June 2011 Canadian Economic Fundamentals
- Thread starter Ally
- Start date
- Joined
- Mar 24, 2009
- Messages
- 16,743
Oil prices lifted by shutdown of TransCanada pipeline
NEW YORK ` Oil prices rose on Tuesday, lifted by the closure of a pipeline carrying Canadian crude to the United States and a decline in the dollar on new hopes for a debt bailout for Greece.
TransCanada Corp shut its 591,000 barrel per day (bpd) Keystone crude oil export pipeline over the weekend, for the second time in less than a month, due to a small leak in Kansas. The company had no estimate for when the pipeline, which runs from Alberta to the Cushing, Oklahoma delivery point for the U.S. oil futures contract, would be restarted.
`In case of a longer disruption, we might see a noticeable crude stock draw in Cushing in next week`s US inventory reports,` said JBC Energy in a note.
Read the full article here.
NEW YORK ` Oil prices rose on Tuesday, lifted by the closure of a pipeline carrying Canadian crude to the United States and a decline in the dollar on new hopes for a debt bailout for Greece.
TransCanada Corp shut its 591,000 barrel per day (bpd) Keystone crude oil export pipeline over the weekend, for the second time in less than a month, due to a small leak in Kansas. The company had no estimate for when the pipeline, which runs from Alberta to the Cushing, Oklahoma delivery point for the U.S. oil futures contract, would be restarted.
`In case of a longer disruption, we might see a noticeable crude stock draw in Cushing in next week`s US inventory reports,` said JBC Energy in a note.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Bank of Canada signals 'eventual' rate hike
OTTAWA ` The Bank of Canada kept its key interest rate unchanged at 1% on Tuesday but for the first time since the recession it said it would eventually have to lift borrowing costs if economic growth continues.
`To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be eventually withdrawn, consistent with achieving the 2% inflation target,` it stated. `Such reduction would need to be carefully considered.
It did not say whether `eventually` meant the next rate increase would be in July, September or beyond, but its statement was more hawkish than previous ones, which only said that any future hikes `would need to be carefully considered.`
Read the full article here.
OTTAWA ` The Bank of Canada kept its key interest rate unchanged at 1% on Tuesday but for the first time since the recession it said it would eventually have to lift borrowing costs if economic growth continues.
`To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be eventually withdrawn, consistent with achieving the 2% inflation target,` it stated. `Such reduction would need to be carefully considered.
It did not say whether `eventually` meant the next rate increase would be in July, September or beyond, but its statement was more hawkish than previous ones, which only said that any future hikes `would need to be carefully considered.`
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Record land sales underscore new interest in oil plays
Energy companies spent an eye-popping $842-million on Wednesday to snap up oil and gas land in Alberta in a sale that shatters the previous Canadian record.
The sale is further proof of the massive attention industry is paying to a series of lucrative new oil plays, where advances in technology are bringing oil to surface from areas once thought tapped-out.
Read the full article here.
Energy companies spent an eye-popping $842-million on Wednesday to snap up oil and gas land in Alberta in a sale that shatters the previous Canadian record.
The sale is further proof of the massive attention industry is paying to a series of lucrative new oil plays, where advances in technology are bringing oil to surface from areas once thought tapped-out.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canadians fixed on split, variable mortgages: Survey
OTTAWA ` Canadians appear split on whether fixed- or variable-rate mortgages are the way to go, even though most anticipate higher interest rates within a year, according to a new survey.
Canadian Imperial Bank of Commerce released survey results Thursday that showed 39 per cent of respondents say they would choose a fixed-rate mortgage at this time, while 32 per cent would pick a variable mortgage and 25 per cent were undecided.
A clear majority of the respondents ` 61 per cent ` said they think interest rates will be higher a year from now, while 24 per cent said they anticipate no change. Just three per cent said they think mortgage rates will be lower.
Read the full article here.
OTTAWA ` Canadians appear split on whether fixed- or variable-rate mortgages are the way to go, even though most anticipate higher interest rates within a year, according to a new survey.
