Holiday sales: Much worse than feared
Retail group says combined November-December sales fell 2.8%, after expecting a modest gain.
· TSX -273.19 to 8688.36
· DOW -248.42 pts to 8200.14
· Dollar 0.8017 USD
· Oil -.46to $36.82 per barrel.
· Gold -16.30 to $808.20 USD per ounce ·
www.bankofcanada.ca/en/rates/bond-look.html Canadian bond prices
By Parija B. Kavilanz, CNNMoney.com senior writer
Last Updated: January 14, 2009: 2:10 PM ET
NEW YORK (CNNMoney.com) -- The retail industry's leading trade group blamed a "deep recession, severe winter weather and five fewer shopping days" for a 2.8% drop in 2008 holiday sales - a far worse outcome than the industry expected.
The National Retail Federation had originally forecast holiday sales for the combined November-December shopping months to grow 2.2%, which would still have been the weakest pace of gain in at least six years.
As it was, it turned out to be the first-ever decline in the measure since the group initiated it in 1995.
The two-month holiday period can account for as much as 50% of retailers' annual profits and sales.
"The current economic crisis proved to be more challenging than any had anticipated," NRF Chief Economist Rosalind Wells said in a report. "Consumers showed they were more than willing to wait out retailers this year causing increased pressure on prices."
Also, the group said a shift in the calendar which resulted in five fewer shopping days between Thanksgiving and Christmas in 2008 versus the previous year meant consumers had fewer days to do their gift shopping and merchants had fewer days to log additional sales.
The latest government report on December retail sales, also released on Wednesday, supported Wells' point.
The Commerce Department report showed overall retail sales fell 2.8% last month and declined 3.1% excluding auto purchases, despite a last minute surge in holiday-related purchases in the week before Christmas.
December's sales drop marked the sixth straight monthly sales decline in 2008 and the longest consecutive stretch of monthly declines in the measure in at least four decades.
What's more, last year's ugly holiday sales could force an unraveling of the retailing industry, forcing several chains to go out of business in 2009.
Many retailers, including Circuit City, Linens 'n Things and Whitehall Jewelers already either filed for bankruptcy or liquidated last year. That trend is expected to rapidly pick up pace in the weeks and months ahead.
The latest casualty - regional department store chain Gottchalks, which operates 58 stores in six Western states - filed for bankruptcy Wednesday. But analysts warn that given the credit market freeze, it's highly unlikely that any merchant who files for bankruptcy in this environment will come out alive
Thursday, January 15, 2009
Wednesday, January 14, 2009
Financial Update
Energy stocks help TSX claw back losses; N.Y. weak on Alcoa earnings- The Canadian Press
TORONTO - The Toronto stock market closed sharply higher Tuesday following a steep loss as energy stocks revived and financials advanced after Bank of Montreal (TSX:BMO) bought a piece of troubled U.S. insurer American International Group.
· TSX +168.22 to 8961.55
· DOW -25.41 pts to 8448.56
· Dollar 0.8224 USD
· Oil +$1.09to $38.87 per barrel.
· Gold +$4.30 to $825.00 USD per ounce
· www.bankofcanada.ca/en/rates/bond-look.html Canadian bond prices
Oilsands on agenda for Obama visit: Harper
Renata D'Aliesio and Jason Fekete, Calgary Herald Published: Tuesday, January 13, 2009
The oilsands will be on the agenda when Prime Minister Stephen Harper meets with Barack Obama on his first foreign trip as president of the United States.
Harper told a local morning radio show today that his Conservative government wants to work together with its southern neighbour on energy and environmental issues, and he'll stress this point when Obama travels to Canada soon after his Jan. 20 inauguration as America's 44th president.
The prime minister acknowledged there are concerns about the environmental footprint of the oilsands -- the largest industrial development in Canada.
"To be frank on the oilsands, we've got to do a better job environmentally. We hear a lot of pressure on that," Harper said.
"At the same time, the development of these things is pretty important, in our judgment, to North American energy security. So I think there's balance to be seen there."
Harper, who said he's "delighted" Obama has chosen Canada as his first foreign visit, pointed out the United States has its own environmental challenges related to energy production.
"The United States is a big country for coal-powered electrical generation. That's pretty dirty, too," the prime minister said.
Harper is in Calgary today meeting with a dozen heavy hitters from the business community. He held a 60- to 90-minute meeting at the Harry Hays building downtown to get their input on what sort of economic stimulus should be in the Jan. 27 federal budget.
