A monthly summary of global economic performance including employment, trade, business conditions, leading indicators and regional data.

1. ....
Laird Research - Economics
June 11, 2015
Where we are now . . . . . . . . . . . . . . . . . . . . . . . . 1
Indicators for US Economy . . . . . . . . . . . . . . . . . . . 4
Global Financial Markets . . . . . . . . . . . . . . . . . . . . 5
US Key Interest Rates . . . . . . . . . . . . . . . . . . . . . . 10
US Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
QE Taper Tracker . . . . . . . . . . . . . . . . . . . . . . . . . 12
Exchange Rates . . . . . . . . . . . . . . . . . . . . . . . . . . 13
US Banking Indicators . . . . . . . . . . . . . . . . . . . . . . 14
US Employment Indicators . . . . . . . . . . . . . . . . . . . 15
US Business Activity Indicators . . . . . . . . . . . . . . . . 17
US Consumption Indicators . . . . . . . . . . . . . . . . . . 18
US Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Global Housing . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Global Business Indicators . . . . . . . . . . . . . . . . . . . 23
Canadian Indicators . . . . . . . . . . . . . . . . . . . . . . . 26
European Indicators . . . . . . . . . . . . . . . . . . . . . . . 28
Chinese Indicators . . . . . . . . . . . . . . . . . . . . . . . . 30
Global Climate Change . . . . . . . . . . . . . . . . . . . . . 31
Where we are now
Welcome to the Laird Report. We present a selection economic data
from around the world to help figure where we are today.
It looks like inflation is coming back, at least in the US. More im-
portantly, wage inflation is coming back - note the recent news articles
about Walmart giving wage hikes etc. Quit rates and job opennings
in the US are both up and the unemployment rate continues to drop.
Participation rates – the portion of the population working or looking
for work – are still at historic lows but holding steady, making year over
year comparisons more appropriate.
US wages grew 2.3% year over year. This is a big deal because one
of the major items holding down inflation was excess labour supply - its
hard to ask for a raise when you can be easily replaced with lower cost
workers. That seems to have changed. The Employment Cost Index
is showing an uptick indicating that those annecdotal data points are
part of a larger trend.
The other thing to consider is capacity utilization rates - basically,
how close businesses are to running out of the ability to make more with
the fixed assets they have. That rate has been slowly climbing over the
past three years, but has dropped a bit (note as well that GDP for Q1
in the US was hit by record low temperatures which may explain part
of that).
There’s a cascade effect that is expected: higher wages and busi-
nesses close to capacity translate into higher prices - but this is poten-
tially masked by lower oil prices and global commodity prices (thanks
for slowing down for us China!). You can look at the inflation charts to
see that overall CPI crashed, but if you exclude food and oil, it’s hum-
ming along nicely at about 2% - the consensus rate for the“appropriate”
amount of inflation.
Further, higher wages also translate into more disposible income,
more spending and a hotter economy - both of those things seem to be
happening now. So, we get a period of low prices, good domestic econ-
omy (US PMI is at highs right now), growing wages and low interest
rates.

2. Employment Cost Index
YoY%Change
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1.52.02.53.03.5
median: 2.46
2015 Q1: 2.68
Capacity Utilization
%ofMaxCapacity
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
70758085
median: 80.49
2015 Q1: 78.88
This is why we are seeing so many articles about the US Fed raising
interest rates. The Fed’s job is to get ahead of inflation - there seem to
be more factors pointing to inflation coming than away from it.
The Non-Accelerating Inflation Rate Of Unemployment (NAIRU) is
the Fed’s best guess at the level of unemployment which doesn’t cause
inflation to rise. Their target was recently dropped from 5.3% to 5.1%
- they seem nervous about actually raising rates and uncertain about
whether the recovery is sturdy enough to withstand normal interest
rates again. Thus they keep moving the target to give themselves more
wiggle room. See also their inflation targets.
Once rates go up, then in theory the US dollar is more expensive,
which makes exports more expensive (and imports cheaper) and the
cost of capital will go up, which cools investment – negative factors for
the US. The rest of the world will be happy to see that happen - the
US consumer’s appetite for imported goodies has bailed out the global
economy before – it is still the world’s biggest economy.
We are also seeing lots of global currency games as various
economies try to devalue their currencies against one another to boost
their economies. I’m looking at you Japan. And you too Germany -
how such a strong export economy gets away with a depressed currency
is beyond me. I guess that’s why the rest of Europe is there [waves to
Greece and Spain].
Unfortunately, currency manipulation is a zero sum game so that
only works if one of their trading partners is willing to see their currency
appreciate. The net result of this game would be a much stronger US
dollar against the asian currencies. Again, the whole world is watching
the US Fed because of all the ripple effects on currencies, imports etc.
that happen as a result.
We are seeing slower growth from China, but perhaps the biggest
unknown is the EU. Their Quantitative Easing (QE) program is in place
which should increase the money supply and simultaneously lower bond
yields (more money in the system and it costs less to borrow = a boost
for the Eurozone economy). However, a Greece debt default and Eu-
rozone exit is a big question mark, more because of the uncertainty it
creates than any specific impact - Greece is a low single digit percentage
of the Eurozone economy.
More importantly, we need to see that inflation is returning to the
Eurozone - they are currently deflating, in part from a sputtering econ-
omy and in part from lower crude prices. I’m not sure the impact of
saber rattling from Putin on Europe - it actually seems to be nothing,
though war is a consistent destroyer of value. Employment is improving
there and the business outlook is happier - but there is still an enormous
www.lairdresearch.com June 11, 2015 Page 2

3. amount of risk in the European economy.
An observation: note that much of the discussion of government in-
tervention is actually done through central banks and monetary policy
- literally trillions of dollars (and Euros) of assets are being bought and
eventually sold through extraordinary measures like QE. And this is af-
ter interest rates have been basically dropped to zero. There was a time
when monetary policy was paired with fiscal policy - the government
would run a deficit and spend on some project or another and monetary
policy would match it. It is historically odd that major economies have
tossed aside all fiscal levers in favour of monetary strategies.
Note that the issue with Greece is all about the appropriate level
of austerity and restructuring that needs to happen - at the same time
their central bank is engaging in a huge round of asset buying and rate
cutting to try to get their economies going again. Those monetary pol-
icy battles were fought and lost in Ireland, Spain and Portugal already
(not quite sure what the Italians are doing). Mark the moment: the
past 5 years have been a global science fair project to figure out the
absolute limits of monetary policy in a recession.
Formatting Notes The grey bars on the various charts are OECD
recession indicators for the respective countries. In many cases, the last
available value is listed, along with the median value (measured from
as much of the data series as is available).
Subscription Info For a FREE subscription to this monthly re-
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Laird Research, June 11, 2015
www.lairdresearch.com June 11, 2015 Page 3