Canadian Imperial Bank of Commerce released survey results Thursday that showed 39 per cent of respondents say they would choose a fixed-rate mortgage at this time, while 32 per cent would pick a variable mortgage and 25 per cent were undecided.
A clear majority of the respondents ` 61 per cent ` said they think interest rates will be higher a year from now, while 24 per cent said they anticipate no change. Just three per cent said they think mortgage rates will be lower.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Rental licensing could be introduced in your city soon enough
Since 2007, major Ontarian cities, such as Hamilton, London, Mississauga, Oshawa and Waterloo have introduced some form of licensing for residential rental properties.
Landlords in these communities are, needless to say, concerned about what these new municipal powers mean for their businesses, especially since it's harder than ever to find properties with positive cash flow. So why is 2007 important?
Well, that's when a series of amendments to the Ontario Municipal Act came into effect, which included the removal of a provision prohibiting municipalities from licensing residential rental properties.
Flashback
Initially, municipalities had the power to license lodging houses, which represent a very small percentage of residential rental properties in the province.
That power was greatly expanded on Jan. 30, 1996, so that municipalities could license businesses and residential rental units. But by Feb. 2, 1996, the provincial government then under Mike Harris quashed this newly established power, two days after being introduced.
Read the full article here.
Since 2007, major Ontarian cities, such as Hamilton, London, Mississauga, Oshawa and Waterloo have introduced some form of licensing for residential rental properties.
Landlords in these communities are, needless to say, concerned about what these new municipal powers mean for their businesses, especially since it's harder than ever to find properties with positive cash flow. So why is 2007 important?
Well, that's when a series of amendments to the Ontario Municipal Act came into effect, which included the removal of a provision prohibiting municipalities from licensing residential rental properties.
Flashback
Initially, municipalities had the power to license lodging houses, which represent a very small percentage of residential rental properties in the province.
That power was greatly expanded on Jan. 30, 1996, so that municipalities could license businesses and residential rental units. But by Feb. 2, 1996, the provincial government then under Mike Harris quashed this newly established power, two days after being introduced.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Markit, RBC launch Canadian factory index
Around the world, factory activity is considered a barometer of the economic health, frequently measured by a purchasing managers` index. Not so in Canada -- until now.
A Canadian manufacturing purchasing managers` index, or PMI, is being launched Thursday, compiled by the U.K. financial services company Markit and sponsored by the Royal Bank of Canada. For the first time, Canadian activity will be comparable with the likes of Germany, China, Brazil and 21 other countries or regions.
The Canadian PMI serves several purposes as an economic indicator: it measures the health of factory activity, generally considered a leading indicator of the economy. It gives a sense of future inflation trends and is widely used by central banks such as the Bank of England in thinking about monetary policy. And, importantly, it is timely -- released on the first business day of the month, ahead even of employment numbers.
Read the full article here.
Around the world, factory activity is considered a barometer of the economic health, frequently measured by a purchasing managers` index. Not so in Canada -- until now.
A Canadian manufacturing purchasing managers` index, or PMI, is being launched Thursday, compiled by the U.K. financial services company Markit and sponsored by the Royal Bank of Canada. For the first time, Canadian activity will be comparable with the likes of Germany, China, Brazil and 21 other countries or regions.
The Canadian PMI serves several purposes as an economic indicator: it measures the health of factory activity, generally considered a leading indicator of the economy. It gives a sense of future inflation trends and is widely used by central banks such as the Bank of England in thinking about monetary policy. And, importantly, it is timely -- released on the first business day of the month, ahead even of employment numbers.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada exporters face headwinds, new minister says
OTTAWA (Reuters) - Canada's new trade minister cautioned on Thursday that the strong currency and growing competition from emerging economies could stall the country's export growth.
In his inaugural speech, Ed Fast promised quick action on the Conservative government's trade agenda, including signing free trade agreements with the European Union and India, deepening ties with the United States and penetrating new markets in Asia.
But he added that "competitiveness challenges" remain.
"If we're not careful those competitive challenges will become our Achilles' Heel," he said.
Read the full article here.
OTTAWA (Reuters) - Canada's new trade minister cautioned on Thursday that the strong currency and growing competition from emerging economies could stall the country's export growth.
