Home - banknews.tv


Recap of recent real estate news in Canada. Tiff Macklem and market exuberance, cottage country price appreciation and the rise of lumber prices.


Bulls versus the bears, this week in the Canadian real estate industry.


We a living a ponzi real estate market and the economy is at risk. Yet Doug Porter, economist BMO, is on record as saying Candian\'s want to pay more for houses. Yes, you can\'t make this stuff up. This video discusses the issues related to Porter\'s statement and explains why he is wrong.


2020 was a record year, except for condos. Montreal REM sites the exception to this rule. This video shares insights regarding the Canadian real estate segment.


Taxes are going up, TO condo prices are going down and recreational property up 15% to 40% in the Canadian market.


The mortgage debt to income ratio declined despite the pandemic. In this issue I discuss real estate stalling and immigration's impact on home prices.


This video is intended to give viewers an understanding of the economic ideas behind Canada's potential housing bubble. This video also explains why Siddal, President and CEO of the CMHC, was likely pushed from his post.


October 14th real estate report describing the issues in the market the last two weeks.


Overview of Canadian banking industry. This multi-part series looks at issues facing Canadian banks from a variety of angles. Part 1 examines the types of banks and scale using ROE and EBITDA as measures.


'Pros on the Go', a Fierce Tartan company are seeking insurance partners to pilot its new solution for streamlining the claims process.


Using financial data, Mark Sibthorpe compares the performance of TD bank to its rivals. TD grew faster in 2017 than its rivals, but was cited for aggressive sales practices.


Mr. Michael R. King, Tangerine Chair in Finance and Co-Director, Scotiabank Digital Banking Lab / Ivey Business School at Western University


This video covers XE.com's presentation at the AI, Big Data and Analytics event which took place in Toronto February 7/8, 2018. Cecelia Tamez and Jean Louis provide insights into their evolution and winning strategy.


Greenpeace's campaign to stop TD financing the oil sands is delusional. Trillions of dollars are at stake for the banks and the Canadian economy. This video explores the related financial issues.


This video provides an overview of the main differences between Canada's approach to overland flooding versus the US approach.


Canadian bank overview part 5, medium-large banks. Banks include Manulife, Tangerine and Laurentian Bank.


Canadian banking industry overview of Canadian Tire Bank, Presidents Choice Financial, Equitable Bank, B2B Bank


Overview of small-medium size banks in Canada. Banks covered include Versabank, Hollis Bank, Equity Bank and Caisse Populaire Acadienne.


Review of small banks including Bridgewater,Vancity Bank, Concentra, Wealth One, Zag...


Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.


RBC invested $24 million into Wave Technologies and now they will roll out Waves accounting, invoicing, reporting and billing platform to SMEs.


Canadian banks have increased their deposits by $127 billion since the start of the pandemic. This video uses charts to show which banks gained the most and how.


About

About BankNews TV: financial services industry monitor (FSIM), analytics and research

Latest news and events for Canadian financial service companies, analytics, fintech and AI. BankNews.TV provide the latest technology news and reports for banks and insurance companies looking to compete in a rapidly changing market.

Analytical information and financial information related to technogies that can change your business.

Select financial data to upload:

Please download and complete the data template that you need to upload. See financial data upload section above for details of how this data will be used.

Research

Real estate report: October 30th, 2020  

fsim.ca/docs/Oct30rereportv1.pdf

Mark Sibthorpe

The big buzz in real estate recently is Mark Carney being scooped up by Brookfield. This means more juice for riskier borrowers. Brookfield, a huge player in real estate, both residential and commercial, recently bought its remaining shares from Sagen (Genworth MI Canada), which values the company at $3.8 bn.


VersaBank’s New High-Security VPN Proving Especially Valuable During COVID-19 Pandemic  

fsim.ca/docs/TailscaleReleaseMarch30FINAL.pdf

Press Release

VersaBank (TSX:VB) (“VB” or the “Bank”) today announced the implementation of its new high security Virtual Private Network (VPN) remote access software solution, developed in partnership with Tailscale, a leading provider of secure network connectivity solutions. The software enables VersaBank employees to securely and directly connect to all the Bank’s servers across multiple offices and cloud providers, using two factor authentication and with every connection encrypted. The Tailscale-based solution uses the Office 365 setup and Windows client/server applications that the Bank already had in place.


2014 FSIM when Bernanke visited Montreal  

fsim.ca/docs/MockBernanke.pdf

Mark Sibthorpe

Considering Bernanke is hated by the Republicans and hated even more by the Democrats, and is currently under scrutiny for saving AIG but not Lehman, (in hindsight) with respect to issues over solvency vs liquidity, the Montreal lovefest attended by 1,100 people yesterday must have been a welcome respite. Click the link to read the entire 2014 report.


Eisman's big Canadian bank short  

fsim.ca/docs/eisman2.pdf

Mark Sibthorpe

I have been reporting on Steve Eisman's short position for quite some time.  As the analyst reaction to Eisman shows (link below), Eisman has taken a lot of heat for shorting Canadian banks. Instead of capitulating, in September 2019 he publicly disclosed the fact that he added Canadian Tire to his position, He explains the rationale for this in a BNN interview late 2019. Essentially, his big concern with respect to banks was non-performing loans in Alberta. He feels Canadian bank CEOs are not prepared for a credit cycle. He specifically referenced ATB (a private bank) in discussing his concerns. Looking at the numbers today, my guess is that he has made off like a bandit.


VersaBank Beta-Testing Its New, High Volume Mortgage Finance App   

fsim.ca/docs/VBCortelMortFinanceAppFeb62020.pdf

Press Release

VersaBank announces it is initiating beta-testing on its newly developed high-volume mortgage software app with the Cortel Group, one of Canada’s largest home and condominium builders. The app, named “Direct Connect”, was designed to facilitate and significantly reduce the lengthy finance approval process typically experienced by home buyers when visiting home and condo pre-construction sales offices.


How and why you need to defend your brand against disruptors  

Mark Sibthorpe

Technology, and being open to opportunities, has preempted transformation in banking. At the top of change are Mint, PayPal and ApplePay; three examples of transformative solutions that are now ubiquitous. On the horizon: Uber and Google, both having recently announced partner based banking services. Further down in the plumbing is Duca Impact Labs, Versabank, and Revolut. This report shows how cost conscious FIs can, not only stay relevant in the face of adversity, but punch well above their weight. All thanks to creative thinking and the ongoing commoditization of technology.


Kick the can(nomics)  

fsim.ca/docs/Kick.pdf

Mark Sibthorpe

Canada has used consumer debt to provide life support to the economy. This strategy which basically pushed the day of reckoning to the next government was old back in 2014, and now is well past its sell-by-date. Recognizing this, and desperate to keep the economy out of a recession, Trudeau is spending more money now than any government in Canadian history. This report disusses a possible alternative.


ScoreCard Bill Morneau, Canada's Minister of Finance  

fsim.ca/docs/ScoreCardMorneau.pdf

Mark Sibthorpe

This report is a scorecard I designed in order to rank the performance of the current Minister of Finance, Bill Morneau. I do regular rankings because, otherwise, I cannot measure the performance in a meaningful way. The scoring is based on a variety of metrics as detailed on the ‘score-table’ on page 3. Examples of the criteria and weighting include:

 


Observations and overview of 2018 NB flood support from government and insurance companies.  

fsim.ca/docs/Observations and overview of 2018 NB flood support from government and insurance companies..pdf

Mark Sibthorpe

 


Flood aftermath is linked to post traumatic stress. Here are some findings from a study conducted by Queensland University following a flood:

"The findings showed that aftermath stress contributed to poor mental health outcomes over and above the flood itself, prior mental health issues and demographic factors," Ms Dixon said.

 

"Aftermath stress was the strongest predictor of post-traumatic stress symptoms with 75 per cent of people saying the most difficult aspect was the aftermath and dealing with insurance companies," she said.

 

With this in mind, I felt it was important to understand how New Brunswick flood victims were treated.

 


Update Argentina: a sign of the times  

fsim.ca/docs/Update Argentina_ a sign of the times.pdf

Mark Sibthorpe

Argentina is in the news daily because the situation is dire, and may be an indication of further contagion. The most dramatic story that speaks of the a leading cause of its troubles was the recent arrest of the public works secretary, Jose Lopez. June 15th he was caught hiding millions in cash in a monastery. No this is not a plot for a comedy.


