The Laird Research report from July 16, 2015, provides an analysis of various economic indicators affecting the U.S. economy and global financial markets, highlighting disappointing growth in North America and Europe. It discusses the disparate performance of Canada's economy, the impacts of oil price declines, and challenges faced by the Eurozone, particularly regarding Germany's role. The report also includes data on U.S. leading indicators, stock market performance, and S&P 500 valuations.

1. ....
Laird Research - Economics
July 16, 2015
Where we are now . . . . . . . . . . . . . . . . . . . . . . . . 1
Indicators for US Economy . . . . . . . . . . . . . . . . . . . 2
Global Financial Markets . . . . . . . . . . . . . . . . . . . . 3
US Key Interest Rates . . . . . . . . . . . . . . . . . . . . . . 8
US Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
QE Taper Tracker . . . . . . . . . . . . . . . . . . . . . . . . . 10
Exchange Rates . . . . . . . . . . . . . . . . . . . . . . . . . . 11
US Banking Indicators . . . . . . . . . . . . . . . . . . . . . . 12
US Employment Indicators . . . . . . . . . . . . . . . . . . . 13
US Business Activity Indicators . . . . . . . . . . . . . . . . 15
US Consumption Indicators . . . . . . . . . . . . . . . . . . 16
US Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Global Housing . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Global Business Indicators . . . . . . . . . . . . . . . . . . . 21
Canadian Indicators . . . . . . . . . . . . . . . . . . . . . . . 24
European Indicators . . . . . . . . . . . . . . . . . . . . . . . 26
Chinese Indicators . . . . . . . . . . . . . . . . . . . . . . . . 28
Global Climate Change . . . . . . . . . . . . . . . . . . . . . 29
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.
The first half of the year seems to have disappointed in North Amer-
ica and Europe with lackluster GDP reports. The cold snap in the US
was blamed for poor Q1 performance in particular. The US is driven
by a much stronger consumer sector - better unemployment numbers
will do that. But the economy has many moving parts and the collapse
in oil prices has made a massive impact on capital expenditures and
corporate investment - the energy sector isn’t as big as the consumer
sector, but the downturn there was much sharper.
Canada is an interesting case because of the size of the energy in-
dustry in the west. Canada’s GDP in Q1 was negative and it seems Q2
is also likely negative (isn’t that a recession?). Canada has a two speed
economy: a struggling, western focused energy industry and a slower
growing consumer products/manufacturing industry in the east. These
two are not balanced out - the Bank of Canada was wrongly assuming
that manufacturing would pick up the slack with lower energy prices
and a favourable exchange rate.
There’s also the Sturm und Drang of the Eurozone. Clearly Ger-
many just doesn’t belong and should be kicked out of the Eurozone
- the idea that Germany was going to impose financial discipline on
Spain, Italy, France and the other rabble has been shown to be unsup-
portable. Germany simply isn’t Greece. The Eurozone is not about
European unity - it is really about lowering the value of the Deutsche
mark (aka the Euro) and the Germans don’t want to pay too much for
that service. Note: contagion was invented in the Balkans.
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, July 16, 2015

2. 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
−3−1123
median: 1.40
May 2015: 1.64
Growth
Contraction
Initial Unemployment Claims
1000'sofClaimsperWeek
200400600
median: 350.12
Jul 2015: 279.50
Manufacturing Ave. Weekly Hours Worked
Hours
394041424344
median: 40.60
Jun 2015: 41.80
ISM Manfacturing − PMI
Index:SteadyState=50
3040506070
median: 53.40
Jun 2015: 53.50
expanding economy
contracting economy
Manufacturers' New Orders: Durable Goods
BillionsofDollars
150200250300
median: 183.87
May 2015: 227.56
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: 112.90
Apr 2015: 129.30
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: 1.11
May 2015: 0.58
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: 0.07
May 2015: −0.17
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
Jun 2015: 96.10
www.lairdresearch.com July 16, 2015 Page 2