In his inaugural speech, Ed Fast promised quick action on the Conservative government's trade agenda, including signing free trade agreements with the European Union and India, deepening ties with the United States and penetrating new markets in Asia.
But he added that "competitiveness challenges" remain.
"If we're not careful those competitive challenges will become our Achilles' Heel," he said.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
OECD chief sees world recovery slowing
The global economic recovery is slowing although it`s unlikely to turn into a double-dip recession, OECD chief Angel Gurria said on Friday.
The head of the Paris-based Organization for Economic Co-operation and Development spoke after a report showed unexpectedly weak U.S. jobs growth in May, which knocked global stock markets lower.
Read the full article here.
The global economic recovery is slowing although it`s unlikely to turn into a double-dip recession, OECD chief Angel Gurria said on Friday.
The head of the Paris-based Organization for Economic Co-operation and Development spoke after a report showed unexpectedly weak U.S. jobs growth in May, which knocked global stock markets lower.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Housing rush scrutinized
Canada's top banking regulator is on a fact-finding mission to gauge the scope of foreign investment in residential real estate.
Industry sources say the Office of the Superintendent of Financial Institutions is sizing up the market, most likely as part of its active campaign to "stress test" the country's big banks to measure how they would be affected by volatility in various market segments.
OSFI is taking a broad look at bank exposure to household debt and how the financial in-stitutions are monitoring loan portfolios amid growing concerns over the ability of Canadians to handle their debt load.
Read the full article here.
Canada's top banking regulator is on a fact-finding mission to gauge the scope of foreign investment in residential real estate.
Industry sources say the Office of the Superintendent of Financial Institutions is sizing up the market, most likely as part of its active campaign to "stress test" the country's big banks to measure how they would be affected by volatility in various market segments.
OSFI is taking a broad look at bank exposure to household debt and how the financial in-stitutions are monitoring loan portfolios amid growing concerns over the ability of Canadians to handle their debt load.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
The 15 best things Warren Buffet has ever said about investing
Warren Buffett has a reputation as a bit of a wordsmith; it's not rare that he delights or surprises the coterie of media, investors and fans who follow him, with his steady stream of verbal gems.
Many of his most famous quotes emanate from his annual letters to his shareholders; others come from speeches or interviews.
We compiled a few of the best Oracle of Omaha quotes on investing we could find (by no means, is it exhaustive).
If we've missed any of your favorites, let us know in the comments.
Read the full article here.
Warren Buffett has a reputation as a bit of a wordsmith; it's not rare that he delights or surprises the coterie of media, investors and fans who follow him, with his steady stream of verbal gems.
Many of his most famous quotes emanate from his annual letters to his shareholders; others come from speeches or interviews.
We compiled a few of the best Oracle of Omaha quotes on investing we could find (by no means, is it exhaustive).
If we've missed any of your favorites, let us know in the comments.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada's largest gold mine up and running
Canada`s largest gold mine is finally up and running, as Osisko Mining Corp. announced the first gold pour from the giant Canadian Malartic project in Quebec. Commercial production is expected in May.
Osisko now enters the challenging production ramp-up period. George Topping, an analyst at Stifel Nicolaus, is anticipating a relatively slow build-up as large open pit mines tend to have teething problems, especially in the mill.
He expects production of 309,000 ounces in 2011 and 614,000 ounces in 2012, well below Osisko`s 2008 forecasts (of 492,000 ounces 688,000 ounces, respectively). That said, he thinks Osisko is well-equipped to overcome any teething problems that come up.
Read the full article here.
Canada`s largest gold mine is finally up and running, as Osisko Mining Corp. announced the first gold pour from the giant Canadian Malartic project in Quebec. Commercial production is expected in May.
Osisko now enters the challenging production ramp-up period. George Topping, an analyst at Stifel Nicolaus, is anticipating a relatively slow build-up as large open pit mines tend to have teething problems, especially in the mill.
