Tag Archives: Canada

Canadian Dollar

U.S. Economic Growth Pulls Canadian Dollar Out of Slump

The U.S., Canada’s largest trading partner, experienced a the second greatest boost in its manufacturing industry in over two years last December that drove the Canadian dollar against most of its peers.

The loonie fell against the greenback after momentarily rising with American claims for unemployment benefits falling to their lowest in a month. Increased exports will determine the strength of economic growth, according to the Governor of the Bank of Canada, Stephen Poloz. Canada’s biggest exporting commodity, crude oil, drop to the lowest level in a month.

Economic analysts are looking to the U.S. economy for clues on the improvement of the Canadian dollar on the expectation that Canada can get a lift on an outperforming American economy. In 2013 the Canadian dollar lost an overall 6.6 percent, experiencing its biggest decline in five years.

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Canadian Stocks Maintain Gains on Manufacturing Expansion

Manufacturing reports from the U.S., Europe, and Asia showed greater expansion than anticipated creating gains for industrial companies and energy producers and driving Canadian stocks up for a fourth day, the longest run in nearly six weeks.

Air Canada, which is the best-performing stock in Standard & Poor’s/TSX Composite Index (SPISX) this year, gained 4.1 percent. Talisman Energy Inc. increased 4.5 percent following an agreement to appoint two board members backed by investor Carl Icahn, a billionaire activist, to avoid a proxy fight. Nevertheless, companies dealing id gold, such as B2Gold Corp. and Semafo Inc. declined 11 percent as the precious metal fell, prolonging the worst monthly performance since June.

The general index S&P/TSX advanced 24.17 points or 0.2 percent, recording its longest-maintained advance since October. The trading on the index’s stock reflected the 30-day average. For the month of November the S&P/TSX closed 0.3 percent up with third-quarter data indicating accelerating expansion in the Canadian economy, alongside global improvement. November also marks the fifth consecutive month of gains for the index, the longest climb in over a year.

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No Trust in Toronto’s Mayor – Time To Step Down?

Toronto Mayor Rob Ford has refused to resign. It doesn’t make a difference that the council took special measures to strip him of most of his powers. The mayor of Canada’s largest city has been under pressure to resign since he admitted earlier this month having once smoked crack cocaine while in “a drunken stupor”. Earlier, Ford, 44, vowed “outright war” on the city councillors who had voted to further limit his authority. The country’s Prime Minister Stephen Harper said the allegations against Mr Ford were “troubling”. These are a lot of scary words. What’s really troubling is that Ford denied ever touching the stuff only a few months back. He is now also facing claims that he made lewd propositions to a female staff member, used racially abusive language, threatened staff… and consorted with an alleged prostitute! No wonder American night time talk shows are all over this story.

Ford’s office budget has already been reduced by 60%, his staff is down from 19 to 8, and many of his powers have been transferred to his deputy mayor – who cannot be dismissed now that the council has already voted to prevent this. Ford, does not even have his emergency powers left. Yet, despite the scandal, the mayor does not seem inclined to shun the spotlight. Whatever news channel you turn on these days, there he is.

It would be naïve to think that this kind of behaviour never goes undetected behind-the-scenes in governments of other countries, however in a nation as conservative as Canada, the law abiding citizens clearly will not stand for it. Some Torontonians have appreciated the changes and fiscal approach that Ford has made and taken since he came into power, but, all things considered, isn’t it time for him to step down? It’s not just the fact that it seems likely now that he actually has done all those things he has been accused of, but more importantly that he has covered it all up - even lied about it. How can he expect us to believe that he has now indeed given up drinking? Can Canadians really put their trust in a Mayor who is untruthful?

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Alberta Sales Boost AutoCanada’s Shares and Dividends

AutoCanada Inc. (ACQ), the largest Canadian chain of car dealerships to be publicly traded, is boosting sales by providing trucks to oil-workers is Alberta in order to raise capital for higher dividends and to buy out competitors.

The shares of the company, which is based in Edmonton, Alberta, soared 187 percent in a year advancing to a record C$42.95 on 11th November. Previously, the company announced that its profit increased 61 percent in the third quarter as compared to the previous fiscal year, boosting its dividend for the 11th consecutive quarter.

The company’s Chief Executive Officer, Pat Priestner, said “We are in a good market, good economy. We sell a lot of trucks and sports utility vehicles, that’s a big help, because of where we are, more so in British Columbia and Alberta.”

New car sales are set for a record this year in Canada, following the end of the most recent recession in 2009 and a lowering of financing rates. Despite Bank of Canada’s Governor Stephen Poloz warning that rising home prices and record consumer debts have been creating an imbalance that could plague the country’s economy, consumer spending has only been increasing.

The company’s revenue for the third quarter jumped 35 percent to C$403.5 million compared to the same period last year, as shown in the earnings report released on 7th November. The value of shares has risen to 51 cents from previous 34 cents, while the company increased its dividend from 20 cents to 21 cents, over double the 10-cents payout offered in mid-2011.