4. Indicators for US Economy
Leading indicators are indicators that usually change before the
economy as a whole changes. They are useful as short-term predictors
of the economy. Our list includes the Philly Fed’s Leading Index which
summarizes multiple indicators; initial jobless claims and hours worked
(both decrease quickly when demand for employee services drops and
vice versa); purchasing manager indicies; new order and housing per-
mit indicies; delivery timings (longer timings imply more demand in
the system) and consumer sentiment (how consumers are feeling about
their own financial situation and the economy in general). Red dots
are points where a new trend has started.
Leading Index for the US
Index:Est.6monthgrowth
−3−10123
median: 1.38
Apr 2015: 1.12
Growth
Contraction
Initial Unemployment Claims
1000'sofClaimsperWeek
200400600
median: 350.25
Jun 2015: 278.75
Manufacturing Ave. Weekly Hours Worked
Hours
394041424344
median: 40.60
May 2015: 41.80
ISM Manfacturing − PMI
Index:SteadyState=50
3040506070
median: 53.40
May 2015: 52.80
expanding economy
contracting economy
Manufacturers' New Orders: Durable Goods
BillionsofDollars
150200250300
median: 183.82
Apr 2015: 234.39
Index of Truck Tonnage
TruckTonnageIndex
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
100120
median: 112.70
Mar 2015: 134.80
Capex (ex. Defense & Planes)
Percentchange(3months)
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−15−50510
median: 1.29
Apr 2015: −3.81
Chicago Fed National Activity Index
IndexValue
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−4−202
median: 0.075
Apr 2015: −0.15
U. Michigan: Consumer Sentiment
Index1966Q1=100
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
507090110
median: 88.40
May 2015: 90.70
www.lairdresearch.com June 11, 2015 Page 4

5. Global Financial Markets
Global Stock Market Returns
Country Index Name Close Date Current
Value
Weekly
Change
Monthly
Change
3 month
Change
Yearly
Change
Corr to
S&P500
Corr to
TSX
North America
USA S&P 500 Jun 11 2,108.9 0.6% I 0.2% I 3.4% I 8.5% I 1.00 0.70
USA NASDAQ Composite Jun 11 5,082.5 0.5% I 1.8% I 4.8% I 17.3% I 0.93 0.65
USA Wilshire 5000 Total Market Jun 11 22,310.0 0.7% I 0.4% I 3.3% I 8.2% I 1.00 0.71
Canada S&P TSX Jun 11 14,830.9 -1.3% J -2.1% J 0.6% I -0.4% J 0.70 1.00
Europe and Russia
France CAC 40 Jun 11 4,971.4 -0.3% J -1.1% J -0.5% J 9.1% I 0.48 0.48
Germany DAX Jun 11 11,332.8 -0.1% J -2.9% J -4.0% J 13.9% I 0.46 0.39
United Kingdom FTSE Jun 11 6,846.7 -0.2% J -2.6% J 1.9% I 0.1% I 0.57 0.53
Russia Market Vectors Russia ETF Jun 11 18.4 4.1% I -9.3% J 11.4% I -27.9% J 0.39 0.49
Asia
Taiwan TSEC weighted index Jun 11 9,302.5 -0.5% J -3.7% J -2.3% J 0.8% I 0.13 0.09
China Shanghai Composite Index Jun 05 5,023.1 2.3% I 16.9% I 54.6% I 146.1% I 0.03 -0.03
Japan NIKKEI 225 Jun 11 20,383.0 -0.5% J 3.9% I 8.9% I 35.3% I -0.10 -0.07
Hong Kong Hang Seng Jun 11 26,907.8 -2.3% J -2.9% J 13.4% I 15.7% I 0.08 0.12
Korea Kospi Jun 11 2,056.6 -0.8% J -1.9% J 3.8% I 2.1% I -0.20 -0.08
South Asia and Austrailia
India Bombay Stock Exchange Jun 11 26,371.0 -1.7% J -4.1% J -8.0% J 3.5% I 0.21 0.23
Indonesia Jakarta Jun 11 4,928.8 -3.3% J -4.7% J -9.1% J -0.9% J -0.01 0.04
Malaysia FTSE Bursa Malaysia KLCI Jun 11 1,734.8 -0.4% J -3.9% J -2.4% J -7.6% J 0.03 0.14
Australia All Ordinaries Jun 11 5,562.6 0.9% I -1.2% J -3.5% J 2.4% I 0.03 0.10
New Zealand NZX 50 Index Gross Jun 11 5,858.4 -0.1% J 1.9% I -0.1% J 13.1% I -0.27 -0.18
South America
Brasil IBOVESPA Jun 11 53,689.0 1.4% I -6.1% J 9.8% I -2.6% J 0.42 0.46
Argentina MERVAL Buenos Aires Jun 11 11,363.9 1.0% I -6.1% J 12.2% I 40.7% I 0.35 0.42
Mexico Bolsa index Jun 11 44,624.7 0.1% I -1.2% J 3.2% I 3.9% I 0.56 0.44
MENA and Africa
Egypt Market Vectors Egypt ETF Jun 11 51.8 -2.9% J -3.1% J -11.6% J -22.7% J 0.18 0.26
(Gulf States) Market Vectors Gulf States ETF Jun 11 27.5 -1.5% J -1.4% J 2.9% I -13.0% J 0.33 0.37
South Africa iShares MSCI South Africa Index Jun 11 63.6 2.9% I -6.5% J -0.5% J -5.5% J 0.61 0.51
(Africa) Market Vectors Africa ETF Jun 11 24.9 -0.8% J -5.6% J 0.6% I -22.7% J 0.41 0.39
Commodities
USD Spot Oil West Texas Int. Jun 08 $58.1 -3.5% J -2.1% J 16.4% I -44.7% J 0.08 0.21
USD Gold LME Spot Jun 11 $1,180.5 -0.2% J -0.4% J 1.9% I -6.5% J 0.06 0.14
Note: Correlations are based on daily arithmetic returns for the most recent 100 trading days.
www.lairdresearch.com June 11, 2015 Page 5

6. S&P 500 Composite Index
The S&P 500 Composite Index is widely regarded as the best single
gauge of the large cap U.S. equities market. A key figure is the valua-
tion level of the S&P500 as measured by the Price/Earnings ratio. We
present two versions: (1) a 12-month trailing earnings version which
reflects current earnings but is skewed by short term variances and (2)
a cyclically adjusted version which looks at the inflation adjusted earn-
ings over a 10 year period (i.e. at least one business cycle). Forecasted
earnings numbers are estimates provided by S&P.
S&P 500 Profit Margins and Overall Corporate Profit Margins (Trailing 12 months)
Percent
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
0
2
4
6
8
10
12
14
0
2
4
6
8
10
12
14
Percent
Total Corporate Profits (% of GDP) − median: 6.2%, Q1/15: 10.7%
Net Profit Margin (S&P 500 Earnings / Revenue) − median: 6.6%, Q1/15: 8.6%
S&P Quarterly Earnings (USD$ Inflation Adjusted to current prices)
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
−5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
−5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Tech Bubble
Japanese Asset Bubble
House BubbleAsian Financial Crisis
US Financial Crisis
Eurozone crisis
Oil Crisis I Oil Crisis II
Gulf War
Savings and Loans Crisis
High Inflation Period
Afganistan/Iraq WarVietnam War
Reported Earnings
Operating Earnings
Trailing P/E Ratios for S&P500
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
0
10
20
30
40
50
0
10
20
30
40
50
Multiple
Multiple
12−month P/E ( median = 17.4, Jun = 21.3)
10−year CAPE ( median = 19.5, Jun = 26.1)
www.lairdresearch.com June 11, 2015 Page 6