Those included in the business round table are oilpatch giants Randy Eresman from EnCana, Murray Edwards of Canadian Natural Resources, Hal Kvisle from TransCanada, Rick George from Suncor and Ron Brenneman from Petro-Canada. Also taking part in the meeting are senior executives from other sectors, including Sean Durfy from WestJet, Steve Snyder of TransAlta, Nancy Southern from ATCO, Ron Mannix of Coril Holdings, Fred Green from Canadian Pacific Railway and George Gosbee of Tristone Capital.
It's the latest round of pre-budget consultations Ottawa is conducting with business leaders, labour groups and ordinary Canadians in advance of its fiscal blueprint. Harper has said the budget will be the biggest in a long time, while Finance Minister Jim Flaherty has promised extraordinary measures.
The prime minster told the Calgary radio station that his government is considering tax cuts for Canada's middle class and enhancements to the Employment Insurance program.
"It's a little difficult to do a temporary tax cut. How do you do a temporary tax cut? You don't want to be in a position of raising rates back up again," Harper said.
"But I do think we have to do something to make sure that the middle class is part of the budgetary package that we'll be bringing down, and that they're part of the recovery plan."
Harper reiterated plans to significantly boost infrastructure spending nationwide, but said he doesn't want to see long-run structural deficits.
"It is a time for the government to go in, borrow that money, put it to use, make sure the economic activity and confidence is sustained through what we think will be a difficult year or two," he said.
"The vast majority of spending that we will do, we will make sure is short term," he added. "We'll try and make sure there's not a big tail and we're not having deficits once the economy recovers. "
TORONTO - The Toronto stock market closed sharply higher Tuesday following a steep loss as energy stocks revived and financials advanced after Bank of Montreal (TSX:BMO) bought a piece of troubled U.S. insurer American International Group.
· TSX +168.22 to 8961.55
· DOW -25.41 pts to 8448.56
· Dollar 0.8224 USD
· Oil +$1.09to $38.87 per barrel.
· Gold +$4.30 to $825.00 USD per ounce
· www.bankofcanada.ca/en/rates/bond-look.html Canadian bond prices
Oilsands on agenda for Obama visit: Harper
Renata D'Aliesio and Jason Fekete, Calgary Herald Published: Tuesday, January 13, 2009
The oilsands will be on the agenda when Prime Minister Stephen Harper meets with Barack Obama on his first foreign trip as president of the United States.
Harper told a local morning radio show today that his Conservative government wants to work together with its southern neighbour on energy and environmental issues, and he'll stress this point when Obama travels to Canada soon after his Jan. 20 inauguration as America's 44th president.
The prime minister acknowledged there are concerns about the environmental footprint of the oilsands -- the largest industrial development in Canada.
"To be frank on the oilsands, we've got to do a better job environmentally. We hear a lot of pressure on that," Harper said.
"At the same time, the development of these things is pretty important, in our judgment, to North American energy security. So I think there's balance to be seen there."
Harper, who said he's "delighted" Obama has chosen Canada as his first foreign visit, pointed out the United States has its own environmental challenges related to energy production.
"The United States is a big country for coal-powered electrical generation. That's pretty dirty, too," the prime minister said.
Harper is in Calgary today meeting with a dozen heavy hitters from the business community. He held a 60- to 90-minute meeting at the Harry Hays building downtown to get their input on what sort of economic stimulus should be in the Jan. 27 federal budget.
Those included in the business round table are oilpatch giants Randy Eresman from EnCana, Murray Edwards of Canadian Natural Resources, Hal Kvisle from TransCanada, Rick George from Suncor and Ron Brenneman from Petro-Canada. Also taking part in the meeting are senior executives from other sectors, including Sean Durfy from WestJet, Steve Snyder of TransAlta, Nancy Southern from ATCO, Ron Mannix of Coril Holdings, Fred Green from Canadian Pacific Railway and George Gosbee of Tristone Capital.
It's the latest round of pre-budget consultations Ottawa is conducting with business leaders, labour groups and ordinary Canadians in advance of its fiscal blueprint. Harper has said the budget will be the biggest in a long time, while Finance Minister Jim Flaherty has promised extraordinary measures.
The prime minster told the Calgary radio station that his government is considering tax cuts for Canada's middle class and enhancements to the Employment Insurance program.
"It's a little difficult to do a temporary tax cut. How do you do a temporary tax cut? You don't want to be in a position of raising rates back up again," Harper said.
"But I do think we have to do something to make sure that the middle class is part of the budgetary package that we'll be bringing down, and that they're part of the recovery plan."
Harper reiterated plans to significantly boost infrastructure spending nationwide, but said he doesn't want to see long-run structural deficits.
"It is a time for the government to go in, borrow that money, put it to use, make sure the economic activity and confidence is sustained through what we think will be a difficult year or two," he said.
