• 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.
Wednesday, December 2, 2009
Tuesday, December 1, 2009
Financial Update For Dec. 1, 2009
• TSX -17.21 as the impact of lower gold prices for most of the session more than offset a rally by bank shares ahead of bank financial reports set to be released later this week.
• DOW +34.92
• Dollar +.52c to 94.73cUS
• Oil +$1.23 to $77.28US per barrel.
• Gold +$6.90 to $1,181.10USD per ounce
Gross domestic product sees first gain in a year in third quarter
By David Friend
TORONTO — Canada’s economy inched ahead in the third quarter, meekly heralding an end to the recession and the start of what is predicted to be slow and laborious recovery.
Statistics Canada reported Monday that real gross domestic product, an inflation-adjusted measure of the economic growth, expanded at an annualized rate of 0.4 per cent in the third quarter. That was below the Bank of Canada’s two-per-cent growth prediction for the quarter, and economist’s expectations for an annualized growth rate of 0.6 per cent, according to CIBC World Markets.
The first overall economic growth in a year marks an end to the recession, which is technically defined as at least two back-to-back quarters of contraction.
By comparison, the American economy registered growth of 2.8 per cent during the same period, Statistics Canada said, though the U.S. has been pulling itself out of a deeper recession.
“We’ve certainly been slowest out of the gate to economic recovery relative to most of the other major economies,” said Avery Shenfeld, chief economist at CIBC World Markets.
“The only plus side here, is that the third quarter ended on a strong note with a healthy GDP gain in September, and that does give us hope that we’ll see much better growth for the fourth quarter.”
Real GDP — economic growth adjusted for inflation — was up 0.4 per cent in September, the final month of the quarter, as most major industrial sectors increased their production.
Economists have latched onto that optimism as a way to build hope for a stronger recovery into next year, driven by an uptick that is expected to register in the final three months of 2009.
TD Securities Economics strategist Millan Mulraine suggested the fourth quarter could launch a “significant pickup” of about three per cent.
“Looking ahead, we think that the Canadian economy will at least outperform the U.S. economy in the near term,” he said.
“One of the things to look at next year is what happens to consumer spending. We think that additional upside could come from net trade if the pickup in the U.S. starts gathering steam.”
There was further optimism in a November survey conducted by the Canadian Manufacturers & Exporters, which showed strength in both orders and a hopeful outlook on future employment.
The survey found that 63 per cent of respondents said manufacturing orders were either the same or higher in value compared to August. On the jobs front, 79 per cent of respondents said they planned to either hold employment steady or hire new workers over the next three months, showing that some within the industry expect further momentum in their growth.
Statistics Canada said in the third quarter final domestic demand advanced 1.2 per cent, as capital investment and personal spending both increased.
Consumer spending on goods and services, one of the pillars of Canadian economic health, was up 0.8 per cent, the biggest increase since the fourth quarter of 2007 as households increased spending on durable goods 2.4 per cent, particularly on new and used motor vehicles and on furniture.
The domestic economy is looking to shake off the months of battering it suffered during a global economic meltdown that saw the failure of U.S. banks, ravaged corporate profits and hundreds of thousands of jobs lost.
Bank of Montreal deputy economist Doug Porter said the data indicates that Canada’s economy is on the mend, but the third-quarter numbers were “not exactly a clanging endorsement of the ‘end of recession’ story.”
“While the quarterly gain for the third quarter was a bit of a damp squib, this doesn’t alter the bigger picture that the Canadian economy is erratically grinding out of recession, led by broad-based gains in domestic spending,” Porter wrote in a note to clients.
“With the solid hand-off from the sturdy September result and mounting signs that the U.S. recovery is taking root, look for much more convincing evidence that the recession is over in fourth-quarter GDP results. Still, the broader picture of a relatively muted recovery remains the dominant theme.”
Among its other findings, Statistics Canada said export and import volumes both increased after many quarters of decline, suggesting that industrial activity is picking up.
