Wednesday, July 28

Canadian Economy

Bank of Canada, Canadian Economy, Economy

Canadian businesses and consumers are brimming with confidence about the economy

Breadcrumb Trail Links News Economy Business sentiment gauge from Bank of Canada rises to record as separate consumer surveys find optimism at or near all-time highs Author of the article: Bloomberg News Shelly Hagan High consumer confidence could indicate that households and business will be in a spending mood as pandemic restrictions are lifted. Photo by Ernest Doroszuk/Toronto Sun/Postmedia files Article content Canadian consumers and businesses are entering the second half of the year brimming with confidence about the nation's economic prospects, a signal of what could be an imminent boom. Advertisement This advertisement has not loaded yet, but your article continues below. Article content A gauge of business sentiment released by the Bank of ...
Canadian Economy, Economy

Extra income support for hard-hit workers unlikely to stick around post-pandemic: Trudeau

Article content continuedHe said the benefits, as well as an extension to the wage subsidy program, a new commercial rent relief program, and extra help for companies closed by local lockdowns are all automatic stabilizers to ease conditions through the second wave of COVID-19.The extension of the wage subsidy program to next summer won't be official until the Senate approves the necessary legislation.Finance Minister Chrystia Freeland is scheduled to appear at the Senate finance committee Thursday to testify on the bill, known as C-9.The Senate has had some of the loudest voices for the Liberals to adopt another automatic stabilizer in place of myriad benefits: a basic income program.Basic income is essentially a no-strings attached benefit governments provide to citizens that sets a f...
Canadian debt, Canadian Economy, FP Comment

Aaron Wudrick: Chrystia Freeland comes bearing good news

Article content continuedIf all that doesn't worry you enough, consider Freeland citing journalist Kevin Carmichael's line that “it's unfair to saddle the next generation with our debt, but it would be worse to bequeath them a weak economy.”The unstated assumption, of course, is that the government has either the capacity or wisdom to simply “make” a strong economy to bequeath.Set aside for a moment whether this is possible in theory. What has the Trudeau government's track record on this front been in practice? It can't provide any paperwork for a staggering 20,000 infrastructure projects. Its billion-dollar “innovation superclusters” project is failing to hit every single one of its promised targets. The much-hyped Strategic Innovation Fund was supposed to create 56,000 jobs at a cost...
Canadian Economy, Economy

Canadian economy shows strength in August, September for record third quarter

Article contentCanada's economy showed strength in August and September, Statistics Canada reported, easing concerns about a coming slowdown.Gross domestic product expanded 1.2 per cent in August, Statistics Canada said Friday in Ottawa. The agency also released a preliminary estimate for September, which showed a 0.7 per cent expansion.The numbers suggest economic activity in September was about 96.1 per cent of output levels in February. Economists were expecting 0.9 per cent growth in August, according to the median forecast in a Bloomberg survey.With September figures in, the data suggest the economy grew 10 per cent in the third quarter, the agency said, which would imply 46.4 per cent on an annualized basis.More On This TopicThe Bank of Canada this week projected annualized growth...
Canada Mortgage and Housing Corporation, Canadian Economy, cmhc, Economy, Evan Siddall, Mortgages, Real Estate

CMHC, worried about excessive household debt, wanted tighter mortgage rules for competitors

Article content continuedSiddall declined to elaborate on his conversations with government officials about an industry-wide tightening that also would have included CMHC competitors Genworth MI Canada Inc. and Canada Guaranty Mortgage Insurance Co. Discussions between the CEO of CMHC and the minister of finance must be kept confidential , he said."I'm not saying whether I had that conversation with the minister," Siddall said. "I had it with some colleagues in the department of finance."For the same legal and governance reasons, Siddall also declined to say whether he has since reached out to Bill Morneau's successor as finance minister, Chrystia Freeland, who took over the job last month.We didn't want to participate in lending or insuring lending that we thought was an inappropriate ...
Canadian Economy, CERB, Economy

