CA Economic Fundamentals 2008 (07,08)

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Wal-Mart touts more Canadian supercentres

TORONTO - Wal-Mart Stores Inc., the world`s biggest retailer, may boost the number of planned supercentres in Canada this year, putting more pressure on grocers in the country to reduce food prices, a BMO Capital Markets analyst said.

Wal-Mart may expand with 40 or 50 stores, with half being new supercentres and a third from conversions of other sites to the larger format, by the end of January, analyst David Hartley said Monday in a report, citing unidentified people in the "real estate world."

http://www.canada.com/edmontonjournal/news...aa-f1fcc0ef918c

 

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$1.10 US loonie on the horizon? Analysts say Canadian dollar `cheap`

OTTAWA - The Canadian dollar is "looking cheap" considering how oil prices have risen, say analysts, with one projecting the currency will climb above $1.05 US by early next year and another saying even a high of $1.10 US range can`t be ruled out.

"We conclude that appreciation of the Canadian dollar remains a response waiting to happen," Global Insight chief economist Dale Orr said Tuesday.

Based on the historical relationship between the price of oil and the price of the loonie, a more reasonable level for the currency would be as much as $1.10 US, he said in an interview.

http://www.canada.com/edmontonjournal/news...20-1a017423a489

 

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Home energy bills may be the highest ever: BMO

Total spending on energy by Canadian households likely hit an all-time high as a percentage of disposable income in the second quarter of this year – and those home-heating and electricity bills will head even higher this winter, says Bank of Montreal economist Douglas Porter.

Mr. Porter calculated that roughly 7 per cent of disposable household income went toward gasoline, natural gas, fuel oil and electricity in April, May and June.

"While raging gasoline prices have been hogging the headlines, natural gas has been quietly rising every bit as fast as crude oil in the past year (doubling in that period), and this will wallop household heating bills this winter," Mr. Porter wrote in a research report issued Wednesday.

http://www.reportonbusiness.com/servlet/st...y/Business/home

 

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Conoco sees a slide in world production
HOUSTON -- ConocoPhillips Co., the third-largest U.S. oil company, said yesterday that its global production fell as expected in the second quarter because of planned maintenance, but it benefited from higher oil and natural gas prices. In an overview of market conditions for the April-June period, Conoco also said its worldwide refining margins in the second quarter likely improved from the first quarter. But the company said the improvement was offset somewhat by lower margins for "secondary" refined products such as fuel oil, natural gas liquids and petroleum coke.

Higher utility costs to run its plants were a drag on results too, the company said.

http://www.theglobeandmail.com/servlet/sto...PStory/Business

 

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Mortgage restrictions introduced

TORONTO -- The federal government has cracked down on the mortgage industry with new rules that will make it more difficult for consumers to borrow.

One of the key measures the government has introduced is a stipulation that insured mortgage products not have an amortization period that is longer than 35 years. In the past two years, the amortization period has stretched from 25 years to as much as 40 with some people suggesting a 50-year amortization was soon to come.

http://www.canada.com/reginaleaderpost/new...35-1484cf3b188b

 

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Lower oil prices could benefit Canada

OTTAWA -- Some easing of world oil prices would be in the best interests of the Canadian economy, reducing inflation pressures at home and abroad and energizing the oil-importing economies of Canada`s trading partners, especially the United States, a Bay Street economist argues.

BMO Capital Markets economist Douglas Porter said in an analysis Wednesday the argument that the Canadian economy benefits from high oil prices, given that it`s a net exporter, "is in serious need of a review."

http://www.canada.com/saskatoonstarphoenix...77-a87a9243bac9

 

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Spain `not shielded` as house price falls loom

MADRID - House prices in Spain will fall up to 30% in real terms within three years and the property sector faces at least two years of recession, the head of one of Spain`s biggest real estate firms, Colonial, said on Tuesday.

"I see very few short-term solutions in the property business," Mariano de Miguel told a business conference organized in Madrid by savings bank Caja Madrid.

