December 2010 Canadian Economic Fundamentals
- Thread starter Ally
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Fraser Institute pegs Alberta as best province to invest in; B.C. ranks third
OTTAWA — Alberta has the friendliest investment climate among Canadian provinces, while Ontario continues to struggle, according to a report released Thursday from the Fraser Institute.
The report lauded Alberta for its low taxes on companies and people, careful spending at the provincial-government level and lack of red tape.
"With Canada`s lowest corporate and personal income taxes, most flexible labour market, smallest government and relatively low level of red tape, Alberta continues to offer an investment climate that is the most attractive nationwide," said Charles Lammam, senior policy analyst with the Fraser Institute.
Ontario, however, was criticized for having high corporate taxes and a lack of fiscal prudence in its provincial government. After being given the top ranking in this survey in the early part of the last decade, it now stands at fifth.
Filling in the spots between Alberta and Ontario were Saskatchewan in second place, British Columbia third and New Brunswick fourth.
Read the full article here.
OTTAWA — Alberta has the friendliest investment climate among Canadian provinces, while Ontario continues to struggle, according to a report released Thursday from the Fraser Institute.
The report lauded Alberta for its low taxes on companies and people, careful spending at the provincial-government level and lack of red tape.
"With Canada`s lowest corporate and personal income taxes, most flexible labour market, smallest government and relatively low level of red tape, Alberta continues to offer an investment climate that is the most attractive nationwide," said Charles Lammam, senior policy analyst with the Fraser Institute.
Ontario, however, was criticized for having high corporate taxes and a lack of fiscal prudence in its provincial government. After being given the top ranking in this survey in the early part of the last decade, it now stands at fifth.
Filling in the spots between Alberta and Ontario were Saskatchewan in second place, British Columbia third and New Brunswick fourth.
Read the full article here.
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Canada`s jobless rate falls - but not as much as expected
Canada saw job growth in November, but not as much as economists expected.
There were 15,200 more people employed in Canada last month, Statistics Canada said Friday. That was short of expectations for about 20,000 job gains.
The unemployment rate fell to 7.6 per cent from 7.9 per cent as fewer young people were looking for work. That makes for the lowest jobless rate since January 2009.
"The modest gain in employment is disappointing," Paul Ferley, assistant chief economist at Royal Bank of Canada told Reuters. "The drop in the unemployment rate can indicate signs of strength, but in this case it`s emanating from a narrow-based drop in the labour force."
Still, the growth in employment last month was a step up from the meagre gain of 3,000 in October and outright decline in two of the three months before that.
Job growth last month was entirely from part-time positions. There were 26,700 additional people working part-time jobs and 11,500 fewer in full-time employment.
Read the full article here.
Canada saw job growth in November, but not as much as economists expected.
There were 15,200 more people employed in Canada last month, Statistics Canada said Friday. That was short of expectations for about 20,000 job gains.
The unemployment rate fell to 7.6 per cent from 7.9 per cent as fewer young people were looking for work. That makes for the lowest jobless rate since January 2009.
"The modest gain in employment is disappointing," Paul Ferley, assistant chief economist at Royal Bank of Canada told Reuters. "The drop in the unemployment rate can indicate signs of strength, but in this case it`s emanating from a narrow-based drop in the labour force."
Still, the growth in employment last month was a step up from the meagre gain of 3,000 in October and outright decline in two of the three months before that.
Job growth last month was entirely from part-time positions. There were 26,700 additional people working part-time jobs and 11,500 fewer in full-time employment.
Read the full article here.
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Canada`s November job growth lags expectations
Canada saw job growth in November, but not as much as economists expected.
There were 15,200 more people employed in Canada last month, Statistics Canada said Friday. That was short of expectations for about 20,000 job gains.
The unemployment rate fell to 7.6 per cent from 7.9 per cent as fewer young people were looking for work. That makes for the lowest jobless rate since January 2009.
"The modest gain in employment is disappointing," Paul Ferley, assistant chief economist at Royal Bank of Canada told Reuters. "The drop in the unemployment rate can indicate signs of strength, but in this case it`s emanating from a narrow-based drop in the labour force."
Still, the growth in employment last month was a step up from the meagre gain of 3,000 in October and outright decline in two of the three months before that.
