• TSX +8.49 beat a profit taking retreat due to China’s signal that it will let its yuan currency appreciate is a boost to airlines, insurers and consumer firms operating in China
• DOW -8.23
• Dollar -.30c to 97.62cUS
• Oil -$.64 to $77.82US per barrel.
Gold -$.17.50 to $1,239.70 USD per eased from record highs as safe-haven demand eased.
Garry Marr, Financial Post • Friday, May 7, 2010
Here’s one way to tackle the red-hot Canadian housing market: Get someone to buy you a home.
That someone would be your parents. According to a new survey from TD Canada Trust, 10% of Canadians are considering buying a condominium for their adult children. A year ago, only 5% of parents thought about buying the kids a condo.
“It could be something that the parents are looking at as a long-term source of income, letting their children live it in for now,” says Chris Wisniewski, associate vice-president of real estate and secured lending with TD.
It could also be that parents know condominium prices, like detached homes, have climbed to unprecedented levels, making it difficult for adult children to come up with a minimum 5% down payment, let alone the 20% needed to avoid costly mortgage default insurance.
Toronto condo research firm Urbanation Inc. says the average existing condominium in the city sold for $331,000 in the first quarter of 2010. Based on an average $369-per-square-foot price, that’s a 900-square-foot unit.
For a new one, prices averaged $443 per square foot in the first quarter, so about $400,000 for that same-sized condo.
Ms. Wisniewski says low interest rates are convincing parents to step up and buy their children homes. The condominium represents an attractive alternative to those parents because the costs are stable.
“They know what the maintenance costs will be,” she says. “[Parents] are thinking, ‘I’m not worried my children are too young to accept the responsibilities of home ownership if I set them up in an apartment. They don’t have to recognize the responsibilities of maintenance in an apartment.’ ”
Parents might also see a condominium as a way to get their kids to start a family. The survey found 36% of Canadians are willing to raise families in a condo.
“One of the reasons for that is affordability,” says Ms. Wisniewski. “Where are the new condominiums being built? They are being integrated in really nice existing neighbourhoods with all the infrastructure and all the schools and amenities.”
Brian Johnston, president of developer Monarch Corp.’s Canadian division, says he doubts families will ever be integrated into the condominium stock, but does agrees with the premise that parents are helping to buy housing for their children. He says parents often want to keep children close to them so they’ll chip in for a condominium in a nearby neighbourhood.
“How do we know they’re helping out? They tell us when they are writing the cheques for the deposit,” Mr. Johnston says.
Mr. Johnston said when it comes to recent immigrants to Canada, there is “lots of help” from family members to get that first home. “Condominiums are not inexpensive and they’re going to need that help, particularly if the younger ones have not had time to build up their finances.”
The builder has his own children and, based on today’s prices, he figures he’s going to have to lend a helping hand. “I don’t expect them to be able to buy a condo … before they are 30. That is just part of the deal [for parents],” says Mr. Johnston.
It’s not like Baby Boomers don’t have the cash. There have been endless studies that suggest the Boomers are set to inherit billions of dollars in the coming years from their parents.
Craig Alexander, deputy chief economist with TD Bank Financial Group, says there is no hard data to suggest how much parents are helping children, but they certainly have the financial capacity to lend a hand.
Canadians have $1.5-trillion invested in stocks and mutual funds with $500-billion of that figure in capital gains.
“The generation before the Baby Boomers were big savers and, as a consequence, there is a very large income transfer going to take place over time,” says Mr. Alexander, adding it makes sense that some of that money is going to end up in housing and real estate.
For first-time buyers facing rising rates and increasing prices, the helping hand couldn’t come at a better time — just ahead of tighter mortgage financing rules. Most of them probably hope their folks go from “considering” buying a condo to actually doing it.
Read more: http://www.financialpost.com/personal-finance/mortgage-centre/Invest+real+estate+your+kids/2999480/story.html#ixzz0rJ4pBdc4
Eric Lam, Financial Post • Monday, Jun. 21, 2010
What the @#$!?
In this occasional feature, the Post tells you everything you need to know about a complex issue. Today, Eric Lam explains what a yuan is, and why the Chinese government has decided to let it appreciate.
So what’s a yuan anyway? Is it the same as a renminbi?
