Canada’s economic bounce makes clear dependence on oil and gas

Sign up for the Executive Summary email briefing to get the news delivered straight to your inbox first thing in the morning. Whether May’s lousy end to an otherwise solid month in equities will continue into the month of June will be the focus of investors this coming week, particularly with key economic reports on employment in both Canada and the United States coming out at the end of the week.

Yves here. Most readers probably know James Kwak well from the Baseline Scenario blog and the book he co-authored with Simon Johnson, 13 Bankers. The interview covers a wide range of topics, and produces a compendium of slightly left-leaning conventional wisdom (albeit with some clever framing). By James Stafford, editor of OilPrice. Cross posted from OilPrice

OTTAWA — We already know Canada’s economy ended last year in dismal shape. While no one is predicting a healthy turnaround this year, you may soon see some stronger vital signs. In a week of clustered economic data — from interest rates to employment numbers — a major Canadian bank says, “based on admittedly slim evidence,” the first quarter of 2013 could bring surprising — though not great — growth.

Britain’s manufacturers enjoyed a stronger than expected rebound in business last month, fuelling hopes that the sector will boost overall economic growth this quarter.

Canada’s urgent hunt for buyers for its oil is being thwarted as the European Commission sticks to a plan to label fuel from tar sands deposits as highly polluting, deterring refiners bound by environmental rules. Intense pressure from Canada, seeking new markets to compensate for dwindling U.S. buying and discounted sales, has not convinced the EU executive to abandon its proposal to brand tar sands oil as more carbon-intensive than conventional crude.

WASHINGTON — The U.S. economy grew faster than previously estimated in the third quarter as exports and government spending provided a lift, but that boost is likely to be lost amid slowing global demand and a move towards tighter fiscal policy. Gross domestic product expanded at a 3.1% annual rate, the Commerce Department said in its third estimate on Thursday, up from the 2.7% pace reported last month. It was the fastest growth since late 2011 and also reflected a slightly better pace of consumer spending than previously estimated.

The Los Angeles times notes Obama, chart in hand, presses his case on gas prices As rising gas prices are putting pressure on politicians to act, President Obama called on Congress to vote quickly to eliminate subsidies for the oil industry, returning to a favorite target the president.

Eamon Keane submits:Natural gas is the fossil fuel du jour. At Davos, BP CEO Tony Hayward described unconventional natural gas as a 'complete game changer'. The rest of the panel agreed.