Read the full article here.
Canada saw job growth in November, but not as much as economists expected.
There were 15,200 more people employed in Canada last month, Statistics Canada said Friday. That was short of expectations for about 20,000 job gains.
The unemployment rate fell to 7.6 per cent from 7.9 per cent as fewer young people were looking for work. That makes for the lowest jobless rate since January 2009.
"The modest gain in employment is disappointing," Paul Ferley, assistant chief economist at Royal Bank of Canada told Reuters. "The drop in the unemployment rate can indicate signs of strength, but in this case it`s emanating from a narrow-based drop in the labour force."
Still, the growth in employment last month was a step up from the meagre gain of 3,000 in October and outright decline in two of the three months before that.
Read the full article here.
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Alberta oilsands spinoffs great for economy: CEO
EDMONTON — In a world struggling with stalled economies, thank goodness for Alberta`s oilsands, says Jayson Meyers, chief executive of the Canadian Manufacturers and Exporters.
"The $40 billion spent last year on project construction and maintenance has had a very positive effect for suppliers ... with benefits spinning off across Canada, the U.S. and other countries," the head of Canada`s largest industry and trade association told the annual forecast conference of the Economics Society of northern Alberta this week.
"This $40 billion in private investment is larger than any publicly funded infrastructure project in the world outside China. This investment has kept the Canadian economy going and, from our point of view, kept a lot of manufacturers who supply the oilsands sector above ground.
"I don`t see a lot of stimulus out there that is strong enough to sustain the economy as governments reduce their deficits. That is the case here and even more in the U.S. and other countries."
Neil Shelly, executive director of Alberta`s Industrial Heartland Association, a group of local municipalities, wants to see more bitumen processed in Alberta through upgrading, creating a feedstock for an expanding petrochemical industry.
Read the full article here.
EDMONTON — In a world struggling with stalled economies, thank goodness for Alberta`s oilsands, says Jayson Meyers, chief executive of the Canadian Manufacturers and Exporters.
"The $40 billion spent last year on project construction and maintenance has had a very positive effect for suppliers ... with benefits spinning off across Canada, the U.S. and other countries," the head of Canada`s largest industry and trade association told the annual forecast conference of the Economics Society of northern Alberta this week.
"This $40 billion in private investment is larger than any publicly funded infrastructure project in the world outside China. This investment has kept the Canadian economy going and, from our point of view, kept a lot of manufacturers who supply the oilsands sector above ground.
"I don`t see a lot of stimulus out there that is strong enough to sustain the economy as governments reduce their deficits. That is the case here and even more in the U.S. and other countries."
Neil Shelly, executive director of Alberta`s Industrial Heartland Association, a group of local municipalities, wants to see more bitumen processed in Alberta through upgrading, creating a feedstock for an expanding petrochemical industry.
Read the full article here.
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Why a buyer`s real estate agent matters even more
When you use an agent to sell your home, you may agree on a commission as high as 5 per cent with the proceeds split two ways. One half goes to the agent who works for you and the other half is paid to the agent who finds the buyer and helps negotiate the deal.
Now that the federal government has brought more competition to buying and selling a home, there are more ways for you to sell a home by yourself. That means the role of the real estate agent acting for the buyer will become even more important to you and the buyer.
Most people understand that when you sign a listing agreement to sell your home if you sell during the term of the agreement, you owe commission to that agent.
Read the full article here.
When you use an agent to sell your home, you may agree on a commission as high as 5 per cent with the proceeds split two ways. One half goes to the agent who works for you and the other half is paid to the agent who finds the buyer and helps negotiate the deal.
Now that the federal government has brought more competition to buying and selling a home, there are more ways for you to sell a home by yourself. That means the role of the real estate agent acting for the buyer will become even more important to you and the buyer.
Most people understand that when you sign a listing agreement to sell your home if you sell during the term of the agreement, you owe commission to that agent.
Read the full article here.
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When will the BoC hike rates?
OTTAWA — The suspense building up to Tuesday`s Bank of Canada rate decision is revolving around whether the central bank says anything in its statement to nix market expectations for a rate hike in early 2011.