7. S&P 500 Composite Distributions
This is a view of the price performance of the S&P 500 index com-
panies. The area of each box is proportional to the company’s market
cap, while the colour is determined by the percentage change in price
over the past month. In addition, companies are sorted according to
their industry group.
AAPL
+0.14%
MSFT
−4.6%
GOOG
−0.61%
FB
+3.6%
ORCL
−0.2%
V
+5.9%
IBM
−2.1%
INTC
−4%
CSCO
−0.93%
QCOM
MA
+3.6%
EBAY
ACN
HPQ
TXN
CRM
NFLX
ADBE
ADP
CTSH
YHOO
INTU TEL
MU
ADI
EA
ADS
FIS
STX
XRX
WU
BRK−A
−1.8%
WFC
+4.5%
JPM
+7.7%
BAC
+8.6%
C
+6.5%
GS
AIG AXP
USB MS
MET
BLK
SPG
PNC
BK
COF
PRU
AMT
ACE CME
STT PSA
TRV
MMC
BEN
BBT
MHFI
ICE ALL
CCI
AFL
DFS
HCN GGP
STI
CB
BXP
VNO
IVZ
MTB
WY
PGR
L
RF
XL
O
JNJ
−0.89%
PFE
+2%
GILD
+13%
MRK
−1.6%
AMGN
−1.5%
ACT
+4.2%
UNH
+5.4%
BMY
+1.8%
ABBV
+5.8%
MDT
+0.82%
BIIB LLY
CELG ABT
ESRX MCK
TMO REGN
AET BAX
SYK MYL
CI
HCA
ALXN
HUM
VRTX
CAH
BDX
PRGO
ZTS
ZMH
ISRG
MNK
A
UHS
LH
AMZN
+2.4%
DIS
+0.09%
CMCSA
+0.6%
HD
+1.6%
MCD
−2.3%
NKE
+3.1%
SBUX
+4.7%
TWX
+1.2%
FOXA LOW
PCLN F
GM
TGT
TWC
+14%
DTV
TJX YUM CCL
JCI
CBS
VIAB
DLPH
LB
M DG
ORLY MAR
ROST
CMG
OMC
UA
HOT
JWN
GPC HBI
TIF RL
SNI
IPG
GE
+0.73%
UTX
MMM
+1.4%
BA
UPS UNP
HON
DHR
LMT
CAT
FDX
GD
EMR
ITW
CSX
DAL
RTN
DE
LUV
WM
IR
ROP
APH
TYC
ROK PH
AME
LLL
URI
WMT
−6.6%
PG
−1.1%
KO
−2%
PEP
−1.5%
PM
−1.4%
CVS
+2.2%
MO WBA
MDLZ
COST
CL
KMB RAI
KR
EL
GIS
ADM
LO
STZ
K
MJN
CAG
HRL
CPB
XOM
−4.2%
CVX
−7.3%
SLB
−2.5%
KMI
−7.8%
COP
OXY
−2%
EOG APC
PSX
HAL
BHI
DVN
PXD
SE
APA
HES NBL
DD
DOW
MON
LYB
PX
ECL
APD
SHW
IP
FCX
SIAL NUE
CF
AA
VMC
DUK
NEE
D
SO EIX ED
ES
NI FE
VZ
−5.3%
T
+1.3%
Information Technology
Financials
Health Care
Consumer Discretionary
Industrials
Consumer
Staples
Energy Materials
Utilities
Telecommunications
Services
<−25.0% −20.0% −15.0% −10.0% −5.0% 0.0% 5.0% 10.0% 15.0% 20.0% >25.0%
% Change in Price from May 1, 2015 to Jun 11, 2015
Average Median Median Median
Sector Change P/Sales P/Book P/E
Health Care 3.8% I 3.7 4.1 27.4
Financials 3.1% I 3.2 1.6 18.7
Consumer Discretionary 0.5% I 1.8 4.3 21.1
Information Technology 0.4% I 3.6 4.6 22.1
Industrials -0.1% J 1.6 3.7 19.5
Average Median Median Median
Sector Change P/Sales P/Book P/E
Materials -1.4% J 1.6 4.4 24.5
Consumer Staples -1.6% J 2.3 6.0 25.2
Telecommunications Services -2.6% J 1.4 2.1 31.4
Utilities -4.3% J 1.5 1.6 17.1
Energy -6.7% J 1.7 1.6 14.3
www.lairdresearch.com June 11, 2015 Page 7

8. US Equity Valuations
A key valuation metric is Tobin’s q: the ratio between the market
value of the entire US stock market versus US net assets at replacement
cost (ie. what you pay versus what you get). Warren Buffet famously
follows stock market value as a percentage of GNP, which is highly
(93%) correlated to Tobin’s q.
We can also take the reverse approach: assume the market has
valuations correct, we can determine the required returns of future es-
timated earnings. These are quoted for both debt (using BAA rated
securities as a proxy) and equity premiums above the risk free rate (10
year US Treasuries). These figures are alternate approaches to under-
standing the current market sentiment - higher premiums indicate a
demand for greater returns for the same price and show the level of
risk-aversion in the market.
Tobin's q (Market Equity / Market Net Worth) and S&P500 Price/Sales
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
0.25
0.50
0.75
1.00
1.25
1.50
1.75
0.25
0.50
0.75
1.00
1.25
1.50
1.75
Buying assets at a discount
Paying up for growth
Tobin Q (median = 0.76, Mar = 1.06)
S&P 500 Price/Sales (median = 1.33, Mar = 1.80)
Equity and Debt Risk Premiums: Spread vs. Risk Free Rate (10−year US Treasury)
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
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92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Implied Equity Premium (median = 4.2%, May = 4.7%)
Debt (BAA) Premium (median = 2.0%, May = 2.8%)
www.lairdresearch.com June 11, 2015 Page 8

9. US Mutual Fund Flows
Fund flows describe the net investments in equity and bond mutual
funds in the US market, as described in ICI’s “Trends in Mutual Fund
Investing” report. Note however that this is only part of the story as
it does not include ETF fund flows - part of the changes are investors
entering or leaving the market, and part is investors shifting to ETF’s
from mutual funds.
US Net New Investment Cash Flow to Mutual Funds
US$billions(monthly)
2007 2008 2009 2010 2011 2012 2013 2014 2015
−40−2002040
Domestic Equity
World Equity
Taxable Bonds
Municipal Bonds
US Net New Investment Cash Flow to Mutual Funds
US$billions(Monthly)
2007 2008 2009 2010 2011 2012 2013 2014 2015
−60−40−200204060
Flows to Equity
Flows to Bonds
Net Market Flows
www.lairdresearch.com June 11, 2015 Page 9

10. US Key Interest Rates
Interest rates are often leading indicators of stress in the financial
system. The yield curve show the time structure of interest rates on
government bonds - Usually the longer the time the loan is outstanding,
the higher the rate charged. However if a recession is expected, then
the fed cuts rates and this relationship is inverted - leading to negative
spreads where short term rates are higher than long term rates.
Almost every recession in the past century has been preceeded by an
inversion - though not every inversion preceeds a recession (just most
of the time).
For corporate bonds, the key issue is the spread between bond rates
(i.e. AAA vs BAA bonds) or between government loans (LIBOR vs
Fedfunds - the infamous “TED Spread”). Here a spike correlates to an
aversion to risk, which is an indication that something bad is happen-
ing.
US Treasury Yield Curves
ForwardInstantaneousRates(%)
14
15
16
17
18
19
20
21
22
23
24
25
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Jun 10, 2015 (Today)
May 11, 2015 (1 mo ago)
Mar 10, 2015 (3 mo ago)
10 Jun 2014 (1 yr ago)
3 Month & 10 Yr Treasury Yields
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0%
1%
2%
3%
4%
5%
6%
7%
0%
1%
2%
3%
4%
5%
6%
7%
10 Yr Treasury
3 Mo Treasury
Spread
AAA vs. BAA Bond Spreads
4%
5%
6%
7%
8%
9%
4%
5%
6%
7%
8%
9%
Percent
AAA
BAA
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
median: 91.00
Jun 2015: 91.00
0
100
200
300
0
100
200
300
Spread(bps)
LIBOR vs. Fedfunds Rate
0%
1%
2%
3%
4%
5%
6%
7%
0%
1%
2%
3%
4%
5%
6%
7%
Percent
3 mos t−bill
LIBOR
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
median: 36.53
Jun 2015: 25.89
0
100
200
300
0
100
200
300
Spread(bps)
www.lairdresearch.com June 11, 2015 Page 10

