Financial Update For Dec. 2, 2009

• TSX +260.12 to 11,707.32 surged to its highest close this year boosted by record gold prices, receding credit problems in Dubai and a trio of rebounding US economic reports. Canadian Federal Finance Minister Jim Flaherty also expressed optimism the nation will see improved economic growth in 2010.

• DOW +126.74 on better-than-expected economic readings on construction spending and pending home sales

• Dollar +.81c to 95.54cUS as the Russian Central Bank commented it will buy Canadian dollars in a bid to diversify its currency reserves

• Oil +$1.09 to $78.37US per barrel.

• Gold +$18.00 to $1,199.10USD per ounce this 5.28% jump sets another all time high for the price of gold

Nearly all stimulus funds 'committed': Harper

David Akin, Canwest News Service

BEIJING -- Prime Minister Stephen Harper stepped off a 20-hour plane ride from Ottawa to Beijing Wednesday afternoon and the first thing he did on Chinese soil was unveil his government's economic action plan back in Canada.

In a downtown hotel here, Mr. Harper said that $28-billion in federal stimulus funds or 97% of what was allocated for the current budget year has now been "committed." More than 12,000 infrastructure projects across the country have been approved and, of those, work on 8,000 has begun. The government says it has created or preserved more than 220,000 jobs, exceeding the target set in the January budget of 190,000 jobs. And all that in just 250 days since the budget passed the House of Commons.

But many in the House of Commons, thousands of kilometres and 13 time zones away, will dispute the prime minister's claims and quarrel with his odd choice of delivering the news to Canadians while he's in China.

"It was a parliamentary resolution that insisted on a report in December," Mr. Harper said in answer to his choice of location. "If you look at the schedule the timing didn't permit me to do this before or after this trip

Transmitted by CNW Group on : December 1, 2009 05:00

Ontarians the biggest spenders in the country this holiday season, according to RBC Canadian Consumer Outlook

Half of Ontarians are still planning to spend less this holiday season

TORONTO, Dec. 1 /CNW/ - RBC today established a new monthly benchmark index - the most comprehensive consumer index in Canada - describing Canadian consumers' assessment of the economy and their personal financial situation. The inaugural RBC Canadian Consumer Outlook report found that, on average, Ontarians expect to spend the most in the country on holiday purchases, including gifts, decorations and entertaining, which total $1,646, compared to the national average of $1,218. However, one half (47 per cent) of Ontarians plan to spend less this year than last year and one in five of them (16 per cent) will not buy any gifts at all.

"Although Ontarians are concerned about jobs, their optimism about a recovery over the next year may be helping to dispel concerns about holiday spending," said Jennifer Tory, regional president, Greater Toronto Region, RBC. "We're finding that clients are coming to us more often for financial advice and solutions to achieve their goals."

The report also measures Canadians' perception of current conditions compared to three months ago, as well as short term (three month) prospects for their personal finances, their job anxiety and a number of other factors. Provincial highlights include:

- Job Anxiety: Job anxiety in Ontario is high at 29 per cent (tied with

B.C.), and sits at two points above the national average of 27 per

cent.


- Personal Financial Situation (Overall): Four in ten Ontarians (40 per

cent) think that their personal financial situation is worse than it

was three months ago, virtually on par with the national average (39

per cent). Similarly, more than one in four Ontarians (27 per cent)

think that their personal financial situation will improve in the

next three months, the same rate as seen nationally. They also

reflect the national mood in being more optimistic in the longer

term, with nearly four in ten Ontarians (38 per cent) expecting their

personal economic situation to improve over the next year.

"Talk of the U.S. economy emerging from recession and strengthening asset markets are boosting sentiment after a very poor first half of the year," said Dawn Desjardins, assistant chief economist, RBC.