He expects production of 309,000 ounces in 2011 and 614,000 ounces in 2012, well below Osisko`s 2008 forecasts (of 492,000 ounces 688,000 ounces, respectively). That said, he thinks Osisko is well-equipped to overcome any teething problems that come up.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
China urges more coal imports to keep lights on
BEIJING ` China will encourage coal imports and urge miners to boost output to increase supplies to power plants, China`s economic planning agency said on Wednesday, as the world`s largest energy consumer tackles its worst power shortages in seven years.
Despite its massive electricity generating capacity, China is facing power shortages because power producers are forced to accept a low fixed price for the electricity they supply to the grid, economists say. With high coal costs, many power firms prefer to cut output rather than incur losses.
The National Development and Reform Commission (NDRC) said on Wednesday that China would take comprehensive measures to increase energy supplies and curb unreasonable demand.
Read the full article here.
BEIJING ` China will encourage coal imports and urge miners to boost output to increase supplies to power plants, China`s economic planning agency said on Wednesday, as the world`s largest energy consumer tackles its worst power shortages in seven years.
Despite its massive electricity generating capacity, China is facing power shortages because power producers are forced to accept a low fixed price for the electricity they supply to the grid, economists say. With high coal costs, many power firms prefer to cut output rather than incur losses.
The National Development and Reform Commission (NDRC) said on Wednesday that China would take comprehensive measures to increase energy supplies and curb unreasonable demand.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Flaherty's mortgage restrictions: PropertyWire examines the aftermath
A true measure of the impact of change is not to look at it from a scholarly level, but to examine the depth to which it manifests itself when it moves from theory into practice.
And such is the case with Jim Flaherty`s most recent round of mortgage and HELOC restrictions that were announced in January of this year, and then rolled out in March and April.
Read the full article here.
A true measure of the impact of change is not to look at it from a scholarly level, but to examine the depth to which it manifests itself when it moves from theory into practice.
And such is the case with Jim Flaherty`s most recent round of mortgage and HELOC restrictions that were announced in January of this year, and then rolled out in March and April.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Aerospace manufacturing industry poised for liftoff, despite turbulence
Ottawa, June 3, 2011 `The Canadian aerospace industry is poised for a recovery in production and revenues over the next two years, thanks to increased business and consumer spending on air travel. But the strong Canadian dollar will limit industry profitability, according to The Conference Board of Canada`s Canadian Industrial Outlook: Canada`s Aerospace Product Manufacturing Industry ` Spring 2011.
`Air passenger and freight traffic have surpassed pre-recession levels in both domestic and international markets. Demand for commercial and private jets should follow suit,` said Michael Burt, Associate Director, Industrial Economic Trends. `New orders are coming in, which will translate into higher production and revenues.`
This year, both production and revenues will begin to recover following two years of sizeable declines. Production shrank by nine per cent in 2010 and is expected to pick up in the second half of this year, leading to a five per cent increase in 2012. Revenues will increase by 1.1 per cent in 2011, after falling by 26 per cent in the last two years.
Read the full article here.
Ottawa, June 3, 2011 `The Canadian aerospace industry is poised for a recovery in production and revenues over the next two years, thanks to increased business and consumer spending on air travel. But the strong Canadian dollar will limit industry profitability, according to The Conference Board of Canada`s Canadian Industrial Outlook: Canada`s Aerospace Product Manufacturing Industry ` Spring 2011.
`Air passenger and freight traffic have surpassed pre-recession levels in both domestic and international markets. Demand for commercial and private jets should follow suit,` said Michael Burt, Associate Director, Industrial Economic Trends. `New orders are coming in, which will translate into higher production and revenues.`
This year, both production and revenues will begin to recover following two years of sizeable declines. Production shrank by nine per cent in 2010 and is expected to pick up in the second half of this year, leading to a five per cent increase in 2012. Revenues will increase by 1.1 per cent in 2011, after falling by 26 per cent in the last two years.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Giving property to your kids
With exam stress behind them and university graduation celebrations in full swing, your kids may be moving on to the next chapter. While they were away at university you may have bought them a place to live, perhaps also renting some rooms to their friends. With their studies at an end, the question is whether to keep that property and rent it to strangers, hand over ownership to your child or sell up.
Depending on circumstances, your child may want to stay on your property with a view to taking over ownership.