11. US Inflation
Generally, the US Fed tries to anchor long run inflation expectations
to approximately 2%. Inflation can be measured with the Consumer
Price Index (CPI) or the Personal Consumption Expenditures (PCE)
index.
In both cases, it makes sense to exclude items that vary quickly like
Food and Energy to get a clearer picture of inflation (usually called
Core Inflation). The Fed seems to think PCI more accurately reflects
the entire basket of goods and services that households purchase.
Finally, we can make a reasonable estimate of future inflation ex-
pectations by comparing real return and normal bonds to construct an
imputed forward inflation expectation. The 5y5y chart shows expected
5 year inflation rates at a point 5 years in the future. Neat trick that.
Consumer Price Index
Percent
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
−1%
0%
1%
2%
3%
4%
5%
6%
−1%
0%
1%
2%
3%
4%
5%
6%
US Inflation Rate YoY% (Apr = −0.11%)
US Inflation ex Food & Energy YoY% (Apr = 1.8%)
Personal Consumption Expenditures
Percent(YearoverYear)
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−10123456
PCE Inflation Rate YoY% (Apr = 0.12%)
PCE Core Inflation YoY% (Apr = 1.2%)
5−Year, 5−Year Forward Inflation Expectation Rate
Percent
08
09
10
11
12
13
14
15
16
17
18
19
20
−10123456
5 year forward Inflation Expectation
Actual 5yr Inflation (CPI measure)
Actual 5yr Inflation (PCE Measure)
www.lairdresearch.com June 11, 2015 Page 11

12. QE Taper Tracker
The US has been using the program of Quantitative Easing to pro-
vide monetary stimulous to its economy. The Fed has engaged in a
series of programs (QE1, QE2 & QE3) designed to drive down long
term rates and improve liquidity though purchases of treasuries, mor-
gage backed securites and other debt from banks.
The higher demand for long maturity securities would drive up their
price, but as these securities have a fixed coupon, their yield would be
decreased (yield ≈ coupon / price) thus driving down long term rates.
In 2011-2012, “Operation Twist” attempted to reduce rates without
increasing liquidity. They went back to QE in 2013.
The Fed chairman suggested in June 2013 the economy was recover-
ing enough that they could start slowing down purchases (“tapering”).
The Fed backed off after a brief market panic. The Fed announced in
Dec 2013 that it was starting the taper, a decision partly driven by
seeing key targets of inflation around 2% and unemployment being less
than 6.5%. In Oct 2014, they announced the end of purchases.
QE Asset Purchases to Date (Treasury & Mortgage Backed Securities)
Trillions
0.0
0.5
1.0
1.5
2.0
2.5
0.0
0.5
1.0
1.5
2.0
2.5
QE1 QE2 Operation Twist QE3 TaperTreasuries
Mortgage Backed Securities
Total Monthly Asset Purchases (Treasury + Mortgage Backed Securities)
Billions
−100
−50
0
50
100
150
200
−100
−50
0
50
100
150
200
Month to date Jun 10: $0.2
Inflation and Unemployment − Relative to Targets
Percent
0
2
4
6
8
10
0
2
4
6
8
10
Target Unemployment 6.5%
Target Inflation 2%
U.S. 10 Year and 3 Month Treasury Constant Maturity Yields
Percent
0
1
2
3
4
5
0
1
2
3
4
5
2008 2009 2010 2011 2012 2013 2014 2015
Short Term Rates:
Once at zero, Fed moved to QE
Long Term Rates:
Moving up in anticipation of Taper?
www.lairdresearch.com June 11, 2015 Page 12

13. Exchange Rates
10 Week Moving Average CAD Exchange Rates
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0.620.710.810.901.001.09
USA/CAD
0.550.610.660.720.770.82
Euro/CAD
59.1674.7190.26105.81121.36136.91
Japan/CAD
0.380.440.490.550.610.67
U.K./CAD
0.590.991.391.792.192.58
Brazil/CAD
CAD Appreciating
CAD Depreciating
Change in F/X: May 1 2015 to Jun 5 2015
(Trade Weighted Currency Index of USD Trading Partners)
−3.0%
−1.5%
1.5%
3.0%
Euro
−0.7%
UK
−2.3%
Japan
2.9%
South Korea
2.2%
China
0.3%
India
−1.3%
Brazil
3.3%
Mexico
1.9%
Canada
0.9%
USA
1.5%
Country vs. Average
Appreciating
Depreciating
% Change over 3 months vs. Canada
<−10.0% −8.0% −6.0% −4.0% −2.0% 0.0% 2.0% 4.0% 6.0% 8.0% >10.0%
CAD depreciatingCAD appreciating
ARG
−5.7%
AUS
−1.8%
BRA
−1.7%
CHN
−2.2%
IND
−5.0%
RUS
8.7%
USA
−2.8%
EUR
2.0%
JPY
−3.8%
KRW
0.0%
MXN
−2.6%
ZAR
−4.1%
www.lairdresearch.com June 11, 2015 Page 13

14. US Banking Indicators
The banking and finance industry is a key indicator of the health
of the US economy. It provides crucial liquidity to the economy in the
form of credit, and the breakdown of that system is one of the exac-
erbating factors of the 2008 recession. Key figures to track are the
Net Interest Margins which determine profitability (ie. the difference
between what a bank pays to depositors versus what the bank is paid
by creditors), along with levels of non-performing loans (i.e. loan loss
reserves and actual deliquency rates).
US Banks Net Interest Margin
Percent
3.03.54.04.5
median: 3.94
2015 Q1: 2.95
Repos Outstanding with Fed. Reserve
BillionsofDollars
0100300500
median: 55.62
Jun 2015: 226.20
Bank ROE − Assets between $300M−$1B
Percent
051015
median: 12.82
2015 Q1: 9.50
Consumer Credit Outstanding
%YearlyChange
−505101520
median: 7.62
Apr 2015: 6.63
Total Business Loans
%YearlyChange
−2001020 median: 8.57
Apr 2015: 12.10
US Nonperforming Loans
Percent
12345
median: 2.26
2015 Q1: 1.83
St. Louis Financial Stress Index
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0246
median: 0.069
Jun 2015: −1.03
Commercial Paper Outstanding
TrillionsofDollars
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1.01.41.82.2
median: 1.34
Jun 2015: 0.97
Residential Morgage Delinquency Rate
Percent
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
246810
median: 2.31
2015 Q1: 6.14
www.lairdresearch.com June 11, 2015 Page 14

