May 2012 Canadian Economic Fundamentals

[Ally]

Why China's slowdown is 'scarily reminiscent' of 2007




That soft landing for the Chinese economy that everyone keeps talking about? It`s turning into a bumpy one.




The latest round of economic data out this week shows that while inflation slowed last month, to 3.4 per cent year on year, so did everything else. Retail sales are softening, industrial output is slowing and the country`s trade surplus has widened after both imports and exports came in lower than expected, the result of a collision of the euro zone crisis weakening demand for Chinese exports, and tough property market measures at home eroding domestic confidence.





Read the full article here.

 

[Ally]

Tackling our skills deficit a top priority





The shortage of skilled labour is reaching critical proportions and is hindering Canada's competitiveness on the global stage, said Perrin Beatty, president of the Canadian Chamber of Commerce.




"The No. 1 barrier to competitiveness, the skills issue - Canada's growing human resource crisis - is the Canadian Chamber's highest priority for 2012," said Beatty, who was speaking at the 2012 Conference on Business put on by the Saskatchewan Chamber of Commerce.




Read the full article here.

 

[Ally]

Economic uncertainty clouds possible rate hike




Economic forecasting can be a maddening business.




Late last week, the Bank of Canada`s recent hints that the economy may be getting strong enough to absorb an interest-rate hike or two this year were looking plausible.




Despite a stubbornly uncertain global landscape, Canada managed to post the best two-month employment gain in three decades during March and April ` with many of the gains coming in the form of full-time, private-sector jobs. And in April, builders broke ground on apartment and condominium projects at the second-fastest pace in 34 years, albeit largely in Toronto.





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[Ally]

BMO hiring intentions study: British Columbia and Manitoba employers lead the way





With new job numbers released today by Statistics Canada showing that Canadian employment rose by 58,200 jobs in April, BMO Bank of Montreal released their new BMO Hiring Intentions Survey, which shows a spilt between Canadian businesses on their plans to add new employees in 2012.






According to the report, 55 per cent of business owners in BC and Manitoba intend to hire new employees this year. In addition, for those companies that do say they will be hiring in 2012, overall they plan to do so at a greater rate than last year.





Read the full article here.

 

[Ally]

Flaherty on rates: How low can't you go?





How low is too low when it comes to mortgage rates?



Apparently the answer to that question is 2.99% on a 5-year fixed.




Finance Minister Jim Flaherty wasn`t too happy that banks broke the 3% barrier on 4- and 5-year rates back in January and March. He implied that those rate promotions were essentially irresponsible with Ottawa trying to temper credit growth.





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[Ally]

Jobs market strengthens, but who's losing? Your kids




Canada`s jobs market has created 213,800 positions over the past year, with virtually all of the growth in full-time positions and none in part-time work.




The aggregate numbers mask deep splits in the labour market, though, on where we`re finding work, who`s getting it and what sectors are seeing all the growth.




The variations have myriad consequences for Canadian society. Regional divisions eventually will spark greater labour mobility. Still-high youth unemployment has a scarring effect that will last for years. And the natural resources boom may lead some people to consider a career change.




Here`s a better breakdown of what`s happened in





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[Ally]

Is Canada grappling with Dutch disease?




Conventional wisdom says that Canada is fighting a crippling bout of Dutch Disease.




Canada`s petro-infused currency, which has risen 55 per cent against the U.S. dollar in the past decade, continues to linger around parity with the greenback. That is clobbering exports, making Canadian auto plants uncompetitive and hammering the manufacturing heartland of Ontario and Quebec ` or so the thinking goes.





Read the full article here.

 

[Ally]

Canada ready to open its doors to more immigrants




Canada is ready to open its doors to expanded immigration, but only if the immigrants already here do better.




The government is under huge pressure to increase immigration levels, according to Citizenship and Immigration Minister Jason Kenney. It`s facing demands for more newcomers from business leaders and nearly every provincial premier. But before Mr. Kenney will comply, he says he wants to see more immigrants working and earning at rates close to those of Canadian-born people. That also happens to be the focus of a series of reforms he launched this spring, designed to improve economic outcomes for immigrants.





Read the full article here.

 

[Ally]

Eurozone at turning points, says Flaherty, and Canada exposed to aftershock





OTTAWA - Finance Minister Jim Flaherty says the eurozone is reaching a turning point but that Greek's departure is not yet inevitable.




Flaherty says he's concerned failure to resolve the issue could have serious rebound effects on the Canadian banking sector and economy.




Flaherty told the Senate Finance committee he's been urging the richer European countries to overwhelm the debt crisis with a massive bailout for years, but the no such package has materialized.






Read the full article here.

 

[Ally]

Enbridge firms up pipeline reversal plan






Enbridge Inc. (ENB-T40.060.010.02%), in the race to move oil from western Canada and the United States to refineries in the east, has solidified plans to reverse the flow of a key oil pipeline, a plan the energy industry had been pushing for to alleviate the crude glut in the Midwest.




