September 2009
- Thread starter Ally
- Start date
- Joined
- Mar 24, 2009
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Growth Brought to You By: the Government
Canada`s government and central bank have achieved what they set out to do: injected life back into the economy through stimulus, stoking growth in June after 10 consecutive months of decline. The return to growth may be a welcome change, but with the economy still heavily dependent on its stimulus addiction, activity in the coming year will remain shaky until the private sector can stand on its own two feet.
Economists, like Krishen Rangasamy from CIBC World Markets and Sébastien Lavoie from Laurentian Bank Securities, said unemployment and weak export demand would likely rattle the figures until the end of 2010 when the private sector will eventually begin to strengthen.
"[It] will take approximately twice the time for the Canadian economy to fully recover from the contraction experienced between the fourth quarter of 2008 and the second quarter of 2009." Mr. Lavoie said.
Real gross domestic product increased by 0.1% in June, the first monthly increase since July 2008, Statistics Canada figures showed Monday. The rise signalled the economy had begun to improve as it entered the third quarter, the period in which the Bank of Canada and most economists predict the recession to have ended.
But the economy has a steep hole to climb out of. Real GDP contracted by a worse-than-expected annualized rate of 3.4% in the second quarter, while the decline in the first quarter was revised down to 6.1% from 5.4%, marking the worst quarterly performance on record.
Read the full article here.
Canada`s government and central bank have achieved what they set out to do: injected life back into the economy through stimulus, stoking growth in June after 10 consecutive months of decline. The return to growth may be a welcome change, but with the economy still heavily dependent on its stimulus addiction, activity in the coming year will remain shaky until the private sector can stand on its own two feet.
Economists, like Krishen Rangasamy from CIBC World Markets and Sébastien Lavoie from Laurentian Bank Securities, said unemployment and weak export demand would likely rattle the figures until the end of 2010 when the private sector will eventually begin to strengthen.
"[It] will take approximately twice the time for the Canadian economy to fully recover from the contraction experienced between the fourth quarter of 2008 and the second quarter of 2009." Mr. Lavoie said.
Real gross domestic product increased by 0.1% in June, the first monthly increase since July 2008, Statistics Canada figures showed Monday. The rise signalled the economy had begun to improve as it entered the third quarter, the period in which the Bank of Canada and most economists predict the recession to have ended.
But the economy has a steep hole to climb out of. Real GDP contracted by a worse-than-expected annualized rate of 3.4% in the second quarter, while the decline in the first quarter was revised down to 6.1% from 5.4%, marking the worst quarterly performance on record.
Read the full article here.
- Joined
- Mar 24, 2009
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Loonie falls after Liberals say won`t Support Gov`t
TORONTO (Reuters) - Canada`s dollar weakened versus a broadly stronger U.S. currency on Tuesday, and was hit with additional pressure stemming from the threat of a federal election.
The Canadian unit dropped to its lowest level of the day at C$1.1068 to the U.S. dollar, or 90.35 U.S. cents, after the country`s official opposition Liberal Party said it will no longer support the minority Conservative government of Prime Minister Stephen Harper.
Political uncertainty tends to put pressure on a country`s currency.
The unexpected news added to the Canadian currency`s losses amid a generally stronger U.S. dollar and choppy trading conditions brought on partly by the lower liquidity of the late summer period.
At 2:20 p.m., the Canadian dollar was at C$1.1048 to the U.S. dollar, or 90.51 U.S. cents, down from C$1.0950, or 91.32 U.S. cents, at Monday`s close.
Read the full article here.
TORONTO (Reuters) - Canada`s dollar weakened versus a broadly stronger U.S. currency on Tuesday, and was hit with additional pressure stemming from the threat of a federal election.
The Canadian unit dropped to its lowest level of the day at C$1.1068 to the U.S. dollar, or 90.35 U.S. cents, after the country`s official opposition Liberal Party said it will no longer support the minority Conservative government of Prime Minister Stephen Harper.
Political uncertainty tends to put pressure on a country`s currency.
