29, the Labor Department said. Canada s economy recorded its best monthly job numbers this year, but the gains were all part-time and wage growth slowed. Employment increased by 63,300 in September, with more than 80,000 part-time work, Statistics Canada said. Full-time employment was down by 16,900. Economists were anticipating a 25,000 increase on the month. $40-billion LNG investment in northern B.C., Compensation for dairy farmers following USMCA A $40-billion liquefied natural gas project in northern B.C. will see a pipeline carrying natural gas from Dawson Creek to a new processing plant on the coast in Kitimat. Prime Minister Justin Trudeau heralded the investment as the largest private sector investment in Canadian history. Prime Minister Justin Trudeau told dairy farmers they will be compensated for their expected losses under the new United States-Mexico-Canada (USMCA) trade agreement. Canadian dairy farmers stand to lose 3.59% of their market under the new trade deal. Meanwhile, The Chinese government is denouncing provisions in the USMCA deal that would place restrictions on Canada s ability to negotiate a free-trade deal with China, calling it a hegemonic action that blatantly interferes" with another country s sovereignty. That section of the USMCA obliges Canada, the United States and Mexico to give one another three months notice before starting free-trade talks with a non-market country. Other economic news The International Monetary Fund warned that ten years after the global financial crisis, the world remains vulnerable to another meltdown. In preview chapters of its World Economic Outlook to be released next week, the IMF said that ultra-low interest rates and growing public debt are particularly concerning, warning large challenges loom for the global economy.

2 What s to come Canadian housing starts, On Tuesday, Canadian housing starts data will be released. In the U.S., consumer price index figures will be released. Source: BMO Economics, TD Economics, Reuters, CNBC as of October 5,

3 Return (CAD, %) Annualized Return (CAD, %) CANADIAN EQUITY INDEXES Close Week YTD 1 YR 3YR 5 YR 10 YR 52 wk high 52 wk low S&P/TSX Composite PR Index 16, ,586 14,786 S&P/TSX Composite TR Index 54, ,066 50,189 Energy TR 3, ,903 3,197 Materials TR 2, ,944 2,470 Industrials TR 4, ,543 3,762 Consumer Disc. TR 3, ,750 3,238 Consumer Staples TR 5, ,175 5,509 Health Care TR Financials TR 5, ,296 4,812 Information Technology T Telecom Serv ices TR 2, ,157 2,798 Utilities TR 4, ,703 4,145 S&P/TSX 60 TR Index 2, ,693 2,401 MSCI Canadian Small Cap PR Index Return (CAD, %) Annualized Return (CAD, %) WORLD EQUITY INDEXES Close Week YTD 1 YR 3YR 5 YR 10 YR 52 wk high 52 wk low CAC 40 PR Index 5, ,657 5,038 DAX 30 PR Index 12, ,597 11,727 DJIA PR Index 26, ,769 22,333 DJIA TR Index 58, ,709 47,897 FTSE 100 PR Index 7, ,904 6,867 FTSE 100 TR Index 6, ,831 5,884 FTSE/Xinhua A200 9, ,660 8,434 Hang Seng PR Index 27, ,484 26,220 Hang Seng TR Index 77, ,476 73,356 MSCI EAFE TR Index 8, ,675 7,756 MSCI Emerging Markets TR 2, ,772 2,232 MSCI Europe TR Index 9, ,736 9,501 MSCI Far East Free (ex-japan) TR 1, ,613 1,326 MSCI World TR Index 8, ,058 8,033 MSCI World AC TR Index 1, , NASDAQ Composite PR 8, ,133 6,455 Nikkei 225 PR 24, ,307 20,285 Russell 2000 TR 8, ,632 7,187 Russell 2000 Growth TR 7, ,876 6,294 Russell 2000 Value TR 12, ,066 10,924 S&P 500 PR Index 2, ,941 2,508 S&P 500 TR Index 5, ,836 4,731 Shanghai Comp PR 2, ,587 2,644 ECO_RELEASE_DT Interest Rates Current Next Meeting Bank of Canada Ov ernight Lending Rate Bank of England Repo Rate European Central Bank Min bid rate at refi tende Federal Funds Target Rate 1.50% 0.75% 0.00% 2.25% 10/24/ /1/ /25/ /8/2018 3

4 Total Ret (%) Historical Prices 52 wk 52 wk Commodities ($US) Close Week YTD 1 YR 3YR 5 YR 10 YR high low Copper Corn Crude Oil Gold 1, ,287 1,132 1, ,366 1,160 Natural Gas Nickel 12, ,373 9,855 13,928 16,835 15,693 10,321 Platinum ,421 1,123 1, Soybeans ,320 1,164 1, Silv er Wheat Zinc 2, ,168 1,622 1,878 1,752 3,606 2,285 CPN MATURITY Bond Yields Coupon Maturity Date Canada 2 Year Treasuries /1/ Year Treasuries /1/ Year Treasuries /1/2048 ECB 2 Year Treasuries /11/ Year Treasuries /15/ Year Treasuries /15/2048 Japan 2 Year Treasuries /1/ Year Treasuries /20/ Year Treasuries /20/2048 US 2 Year Treasuries /30/ Year Treasuries /15/ Year Treasuries /15/2048 Current Price Yield to Maturity Total Ret (%) Historical Prices Currencies Close Week YTD 1 YR 3YR 5 YR 10 YR high low CAD / EURO CAD / USD CAD / UK POUND USD / AUSTRALIAN $ USD / BRAZIL REAL USD / EURO USD / MEXICAN PESO USD / UK POUND USD / YEN Source: Bloomberg, as of October 5,

5 Commentaries contained herein are provided as a general source of information based on information available as of October 5, 2018 and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and the manager accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Published Date: October 8,