The renminbi, aptly translated as “the people’s currency,” is the official name of the currency of the People’s Republic of China except for Hong Kong and Macau. Meanwhile, the yuan is the primary unit of said currency, along with corresponding terms for 10 cents and a cent. However, in common usage renminbi and yuan are basically interchangeable, kind of like how we also call the Canadian dollar the loonie. At the moment, a loonie gets you a little less than 7 yuan.
What exactly did the Chinese government announce over the weekend?
On Saturday night the People’s Bank of China said it had decided to “proceed further with reform of the RMB exchange rate regime and to enhance the RMB exchange rate flexibility.” It’s pretty vague, as grand pronouncements from central banks go, but the gist of the message is the PBoC has decided to let the renminbi’s value fluctuate compared with the U.S. dollar.
Which means?
Essentially, the renminbi has been pegged to the greenback at a fixed rate since September 2008, a move to protect China’s economy from the financial crisis. However, economists estimate this peg has undervalued the currency as much as 40% as China’s economy roared out of the gates following the crisis. While the renminbi’s value could go either way, it is likely to move in a positive direction in the near-term considering the strength of China’s economy and the relative weakness everywhere else.
Why should anyone care what China’s doing with its money?
A lot of stuff these days is made in China. The Chinese have been accused of manipulating their currency to artificially drum up business for Chinese corporations, and cut other countries out of the global export market. The United States was worried enough about this that it almost ignited a trade war with China earlier this year, after President Barack Obama threatened to impose punishing tariffs on Chinese exports.
Does this mean China caved, then?
Neither side is going to give an inch when the stakes are so high. Most economists do not believe China is simply caving in to the demands of the IMF and the United States. Rather, the move was made to slow runaway growth of China’s economy by making its exports more expensive. At the same time it is expected to boost the development of the consumer side of the economy as imports become cheaper. Also, the timing is likely not a coincidence, with the intense scrutiny and criticism China has faced regarding its currency expected to rise to a fever pitch at the G20 meetings in Toronto this weekend.
Read more: http://www.financialpost.com/news/What+yuan/3182698/story.html#ixzz0ra3prxkU
Tuesday, June 22, 2010
Monday, June 21, 2010
Financial Update For June 21, 2010
• TSX -18.38 record bullion prices kept a lid on otherwise broad-based losses across nearly all sectors.
• DOW +16.47
• Dollar +.55c to 97.92cUS
• Oil +$.39 to $76.79US per barrel.
Gold +$9.70 to $1,257.40 USD per ounce a new record high close for gold as investors bought the metal to protect wealth from Europe’s financial turbulence and on concern that the economic recovery isn’t as strong as expected. Gold, up 15% this year, is heading for its 8th straight weekly gain and its 10th consecutive annual gain, the longest winning streak since at least 1920
Seeing through home sellers' camouflage
by Stephanie Farrington, Bankrate.com
Mortgage rates have started to climb again. While that's probably a good sign for the economy, it may also be a wake-up call for people who have been hitting the snooze button on the time in which they hoped to buy a house.
If you're one of the many Canadians just entering the buyer's market, it's easy to get caught up in the critical aspects of home buying and forget some of the details. The clock is ticking, rates are rising and what matters in a house is location, location, location, right?
Yes and no. Location matters, but if you're not careful and observant when making your choice, you could get a great location and still end up with a money pit.
In some cases, people anxious to sell their home have been known to make a few cosmetic adjustments to hide the areas where their house might need a little extra care or even some serious repairs. Here's what to watch out for.
A fresh coat of paint in the basement
Dean Langner, a Canadian Residential Appraiser, or CRA, with Kors & Associates, in Victoria, has worked for 15 years as an appraiser and home inspector. During that time, he's seen a lot.
"One thing I find suspicious is a recently painted concrete floor and two or three feet of foundation in an unfinished basement," he says. "A lot of times, basements will leak, and they'll get that mineral stain around the concrete. Before they sell, some owners will cover it up with a coat of paint."
Langner says if you suspect a problem, go back for a second visit. "The only way to tell is to wait for a good heavy rain and visit again to check for moisture. If you're still uncertain, you can hire a plumber with a camera, and they can look down the pipes."
Checking pipes like this is not done in the course of a usual inspection, but Langner says it's worth making it a condition of the sale if you're really worried, because drainage problems can be very difficult to fix.
New sewage or drainage pipes
Around the foundation of every house is a permanent, porous piping system, called weeping tile, that acts as a drain and keeps water from entering your basement. "Over time, this pipe can fail. It can fill with debris and mud and stuff, and it is not easily fixed," says Langner.