3. 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 Jul 15 2,107.4 3.0% I 1.1% I 0.0% I 6.8% I 1.00 0.72
USA NASDAQ Composite Jul 15 5,098.9 3.9% I 1.4% I 1.8% I 15.5% I 0.94 0.71
USA Wilshire 5000 Total Market Jul 15 22,252.6 2.9% I 0.8% I -0.4% J 6.6% I 1.00 0.72
Canada S&P TSX Jul 15 14,662.3 1.7% I -0.6% J -5.1% J -2.8% J 0.72 1.00
Europe and Russia
France CAC 40 Jul 15 5,047.2 8.8% I 4.8% I -3.9% J 17.2% I 0.51 0.48
Germany DAX Jul 15 11,539.7 7.4% I 5.0% I -5.7% J 18.7% I 0.54 0.45
United Kingdom FTSE Jul 15 6,753.8 4.1% I 0.6% I -4.8% J 0.6% I 0.58 0.49
Russia Market Vectors Russia ETF Jul 15 17.8 5.3% I -3.7% J -13.2% J -29.5% J 0.43 0.45
Asia
Taiwan TSEC weighted index Jul 15 9,054.2 0.9% I -2.2% J -5.1% J -5.4% J 0.33 0.31
China Shanghai Composite Index Jul 13 3,970.4 5.2% I -21.6% J -3.7% J 92.1% I 0.15 0.23
Japan NIKKEI 225 Jul 15 20,463.3 3.7% I 0.4% I 3.0% I 32.9% I 0.31 0.37
Hong Kong Hang Seng Jul 15 25,055.8 6.5% I -6.7% J -9.3% J 6.8% I 0.29 0.30
Korea Kospi Jul 15 2,072.9 2.8% I 1.5% I -2.2% J 3.0% I 0.11 0.23
South Asia and Austrailia
India Bombay Stock Exchange Jul 15 28,198.3 1.8% I 6.1% I -2.1% J 11.8% I 0.28 0.32
Indonesia Jakarta Jul 15 4,869.8 -0.0% J 0.7% I -10.1% J -4.0% J 0.14 0.09
Malaysia FTSE Bursa Malaysia KLCI Jul 15 1,715.6 1.2% I -0.4% J -6.8% J -9.1% J 0.25 0.25
Australia All Ordinaries Jul 15 5,609.7 2.8% I 1.2% I -4.6% J 2.1% I 0.15 0.22
New Zealand NZX 50 Index Gross Jul 15 5,806.0 0.7% I -0.2% J -0.9% J 13.5% I -0.10 0.01
South America
Brasil IBOVESPA Jul 15 52,902.0 2.2% I -0.4% J -3.7% J -5.5% J 0.44 0.45
Argentina MERVAL Buenos Aires Jul 15 12,301.9 6.9% I 9.6% I 1.4% I 42.6% I 0.44 0.45
Mexico Bolsa index Jul 15 45,107.1 1.4% I 1.6% I -0.3% J 2.6% I 0.62 0.51
MENA and Africa
Egypt Market Vectors Egypt ETF Jul 15 45.8 8.2% I -8.0% J -16.3% J -30.4% J 0.32 0.22
(Gulf States) Market Vectors Gulf States ETF Jul 15 27.7 3.7% I -0.0% J -1.5% J -12.3% J 0.32 0.31
South Africa iShares MSCI South Africa Index Jul 15 64.2 6.2% I 3.2% I -7.2% J -5.0% J 0.55 0.46
(Africa) Market Vectors Africa ETF Jul 15 23.1 1.8% I -7.0% J -12.7% J -27.9% J 0.36 0.27
Commodities
USD Spot Oil West Texas Int. Jul 13 $52.2 -0.6% J -12.3% J 0.5% I -48.7% J 0.10 0.15
USD Gold LME Spot Jul 15 $1,154.8 0.0% I -2.0% J -2.9% J -12.0% J 0.09 0.07
Note: Correlations are based on daily arithmetic returns for the most recent 100 trading days.
www.lairdresearch.com July 16, 2015 Page 3