The output of services-producing industries increased 0.6 per cent, with the wholesale and retail trade sectors and real-estate agents and brokers leading the way.
Goods-producing industries slipped 1.4 per cent, continuing a downward trend that started in the third quarter of 2007. Mining and oil-and-gas extraction contributed the most to the decrease as a result of temporary shutdowns. The Canadian Press
Dubai World not guaranteed by emirate; creditors also at fault, finance official says
By Barbara Surk
DUBAI, UNITED ARAB EMIRATES — The heavily indebted Dubai World is not guaranteed by the emirate’s government, a top financial official from the city state said Monday, offering little direction to anxious investors on a day when the United Arab Emirates registered a record fall on the back of Dubai’s debt mess.
On the first day of trading since news of Dubai World’s debt crunch became public, Dubai’s main stock exchange dropped more than seven per cent while the Abu Dhabi exchange fell more than eight per cent — the steepest fall in at least a year, according to brokers.
Driving the financial avalanche was Wednesday’s announcement that conglomerate Dubai World would seek at least a six-month reprieve on its $60 billion US in debts, obligations amassed during years of a building spree that turned the desert emirate into the Middle Eastern version of Las Vegas, Wall Street and, at times, Sodom and Gomorra, all rolled into one.
If markets were looking for reassurances from Dubai that it would stand behind the conglomerate, they got none Monday.
“Dubai World was established as an independent company, it is true that the government is the owner, but given that the company has various activities and is exposed to various types of risks, the decision, since its establishment, has been that the company is not guaranteed by the (Dubai) government,” Abdulrahman al-Saleh, director general of Dubai’s Finance Department, said on Dubai TV.
“Consequently, the company’s dealing with the various parties has been on this basis,” he said.
Al-Saleh’s comments were the first public remarks by a Dubai official since Thursday, the day after the emirate’s government’s announcement about Dubai World’s request for a debt repayment postponement.
The lack of clarity or direction from the rulers of Dubai since the extent of the conglomerate’s financial ills became known has been a major source of angst for investors.
Uncertainty about what step the emirate would take next had cast a pall on world markets late last week.
Investors returned to Dubai and Abu Dhabi’s markets Monday with little news and plenty of questions. As a result, stocks took a dive.
Shares of Emaar Properties, the United Arab Emirates’ biggest developer, for example were down 9.86 per cent to 3.75 dirhams.
The overwhelming majority of companies whose shares traded Monday on the Dubai Financial Market, the city-state’s main bourse, were also deeply in the red. But the market failed to hit the 10 per cent stop-trading cap largely because a large number of company shares were not traded.
Asian markets rebounded Monday after taking a tumble late last week while European markets were down slightly.
The Associated Press
• DOW +34.92
• Dollar +.52c to 94.73cUS
• Oil +$1.23 to $77.28US per barrel.
• Gold +$6.90 to $1,181.10USD per ounce
Gross domestic product sees first gain in a year in third quarter
By David Friend
TORONTO — Canada’s economy inched ahead in the third quarter, meekly heralding an end to the recession and the start of what is predicted to be slow and laborious recovery.
Statistics Canada reported Monday that real gross domestic product, an inflation-adjusted measure of the economic growth, expanded at an annualized rate of 0.4 per cent in the third quarter. That was below the Bank of Canada’s two-per-cent growth prediction for the quarter, and economist’s expectations for an annualized growth rate of 0.6 per cent, according to CIBC World Markets.
The first overall economic growth in a year marks an end to the recession, which is technically defined as at least two back-to-back quarters of contraction.
By comparison, the American economy registered growth of 2.8 per cent during the same period, Statistics Canada said, though the U.S. has been pulling itself out of a deeper recession.
“We’ve certainly been slowest out of the gate to economic recovery relative to most of the other major economies,” said Avery Shenfeld, chief economist at CIBC World Markets.
“The only plus side here, is that the third quarter ended on a strong note with a healthy GDP gain in September, and that does give us hope that we’ll see much better growth for the fourth quarter.”
