April 2010

[Ally]

Number of EI recipients unchanged

Statistics Canada reports 698,800 people received regular Employment Insurance benefits in February, virtually unchanged from the previous month.

The number of people receiving regular EI benefits has declined by 130,500 since the peak of 829,300 last June.

The agency says 237,500 initial and renewal claims were received in February, down slightly from the previous month.

The number of claims edged down in most provinces, particularly in Ontario (down 2,700), Quebec (1,600) and Alberta (1,000).

Read the full article here.

 

[Ally]

Shooting for a better credit score
When it comes to credit scores, 720 or above is where you want to be. Three years ago, Nicole Sanders, a Vancouver-based marketing consultant, 33, was sitting not so pretty with a score of 455. Not paying bills on time, having a large debt-to-credit ratio, and a credit card bill sent to collections, were just a few of the things that helped sink her score.

Today Ms. Sanders (not her real name) has a score above 720. She got there by figuring out where she was, how she got there and what specific steps she should take to improve. If you`re looking to purchase a home or car or just prepare for a future event that could require some sort of financing, then you may want to incorporate a few of the same tactics Ms. Sanders used to raise her score.

Know your number
Credit scores range from 300 to 900. A higher score could translate into thousands saved over the life of a loan. Someone with a score above 760 could pay thousands of dollars less in interest per year on a mortgage than someone whose score is 600. For around $22, you can view your score online at either Equifax or Trans Union. Your score will also come with a detailed report of your financial history.

Scan your report
Laurie Hollowell, 28, an elementary school teacher in Calgary, recently looked into qualifying for a mortgage and was told she had to fix her credit first. She didn`t understand why. As far as she knew, she was in good standing. Apparently she unknowingly had a final phone bill sent to her university home, in a different province, which she never received and it eventually went to collections. "I had no idea this bill even existed. It took me a while to get this sorted and it slowed the mortgage approval process quite a bit. I was just glad I didn`t have to move too quickly, or miss an opportunity, due to this mix-up," she says.

It`s best to know you`re in good standing prior to applying for any type of loan. If you order your credit score online, it will come with a detailed report of your history. If you`re only interested in viewing your financial history, you can do that for free. You can either call Equifax at 1-800-465-7166 or TransUnion at 1-800-663-9980. You can also request a free copy on either of their sites, but phoning is far easier to do and your report will arrive within the week.

Read the full article here.

 

[Ally]

Inflation rate declines unexpectedly in March

OTTAWA — Canada`s annual rate of inflation eased unexpectedly last month, possibly delaying an interest rate hike by the Bank of Canada and knocking the loonie below parity with the U.S. dollar.

The consumer price index rose 1.4 per cent in March from 1.6 per cent the previous month, Statistics Canada reported Friday, as clothing and mortgage interest costs declined during the month, offsetting increases in gasoline prices.

Core inflation — which eliminates volatile-priced items such as food and energy — was 1.7 per cent in March, compared to 2.1 per cent in February.

Economists had expected an overall annual rate of 1.6 per cent and a core inflation reading of two per cent.

"That whooshing noise you just heard was a giant sigh of relief from the Bank of Canada," said Douglas Porter, deputy chief economist at BMO Capital Markets.

The Canadian dollar, which has been trading at or above parity with the U.S. currency, fell to around 99.75 cents U.S. following the inflation report.

Read the full article here.

 

[Ally]

Retail sales softer than expected in February

OTTAWA -- Retail sales rose by a less-than-expected 0.5% to $36 billion in February, led by higher vehicle sales, Statistics Canada reported Friday.

Economists had expected sales to rise 1%, although purchases have now risen for three consecutive months.

Retail sales were up in seven of 11 sub-sectors in February, with biggest push coming from a 2.9% increase at motor vehicle and parts dealers —the first rise since October, the federal agency said.

Sales at clothing stores jumped 4.3% —the third straight monthly gain. "Higher clothing sales also contributed to a 1% gain in the general merchandise stores subsector," the agency said.