Despite a week of data that suggested there`s a significant slowdown underway in Canadian economic activity, fixed-income markets continue to price in 50-50 odds for an increase in the central bank`s key policy rate in March, and a 100% chance that happens in April.
Yet, most economists at Canada`s big banks don`t see a rate hike until July, given recent weakness in trade and real estate investment and the uncertainty sparked by the re-emergence of Europe`s debt woes.
"It is possible the Bank of Canada will take on a more dovish tone in this statement simply because the market has been a bit aggressive in pricing in [monetary policy] tightening," said Douglas Porter, deputy chief economist at BMO Capital Markets.
The yield on the two-year government of Canada bond, viewed as a proxy as to where the central bank rate is headed, climbed steadily in November on improving economic data in the United States and elsewhere, hitting a high on Nov. 25 of 1.74% but has since dropped slightly to the 1.6% range as of last Friday.
Read the full article here.
OTTAWA — The suspense building up to Tuesday`s Bank of Canada rate decision is revolving around whether the central bank says anything in its statement to nix market expectations for a rate hike in early 2011.
Despite a week of data that suggested there`s a significant slowdown underway in Canadian economic activity, fixed-income markets continue to price in 50-50 odds for an increase in the central bank`s key policy rate in March, and a 100% chance that happens in April.
Yet, most economists at Canada`s big banks don`t see a rate hike until July, given recent weakness in trade and real estate investment and the uncertainty sparked by the re-emergence of Europe`s debt woes.
"It is possible the Bank of Canada will take on a more dovish tone in this statement simply because the market has been a bit aggressive in pricing in [monetary policy] tightening," said Douglas Porter, deputy chief economist at BMO Capital Markets.
The yield on the two-year government of Canada bond, viewed as a proxy as to where the central bank rate is headed, climbed steadily in November on improving economic data in the United States and elsewhere, hitting a high on Nov. 25 of 1.74% but has since dropped slightly to the 1.6% range as of last Friday.
Read the full article here.
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Canadian job market sees more contract work: StatsCan
In the Canadian job market, contract work has outpaced all other forms of temporary employment over the past decade, surging against rising unemployment during the 2008 financial crisis and resulting recession.
In 2009, 52 per cent of all temporary jobs were contract positions, accounting for almost one million workers, Statistics Canada`s Diane Galarneau said in a report recently.
"Since 1997, contract employment has been the main source of growth in temporary work," she said.
Professionals make up a large percentage of contract employees, and tend to be concentrated in the health, education and public administration fields. Contract workers also tend to be more educated and slightly younger than permanent workers.
However, contract workers tend to be paid about 14 per cent less each hour than their permanent counterparts, while managing with less job security and little to no benefits.
Overall, 1.8 million workers held temporary positions in 2009, accounting for 12.5 per cent of paid employment. This is a slight decrease from the peak of 13.2 per cent in 2005.
Read the full article here.
In the Canadian job market, contract work has outpaced all other forms of temporary employment over the past decade, surging against rising unemployment during the 2008 financial crisis and resulting recession.
In 2009, 52 per cent of all temporary jobs were contract positions, accounting for almost one million workers, Statistics Canada`s Diane Galarneau said in a report recently.
"Since 1997, contract employment has been the main source of growth in temporary work," she said.
Professionals make up a large percentage of contract employees, and tend to be concentrated in the health, education and public administration fields. Contract workers also tend to be more educated and slightly younger than permanent workers.
However, contract workers tend to be paid about 14 per cent less each hour than their permanent counterparts, while managing with less job security and little to no benefits.
Overall, 1.8 million workers held temporary positions in 2009, accounting for 12.5 per cent of paid employment. This is a slight decrease from the peak of 13.2 per cent in 2005.
Read the full article here.
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High loonie home to roost
Canada posted a record current account deficit in the third quarter, bringing into sharper focus the detriment — and the benefit — of an inflated loonie to the country`s trade performance.
The shortfall in the broadest measure of trade rose to $17.5-billion, a new low-water mark on an absolute basis. A record deficit in the goods merchandise trade balance of $6.5-billion was the driving factor, pushing the Canadian economy deeper into net debtor status.
"The loonie`s wingprints were all over this morning`s current account data for Canada," Krishen Rangasamy, an economist at CIBC World Markets said in a note. "But exports also didn`t perform despite the recovery underway, clearly hampered by a loonie that has, over the years, aided the erosion of our market share in the U.S."