Real GDP — economic growth adjusted for inflation — was up 0.4 per cent in September, the final month of the quarter, as most major industrial sectors increased their production.
Economists have latched onto that optimism as a way to build hope for a stronger recovery into next year, driven by an uptick that is expected to register in the final three months of 2009.
TD Securities Economics strategist Millan Mulraine suggested the fourth quarter could launch a “significant pickup” of about three per cent.
“Looking ahead, we think that the Canadian economy will at least outperform the U.S. economy in the near term,” he said.
“One of the things to look at next year is what happens to consumer spending. We think that additional upside could come from net trade if the pickup in the U.S. starts gathering steam.”
There was further optimism in a November survey conducted by the Canadian Manufacturers & Exporters, which showed strength in both orders and a hopeful outlook on future employment.
The survey found that 63 per cent of respondents said manufacturing orders were either the same or higher in value compared to August. On the jobs front, 79 per cent of respondents said they planned to either hold employment steady or hire new workers over the next three months, showing that some within the industry expect further momentum in their growth.
Statistics Canada said in the third quarter final domestic demand advanced 1.2 per cent, as capital investment and personal spending both increased.
Consumer spending on goods and services, one of the pillars of Canadian economic health, was up 0.8 per cent, the biggest increase since the fourth quarter of 2007 as households increased spending on durable goods 2.4 per cent, particularly on new and used motor vehicles and on furniture.
The domestic economy is looking to shake off the months of battering it suffered during a global economic meltdown that saw the failure of U.S. banks, ravaged corporate profits and hundreds of thousands of jobs lost.
Bank of Montreal deputy economist Doug Porter said the data indicates that Canada’s economy is on the mend, but the third-quarter numbers were “not exactly a clanging endorsement of the ‘end of recession’ story.”
“While the quarterly gain for the third quarter was a bit of a damp squib, this doesn’t alter the bigger picture that the Canadian economy is erratically grinding out of recession, led by broad-based gains in domestic spending,” Porter wrote in a note to clients.
“With the solid hand-off from the sturdy September result and mounting signs that the U.S. recovery is taking root, look for much more convincing evidence that the recession is over in fourth-quarter GDP results. Still, the broader picture of a relatively muted recovery remains the dominant theme.”
Among its other findings, Statistics Canada said export and import volumes both increased after many quarters of decline, suggesting that industrial activity is picking up.
The output of services-producing industries increased 0.6 per cent, with the wholesale and retail trade sectors and real-estate agents and brokers leading the way.
Goods-producing industries slipped 1.4 per cent, continuing a downward trend that started in the third quarter of 2007. Mining and oil-and-gas extraction contributed the most to the decrease as a result of temporary shutdowns. The Canadian Press
Dubai World not guaranteed by emirate; creditors also at fault, finance official says
By Barbara Surk
DUBAI, UNITED ARAB EMIRATES — The heavily indebted Dubai World is not guaranteed by the emirate’s government, a top financial official from the city state said Monday, offering little direction to anxious investors on a day when the United Arab Emirates registered a record fall on the back of Dubai’s debt mess.
On the first day of trading since news of Dubai World’s debt crunch became public, Dubai’s main stock exchange dropped more than seven per cent while the Abu Dhabi exchange fell more than eight per cent — the steepest fall in at least a year, according to brokers.
Driving the financial avalanche was Wednesday’s announcement that conglomerate Dubai World would seek at least a six-month reprieve on its $60 billion US in debts, obligations amassed during years of a building spree that turned the desert emirate into the Middle Eastern version of Las Vegas, Wall Street and, at times, Sodom and Gomorra, all rolled into one.
If markets were looking for reassurances from Dubai that it would stand behind the conglomerate, they got none Monday.
“Dubai World was established as an independent company, it is true that the government is the owner, but given that the company has various activities and is exposed to various types of risks, the decision, since its establishment, has been that the company is not guaranteed by the (Dubai) government,” Abdulrahman al-Saleh, director general of Dubai’s Finance Department, said on Dubai TV.