The unexpected news added to the Canadian currency`s losses amid a generally stronger U.S. dollar and choppy trading conditions brought on partly by the lower liquidity of the late summer period.
At 2:20 p.m., the Canadian dollar was at C$1.1048 to the U.S. dollar, or 90.51 U.S. cents, down from C$1.0950, or 91.32 U.S. cents, at Monday`s close.
Read the full article here.
- Joined
- Oct 12, 2007
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- 586
Terence Corocran: Poof! The global recession is history
So now, according to the latest interpretation of the latest numbers, the Canadian branch of the Great Recession is more or less officially over.
The recession ended in June, economists declared yesterday after looking at a Statistics Canada report that the economy grew at a thin 0.1% rate during the month. July, they said, will be a lot stronger as auto production increases and other economic activity -- real estate, inventory accumulation -- picks up. Look for a "big bounce" in July, said CIBC World Markets.
We`re all in favour of big bounces, just so long as we understand where they came from and where they`re going. The rapid turnaround in economic sentiment, in Canada and abroad, is taking place with amazing speed but without much in the way of explanation as to how we got from the brink of what was going to be a depressionary economic apocalypse to sitting pretty through a minor disturbance.
read full article here
So now, according to the latest interpretation of the latest numbers, the Canadian branch of the Great Recession is more or less officially over.
The recession ended in June, economists declared yesterday after looking at a Statistics Canada report that the economy grew at a thin 0.1% rate during the month. July, they said, will be a lot stronger as auto production increases and other economic activity -- real estate, inventory accumulation -- picks up. Look for a "big bounce" in July, said CIBC World Markets.
We`re all in favour of big bounces, just so long as we understand where they came from and where they`re going. The rapid turnaround in economic sentiment, in Canada and abroad, is taking place with amazing speed but without much in the way of explanation as to how we got from the brink of what was going to be a depressionary economic apocalypse to sitting pretty through a minor disturbance.
read full article here
- Joined
- Oct 12, 2007
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- 586
Growth brought to you by: The government
Canada`s government and central bank have achieved what they set out to do: injected life back into the economy through stimulus, stoking growth in June after 10 consecutive months of decline. The return to growth may be a welcome change, but with the economy still heavily dependent on its stimulus addiction, activity in the coming year will remain shaky until the private sector can stand on its own two feet.
Economists, like Krishen Rangasamy from CIBC World Markets and Sébastien Lavoie from Laurentian Bank Securities, said unemployment and weak export demand would likely rattle the figures until the end of 2010 when the private sector will eventually begin to strengthen.
"[It] will take approximately twice the time for the Canadian economy to fully recover from the contraction experienced between the fourth quarter of 2008 and the second quarter of 2009." Mr. Lavoie said.
read full article here
Canada`s government and central bank have achieved what they set out to do: injected life back into the economy through stimulus, stoking growth in June after 10 consecutive months of decline. The return to growth may be a welcome change, but with the economy still heavily dependent on its stimulus addiction, activity in the coming year will remain shaky until the private sector can stand on its own two feet.
Economists, like Krishen Rangasamy from CIBC World Markets and Sébastien Lavoie from Laurentian Bank Securities, said unemployment and weak export demand would likely rattle the figures until the end of 2010 when the private sector will eventually begin to strengthen.
"[It] will take approximately twice the time for the Canadian economy to fully recover from the contraction experienced between the fourth quarter of 2008 and the second quarter of 2009." Mr. Lavoie said.
read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
Inflation will accelerate next decade, economists say
The Federal Reserve will be unable to prevent the trillions of dollars in government stimulus pumped into the U.S. economy from stoking inflation within a decade, a survey of business economists showed.
The price gauge tracked by the central bank will rise 3% a year on average from 2014 through 2018, according to the median estimate in a poll taken by the National Association for Business Economics. The rate exceeds the 2% pace that the respondents said was the Fed`s unofficial target.