But as an indicator of overall economic prospects, the current account balance is a double-edged sword. While every country aims to be a net seller to the rest of the world, Canadian companies appear to be taking the opportunity to invest in machinery and equipment imports.
Read the full article here.
Canada posted a record current account deficit in the third quarter, bringing into sharper focus the detriment — and the benefit — of an inflated loonie to the country`s trade performance.
The shortfall in the broadest measure of trade rose to $17.5-billion, a new low-water mark on an absolute basis. A record deficit in the goods merchandise trade balance of $6.5-billion was the driving factor, pushing the Canadian economy deeper into net debtor status.
"The loonie`s wingprints were all over this morning`s current account data for Canada," Krishen Rangasamy, an economist at CIBC World Markets said in a note. "But exports also didn`t perform despite the recovery underway, clearly hampered by a loonie that has, over the years, aided the erosion of our market share in the U.S."
But as an indicator of overall economic prospects, the current account balance is a double-edged sword. While every country aims to be a net seller to the rest of the world, Canadian companies appear to be taking the opportunity to invest in machinery and equipment imports.
Read the full article here.
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Real return of 10% almost impossible
The other day, a colleague wanted to know how a family member could get 10% annual returns without taking risk. I had to say there was a time when this was a slam dunk but it`s almost impossible in today`s environment.
Warren Baldwin, regional vice-president with Toronto-based T. E. Wealth, recalls November 1981, when Canada Savings Bonds paid 19.5% and some GICs paid over 20%. But inflation was over 12% so after taxes and inflation, investors were actually losing ground.
As Tacita Capital chairman Michael Nairne points out in an essay on return expectations, it`s real returns net of inflation that eventually fund consumption: "The inflationary component of returns only offsets price increases."
The latest edition of Robert Arnott`s Fundamental Index newsletter clearly illustrates the unlikelihood of 10% returns today. He`s chairman of Newport Beach, Calif.-based Research Affiliates, which sells ETFs that sort stocks through a "fundamental indexing" strategy. By taking more risk in some of the portfolios, he believes investors can span the "seemingly irreconcilable gap" between low single-digit yields and high single-digit return targets.
Read the full article here.
The other day, a colleague wanted to know how a family member could get 10% annual returns without taking risk. I had to say there was a time when this was a slam dunk but it`s almost impossible in today`s environment.
Warren Baldwin, regional vice-president with Toronto-based T. E. Wealth, recalls November 1981, when Canada Savings Bonds paid 19.5% and some GICs paid over 20%. But inflation was over 12% so after taxes and inflation, investors were actually losing ground.
As Tacita Capital chairman Michael Nairne points out in an essay on return expectations, it`s real returns net of inflation that eventually fund consumption: "The inflationary component of returns only offsets price increases."
The latest edition of Robert Arnott`s Fundamental Index newsletter clearly illustrates the unlikelihood of 10% returns today. He`s chairman of Newport Beach, Calif.-based Research Affiliates, which sells ETFs that sort stocks through a "fundamental indexing" strategy. By taking more risk in some of the portfolios, he believes investors can span the "seemingly irreconcilable gap" between low single-digit yields and high single-digit return targets.
Read the full article here.
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Dismal trade outlook, housing weakness point to rate hikes on hold
OTTAWA — The breathless anticipation that preceded interest policy decisions by the Bank of Canada over the summer months is long gone. This time around, observers are quietly resigned to the fact that on Tuesday central bank governor Mark Carney will hold rates as they are and will likely continue to do so for at least the next few months.
The broad conviction stems from a host of recent data showing the economy slowing to a crawl — most recently in terms of growth, now a paltry one per cent, and the labour market, which has been coughing out an average of 4,000 jobs a month, compared to a 75,000-a-month average earlier in the year.
"There is no disagreement that the bank will keep its overnight lending rate unchanged at 1.0 per cent as it chose to do in October following a string of three 25 basis point rate hikes this summer," said BMO Capital Markets deputy chief economist Douglas Porter.
"Accordingly, all eyes will turn to the statement, and the bank`s take on recent developments."
Read the full article here.