Summary of Canada's flood news, 2017 to present  

fsim.ca/docs/Summary-of-flood-news-2017-present.pdf

Mark Sibthorpe

This report covers flood news in Canada from 2017 to present and highlights the relevent issues for home-owners and the insurance industry.


Banking on Pot  

fsim.ca/docs/c10191_banking-on-pot.pdf

SBS

As states across the US legalize marijuana for both medicinal and recreational purposes, it has fueled a growing industry of marijuana related businesses (MRBs).


Canadian banking industry overview  

Mark Sibthorpe

The industry overview is divided into 5 parts:

Introduction
Small banks
Small medium sized banks
Medium sized banks
Medium large banks


2014 Mobile payments the Apple pay way  

fsim.ca/docs/Mobile_Payments_Apple_Pay_2014.pdf

Mark Sibthorpe

With Walmart Pay about to userp Apple Pay, I thought I would share my 2014 book on mobile payments and loyalty. The guilde was written for Merchants that want to understand loyalty, credit, mobile payments and Apple Pay, but anyone involved with credit and loyalty might find it useful.
The book is a prelude to Walmart leaving MCX, and chronicles the evolution that led to Walmart Pay. There is an extensive case study of Walmart that looks into its efforts to become an ILC and to avoid paying credit card transaction fees ('merchant discount').
It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and industry facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives. 


Death to bitcoin, long live the blockchain   (See full report)

Mark Sibthorpe

Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.


TD bank industry conduct  

fsim.ca/docs/tdind2.pdf

Mark Sibthorpe

TD’s share price recently collapsed by $7 bn in one day due to CBC’s allegations of aggressive selling tactics. A huge fall from a bank that was trading at a premium as recently as January. This was even before the most recent allegation of TD attempting to avoid paying taxes on advertising.
This report chronicles the events leading up to the collapse, shows TD's performance, analyses other related issues.


Book review: Back from the Brink  

fsim.ca/docs/backbrink.pdf

Mark Sibthorpe

This is a book review of the book Back from the Brink by Paul Halpern, Caroline Cakebread, Christopher C. Nicholls and Poonam Puri.


Footnote 151  

fsim.ca/docs/footnote151.pdf

Mark Sibthorpe

Footnote 151 implies an important regulatory change related to derivative contracts. It means that US Banks will not be required to hold as much capital against commodities. If you want to understand the implications of this regulatory change in more detail, see the enclosed related article detailing the changes. For contextual purposes, I have also included two Rolling Stones Magazines reports from 2010 and 2014 that chronicle the role large US banks have played in manipulating commodities. You might question the credibility of these sources, but rest assured, these reports are based on United States Senate hearings which outline the issues in a 396 page report related to the implied risks. 


Save the Canadian economy now  

fsim.ca/docs/helecopter-money.pdf

Mark Sibthorpe

Consumer debt spending appears to have insulated Canada from the worst of the credit crisis, but now the alarming magnitude of consumer debt ($1.92-trillion) could exacerbate a day of reckoning.
This report assesses the issues at hand and recommends the solution to get Canada's economy on track.


Reasons financial service companies should consider gamification  

fsim.ca/docs/Gamfin.pdf

Mark Sibthorpe

Gamification of business processes resulted on Mint.com growing to 10 million users within 4 years. This report explains how.


National Bank Special Report  

fsim.ca/docs/NatBSpec.pdf

Mark Sibthorpe

According to Bloomberg, National Bank of Canada will take a C$64 million ($48 million) restructuring charge in the fourth quarter and said its investment in Maple Financial Group Inc., which is being probed by German regulators, may be at risk of a “substantial loss.”


Will Canadian banks charge companies for deposits?  

fsim.ca/docs/depgrowthimpact2.pdf

Mark Sibthorpe

In light of today’s possible rate cut, this report discusses how a bank rate cut and capital ratio pressure could precipitate negative corporate deposit interest rates in Canada.


Canadian Tire's (CTC) - Canadian Tire Financial Services (CTFS) Scotia deal overview and risk assess  

fsim.ca/docs/ctfsfinal.pdf

Mark Sibthorpe

Review of the Canadian Tire Financial Services deal with Scotiabank, risks, opportunity and benefits.


Finance minisiter scorecard August 26, 2015  

fsim.ca/docs/Scorejo-August-2015.pdf

Mark Sibthorpe

This report looks at Joe Oliver, minister of finance’s progress to date, and assigns a grade to his government’s performance to date.


Xtreme Branch  

fsim.ca/docs/xbranch.pdf

Mark Sibthorpe

Branches are evolving to meet the digital age. This documents tracks the evolution with real-world examples.


Canadian Nudge  

fsim.ca/docs/nudge.pdf

Mark Sibthorpe

Whether he knew it or not, Tom Reid, a senior vice-president at Sun Life, made a case for the behavior modification concept ‘Nudging’ when he recently proposed auto-enrolling Canadians in his company’s pension plans. Sun life cover 1.2 million Canadians, about 60% of the eligible employees.
According to Reid,


CWB cause for concern  

fsim.ca/docs/cwbupdate.pdf

Mark Sibthorpe

In an earlier report BankNews.TV expressed concerns about CWB. Here are 5 charts that show cause:
1. First earnings drop in years;
2. Deposits dropping which will increase cost of funds in the future.


BNTV Overview  

fsim.ca/docs/overviewpdf.pdf

BNTV

BankNews.TV Publishing Corp services overview document:

  • Analytics
  • Financial services industry monitor (FSIM) industry briefings and developments reports
  • Research


Challenger banks not a threat to big banks  

fsim.ca/docs/challenger.pdf

Mark Sibthorpe

This report looks at Canadian challenger banks (apart from merchant led banks) and explains why they have not threatened larger institutions. It also looks at ways in which these upstarts have achieved success.


Gamification of financial data project  

fsim.ca/docs/GamingEventProposal-printsample--en-final.pdf

Mark Sibthorpe

This document contains details on how BankNews.TV is helping kids learn programming via gamification of financial data.


The impact a rate rise will have for Canadian banks  

fsim.ca/docs/irr-f.pdf

Mark Sibthorpe

Canadian banks have made money throughout the credit crisis, but this trend may be about to reverse. The rational supporting this prediction is that revenue has grown despite a declining net interest margin (NIM). It has grown in spite of this fact because Canadian debt (loan lease volume) has risen significantly, as shown in chart 2.

This report looks at the issues facing Canadian banks in the event of a Bank Rate rise.  


FIFA: the new goldenballs  

fsim.ca/docs/goldenballs.pdf

Mark Sibthorpe

Yesterday, the Attorney General of Switzerland (OAG) opened criminal proceedings related to the FIFA scandal. This report outlines some of the events related to the criminal investigation, with a particular focus on banking.


Scorecard Minister of Finance: JIm Flaherty  

fsim.ca/docs/Scorecard Min Fin Flaherty April 8 2014.pdf

Mark Sibthorpe

March 18, Finance Minister Jim Flaherty resigned from cabinet after having endured a difficult year due to health issues. This report looks at his legacy and attempts to grade his government’s performance to date.


Sample RFP for a Loyalty Program  

fsim.ca/docs/sample RFP for a loyalty program.pdf

Mark Sibthorpe


Merchants extend financial services  

fsim.ca/docs/merchantfs.pdf

Mark Sibthorpe

Merchant led financial services are growing in importance once again. This is exemplified in the ongoing UK rivalry between ASDA, Sainsbury and Tesco. Together these merchant/financial service companies provide the backstop for three different approaches for merchants looking to extend their financial services.


Hot Money: real-estate  

fsim.ca/docs/hotmoney.pdf

Mark Sibthorpe

Canadian and London real estate, like Macau, may also be a convenient means for China’s elite to move money offshore; with the deleterious effect of driving up home values. Louise Shelley`s research concurs. In a published paper written for the National Defense University, Shelley argues that money laundering in real estate (MLRE) increases prices.


Currency Cheat Sheet: a guide for the rest of us  

fsim.ca/docs/currencycheatsheet.pdf

Mark Sibthorpe

Readers of this document will be presented with monetary policy issues and facts
that show the USD will likely remain the dominant reserve currency, despite
questionable Chinese practices, record US debt levels, and a shaky economy.


Riches to Rags? Summary of possible risks for Genworth MI CANADA, INC.  

fsim.ca/docs/gq4risk.pdf

Mark Sibthorpe

Genworth had its Q4 2014 earnings call. Genworth own about 30% of the mortgage default insurance in Canada. Not surprisingly, the earnings call became focussed on Alberta; and for good reason, with 20% of its outstanding insured mortgage balance in Alberta, sensitivity to the oil shock and how Genworth plan to manage related risks were discussed in detail.