Food and beverage store sales rose 0.5%, led by a 3.7% increase at beer, wine and liquor stores.

Read the full article here.

 

[Ally]

Economy has `momentum` Carney asserts

OTTAWA - A burst of firstquarter growth is set to dissipate through 2010 amid "significant" drags such as a stronger currency and weak productivity growth, Mark Carney, the governor of the Bank of Canada, said yesterday.

Still, the risks to the economy highlighted by the central bank in its monetary policy report were not enough to dissuade many economists from forecasting record low interest rates will begin to move higher in June, as the Bank of Canada flagged earlier in the week.

Canada has roared back from the depths of the recession to a "turning point," Mr. Carney said, whereby household demand should take over from the government as the primary source of domestic growth.

"It is clear to everyone there`s momentum," Mr. Carney told reporters following the release of the bank`s latest economic outlook.

That momentum will produce the best quarterly result the country has seen in over a decade, the bank said, with firstquarter growth set to come in at an annualized 5.8%--marking the fastest pace of quarterly expansion since 1999.

Read the full article here.

 

[Ally]

Inflation`s drop eases rate hike pressure

Lower than expected inflation rates should ease pressure off the Bank of Canada to aggressively hike interest rates, but consumers should still expect an increase in early June, according to a senior economist with BMO Capital Markets.

"It is a refreshing change to see inflation moderating in Canada because the trend in the underlying rate of recent months was surprisingly upwards," said Sal Guatieri, responding to a pull back in both headline and core inflation in March.

According to details in the Statistics Canada`s, Consumer Price Index, The Bank of Canada`s core index advanced 1.7 per cent during the 12 months leading up to March, following a 2.1 per cent increase in February.

Market consensus was about 2 per cent for the core inflation rate, said Guatieri. "So it is quite meaningfully below expectations," he said.

Guatieri said BMO still expects the central bank to raise rates 25 basis points on June 1. "This report for now takes the talk of a 50 (basis) point hike off the table."

Read the full article here.

 

[Ally]

Canadian home prices no match in the global picture

Economists have marveled at Canada`s housing market during the recession, as it continues to rack up significant price gains. But the country is a laggard globally, failing to make the top 10 in home price appreciation last year, according to a survey.

Canada was in 12th place internationally with a 5.2-per-cent year over year gain in 2009. Those are respectable numbers, especially during an economic downturn, but they pale in comparison to the top markets.

Hong Kong was in first place with a 27.6-per-cent gain in prices during 2009, followed by China at 25.1 per cent, Israel at 21.3 per cent, and Australia at close to 13.6 per cent, according to a Frank Knight Frank LLP survey of global housing markets.

Prices in Hong Kong and Asia have been driven upward by a "massive injection of liquidity into the economy by the Chinese government`s fiscal stimulus package," said Knight Frank economist Liam Bailey.

A Mainland Chinese buyer set a world record price for a condominium in Hong Kong last October, paying $57 million (U.S.) for a 6,000 square foot property, or more than $9,000 per square foot. In Toronto, an average new condominium sold for about $475 per square foot last year.

Read the full article here.

 

[Ally]

Ontario green tax illegal, study says

A $53.7 million "fee" imposed on electricity users to support green energy programs is not just expensive, it`s illegal, says a study prepared for the C.D. Howe Institute.

That`s because the fee is really a tax, says the study. And taxes must be approved by the Legislature.

"Almost any economist would say it`s an indirect tax," says Finn Poschmann of C.D. Howe, who co-authored the study with University of Toronto law professor Benjamin Alarie.

The levy was imposed ahead of the provincial budget; it will cost a typical customer about $4 a year.

The money is earmarked for conservation and renewable energy programs, including home energy audits and a program that helps industrial and commercial firms switch to solar power.

The regulation creating the new fee directs the Ontario Energy Board to assess a levy on local utilities like Toronto Hydro, and on the Independent Electricity System Operator, in proportion to the amount of power they distribute.

Read the full article here.