Brands like Audi and Fiat are amongst AutoCanada’s 32 franchised dealerships which number 1,500 employees, sell about 30,000 cars, and handle hundreds of thousands of repairs in a year. The company’s expansion plan included two Chrysler outlets in Calagary and Winnipeg, Manitoba, last quarter and foresees the addition of another four to seven dealers in the next year and a half.

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Canadian Stock Rise on Precious Metals’ Rally

The stocks of Canadian producers of precious metals received a boost after negative U.S. unemployment data were released yesterday and Janet Yellen indicated intentions for continued stimulus in her testimony in the U.S. senate as the nominee for Chairman of the Federal Reserve.

B2Gold Corp. rallied 5.1 percent with the price of gold reversing on five days of losses. Pan American Silver Corp. climbed 7.8 percent as silver gained. CGI Group Inc. (GIB/A), while Agnico Eagle Mines Ltd. gained 4.5 percent.

The raw-materials industry experienced a general lift with stock rising 1 percent in 8 out of 10 industries. Total trading volume exceeded the 30-day average by 11 percent.

The longest-running slump in gold since August broke off yesterday as gold jumped 1.4 percent The S&P/TSX Gold Index increased 2 percent with 22 of its 24 members advancing. Pan American Silver ralled 7.8 percent and Silvercrorp Metals Inc. increased 3.5 percent.

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What’s So Special About EU-Canada Trade Deal?

The European Union and Canada are on the verge of reaching a breakthrough trade pact which will deeply integrate the two economies. With world economies already intertwined, this particular agreement will inevitably be of major significance, with a host of long-term benefits and repercussions to follow. The pact will eliminate tariffs on almost all goods and services and it is estimated that it will boost bilateral trade in goods and services by 20% to 25.7 bln euros a year. It is being touted as “the biggest deal the country has ever made”, setting a precedent for a similar and potentially even bigger deal to reduce transatlantic barriers to business between Europe and the United States. Pending approval by the 13 Canadian provinces and 28 EU governments, this already sets a positive economic tone and example for moving forwards. With prospects of increased trade, employment and investment, this may just be the best medicine for the EU economy. Read more…

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Canadian Dollar

Loonie Drops as Rates Seem Renegotiable

The Canadian dollar took its hardest hit since June when the Bank of Canada talked about the need for future increases in the interest-rates, an issue that dates to more than a year back, citing greater slack in the economy. The policy unites with the decisions of other central banks to continue rather than retract easy-money policies.

Governor Stephen Poloz kept the rate on overnight loans between commercial banks at 1 percent for the 25th consecutive meeting, as had been earlier forecast by economists, which caused the currency to slip against the majority of its 16 trading peers. Inflation levels are set to remain below 2 percent until the end of 2015, an extension of two quarters since last prediction in July, risking greater importance on further risks.

The CAD fell 0.9 percent to C$1.0382 against the USD at 5 p.m. in Toronto yesterday

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Keystone – The Pipeline to Prosperity

Keystone – The Pipeline to Prosperity

After the U.S State Department recently released a positive evaluation of the planned Keystone pipeline, several special interest groups and politicians begun their lobbying efforts in a bid to persuade president Obama to ratify the agreement with Canada.

The 1,179-mile, 36-inch-diameter crude oil pipeline system would transport roughly 830,000 barrels of synthetic crude oil per day and diluted bitumen from Alberta, Canada to numerous destinations in the United States.

The primary reason for the delay of the pipeline is the influential environmental movement. The movement’s main worry is that any pipeline spill would contaminate air and critical water supplies and cause damage to the region’s wildlife.

However, the pipeline would significantly reduce American dependency on foreign oil, especially from hostile countries such as Venezuela and some Arab countries – according to some estimates – by a whopping 40 per cent. Moreover, the introduction of the pipeline would provide several thousands of highly paid jobs for the U.S. economy which is in desperate need of more jobs.

The American economy needs the pipeline and the jury is still out on what the possible environmental effects of the pipe would have. The fact remains, the Keystone pipeline would vastly reduce American dependency on hostile countries.

Indeed, it seems that the well-being of Americans is secondary to the environmentalist movement which views nature as holy. All decent people should be concerned about the state of the environment, but a movement that ignores human realities should not influence policies that are harmful to the individual.

There are many great individuals who are worried about the environment and indeed the fight over the pipeline is battled mainly on ethical grounds; one side defends the necessity of the highly productive pipe, spewing out the most important substance needed to run a modern industrial economy, while the vociferous opposition argues that running such an economy would take place at the expense of wildlife.

Pantheism is the modern-day religion which seems to impact policy positions that often override common sense positions. Indeed, the pipeline issue comes down to one question: does one prefer the well-being of animals over the well-being and prosperity of human beings?

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