4. 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
17
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%, Q2/15: 8.5%
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
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87
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89
90
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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
17
−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
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67
68
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70
71
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74
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00
01
02
03
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06
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08
09
10
11
12
13
14
15
16
17
0
10
20
30
40
50
0
10
20
30
40
50
Multiple
Multiple
12−month P/E ( median = 17.4, Jul = 21.3)
10−year CAPE ( median = 19.5, Jul = 25.6)
www.lairdresearch.com July 16, 2015 Page 4

5. 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
−3.8%
GOOG
+5.1%
MSFT
−3.4%
FB
+12%
ORCL
−6.9%
V
+1.4%
IBM
−0.92%
CSCO
−3.9%
INTC
−13%
MA
+2.9%
QCOM EBAY
ACN
HPQ
TXN
CRM
NFLX
ADBE
ADP
CTSH
YHOO
INTU TEL
EA
MU
ADI ADS
FIS
CA
XRX
WU
BRK−A
−1.7%
WFC
+2.2%
JPM
+4.5%
BAC
+3.8%
C
+2.7%
GS
AIG AXP
MS USB
MET
BLK
SPG
PNC
COF
BK
AMT
PRU
PSA ACE
CME TRV
STT
MMC
BEN
BBT
MHFI
CB ALL
EQR
CCI
AFL
ICE
DFS HCN
STI
HIG
BXP
VNO
FITB
MTB
IVZ
WY L
RF
XL O
JNJ
−0.26%
PFE
+1.5%
GILD
+2.9%
MRK
−4.2%
AGN
+3.9%
AMGN
+1.5%
UNH
+4.3%
BMY
+5.4%
ABBV
+4.3%
MDT
−1.1%
CELG LLY
BIIB ABT
ESRX REGN
TMO MCK
AET
CI
HCA
SYK
MYL
VRTX
BDX
PRGO BSX
ZTS
ZBH
ISRG
DVA
EW
HSP
MNK
A
AMZN
+8%
DIS
+6.2%
CMCSA
+7.6%
HD
+3.9%
NKE
+10%
MCD
+2.7%
SBUX
+6.8%
TWX
+6.6%
FOXA LOW
PCLN F
TGT
TWC
GM
TJX
DTV CCL YUM
JCI
CBS
LB
VIAB
ORLY
DG
M MAR
AZO
CMG
UA
HOT
MHK
KMX
HBI
TIF
RL
DRI
SNI
HAR
WMT
−1.3%
PG
+4%
KO
+0.56%
PEP
+2%
PM
−0.61%
CVS
+7.1%
WBA MO
MDLZ
COST
+1.1%
CL
KHC
RAI
KMB GIS
EL
K
HSY
KR TSN
GE
−2.3%
BA
MMM
−1.4%
UTX
−4.7%
UPS
−1.6%
UNP
−5%
HON
DHR LMT
CAT
FDX
GD
EMR
DAL
ITW NOC DE
CSX
ETN
RTN
AAL
PCP
NSC
GLW
CMI
LUV
WM IR
ROP
APH
ROK
TYC
PH
PLL
LLL
XOM
−2.4%
CVX
−6.9%
SLB
−5.9%
KMI COP
OXY EOG
PSX WMB
APC HAL
VLO
BHI
DVN
SE
APA
PXD
HES
NOV
MRO
HP
DOW
DD
MON
LYB
PX
ECL
APD
SHW
IP
WRK
FCX SIAL
CF
NUE
AA SEE
DUK
NEE
D
SO
PPL
EIX ED
XEL
ES
FE
NI
VZ
−3.7%
T
+2.2%
Information Technology
Financials
Health Care
Consumer Discretionary
Consumer Staples
Industrials
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 Jun 1, 2015 to Jul 14, 2015
Average Median Median Median
Sector Change P/Sales P/Book P/E
Consumer Discretionary 3.1% I 1.8 4.3 21.6
Health Care 2.0% I 3.6 4.2 27.3
Financials 1.8% I 3.1 1.6 18.9
Consumer Staples 1.5% I 2.3 6.1 25.9
Telecommunications Services -1.4% J 1.4 2.1 31.7
Average Median Median Median
Sector Change P/Sales P/Book P/E
Industrials -1.7% J 1.6 3.8 19.1
Information Technology -1.9% J 3.5 4.5 21.5
Utilities -3.8% J 1.5 1.6 16.8
Energy -5.1% J 1.5 1.6 14.4
Materials -8.4% J 1.6 4.2 22.1
www.lairdresearch.com July 16, 2015 Page 5