 

[Ally]

Each local market has distinct character

It has been said that real estate is a local business and in a metropolis as large as the Greater Toronto Area, where there are numerous neighbourhoods and municipalities that have their own distinct real estate markets, this certainly is the case.

To help you navigate through all of your choices the GTA has more than 29,000 realtors, all of whom have unique assets as diverse as the region itself.

In downtown Toronto`s C01 district, for example, a realtor may specialize in condominium apartments or commercial properties. Real estate professionals who work in this area can advise you on the specific amenities available in downtown condominiums, maintenance fees and parking spaces. By contrast, a realtor who practices in the far north part of the GTA, in towns like Alliston, can advise you on the specifics associated with rural properties such as septic systems and well water.

A huge amount of property spans the area between Toronto and Alliston and accordingly, the realtors throughout the 905 districts may offer advice on everything from buying a condominium in Thornhill to a horse farm in Whitchurch-Stouffville. From enclaves in wooded settings to homes overlooking golf courses, your realtor can guide you through the north 905`s many options.

Read the full article here.

 

[Ally]

Mild inflation cools rate hike expectation

OTTAWA -- Canada`s annual rate of inflation eased unexpectedly last month, possibly delaying an interest rate hike by the Bank of Canada and knocking the loonie below parity with the U.S. dollar.

The consumer price index rose 1.4% in March from 1.6% the previous month, Statistics Canada reported Friday, as clothing and mortgage interest costs declined during the month, offsetting increases in gasoline prices.

Core inflation — which eliminates volatile-priced items such as food and energy — was 1.7% in March, compared to 2.1% in February.

Economists had expected an overall annual rate of 1.6% and a core inflation reading of 2%.

"That whooshing noise you just heard was a giant sigh of relief from the Bank of Canada," said Douglas Porter, deputy chief economist at BMO Capital Markets.

The Canadian dollar, which has been trading at or above parity with the U.S. currency, fell to around 99.75 cents US following the inflation report.

Read the full article here.

 

[Ally]

Resale home listings, prices on the rise in B.C. and across Canada

OTTAWA — The number of resale homes on the market is rising in Canada — and so are their prices, according to a report issued by the Conference Board of Canada on Friday.

The board`s Metro Resale Index shows home listings were up in March in 25 of the 28 markets measured — and by more than 10 per cent over March of 2009 in most of those areas.

Sales were also up in 25 of the markets over February, and outpaced March 2009 in all 28, the board said.

Meanwhile, prices had risen by more than 10 per cent in 16 of the 28 markets. According to the board`s calculations, only two cities could be characterized as having buyers` markets in March — Victoria and Regina. Thunder Bay, Ont., was the only city with a seller`s market. The other 25 markets are balanced, favouring neither buyer nor seller, which the board says should keep price increases down.

Quebec markets should see some of the biggest short-term, year-over-year gains in resale housing prices. Six of the eight markets expected to see seven per cent growth are in that province: Gatineau, Montreal, Quebec, Sherbrooke, Trois-Rivieres and Saguenay, as well as Edmonton and Saskatoon.

Read the full article here.

 

[Ally]

Global growth will be fuelled by emerging markets

Global economic growth will be driven by emerging markets, marking a dramatic shift in the world`s economic framework, and British Columbia is well-positioned to benefit from that, participants at the Business Council of British Columbia`s Outlook 2020 forum heard Friday.

"We`re witnessing a historic handoff in economic leadership from the old to the new, from the traditional OECD economies to the emerging markets," said Jock Finlayson, executive vice-president of policy at the Business Council.

Finlayson called the change, with the impetus for global growth coming from the emerging markets, "a tectonic shift."

And Western Canada is well-positioned to benefit from that change, he said.

"As a province whose future is inextricably linked with Asia, it may be helpful to fast-forward our mind-set and start viewing these countries as advanced [and in many ways ahead of us] rather than still in the process of emerging," Finlayson wrote, with colleague and co-author Ken Peacock, in a paper provided to the summit.