"The next two years are going to be very hard. We need to win time and to put on our hard hats because hard times are on their way," said Mr. De Miguel-- the first high-profile property executive to forecast such a steep fall in Spanish house prices.

http://www.nationalpost.com/todays_paper/s....html?id=643518

 

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American housing slump may hit Canada

Housing markets in most of the major industrial countries, and especially in the United States, are in a tailspin that will act as a drag on the global economy through next year, a federal government economist is warning.

While Canada`s housing market has so far avoided a meltdown, such as has occurred in the U.S., the market here could turn ugly, too, as Canada is still building more homes than it needs, Peter Hall, chief economist at Export Development Canada, said in an analysis Thursday.

"Canada has thus far avoided a housing adjustment," Hall said. "Starts are soaring on the strength of the domestic economy and a huge dollop of very well-timed fiscal stimulus.

http://www.canada.com/edmontonjournal/news...96-51aa47630125

 

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Cheaper U.S. housing market still has pitfalls

Is it time to take advantage of a crisis in the U.S. housing market and a strong Canadian dollar by buying property south of the border?

Some advisers, including Brad Willock, a vice-president with RBC Asset Management, say it is. He expects the flood of vacated houses in the U.S. to peak during the last half of this year. That makes 2009 and 2010 the perfect time to buy.

"The Canadian dollar is expensive, U.S. people are distressed sellers and afraid to buy, while you shouldn`t be," he said.

http://www.canada.com/vancouversun/news/bu...c0-d059056eb86b

 

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Say goodbye to 40-year mortgages

The 40-year mortgage, launched just over two years ago, will probably expire in October. Back in April 2006, Genworth Financial Canada was the first to insure residential mortgages in Ontario that were paid back over 40 years.

Soon, all of Canada`s mortgage insurers will have to underwrite mortgages paid back over 35 years at most. Ottawa is not killing the long-payback loan because it sees a U.S.-style housing bust coming to Canada.

Canadian financial institutions have been conservative in their lending, says a finance department background paper.

http://www.thestar.com/Business/article/458318

 

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What you see is what you get

Every now and then, everyone makes style gaffes – the wrong colour, the wrong size, a cut that used to be very today except that today has become yesterday. A shirt can be exchanged, stuffed in the back of your closet or given away. But a coat of paint, kitchen cupboards, a garage door – these expensive mistakes stare you in the face until you can afford to replace them.

I`ll admit it: I hated the buttercup-yellow paint I chose for my kitchen from the first brushstroke until my husband repainted five years later. That`s why I`ve used Benjamin Moore`s Personal Colour Viewer to preview colours on the computer ever since. It was the first CAD (computer-aided design) website I`d discovered for retail home decor.

Simple click-through steps allow you to paint Benjamin Moore`s delicious colours on sample photos of dozens of interiors and exteriors. Though it`s easy to find a room that resembles yours, the truly particular can ante up US$10 for the ability to import and colour photos their own rooms.

http://www.torontosun.com/ResaleHomesandCo...04/6068576.html

 

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BMO first to end 40-year mortgages

The first of Canada`s big banks has put an end to controversial 40-year mortgages following Ottawa`s announcement this week of tighter rules around home loans.

Bank of Montreal was quick to respond to the changes revealed by the federal government on Wednesday. BMO said late yesterday it is adjusting its mortgage offering immediately, putting a 35-year limit on mortgage amortizations and requiring borrowers to come up with a minimum 5% downpayment.

http://www.nationalpost.com/todays_paper/s....html?id=649281

 

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The Next Normal

Consider, for a moment, your household refrigerator. The outside of the fridge might feel hot, but its interior remains cold.

Increase the scale of that and take it underground. The result is geothermal heating and cooling technology, which works on a similar principal as the household fridge, taking advantage of the fact that the temperature underground -- once you`ve dug deeper than 10 feet or so -- remains constant no matter the time of year. In the wintertime, geothermal grabs the heat that`s underground and brings it to the surface to warm up your house. It then pushes the heat out to cool your home come summer.

http://www.nationalpost.com/todays_paper/s....html?id=649332

 

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Don`t overlook windows-- they`re insulation`s weakest link

Summertime sees many Canadians renovating their homes. Some are considering replacing windows for greater comfort and better appearance. Reducing energy bills has become a major challenge in recent years, which windows have a lot to do with.