The report is in line with surveys of consumers and indicates the central bank may have to work harder to damp inflation expectations after pouring more than US$1-trillion into credit markets in a strategy known as quantitative easing. Economists in the survey also said the Obama administration`s US$787-billion stimulus program would push consumer prices higher.
read full article here
The Federal Reserve will be unable to prevent the trillions of dollars in government stimulus pumped into the U.S. economy from stoking inflation within a decade, a survey of business economists showed.
The price gauge tracked by the central bank will rise 3% a year on average from 2014 through 2018, according to the median estimate in a poll taken by the National Association for Business Economics. The rate exceeds the 2% pace that the respondents said was the Fed`s unofficial target.
The report is in line with surveys of consumers and indicates the central bank may have to work harder to damp inflation expectations after pouring more than US$1-trillion into credit markets in a strategy known as quantitative easing. Economists in the survey also said the Obama administration`s US$787-billion stimulus program would push consumer prices higher.
read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
Time`s up for tax crybabies
For decades, Americans have preferred to run up huge deficits by borrowing from foreigners rather than living within their means by collecting enough taxes to cover their government`s expenditures.
Any attempts to raise taxes are greeted with derision by voters who have no idea how low their taxes are compared with the rest of the world.
Like others living outside the United States, I`m very unsympathetic to this whining and deficit-riddled form of governance. It`s ruinous for the rest of the world and has been a contributing factor to the economic mess we`re all in nowadays.
Americans are tax crybabies, but their spendthrift party will have to end. For the first time, there are hushed whispers in Washington`s policy corridors of a possible federal VAT, or GST, across the land to right the listing ship of state.
read full article here
For decades, Americans have preferred to run up huge deficits by borrowing from foreigners rather than living within their means by collecting enough taxes to cover their government`s expenditures.
Any attempts to raise taxes are greeted with derision by voters who have no idea how low their taxes are compared with the rest of the world.
Like others living outside the United States, I`m very unsympathetic to this whining and deficit-riddled form of governance. It`s ruinous for the rest of the world and has been a contributing factor to the economic mess we`re all in nowadays.
Americans are tax crybabies, but their spendthrift party will have to end. For the first time, there are hushed whispers in Washington`s policy corridors of a possible federal VAT, or GST, across the land to right the listing ship of state.
read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
Our `boring` rules just fine, Flaherty says
Less than a week away from a G20 meeting to discuss progress member nations have made toward bolstering oversight of the financial system, Jim Flaherty, the federal Finance Minister, signalled that the message from Canada will be that the rules in this country are largely just fine as they are.
"The Canadian financial system was once dismissed as `boring` back when credit was flourishing," Mr. Flaherty told business leaders in Vancouver on Sunday. "The global financial crisis has shown us that boring has its benefits."
Under the present system, oversight of the broader financial system is the responsibility of a committee of high-ranking officials, including the governor of the Bank of Canada and the Superintendent of Financial Institutions.
read full article here
Less than a week away from a G20 meeting to discuss progress member nations have made toward bolstering oversight of the financial system, Jim Flaherty, the federal Finance Minister, signalled that the message from Canada will be that the rules in this country are largely just fine as they are.
"The Canadian financial system was once dismissed as `boring` back when credit was flourishing," Mr. Flaherty told business leaders in Vancouver on Sunday. "The global financial crisis has shown us that boring has its benefits."
Under the present system, oversight of the broader financial system is the responsibility of a committee of high-ranking officials, including the governor of the Bank of Canada and the Superintendent of Financial Institutions.
read full article here
- Joined
- Oct 12, 2007
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- 586
The perils of writing off the mortgage
It has been nearly six months since the Lipson decision, in which the Supreme Court of Canada effectively blessed the debt-swap strategy known as the "Singleton shuffle." But a new court decision reminds us how critical it is when rearranging your debt to do so legally.
After all, in Canada, it`s nearly impossible to write off your mortgage interest without some advance planning.
The Singleton shuffle, named after Vancouver lawyer John Singleton`s 2001 Supreme Court victory, stands for the notion that you can rearrange your financial affairs to make the interest on investment loans tax-deductible. How you do that is by replacing non-deductible debt with tax-deductible debt.