The company on Wednesday earmarked $2.6-billion to its broad effort to move oil to points east for better access to refineries. Most importantly, it said it has secured enough commercial support to reverse Line 9, which will give refineries in Quebec access to crude produced in Alberta, as well as the Bakken formation in North Dakota. Enbridge expects oil to flow eastward in the first quarter of 2014 on Line 9.





Read the full article here.

 

[Ally]

Demand for high-priced homes up across Canada



Sales of luxury homes have started out at a record-setting pace for 2012, up almost 50 per cent over the first quarter of last year, according to a new ReMax report.



While the luxury market only accounts for about 2 per cent of the total GTA housing market, the unexpectedly strong demand, coupled with a `severe shortage` of prime properties in higher-end neighbourhoods, is only further fuelling bidding wars and price escalations, it says.





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[Ally]

Average home sales up 11.5% from a year ago



TORONTO ` Home sales in April gained 0.8 per cent compared with March, boosted by strength in Toronto and Calgary, the Canadian Real Estate Association said Tuesday.





On a year-over-year basis, the association said there were 49,480 homes sold in April, up 11.5 per cent from 44,370 a year ago when sales slowed following a tightening of mortgage lending rules that came into effect in March 2011.





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[Ally]

Things to watch for when flipping a condo




Many buyers of new GTA condos looking to cash in on the hot real estate market by flipping their units before the buildings close face an unusual legal situation ` the standard purchase and sale contracts don`t apply.




The final closing on the building may come months after people move in. In the meantime, you`re trying to sell something that you don`t legally own.





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[Ally]

Canadian factories bounce back





OTTAWA - Sales by Canada's manufacturers blew past expectations in March, rising 1.9 percent from February, as shipments of petroleum and coal products jumped to their highest level in more than 3-1/2 years, Statistics Canada said on Wednesday.







Analysts surveyed by Reuters had forecast, on average, a 0.3 percent increase in sales at the factory gate in the month.






Read the full article here.

 

[Ally]

REITs without the volatility




There`s something unsettlingly ephemeral about owning stocks and bonds in this era of default and constant volatility, which explains why many investors are thinking of turning to physical assets such as real estate.




But the problem with owning tangible real estate is all the work involved in maintaining it. When you`re a landlord, every leaky faucet, broken window and dirty swimming pool is your problem.




For the less hands-on investor, a product growing in popularity is the real estate limited partnership or RELP.





Read the full artaicle here.

 

[Ally]

Keep the oilsands wealth at home





Earlier this year, federal Natural Resources Minister Joe Oliver branded Northern Gateway pipe-line opponents "foreign-funded radicals." According to Environment Minister Peter Kent, they're also "money launderers."




Recently Ontario Premier Dalton McGuinty raised a yellow flag on Canada's appreciating dollar. He was quickly admonished by Alberta Premier Alison Redford as being "simplistic."






Read the full article here.

 

[Ally]

Redford calls Mulcair "divisive and ill-informed"




Premier Alison Redford used Facebook and Twitter on Wednesday to call federal NDP Leader Tom Mulcair "divisive and ill-informed" for his recent comments about the Alberta oilsands.




Mulcair said last week that the oilsands have created a high Canadian dollar, which in turn has hurt the country's manufacturing sector, largely based in central Canada. He went even further this week calling Redford, Saskatchewan Premier Brad Wall and B.C. Premier Christy Clark "messengers" of Prime Minister Stephen Harper for criticizing him.





Read the full article here.

 

[Ally]

Canada's economy shows surprising resilience




OTTAWA ` Canada's economy is showing surprising signs of resilience, but the outlook for sustained growth is still clouded by events outside our borders.







The latest evidence that a recovery could indeed be gathering strength came Wednesday from the manufacturing sector. Shipments of factory goods increased far more than expected in March, bouncing back from an equally surprising contraction in the previous month.





Read the full article here.

 

[Ally]

Seaway pipeline reversal may help ease Canada's oil pain




CALGARY ` Canada`s oil price disadvantage, estimated to deprive the country of as much as $50-million a day, is about to ease with the reversal of an old pipeline in the Southern United States.




The market has been waiting for years for the first significant flow of crude to the Gulf Coast directly from Cushing and there were some early signs Friday that the discount will narrow dramatically in anticipation of the reversal of the 800-kilometre Seaway pipeline between Cushing, Okla., and the U.S. gulf Coast refining hub.





Read the full article here.

 

[Ally]

REITs without the volatility




There`s something unsettlingly ephemeral about owning stocks and bonds in this era of default and constant volatility, which explains why many investors are thinking of turning to physical assets such as real estate.


But the problem with owning tangible real estate is all the work involved in maintaining it. When you`re a landlord, every leaky faucet, broken window and dirty swimming pool is your problem.


For the less hands-on investor, a product growing in popularity is the real estate limited partnership or RELP.





Read the full article here.