CA Economic Fundamentals 2008-10

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Devastated Dion set to quit

OTTAWA–Devastated by the disappointing showing of his party in the election, Stéphane Dion is expected to announce today that he will step aside as Liberal leader.

Unlike the other party leaders, he made no public appearances yesterday, instead huddling with his family and advisers. Party insiders said he would remain as leader until the Liberals choose a successor.

http://www.thestar.com/federalelection/article/518354

 

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House prices could fall by 30%: researchers

House prices in Spain have fallen for a second straight quarter, the government said yesterday, offering more bad news for a real estate sector that fuelled a decade of economic growth but has gone flat.

The housing ministry said prices fell 1.3 per cent in the third quarter of this year from the second quarter. That means home prices are now only 0.4 per cent higher than they were in September of 2007.

http://www.thestar.com/Business/article/518246

 

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Ottawa may make millions on CMHC plan for banks

The federal government stands to make hundreds of millions of dollars off of its new program to buy mortgages from banks.

The government today is launching the first purchase of $5-billion of mortgages from Canada`s banks as part of a program to buy $25-billion of home loans from banks to give them cash to make new loans.

It is taking advantage of its ability to borrow cheaply to buy the mortgages, which will pay a higher rate of interest. The difference will be the government`s profit.

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

 

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Ottawa, EU seek new trade pact

OTTAWA, ROME — Canada and the European Union will move closer to freer trade on services today with a commitment to start formal talks next year on an "economic partnership" designed in part to ease Canadian trade dependence on the beleaguered U.S. economy. The proposal, to be launched today at a Canada-EU summit in Quebec City, would focus on liberalized trade in services rather than manufactured goods and agriculture, and must overcome serious provincial concerns such as government procurement.

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

 

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Housing fraud increasing


TORONTO -- The purchase of a dream home is probably the greatest investment in many people`s lives, but beware -- even with such a major purchase, fraud could be lurking just around the corner, say experts in the real estate industry.

This joy killer comes in many forms -- lawyer negligence, title defects, property encroachments, title fraud such as forged documents and land survey errors. "Nobody is protected from fraud," says Ray Leclair, vice-president of TitlePLUS, a division of LawPRO, the liability insurer for lawyers.

http://calsun.canoe.ca/Business/2008/10/17/7116301-sun.html

 

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Cut interest rates further, economists say

Calls erupted Thursday among economists on Bay Street and elsewhere for further deep interest rate cuts by the Bank of Canada, and more action by the federal government, including its acceptance of the need to go into deficit, to deal with the domestic financial crisis and save an economy which several now warn is going into recession.

http://www.canada.com/vancouversun/news/bu...a8-be05354dd99c

 

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Wind energy projects face a global shortage of turbines

Canada`s booming wind energy sector is becoming a victim of its own success, says a spokesman for the Canadian Wind Energy Association.

A global surge in wind energy development is making it difficult for proponents to secure equipment for new projects, and waiting times for turbine blades and other components are increasing.

"Right now there is a shortage of turbines internationally," David Huggill, western Canada policy manager for the Canadian Wind Energy Association, said in a recent interview.

http://www.canada.com/vancouversun/news/bu...2c-1650e66bf5c8

 

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Ottawa pressed to guarantee borrowing

OTTAWA - Pressure on Ottawa to restore confidence in shattered financial markets mounted yesterday with calls for the government to move "quickly" to guarantee borrowing, and for the Bank of Canada to undertake another round of deep rate cuts.

The advice, mostly from the C. D. Howe Institute think-tank, came on the same day as a series of economists issued grim forecasts. One report, from Warren Justin, Bank of Nova Scotia`s chief economist, warned the Canadian economy would contract in 2009, by 0.2%. Sherry Cooper, chief economist at BMO Capital Markets, said Canada was headed for a recession and that Ottawa "will awaken to the need for deficit spending."

http://www.nationalpost.com/todays_paper/s....html?id=886454

 

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New MLS format makes it easy to see what`s for sale in your neighbourhood

Not yet addicted to the Multiple Listing Service Web site? Here`s a new reason to get on it: There`s a new mapping feature where a little red dot indicates -- just like a push pin on a real map -- the locations of houses for sale. It`ll take a few clicks through some layers to get down to your desired location, but it`s an easy process, and once you`re there, wow!

http://www.nationalpost.com/todays_paper/s....html?id=889569

 

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Interesting times for no-interest lenders

With their ban on charging interest, the Gulf Islamic banks that managed to avoid the types of debt which proved toxic for their conventional counterparts are now praying the global crisis will bypass their property holdings.

Islamic banks, which manage an estimated $1.2 trillion worldwide, do not have the same flexibility as conventional banks in managing balance sheet risks, bankers say. For instance, they cannot reduce exposure to the real estate market by using derivatives.

http://www.canada.com/vancouversun/news/st...87-cdcf0545e829

 

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Rate cuts in the works

With the plunge in energy prices and a rapidly weakening economy, inflation shouldn`t pose any obstacle to further interest-rate cuts this coming week, and for some time to come.

