February 2015 Canadian Economic Fundamentals
- Thread starter Ally
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Millennials are beginning
to enter the home-buying market. The shift has just begun
Call them the prodigal millennials: Statistical measures and anecdotal reports suggest that young couples and singles in their late 20s and early 30s have begun making a belated entry into the home-buying market, pushed by mortgage rates in the mid-3% range, government efforts to ease credit requirements and deep frustrations at having to pay rising rents without creating equity.
Read the full article here.
to enter the home-buying market. The shift has just begun
Call them the prodigal millennials: Statistical measures and anecdotal reports suggest that young couples and singles in their late 20s and early 30s have begun making a belated entry into the home-buying market, pushed by mortgage rates in the mid-3% range, government efforts to ease credit requirements and deep frustrations at having to pay rising rents without creating equity.
Read the full article here.
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Starbucks real estate
choice an art not a science
What fuels gentrification? The answer is the same thing that fuels the rest of us: coffee.
But not just any old cup o’ joe.
Starbucks, the iconic coffee roaster and retailer, has grown into a $15 billion company, with more than 19,000 locations in more than 60 countries. You can spot that familiar green-and-white logo from Saudi Arabia to Switzerland, in a Dubai shopping mall, or on a Carnival Cruise ship. Where the Berlin Wall once stood, there’s a shiny new Starbucks instead. Conveniently, one of our desks has a view of the original Starbucks store in Pike Place Market.
Read the full article here.
choice an art not a science
What fuels gentrification? The answer is the same thing that fuels the rest of us: coffee.
But not just any old cup o’ joe.
Starbucks, the iconic coffee roaster and retailer, has grown into a $15 billion company, with more than 19,000 locations in more than 60 countries. You can spot that familiar green-and-white logo from Saudi Arabia to Switzerland, in a Dubai shopping mall, or on a Carnival Cruise ship. Where the Berlin Wall once stood, there’s a shiny new Starbucks instead. Conveniently, one of our desks has a view of the original Starbucks store in Pike Place Market.
Read the full article here.
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Here's What The Oil Price
Drop Means For The World's Big Economies <Infographic>
West Texas Intermediate crude oil has been falling to new lows.
“The recent collapse of oil prices has arguably been the most startling and far-reaching market development since the Global Financial Crisis,” wrote Goldman Sachs' Allison Nathan in a research note this week.
Goldman included this map with a wealth of data about the biggest oil producers and guzzlers. Moreover, it contains some clues about what low oil prices mean for their economies, and the damage that's already been done.
Read the full article here.
Drop Means For The World's Big Economies <Infographic>
West Texas Intermediate crude oil has been falling to new lows.
“The recent collapse of oil prices has arguably been the most startling and far-reaching market development since the Global Financial Crisis,” wrote Goldman Sachs' Allison Nathan in a research note this week.
Goldman included this map with a wealth of data about the biggest oil producers and guzzlers. Moreover, it contains some clues about what low oil prices mean for their economies, and the damage that's already been done.
Read the full article here.
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When It Comes To The
Emerging Markets And The Oil Collapse, There Are More Winners Than Losers
What does the rapid decline in oil prices mean for emerging markets?
Just like anywhere else, it depends on how much a particular country depends on oil for its livelihood. Net importers are expected to see an uptick in economic growth as lower crude prices stimulate consumer spending, reduce input and transport costs for industrial companies, and can allow governments more fiscal flexibility to pursue structural reforms. Net exporters, on the other hand, are in for some tough times.
Read the full article here.
Emerging Markets And The Oil Collapse, There Are More Winners Than Losers
What does the rapid decline in oil prices mean for emerging markets?
Just like anywhere else, it depends on how much a particular country depends on oil for its livelihood. Net importers are expected to see an uptick in economic growth as lower crude prices stimulate consumer spending, reduce input and transport costs for industrial companies, and can allow governments more fiscal flexibility to pursue structural reforms. Net exporters, on the other hand, are in for some tough times.
Read the full article here.
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Grande Prairie forestry sector remains strong
As the price of oil continues to decline, stooping to $44.56 Thursday afternoon, so too are the hopes for a strong economy in 2015.
Paul Whittaker, president and CEO of the Alberta Forest Products Association (AFPA) said while the oil and gas sector is a strong contributor to the provincial and national economy, the forestry sector can not be discounted.
Read the full article here.
As the price of oil continues to decline, stooping to $44.56 Thursday afternoon, so too are the hopes for a strong economy in 2015.
Paul Whittaker, president and CEO of the Alberta Forest Products Association (AFPA) said while the oil and gas sector is a strong contributor to the provincial and national economy, the forestry sector can not be discounted.
