March 2011 Canadian Economic Fundamentals

[Ally]

Transit problems across Canada prompt calls for politicians to address issue




Commute times in Canadian cities are no longer just a source of rush-hour irritation, but a national liability affecting the economic performance of our urban centres and requiring immediate intervention from Ottawa.




A new ranking of international cities by the Toronto Board of Trade saw major Canadian municipalities fall dramatically behind in the realm of transportation and transit, prompting big-city mayors and transit experts to call on all federal parties to address the issue in the election, or suffer the consequences.





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[Ally]

Renowned economist's outlook darkens on global food prospects




Put your money on food, not fighting.




Investments in ways to boost agriculture productivity in the poorest areas of the world will go further towards long-term global security than the millions of dollars a year spent on intensive military operations in Afghanistan and Iraq, says Jeffrey Sachs, the renowned Columbia University economist and special adviser to United Nations` Secretary General Ban Ki-moon.





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[Ally]

Tax breaks aim to encourage investment, hiring



OTTAWA ` The 2011 federal budget handed manufacturers a two-year extension on a tax measure aimed at encouraging new investment, while offering small businesses a one-year break on payroll levies that`s meant to encourage hiring.





Further, Finance Minister Jim Flaherty signalled Tuesday his intent to follow through with cuts to corporate tax rates, to 15% by 2012. His main political opponent, the Liberal Party, has vowed to raise corporate tax rates back to 2010 levels to help pay off debt and fund other programs. `We will help businesses to create jobs. We will not raise taxes on growth,` Mr. Flaherty said in his speech outlining the budget`s key theme.





However, the budget wasn`t all good news for corporate Canada. The government intends to crack down on how much income partnerships can defer before paying tax ` an initiative that`s expected to cost Canadian businesses roughly $3-billion by 2015.





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[Ally]

OSFI warns of next global crisis





CALGARY, Alberta - Canada's banking watchdog warned on Sunday that the next global financial crisis may not be far off and that now is the time for regulators to get tough on the financial industry.




"I think we have seen this movie before, but the amazing thing is we continue to expect a different ending," said Ted Price, assistant superintendent of the Office of the Superintendent of Financial Institutions (OSFI), according to the prepared text of a speech in Calgary, Alberta.




The world's banks are now entering a "dangerous" phase from a regulator's point of view, where profits are strong and they are increasingly willing to invest in risky assets that offer high returns, he said.





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[Ally]

The Rankings: Top 20 'Overall' Cities




The Toronto Board of Trade's Scorecard on Prosperity ranks 24 cities based on economy and labour attractiveness



Read the full article here.

 

[Ally]

Canadian consumer confidence tumbles in March: Conference Board



OTTAWA ` The mood of Canadian consumers darkened this month amid record-high oil prices and political upheaval in the Middle East and North Africa, the Conference Board of Canada said Tuesday.





The Ottawa-based think-tank said its confidence index dropped sharply in March, falling to 83.7 from 89.3 the previous month.





The reading is lower than the 92.5 recorded in March 2010, but still higher than the 78.1 level of six months ago, the board said.





"In the context of global events, particularly the volatility in oil prices as a result of unrest in the Middle East and North Africa, the Conference Board is not surprised that Canadian consumer confidence fell in March."





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[Ally]

Tenants snap up office space in first quarter




Vacancy rates improved in Canada`s office and industrial markets in the first quarter of the year, according to CB Richard Ellis.




The national vacancy rate for office space dropped to 9.3 per cent, compared with 10.1 per cent a year earlier. Tenants leased 704,431 square feet of space, compared with 441,310 last year.



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[Ally]

Honda cuts North American output






Honda Motor Co. Ltd. (HMC-N38.100.721.93%) is cutting production of vehicles indefinitely in Alliston, Ont., and its other North American plants ` the first major hit for the auto industry in Canada and the United States from the crisis in Japan.




Starting Wednesday, output at Alliston will be cut to 300 cars and sport utility vehicles a day from more than 700 as the auto maker grapples with parts shortages.





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[Ally]

Tech labour crunch looming in Canada




TORONTO. Canada is facing a "systemic" technology labour shortage, a new study has found.




Companies will be looking to fill 106,000 new positions in the information and communications technology (ICT) sector in the next five years, according to the study released Tuesday by the Information and Communications Technology Council (ICTC). That would be good news for a recovering economy, were it not for a severe lack of qualified candidates to fill those positions.




As the sector returns to employment levels unseen since the tech boom of the early 2000s, the study said companies will be looking for applicants who are more than just "code-monkeys" but who also have a degree of business acumen and a diversity of skills. Women are also still severely underrepresented in the industry.





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[Ally]

Home prices rise more than expected




OTTAWA ` Prices for Canadian homes rose more than expected in January, according to the Teranet-National Bank Composite House Price Index released Wednesday.




The index showed prices were up 0.4% during the month, compared to a 0.3% increase in December.




Economists had expected the index to rise 0.1% in January.





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