Canadian Western Bank Competitive Forecast  

fsim.ca/docs/cwbf.pdf

Mark Sibthorpe

Based on historical financial data (see detailed charts pages 5-8), the oil based recession in Alberta, and comparison against two of its peers, this document outlines my observation with respect to CWB’s future performances.


Liquid Canada: the tipping point  

fsim.ca/docs/Liquid.pdf

Mark Sibthorpe

This report examines liquidity issues in the Canadian financial service industry.


Bank Fees  

fsim.ca/docs/Bank fees.pdf

Mark Sibthorpe

Recently the CBC and The Globe and Mail both reported on what has been referred to as a consumer “bank fee outcry”. CBC compares banks to cable and phone companies, standing accused of trying to gouge customers with service fees. The backlash appears to have originated in conjunction with the NDP and the Consumers Council of Canada which argues that there is anxiety ‘among consumers about banking fees’.


Cheap Oil Report  

fsim.ca/docs/co2.pdf

Cheap oil has pushed the Bank of Canada's governor, Stephen Poloz onto a slippery slope. For some background on this, take October 22nd, when Poloz bid farewell to forward guidance, resulting in yesterday's surprise rate cut. A cut that has enraged TD and other banks, which see this as eroding profits.
 


Canada's Economy, a strategic solution  

fsim.ca/docs/ces.pdf

This report explores Canada's strategies to compete globally. The report begins with an analyses of the housing market, because housing is the canary in the coal mine; explores what happens in the event of collapse; and analyses the underlying problem causing Canada to be uncompetitive.
 


Complete loyalty RFP  

fsim.ca/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Mobile Payments Blueprint: guide to credit and loyalty transformation for merchants  

fsim.ca/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Report on merchants extending financial services  

fsim.ca/docs/

Special report explaining why some merchants in the UK, U.S. and Canada are expanding their financial services. The paper discusses the structural and regulatory pressures facing merchants and explains the rational behind key decisions. This is an 8 page high level report
 


Guide to system selection  

fsim.ca/docs/gssnow.pdf

Read sample report: Guide to system selection. This sample would normally cost $99 but is available free as a sample. Click here view sample report.


News feed

CANADIAN DOLLAR HITS TWO-WEEK HIGH AS FEDERAL RESERVE STANCE BOLSTERS SENTIMENT

G&M - Fergal Smith (2021-07-30)

The Canadian dollar touched a two-week high against its broadly weaker U.S. counterpart on Thursday, as the Federal Reserve remained patient about reducing stimulus and the Bank of Canada reassured Canadians it would keep inflation under control.


WHY CASH SURVIVED THE COVID-19 PANDEMIC

G&M - Matt Lundy (2021-07-30)

In the early stages of the pandemic, there was a “sharp spike” of withdrawals, driven by demand for $50 and $100 bills, the paper said. Meanwhile, deposits of cash into accounts were “persistently low” through 2020. This may have been partly owing to lockdown restrictions that slowed the turnover of cash in the economy, the researchers noted.


TRADING APP ROBINHOOD SET TO GO PUBLIC ON STOCK EXCHANGE THURSDAY

CBC - AP (2021-07-30)

Robinhood will begin offering its stock on Wall Street Thursday, the very place the online brokerage has rattled with its stated goal of democratizing finance.


AMY TER HAAR: WHY EVERYONE IN CRYPTO IS TALKING ABOUT THE LONDON HARD FORK

FP - FP (2021-07-30)

On Aug. 4 at block 12,965,000, the London Hard Fork will go live on the Ethereum main network when a series of five protocol updates called EIPs (Ethereum Improvement Proposals) are deployed.


TD BANK TO OFFER NEW PERSONAL LOAN PRODUCT AT CANADA POST OUTLETS IN RURAL AND REMOTE COMMUNITIES

FP - Stephanie Morotta (2021-07-30)

The personal loan pilot project, which launches this fall, will focus on remote communities, which typically have poor access to physical branch locations and lack internet services to connect with digital banking tools.


ROBINHOOD CLOSES AT $34.82 IN GRIM STOCK MARKET DEBUT

Reuters - Echo WangNoor Zainab Hussain (2021-07-30)

Robinhood Markets Inc's shares (HOOD.O) closed more than 8% lower at $34.82 per share on their first day of trading, as many investors who used the popular trading app to participate in this year's "meme" stock trading frenzy snubbed its initial public offering (IPO)


WHAT’S NEWS: BUSINESS & FINANCE

WSJ - Staff (2021-07-30)

The U.S. economy grew rapidly in the second quarter and exceeded its pre-pandemic size, but the outlook has suddenly turned cloudier due to the fast-spreading Delta coronavirus variant.


FREE MONEY? CANADIAN MORTGAGE INTEREST IS NOW LESS THAN THE RATE OF INFLATION

Better Dwelling - Stephen Punwasi (2021-07-30)

Canadian mortgage debt is being lent out at less than the current rate of inflation. Generally, the most popular type of mortgage is the 5-year fixed rate term, so let’s peep that. The posted 5-year fixed rate was 4.79% in June, working out to 1.7% after inflation. That’s still a positive number, and would be a big profit margin. Healthy and booming market, right? Just one problem — no one pays the posted mortgage rate.  


U.S. ECONOMY SURPASSES PRE-PANDEMIC SIZE WITH 6.5% Q2 GROWTH

Investment Executive - Martin Crutsinger (2021-07-30)

Fuelled by vaccinations and government aid, the U.S. economy grew at a solid 6.5% annual rate last quarter in another sign that the nation has achieved a sustained recovery from the pandemic recession. The total size of the economy has now surpassed its pre-pandemic level.


INSURERS’ SUPERVISION OF MGAS FALLS SHORT, ONTARIO REGULATOR SAYS

Investment Executive - IE (2021-07-30)

The province has no regulatory framework in the life and health insurance sector specific to MGAs; however, industry regulations and guidelines set out policies that insurers are expected to implement to manage and oversee their relationships with MGAs.


PANDEMIC DEBTS LEAVE FISCAL PLANNING EXPOSED TO ICY CHILL OF ECONOMIC MISSES

G&M - DAVID PARKINSON (2021-07-29)

A new paper to be published Thursday by the C.D. Howe Institute makes that very point. Authors Alexandre Laurin (C.D. Howe’s director of research) and Don Drummond (the veteran economist from Queen’s University) have run the federal and provincial deficit numbers through several scenarios, and they conclude that it wouldn’t take much at all for the public debt situation to be much worse in the next few decades than our governments have predicted.


BANK OF CANADA RESEARCHERS ARGUE IN FAVOUR OF INFLATION OVERSHOOTS FOLLOWING RECESSIONS

G&M - Mark Rendell (2021-07-29)

Central bankers should let inflation run temporarily above target when the economy is coming out of a severe recession, according to new Bank of Canada research that provides a window into how the central bank is thinking about inflation as the pandemic wanes.


BANK OF CANADA APPOINTS FIRST HEAD OF RETAIL PAYMENTS SUPERVISION

G&M - Mark Rendell (2021-07-29)

In June, the bank assumed responsibility for monitoring online payment systems, such as digital wallets, run by fintech and paytech companies. The new system will see the bank maintain a registry of retail payment providers in Canada, and monitor the strength of their risk-management protocols.


INFLATION RATE DIPS TO 3.1% AS SHELTER AND TRANSPORT COSTS RISE SOCIAL SHARING

CBC - CBC (2021-07-29)

But the inflation rate was dragged lower because the price of many goods has come down from where it was last year, including beef, which has declined by 11 per cent, fresh vegetables (down by 7.5 per cent) and cellular services (down an eye-popping 21 per cent).


SHOPIFY REVENUE TOPS $1B AS PANDEMIC CAUSES ONLINE SALES TO SURGE TO RECORD SOCIAL SHARING

CBC - CP (2021-07-29)

Shopify's revenue for its second quarter, which ended June 30, reached $1.1 billion US, up 57 per cent from $714.3 million US at the same time last year.


CFA PASS RATE PLUMMETS TO LOWEST LEVEL SINCE TESTING BEGAN

FP - Bloomberg (2021-07-29)

Twenty-five per cent of applicants passed the latest test, down from 44 per cent for those who sat for the February examination, according to the CFA Institute’s website. The 10-year average pass rate is 42 per cent.