Heat losses through the building envelope can occur via conduction, convection and radiation. In all three cases, windows are the weakest link, and, as such, they represent the most important investment in the construction or renovation of any dwelling.

http://www.canada.com/edmontonjournal/news...37-a9f84c0eb3c2

 

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Software tames tangle of paperwork

The Internet is dramatically reducing the time and the amount of paper it takes to complete a real estate transaction, and saving everyone some money in the process, industry officials say. But it is a checkered system.

Vancouver-based OneMove Technologies Inc. has one web-based platform that serves all those involved in a real estate transaction, while Toronto-based Teranet Inc. offers a separate platform for each professional.

OneMove has reduced to just minutes the time it takes to prepare a file for the purchase or sale agreement for a house in British Columbia.

With all the documents to complete a deal in place, "if you wanted to buy my house right now, we could do it in 15 minutes," says chief executive Martin Johnson.

http://www.theglobeandmail.com/servlet/sto...RealEstate/home

 

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As gas prices soar, a subculture of fuel conscious drivers has emerged

TORONTO - Erik Haltrecht has kept track of every fuel purchase he`s made at the pump since 2003. He`s not sure what made him become a "hypermiler" - a person who tries to conserve as much gas as possible - but he has a few ideas.

It could be his career as an electrical engineer, his environmental conscience, or his unwillingness to be dependent on foreign oil.

Or perhaps it`s because he and his father tried to build an electric car when he was 18.

In any event, the retired 63-year-old Thornhill, Ont., resident is part a fuel conservation subculture that is gaining momentum across North America as gas prices continue to soar.

http://www.paherald.sk.ca/index.cfm?sid=152328&sc=4

 

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Oil drop may not be disaster

Oil`s detour to US$136 a barrel last week undoubtedly caused a few sweaty palms across Canada before it assumed its position atop the record books, reaching a new high of US$147.27 on Friday.

But would a major retreat in oil -- say back below US$100 -- spell disaster for the Toronto Stock Exchange and the economy?

Perhaps not. First off, oil`s most recent foray into nosebleed territory hasn`t done much for us lately anyway.

http://www.nationalpost.com/todays_paper/s....html?id=652571

 

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Rate cut unlikely despite weak job numbers

Beset by the threat of inflation on one side, and risk of recession on the other, the Bank of Canada is expected to try and steer a steady course of stable rates this week, and for some time to come.

However, when it adjusts rates next, most analysts expect it will be upwards.

Even Friday`s surprisingly weak employment report of a loss of 5,000 jobs last month was not expected to change the central bank`s thinking, analysts say; as the report also revealed that wages are still rising by twice the rate of inflation, posing the risk of wage-driven inflation on top of that coming from higher world energy and food prices.

http://www.canada.com/calgaryherald/news/c...e9-64a1f1a77ce9

 

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The many duties of a will`s executor

Someone -- either a friend or a relative -- may have decided that you would be the perfect person to list as executor in his or her will.

Hopefully, the person who has seen fit to trust you with carrying out his or her final wishes actually talks to you before you are called on to carry out your executor duties.

That leads to the following question: Just what are the duties of an executor?

http://www.canada.com/reginaleaderpost/new...80-5384872c2ae7

 

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U.S. bailouts seen as benefit to Canuck economy


TORONTO -- Analysts say the Canadian economy is likely to benefit in the long run from the decision by the Federal Reserve and the U.S. Treasury Department to help the mortgage lenders known as Fannie Mae and Freddie Mac. The Federal National Mortgage Association, usually referred to as Fannie Mae, and the Federal Home Mortgage Corporation, nicknamed Freddie Mac, are the two biggest mortgage lenders in the U.S.

http://calsun.canoe.ca/Business/2008/07/15/6159851-sun.html