OTTAWA — The breathless anticipation that preceded interest policy decisions by the Bank of Canada over the summer months is long gone. This time around, observers are quietly resigned to the fact that on Tuesday central bank governor Mark Carney will hold rates as they are and will likely continue to do so for at least the next few months.
The broad conviction stems from a host of recent data showing the economy slowing to a crawl — most recently in terms of growth, now a paltry one per cent, and the labour market, which has been coughing out an average of 4,000 jobs a month, compared to a 75,000-a-month average earlier in the year.
"There is no disagreement that the bank will keep its overnight lending rate unchanged at 1.0 per cent as it chose to do in October following a string of three 25 basis point rate hikes this summer," said BMO Capital Markets deputy chief economist Douglas Porter.
"Accordingly, all eyes will turn to the statement, and the bank`s take on recent developments."
Read the full article here.
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Banks see further rise in oil price
NEW YORK - ING and Deutsche Bank joined several peers in raising their crude price forecasts on Friday, with a growing number of major banks saying prices have room to rise as supplies tighten.
Analysts are calling for oil prices to gain more than previously expected over the next few years, including several forecasts for them to top $100 a barrel.
At least five major banks increased their mid- or long-term outlook for oil prices this week, citing factors such as booming demand in emerging markets, faster global economic growth, and OPEC`s reluctance to boost output despite declining inventory levels in slower-growing OECD economies.
Some bullish forecasts see oil prices staying near a 25-month high above $89 a barrel reached on Friday in the near term, but rising further into the future.
Fuel demand continues to surge in China, U.S. oil stock levels fell from record highs earlier this year, and refined product prices are surging in Europe — with gasoline at two-year highs — on tighter supplies.
Read the full article here.
NEW YORK - ING and Deutsche Bank joined several peers in raising their crude price forecasts on Friday, with a growing number of major banks saying prices have room to rise as supplies tighten.
Analysts are calling for oil prices to gain more than previously expected over the next few years, including several forecasts for them to top $100 a barrel.
At least five major banks increased their mid- or long-term outlook for oil prices this week, citing factors such as booming demand in emerging markets, faster global economic growth, and OPEC`s reluctance to boost output despite declining inventory levels in slower-growing OECD economies.
Some bullish forecasts see oil prices staying near a 25-month high above $89 a barrel reached on Friday in the near term, but rising further into the future.
Fuel demand continues to surge in China, U.S. oil stock levels fell from record highs earlier this year, and refined product prices are surging in Europe — with gasoline at two-year highs — on tighter supplies.
Read the full article here.
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Videos help people with their legal needs
"People typically do more research when they buy a colour TV than when they buy a home."
That statement, by Toronto real estate lawyer Joel Kadish, comes from a new six-minute video recently launched by the Law Society of Upper Canada as part of a series devoted to helping people with their everyday legal needs.
The videos quietly made their debut last month on the Law Society`s YouTube channel under the name "YourLawSeries" at www.youtube.com.
I suppose if Queen Elizabeth can have her own YouTube channel, the 213-year old Law Society can have one too.
The videos are also on the Law Society`s website (www.lsuc.on.ca) under Services for the Public (then click "Your Law" on the left side of the page).
The goal of the videos is to show the public how lawyers can help them in the legal transactions that affect their day-to-day lives.
The first five videos in the series look at real estate transactions, wills and estate planning, personal injury cases, and two family law topics — custody and child support, and spousal support and property equalization.
Read the full article here.
"People typically do more research when they buy a colour TV than when they buy a home."
That statement, by Toronto real estate lawyer Joel Kadish, comes from a new six-minute video recently launched by the Law Society of Upper Canada as part of a series devoted to helping people with their everyday legal needs.
The videos quietly made their debut last month on the Law Society`s YouTube channel under the name "YourLawSeries" at www.youtube.com.
I suppose if Queen Elizabeth can have her own YouTube channel, the 213-year old Law Society can have one too.
The videos are also on the Law Society`s website (www.lsuc.on.ca) under Services for the Public (then click "Your Law" on the left side of the page).
The goal of the videos is to show the public how lawyers can help them in the legal transactions that affect their day-to-day lives.
The first five videos in the series look at real estate transactions, wills and estate planning, personal injury cases, and two family law topics — custody and child support, and spousal support and property equalization.