WALL STREET IS THROWING CHEAP CREDIT AT ULTRA-WEALTHY CLIENTS AND THEY'RE BUYING YACHTS, JETS, ART AND REAL ESTATE

FP - Devon Pendleton and Ben Stupples (2021-07-29)

Denis Sverdlov, worth US$6.1 billion thanks to his shares in electric-vehicle maker Arrival, recently pledged part of that stake for a line of credit from the same bank. For Edgar and Clarissa Bronfman the loan collateral is paintings by Damien Hirst and Diego Rivera, among others. Philippe Laffont, meanwhile, pledged stakes in a dozen funds at his Coatue Management for a credit line at JPMorgan Chase & Co.


UK WATCHDOG DEMANDS 40% WOMEN IN BOARDROOMS, ETHNIC DIVERSITY

Reuters - Huw Jones (2021-07-29)

Britain's financial regulator demanded the appointment of more women and non-white minorities to the leadership of Britain's largest firms on Wednesday, saying at least 40% of board members should be women.


AS FED TIPTOES AROUND TAPERING, INVESTORS LOOK TO JACKSON HOLE MEETING FOR CLARITY

Reuters - David RandallGertrude Chavez-dreyfuss (2021-07-29)

Investors looking for clear guidelines on when the Federal Reserve will begin tapering its massive bond purchases were left waiting Wednesday, with all eyes next on the annual Jackson Hole conference of central bankers in August.


THE FOUR BIGGEST WAYS THAT ROBINHOOD CHANGED INVESTING

Bloomberg - Annie Massa (2021-07-29)

Not so long ago, before the pandemic took hold in the U.S., it seemed like standalone retail trading firms were a thing of the past. E*Trade, the brokerage that gained notoriety in the dot-com boom, sold itself off to Morgan Stanley. Charles Schwab Corp. and TD Ameritrade, two of the largest brokers, inked a deal to combine in November 2019, forming a single supermarket for everything from financial planning to exchange-traded funds.

But a new brokerage boom was just about to begin. Robinhood Markets Inc., the company that championed commission-free trading, is set to make its stock market debut on Thursday. The initial public offering puts an exclamation point on more than a year of flourishing retail trading action, which featured a series of unexpected antics: Ordinary investors charged in to buy shares of bankrupt companies such as Hertz Global Holdings Inc., banded together online to bid up the price of such “meme stocks” as GameStop Corp. and AMC Entertainment Holdings Inc., and piled into cryptocurrencies and options. Robinhood was far from the only forum for this kind of trading, but its colorful, easy-to-use mobile app, its success at drawing in young people, and its breakneck growth made it part of the lockdown-era zeitgeist.            


CANADIAN SHELTER DATA DOESN’T REFLECT THE REALITY OF HOME PRICES: BMO

Better Dwelling (2021-07-29)

At some point, someone made a wrong turn at Albuquerque. They decided to stimulate demand before it fell off, hoping to prevent any decline in home prices. What we’re left with is record housing activity, and low rates to stimulate it. They took steroids for a kindergarten tug of war match. Now the data has no idea what to make of it. It doesn’t reflect reality. But it’s not exactly contrary to it either.


CANADIAN HOME BUILDING COSTS MAKE THE LARGEST JUMP ON RECORD: STAT CAN

Better Dwelling - Daniel Wong (2021-07-29)

Residential construction costs are soaring, as labor and materials get squeezed. Costs increased 7.5% in just the second quarter of 2021. This is a sharp acceleration from the 4.9% increase seen in the first quarter of the year. Stat Can said it was the largest jump in construction costs over the history of the index. Though the index only goes back to 2017, so it most likely is the biggest increase in a couple of decades. 


PWC DENIES REPORT OF POTENTIAL BRIDGING FINANCE SALE

Investment Executive - James Langton (2021-07-29)

On Thursday, Bloomberg reported that BlackRock Inc. and Canaccord Genuity Group Inc. are in “advanced talks” to buy Bridging, citing sources familiar with the matter. The report said Bridging would continue to exist under the deal with the new owners managing existing funds.


OSFI FINALIZES ITS GUIDELINE ON FOREIGN ENTITIES OPERATING IN CANADA ON A BRANCH BASIS

OSFI - OSFI (2021-07-29)

Today, the Office of the Superintendent of Financial Institutions (OSFI) issued the final version of Guideline E-4 Foreign Entities Operating in Canada on a Branch Basis. This guideline replaces existing guidelines E-4A Role of the Chief Agent and Record Keeping Requirements and E-4B Role of the Principal Officer and Record Keeping Requirements.


BANK OF CANADA RESEARCHERS ARGUE IN FAVOUR OF INFLATION OVERSHOOTS FOLLOWING RECESSIONS

G&M - Mark Rendell (2021-07-28)

Central bankers should let inflation run temporarily above target when the economy is coming out of a severe recession, according to new Bank of Canada research that provides a window into how the central bank is thinking about inflation as the pandemic wanes.


DEUTSCHE BANK RAISES REVENUE OUTLOOK FOR NEXT YEAR AFTER SECOND-QUARTER PROFIT TOPS FORECASTS

G&M - TOM SIMS AND PATRICIA UHLIG (2021-07-28)

The profit figures are good news for CEO Christian Sewing, who launched a major restructuring in 2019 to return the bank to profitability after a string of regulatory failings.


KLARNA RAISES $639M, EYES INTERNATIONAL EXPANSION

Payments Dive - Vaidik Trivedi (2021-07-28)

 


BROOKFIELD GETS $7 BILLION FOR IMPACT FUND WITH ONTARIO TEACHERS', TEMASEK ON BOARD

FP - Scott Deveau (2021-07-28)

Ontario Teachers’ Pension Plan Board and Singapore’s US$281 billion Temasek Holdings will be significant initial investors, Brookfield said in a statement. Canadian pension funds PSP Investments and Investment Management Corp. of Ontario have also made meaningful commitments to the fund, Brookfield said, without disclosing how much each is contributing.


GERMAN INSURERS EXPECT UP TO $6.5 BLN IN STORM CLAIMS

Reuters - Reuters (2021-07-28)

This year is on course to be the most expensive year for insurers in Germany since 2002, when various storms caused 10.9 billion euros in claims, GDV said.


BARCLAYS PAYS OUT MORE THAN $1 BLN TO INVESTORS AS PROFITS REBOUND

Reuters - Lawrence White, Iain Withers (2021-07-28)

The British bank, which reported a near-quadrupling in first-half profits, said it would pay an interim dividend of 2 pence per share, equivalent to around 340 million pounds in total, after the Bank of England in July scrapped payout curbs. read more


ANALYSIS: TEN-YEAR TREASURIES AT 2%? BRING IT ON, INVESTORS SAY

Reuters - Yoruk Bahceli, Sujata Rao (2021-07-28)

A bet on 10-year U.S. bond yields rising to 2% was meant to be the slam-dunk trade of 2021. It still is, say many analysts and money managers, who expect the rate to shift back higher by year-end without causing market ructions.


CREDIT SUISSE’S ARCHEGOS INQUIRY RIPS BANK’S DUE DILIGENCE

Bloomberg - Marion Halftermeyer and Heather Perlberg (2021-07-28)

Credit Suisse Group AG failed to properly monitor tens of billions of dollars of exposure that piled up while handling trades for Archegos Capital Management that generated relatively little revenue, according to people briefed on the findings of the bank’s internal inquiry.


CREDIT SUISSE’S ARCHEGOS INQUIRY RIPS BANK’S DUE DILIGENCE

Bloomberg - Marion Halftermeyer and Heather Perlberg (2021-07-28)

Credit Suisse Group AG failed to properly monitor tens of billions of dollars of exposure that piled up while handling trades for Archegos Capital Management that generated relatively little revenue, according to people briefed on the findings of the bank’s internal inquiry.


ONTARIO SETS RECORD FOR LOONIE GREEN BOND BEFORE FEDERAL SALE

Bloomberg - Esteban Duarte (2021-07-28)

The province of Ontario broke the record for a Canadian dollar green bond sale, raising C$2.75 billion ($2.19 billion) on Tuesday to fund a train line expansion among other purposes.


DEUTSCHE BANK POSTS SURGE IN PROFIT BUT FACES HEADWINDS

WSJ - Patricia Kowsman (2021-07-28)

Deutsche Bank AG’s results signaled that the bumper profits accruing to its investment bank may have peaked, exposing the deeper challenges the lender faces two years into a strategic makeover.