The case decided last month involved Nina Sherle, who owned a rental property (Property A) with a mortgage on it upon which the interest was deductible. She also owned a personal residence (Property B) free and clear.
read full article here
It has been nearly six months since the Lipson decision, in which the Supreme Court of Canada effectively blessed the debt-swap strategy known as the "Singleton shuffle." But a new court decision reminds us how critical it is when rearranging your debt to do so legally.
After all, in Canada, it`s nearly impossible to write off your mortgage interest without some advance planning.
The Singleton shuffle, named after Vancouver lawyer John Singleton`s 2001 Supreme Court victory, stands for the notion that you can rearrange your financial affairs to make the interest on investment loans tax-deductible. How you do that is by replacing non-deductible debt with tax-deductible debt.
The case decided last month involved Nina Sherle, who owned a rental property (Property A) with a mortgage on it upon which the interest was deductible. She also owned a personal residence (Property B) free and clear.
read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
China`s $1.9B bid in oilsands sparks energy security debate
CALGARY - PetroChina`s $1.9-billion venture into Alberta`s oilsands -- giving the state-owned company a majority stake in key bitumen operations-- is sparking questions in Canada and the U. S. about energy security, and what say Ottawa should have in approving the deal.
The Alberta government is urging the federal Tories to quickly give their blessing to the agreement, arguing international investment in the oilsands will produce a slew of economic spinoffs.
Athabasca Oil Sands Corp. announced Monday that state-owned PetroChina International Investment Co. Ltd. will buy a 60 per cent share in its MacKay River and Dover projects for nearly $2 billion, marking the largest foray to date by China in the oilsands.
read full article here
CALGARY - PetroChina`s $1.9-billion venture into Alberta`s oilsands -- giving the state-owned company a majority stake in key bitumen operations-- is sparking questions in Canada and the U. S. about energy security, and what say Ottawa should have in approving the deal.
The Alberta government is urging the federal Tories to quickly give their blessing to the agreement, arguing international investment in the oilsands will produce a slew of economic spinoffs.
Athabasca Oil Sands Corp. announced Monday that state-owned PetroChina International Investment Co. Ltd. will buy a 60 per cent share in its MacKay River and Dover projects for nearly $2 billion, marking the largest foray to date by China in the oilsands.
read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
Potash won`t recover until 2011, analyst warns
The potash market won`t recover until 2011, CIBC World Markets warned on Tuesday as it cut its price target on Potash Corp. of Saskatchewan (POT-T96.36-0.82-0.84%) – the industry`s largest producer of the fertilizer component.
"We continue to see pressure on potash demand given the bumper crop being projected in the U.S. and China," analyst Jacob Bout wrote in a morning note to clients. "Grain pricing and weather will be the key determinants of potash demand but there has been no strong relationship between the lack of potash application and 2009 crop production."
Analysts have been suggesting that demand would return in 2010, because farmers can skip a year and still get strong yields from their fields. But with a bumper crop this year, Mr. Bout said they may be inclined to go another season without the nutrient. Prices have come down from about $1,000 (U.S.) a tonne last year to closer to $650 this year.
He left his price target and rating unchanged for Agrium Inc. (AGU-T51.33-1.02-1.95%) unchanged at $60 and "sector outperform," saying the company`s retail operations help to shield it from potash price fluctuations.
read full article here
The potash market won`t recover until 2011, CIBC World Markets warned on Tuesday as it cut its price target on Potash Corp. of Saskatchewan (POT-T96.36-0.82-0.84%) – the industry`s largest producer of the fertilizer component.
"We continue to see pressure on potash demand given the bumper crop being projected in the U.S. and China," analyst Jacob Bout wrote in a morning note to clients. "Grain pricing and weather will be the key determinants of potash demand but there has been no strong relationship between the lack of potash application and 2009 crop production."