In a recent opinion poll carried out for the Asia Pacific Foundation of Canada, 60 per cent of Canadians believed that the global influence of China would exceed that of the United States by 2020, the foundation`s president and CEO Yuen Pau Woo told summit participants.

Read the full article here.

 

[Ally]

Canada wins case against bank tax with G20

After weeks of voicing its disdain for a global bank tax, Canada scored a victory on the international stage Friday after the Group of 20 countries opted against the kind of levy championed by Europe and the International Monetary Fund.

Finance and central bank officials from the G20 met in Washington, D.C., where they suggested policy-makers from the world`s major economies refocus their efforts on ensuring core elements of the financial reform agenda are dealt with. That means cooling any talk of a tax.

This is the case Finance Minister Jim Flaherty made in the lead-up to this key gathering, and echoed this week by Bank of Canada governor Mark Carney, who called the debate a "distraction."

The official G20 communique indicated the majority of the major economies sided with Canada.

"There was not an agreement on a global bank tax," Flaherty said at a media conference at the end of the meeting, which he co-chaired with his South Korean counterpart.

In the communique, the G20 said it "reaffirmed our reform is multi-faceted but at its core must be stronger capital standards, complemented by clear incentives to mitigate excessive risk-taking practices."

Read the full article here.

 

[Ally]

Canada climbs ranks of world`s top companies

The Forbes Global 2000 are the biggest, most powerful listed companies in the world. These global giants usually reorder themselves at a glacial pace, but sometimes -- as with the volatile financial sector of late -- with more abruptness.

Extreme vagaries of business or poor performance can take them off the list entirely. In any case, our composite ranking is the best snapshot of just how these titans compare. As we show, the corporate dominance of the developed nations is steadily receding. With respect not just to size but to what investors care most about, see our Global High Performers, an elite list of companies that set the pace in their respective

This year, the following countries gained the most ground: mainland China (113 members), India (56 members) and Canada (62 members). Even Oman and Lebanon are now Global 2000 members. Also gaining a significant presence on our list this year are corporations from Ireland, South Africa and Sweden.

Read the full article here.

 

[Ally]

Inflation eases, rate hike may be delayed

OTTAWA - Canada`s annual rate of inflation eased unexpectedly last month, possibly delaying an interest rate hike by the Bank of Canada and knocking the loonie below parity with the U.S. dollar.

The consumer price index rose 1.4% in March from a year earlier, following a 1.6% annual pace the previous month, Statistics Canada reported yesterday, as clothing and mortgage interest costs declined during the month, offsetting increases in gasoline prices.

Core inflation -- which eliminates volatile-priced items such as food and energy -- was 1.7% in March, compared with 2.1% in February.

Economists had expected an overall annual rate of 1.6% and a core inflation reading of 2%.

"That whooshing noise you just heard was a giant sigh of relief from the Bank of Canada," said Douglas Porter, deputy chief economist at BMO Capital Markets.

The Canadian dollar fell below parity with the U.S. currency following the inflation report, but later recovered to close at $1.0009, up nine basis points from Thursday`s finish.

Read the full article here.

 

[Ally]

$80-$100 the new $60-$80

When Sinopec, a Chinese state-owned oil giant, agreed to plunk down US$4.65-billion last week for a tiny slice of Syncrude, it sent a clear message to the world: the Asian superpower thinks prices are going up, not down.

According to analysts, the Syncrude purchase suggests that China is pricing in a long-term oil price well above US$90 a barrel, and possibly over US$100.

It was a sign that prices could keep rising from here. Oil futures have held up over US$80 this month as the International Energy Agency hiked its demand forecast to a record 86.6 million barrels a day in 2010. The IEA also warned that a price above US$80 could have dire economic consequences. Even OPEC has indicated it is uncomfortable with prices much above US$80.

We`ve been down this road before. In 2007 and 2008, crude prices blasted through all kinds of perceived barriers: US$70, US$80, US$100, US$120, before going all the way up to a freakish high above US$147 a barrel.

The end result of that spike was a dramatic drop in demand for oil, which contributed to the worst economic collapse in decades, not to mention a near-80% drop in oil prices.