Read the full article here.
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Ontario secondary suites a boon to home owners and builders
The Ontario Home Builders` Association is applauding the provincial government`s move to make it easier to build secondary suites in homes, saying it will help create more affordable housing.
The Long-Term Affordable Housing Strategy will remove some of the barriers (such as municipal bylaws) to including secondary suites, such as basement apartments, in new and existing homes across the province.
"We`ve been advocating for this for a long time and attending a series of consultations," says OHBA president Bob Finnigan. "Secondary suites are a simple solution, the low-hanging fruit, and we slowly got the government to realize how many thousands of affordable housing units this could create."
Finnigan says in many municipalities such as Mississauga and Barrie, it has been very difficult to get approval to build secondary suites, even though many homes have large basements.
He says the creation of secondary suites would benefit everyone from elderly people who can live with family members, to young single people looking for affordable places to live in the city, to couples trying to build a nest egg. It can also help homeowners with their mortgage payments.
Read the full article here.
The Ontario Home Builders` Association is applauding the provincial government`s move to make it easier to build secondary suites in homes, saying it will help create more affordable housing.
The Long-Term Affordable Housing Strategy will remove some of the barriers (such as municipal bylaws) to including secondary suites, such as basement apartments, in new and existing homes across the province.
"We`ve been advocating for this for a long time and attending a series of consultations," says OHBA president Bob Finnigan. "Secondary suites are a simple solution, the low-hanging fruit, and we slowly got the government to realize how many thousands of affordable housing units this could create."
Finnigan says in many municipalities such as Mississauga and Barrie, it has been very difficult to get approval to build secondary suites, even though many homes have large basements.
He says the creation of secondary suites would benefit everyone from elderly people who can live with family members, to young single people looking for affordable places to live in the city, to couples trying to build a nest egg. It can also help homeowners with their mortgage payments.
Read the full article here.
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The deflation myth
Fears of "deflation" are widespread. By one account, "the scare word whispered around Washington these days is deflation, which means a falling price level and sometimes implies a stagnant if not collapsing economy." The "scare word" also spooks the U.S. Federal Reserve, which is now planning to print US$600-billion in more paper money, even though it has already tripled its balance sheet since 2008, and even though currency-gold prices, the world`s most sensitive inflation indicators, have skyrocketed by 16% to 41% in the past year (depending on the currency), and by an average of 26%.
In the past, gold-price jumps of such magnitude, which always mean a depreciation in the real purchasing power of paper money, i.e., inflation, have been bearish for equities and growth.
The current anxiety over "deflation," that is, an increase in money`s purchasing power, causing a declining price level, is ridiculous, for two reasons: (1) there`s no actual deflation to speak of (nor is it likely to occur in the coming few years, given prevailing public policies), and (2) even if some deflation were to take hold, it wouldn`t necessarily be bearish for equities, profits or economic growth.
Deflation is an increase in the real purchasing power (or value) of money, i.e., an increase in what a certain sum of money can buy in terms of actual goods and services. This entails a decrease in the cost of living (and the cost of doing business), as reflected in a decline in the general level of prices and costs. In contrast, inflation is a decrease in the real purchasing power (or value) of money, i.e., a decrease in what money can buy in terms of actual goods and services. This entails an increase in the cost of living (and in the cost of doing business), as reflected in a rise in broad-based prices and costs.
Read the full article here.
Fears of "deflation" are widespread. By one account, "the scare word whispered around Washington these days is deflation, which means a falling price level and sometimes implies a stagnant if not collapsing economy." The "scare word" also spooks the U.S. Federal Reserve, which is now planning to print US$600-billion in more paper money, even though it has already tripled its balance sheet since 2008, and even though currency-gold prices, the world`s most sensitive inflation indicators, have skyrocketed by 16% to 41% in the past year (depending on the currency), and by an average of 26%.
In the past, gold-price jumps of such magnitude, which always mean a depreciation in the real purchasing power of paper money, i.e., inflation, have been bearish for equities and growth.
The current anxiety over "deflation," that is, an increase in money`s purchasing power, causing a declining price level, is ridiculous, for two reasons: (1) there`s no actual deflation to speak of (nor is it likely to occur in the coming few years, given prevailing public policies), and (2) even if some deflation were to take hold, it wouldn`t necessarily be bearish for equities, profits or economic growth.