Read the full article here.
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Sagging GDP spurs talk of deeper cuts from Bank of Canada
The Canadian economy’s disappointing step backward in November has strengthened the case for the Bank of Canada to cut interest rates further to stanch the bleeding.
Statistics Canada reported Friday that gross domestic product shrank by a seasonally adjusted 0.2 per cent in the month versus October, the weakest performance in nearly a year. Year-over-year growth stood at 1.9 per cent, the slowest since last March, and down significantly from October’s 2.3 per cent.
Read the full article here.
The Canadian economy’s disappointing step backward in November has strengthened the case for the Bank of Canada to cut interest rates further to stanch the bleeding.
Statistics Canada reported Friday that gross domestic product shrank by a seasonally adjusted 0.2 per cent in the month versus October, the weakest performance in nearly a year. Year-over-year growth stood at 1.9 per cent, the slowest since last March, and down significantly from October’s 2.3 per cent.
Read the full article here.
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NWT sees opportunity for Arctic Ocean oil pipeline
OTTAWA — The premier of the Northwest Territories says it’s time to start laying the groundwork for a potential oil pipeline to the Arctic Ocean, notwithstanding currently depressed global energy prices.
Bob McLeod announced to an Ottawa reception Thursday evening that he’s launching a year-long feasibility study that will examine an energy, communications and transportation corridor up the Mackenzie Valley.
Read the full article here.
OTTAWA — The premier of the Northwest Territories says it’s time to start laying the groundwork for a potential oil pipeline to the Arctic Ocean, notwithstanding currently depressed global energy prices.
Bob McLeod announced to an Ottawa reception Thursday evening that he’s launching a year-long feasibility study that will examine an energy, communications and transportation corridor up the Mackenzie Valley.
Read the full article here.
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Housing industry fears first-time homebuyers are being forced out of the market
Despite soaring house prices, reports of crushing student debt and, it seems, more 20- and 30-somethings than ever living in their parents’ basements, Wakim has, at 25, already bought her first home. A new home. And she’s the sole owner.
Wakim, a trade commissioner with the federal government, isn’t overly worried about making the payments on her $350,000 (with upgrades) Tartan townhome in Havencrest when she takes possession this summer.
Read the full article here.
Despite soaring house prices, reports of crushing student debt and, it seems, more 20- and 30-somethings than ever living in their parents’ basements, Wakim has, at 25, already bought her first home. A new home. And she’s the sole owner.
Wakim, a trade commissioner with the federal government, isn’t overly worried about making the payments on her $350,000 (with upgrades) Tartan townhome in Havencrest when she takes possession this summer.
Read the full article here.
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Commodity slump could finally bring balance to Canada's economy
Since last fall, oil prices have plunged 50 per cent and nervousness is running high about a slowing Canadian economy. Lower oil prices will unambiguously hurt growth and the latest data on GDP point in that direction. About one-quarter of Canada’s exports and private investment (excluding housing) are tied to the energy sector that, itself, accounts for about 10 per cent of GDP. Weakness in the oil and gas sector could also spill over to the wider economy. In response, the Bank of Canada surprised markets on January 21 and cut its policy rate – which had been on hold at 1 per cent since September, 2010. The currency fell and interest rates eased. The loonie currently is near a 6-year low against the U.S. dollar. So is the economy in trouble?
Read the full article here.
Since last fall, oil prices have plunged 50 per cent and nervousness is running high about a slowing Canadian economy. Lower oil prices will unambiguously hurt growth and the latest data on GDP point in that direction. About one-quarter of Canada’s exports and private investment (excluding housing) are tied to the energy sector that, itself, accounts for about 10 per cent of GDP. Weakness in the oil and gas sector could also spill over to the wider economy. In response, the Bank of Canada surprised markets on January 21 and cut its policy rate – which had been on hold at 1 per cent since September, 2010. The currency fell and interest rates eased. The loonie currently is near a 6-year low against the U.S. dollar. So is the economy in trouble?
Read the full article here.
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Even if you borrow to carve out financial space, you can get ahead financially
When Don Campbell married in 1987, he took a look at his new home’s basement and saw a whole lot more than concrete and pipes.
He saw opportunity.
Building a rental unit in the basement just made sense for the Vancouver-based senior analyst of the Real Estate Investment Network and author of Real Estate Investing in Canada. With the rental income taking a bite out of the couple’s mortgage, that home suddenly became an affordable option.
Read the full article here.
When Don Campbell married in 1987, he took a look at his new home’s basement and saw a whole lot more than concrete and pipes.
He saw opportunity.
