The action we saw on Friday following the shockingly disappointing employment reports out of both the US and Canada has subsided to start the week. There appears to be a growing sense that the data could have been distorted by a combination of bad weather, the holidays and other factors. Considering that the bar had been raised by the November upward revision and comments from FOMC members Friday the street appears to be increasingly recognizing that one bad month of data is unlikely to stop the Fed’s tapering program now that it has started. On this basis, we are seeing US markets acting as would be expected on tapering expectations, USD is bouncing back while indices are trading moderately lower to start the week. Markets in Europe have been a bit more upbeat, particularly Spain’s IBEX and Italy’s MIB which have been rallying on the back of a stronger than expected Italian industrial production report. Gold and silver have started the week consolidating Friday’s gains but resource currencies in general have strengthened. AUD and NZD are leading the charge today and even CAD has regained its footing in the wake of Friday’s steep selloff. European currencies have reversed Friday’s gains with GBP underperforming other majors in what appears to be an emerging correction. Corporate News GoldCorp has launched a $2.26, $2.6 billion hostile takeover offer for Osisko Mining this morning in what could be the start of a new consolidation wave in the mining industry. It also suggests that the sector may finally be starting to look cheap encouraging some management teams to go looking for bargains. Lululemon put out another profit warning this morning, cutting its EPS guidance to $0.71-$0.73 from $0.78-$0.80 on a sales shortfall. It cut its revenue guidance to $513-518 million from $535-540 million. Economic News Significant economic announcements released yesterday afternoon and overnight include: Italy industrial production 1.4% vs street 0.0% Greece consumer prices (1.7%) vs street (2.1%) India consumer prices 9.8% vs street 10.0% Economic reports due later today include: There are no major economic announcements due in the US or Canada later today.