Deflation is an increase in the real purchasing power (or value) of money, i.e., an increase in what a certain sum of money can buy in terms of actual goods and services. This entails a decrease in the cost of living (and the cost of doing business), as reflected in a decline in the general level of prices and costs. In contrast, inflation is a decrease in the real purchasing power (or value) of money, i.e., a decrease in what money can buy in terms of actual goods and services. This entails an increase in the cost of living (and in the cost of doing business), as reflected in a rise in broad-based prices and costs.
Read the full article here.
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Rate hike not likely until July, economists say
OTTAWA - The suspense building up to Tuesday`s Bank of Canada rate decision is revolving around whether the central bank says anything in its statement to nix market expectations for a rate hike in early 2011.
Despite a week of data that suggested there`s a significant slowdown underway in Canadian economic activity, fixed-income markets continue to price in 50-50 odds for an increase in the central bank`s key policy rate in March, and a 100% chance that happens in April.
Yet most economists at Canada`s big banks don`t envisage a rate hike until July, given recent weakness in trade and real estate investment and the uncertainty sparked by the re-emergence of Europe`s debt woes.
"It is possible the Bank of Canada will take on a more dovish tone in this statement simply because the market has been a bit aggressive in pricing in [monetary policy] tightening," said Douglas Porter, deputy chief economist at BMO Capital Markets.
Read the full article here.
OTTAWA - The suspense building up to Tuesday`s Bank of Canada rate decision is revolving around whether the central bank says anything in its statement to nix market expectations for a rate hike in early 2011.
Despite a week of data that suggested there`s a significant slowdown underway in Canadian economic activity, fixed-income markets continue to price in 50-50 odds for an increase in the central bank`s key policy rate in March, and a 100% chance that happens in April.
Yet most economists at Canada`s big banks don`t envisage a rate hike until July, given recent weakness in trade and real estate investment and the uncertainty sparked by the re-emergence of Europe`s debt woes.
"It is possible the Bank of Canada will take on a more dovish tone in this statement simply because the market has been a bit aggressive in pricing in [monetary policy] tightening," said Douglas Porter, deputy chief economist at BMO Capital Markets.
Read the full article here.
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Canadian building permits fall 6.5 per cent in October
OTTAWA — The value of building permits fell more than expected in October as single-unit activity declined, Statistics Canada said Monday.
Permits were down 6.5 per cent to $6.2 billion during the month, after a revised 14.9 per cent jump in September, the federal agency said. The September reading was originally estimated at a 15.3 per cent increase.
Economists had expected permits to fall by about four per cent in October.
"The October value of permits remains comparable to levels prior to the economic downturn," the agency said. "The total value of permits decreased in half of the provinces, led by Ontario and Quebec. Newfoundland and Labrador had the largest increase."
Residential permits fell 11.2 per cent in October from the previous month to $3.4 billion, following two straight monthly advances. "The decrease was due to declines in both single- and multi-family permits issued in Ontario and Quebec," Statistics Canad said.
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OTTAWA — The value of building permits fell more than expected in October as single-unit activity declined, Statistics Canada said Monday.
Permits were down 6.5 per cent to $6.2 billion during the month, after a revised 14.9 per cent jump in September, the federal agency said. The September reading was originally estimated at a 15.3 per cent increase.
Economists had expected permits to fall by about four per cent in October.
"The October value of permits remains comparable to levels prior to the economic downturn," the agency said. "The total value of permits decreased in half of the provinces, led by Ontario and Quebec. Newfoundland and Labrador had the largest increase."
Residential permits fell 11.2 per cent in October from the previous month to $3.4 billion, following two straight monthly advances. "The decrease was due to declines in both single- and multi-family permits issued in Ontario and Quebec," Statistics Canad said.
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Carole James quits as NDP leader
VICTORIA -- Carole James will step down as leader of the New Democratic Party as soon as an interim leader can be selected, she announced Monday morning.
"I have always believed in putting the common good ahead of personal gain," James said, adding the choice had come down to resigning as leader, or forcing 13 dissident MLAs -- or about 40 per cent -- out of her caucus.