6. 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
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01
02
03
04
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06
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09
10
11
12
13
14
15
16
17
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 = 1.34, Jun = 1.83)
Equity and Debt Risk Premiums: Spread vs. Risk Free Rate (10−year US Treasury)
63
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99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
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%, Jun = 4.6%)
Debt (BAA) Premium (median = 2.0%, Jun = 2.8%)
www.lairdresearch.com July 16, 2015 Page 6

7. 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 July 16, 2015 Page 7

8. 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
0.0
0.5
1.0
1.5
2.0
2.5
Jul 14, 2015 (Today)
Jun 15, 2015 (1 mo ago)
Apr 14, 2015 (3 mo ago)
14 Jul 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
Jul 2015: 102.00
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: 36.50
Jul 2015: 27.34
0
100
200
300
0
100
200
300
Spread(bps)
www.lairdresearch.com July 16, 2015 Page 8

9. 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% (May = 0.034%)
US Inflation ex Food & Energy YoY% (May = 1.7%)
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% (May = 0.22%)
PCE Core Inflation YoY% (May = 1.2%)
5−Year, 5−Year Forward Inflation Expectation Rate
Percent
07
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 July 16, 2015 Page 9

10. 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 Jul 08: $−14.1
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 July 16, 2015 Page 10

11. 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: Jun 1 2015 to Jul 10 2015
(Trade Weighted Currency Index of USD Trading Partners)
−3.0%
−1.5%
1.5%
3.0%
Euro
−2.2%
UK
−2.1%
Japan
−1.6%
South Korea
0.9%
China
0.1%
India
−0.5%
Brazil
0.5%
Mexico
1.6%
Canada
1.2%
USA
0.1%
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
−0.3%
AUS
0.3%
BRA
0.2%
CHN
2.7%
IND
1.0%
RUS
−8.9%
USA
2.7%
EUR
6.2%
JPY
0.0%
KRW
0.0%
MXN
0.0%
ZAR
0.3%
www.lairdresearch.com July 16, 2015 Page 11

12. 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: 55.83
Jul 2015: 301.86
Bank ROE − Assets between $300M−$1B
Percent
051015
median: 12.82
2015 Q1: 9.50
Consumer Credit Outstanding
%YearlyChange
−505101520
median: 7.62
May 2015: 6.51
Total Business Loans
%YearlyChange
−2001020 median: 8.59
Jun 2015: 12.45
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: 0.074
Jul 2015: −0.92
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
Jul 2015: 1.02
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 July 16, 2015 Page 12

13. 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: 6.15
Jun 2015: 5.30
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 − Apr 2015
May 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
Jun 2015: 62.60
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: 165.00
Jun 2015: 223.00
www.lairdresearch.com July 16, 2015 Page 13

14. 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
Jun 2015: 11.30
(U6) Unemployed + PT + Marginally Attached
Percent
810121416
median: 9.70
Jun 2015: 10.50
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: 107.65
Jul 2015: 85.93
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
Jun 2015: 2.05
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
Jun 2015: 2.91
0 200 400 600
15
20
25
30
35
40
Annual Change in Employment Levels (000s of Workers)
Averagewages($/hour)
Private Industry Employment Change (Jun 2014 − Jun 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 July 16, 2015 Page 14

15. 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
Jun 2015: 53.50
manufac. expanding
manufac. contracting
ISM Manufacturing: New Orders Index
Index
304050607080
Jun 2015: 56.00
Increase in new orders
Decrease in new orders
Non−Manufac. New Orders: Capital Goods
BillionsofDollars
40506070
median: 57.75
May 2015: 67.80
Average Weekly Hours: Manufacturing
Hours
3940414243
median: 41.10
Jun 2015: 41.80
Industrial Production: Manufacturing
YoYPercentChange
−15−50510
median: 3.31
Jun 2015: 2.07
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
May 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
May 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
Jun 2015: 61.50
Growth
Contraction
www.lairdresearch.com July 16, 2015 Page 15