Analysts have been suggesting that demand would return in 2010, because farmers can skip a year and still get strong yields from their fields. But with a bumper crop this year, Mr. Bout said they may be inclined to go another season without the nutrient. Prices have come down from about $1,000 (U.S.) a tonne last year to closer to $650 this year.
He left his price target and rating unchanged for Agrium Inc. (AGU-T51.33-1.02-1.95%) unchanged at $60 and "sector outperform," saying the company`s retail operations help to shield it from potash price fluctuations.
read full article here
- Joined
- Oct 12, 2007
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- 586
The Governor gets his hands dirty
t is 6 o`clock in the morning and I am on a leafy street-corner in Ottawa`s Rockcliffe Park, one arm braced against a stop sign, the other grasping the toe of a sneaker and gingerly trying to coax some co-operation from my quadriceps which, if they could talk, would pose the entirely valid question: What the hell are we doing here?
One of the benefits of business journalism is that it doesn`t require much in the way of physical sacrifice, and when I requested some time with Bank of Canada
Governor Mark Carney, I naively envisaged a low-key dinner, or a couple of pints at a local pub. What I received, instead, was a counterproposal: "Are you fit?" the Bank`s communications director asked me. "More or less," I replied, stifling a smoker`s cough.
And so I found myself, a week later, stretching on a sidewalk a block from the 44-year-old Carney`s home, wondering if I should feign a leg injury before a few of his pals joined us for a 10-kilometre run.
read full article here
t is 6 o`clock in the morning and I am on a leafy street-corner in Ottawa`s Rockcliffe Park, one arm braced against a stop sign, the other grasping the toe of a sneaker and gingerly trying to coax some co-operation from my quadriceps which, if they could talk, would pose the entirely valid question: What the hell are we doing here?
One of the benefits of business journalism is that it doesn`t require much in the way of physical sacrifice, and when I requested some time with Bank of Canada
Governor Mark Carney, I naively envisaged a low-key dinner, or a couple of pints at a local pub. What I received, instead, was a counterproposal: "Are you fit?" the Bank`s communications director asked me. "More or less," I replied, stifling a smoker`s cough. And so I found myself, a week later, stretching on a sidewalk a block from the 44-year-old Carney`s home, wondering if I should feign a leg injury before a few of his pals joined us for a 10-kilometre run.
read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
Less boom, less bust
Oui, France`s taxes and bureaucrats are a burden, but its safety net now looks very appealing
"You know, there`s two schools in economics on this. One is that there are some good taxes and the other is that no taxes are good taxes. I`m in the latter category. I don`t believe any taxes are good taxes."
So said Stephen Harper, Prime Minister of Canada, when I interviewed him at the close of July`s Group of Eight summit in L`Aquila, Italy. Intent on racing through more topics-I was allotted only about 10 minutes-I rolled on to the next one. If I`d had my wits about me, I would have grilled him.
Are you a closet anarchist, Mr. Prime Minister? How would Canada function in your low-tax, or no-tax, paradise? If taxes are evil, how do you explain the success of high-tax countries such as Denmark, Norway, Sweden and fellow G8 member France? Am I correct in assuming that you think the (low-tax and now vilified) Anglo-American economic model still has legs?
I suspect that Harper, numb after three days of endless meetings, wasn`t thinking any more clearly than I was. Every country has taxes of some sort, so presumably he agrees that if they are evil, they are a necessary evil. But he didn`t say that. You can also bet that if he were appointed global minister of nation building, he wouldn`t invent a high-tax country like France, and that many free market economists and politicians would take his side.
read full article here
Oui, France`s taxes and bureaucrats are a burden, but its safety net now looks very appealing
"You know, there`s two schools in economics on this. One is that there are some good taxes and the other is that no taxes are good taxes. I`m in the latter category. I don`t believe any taxes are good taxes."
So said Stephen Harper, Prime Minister of Canada, when I interviewed him at the close of July`s Group of Eight summit in L`Aquila, Italy. Intent on racing through more topics-I was allotted only about 10 minutes-I rolled on to the next one. If I`d had my wits about me, I would have grilled him.