CANADIAN LUXURY HOME SALES FORECAST TO FALL, AS MARKET NORMALIZES: E&V

Better Dwelling - Daniel Wong (2021-07-28)

The slowdown in luxury home sales also came with an increase in inventory. Active listings for homes over $1 million surged in May, climbing to 652 units. This was more than triple the volume seen for any prior month in 2021. June followed with a bigger increase, with 1,073 active listings for luxury homes.


CENTRAL BANKS SHOULD BE READY TO ACT SWIFTLY IF INFLATION ISN’T TRANSITORY: IMF

Better Dwelling - Daniel Wong (2021-07-28)

The combination has pushed global inflation readings higher. Canada’s consumer price index (CPI) is currently reading 3.6% higher than a year before. US CPI came in even higher, showing annual growth of 5.4% at the last measure. This is the highest rate both countries have experienced in a very long time. Naturally, people are starting to worry about how high this can get over the next few years. 


WALL STREET ENFORCEMENT TO GET TOUGHER AS SEC'S NEW TOP COP GETS TO WORK

Reuters - Chris Prince (2021-07-27)

When former New Jersey Attorney General Gurbir Grewal starts work at the U.S. Securities and Exchange Commission (SEC) on Monday, he will be the agency's first incoming enforcement director without recent ties to corporate America since 2005.


CHINA STOCK ROUT SPREADS AMID FEARS OF FOREIGN INVESTOR EXODUS

Bloomberg - Jeanny Yu and Livia Yap (2021-07-27)

The speculation, which included talk that the U.S. may restrict investments in China and Hong Kong, circulated among traders in late afternoon in Asia, spurring a renewed bout of selling. The Hang Seng Tech Index, a gauge of many Hong Kong-listed Chinese stocks, plunged as much as 10%, while the yuan slid to its weakest since April against the dollar and even Chinese bonds were dumped.


BITCOIN TUMBLES AFTER REACHING $40,000 ON AMAZON SPECULATIONS

Bloomberg - Joanna Ossinger and Vildana Hajric (2021-07-27)

Bitcoin fell below $37,000 after briefly surpassing $40,000 following Amazon.com Inc.’s denial that its job posting for a digital currency executive meant that it will accept the token for payments this year.


FOREIGN INVESTMENT IN US REAL ESTATE FALLS TO A DECADE LOW: NAR

Better Dwelling - Daniel Wong (2021-07-27)

The dollar value of US real estate purchased by foreign investors continued to slide. NAR estimates non-residents purchased $54.4 billion of real estate in the year ending March 2021, down 27% from a year before. This works out to 2.8% of the $1.96 trillion total existing-home sales made over the same period. Foreign dollar investment into residential real estate peaked in 2017 at $153 billion, and has slid lower ever since.  


B.C. PUBLIC-SECTOR PENSION FUND REPORTS 16.5% ANNUAL RETURN

Investment Executive - IE (2021-07-27)

BCI reported $199.6 billion in assets under management, a $28.3-billion increase that reflects investment gains of $27.4 billion and $900 million of client net contributions. The 16.5% return was net of all fees, the pension manager for 690,000 British Columbians said in a release.


FED TO DISCUSS A PULLBACK IN ECONOMIC AID WITH INFLATION UP

Investment Executive - Christopher Rugaber (2021-07-27)

For now, the U.S. economy is growing briskly in the wake of the pandemic recession, and the pace of hiring is healthy, which is why the Fed’s policymakers will likely move closer toward acting soon. In particular, the officials are expected to discuss the timing and mechanics of slowing their $120 billion-a-month in bond purchases — a pandemic-era policy that is intended to keep long-term loan rates low to spur borrowing and spending.


CIBC LAUNCHES DEPOSITARY RECEIPTS FOR SHARES IN U.S. COMPANIES ON CANADA’S NEO EXCHANGE

G&M - James Bradshaw (2021-07-27)

Canadian Imperial Bank of Commerce 

CM-T +0.73%increase   is launching Canada’s first depositary receipts linked to U.S. stocks, creating a new way for retail investors to trade in large American companies without the foreign currency risk inherent in buying those shares directly.


ED DODIG AIMS TO EXPAND CIBC’S PRIVATE WEALTH ARM

G&M - Clare O'Hara (2021-07-27)

Canadian wealth managers are trying to cash in on investors who are seeking more advice as they continue to navigate their finances through the upheavals of the COVID-19 pandemic.

Ed Dodig, who’s head of private wealth management for Canada at Canadian Imperial Bank of Commerce 

CM-T +0.73%increase   and oversees the bank’s group of 830 investment advisers and 130 private bankers, says the rise in financial planning requests stems from a number of unknowns that have risen unexpectedly during the outbreak.


TOBI LUTKE BECOMES CANADA’S WEALTHIEST COMPANY FOUNDER AS SHOPIFY SHARES SOAR

G&M - David Milstead, Sean Silcoff (2021-07-27)

Mr. Lutke’s stake in the e-commerce software provider is now worth US$13.3-billion, or $16.7-billion in Canadian dollars. In addition, stock sale records show Mr. Lutke has generated gross proceeds of US$490-million since the beginning of 2020 by selling Shopify shares.


AON, WILLIS HALT $30 BLN MERGER OVER MONOPOLY CONCERNS, DELAY

Reuters - Alwyn Scott (2021-07-27)

The decision, hailed by some as an early victory for the Biden administration's Department of Justice, which sued last month to block it, stood at odds with European regulators who recently approved the deal on condition the companies sell assets. Those now-halted sales largely affect broker Arthur J. Gallagher & Co (AJG.N).


THE RENTAL HOUSING MARKET IS HEATING UP AGAIN – A WORRYING SIGN FOR AFFORDABILITY

G&M - Matt Lundy (2021-07-26)

Activity is heating up in rental housing markets across Canada, a troubling sign for affordability in cities with a chronic shortage of available units.


U.S. INFLATION JUST TOPPED 5 PER CENT. IS CANADIAN INFLATION NEXT?

FP - Bianca Bharti (2021-07-26)

Last week, the U.S. government released June figures for its Consumer Price Index (CPI) and the data showed that inflation shot up 5.4 per cent from a year ago — the steepest climb since the Great Recession. The eye-watering number stoked concerns that Canadian inflation could go the way of the U.S. since it has tracked higher than the Bank of Canada’s target range of between one and three per cent for two consecutive months.


CREDIT SUISSE SETTLES SPYING CASE WITH FORMER STAR BANKER

Reuters - Reuters (2021-07-26)

Credit Suisse (CSGN.S) has reached an out-of-court settlement with former star banker Iqbal Khan over allegations of spying that led to the resignation of the Chief Executive Tidjane Thiam, a spokesperson for the Swiss bank said on Sunday.


U.S. TREASURY SECRETARY YELLEN WARNS CONGRESS ON DEBT LIMIT

Reuters - Doina Chiacu (2021-07-26)

U.S. Treasury Secretary Janet Yellen urged lawmakers on Friday to increase or suspend the nation's debt limit as soon as possible and warned that if Congress does not act by Aug. 2 the Treasury Department would need to take "extraordinary measures" to prevent a U.S. default.


WHY BIG CENTRAL BANKS ARE BECOMING CLIMATE WARRIORS

Bloomberg - Katia Dmitrieva and Jana Randow (2021-07-26)

The world’s largest central banks are joining the fight against climate change, figuring that doing nothing is riskier than getting involved. Melting glaciers can seem like a big leap from monetary policy, but more and more banks are saying that they have to respond to things that have the potential to disrupt economies globally. Some have received new mandates from their governments while others are exploring ways to contribute under existing rules. Still, critics say they can and should go a lot further.

A growing body of research suggests that climate change poses the greatest long-run threat to the global economy, including inflation and financial stability, the traditional purview of central banks. Even if the ambitious goal set in the 2015 Paris Agreement of limiting global temperature gains to 2 degrees Celsius above pre-industrial levels is met, the world’s economies are likely to be affected in multiple ways, from lower productivity on farms and construction sites to increased mortality and migration. That’s in addition to damage from more extreme weather events and coastal flooding that could run into the trillions of dollars by 2100. Then there are risks to the financial system.


BLOOMBERG NEW ECONOMY CONVERSATIONS: THE ASCENT OF DIGITAL MONEY

Bloomberg - Andrew Browne (2021-07-26)

Bloomberg New Economy Editorial Director Andy Browne discusses the ascent of digital money with IMF Economic Counsellor Gita Gopinath, Mastercard's Raj Dhamodharan, SEC Commissioner Hester M. Peirce, and Grayscale Investments CEO Michael Sonnenshein.