In older houses, weeping tile isn't even made of pipes -- it's a series of half-round, clay tiles placed next to each other. So, if the house or the land shifts, you could be in for trouble.
The money you spend to have a plumber look at your drains could end up saving you thousands of dollars, to say nothing of the time and inconvenience of digging a trench around the perimeter of your house to replace the draining system.
A recently pumped septic tank
Jeffrey D. Leiser, author of "The Home Buying Inspection Guide" and "You Can Sell Your House: For Sale By Owner," has his own cautionary tales about plumbing. "The worst is when a home owner is hiding problems with a septic or sewer system. Having the septic tank pumped out prior to an inspection can give the appearance of a well working system," he says. "A failed septic system can cost well over $20,000 in replacement costs."
He says sewer systems can also be bladed -- which involves using a long tube with a rotating blade at one end to clean pipes and cut out blockages -- so that they appear to be working without backups. But, again, this is a short-term solution to an expensive, long-term problem.
Unusual smells
Your senses are your first and one of your best methods of avoiding deception. Mould smells like mould. It's easy to hide the visual signs of mould with paint, but it's a hard smell to mask. Don't be afraid to sniff around any area that makes you feel uneasy.
Suspicious piles and large plants
If something looks out of place, ask about it. A pile of bricks stacked against the side of the house could just be a pile of bricks, but it could also be a way of hiding a cracked foundation.
That newly planted yet mature tree in the back yard, the one in front of the retaining wall? Look behind it. Just as people will paint over stains, they sometimes landscape over cracked retaining walls or other problem areas.
Protect yourself
Follow your gut. If you think someone is lying to you, ask more questions and use your written offer as a means to get the truth. Contracts are there to protect you, and conditions of sale are a good way to ensure you're covered. If you're unsure about how to do this, ask your real estate agent or your lawyer, but do not go in unprotected. It's usually easier to avoid buying a problem than it is to fix it.
If, in the end, you find yourself left holding the bag despite your best efforts, where can you turn?
Danny Berehula, director of the Saskatchewan branch of the Better Business Bureau, or BBB, says the BBB will try to help, but the help they can offer is limited because the transaction does not typically take place between a business and an individual but rather between two individuals.
"We're another resource for them, but most people, when this happens, would probably want to call their lawyer," he says. "There are laws in place, and if it's a serious matter, then it will become a legal matter. They can use us as a mediation service, but once it becomes a legal issue, we stand out of it."
So, take your time and think through your purchase carefully. All of the experts agree on one point -- sometimes you have to accept a few problems to get your dream house, but it's best to understand how much the trouble your home might cost you before you sign on the bottom line. http://ca.finance.yahoo.com/personal-finance/article/bankratecanada/1597/seeing-through-home-sellers-camouflage
RBC to fund programs helping Canadians avoid credit problems
Garry Marr, National Post • Sunday, Jun. 20, 2010
You find yourself deep in debt and you can’t get out. Who is responsible? Is it the financial institution who handed you the rope you used to hang yourself? Or should you be looking in the mirror?
This past week, Credit Counselling Canada awarded Royal Bank of Canada with its creditor of the year award. “They won it for thinking outside the box,” says Patricia White, executive director of the Toronto-based group.
For years, not-for-profit credit counselling groups have received donations from banks to assist their debt management services. Credit counselling agencies help people organize their finances to avoid bankruptcy. But RBC is also giving money to financial education aimed at helping Canadians — especially younger ones — avoid debt problems.
Until they come up with a vaccine for taking on debt you can’t afford, a little preventative education is probably the next best thing.
“Hopefully, it will stop people from getting into trouble in the first place,” said Ms. White, noting other banks have also been supportive of counselling and education. “But RBC has stood up and said they will support this with some funding. We already go into high schools, but this will help us do more.”
With Father’s Day tomorrow, I can’t help think there is an important role for parents to play in terms of helping children avoid serious credit problems.
Ms. White agrees. “As a parent, I started educating my kids early. I said here’s 5¢ and tried to get them to understand the value of money.”
A survey out of the United States this week by the National Foundation for Credit Counseling found 41% of Americans say they learned their personal finance skills from their parents. Is there any reason to believe Canadian children are any different?
The funny part is, the same U.S. survey asked parents to rate their own financial literacy and 34% gave themselves a grade of C, D or an F. At least they are being honest.