Are you a closet anarchist, Mr. Prime Minister? How would Canada function in your low-tax, or no-tax, paradise? If taxes are evil, how do you explain the success of high-tax countries such as Denmark, Norway, Sweden and fellow G8 member France? Am I correct in assuming that you think the (low-tax and now vilified) Anglo-American economic model still has legs?
I suspect that Harper, numb after three days of endless meetings, wasn`t thinking any more clearly than I was. Every country has taxes of some sort, so presumably he agrees that if they are evil, they are a necessary evil. But he didn`t say that. You can also bet that if he were appointed global minister of nation building, he wouldn`t invent a high-tax country like France, and that many free market economists and politicians would take his side.
read full article here
- Joined
- Mar 24, 2009
- Messages
- 16,743
Small Business Wish List for MPs
With Parliament set to resume in a few weeks, Canadian small business owners are hoping the members of Parliament will concentrate on the economy rather than throwing the country back into election mode.
While small business confidence has not turned the corner, CFIB`s monthly Business Barometer shows more business owners expect their company`s performance to be stronger in the next year than those expecting a weaker performance. Despite these less pessimistic fortunes, now is not the time to take our eyes off the needs of the economy.
MPs returning to Ottawa should consider the following:
A reality check for EI
With higher levels of unemployment, the Employment Insurance fund is in trouble. With only $2-billion of the $57-billion in surpluses allocated to the new EI fund, the cushion will quickly run out after the two-year premium freeze ends in 2011. As forecasts suggest, Canada is already spending far more on EI programs and benefits than it will collect in premiums, now is not the time to make the system more generous. While the current patchwork of eligibility requirements is confusing and needs streamlining, small business owners are against the reduction of the number of hours needed to receive benefits. In addition to funding worries, the government should be careful of incenting people to stay on the sidelines of the labour market.
Read the full article here.
With Parliament set to resume in a few weeks, Canadian small business owners are hoping the members of Parliament will concentrate on the economy rather than throwing the country back into election mode.
While small business confidence has not turned the corner, CFIB`s monthly Business Barometer shows more business owners expect their company`s performance to be stronger in the next year than those expecting a weaker performance. Despite these less pessimistic fortunes, now is not the time to take our eyes off the needs of the economy.
MPs returning to Ottawa should consider the following:
A reality check for EI
With higher levels of unemployment, the Employment Insurance fund is in trouble. With only $2-billion of the $57-billion in surpluses allocated to the new EI fund, the cushion will quickly run out after the two-year premium freeze ends in 2011. As forecasts suggest, Canada is already spending far more on EI programs and benefits than it will collect in premiums, now is not the time to make the system more generous. While the current patchwork of eligibility requirements is confusing and needs streamlining, small business owners are against the reduction of the number of hours needed to receive benefits. In addition to funding worries, the government should be careful of incenting people to stay on the sidelines of the labour market.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Canada to See Weak Recovery says OECD
OTTAWA -- Canada will have among the weakest economic recoveries of major industrial nations, according to the Organization for Economic Co-operation and Development.
The Paris-based group of 30 nations said Canada`s economy will contract 2% in the third quarter of 2009 before edging up 0.4% in the final three months of the year.
That`s in contrast to forecasts by the Bank of Canada, which expects the country`s gross domestic product, the broadest measure of economic performance, to grow 1.3% in the third quarter of this year, followed by a three per cent gain in the final three months of 2009. The central bank also forecast the economy will contract 2.3% overall this year and grow three per cent in 2010.
Last week, Statistics Canads reported GDP increased 0.1% in June, even as the second quarter declined overall by 3.4%.
Read the full article here.
OTTAWA -- Canada will have among the weakest economic recoveries of major industrial nations, according to the Organization for Economic Co-operation and Development.
The Paris-based group of 30 nations said Canada`s economy will contract 2% in the third quarter of 2009 before edging up 0.4% in the final three months of the year.