Building a rental unit in the basement just made sense for the Vancouver-based senior analyst of the Real Estate Investment Network and author of Real Estate Investing in Canada. With the rental income taking a bite out of the couple’s mortgage, that home suddenly became an affordable option.
Read the full article here.
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OPEC sees oil prices exploding to $200 a barrel
Right now the oil market is totally focused on finding a bottom for oil prices. However, according to OPEC's Secretary-General Abdulla al-Badri we've already hit bottom. Not only that, but he sees a real possibility that oil prices could explode higher to upwards of $200 per barrel in the future. He's far from the only one that sees a return of triple-digit oil prices.
Finding a bottom
According to the Secretary-General, speaking in London on Jan. 26, the oil market doesn't need to look for oil prices to bottom as the market has already bottomed. Instead, he offered quite bullish comments by saying, "Now the prices are around $45-$55, and I think maybe they [have] reached the bottom and we [will] see some rebound very soon." Now, normally that type of remark would be just another layer of noise, but this is coming from OPEC's Secretary-General so it comes with a lot of weight behind it.
Read the full article here.
Right now the oil market is totally focused on finding a bottom for oil prices. However, according to OPEC's Secretary-General Abdulla al-Badri we've already hit bottom. Not only that, but he sees a real possibility that oil prices could explode higher to upwards of $200 per barrel in the future. He's far from the only one that sees a return of triple-digit oil prices.
Finding a bottom
According to the Secretary-General, speaking in London on Jan. 26, the oil market doesn't need to look for oil prices to bottom as the market has already bottomed. Instead, he offered quite bullish comments by saying, "Now the prices are around $45-$55, and I think maybe they [have] reached the bottom and we [will] see some rebound very soon." Now, normally that type of remark would be just another layer of noise, but this is coming from OPEC's Secretary-General so it comes with a lot of weight behind it.
Read the full article here.
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IMF says Canada's housing market overvalued by as much as 20 per cent
OTTAWA (Reuters) - Canada's economy will keep growing this year, despite a sharp drop in oil prices, as a rise in exports to a recovering U.S. market offsets declines in domestic consumption and investment, the International Monetary Fund (IMF) said on Friday.
While the economy has not yet shifted to broad-based recovery, growth is expected to become more balanced this year as the housing market cools, the IMF said.
Read the full article here.
OTTAWA (Reuters) - Canada's economy will keep growing this year, despite a sharp drop in oil prices, as a rise in exports to a recovering U.S. market offsets declines in domestic consumption and investment, the International Monetary Fund (IMF) said on Friday.
While the economy has not yet shifted to broad-based recovery, growth is expected to become more balanced this year as the housing market cools, the IMF said.
Read the full article here.
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Interesting quote:
Edmonton's Housing market no longer tied to oil and gas industry, realtors say
Edmonton realtors expect the city’s bullish housing market to continue into 2015 despite dropping oil prices.
Low unemployment and a strong economy will push the values of homes up by four per cent with the average residential price climbing from $374,000 in 2014 to $389,000 in 2015.
Read the full article here.
Edmonton's Housing market no longer tied to oil and gas industry, realtors say
Edmonton realtors expect the city’s bullish housing market to continue into 2015 despite dropping oil prices.
Low unemployment and a strong economy will push the values of homes up by four per cent with the average residential price climbing from $374,000 in 2014 to $389,000 in 2015.
Read the full article here.
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Bloomberg: No Keystone, No
Problem for Canadian Oil Seeking Ports
(Bloomberg) -- While the debate intensifies over whether TransCanada Corp.’s Keystone XL pipeline should be approved, traders are quietly setting up alternative routes to ship Canadian oil from U.S. ports.
At least five rail-to-marine projects have been proposed in the state of Washington that would allow the export or domestic shipment of more than 500,000 barrels a day of oil. A terminal in Oregon is operational already and is being upgraded to handle vessels that carry more than 300,000 barrels of crude.
Read the full article here.
Problem for Canadian Oil Seeking Ports
(Bloomberg) -- While the debate intensifies over whether TransCanada Corp.’s Keystone XL pipeline should be approved, traders are quietly setting up alternative routes to ship Canadian oil from U.S. ports.
At least five rail-to-marine projects have been proposed in the state of Washington that would allow the export or domestic shipment of more than 500,000 barrels a day of oil. A terminal in Oregon is operational already and is being upgraded to handle vessels that carry more than 300,000 barrels of crude.
Read the full article here.
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If you are planning a US
Vacation - better get on it! Loonie Seen Reaching Record Low 60 U.S. Cents
After Oil
(Bloomberg) -- The Canadian dollar will sink as low as 69 U.S. cents with little to drive the economy after oil’s collapse, according to Macquarie Group Ltd, joining a growing list of forecasters lowering their projections.