The U.S. group points out that children learn by watching. If they see you saving, they’ll save. If they see you unorganized with your expenses, guess what? The group also suggests involving your children in family financial decisions.
Jeff Bennett, managing director of RBC Collections, says educating consumers earlier in their lives is something the bank is interested in promoting. “We are trying to separate the two important components the not-for-profit credit counselling firms are doing — the educational and financial literacy component from the debt management and budgeting component,” he says.
“We’d like to move things further up in the life cycle to keep people out of trouble, rather than helping them once they are in trouble.”
While some people blame the high interest rates the banks charge on things like credit cards for getting them into trouble, Mr. Bennett says financial institutions have no interest in seeing customers wrestle with debt problems.
“The best thing we can have is a customer who understands the financial requirements of his life and makes plans for the future. Someone who doesn’t have problems is a happy client and a client who will refer people to us,” he says.
Everybody has a role in financial education and Mr. Bennett says it’s never too early to begin teaching about money.
Read more: http://www.financialpost.com/news/fund+programs+helping+Canadians+avoid+credit+problems/3166884/story.html#ixzz0rU9rbZkJ
• DOW +16.47
• Dollar +.55c to 97.92cUS
• Oil +$.39 to $76.79US per barrel.
Gold +$9.70 to $1,257.40 USD per ounce a new record high close for gold as investors bought the metal to protect wealth from Europe’s financial turbulence and on concern that the economic recovery isn’t as strong as expected. Gold, up 15% this year, is heading for its 8th straight weekly gain and its 10th consecutive annual gain, the longest winning streak since at least 1920
Seeing through home sellers' camouflage
by Stephanie Farrington, Bankrate.com
Mortgage rates have started to climb again. While that's probably a good sign for the economy, it may also be a wake-up call for people who have been hitting the snooze button on the time in which they hoped to buy a house.
If you're one of the many Canadians just entering the buyer's market, it's easy to get caught up in the critical aspects of home buying and forget some of the details. The clock is ticking, rates are rising and what matters in a house is location, location, location, right?
Yes and no. Location matters, but if you're not careful and observant when making your choice, you could get a great location and still end up with a money pit.
In some cases, people anxious to sell their home have been known to make a few cosmetic adjustments to hide the areas where their house might need a little extra care or even some serious repairs. Here's what to watch out for.
A fresh coat of paint in the basement
Dean Langner, a Canadian Residential Appraiser, or CRA, with Kors & Associates, in Victoria, has worked for 15 years as an appraiser and home inspector. During that time, he's seen a lot.
"One thing I find suspicious is a recently painted concrete floor and two or three feet of foundation in an unfinished basement," he says. "A lot of times, basements will leak, and they'll get that mineral stain around the concrete. Before they sell, some owners will cover it up with a coat of paint."
Langner says if you suspect a problem, go back for a second visit. "The only way to tell is to wait for a good heavy rain and visit again to check for moisture. If you're still uncertain, you can hire a plumber with a camera, and they can look down the pipes."
Checking pipes like this is not done in the course of a usual inspection, but Langner says it's worth making it a condition of the sale if you're really worried, because drainage problems can be very difficult to fix.
New sewage or drainage pipes
Around the foundation of every house is a permanent, porous piping system, called weeping tile, that acts as a drain and keeps water from entering your basement. "Over time, this pipe can fail. It can fill with debris and mud and stuff, and it is not easily fixed," says Langner.
In older houses, weeping tile isn't even made of pipes -- it's a series of half-round, clay tiles placed next to each other. So, if the house or the land shifts, you could be in for trouble.
The money you spend to have a plumber look at your drains could end up saving you thousands of dollars, to say nothing of the time and inconvenience of digging a trench around the perimeter of your house to replace the draining system.
A recently pumped septic tank
Jeffrey D. Leiser, author of "The Home Buying Inspection Guide" and "You Can Sell Your House: For Sale By Owner," has his own cautionary tales about plumbing. "The worst is when a home owner is hiding problems with a septic or sewer system. Having the septic tank pumped out prior to an inspection can give the appearance of a well working system," he says. "A failed septic system can cost well over $20,000 in replacement costs."
He says sewer systems can also be bladed -- which involves using a long tube with a rotating blade at one end to clean pipes and cut out blockages -- so that they appear to be working without backups. But, again, this is a short-term solution to an expensive, long-term problem.
Unusual smells
Your senses are your first and one of your best methods of avoiding deception. Mould smells like mould. It's easy to hide the visual signs of mould with paint, but it's a hard smell to mask. Don't be afraid to sniff around any area that makes you feel uneasy.