That`s in contrast to forecasts by the Bank of Canada, which expects the country`s gross domestic product, the broadest measure of economic performance, to grow 1.3% in the third quarter of this year, followed by a three per cent gain in the final three months of 2009. The central bank also forecast the economy will contract 2.3% overall this year and grow three per cent in 2010.
Last week, Statistics Canads reported GDP increased 0.1% in June, even as the second quarter declined overall by 3.4%.
Read the full article here.
- Joined
- Mar 24, 2009
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- 16,743
Housing Market to Rebound, CMHC says
OTTAWA -- Canada`s housing market is expected to see a strong rebound in the second half of this year and into 2010, the federal housing agency said Thursday.
Housing starts will reach 141,900 this year and increase to 150,300 for 2010, according to Canada Mortgage and Housing Corporation.
"Improving activity on the resale market and lower inventory levels in both the new and existing home markets are expected to prompt builders to increase residential construction," CMHC said.
Bob Dugan, CMHC`s chief economist, said "economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year."
"In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen."
Read the full article here.
OTTAWA -- Canada`s housing market is expected to see a strong rebound in the second half of this year and into 2010, the federal housing agency said Thursday.
Housing starts will reach 141,900 this year and increase to 150,300 for 2010, according to Canada Mortgage and Housing Corporation.
"Improving activity on the resale market and lower inventory levels in both the new and existing home markets are expected to prompt builders to increase residential construction," CMHC said.
Bob Dugan, CMHC`s chief economist, said "economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year."
"In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen."
Read the full article here.
- Joined
- Mar 24, 2009
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Summer Housing Starts Slump
Homebuyers appear to be favouring something old rather than trying something new this season. While numbers for existing homes have been showing signs of recovery, this week both housing starts and prices for new homes took a tumble.
In Toronto, the seasonally adjusted annual rate of housing starts fell to 19,800 units in July, according to numbers released by Canada Mortgage and Housing Corp. (CMHC). That is a 17.8% drop from June. The raw data, which does not take into account seasonal fluctuations, indicated that year-to-date starts are down 41.8% when compared with the first seven months of last year.
While inclement weather took its toll on construction across the country, Toronto had additional woes.
"Many condominium apartment projects in the city faced construction delays as a result of [the City`s labour disruption], weighing heavily on the number of high-rise starts last month," said Shaun Hildebrand, CMHC`s senior market analyst for the GTA in a release.
However, the traditionally more stable low-rise housing sector lifted the numbers.
Read the full article here.
Homebuyers appear to be favouring something old rather than trying something new this season. While numbers for existing homes have been showing signs of recovery, this week both housing starts and prices for new homes took a tumble.
In Toronto, the seasonally adjusted annual rate of housing starts fell to 19,800 units in July, according to numbers released by Canada Mortgage and Housing Corp. (CMHC). That is a 17.8% drop from June. The raw data, which does not take into account seasonal fluctuations, indicated that year-to-date starts are down 41.8% when compared with the first seven months of last year.
While inclement weather took its toll on construction across the country, Toronto had additional woes.
"Many condominium apartment projects in the city faced construction delays as a result of [the City`s labour disruption], weighing heavily on the number of high-rise starts last month," said Shaun Hildebrand, CMHC`s senior market analyst for the GTA in a release.
However, the traditionally more stable low-rise housing sector lifted the numbers.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
Cash sitting on Sidelines may add new life to Stock Market
In June 2008, Castle Moore Inc., a Mississauga, Ont.-based wealth management firm that manages just over $20-million for individual investors, decided to dump all of its equities and by the first week in November 2008 it had taken a 100% cash position.
Since then it has reduced its cash balance to roughly 54% of total assets under management. However, aside from testing the water with a small equity position of less than 10%, from mid-January to early March of this year, the company continues to avoid stocks, presently owning just one utility stock. Instead it has bought gold and mostly U.S. bonds.
"We just felt there was too much risk in the market and too little volume to support the price increase," said Sheldon Liberman, portfolio manager at Castle Moore.