15. US Employment Indicators
Unemployment rates are considered the “single best indicator of
current labour conditions” by the Fed. The pace of payroll growth is
highly correlated with a number of economic indicators.Payroll changes
are another way to track the change in unemployment rate.
Unemployment only captures the percentage of people who are in
the labour market who don’t currently have a job - another measure
is what percentage of the whole population wants a job (employed or
not) - this is the Participation Rate.
The Beveridge Curve measures labour market efficiency by looking
at the relationship between job openings and the unemployment rate.
The curve slopes downward reflecting that higher rates of unemploy-
ment occur coincidentally with lower levels of job vacancies.
Unemployment Rate
Percent
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
median: 6.20
May 2015: 5.50
4
5
6
7
8
9
10
11
4
5
6
7
8
9
10
11
Percent
4 5 6 7 8 9 10
2.02.53.03.54.0
Beveridge Curve (Unemployment vs. Job Openings)
Unemployment Rate (%)
JobOpenings(%totalEmployment)
Dec 2000 − Dec 2008
Jan 2009 − Mar 2015
Apr 2015
Participation Rate
Percent
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
6364656667
median: 66.00
May 2015: 62.90
Total Nonfarm Payroll Change
MonthlyChange(000s)
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−5000500
median: 164.00
May 2015: 280.00
www.lairdresearch.com June 11, 2015 Page 15

16. There are a number of other ways to measure the health of employ-
ment. The U6 Rate includes people who are part time that want a
full-time job - they are employed but under-utilitized. Temporary help
demand is another indicator of labour market tightness or slack.
The large chart shows changes in private industry employment lev-
els over the past year, versus how well those job segments typically pay.
Lots of hiring in low paying jobs at the expense of higher paying jobs
is generally bad, though perhaps not unsurprising in a recovery.
Median Duration of Unemployment
Weeks
510152025
median: 8.70
May 2015: 11.60
(U6) Unemployed + PT + Marginally Attached
Percent
810121416
median: 9.70
May 2015: 10.80
4−week moving average of Initial Claims
Jan1995=100
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
50100150200
median: 107.69
Jun 2015: 85.70
Unemployed over 27 weeks
MillionsofPersons
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
01234567
median: 0.79
May 2015: 2.50
Services: Temp Help
MillionsofPersons
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1.52.02.5
median: 2.25
May 2015: 2.90
0 200 400 600
15
20
25
30
35
40
Annual Change in Employment Levels (000s of Workers)
Averagewages($/hour)
Private Industry Employment Change (May 2014 − May 2015)
Construction
Durable Goods
Education
Financial Activities
Health Services
Information
Leisure and Hospitality
Manufacturing
Mining and Logging
Nondurable Goods
Other Services
Professional &
Business Services
Retail Trade
Transportation
Utilities
Wholesale Trade
Circle size relative to total employees in industry
www.lairdresearch.com June 11, 2015 Page 16

17. US Business Activity Indicators
Business activity is split between manufacturing activity and non-
manufacturing activity. We are focusing on forward looking business
indicators like new order and inventory levels to give a sense of the
current business environment.
Manufacturing Sector: Real Output
YoYPercentChange
−1001020
median: 6.22
2015 Q1: 9.12
ISM Manufacturing − PMI
Index
3040506070
May 2015: 52.80
manufac. expanding
manufac. contracting
ISM Manufacturing: New Orders Index
Index
304050607080
May 2015: 55.80
Increase in new orders
Decrease in new orders
Non−Manufac. New Orders: Capital Goods
BillionsofDollars
40506070
median: 57.72
Apr 2015: 68.33
Average Weekly Hours: Manufacturing
Hours
3940414243
median: 41.10
May 2015: 41.80
Industrial Production: Manufacturing
YoYPercentChange
−15−50510
median: 3.32
Apr 2015: 2.56
Total Business: Inventories to Sales Ratio
Ratio
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1.11.21.31.41.51.6
median: 1.36
Apr 2015: 1.36
Chicago Fed: Sales, Orders & Inventory
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−0.50.00.5
Apr 2015: 0.00
Above ave growth
Below ave growth
ISM Non−Manufacturing Bus. Activity Index
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
35455565
May 2015: 59.50
Growth
Contraction
www.lairdresearch.com June 11, 2015 Page 17

18. US Consumption Indicators
Variations in consumer activity are a leading indicator of the
strength of the economy. We track consumer sentiment (their expec-
tations about the future), consumer loan activity (indicator of new
purchase activity), and new orders and sales of consumer goods.
U. Michigan: Consumer Sentiment
Index1966Q1=100
5060708090110
median: 88.40
May 2015: 90.70
Consumer Loans (All banks)
YoY%Change
−10010203040
median: 7.71
Apr 2015: 4.63
Accounting
Change
Deliquency Rate on Consumer Loans
Percent
2.03.04.0
median: 3.47
2015 Q1: 2.00
New Orders: Durable Consumer Goods
YoY%Change
−20020
median: 4.08
Apr 2015: 6.06
New Orders: Non−durable Consumer Goods
YoY%Change
−2001020
median: 4.24
Apr 2015: −12.98
Personal Consumption & Housing Index
Index
−0.40.00.20.4
median: 0.02
Apr 2015: −0.06above ave growth
below ave growth
Light Cars and Trucks Sales
MillionsofUnits
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
10121416182022
median: 14.80
May 2015: 17.71
Personal Saving Rate
Percent
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
246810
median: 5.60
Apr 2015: 5.60
Real Retail and Food Services Sales
YoY%Change
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−10−505
median: 2.51
Apr 2015: 1.63
www.lairdresearch.com June 11, 2015 Page 18

19. US Housing
Housing construction is only about 5-8% of the US economy, how-
ever a house is typically the largest asset owned by a household. Since
personal consumption is about 70% of the US economy and house val-
ues directly impact household wealth, housing is an important indicator
in the health of the overall economy. In particular, housing investment
was an important driver of the economy getting out of the last few
recessions (though not this one so far). Here we track housing prices
and especially indicators which show the current state of the housing
market.
15 20 25 30 35
150200250300
Personal Income vs. Housing Prices (Inflation adjusted values)
NewHomePrice(000's)
Disposable Income Per Capita (000's)
Apr 2015
r2
: 89.4%
Range: Jan 1959 − Apr 2015
Blue dots > +5% change in next year
Red dots < −5% change in next year
New Housing Units Permits Authorized
MillionsofUnits
0.51.01.52.02.5
median: 1.35
Apr 2015: 1.14
New Home Median Sale Price
SalePrice$000's
100150200250300
Apr 2015: 297.30
Homeowner's Equity Level
Percent
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
4050607080
median: 66.47
2015 Q1: 55.60
New Homes: Median Months on the Market
Months
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
468101214
median: 5.00
Apr 2015: 4.00
US Monthly Supply of Homes
MonthsSupply
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
4681012
median: 5.90
Apr 2015: 4.80
www.lairdresearch.com June 11, 2015 Page 19