Suspicious piles and large plants
If something looks out of place, ask about it. A pile of bricks stacked against the side of the house could just be a pile of bricks, but it could also be a way of hiding a cracked foundation.
That newly planted yet mature tree in the back yard, the one in front of the retaining wall? Look behind it. Just as people will paint over stains, they sometimes landscape over cracked retaining walls or other problem areas.
Protect yourself
Follow your gut. If you think someone is lying to you, ask more questions and use your written offer as a means to get the truth. Contracts are there to protect you, and conditions of sale are a good way to ensure you're covered. If you're unsure about how to do this, ask your real estate agent or your lawyer, but do not go in unprotected. It's usually easier to avoid buying a problem than it is to fix it.
If, in the end, you find yourself left holding the bag despite your best efforts, where can you turn?
Danny Berehula, director of the Saskatchewan branch of the Better Business Bureau, or BBB, says the BBB will try to help, but the help they can offer is limited because the transaction does not typically take place between a business and an individual but rather between two individuals.
"We're another resource for them, but most people, when this happens, would probably want to call their lawyer," he says. "There are laws in place, and if it's a serious matter, then it will become a legal matter. They can use us as a mediation service, but once it becomes a legal issue, we stand out of it."
So, take your time and think through your purchase carefully. All of the experts agree on one point -- sometimes you have to accept a few problems to get your dream house, but it's best to understand how much the trouble your home might cost you before you sign on the bottom line. http://ca.finance.yahoo.com/personal-finance/article/bankratecanada/1597/seeing-through-home-sellers-camouflage
RBC to fund programs helping Canadians avoid credit problems
Garry Marr, National Post • Sunday, Jun. 20, 2010
You find yourself deep in debt and you can’t get out. Who is responsible? Is it the financial institution who handed you the rope you used to hang yourself? Or should you be looking in the mirror?
This past week, Credit Counselling Canada awarded Royal Bank of Canada with its creditor of the year award. “They won it for thinking outside the box,” says Patricia White, executive director of the Toronto-based group.
For years, not-for-profit credit counselling groups have received donations from banks to assist their debt management services. Credit counselling agencies help people organize their finances to avoid bankruptcy. But RBC is also giving money to financial education aimed at helping Canadians — especially younger ones — avoid debt problems.
Until they come up with a vaccine for taking on debt you can’t afford, a little preventative education is probably the next best thing.
“Hopefully, it will stop people from getting into trouble in the first place,” said Ms. White, noting other banks have also been supportive of counselling and education. “But RBC has stood up and said they will support this with some funding. We already go into high schools, but this will help us do more.”
With Father’s Day tomorrow, I can’t help think there is an important role for parents to play in terms of helping children avoid serious credit problems.
Ms. White agrees. “As a parent, I started educating my kids early. I said here’s 5¢ and tried to get them to understand the value of money.”
A survey out of the United States this week by the National Foundation for Credit Counseling found 41% of Americans say they learned their personal finance skills from their parents. Is there any reason to believe Canadian children are any different?
The funny part is, the same U.S. survey asked parents to rate their own financial literacy and 34% gave themselves a grade of C, D or an F. At least they are being honest.
The U.S. group points out that children learn by watching. If they see you saving, they’ll save. If they see you unorganized with your expenses, guess what? The group also suggests involving your children in family financial decisions.
Jeff Bennett, managing director of RBC Collections, says educating consumers earlier in their lives is something the bank is interested in promoting. “We are trying to separate the two important components the not-for-profit credit counselling firms are doing — the educational and financial literacy component from the debt management and budgeting component,” he says.
“We’d like to move things further up in the life cycle to keep people out of trouble, rather than helping them once they are in trouble.”
While some people blame the high interest rates the banks charge on things like credit cards for getting them into trouble, Mr. Bennett says financial institutions have no interest in seeing customers wrestle with debt problems.
“The best thing we can have is a customer who understands the financial requirements of his life and makes plans for the future. Someone who doesn’t have problems is a happy client and a client who will refer people to us,” he says.
Everybody has a role in financial education and Mr. Bennett says it’s never too early to begin teaching about money.
Read more: http://www.financialpost.com/news/fund+programs+helping+Canadians+avoid+credit+problems/3166884/story.html#ixzz0rU9rbZkJ
Friday, June 18, 2010
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
• 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
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