Financial Update For June 18, 2010

• TSX +24.92 to11,946 rose for a sixth-straight day, as strong gold shares offset weaker financial issues, which were pressured by soft U.S. economic data. Factory data in the U.S. Mid-Atlantic region was weaker than expected and U.S. jobless claims rose. "The broader concern is the U.S. employment market is not bouncing back," said Francis Campeau, a broker at MF Global Canada
• DOW +24.71
• Dollar -.15c to 97.37cUS .
• Oil -$.88 to $76.79US per barrel.
Gold +$18.20 to $1,248.70 USD per ounce Concern over the U.S. figures lit a flight-to-safety fire under gold futures, which rose to a new record high close

Canada’s financial hub is preparing for G20 lockdown
Jameson Berkow, Financial Post •
All five major banks will be reducing hours or shutting a total of 51 branches that are inside or close to the summit meeting in downtown Toronto. Plans are also underway to reduce staff on trading floors and corporate offices and move some operations to remote locations or allow employees to work from home.
Most banks will be implementing so-called “business continuity plans” — previously put to the test during the SARS outbreak and the Ontario power blackout in 2003 — and now being put through their paces once again. Although the summit takes place on the June 26-27 weekend, many banks will be limiting operations in the days leading up to it.
Banks are keeping details of their plans largely under wraps. Many bank employees who generally work downtown still don’t know if they are going to be coming into work or if they will be at a remote site setup. Much will depend on the intensity of the protests and the level of street disruptions.
The Bank of Montreal, in addition to closing nine downtown locations, intends to shift part of its trading operations to an alternate location outside of the secure zone, which encloses most of the financial district.
“Trading will probably split operations, moving half of its staff to an alternate location to reduce demand on the main trading floor,” Ralph Marranca, a spokesman for BMO said. At the peak of the summit disruption, BMO could have as many as 40% of its downtown staff working from home, he added, though plans are still in flux.
Toronto-Dominion Bank will modify hours at 22 branches, for five business days leading up to the summit.
“Like many companies expecting to be impacted by the summit, we have pretty robust plans in place,” said Wojtek Dabrowski, a spokesman for TD. “In order to make sure everything runs safely and smoothly we’re closing eight branches in the downtown core.”
Decisions about further closures or reductions in hours, including trading and other operations will be made on an ongoing basis, Mr. Dabrowski said.
For Royal Bank of Canada, the summit will be a real-life test of its continuity strategy.
“This is an actual event taking place in Toronto so we are putting our customized business continuity plans in place,” Don Blair, a RBC spokesman said.
RBC’s strategy, which also involves closing eight of its downtown branches from June 24 until June 27, will have as many employees as possible who work downtown either work from home or from alternative RBC locations in the Greater Toronto Area. According to Mr. Blair, RBC is planning to maintain normal trading operations for its investment services, Mr. Blair said.
An RBC branch in Ottawa was firebombed last month. The group that claimed responsibility for the attack, FFFC-Ottawa, has said it planned to protest at the Toronto event as well.
The Canadian Imperial Bank of Commerce will be closing six downtown locations, including its flagship Commerce Court branch, for all or part of the summit duration.
Aside from closing six downtown locations, Bank of Nova Scotia is not planning any specific mitigation strategy to deal with the G20 disruption. Though the bank will be “implementing business continuity plans as required,” said, Joe Konecny a bank spokesman.
The Toronto Stock Exchange (TSX), which maintains a corporate headquarters one block from the secure zone, is expecting approximately 75% of its staff to work from home. Though it does not anticipate any impact on its trading operations which occur off-site, according to TSX spokeswoman Carolyn Quick
Read more: http://www.financialpost.com/news/g20/Canada+financial+preparing+lockdown/3157538/story.html#ixzz0rAW64xT8

Financial Update For June 17, 2010

Home sales sputter in May
• TSX +13.51 as investors looked for direction and markets digested solid gains from the previous session.
• DOW +4.69
• Dollar -.03c to 97.52cUS.
• Oil +$.73 to $77.67US per barrel.
Gold -$3.90 to $1,229.50 USD per ounce

Home sales sputter in May
Steve Ladurantaye Real Estate Reporter Globe and Mail
Buyers backed away from Canada’s housing market in May, driving sales lower in what is traditionally the busiest month of the year for the country’s real estate agents.
The housing market has been key to Canada’s economic recovery, as low interest rates and pent-up demand drove buyers into the market after months of stagnation in 2008. But with interest rates likely heading higher in the second half of the year, many buyers who would have preferred to buy in the fall or early winter chose to buy sooner.
Tougher mortgage rules imposed by the federal government in mid-April also prompted buyers to act sooner, the Canadian Real Estate Association said. Meanwhile, tens of thousands of homeowners have seen the rampant demand and listed their houses for sale to take advantage of high prices.
Sales fell to 8.5 per cent to 40,393 units in May compared with April. Sales remain elevated by historical markers, but are 15 per lower than last fall’s peak.
Prices were essentially flat in May, gaining 0.5 per cent to an average national resale price of $346,881 – the highest on record.

Financial Update For June 16, 2010

• TSX +240.20 its 4th straight day of gains and the largest rise since May 10, after healthy demand at several euro zone debt auctions in Spain, Ireland and Belgium, and a subsequent rally in commodity markets whetted investor appetite for riskier assets. Key prices of oil, gold and copper all gained, supporting the index's heavily weighted energy and materials sectors
• DOW +213.88 up after the Federal Reserve Bank of New York economic index showed expansion of manufacturing in and around New York state in June for the 11th straight month
• Dollar +.70c to 97.55cUS shrugging off mediocre North American data and tracking global stocks, commodities and other riskier currencies higher after successful European debt auctions raised confidence in the global economic recovery.
• Oil +$1.82 to $76.94US per barrel. as economists anticipated confirmation on Wednesday that U.S. stockpiles of oil declined for a third straight week.
Gold +$9.90 to $1,234.40 USD per ounce

Wal-Mart Canada issues rewards-based MasterCard
First of several financial services products Barbara Shecter, Financial Post • Tuesday, Jun. 15, 2010
Freshly-minted Walmart Canada Bank kicked off its foray into financial services with a rewards MasterCard credit card on Tuesday, but the low-price retailing giant is not ruling out bringing serious competition to the country’s handful of big banks through products and services such as loans and mortgages.
“Walmart will always look to save customers more so they can live better. That’s our mission,” said Trudy Fahie, chief executive of Walmart Bank Canada. “The bank offering will be no different than our retail offering.”
This month, Walmart won final approval from Canada’s banking regulator to open a full financial services business in Canada, something the successful retailer failed to accomplish in the United States amid fierce industry backlash.
In Canada, consumer groups have pushed for more competition in the banking sector, arguing that services charges and other costs are higher because the landscape is dominated by the country’s six big banks.
Read more: http://www.financialpost.com/news/Walmart+begins+Canadian+banking+push/3156480/story.html#ixzz0r13I2hFo