BARCLAYS OVERTAKES CREDIT SUISSE IN INVESTMENT BANKING

WSJ - Simon Clark (2021-07-26)

Barclays PLC recently overtook Credit Suisse Group AG in investment banking revenue, a sign that the U.K. bank’s long, frustrated push to be a major player is making progress thanks in part to the troubles of its Swiss rival.


GLOBAL BANKS SHAKING OFF COVID-19

Investment Executive - James Langton (2021-07-26)

The world’s banks have largely been spared during the Covid-19 pandemic — unlike during the global financial crisis — but there remain a group of weak banks that could still face challenges, cautions a report from the Bank for International Settlements (BIS).


GLOBAL PROPERTY BUBBLE TO CORRECT, CANADA IS THE SECOND RISKIEST: OXFORD ECONOMICS

Better Dwelling - Stephen Punwasi (2021-07-26)

The whole world is overvalued — at least the parts where people eat and sleep. Global property prices are 10% above the long-term trend, says Slater. Using price-to-rent, they estimate the overvaluation rises to 11% for the global index. 


ROOKIE BANKERS SOUR ON WALL STREET’S PITCH OF BIG PAY AND LONG HOURS

NY Times - Kate Kelly and Lananh Nguyen (2021-07-26)


EVEN IF PRICES FALL, THE ERA OF AFFORDABLE HOUSES IN CANADA SEEMS TO BE DONE

G&M - Rob Carrick (2021-07-23)

This is how Canada’s housing market cools: from the white-hot intensity of a thousand suns to merely scorching.


CANADA’S BIG BANKS NEED TO SHOW REBOUND IN LENDING TO AVOID FATE OF U.S. COUNTERPARTS: ANALYSTS

G&M - James Bradshaw (2021-07-23)

Canada’s large banks are under pressure to show that their core lending business is rebounding after investors appeared unimpressed with the latest round of U.S. bank earnings, choosing to overlook rising profits and focus instead on tepid demand for loans.


AIRLINE, BANK, TECH COMPANY WEBSITES BRIEFLY DOWN IN WIDESPREAD OUTAGE

G&M - Reuters (2021-07-23)

Many websites were briefly down in an outage sparked by a glitch in Akamai Technologies Inc.’s systems, the second major disruption linked to the cloud company in about a month.


REGULATORY UNCERTAINTY CAN MAKE TRADING STOCK TOKENS RISKY, EXPERTS SAY

G&M - Vanmala Subramaniam (2021-07-23)

Canadian investors curious about trading stock tokens – digital versions of stocks that are based on blockchain technology – must have a high appetite for risk in the current climate of regulatory uncertainty, caution some crypto industry experts.

Last week, the cryptocurrency exchange Binance, based in the Cayman Islands and run by Chinese-Canadian businessman Changpeng Zhao, abruptly announced it would stop selling stock tokens after warnings from securities regulators in multiple countries that it was not authorized to sell these products.

Regulators in Hong Kong and Germany say Binance cannot sell stock tokens because they are considered securities, and Binance is not registered as a regulated securities dealer in those jurisdictions.

“Regulators in various countries are still trying to figure out how to approach different aspects of the cryptocurrency industry – stock tokens is one of them. So one of the risks in trading stock tokens is that it can just be taken off an exchange,” said Jonathan Ip, a blockchain and cryptocurrency lawyer at Toronto-based Iterative Law.

Several Canadian companies, including Canopy Growth Corp. , Aurora Cannabis Inc.  and BlackBerry Ltd., have tokenized versions of their stock trading on foreign cryptocurrency platforms such as Binance and Hong Kong-based FTX, one of the largest and most popular crypto exchanges in the world.


THE ONE INDICATOR THAT HAS PROVIDED THE BEST GUIDANCE FOR STOCK INVESTORS IS FLASHING A BUY SIGNAL

G&M - Scott Barlow (2021-07-23)

The importance of real yields lies with central bank policy. Led by the U.S. Federal Reserve, major central banks pushed bond yields well below the rate of inflation in order to offset some of the negative economic effects of the pandemic. The result was that U.S. 10-year real bond yields went negative, meaning that bond investors actually lose money every year once inflation is taken into account.


GREAT-WEST TURNS TO GROWING LOONIE HYBRID DEBT TO HELP FINANCE U.S. VENTURE

FP - Esteban Duarte (2021-07-23)

The Canadian insurer is buying Prudential Financial Inc.’s retirement business in the U.S. and aims to raise almost one-third of the US$3.55 billion it’s paying by issuing loonie denominated limited recourse capital notes, or LRCNs. It would mark its inaugural sale of the securities following transactions from rivals such as Sun Life Financial Inc. and Manulife Financial Corp. earlier this year.
Canadian banks and insurance companies have issued at least $11.9 billion (US$9.5 billion) of LRCNs since July 2020 when Royal Bank of Canada opened the market by issuing $1.75 billion of 60-year notes which can be called after five years, Bloomberg data show. The securities, which are eligible for the financial institutions’ loss-absorbing buffers, allow issuers to a have tax deductions on the interest payment, so reducing their all-in borrowing costs.


CANADA VYING TO ESTABLISH HQ PROMOTING SUSTAINABLE FINANCE

The Whig - Catherine McIntyre (2021-07-23)

Two of Canada's financial centres are angling to host the global headquarters for a new regulatory body responsible for setting international standards for sustainable finance, The Logic has learned.


DEUTSCHE BANK MARKET SHARE SHRINKS IN SOME AREAS

Reuters - Tom Sims, Patricia Uhlig (2021-07-23)

Its investment bank, the group's biggest revenue generator, drove the institution to its strongest quarter in seven years at the start of 2021. However, investors have wondered how sustainable progress will be as the bank continues efforts to boost profitability after years of losses.


VISA TO ACQUIRE CURRENCYCLOUD AT 700 MILLION POUNDS VALUATION

Reuters - Anna Irrera (2021-07-23)

Visa Inc (V.N)said on Thursday that it had agreed to buy British cross-border payments provider Currencycloud at a valuation of 700 million pounds ($962.01 million).


CARLYLE SEEKS TO RAISE AS MUCH AS $27 BLN FOR LATEST FLAGSHIP FUND - BLOOMBERG NEWS

Reuters - Reuters (2021-07-23)

The fund would be 46% larger than its previous flagship pool from 2018, Bloomberg News said.


TD MAKES ITS DEBUT DEAL IN THE GROWING LOONIE HYBRID DEBT MARKET

Bloomberg - Esteban Duarte (2021-07-23)

Toronto-Dominion Bank raised C$1.75 billion ($1.39 billion) in its inaugural sale of limited recourse capital notes, taking advantage of the fast growing market for the Canadian dollar-denominated hybrid securities first sold one year ago.


CANADIAN BUSINESSES EXPECT THE PRICE OF GOODS TO RISE ALMOST 5%: BMO

Better Dwelling - Daniel Wong (2021-07-23)

You’re not alone if you aren’t buying the “inflation is transitory” narrative. BMO Capital Market senior economist Robert Kavcic unpacked price change sentiment data. Small business owners see the cost of goods rising a lot over the next year. In fact, prices are expected to rise the most in at least a decade, by a wide margin. It also just so happens this sentiment data has a solid correlation with what you’ll pay later.


GLOBAL PROPERTY BUBBLE TO CORRECT, CANADA IS THE SECOND RISKIEST: OXFORD ECONOMICS

Better Dwelling - Stephen Punwasi (2021-07-23)

The whole world is overvalued — at least the parts where people eat and sleep. Global property prices are 10% above the long-term trend, says Slater. Using price-to-rent, they estimate the overvaluation rises to 11% for the global index. 


FSRA PROPOSES FEES FOR TITLE REGULATION

Investment Executive - James Langton (2021-07-23)

FSRA is proposing a $10,000 fee for the initial approval of a credentialing body, and $5,000 for each credential application.


FINANCIAL SECTOR’S CREDIT CONDITIONS CONTINUE TO IMPROVE: FITCH

Investment Executive - James Langton (2021-07-23)

Fitch reported that the proportion of bank ratings on negative outlook or watch dropped below 50% in Q2 for the first time since the pandemic emerged. And, that share was down to about 40% by the end of the quarter.


'ACCIDENT WAITING TO HAPPEN': ZERO-DOWN MORTGAGES IN CANADA STOKE U.S. SUBPRIME-LIKE FEARS

FP - Kevin Orland, Ari Altstedter (2021-07-22)

This is year twenty-five of the great Canadian housing bull market, a nearly uninterrupted straight line up that has few parallels in the world. At a time of soaring real-estate prices all over the globe, only one major economy — New Zealand — has a frothier housing market than Canada, according to an analysis by Bloomberg Economics. And after all those years of price gains, including a 21 per cent surge since the pandemic began, millions of middle-class Canadians have no chance of scrounging together the money needed to make a conventional down payment of 20 per cent.


