CA Economic Fundamentals 2008-09

[joeiannuzzi]

What`s Behind the Curtain?
Canada
2008-09
Online Edition


CA Economic Fundamentals 2008-09

 

[joeiannuzzi]

Bank to hold rates steady? Don`t be so sure

The Bank of Canada is not above throwing a curveball, holding its key interest rate steady when economists had been expecting a cut.

So, with the Bank widely expected to hold rates steady Wednesday, will it instead cut them?

Derek Holt and Karen Cordes, economists at Scotia Capital, believe the answer is yes.

http://www.reportonbusiness.com/servlet/st.../TPStory/?query=

 

[joeiannuzzi]

OECD lowers forecasts for Canadian economy

The outlook for growth for Canada`s economy this year has been cut again to less than one per cent and less than half that of the U.S. economy.

The Canadian economy will grow just 0.8 per cent this year, down from the 1.2 per cent projected last spring, the Organization for Economic Co-operation and Development forecast. That`s also less than the downwardly revised 1.1 per cent growth projected only last month by the Finance Department.

http://www.canada.com/ottawacitizen/news/b...76-c315d17ede8b

 

[joeiannuzzi]

Economists Say Bank of Canada Likely on Hold for Remainder of 2008

The Bank of Canada held its key lending rate at 3% Wednesday for a third consecutive announcement date, and several economists now expect the rate to stay where it is for the rest of the year.

The Canadian dollar jumped more than a cent immediately following the Bank of Canada announcement to $0.9417 US.

In its official statement, the central bank offered no clear hint of what its intentions are for the final two rate announcements of 2008, saying only that it "judges that the current level of the target for the overnight rate remains appropriately accommodative" and that it will continue to monitor economic developments both at home and abroad.

http://www.economicnews.ca/cepnews/wire/article/114531

 

[joeiannuzzi]

Agreement will enhance research

Canada and Norway -- two northern countries that produce a lot of energy and hence greenhouse gas emissions -- are joining forces to help reduce the impact of climate change.

Innovation Norway, an agency of the Norwegian government, and the University of Regina signed an agreement Wednesday to further climate-change research, especially in the area of carbon capture and storage (CCS) technology.

http://www.canada.com/reginaleaderpost/new...9f-45e29b84e432

 

[joeiannuzzi]

How to capitalize on capital gains deduction

Elmer and Mary Neufeld built up a successful implement business over 30 years, then sold the assets of the business for almost $1 million. After taxes on the gain, they were left with about $700,000.

Meanwhile, Robert and Roberta Roberts started in 1972 with a great idea, which eventually grew into a successful business. They set it up from the start with a plan for an eventual sale. When they sold the shares of their corporation recently to a competitor for $1 million, they got to keep the entire $1 million after taxes.

http://www.winnipegfreepress.com/subscribe...p-4838974c.html

 

[joeiannuzzi]

Post-secondary students predicting bright future

OTTAWA - The slump in the economy hasn`t dampened the spirits of post-secondary students and recent graduates, most of whom still expect to be as well off -- if not better -- next year than this year and plan to work to pay down their student loans and save for their first home.

Nearly two-thirds say current economic conditions will not hurt, or may even bolster, their job prospects, and almost three-quarters believe they will be better off or the same financially in one year`s time, the survey by pollster Harris/Decima for BMO Bank of Montreal found.

http://www.canada.com/edmontonjournal/news...ea-88e03c058b3b

 

[joeiannuzzi]

Election call could be illegal: experts

EDMONTON - Prime Minister Stephen Harper is set to officially launch an election campaign by failing to respect his own fixed-election date law for voting, federal Liberal Leader Stephane Dion charged Friday.

Dion, whose party has no Alberta MPs, made the comment during a campaign-style visit to the University of Alberta Friday. Harper is expected to visit Gov. Gen. Michaelle Jean early Sunday morning and ask her to dissolve Parliament, kicking off a national campaign leading to a vote Oct. 14.

http://www.canada.com/edmontonjournal/news...3e-e6db4b0f6751

 

[joeiannuzzi]

New reporting rules will boost oilpatch`s reserves

LONDON - A U.S. Securities and Exchange Commission plan to overhaul oil and gas reporting rules will boost oil companies` proven reserves, lift their shares and may even lead to takeovers.