Having missed out almost entirely on the 50% rally in equity markets since early March, Mr. Liberman said the firm is in no rush to increase its equity exposure. Valuations look far too expensive, he said, with a pullback imminent and markets headed into September and October, two notoriously poor months to be in stocks.
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In June 2008, Castle Moore Inc., a Mississauga, Ont.-based wealth management firm that manages just over $20-million for individual investors, decided to dump all of its equities and by the first week in November 2008 it had taken a 100% cash position.
Since then it has reduced its cash balance to roughly 54% of total assets under management. However, aside from testing the water with a small equity position of less than 10%, from mid-January to early March of this year, the company continues to avoid stocks, presently owning just one utility stock. Instead it has bought gold and mostly U.S. bonds.
"We just felt there was too much risk in the market and too little volume to support the price increase," said Sheldon Liberman, portfolio manager at Castle Moore.
Having missed out almost entirely on the 50% rally in equity markets since early March, Mr. Liberman said the firm is in no rush to increase its equity exposure. Valuations look far too expensive, he said, with a pullback imminent and markets headed into September and October, two notoriously poor months to be in stocks.
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Consumer Confidence highest in almost 2 Years
OTTAWA — Greater optimism about Canada`s economic outlook has lifted a prominent measure of consumer confidence to a reading of 86.5 in August, its highest level in almost two years.
According to the HarrisDecima Investors Group survey, the number who see better times ahead in the coming year jumped to 29 per cent in August from 20 per cent in June, while only 15 per cent saw more difficult economic times over the next 12 months. Forty-nine per cent believe business conditions won`t change much.
"The most recent data reveals a continued upward trend in consumer confidence that we`ve witnessed in the last few months," said Harris/Decima senior vice-president Jeff Walker.
"Canadians continue to grow more confident in future of the economy in the medium term, which is driving overall confidence upward. Confidence continues to grow at the microeconomic level, with more Canadians believing they`ll be better of personally a year from now than just three months ago."
Other measurements of consumer sentiment also showed positive signs.
Read the full article here.
OTTAWA — Greater optimism about Canada`s economic outlook has lifted a prominent measure of consumer confidence to a reading of 86.5 in August, its highest level in almost two years.
According to the HarrisDecima Investors Group survey, the number who see better times ahead in the coming year jumped to 29 per cent in August from 20 per cent in June, while only 15 per cent saw more difficult economic times over the next 12 months. Forty-nine per cent believe business conditions won`t change much.
"The most recent data reveals a continued upward trend in consumer confidence that we`ve witnessed in the last few months," said Harris/Decima senior vice-president Jeff Walker.
"Canadians continue to grow more confident in future of the economy in the medium term, which is driving overall confidence upward. Confidence continues to grow at the microeconomic level, with more Canadians believing they`ll be better of personally a year from now than just three months ago."
Other measurements of consumer sentiment also showed positive signs.
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- Mar 24, 2009
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- 16,743
Canada moves up to 9th place in annual competitive ranking, U.S. loses top spot
GENEVA - The United States has lost its place as the world`s most competitive economy, mainly because of the financial crisis and accumulated fiscal deficits, according to a new annual survey.
The U.S. is second ranked in a poll of over 13,000 business leaders conducted by the Geneva-based World Economic Forum, behind Switzerland. Singapore is third and Sweden comes fourth.
The annual ranking found Switzerland has overtaken the United States because the Swiss economic performance has been "relatively stable" while the American economy`s "greatest weakness continues to be related to its macroeconomic stability."
Read the full article here.
GENEVA - The United States has lost its place as the world`s most competitive economy, mainly because of the financial crisis and accumulated fiscal deficits, according to a new annual survey.
The U.S. is second ranked in a poll of over 13,000 business leaders conducted by the Geneva-based World Economic Forum, behind Switzerland. Singapore is third and Sweden comes fourth.
The annual ranking found Switzerland has overtaken the United States because the Swiss economic performance has been "relatively stable" while the American economy`s "greatest weakness continues to be related to its macroeconomic stability."
Read the full article here.