16. 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
Jun 2015: 96.10
Consumer Loans (All banks)
YoY%Change
−10010203040
median: 7.68
Jun 2015: 4.37
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: 4.10
May 2015: 4.82
New Orders: Non−durable Consumer Goods
YoY%Change
−2001020
median: 4.23
May 2015: −11.45
Personal Consumption & Housing Index
Index
−0.40.00.20.4
median: 0.02
May 2015: −0.09above 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: 14.81
Jun 2015: 17.11
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
May 2015: 5.10
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: 2.50
May 2015: 2.31
www.lairdresearch.com July 16, 2015 Page 16

17. 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)
May 2015
r2
: 89.4%
Range: Jan 1959 − May 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
May 2015: 1.25
New Home Median Sale Price
SalePrice$000's
100150200250300
May 2015: 282.80
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
May 2015: 3.90
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
May 2015: 4.50
www.lairdresearch.com July 16, 2015 Page 17

18. 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 July 16, 2015 Page 18

19. 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
Sep 2014: 123.11
Peru (Lima) − All Dwellings
Dec 2014: 177.50
−4002040
Mexico − All Dwellings
Q12011=100
6080100140
Mar 2015: 115.42
China (Beijing) − All Dwellings
Apr 2015: 120.10
Hong Kong − Residential Prices
Apr 2015: 165.74
−4002040
Indonesia − Major Cities housing
Q12011=100
02
03
04
05
06
07
08
09
10
11
12
13
14
15
6080100140
Mar 2015: 131.43
India − Major Cities housing
02
03
04
05
06
07
08
09
10
11
12
13
14
15
Dec 2014: 185.55
Singapore − All Dwellings
02
03
04
05
06
07
08
09
10
11
12
13
14
15
Mar 2015: 102.25
−4002040
www.lairdresearch.com July 16, 2015 Page 19

20. Philippines (Manila) − Flats
Q12011=100
6080120
Mar 2015: 142.72
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
Mar 2015: 171.45
South Africa − Residential
May 2015: 106.18
−4002040
Israel − All Dwellings
Q12011=100
6080120
Feb 2015: 126.45
Korea − All Dwellings
May 2015: 110.72
Russia − All Dwellings (Urban)
Dec 2014: 125.83
−4002040
Euro zone − All Dwellings
Q12011=100
02
03
04
05
06
07
08
09
10
11
12
13
14
15
6080120
Dec 2014: 97.02
Canada − New Houses
02
03
04
05
06
07
08
09
10
11
12
13
14
15
Apr 2015: 107.97
US − New Single Family Houses
02
03
04
05
06
07
08
09
10
11
12
13
14
15
Mar 2015: 122.31
−4002040
www.lairdresearch.com July 16, 2015 Page 20

21. 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 − June 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
51.0
TWN
46.3MEX
52.0
KOR
46.1
JPN
50.1
VNM
52.2
IDN
47.8
ZAF
46.4
AUS
44.2
BRA
46.5
CAN
51.3
CHN
49.4
IND
51.3
RUS
48.7
SAU
56.1
USA
53.6
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
0.3
Global PMI
−0.2
TWN
−3.0MEX
−1.3
KOR
−1.7
JPN
−0.8
VNM
−2.6
IDN
0.7
ZAF
−3.1
AUS
−8.1
BRA
0.6
CAN
1.5
CHN
0.2
IND
−1.3
RUS
1.1
SAU
−0.9
USA
−0.4
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 July 16, 2015 Page 21