"When they first graduate, they may be in a position where they are not quite established financially," says Daniel Natareno, mortgage consultant with Mortgage Intelligence in Toronto. "You have to make sure that [your child] will be able to meet the carrying costs of that property."
Read the full article here.
With exam stress behind them and university graduation celebrations in full swing, your kids may be moving on to the next chapter. While they were away at university you may have bought them a place to live, perhaps also renting some rooms to their friends. With their studies at an end, the question is whether to keep that property and rent it to strangers, hand over ownership to your child or sell up.
Depending on circumstances, your child may want to stay on your property with a view to taking over ownership.
"When they first graduate, they may be in a position where they are not quite established financially," says Daniel Natareno, mortgage consultant with Mortgage Intelligence in Toronto. "You have to make sure that [your child] will be able to meet the carrying costs of that property."
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Food prices
Poor harvests and increased demand, particularly from China, have forced up food prices on world markets over the past year. America`s stocks of coarse grains are the lowest for 15 years. Recent dry weather in northern Europe may force millers to import wheat. Despite record coffee exports in the year to March, there is a shortage of high-grade arabica beans and prices have topped $3 per pound, the highest since 1977. Orange juice is at a near four-year high, after the lowest supplies in a decade in 2010. Beetles have attacked coconuts in Thailand, reducing yields of oil and milk. In contrast, cocoa output will rise this season and more is on the market since the end of the civil war in the CÃte d`Ivoire; prices have fallen.
Read the full article here.
Poor harvests and increased demand, particularly from China, have forced up food prices on world markets over the past year. America`s stocks of coarse grains are the lowest for 15 years. Recent dry weather in northern Europe may force millers to import wheat. Despite record coffee exports in the year to March, there is a shortage of high-grade arabica beans and prices have topped $3 per pound, the highest since 1977. Orange juice is at a near four-year high, after the lowest supplies in a decade in 2010. Beetles have attacked coconuts in Thailand, reducing yields of oil and milk. In contrast, cocoa output will rise this season and more is on the market since the end of the civil war in the CÃte d`Ivoire; prices have fallen.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Food sector key growth area for Canadian economy: Report
If the word "food" conjures images of farmers threshing wheat in the late summer sun, think again -the food business, in fact, extends into every facet of the Canadian economy, offering security of supply for decades ahead and the opportunity for significant growth, according to a report Tuesday from the Conference Board of Canada.
Food generates almost 10 per cent of Canada's total economic output and employs 13 per cent of the working population, or 2.3 million people.
Food also generates $155 billion a year in domestic spending, while food exports deliver $38.8 billion in revenue for Canada, one of only 24 countries that are major net exporters.
Read the full article here.
If the word "food" conjures images of farmers threshing wheat in the late summer sun, think again -the food business, in fact, extends into every facet of the Canadian economy, offering security of supply for decades ahead and the opportunity for significant growth, according to a report Tuesday from the Conference Board of Canada.
Food generates almost 10 per cent of Canada's total economic output and employs 13 per cent of the working population, or 2.3 million people.
Food also generates $155 billion a year in domestic spending, while food exports deliver $38.8 billion in revenue for Canada, one of only 24 countries that are major net exporters.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada's economy will see 3.2% growth this year: RBC
Canada's economy will grow by 3.2 per cent this year, helped by high commodity prices and a continued recovery in the United States, according to the latest outlook from RBC Economics.
It expects gross domestic product will grow at a respectable 3.1 per cent pace in 2012.
`Strong demand for commodities and a revival in U.S. demand for autos will drive healthy gains in exports ` at an average of nine per cent per annum for the next two years,` RBC chief economist Craig Wright said in a report released Thursday.
Read the full article here.
Canada's economy will grow by 3.2 per cent this year, helped by high commodity prices and a continued recovery in the United States, according to the latest outlook from RBC Economics.
It expects gross domestic product will grow at a respectable 3.1 per cent pace in 2012.
`Strong demand for commodities and a revival in U.S. demand for autos will drive healthy gains in exports ` at an average of nine per cent per annum for the next two years,` RBC chief economist Craig Wright said in a report released Thursday.
Read the full article here.