“Consequently, the company’s dealing with the various parties has been on this basis,” he said.
Al-Saleh’s comments were the first public remarks by a Dubai official since Thursday, the day after the emirate’s government’s announcement about Dubai World’s request for a debt repayment postponement.
The lack of clarity or direction from the rulers of Dubai since the extent of the conglomerate’s financial ills became known has been a major source of angst for investors.
Uncertainty about what step the emirate would take next had cast a pall on world markets late last week.
Investors returned to Dubai and Abu Dhabi’s markets Monday with little news and plenty of questions. As a result, stocks took a dive.
Shares of Emaar Properties, the United Arab Emirates’ biggest developer, for example were down 9.86 per cent to 3.75 dirhams.
The overwhelming majority of companies whose shares traded Monday on the Dubai Financial Market, the city-state’s main bourse, were also deeply in the red. But the market failed to hit the 10 per cent stop-trading cap largely because a large number of company shares were not traded.
Asian markets rebounded Monday after taking a tumble late last week while European markets were down slightly.
The Associated Press
Thursday, November 26, 2009
Financial Update For Nov. 26, 2009
• TSX +97.27
• DOW +30.69
• Dollar +1.13c to 95.65cUS
• Oil +$1.94 to $77.96US per barrel.
• Gold +$21.40 to $1,186.90USD per ounce Gold prices extended their record run hitting another new all time high
•
Home ownership becomes more expensive in third quarter
Module body
By The Canadian Press
TORONTO - The cost of homeownership in Canada became more expensive in the third quarter, according to a report by RBC Economics Research.
The bank says this hasn't happened since the spring of 2008 and was due to a slight rise in mortgage rates and higher property values. The RBC index measures the proportion of pre-tax household income needed to service the costs of owning a home.
During the third quarter, the benchmark detached bungalow moved up by one per cent to 40.2 per cent and the standard townhouse rose by 0.7 per cent to 32.3 per cent.
The standard condo climbed by 0.5 per cent up to 27.6 per cent and a standard two-storey home increased 1.2 per cent to 45.8 per cent.
RBC says housing demand has outgrown supply, leading to a more competitive market and widespread increases in home values.
"With such strong momentum in the housing market and the cyclical low in mortgage rates behind us, it seems unlikely that affordability will improve in the near future," said RBC senior economist Robert Hogue.
"The housing market still faces obstacles, as mortgages have become more difficult to handle for many Canadians amid challenging labour conditions. This is likely to persist until the economic recovery is well established and job creation is sustained next year."
• DOW +30.69
• Dollar +1.13c to 95.65cUS
• Oil +$1.94 to $77.96US per barrel.
• Gold +$21.40 to $1,186.90USD per ounce Gold prices extended their record run hitting another new all time high
•
Home ownership becomes more expensive in third quarter
Module body
By The Canadian Press
TORONTO - The cost of homeownership in Canada became more expensive in the third quarter, according to a report by RBC Economics Research.
The bank says this hasn't happened since the spring of 2008 and was due to a slight rise in mortgage rates and higher property values. The RBC index measures the proportion of pre-tax household income needed to service the costs of owning a home.
During the third quarter, the benchmark detached bungalow moved up by one per cent to 40.2 per cent and the standard townhouse rose by 0.7 per cent to 32.3 per cent.
The standard condo climbed by 0.5 per cent up to 27.6 per cent and a standard two-storey home increased 1.2 per cent to 45.8 per cent.
RBC says housing demand has outgrown supply, leading to a more competitive market and widespread increases in home values.
"With such strong momentum in the housing market and the cyclical low in mortgage rates behind us, it seems unlikely that affordability will improve in the near future," said RBC senior economist Robert Hogue.
"The housing market still faces obstacles, as mortgages have become more difficult to handle for many Canadians amid challenging labour conditions. This is likely to persist until the economic recovery is well established and job creation is sustained next year."
Subscribe to:
Posts (Atom)