Macquarie forecast Monday the currency would reach a bottom near 69 U.S. cents. Royal Bank of Canada and Credit Suisse Group AG last week lowered their forecasts to 75 cents. HSBC Holdings Plc is calling for a 74 cent Canadian dollar. Morgan Stanley sees the loonie dropping to 71 U.S. cents by next year.
Read the full article here.
Vacation - better get on it! Loonie Seen Reaching Record Low 60 U.S. Cents
After Oil
(Bloomberg) -- The Canadian dollar will sink as low as 69 U.S. cents with little to drive the economy after oil’s collapse, according to Macquarie Group Ltd, joining a growing list of forecasters lowering their projections.
Macquarie forecast Monday the currency would reach a bottom near 69 U.S. cents. Royal Bank of Canada and Credit Suisse Group AG last week lowered their forecasts to 75 cents. HSBC Holdings Plc is calling for a 74 cent Canadian dollar. Morgan Stanley sees the loonie dropping to 71 U.S. cents by next year.
Read the full article here.
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For all you #Oil Watchers remember this also impacts: Oil Traders Look
for a Bonanza Like 2009
The sudden collapse in oil prices has left the world awash in cheap crude. Analysts estimate that global production of excess oil—oil for which there is no immediate demand—is somewhere between 1 million and 2 million barrels a day. Oil traders are scrambling to find a place to store it all, leasing tankers at the fastest pace since the recession. With any luck, they’ll replicate a strategy that won them big profits in 2009, the last time oil was this inexpensive.
In 2008 oil prices crashed from $146 a barrel in July to $36 in December. Traders kept buying crude, but rather than sell, they sat on it and waited for prices to rebound. By the end of 2009, prices had almost doubled from their lows of a year earlier, and trading companies booked fat profits as they unloaded their stored oil. Gunvor, the world’s fifth-largest independent oil trader, made a record profit of $621 million that year, according to a company bond prospectus.
Read the full article here.
for a Bonanza Like 2009
The sudden collapse in oil prices has left the world awash in cheap crude. Analysts estimate that global production of excess oil—oil for which there is no immediate demand—is somewhere between 1 million and 2 million barrels a day. Oil traders are scrambling to find a place to store it all, leasing tankers at the fastest pace since the recession. With any luck, they’ll replicate a strategy that won them big profits in 2009, the last time oil was this inexpensive.
In 2008 oil prices crashed from $146 a barrel in July to $36 in December. Traders kept buying crude, but rather than sell, they sat on it and waited for prices to rebound. By the end of 2009, prices had almost doubled from their lows of a year earlier, and trading companies booked fat profits as they unloaded their stored oil. Gunvor, the world’s fifth-largest independent oil trader, made a record profit of $621 million that year, according to a company bond prospectus.
Read the full article here.
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Bank of Canada rate cut good news for REITs and utility stocks
Real estate investment trusts and utility stocks could continue to be winners this year as the Bank of Canada eyes further interest rate cuts.
Both spaces are already outperforming the S&P/TSX composite index for the year as lower bond yields have driven more investors to the typically defensive sectors. REITs are up 9.23% since the start of the year, while utilities have gained 5.14%. The TSX composite, by comparison, is up 2.47%.
Read the full article here.
Real estate investment trusts and utility stocks could continue to be winners this year as the Bank of Canada eyes further interest rate cuts.
Both spaces are already outperforming the S&P/TSX composite index for the year as lower bond yields have driven more investors to the typically defensive sectors. REITs are up 9.23% since the start of the year, while utilities have gained 5.14%. The TSX composite, by comparison, is up 2.47%.
Read the full article here.
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How oil terminals popping up in obscure US towns could be Canada’s ticket to becoming a global energy broker
While the debate intensifies over whether TransCanada Corp.’s Keystone XL pipeline should be approved, traders are quietly setting up alternative routes to ship Canadian oil from U.S. ports.
At least five rail-to-marine projects have been proposed in the state of Washington that would allow the export or domestic shipment of more than 500,000 barrels a day of oil. A terminal in Oregon is operational already and is being upgraded to handle vessels that carry more than 300,000 barrels of crude.
Read the full article here.
While the debate intensifies over whether TransCanada Corp.’s Keystone XL pipeline should be approved, traders are quietly setting up alternative routes to ship Canadian oil from U.S. ports.
At least five rail-to-marine projects have been proposed in the state of Washington that would allow the export or domestic shipment of more than 500,000 barrels a day of oil. A terminal in Oregon is operational already and is being upgraded to handle vessels that carry more than 300,000 barrels of crude.
Read the full article here.