Read the full article here.

 

[Ally]

Deadline is looming, so don`t be late

With less than a week to go before the general tax-filing deadline of April 30, it may seem trite to repeat the mantra of "be sure to file on time, especially if you owe money." But even if you don`t owe any tax, there is good reason this year to stick to that same deadline.

That`s because of a recent tax case that found in favour of the Canada Revenue Agency over a filer who didn`t owe, but forgot to send in some important forms.

The general rule is that if you file your return late, there is an automatic 5% penalty on the amount of tax unpaid, plus an additional 1% per month penalty on the amount due each month the return is late, up to a maximum of 12%. Late-filers are also subject to arrears interest.

If this is not the first time you have filed late and you have been assessed a late-filing penalty in any of the prior three years, the penalties can double to 10% of the unpaid amount, plus a 2% penalty for each late month, to a maximum of 20 months.

So, if you don`t owe any tax, why rush to meet Friday`s deadline?

Read the full article here.

 

[Ally]

Canada comes and conquers

Canada came to the G20 meeting of finance and central bank officials in Washington, saw and heard from its peers, and at the end of the day conquered.

Much of the success was due to Canada`s willingness to move away from its traditional Western allies -- and their massive debt loads -- and join forces with the dynamic and fiscally healthy emerging economies.

And it`s with good reason Canada is warming up to China and other emerging economies. Not only are they growing, but they are getting more clout, as China overtook European countries in World Bank voting power, in a shift agreed upon yesterday.

Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney won the backing of the major emerging economies on a proposed bank tax, and as a result the G20 communique failed to endorse the levy.

Instead, the G20 asked the International Monetary Fund, which had endorsed the tax, to explore alternatives, including a Canadian suggestion that would see banks insure themselves against failure by issuing debt that can be converted into equity at times of trouble.

Read the full article here.

 

[Ally]

Real estate fraud is rare, but experts warn homeowners to be on the lookout

TORONTO - Real estate fraud is a rare thing but experts in the field say that doesn`t mean people should assume it will never happen to them - considering the misery it can inflict on the unwary homeowner, it`s worth knowing that it`s out there and it`s nasty.

"I compare the fraud issue to the lottery," said Ray Leclair of title insurance provider TitlePlus.

"There are millions of transactions in Ontario alone in real property every year. A very minute number of those are fraudulent. So for the public to win or lose in the fraud lottery, the odds are very low."

But it`s not an experience you would ever want to go through, he said, even though governments have put in place some measures to make it easier for people to regain ownership title that have been fraudulently pilfered.

"At the end of the day, even if you get your title back, there`s the question of (legal fees)."

There are two types of real estate fraud to be concerned about - mortgage fraud and title fraud.

Mortgage fraud is something that is more troublesome for lenders. It involves a fraudster leaving the title or ownership of a property in the current owner`s name but mortgaging it without their knowledge, sometimes by fraudulently discharging the existing mortgage. It can also happen when a would-be homeowner falsifies information to get a mortgage.

Read the full article here.

 

[Ally]

Economy has `momentum,` Carney asserts

OTTAWA - A burst of firstquarter growth is set to dissipate through 2010 amid "significant" drags such as a stronger currency and weak productivity growth, Mark Carney, the governor of the Bank of Canada, said yesterday.

Still, the risks to the economy highlighted by the central bank in its monetary policy report were not enough to dissuade many economists from forecasting record low interest rates will begin to move higher in June, as the Bank of Canada flagged earlier in the week.

Canada has roared back from the depths of the recession to a "turning point," Mr. Carney said, whereby household demand should take over from the government as the primary source of domestic growth.

"It is clear to everyone there`s momentum," Mr. Carney told reporters following the release of the bank`s latest economic outlook.

That momentum will produce the best quarterly result the country has seen in over a decade, the bank said, with firstquarter growth set to come in at an annualized 5.8%--marking the fastest pace of quarterly expansion since 1999.

Read the full article here.