Wednesday, June 3, 2009
Financial Update June 3, 2009
TSX-15.27because of falling oil and gas stocks
DOW +19.43following news that pending U.S. home sales for April came in much higher than expected
Dollar +.85c to 92.51USD
Oil -$.03 to $68.55US per barrel
Gold-+$4.400 to $983.70USD per ounce
Canadian 5 yr bond yields -03bps to 2.48- Four weeks ago it was 2.00. The spread, based on new 5 yr rate of 4.09%, is at 1.61%.
http://www.financialpost.com/markets/market-data/money-yields-can_us.html?tmp=yields-can_us
The yield, rate of return on your bond, can be read through a yield curve, which is the pattern of yields on bonds. This increase in bond yield is something to watch. If the bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise
Article from MBA Newsletter – if Obama looks to Canada for its banking system, why not follow our mortgage originator registration process also?…..
Mortgage Originator Registration Eyed
American Banker (06/02/09) P. 16; Flitter, Emily
U.S. banking overseers have proposed rules for implementing a national mortgage licensing database. Congress last year passed the Secure and Fair Enforcement for Mortgage Licensing Act, which requires all mortgage originators -- including bank employees -- to register with the Nationwide Mortgage Licensing System and Registry. An originator would receive his or her own unique identification number
DOW +19.43following news that pending U.S. home sales for April came in much higher than expected
Dollar +.85c to 92.51USD
Oil -$.03 to $68.55US per barrel
Gold-+$4.400 to $983.70USD per ounce
Canadian 5 yr bond yields -03bps to 2.48- Four weeks ago it was 2.00. The spread, based on new 5 yr rate of 4.09%, is at 1.61%.
http://www.financialpost.com/markets/market-data/money-yields-can_us.html?tmp=yields-can_us
The yield, rate of return on your bond, can be read through a yield curve, which is the pattern of yields on bonds. This increase in bond yield is something to watch. If the bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise
Article from MBA Newsletter – if Obama looks to Canada for its banking system, why not follow our mortgage originator registration process also?…..
Mortgage Originator Registration Eyed
American Banker (06/02/09) P. 16; Flitter, Emily
U.S. banking overseers have proposed rules for implementing a national mortgage licensing database. Congress last year passed the Secure and Fair Enforcement for Mortgage Licensing Act, which requires all mortgage originators -- including bank employees -- to register with the Nationwide Mortgage Licensing System and Registry. An originator would receive his or her own unique identification number
Tuesday, June 2, 2009
Financial Update June 2, 2009
TSX+233.39 at one point Monday hit its highest level in more than 7 months, as a surge in oil prices lit a fire under its energy sector.
DOW +221.11
Dollar +.06c to 91.66USD a rise in the price of oil
Oil +$2.85 to $68.58US per barrel Oil and gasoline prices continued their recession-defying march higher, doubling in the past 6mnths largely on optimism that a strengthening economy will drive demand higher
Gold- $.30 to $977.20USD per ounce
Canadian 5 yr bond yields +05bps to 2.51- Four weeks ago it was 2.02. The spread, based on new 5 yr rate of 4.09%, is at 1.58%.
http://www.financialpost.com/markets/market-data/money-yields-can_us.html?tmp=yields-can_us
The yield, rate of return on your bond. This increase in bond yield is something to watch. If the bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise
Harper: 'The worst is behind us'
Prime minister encouraged by new data that suggests economy is in recovery mode
JULIAN BELTRAME
THE CANADIAN PRESS OTTAWA
Canadians have reason to breathe a little easier -- the economy fell sharply at the start of the year but talk about another depression appears to have been just talk.
Having been given the best economic news in months, Prime Minister Stephen Harper was quick to take advantage yesterday, saying the Liberals have no reason to push for a federal election.
"I think the worst is behind us, we will have better quarters going forward,'' Harper said in an interview with a Toronto radio station.
"I think that's one of the reasons (Liberal Leader Michael) Ignatieff seems to be pushing so hard with ideas to get the other parties to bring the government down. He would love the opportunity to get in there for a recovery. The country needs an election like a hole in the head,'' Harper added.
