Financial Update

· TSX lost Thursdays recovering falling another -133.18
· Dow closed for July 4th
· Dollar -.11c to $98.04US
· Oil -1.19 to $144.10US per barrel.
· Gold -9.00US to $930.75US per ounce

RBC issued national and provincial economic reviews Friday

Below is a quote from the National Report with the Provincial report for Ontario following.

“Canada's housing market is also poised to cool in the face of deteriorating affordability. Housing affordability in most major markets across the country have deteriorated to their worst levels in almost 20 years. However, the extent of any weakening is expected to be much less pronounced than what is occurring currently in the U.S. as the Canadian market did not experience many of the excesses evident south of the border.“

Transmitted by CNW Group on : July 3, 2008 05:00

Ontario's economy continues to struggle but some relief in sight, says RBC TORONTO, July 3 /CNW/ - According to the latest provincial forecastreleased today by RBC, a downbeat scenario continues to unfold in Ontario,with economic growth expected to hover around 0.7 per cent for 2008, theweakest pace of expansion for the province since the last recession in theearly 1990s.

"The unexpected decline in the national economy in the first quarter ofthis year was most likely the result of a notable contraction in activitywithin Ontario's trade sector," said Craig Wright, senior vice-president andchief economist, RBC. "The province's exports were pounded by the highCanadian dollar and downturn in the U.S. economy, as well as poor weatherconditions and a strike at a major U.S. motor vehicle parts manufacturer thatdisrupted auto production here."

Ontario's manufacturing sector will continue to see international saleshindered in 2008 as a result of the high dollar and sluggish U.S. economy.Little improvement is foreseen for the province's important auto sector amidplummeting motor vehicle sales in the U.S. and ongoing restructuring of the"Big 3" North American producers. However a projected weakening in theCanadian dollar and reacceleration of growth in the U.S. economy should bringOntario's exporters some relief by the end of this year and in 2009. The rest of the province's domestic economy is far more encouraging, thereport noted. Residential construction is holding up better than expected andgrowth in consumer spending continues to be supported by a robust labourmarket. Despite heavy losses of manufacturing jobs, Ontario continues to seesteady employment growth overall, thus keeping the unemployment rate near aseven-year low. "The domestic economy remains in relatively good shape andshould allow Ontario's economic growth to stay in positive territory," notedWright.

The main theme of the Provincial Outlook continues to be the differentpaths the Eastern and Western parts of the country are taking. Record-highcommodity prices and strong global demand for resources sustain unprecedentedprosperity in the Western provinces, while the strong Canadian dollar,downturn in the U.S. economy and high energy prices continue to cause hardshipin key sectors in provinces east of Manitoba. Saskatchewan is projected tolead all of the provinces in economic growth for both 2008 and 2009, followedby Alberta, while Newfoundland and Labrador and Ontario are expected to lagthe group this year, but should show some improvement next year.

The RBC Economics Provincial Outlook assesses the provinces according toeconomic growth, employment growth, unemployment rates, personal incomegrowth, retail sales, housing starts, and the Consumer Price Index.

According to the report (available online as of 8 a.m. E.D.T.,
atwww.rbc.com/economics/market/pdf/provfcst.pdf)