20. US Housing - FHFA Quarterly Index
The Federal Housing Finance Agency provides a quarterly survey
on house prices, based on sales prices and appraisal data. This gener-
ates a housing index for 355 municipal areas in the US from 1979 to
present. We have provided an alternative view of this data looking at
the change in prices from the peak in the 2007 time frame.
The goal is to provide a sense of where the housing markets are
weak versus strong.The colours represent gain or losses since the start
of the housing crisis (defined as the maximum price between 2007-2009
for each city). The circled dots are the cities in the survey, while the
background colours are interpolated from these points using a loess
smoother.
Change from 2007 Peak − Q1 2015
−50%
−40%
−30%
−20%
−10%
0%
10%
20%
30%
40%
50%
Today's Home Prices
Percentage Change from 2007−2009 Peak
Frequency
−75% −50% −25% 0% 25% 50% 75%
Year over Year Change − Q1 2015
−10%
−8%
−6%
−4%
−2%
0%
2%
4%
6%
8%
10%
YoY Change in this quarter
YoY Percent Change
Frequency
−15% −10% −5% 0% 5% 10% 15%
www.lairdresearch.com June 11, 2015 Page 20

21. Global Housing
The Bank for International Settlements has begun collecting global
housing indicies, which are useful for showing what has been happening
with global house prices. Note that these are not all the same data set -
each country measures housing prices in slightly different ways, so they
are only broadly comparable. Black lines are the data series, blue bars
on the right axis show the year over year percent change.
Brazil − Metro All Dwellings
Q12011=100
6080100140
Jan 2015: 148.01
Chile − All Dwellings
Dec 2013: 127.12
Peru (Lima) − All Dwellings
Dec 2014: 177.50
−4002040
Mexico − All Dwellings
Q12011=100
6080100140
Dec 2014: 118.60
China (Beijing) − All Dwellings
Mar 2015: 119.13
Hong Kong − Residential Prices
Feb 2015: 163.06
−4002040
Indonesia − Major Cities housing
Q12011=100
03
04
05
06
07
08
09
10
11
12
13
14
15
6080100140
Dec 2014: 130.00
India − Major Cities housing
03
04
05
06
07
08
09
10
11
12
13
14
15
Dec 2014: 185.55
Singapore − All Dwellings
03
04
05
06
07
08
09
10
11
12
13
14
15
Mar 2015: 102.25
−4002040
www.lairdresearch.com June 11, 2015 Page 21

22. Philippines (Manila) − Flats
Q12011=100
6080120
Dec 2014: 139.96
Japan − All Dwellings
Dec 2014: 102.50
Australia − All Dwellings
Dec 2014: 117.14
−4002040
New Zealand − All Dwellings Big Cities
Q12011=100
6080120
Dec 2014: 134.35
Turkey − All Dwellings
Feb 2015: 167.95
South Africa − Residential
Apr 2015: 108.62
−4002040
Israel − All Dwellings
Q12011=100
6080120
Jan 2015: 125.57
Korea − All Dwellings
Mar 2015: 109.77
Russia − All Dwellings (Urban)
Dec 2014: 125.83
−4002040
Euro zone − All Dwellings
Q12011=100
03
04
05
06
07
08
09
10
11
12
13
14
15
6080120
Dec 2014: 96.99
Canada − New Houses
03
04
05
06
07
08
09
10
11
12
13
14
15
Feb 2015: 107.87
US − New Single Family Houses
03
04
05
06
07
08
09
10
11
12
13
14
15
Dec 2014: 127.21
−4002040
www.lairdresearch.com June 11, 2015 Page 22

23. Global Business Indicators
Global Manufacturing PMI Reports
The Purchasing Managers’ Index (PMI) is an indicator reflecting
purchasing managers’ acquisition of goods and services. An index read-
ing of 50.0 means that business conditions are unchanged, a number
over 50.0 indicates an improvement while anything below 50.0 suggests
a decline. The further away from 50.0 the index is, the stronger the
change over the month. The chart at the bottom shows a moving av-
erage of a number of PMI’s, along with standard deviation bands to
show a global average.
Global M−PMI − May 2015
<40.0 42.0 44.0 46.0 48.0 50.0 52.0 54.0 56.0 58.0 >60.0
Steady ExpandingContracting
Eurozone
52.5
Global PMI
51.2
TWN
49.3MEX
53.3
KOR
47.8
JPN
50.9
VNM
54.8
IDN
47.1
ZAF
50.1
AUS
52.3
BRA
45.9
CAN
49.8
CHN
49.2
IND
52.6
RUS
47.6
SAU
57.0
USA
54.0
Global M−PMI Monthly Change
<−5.0 −4.0 −3.0 −2.0 −1.0 0.0 1.0 2.0 3.0 4.0 >5.0
PMI Change ImprovingDeteriorating
Eurozone
0.5
Global PMI
0.2
TWN
0.1MEX
−0.5
KOR
−1.0
JPN
1.0
VNM
1.3
IDN
0.4
ZAF
−1.4
AUS
4.3
BRA
−0.1
CAN
0.8
CHN
0.3
IND
1.3
RUS
−1.3
SAU
−1.3
USA
−0.1
Purchase Managers Index (Manufacturing) − China, Japan, USA, Canada, France, Germany, Italy, UK, Australia
04
05
06
07
08
09
10
11
12
13
14
15
3040506070
3040506070
Business Conditions Contracting
Business Conditions Expanding
www.lairdresearch.com June 11, 2015 Page 23