The output numbers for the first quarter of 2009 were nothing to boast about. The economy contracted by a massive 5.4 per cent at an annualized rate, the worst in 18 years when there was a 5.9 per cent decline in 1991.
But with the Bank of Canada having projected a 7.3 per cent collapse and some economists saying the decline could be as much as nine per cent, the Statistics Canada data has the feel of a death row reprieve.
And the improving data for the last two months of the quarter -- February and March -- suggests that as Harper noted, the worst is likely over and it happened during the November-January period.
"It is the worst recession since the Great Depression globally, but this is where some of Canada's positives have come back to save us a bit from something nastier,'' said Douglas Porter, deputy chief economist with BMO Capital Markets.
"Make no mistake, it's a very severe downturn. But we've been through these kinds of severe downturns before in the early '80s and early '90s.''
Combined with the revised 3.7 per cent drop in the fourth quarter of 2008, Liberal finance critic John McCallum said the slump still qualifies as among the worst since quarterly data began being kept in 1961.
But he too expressed relief that "there is less panic than there was a while ago . . . and more sense that, 'Yeah, we are going to get out of this."'
McCallum said his party will still press for improvements to unemployment insurance to ensure that more laid-off Canadians qualify for benefits, saying the economy will likely continue to shed jobs for months to come.
DOW +221.11
Dollar +.06c to 91.66USD a rise in the price of oil
Oil +$2.85 to $68.58US per barrel Oil and gasoline prices continued their recession-defying march higher, doubling in the past 6mnths largely on optimism that a strengthening economy will drive demand higher
Gold- $.30 to $977.20USD per ounce
Canadian 5 yr bond yields +05bps to 2.51- Four weeks ago it was 2.02. The spread, based on new 5 yr rate of 4.09%, is at 1.58%.
http://www.financialpost.com/markets/market-data/money-yields-can_us.html?tmp=yields-can_us
The yield, rate of return on your bond. This increase in bond yield is something to watch. If the bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise
Harper: 'The worst is behind us'
Prime minister encouraged by new data that suggests economy is in recovery mode
JULIAN BELTRAME
THE CANADIAN PRESS OTTAWA
Canadians have reason to breathe a little easier -- the economy fell sharply at the start of the year but talk about another depression appears to have been just talk.
Having been given the best economic news in months, Prime Minister Stephen Harper was quick to take advantage yesterday, saying the Liberals have no reason to push for a federal election.
"I think the worst is behind us, we will have better quarters going forward,'' Harper said in an interview with a Toronto radio station.
"I think that's one of the reasons (Liberal Leader Michael) Ignatieff seems to be pushing so hard with ideas to get the other parties to bring the government down. He would love the opportunity to get in there for a recovery. The country needs an election like a hole in the head,'' Harper added.
The output numbers for the first quarter of 2009 were nothing to boast about. The economy contracted by a massive 5.4 per cent at an annualized rate, the worst in 18 years when there was a 5.9 per cent decline in 1991.
But with the Bank of Canada having projected a 7.3 per cent collapse and some economists saying the decline could be as much as nine per cent, the Statistics Canada data has the feel of a death row reprieve.
And the improving data for the last two months of the quarter -- February and March -- suggests that as Harper noted, the worst is likely over and it happened during the November-January period.
"It is the worst recession since the Great Depression globally, but this is where some of Canada's positives have come back to save us a bit from something nastier,'' said Douglas Porter, deputy chief economist with BMO Capital Markets.
"Make no mistake, it's a very severe downturn. But we've been through these kinds of severe downturns before in the early '80s and early '90s.''
Combined with the revised 3.7 per cent drop in the fourth quarter of 2008, Liberal finance critic John McCallum said the slump still qualifies as among the worst since quarterly data began being kept in 1961.
But he too expressed relief that "there is less panic than there was a while ago . . . and more sense that, 'Yeah, we are going to get out of this."'
McCallum said his party will still press for improvements to unemployment insurance to ensure that more laid-off Canadians qualify for benefits, saying the economy will likely continue to shed jobs for months to come.
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