22. 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.
Jun13
Jul13
Aug13
Sep13
Oct13
Nov13
Dec13
Jan14
Feb14
Mar14
Apr14
May14
Jun14
Jul14
Aug14
Sep14
Oct14
Nov14
Dec14
Jan15
Feb15
Mar15
Apr15
May15
Jun15
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 50.8 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 51.0
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 53.6
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 51.3
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 52.0
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 46.5
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 52.2 52.5
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 56.2
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 54.6
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 54.3
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 54.5
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 56.9
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 54.1
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 50.7
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 51.9
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 46.9
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 51.4
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 48.7
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 49.0
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 56.1
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 49.5 46.4
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 50.1
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 46.1
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 49.4
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 46.3
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 52.2
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 47.8
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 51.3
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 44.2
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23. 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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24. Canadian Indicators
Retail Trade (SA)
YoYPercentChange
−50510
median: 4.70
Apr 2015: 1.71
Total Manufacturing Sales Growth
YoYPercentGrowth
−2001020
median: 4.11
May 2015: −3.61
Manufacturing New Orders Growth
YoYPercentGrowth
−30−100102030
median: 4.52
May 2015: −5.64
10yr Government Bond Yields
0246810
median: 5.75
Jun 2015: 1.77
Manufacturing PMI
49515355
Jun 2015: 51.30
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
Jun 2015: 1.19
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
May 2015: 0.87
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
May 2015: 1.44
www.lairdresearch.com July 16, 2015 Page 24

25. 6.6 6.8 7.0 7.2 7.4 7.6
1.31.41.51.61.71.81.9
Beveridge Curve (Mar 2011 − Mar 2015)
as.numeric(can.bev$ui.rate)
as.numeric(can.bev$vacancies)
Mar 2011 − Dec 2012
Jan 2013 − Feb 2015
Mar 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 5.7%
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 July 16, 2015 Page 25

26. 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 Jun 2015 May 2015 Jun 2015 May 2015 May 2015 May 2015 Jun 2015 Jun 2015
France -9.7 I 10.3 I 1.20 I 106.0 I 109.0 J 0.3 I -19.7 J 50.7 I
Germany 1.7 I 4.7 K 0.79 I NA 116.8 I 0.7 I -10.0 J 51.9 I
United Kingdom 4.7 J 5.6 I 2.06 I 113.4 I NA 0.1 I -7.5 J 51.4 J
Italy 0.3 I 12.4 K 2.20 I 100.5 I NA 0.2 I -12.1 J 54.1 J
Greece -3.2 J 25.6 J 11.43 I NA NA -1.4 I -32.0 J 46.9 J
Spain -0.5 J 22.5 J 2.22 I NA NA -0.3 I 2.2 I 54.5 J
Eurozone (EU28) -0.9 J 9.6 K 1.26 J 106.7 I 110.4 I 0.0 I -12.0 J NA
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27. 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
Apr 2015: 0.00−1
0
1
2
3
4
5
6
7
Euro Area
US
Harmonized Inflation: Apr 2015
AUT
0.9%
BGR
−0.3%
DEU
0.7%
ESP
−0.3%
FIN
0.1%
FRA
0.3%
GBR
0.1%
GRC
−1.4%
HRV
0.0%
HUN
0.6%
IRL
0.2%
ISL
0.3%
ITA
0.2%
NOR
2.0%
POL
−0.6%
ROU
1.3%
SWE
0.9%
<−1.0%0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% >7.0%
YoY % Change in Prices
PMI: June 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
46.5
CAN
51.3
DEU
51.9
ESP
54.5
FRA
50.7
GBR
51.4
GRC
46.9
IRL
54.6
ITA
54.1
MEX
52.0
POL
54.3
SAU
56.1
TUR
49.0
USA
53.6
RUS
48.7
PMI Change: May − Jun
<−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
1.5
DEU
0.8
ESP
−1.3
FRA
1.3
GBR
−0.6
GRC
−1.1
IRL
−2.5
ITA
−0.7
POL
1.9
TUR
−1.2
USA
−0.4
RUS
1.1
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28. 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
Jun 2015: 49.40
Shanghai Composite Index
IndexValue(MonthlyHigh/Low)
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0100030005000
Jul 2015: 3970.39
Electricity Generated
100MillionKWH(logscale)
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1000200030005000
May 2015: 4562.00
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
May 2015: 109.90
Exports
YoYPercentChange
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−20020406080
median: 18.60
Jun 2015: 2.80
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
Jun 2015: 10.60
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29. 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 Dec 2014 - May 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 Dec 2014 - May 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 July 16, 2015 Page 29