24. Global Manufacturing PMI Chart
This is an alternate view of the global PMI reports. Here, we look
at all the various PMI data series in a single chart and watch their
evolution over time.
Red numbers indicate contraction (as estimated by PMI) while
green numbers indicate expansion.
May13
Jun13
Jul13
Aug13
Sep13
Oct13
Nov13
Dec13
Jan14
Feb14
Mar14
Apr14
May14
Jun14
Jul14
Aug14
Sep14
Oct14
Nov14
Dec14
Jan15
Feb15
Mar15
Apr15
May15
Australia
India
Indonesia
Viet Nam
Taiwan
China
Korea
Japan
South Africa
Saudi Arabia
Turkey
Russia
United Kingdom
Greece
Germany
France
Italy
Czech Republic
Spain
Poland
Ireland
Netherlands
Eurozone
Brazil
Mexico
Canada
United States
Global PMI 50.6 50.6 50.8 51.6 51.8 52.1 53.1 53.3 53.0 53.2 52.4 51.9 52.2 52.6 52.4 52.6 52.2 52.2 51.8 51.6 51.7 52.0 51.7 51.0 51.2
52.3 52.0 53.7 53.1 52.8 51.8 54.7 55.0 53.7 57.1 55.5 55.4 56.4 57.3 55.8 57.9 57.5 55.9 54.8 53.9 53.9 55.1 55.7 54.1 54.0
53.2 52.4 52.0 52.1 54.2 55.6 55.3 53.5 51.7 52.9 53.3 52.9 52.2 53.5 54.3 54.8 53.5 55.3 55.3 53.9 51.0 48.7 48.9 49.0 49.8
51.7 51.3 49.7 50.8 50.0 50.2 51.9 52.6 54.0 52.0 51.7 51.8 51.9 51.8 51.5 52.1 52.6 53.3 54.3 55.3 56.6 54.4 53.8 53.8 53.3
50.4 50.4 48.5 49.4 49.9 50.2 49.7 50.5 50.8 50.4 50.6 49.3 48.8 48.7 49.1 50.2 49.3 49.1 48.7 50.2 50.7 49.6 46.2 46.0 45.9
48.3 48.8 50.3 51.4 51.1 51.3 51.6 52.7 54.0 53.2 53.0 53.4 52.2 51.8 51.8 50.7 50.3 50.6 50.1 50.6 51.0 51.0 52.2 52.0 52.5
48.7 48.8 50.8 53.5 55.8 54.4 56.8 57.0 54.8 55.2 53.7 53.4 53.6 52.3 53.5 51.7 52.2 53.0 54.6 53.6 54.1 52.2 52.5 54.0 55.5
49.7 50.3 51.0 52.0 52.7 54.9 52.4 53.5 52.8 52.9 55.5 56.1 55.0 55.3 55.4 57.3 55.7 56.6 56.2 56.9 55.1 57.5 56.8 55.8 57.1
48.0 49.3 51.1 52.6 53.1 53.4 54.4 53.2 55.4 55.9 54.0 52.0 50.8 50.3 49.4 49.0 49.5 51.2 53.2 52.8 55.2 55.1 54.8 54.0 52.4
48.1 50.0 49.8 51.1 50.7 50.9 48.6 50.8 52.2 52.5 52.8 52.7 52.9 54.6 53.9 52.8 52.6 52.6 54.7 53.8 54.7 54.2 54.3 54.2 55.8
50.1 51.0 52.0 53.9 53.4 54.5 55.4 54.7 55.9 56.5 55.5 56.5 57.3 54.7 56.5 54.3 55.6 54.4 55.6 53.3 56.1 55.6 56.1 54.7 55.5
47.3 49.1 50.4 51.3 50.8 50.7 51.4 53.3 53.1 52.3 52.4 54.0 53.2 52.6 51.9 49.8 50.7 49.0 49.0 48.4 49.9 51.9 53.3 53.8 54.8
46.4 48.4 49.7 49.7 49.8 49.1 48.4 47.0 49.3 49.7 52.1 51.2 49.6 48.2 47.8 46.9 48.8 48.5 48.4 47.5 49.2 47.6 48.8 48.0 49.4
49.4 48.6 50.7 51.8 51.1 51.7 52.7 54.3 56.5 54.8 53.7 54.1 52.3 52.0 52.4 51.4 49.9 51.4 49.5 51.2 50.9 51.1 52.8 52.1 51.1
45.3 45.4 47.0 48.7 47.5 47.3 49.2 49.6 51.2 51.3 49.7 51.1 51.0 49.4 48.7 50.1 48.4 48.8 49.1 49.4 48.3 48.4 48.9 46.5 48.0
51.3 52.9 54.8 57.2 56.3 56.5 58.4 57.3 56.7 56.2 55.3 57.3 57.0 57.5 55.4 52.5 51.6 53.2 53.5 52.5 53.1 54.1 54.4 51.9 52.0
50.4 51.7 49.2 49.4 49.4 51.8 49.4 48.8 48.0 48.5 48.3 48.5 48.9 49.1 51.0 51.0 50.4 50.3 51.7 48.9 47.6 49.7 48.1 48.9 47.6
51.1 51.2 49.8 50.9 54.0 53.3 55.0 53.5 52.7 53.4 51.7 51.1 50.1 48.8 48.5 50.3 50.4 51.5 52.2 51.4 49.8 49.6 48.0 48.5 50.2
57.3 56.6 56.6 57.5 58.7 56.7 57.1 58.7 59.7 58.6 57.0 58.5 57.0 59.2 60.1 60.7 61.8 59.1 57.6 57.9 57.8 58.5 60.1 58.3 57.0
50.4 51.6 52.2 56.5 49.1 51.5 51.6 50.5 50.3 51.5 50.3 47.4 44.3 46.6 45.9 49.0 50.7 52.7 50.5 50.2 49.8 50.0 51.6 51.5 50.1
51.5 52.3 50.7 52.2 52.5 54.2 55.1 55.2 56.6 55.5 53.9 49.4 49.9 51.5 50.5 52.5 51.7 52.4 52.0 52.0 52.2 51.6 50.3 49.9 50.9
51.1 49.4 47.2 47.5 49.7 50.2 50.4 50.8 50.9 49.8 50.4 50.2 49.5 48.4 49.3 50.3 48.8 48.7 49.0 49.9 51.1 51.1 49.2 48.8 47.8
49.2 48.2 47.7 50.1 50.2 50.9 50.8 50.5 49.5 48.5 48.0 48.1 49.4 50.7 51.7 50.2 50.2 50.4 50.0 49.6 49.7 50.7 49.6 48.9 49.2
47.1 49.5 48.6 50.0 52.0 53.0 53.4 55.2 55.5 54.7 52.7 52.3 52.4 54.0 55.8 56.1 53.3 52.0 51.4 50.0 51.7 52.1 51.0 49.2 49.3
48.8 46.4 48.5 49.4 51.5 51.5 50.3 51.8 52.1 51.0 51.3 53.1 52.5 52.3 51.7 50.3 51.7 51.0 52.1 52.7 51.5 51.7 50.7 53.5 54.8
51.6 51.0 50.7 48.5 50.2 50.9 50.3 50.9 51.0 50.5 50.1 51.1 52.4 52.7 52.7 49.5 50.7 49.2 48.0 47.6 48.5 47.5 46.4 46.7 47.1
50.1 50.3 50.1 48.5 49.6 49.6 51.3 50.7 51.4 52.5 51.3 51.3 51.4 51.5 53.0 52.4 51.0 51.6 53.3 54.5 52.9 51.2 52.1 51.3 52.6
43.8 49.6 42.0 46.4 51.7 53.2 47.7 47.6 46.7 48.6 47.9 44.8 49.2 48.9 50.7 47.3 46.5 49.4 50.1 46.9 49.0 45.4 46.3 48.0 52.3
www.lairdresearch.com June 11, 2015 Page 24

25. OECD International Trade Data
The OECD calculates import and export values for member coun-
tries. Figures are seasonally adjusted and measured in billions of US
dollars. Red lines indicate exports, while blue lines indicate imports.
Green lines indicate the zero level.
The top part of the graph shows the changes in exports and imports
on a year-over-year basis, while the bottom part shows the difference
between exports and imports for that given month (i.e. the trade bal-
ance)
China (Mar 2015)
YoYChange
−40
−20
0
20
40
60
80
Balance
08
09
10
11
12
13
14
15
0
20
40
60
80
100
US (Feb 2015)
YoYChange
−60
−40
−20
0
20
40
Balance
08
09
10
11
12
13
14
15
−60
−40
−20
0
Canada (Dec 2014)
YoYChange
−15
−10
−5
0
5
10
Balance
08
09
10
11
12
13
14
15
−2
0
2
4
6
Germany (Feb 2015)
YoYChange
−40
−20
0
20
Balance
08
09
10
11
12
13
14
15
0
5
10
15
20
25
30
Japan (Feb 2015)YoYChange
−30
−20
−10
0
10
20
Balance
08
09
10
11
12
13
14
15
−15
−10
−5
0
5
10
South Korea (Feb 2015)
YoYChange
−15
−10
−5
0
5
10
15
Balance
08
09
10
11
12
13
14
15
−4
−2
0
2
4
6
8
10
India (Feb 2015)
YoYChange
−10
−5
0
5
10
15
Balance
08
09
10
11
12
13
14
15
−15
−10
−5
0
Australia (Jan 2015)
YoYChange
−6
−4
−2
0
2
4
6
Balance
08
09
10
11
12
13
14
15
−2
−1
0
1
2
3
4
Eurozone (Nov 2013)
YoYChange
−80
−60
−40
−20
0
20
40
Balance
08
09
10
11
12
13
14
15
−10
0
10
20
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26. Canadian Indicators
Retail Trade (SA)
YoYPercentChange
−50510
median: 4.70
Mar 2015: 3.08
Total Manufacturing Sales Growth
YoYPercentGrowth
−2001020
median: 4.14
Mar 2015: 0.26
Manufacturing New Orders Growth
YoYPercentGrowth
−30−100102030
median: 4.54
Mar 2015: 1.47
10yr Government Bond Yields
0246810
median: 5.75
May 2015: 1.67
Manufacturing PMI
49515355
May 2015: 49.80
Sales and New Orders (SA)
YoYPercentChange
−2001020
Sales
New Orders (smoothed)
Tbill Yield Spread (10 yr − 3mo)
Spread(Percent)
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−101234
median: 1.33
May 2015: 1.04
Inflation (total and core)
YoYPercentChange
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−101234
median: 1.93
Apr 2015: 0.80
Total
Core
Inventory to Sales Ratio (SA)
Ratio
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1.31.41.51.6
median: 1.35
Mar 2015: 1.41
www.lairdresearch.com June 11, 2015 Page 26