The SEC said in June it wanted to revise the rules, devised in the 1970s, saying they were based on "outdated" thinking.

http://www.canada.com/edmontonjournal/news...60-9ac6e4988b51

 

[joeiannuzzi]

Tories are well placed to win

Looks like Canadians will be voting in the middle of the noisy, fascinating U. S. election. The timing for Canada`s Conservative Party couldn`t be better.

The advantage is because the rumpus south of the border will focus on two main issues: United States` economic problems (articulated by Democrats) and the need for energy security of supply (vocalized by both Democrats and Republicans).

http://www.nationalpost.com/todays_paper/s....html?id=774339

 

[joeiannuzzi]

Average Saudi can`t buy a home

RIYADH - Owning a home has never been more difficult for most Saudis.

Soaring construction costs, land speculation, lack of bank financing and poor government assistance have aggravated a housing deficit, estimated at some one million homes, and driven rents higher.

Realtors say home ownership stands at about 30%, the lowest among the oil-driven economies in the Gulf region. Saudi Arabia has five-to six-million homes.

http://www.nationalpost.com/todays_paper/s....html?id=774387

 

[joeiannuzzi]

Canadians spending a bundle on renovations

The reasons for renovating a home are as varied as the addresses they occupy.

Maybe the family is growing and another bedroom is needed or the kids have left and some of that vacant space can be used as walk-in closets or a larger bedroom with an ensuite.

The likelihood is good that your neighbours have decided to rip up and replace the carpeting, upgrade the home`s only bathroom or add another one, change the kitchen taps and sink or just slap on a fresh coat of paint, says a renovation outlook report by Canada Mortgage and Housing Corp.

http://www.canada.com/ottawacitizen/news/h...8e-948589cdb72c

 

[joeiannuzzi]

Canada votes on October 14

OTTAWA – Canadians will go to the polls Tuesday, Oct. 14, the day after Thanksgiving, to vote for a new federal government. Prime Minister Stephen Harper, who had fixed the next federal election date in law as October 2009, pulled the plug on his own government a year early.

At 20 minutes after 8 a.m., Harper drove in a four-car prime ministerial motorcade across the street from his 24 Sussex Drive residence to Rideau Hall and told Governor-General Michaelle Jean he needed a new mandate.

http://www.thestar.com/News/Canada/article/492313

 

[joeiannuzzi]

Mexico ranked first as retirement mecca

Mexico was named the world`s top retirement destination in an annual look at global retirement trends in International Living Magazine.

The magazine released its 15th annual retirement index and rated Mexico highly for its affordable combination of modern features and old-world charm, health, climate, infrastructure and cost of living.

Mexico is home to close to 700,000 U.S. and Canadian citizens who exchanged urban busyness, frigid temperatures and higher living costs for a more relaxed, warmer and inexpensive lifestyle.

http://www.canada.com/edmontonjournal/news...65-6063f47e0269

 

[joeiannuzzi]

The rising cost of food

Sitting in the basement of Westminster United Church, Susan Fletcher smiles with a hint of embarrassment as she finishes the last of her 100-mile diet potluck meal.

The dinner was organized by the Food for Thought community forum, a group dedicated to educating the public about food in today`s world.

Fletcher admits that while she knows a bit about organics and proper eating, she hasn`t paid as much attention to the rising cost of her food.

http://www.canada.com/reginaleaderpost/new...7a-f78df369d5b8

 

[joeiannuzzi]

Job survey shows bright prospects

OTTAWA -- The Canadian employment outlook remains bright despite the weakening economy, according to a survey that found more employers plan to hire workers than cut staff during the rest of the year.