PROPTECH: WHAT'S DRIVING STARTUP INVESTMENTS ACROSS REAL ESTATE TECHNOLOGIES?

FP - Melanie Tabet (2021-07-22)

PropTech, a relatively new tech sector, is helping propel the real estate and construction industries forward. PropTech is widely understood as a suite of market tracking tools, virtual tour platforms and property management applications. However, the early disruptors make up only a small subset of the innovations that are contributing to the sector’s rapid evolution.
67 per cent of all Canadian PropTech startups were founded after 2014 according to a 2021 report by the PropTech Collective. With more than 60 per cent of PropTech startups still in early-stage (pre-seed, seed) financing, the rapidly-growing industry is primed for venture capitalists looking to support companies that align with their investment goals. So, what net-new challenges and opportunities have been identified for sectoral growth?


JANET YELLEN TELLS REGULATORS TO ‘ACT QUICKLY’ ON STABLECOIN RULES

FP - Christopher Condon (2021-07-22)

The statement said meeting participants “discussed the rapid growth of stablecoins, potential uses of stablecoins as a means of payment and potential risks to end-users, the financial system and national security.”


SILICON VALLEY BANK TO HIRE 150 IN EUROPE AMID TECH DEAL BOOM

Reuters - Lawrence White (2021-07-22)

Silicon Valley Bank aims to hire around 150 staff in Europe this year, mainly in Britain, as it looks to capitalise on frenzied demand for investment in tech and innovation companies, its head for the region told Reuters.


YOUNG TALENT ISN’T FOLLOWING THE MONEY TO WALL STREET

Bloomberg - Marcus Ashworth (2021-07-22)

“There is no substitute for hard work” has long been the industry mantra. But those first few years are brutal. There is now a number for how much toil is required to reach "base-level mastery" at an investment bank: The golden ticket to elite level is 10,000 hours or roughly three years worth of 72-hour weeks, according to Mary Erdoes, chief executive officer of JPMorgan Chase & Co.’s asset and wealth management business.


ZERO-DOWN MORTGAGES STOKE U.S. SUBPRIME-LIKE FEARS IN CANADA

Bloomberg - Kevin Orland and Ari Altstedter (2021-07-22)

They’re the kind of exotic mortgages that one typically associates with the reckless, go-go housing market that gripped the U.S., circa 2005: Put down 5% cash and get 3% back; or, wilder yet, put down nothing at all. So when these products -- and others like them -- started popping up in the normally cautious Canadian financial industry, it raised alarm among policy makers in Ottawa.


NORDEA SAYS 90% OF NEW MONEY NOW ESG AS WEALTH UNIT HITS RECORD

Bloomberg - Jonas Cho Walsgard (2021-07-22)

Almost all the new money that flowed into Nordea Bank Abp’s $455 billion wealth and asset management unit in the second quarter was headed for environmental, social or governance investments.


JPMORGAN AWARDS JAMIE DIMON SURPRISE RETENTION BONUS

WSJ - David Benoit and Simon Clark (2021-07-22)

JPMorgan Chase & Co. is giving Chief Executive Jamie Dimon 1.5 million reasons to stay at the bank for five more years.


GLOBAL REAL ESTATE PRICES GREW AT THE FASTEST RATE EVER. CANADA GREW 3X THAT RATE

Better Dwelling - Stephen Punwasi (2021-07-22)

Global home prices might be growing at a record rate, but it’s just a fraction of Canadian growth. In the first quarter, Canadian home prices grew 5.6x faster than the global index. Over the past year, Canada managed to squeeze out a rate of growth over 3.5x higher than the global index.


OSC SEEKS TECHNICAL EXPERTISE ON FUND REGULATION

Investment Executive - James Langton (2021-07-22)

The committee provides OSC staff with feedback on technical compliance issues in the regulation of investment funds, and helps identify possible ways to better align “investor, industry and regulatory goals,” the OSC said.


MAJOR PLAYERS JOIN FINANCING FOR TORONTO’S PROPERLY

G&M - Galit Rodan (2021-07-21)

Executives from Wealthsimple, SoftBank and Zillow have joined Bain Capital and Intact Insurance to provide $44-million in financing for Toronto-based real estate brokerage Properly Inc. as it looks to expand across the country and further into financial services.


CANADIAN HOME PRICES UP 16% IN JUNE FOR LARGEST 12-MONTH GAIN ON RECORD, INDEX SAYS

G&M - CP (2021-07-21)

Canadian home prices increased in June to mark the largest 12-month gain on record as prices climbed in all 11 markets, says the Teranet National Bank composite price index.


AFTER WARNING ABOUT EXCESSIVE MORTGAGE DEBT, CMHC HOISTS THE WHITE FLAG

G&M/BNN - KONRAD YAKABUSKI (2021-07-21)

Few people working in Canada’s real estate industry shed a tear when Evan Siddall stepped down as head of Canada Mortgage and Housing Corp. in April after seven years spent lecturing them about, among other things, their greediness.


NASDAQ PARTNERS WITH MAJOR BANKS TO SPIN OUT TRADING PLATFORM FOR PRE-IPO STOCKS

Reuters - Reuters (2021-07-21)

Nasdaq Inc (NDAQ.O) on Tuesday partnered with big U.S. banks, including Goldman Sachs and Morgan Stanley, to separate its platform that allows people to trade in shares of private companies, which have seen strong interest from investors seeking lofty returns on investments.


SQUARE LAUNCHES SMALL BUSINESS BANKING

Reuters - Anna Irrera (2021-07-21)

Square Inc (SQ.N), the company led by Twitter Inc (TWTR.N) CEO Jack Dorsey, is launching banking services for small businesses, as it continues to grow beyond payments processing.


DIGITAL BANKING APP REVOLUT LAUNCHES TRAVEL BOOKING SERVICE

Reuters - Anna Irrera (2021-07-21)

Revolut, which was valued at about $33 billion through a new investment round last week, will allocate 70 million pounds ($95.24 million) to cashback for customers using the new service, Stays, it said on Wednesday.


BANKERS NEED 72-HOUR WEEK TO MASTER JOB, $4 TRILLION WEALTH MANAGER SAYS

Bloomberg - Lisa Fleisher (2021-07-21)

There’s a reason junior bankers just starting out on Wall Street work 12-hour days, six days a week, says Mary Erdoes, chief executive officer of JPMorgan Chase & Co.’s asset and wealth management business.


CANADIAN REAL ESTATE SALES FELL AT A RATE OVER 12X LARGER THAN INVENTORY

Better Dwelling - Kaitlin Last (2021-07-21)

At the same time, higher home prices also create more incentive to sell your home. This is especially true for demographics that are mobile, such as retirees. More recently, the work-from-home crowd is also primed to take advantage of this trend. More sellers, or fewer sellers dropping out of the market? Check.


EX-GOLDMAN EXECUTIVE: US BANKS NEED NEW APPROACH TO TECHNOLOGY

FT - Imani Moise (2021-07-21)

“Sometimes think-tanks and incubators work, but sometimes the best ideas come from outside your milieu,” she said. “Financial institutions of all sizes, but particularly larger financial institutions, need to find ways to engage in innovation outside their walls, because it’s moving that way anyway.”


GREAT-WEST BUYS PRUDENTIAL’S U.S. RETIREMENT BUSINESS FOR $4.4-BILLION

G&M - Clare O'Hara (2021-07-21)

Canadian insurer Great-West Lifeco Inc. is boosting its presence in the U.S. retirement industry with a $4.45-billion deal to buy the retirement business of Prudential Financial Inc.


BANK OF CANADA APPOINTS SHARON KOZICKI DEPUTY GOVERNOR

G&M - Mark Rendell (2021-07-21)

The Bank of Canada has appointed long-time central banker Sharon Kozicki to the position of deputy governor – the second change to the bank’s governing council this month.


HOUSING TAKES ON LARGER EMPHASIS IN INFLATION TRACKING

G&M - Matt Lundy (2021-07-21)

Indeed, the new CPI basket was noticeably influenced by abrupt changes in how Canadians spent amid COVID-19.

 


POWER CORP.’S PORTAGE VENTURES BACKS FINANCIAL SOFTWARE PROVIDER CONQUEST PLANNING AS IT LOOKS TO EXPAND

G&M - Jaren Kerr (2021-07-21)

It took some convincing for Mark Evans to come out of retirement.