27. 6.6 6.8 7.0 7.2 7.4 7.6
1.31.41.51.61.71.81.9
Beveridge Curve (Mar 2011 − Feb 2015)
as.numeric(can.bev$ui.rate)
as.numeric(can.bev$vacancies)
Mar 2011 − Dec 2012
Jan 2013 − Jan 2015
Feb 2015
Unemployment Rate
JobVacancyrate(Industrial)
Ownership/Rental Price Ratio
RatioofAccomodationOwnership/RentRatio
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
90100110120130140150
Calgary
Montreal
Vancouver
Toronto
Note: Using prices relative to 2002 as base year
Ownership relatively more
expensive vs 2002
Rent relatively more expensive vs 2002
Unemployment Rate (SA)
Percent
345678910
Canada 6.8%
Alberta 5.8%
Ontario 6.5%
Debt Service Ratios (SA)
Percent
46810
Total Debt: 6.7%
Mortgage: 3.4%
Consumer Debt: 6.4%
Housing Starts and Building Permits (smoothed)
YoYPercentChange
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−40−2002040
Permits
Starts
www.lairdresearch.com June 11, 2015 Page 27

28. European Indicators
Unemployment Rates
Percentage
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
051015202530
Business Employment Expectations
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−40−20010
Industrial Orderbook Levels
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−60−40−20020
Country Employment
Expect.
Unempl.
(%)
Bond Yields
(%)
Retail
Turnover
Manufacturing
Turnover
Inflation
(YoY %)
Industry
Orderbook
PMI
Series Dates May 2015 Apr 2015 Apr 2015 Apr 2015 Apr 2015 Apr 2015 May 2015 May 2015
France -10.9 I 10.5 K 0.44 J 104.7 I 109.5 I 0.1 I -18.5 J 49.4 I
Germany 1.5 I 4.7 K 0.12 J NA 115.9 I 0.3 -8.0 J 51.1 J
United Kingdom 4.8 I 5.4 K 1.65 I 113.0 I NA 0.0 K -1.0 J 52.0 I
Italy -0.4 I 12.4 J 1.36 I 100.0 I NA -0.1 J -10.9 J 54.8 I
Greece -0.6 I 25.6 K 12.00 I NA NA -1.8 I -27.4 I 48.0 I
Spain 2.4 J 22.7 J 1.31 I NA NA -0.7 I -1.9 I 55.8 I
Eurozone (EU28) -0.4 I 9.7 K 1.26 J 106.2 I 109.5 I -0.1 I -10.7 J NA
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29. Government Bond YieldsLongTermYields%
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0246810
Economic Sentiment
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
60708090110130
Consumer Confidence
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−100−60−20020
Inflation (Harmonized Prices)
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
median: 1.90
Mar 2015: −0.10−1
0
1
2
3
4
5
6
7
Euro Area
US
Harmonized Inflation: Mar 2015
AUT
0.9%
BGR
−0.9%
DEU
0.3%
ESP
−0.7%
FIN
−0.1%
FRA
0.1%
GBR
0.0%
GRC
−1.8%
HRV
−0.1%
HUN
0.0%
IRL
−0.4%
ISL
−0.3%
ITA
−0.1%
NOR
1.8%
POL
−0.9%
ROU
0.6%
SWE
0.5%
<−1.0%0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% >7.0%
YoY % Change in Prices
PMI: May 2015
<40.042.0 44.0 46.0 48.0 50.0 52.0 54.0 56.0 58.0>60.0
Steady ExpandingContracting
BRA
45.9
CAN
49.8
DEU
51.1
ESP
55.8
FRA
49.4
GBR
52.0
GRC
48.0
IRL
57.1
ITA
54.8
MEX
53.3
POL
52.4
SAU
57.0
TUR
50.2
USA
54.0
RUS
47.6
PMI Change: Apr − May
<−5.0−4.0 −3.0 −2.0 −1.0 0.0 1.0 2.0 3.0 4.0 >5.0
PMI Change ImprovingDeteriorating
CAN
0.8
DEU
−1.0
ESP
1.6
FRA
1.4
GBR
0.1
GRC
1.5
IRL
1.3
ITA
1.0
POL
−1.6
TUR
1.7
USA
−0.1
RUS
−1.3
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30. Chinese Indicators
Tracking the Chinese economy is a tricky. As reported in the Fi-
nancial Times, Premier Li Keqiang confided to US officials in 2007 that
gross domestic product was “man made” and “for reference only”. In-
stead, he suggested that it was much more useful to focus on three alter-
native indicators: electricity consumption, rail cargo volumes and bank
lending (still tracking down that last one). We also include the PMI
- which is an official version put out by the Chinese government and
differs slightly from an HSBC version. Finally we include the Shanghai
Composite Index as a measure of stock performance.
Manufacturing PMI
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
4045505560
May 2015: 49.20
Shanghai Composite Index
IndexValue(MonthlyHigh/Low)
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0100030005000
Jun 2015: 5023.10
Electricity Generated
100MillionKWH(logscale)
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1000200030005000
Apr 2015: 4450.00
Electricity Generated
Long Term Trend
Short Term Average
Consumer Confidence Index
Index
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
98100102104106108110
median: 103.70
Apr 2015: 107.60
Exports
YoYPercentChange
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−20020406080
median: 18.60
May 2015: −2.50
Retail Sales Growth
YoYPercentChange
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
101520
median: 13.00
May 2015: 10.10
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31. Global Climate Change
Temperature and precipitation data are taken from the US National
Climatic Data Center and presented as the average monthly anomaly
from the previous 6 months. Anomalies are defined as the difference
from the average value over the period from 1961-1990 for precipitation
and 1971-2000 for temperature.
Average Temperature Anomalies from Nov 2014 - Apr 2015
<−4.0 −3.0 −2.0 −1.0 0.0 1.0 2.0 3.0 >4.0
Anomalies in Celcius WarmerCooler Anomalies in Celcius
−4 −2 0 2 4
Average 6 month Precipitation Anomalies from Oct 2014 - Mar 2015
<−40.0 −30.0 −20.0 −10.0 0.0 10.0 20.0 30.0 >40.0
Anomalies in millimeters WetterDrier Anomalies in millimeters
−40 −20 0 20 40
www.lairdresearch.com June 11, 2015 Page 31