"Canadian employers expect a positive hiring climate for the October to December period of 2008," Manpower Canada said in releasing results of its quarterly survey of more than 1,700 employers.

http://www.canada.com/saskatoonstarphoenix...81-9e5ae4fe32fb

 

[joeiannuzzi]

Housing overpriced -- except here

EDMONTON - Housing prices in most Canadian cities are overpriced -- with the exception of Edmonton, where home prices are actually eight per cent below where they should be in a balanced market.

That`s the finding of a study, Are Canadian Markets Overpriced? by researchers at the Sauder School of Business at the University of British Columbia released Monday.

http://www.canada.com/edmontonjournal/news...aa-ecd5bd849ab7

 

[joeiannuzzi]

Too much analyst coverage is bad for your wallet

Excessive analyst coverage gives investors a false sense of knowing a lot about a company and could be undermining the future returns on their investments. That`s the conclusion of a new study looking into the influence security analysts have on corporate financing and investment in the United States.

http://www.nationalpost.com/todays_paper/s....html?id=778022

 

[DonCampbell]

Here is more good news on the job front that we are not seeing as headlines (as a matter of fact I saw the story on page 6 of business section... I wonder where it would be if it was bad news?

)

This is RBC`s take on the big jump in job creation in the country:

RBC ECONOMICS RESEARCH - DAILY ECONOMIC UPDATE - September 9, 2008

Canadian housing starts soar; back up above 200,00 mark
Although housing starts were expected to retrace some of the 13.6% drop in July, this morning’s numbers indicated almost a full reversal, with starts rising 13.1% to an annualized 211,000 units. Expectations had been for a more modest 2.4% rise to an annualized 191,000. CMHC, which compiles the data, indicated that the volatility during the last three months largely reflected swings in the multiples component in Ontario.

The urban multiples component surged much more that expected, rising 25.2% to an annualized 114,700 units, which more than reversed the 20.2% drop recorded in July. CMHC indicated that this largely reflected activity in Ontario and likely reflects the impact of large condominium projects getting under way. Urban singles also rose in the month though by a more modest 2.0% to an annualized 71,200 units.

The strength in the multiples component contributed to overall starts in Ontario almost doubling, climbing 81% to an annualized 86,500 from 47,800 in July. This increase was in stark contrast to declines in all other major provinces/regions, led by a 22.5% drop in the Prairie region that has seen the greatest deterioration in affordability in the face of soaring housing prices. Declines were also recorded in the Atlantic region (down 11.5%), Quebec (down 8.7%) and British Columbia (down 8.2%).

The jump in August starts provides some optimism, along with last Friday’s August employment report, that the economic picture may not be as bleak as the GDP numbers implied in the first half of this year when the economy recorded essentially no growth. However, this optimism needs to be tempered with respect to the housing numbers by the fact that the strength in today’s report was narrowly based in the volatile multiples component in Ontario. As well, the earlier deterioration in affordability will likely reassert a downward trend in the starts data going forward for the remainder of this year and through 2009.

Thus, despite the upward surprise in the August starts data, we still expect starts to average a little above 180,000 next year, down from a recent annual peak in 2006 of 229,000. However, the pace of decline is modest compared to the meltdown in the United States where the current level of starts of 965,000 units represents less than one-half of the recent annual peak in 2005 of 2.073 million units. However, to provide some insurance that any slowing in housing markets is measured, the Bank of Canada will likely keep the policy interest rate on hold, maintaining a still-stimulative 3.00% overnight rate through the end of this year.

Paul Ferley, Assistant Chief Economist, RBC Economics Research

 

[joeiannuzzi]

Put cities first, leaders told

Prime Minister Stephen Harper and Liberal Leader Stéphane Dion rolled into Greater Toronto looking to woo urban voters – and got a blast from Mississauga Mayor Hazel McCallion demanding that Ottawa do more to help Canada`s cities.

McCallion laid out a chilly welcome mat for the two leaders, telling a Mississauga Board of Trade luncheon that the cash being spent on the election triggered by the Conservatives – some $297 million – should have been pumped into municipal infrastructure.

http://www.thestar.com/FederalElection/article/496461