"The NDP cannot present itself as a government in waiting with all of this infighting," she added, saying the so-called baker`s dozen of dissidents were not willing to give in.
James`s announcement comes one day after a high-stakes showdown between with 13 dissident MLAs was cancelled, a move couched as an opportunity to give both sides more time.
Sources within the party say the 13 dissidents upheld throughout the weekend that they would all leave caucus if MLA Jenny Kwan was expelled for comments she made last week.
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VICTORIA -- Carole James will step down as leader of the New Democratic Party as soon as an interim leader can be selected, she announced Monday morning.
"I have always believed in putting the common good ahead of personal gain," James said, adding the choice had come down to resigning as leader, or forcing 13 dissident MLAs -- or about 40 per cent -- out of her caucus.
"The NDP cannot present itself as a government in waiting with all of this infighting," she added, saying the so-called baker`s dozen of dissidents were not willing to give in.
James`s announcement comes one day after a high-stakes showdown between with 13 dissident MLAs was cancelled, a move couched as an opportunity to give both sides more time.
Sources within the party say the 13 dissidents upheld throughout the weekend that they would all leave caucus if MLA Jenny Kwan was expelled for comments she made last week.
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Bank of Canada keeps key interest rates on hold
OTTAWA — The Bank of Canada said Tuesday it opted to keep its key policy rate unchanged at one per cent as the risks to the global recovery have increased, led by worries in Europe that renewed concerns over government debt levels could roil fragile financial markets.
Meanwhile, it acknowledged the Canadian economy has turned out to be weaker than expected, as a combination of weak productivity and a robust Canadian currency turn trade into a "significant drag" on growth.
Keeping the policy rate unchanged "leaves considerable money stimulus in place, consistent with achieving the two per cent inflation target in an environment of significant excess supply," the central bank said, reiterating that any further rate increase would need to be "carefully considered."
The Bank of Canada`s decision followed a move hours earlier by Australia`s central bank to keep its benchmark rate unchanged, citing heightened risks in Europe and an expected slowdown in job creation over the coming year. Meanwhile, the Canadian dollar was trading near parity with its U.S. counterpart on stronger commodity prices and an increased risk appetite among traders on news from Washington that the Bush-era tax cuts would indeed be extended.
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OTTAWA — The Bank of Canada said Tuesday it opted to keep its key policy rate unchanged at one per cent as the risks to the global recovery have increased, led by worries in Europe that renewed concerns over government debt levels could roil fragile financial markets.
Meanwhile, it acknowledged the Canadian economy has turned out to be weaker than expected, as a combination of weak productivity and a robust Canadian currency turn trade into a "significant drag" on growth.
Keeping the policy rate unchanged "leaves considerable money stimulus in place, consistent with achieving the two per cent inflation target in an environment of significant excess supply," the central bank said, reiterating that any further rate increase would need to be "carefully considered."
The Bank of Canada`s decision followed a move hours earlier by Australia`s central bank to keep its benchmark rate unchanged, citing heightened risks in Europe and an expected slowdown in job creation over the coming year. Meanwhile, the Canadian dollar was trading near parity with its U.S. counterpart on stronger commodity prices and an increased risk appetite among traders on news from Washington that the Bush-era tax cuts would indeed be extended.
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Surrey`s Dianne Watts makes Top 5 in world`s best mayor list
SURREY - Dianne Watts has been named the fourth-best mayor in the world, according to the international City Mayors Foundation`s World Mayor competition.
The foundation aims to raise the profile of the world`s mayors and the cities they represent. The World Mayor contest allows citizens to vote online for the mayor of their choice. When this year`s votes were tallied, Watts came in at the Number Four spot. Mexico City`s Mayor Marcelo Luis Ebrard Casaubon came first.
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SURREY - Dianne Watts has been named the fourth-best mayor in the world, according to the international City Mayors Foundation`s World Mayor competition.
The foundation aims to raise the profile of the world`s mayors and the cities they represent. The World Mayor contest allows citizens to vote online for the mayor of their choice. When this year`s votes were tallied, Watts came in at the Number Four spot. Mexico City`s Mayor Marcelo Luis Ebrard Casaubon came first.
Read the full article here.