"The vast majority of spending that we will do, we will make sure is short term," he added. "We'll try and make sure there's not a big tail and we're not having deficits once the economy recovers. "
Tuesday, January 13, 2009
Financial Update January 13th,2009
Stocks tumble as oil falls on economic worries- AP So much for the Santa Claus rally. A run-up at the end of the 2008 that had some investors hoping the worst was over is crumbling on fear that corporate profit reports arriving this week will signal a recovery in the economy is further off than Wall Street had hoped.
· TSX -291.85 to 8793.27
· DOW -125.21 pts to 8473.97
· Dollar 0.8228 USD
· Oil -$3.29to $37.59US per barrel.
· Gold -$34.00 to $821.00 USD per ounce
· www.bankofcanada.ca/en/rates/bond-look.html Canadian bond prices
New home prices continue drop
Jamie Sturgeon, Financial Post Published: Monday, January 12, 2009
New home prices fell in November for the second consecutive month-to-month decrease, Statistics Canada said Monday. The average price on a new house declined 0.3%, the federal agency said, as demand continued to cool across the national real estate market in the fall. The dip continues the first reverse in home prices in more than a decade, following the 0.4% decline experienced in October. Yet the results varied from region to region, with some markets still witnessing considerable price increases.
St. John's recorded the largest annualized gain, with the value of a new home up more than 25% from 2007, a clip that narrowly outpaced Regina.The monthly increase in St. John's was 3.4%.
In a sign that Saskatchewan is beginning to feel the bite of a recession it has largely avoided so far, home prices were flat in Regina in November while in Saskatoon prices continued to come down. New home prices were down 0.5% in Saskatoon "confirming a trend of deceleration in this city," Statscan said. "Builders continued to report difficult market conditions."
The drops continued further west.
New home prices in Edmonton recorded a 12-month plunge of 7.9% - largest monthly decline since May 1985. Prices dipped 2.5% in Calgary. On a monthly basis, prices fell 0.3% in Edmonton and 1.1% in Calgary between October and November.On the West Coast, builders cut new home prices in Vancouver by 1.7% in November, a trend continued in Victoria, Statscan said.
Markets in Eastern Canada, which have shown more stable supply-demand conditions, continued to rise, Statscan said. Compared with November 2007, contractors' selling prices were 4.3% higher in Ottawa and 2.0% higher in Toronto.In Québec, the 12-month growth rate was 5.4%, while in Montréal, prices increased 4.6%, the agency said. No market east of Saskatchewan experienced a month-to-month decline in new home prices.
· TSX -291.85 to 8793.27
· DOW -125.21 pts to 8473.97
· Dollar 0.8228 USD
· Oil -$3.29to $37.59US per barrel.
· Gold -$34.00 to $821.00 USD per ounce
· www.bankofcanada.ca/en/rates/bond-look.html Canadian bond prices
New home prices continue drop
Jamie Sturgeon, Financial Post Published: Monday, January 12, 2009
New home prices fell in November for the second consecutive month-to-month decrease, Statistics Canada said Monday. The average price on a new house declined 0.3%, the federal agency said, as demand continued to cool across the national real estate market in the fall. The dip continues the first reverse in home prices in more than a decade, following the 0.4% decline experienced in October. Yet the results varied from region to region, with some markets still witnessing considerable price increases.
St. John's recorded the largest annualized gain, with the value of a new home up more than 25% from 2007, a clip that narrowly outpaced Regina.The monthly increase in St. John's was 3.4%.
In a sign that Saskatchewan is beginning to feel the bite of a recession it has largely avoided so far, home prices were flat in Regina in November while in Saskatoon prices continued to come down. New home prices were down 0.5% in Saskatoon "confirming a trend of deceleration in this city," Statscan said. "Builders continued to report difficult market conditions."
The drops continued further west.
New home prices in Edmonton recorded a 12-month plunge of 7.9% - largest monthly decline since May 1985. Prices dipped 2.5% in Calgary. On a monthly basis, prices fell 0.3% in Edmonton and 1.1% in Calgary between October and November.On the West Coast, builders cut new home prices in Vancouver by 1.7% in November, a trend continued in Victoria, Statscan said.
Markets in Eastern Canada, which have shown more stable supply-demand conditions, continued to rise, Statscan said. Compared with November 2007, contractors' selling prices were 4.3% higher in Ottawa and 2.0% higher in Toronto.In Québec, the 12-month growth rate was 5.4%, while in Montréal, prices increased 4.6%, the agency said. No market east of Saskatchewan experienced a month-to-month decline in new home prices.
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