But the Bank of Canada won`t even wait to see the September inflation report, being issued Friday by Statistics Canada, before cutting interest rates further Tuesday, according to analysts who expect a cut of at least a quarter point.

http://www.canada.com/calgaryherald/news/c...96-262d1950a14e

 

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Grand Schemes May Be At Risk

RIYADH - Credit conditions for real estate projects are worsening and the viability of some developments needs to be re-examined, the head of Dubai Islamic Bank said yesterday.

"The days of cheap money are gone. Be prepared to pay more," Khaled al-Kamda said at a real estate conference.

DIB is one of the Gulf`s biggest lenders and a key player in the massive developments in the United Arab Emirates.

http://www.nationalpost.com/todays_paper/s....html?id=892322

 

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Hit by credit crunch, small firms remain resilient

OTTAWA - The credit crunch is hitting small- and medium-sized firms as hard -- if not harder -- than large ones, and they will not escape the slump in the Canadian economy, says CIBC economist Benjamin Tal.

But they have held up better than the economy and will be the first to rebound once the recovery gets underway next year, Tal says.

His comments follow the release this month of survey results by the Canadian Federation of Independent Business suggesting the recent financial turmoil has resulted in a plunge in confidence among small-business owners to lower than in the month after the 9/11 terrorist attacks.

http://www.canada.com/edmontonjournal/news...9a-99399da6cc14

 

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Bank trims rate quarter point

OTTAWA–The Bank of Canada trimmed its trendsetting interest rate another quarter-point Tuesday, saying Canada needs the stimulus to ward off the headwinds from a United States already in recession and a global economy heading there.

The move, following a half-point reduction two weeks ago, drops the bank`s overnight rate to 2.25 per cent, just slightly above the two per cent level it reached four years ago.

http://www.thestar.com/business/article/521038

 

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`I failed,` Dion says, as race begins

OTTAWA - Admitting "I failed" in the election campaign, Stephane Dion announced Monday he will resign when a new federal Liberal party leader is chosen in a few months.

The Liberal party`s national executive is poised to officially call the leadership race on Saturday Nov. 8, naming a voting date within six months, potentially at a convention in Vancouver in early May.

The vote may be moved up by a month or two and a more central location chosen.

http://www.canada.com/windsorstar/news/sto...d7-ec93340c01fb

 

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Tough year coming, but TD Bank says economic tide will turn

The next 12 months "are likely to prove difficult for many firms,`` TD Bank says in a report that foresees little or no economic growth until late next year.

"More challenging economic times`` will affect the whole country, with Central Canada hit hardest while the economic boom in the West "is rapidly drawing to a close,`` says yesterday`s study, focusing on the outlook for small business.

It notes that a global "mild recession`` caused by the deflation of a massive credit bubble bodes badly for exporters.

http://news.therecord.com/Business/article/431953

 

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It`s buyer beware of the paperwork

It`s a buyer`s market in housing right now, but with complications.

Blame the global financial crisis. It chewed up your investments in the stock market, and now it`s an irritant if you`re a home buyer who wants to capitalize on falling sales and prices in some cities.

High mortgage rates are a major problem, but there`s more. Mortgage brokers say lenders are getting tougher about the documentation they want to see from borrowers, and they warn that appraisals can cause difficulties for buyers as well.

http://www.theglobeandmail.com/servlet/sto...Story/TPComment

 

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One in 10 Canadians victims of identity theft

More than one in 10 Canadians who shop online have fallen victim to identity theft, with Ontarians hit the hardest, a survey released Tuesday suggests.

The survey, conducted by Ipsos Reid on behalf of PayPal Canada, found that 12 per cent of all online shoppers polled in Ontario claimed they had been victims of identity theft. Albertans were second hardest-hit, with nine per cent reporting their identities stolen.

http://www.canada.com/reginaleaderpost/new...21-8f1559774955

 

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`We are among the worst water-wasters in the world`

Shortly after being appointed a senior adviser to the United Nations yesterday, Canadian activist Maude Barlow attacked the Harper government for refusing to enact legislation to protect Canada`s water.

"This government has a `hear no evil, see no evil, speak no evil` policy towards water," said Ms. Barlow, chairwoman of the Council of Canadians.

http://www.canada.com/ottawacitizen/news/s...2e-b4df2366c07a

 

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Big banks slow to pass on latest rate cut

Interest rate cuts alone will not be enough to keep the Canadian economy out of recession, analysts warned yesterday following a quarter-point cut in rates by the Bank of Canada and a strong hint that there are more cuts to come.

But Canada`s commercial banks, despite being offered a $25-billion cash infusion from the federal government earlier this month in the form of mortgage buyouts, again showed a reluctance to pass on the rate cut by the Bank of Canada to consumers and businesses, even though the reduction was less than expected.

http://www.canada.com/ottawacitizen/news/b...85-3986b392f94f