Liberals propose upping value of new benefits to match soon-to-disappear CERB

Article content continuedThe country's finance and employment ministers downplayed any political calculations in the language of the bill introduced in the House of Commons on Thursday, which requires some opposition support for it to become law."We really were trying to be flexible from the beginning. We landed here because this is where the country is now in terms of the support workers need," Employment Minister Carla Qualtrough said.But the bill does more than just reshape aid for individuals who aren't able to work, either because they don't have a job, can't work because they are ill or have to stay home to take care of a child or family member due to pandemic-related reasons.It also includes $1.5 billion to send to provinces for training programs as a first tranche of money linke...
Canadian Economy, Commodities, Economy, energy, Job Losses, Mining

Natural resources sector suffers’steepest decline ever’ with 43,000 jobs lost: StatsCan

Article content continuedThe energy industry felt the brunt of the job losses, with 23,600 workers losing their jobs, followed by 11,850 jobs lost in the mining and minerals industry. A further 6,100 jobs were lost in the forestry sector and 1,400 jobs were lost in hunting, fishing and water industries. Altogether, there were 42,950 people out of work in those natural resources businesses in the second quarter.As the price of oil and refined products like gasoline fell between April and June, so too did the broader natural resource sector's contribution to the Canadian economy and to exports."Canada has long been a net exporter of natural resources — export values ​​are generally about double those of imports," the agency reported.StatsCan data shows natural resources represented about ...
Canadian Economy, Economy, housing market, Mortgages, Real Estate

Toronto condo dwellers flock to exurbs, creating domino effect across Southern Ontario real estate

Article content continuedA home has to be an office, maybe two offices, a classroom, a gym — much more than they were beforeConrad Zurini, broker"This is what's happening: People are looking for more space," he said. "A home has to be an office, maybe two offices, a classroom, a gym. These homes have become much more than they were before."Zurini said millennials make up the majority of those leaving Toronto for Hamilton. There, the average house price sat at $662,257 as of the end of the August, according to the Realtors Association of Hamilton-Burlington. The additional interest from Toronto has turned it into one of the hottest markets in Ontario.Danielle Grant, a sales representative for Hamilton-based Ambitious Realty Advisors describes an environment where buyers must be willing t...
bear markets, Bull Market, Canadian Economy, Investing

‘No rhyme, no reason’: Markets rebound but analysts see further pullback as global recovery stalls

Article content continuedThe ongoing correction looks more like a technical sell-off needed to correct overbought positionsMartin Roberge, Canaccord Genuity"Therefore, it did not take much of a negative catalyst to send stocks down. This time around, while the equity allocation has risen sharply from March lows, it is near the average of 65 per cent. Moreover, the spread between bullish and bearish sentiment is negative, at -14 per cent."Thus, we reiterate our view that the ongoing correction looks more like a technical sell-off needed to correct overbought positions. As such, we would not be surprised to observe another cyclical advance before the US elections. Such an advance would confirm new leadership from deep cyclical stocks."Mark Haefele, chief investment officer of global wealt...
Canadian Economy, CERB, Economy, Personal Finance

With CERB winding down, Ottawa starts tinkering with an engine of the economic recovery

Article content continuedSome individuals who were kept afloat by CERB could begin to go under, one of the reasons the Bank of Canada predicts the sharp rebound that came with the easing of lockdowns will turn into a choppy recovery.Bushmeneva predicted that loan-delinquency rates and consumer insolvencies will likely start rising at the end of this year and into 2021, albeit at a “more gradual and less dramatic” rate than would have happened without CERB and other government measures.Shoppers at a mall in Montreal in July. Photo by Christinne Muschi/Bloomberg filesEven if people and businesses avoid going bust, the economy still could suffer because so many households and companies will be focused on staying solvent, rather than spending.The Canadian Centre for Policy Alternatives (CCP...