‘SLOW AND STEADY HERE WINS THE RACE’: CANADIAN BANKS AIM TO BALANCE FLEXIBLE WORK WITH REVIVAL OF OFFICE CULTURE

G&M - James Bradshaw (2021-07-20)

Canada’s big banks are embracing flexible working arrangements as they plot a broad return to offices this fall, emphasizing to staff that hybrid work is here to stay – but so are bustling offices.


A DRAMATIC REBOUND IN HIRING COULD THROW THE BANK OF CANADA’S INFLATION EXPECTATIONS FOR A LOOP

G&M - DAVID PARKINSON (2021-07-20)

The Bank of Canada’s strongest argument against the current concerns of rising inflation is the big hole in employment left by COVID-19. But what if that hole suddenly filled in?


CANADIAN DOLLAR FALLS BY MOST IN 13 MONTHS ON RISING RISK AVERSION

G&M - Reuters (2021-07-20)

The Canadian dollar 

CADUSD -0.02%decrease   weakened to a five-month low against its U.S. counterpart on Monday as a worldwide surge in coronavirus cases weighed on investor sentiment, with the currency shifting into negative territory for the year.


FINANCE COMMITTEE RECALLED TO ADDRESS CONFUSION OVER DELAY TO SMALL-BUSINESS TAX BREAKS

G&M - Patrick Brethour (2021-07-20)

The Liberal chair of the Commons finance committee is calling a special one-day sitting next week to sort out the confusion over whether the Finance Department can freeze small-business tax breaks that have already received royal assent in Parliament.


MACKLEM'S NEW DASHBOARD — THESE ARE THE INDICATORS THE BANK OF CANADA IS WATCHING

FP - Kevin Carmichael (2021-07-20)

The Bank of Canada’s experiment with quantitative easing, or QE, the formerly radical approach to suppressing interest rates popularized by the Federal Reserve and the European Central Bank during the Great Recession, is nearing its end. Canada’s central bank on July 14 tapered its weekly purchases of Government of Canada debt to $2 billion, from $3 billion previously. Updated forecasts predict a resurgence in economic growth over the next 18 months, so it was safe to remove a little stimulus now in anticipation of better days ahead.


CANADIAN COMPANIES ARE ISSUING NEW BONDS AT A RECORD PACE

FP - Esteban Duarte (2021-07-20)

Almost $78 billion (US$52.5 billion) has been issued already this year, more than 70 per cent of the record $111 billion sold in all of 2020, according to data compiled by Bloomberg. Bankers expect a new high, despite a slower pace through year-end as borrowers shift from stockpiling liquidity to rightsizing balance sheets and protecting ratings.


UBS PROFIT LEAPS 63% IN Q2 AMID WEALTH MANAGEMENT BOOM

Reuters - Brenna Hughes Neghaiwi (2021-07-20)

The Swiss bank's net profit of $2.01 billion far outpaced expectations for $1.34 billion in a poll of 20 analysts compiled by the group, as fee income jumped and asset prices rose at its private bank and asset management business.


ROBINHOOD SEEKS UP TO $35 BLN VALUATION IN MEGA U.S. IPO

Reuters - Niket NishantSohini Podder (2021-07-20)

The listing plans come just months after the online brokerage found itself at the center of a confrontation between a new generation of retail investors and Wall Street hedge funds in late January.


CANADIAN HOME PRICES INCREASED 11X INCOME BEFORE THE RECENT PANDEMIC BOOM

Better Dwelling - Daniel Wong (2021-07-20)

From 2014 to 2019, home prices increased 38.55% — just over 11x faster than incomes. That’s a long time for home prices to rise that much faster than incomes. It’s also at the national level, but prices are rising faster in markets declared “frothy.”


MOST CANADIAN REAL ESTATE MARKETS ARE SEEING BUYERS DISAPPEAR FASTER THAN SELLERS

Better Dwelling - Kaitlin Last (2021-07-20)

The quick drop is finally bringing the market back into the stratosphere. Ottawa and Edmonton are the first two markets to fall back into the balanced range of SNLR. Ottawa’s ratio reached 59.9 percent in June, down 10.7 points from a month before. In  Edmonton, it fell to 58.6 percent, down 7.6 points over the same period. Those might be the only two balanced markets in a while, but they’re likely to have some company soon. But first, let’s talk about the markets that are booming.


POT BANKING BILL'S PROSPECTS FADE AMID BROADER LEGALIZATION PUSH

American Banker - Kate Berry (2021-07-19)


CPP INVESTMENTS MUST STOP INVESTING IN COMPANIES BENEFITING FROM UYGHUR PERSECUTION

G&M - IRWIN COTLER AND DAVID KILGOUR (2021-07-19)

Do Canadians want their financial futures built on the suffering of China’s persecuted Uyghur minority?


BANK OF CANADA HAS LOOSENED POLICY OVER THE PAST SIX WEEKS

G&M - STEVE AMBLER, JEREMY KRONICK (2021-07-19)

On Wednesday, the Bank of Canada left its target for the overnight rate at 25 basis points while scaling back its quantitative easing (QE) program, reducing the pace of its purchases of Government of Canada debt from $3-billion a week to $2-billion. Lifting its foot off the QE pedal is warranted given recent inflation readings and other underlying metrics. At the same time, however, the unchanged overnight rate target actually represents an easing of monetary policy since the bank’s last announcement six weeks ago, because inflation expectations have increased, and the recovering economy has probably raised the level of the overnight rate that would be consistent with steady growth and 2-per-cent inflation.


IF CENTRAL BANKS DON’T WANT US TO WORRY ABOUT INFLATION, THEY SHOULD SOUND MORE LIKE THEY DO

G&M - Andrew Coyne (2021-07-19)

Confirmation bias being what it is, inflation hawks and doves have each been able to point to evidence in recent days to prove their point.


WHAT MIGHT THE BANK OF ENGLAND DO TO WEAN THE UK ECONOMY OFF STIMULUS?

Reuters - Reuters (2021-07-19)

Two top Bank of England officials surprised investors this week by saying the time might be nearing for the British central bank to rein in the huge stimulus programme it has used to steer the economy through the coronavirus crisis.


CRYPTO TRADERS LOVED BIG LEVERAGED BETS UNTIL INEXPLICABLE CRASH

Bloomberg - Justina Lee (2021-07-19)

On the day of one of the cryptocurrency market’s worst routs, Alex Holland woke up to a wave of messages from friends and family. They knew he had made a big wager recently that prices would fall.


CREDIT SUISSE IS LOSING MIDEAST STAFF OVER A TOXIC WORK CULTURE

Bloomberg - Marion Halftermeyer and Archana Narayanan (2021-07-19)

Bruno Daher, Credit Suisse Group AG's top executive in the Middle East, had an unusual message at a May sales meeting: an apology. He was sorry about having said earlier that he’d put a gun to his bankers’ heads if they didn’t shape up. He tends to speak in metaphors, he explained.


ACCOUNTANTS, LAWMAKERS URGE RULES ON CRYPTO ACCOUNTING

WSJ - Mark Maurer (2021-07-19)

Accountants and lawmakers are urging standard-setters to fill a void and write concrete rules telling companies how to account for bitcoin and other cryptocurrency assets.


ADVISORS, INVESTORS TURN THEIR BACKS ON BITCOIN

Investment Executive - IE (2021-07-19)

Canadian advisors and investors are overwhelmingly bullish across most market indexes and asset classes, with energy coming out on top, according to the third-quarter 2021 advisor and investor sentiment surveys from Horizons ETFs Management (Canada) Inc.


AS PANDEMIC FADES, WALL STREET COOLS TOO

Investment Executive - James Langton (2021-07-19)

The five largest U.S. banks — Bank of America Corp., Citigroup, Inc., Goldman Sachs Group, Inc. JPMorgan Chase & Co., and Morgan Stanley — saw their combined capital markets revenues decline by 17% in the second quarter of 2021, as market conditions improved.


News feed


Displayed data is for demo purposes. To login or subscribe for full access, click here.

CANADIAN DOLLAR HITS TWO-WEEK HIGH AS FEDERAL RESERVE STANCE BOLSTERS SENTIMENT

G&M - Fergal Smith (2021-07-30)

The Canadian dollar touched a two-week high against its broadly weaker U.S. counterpart on Thursday, as the Federal Reserve remained patient about reducing stimulus and the Bank of Canada reassured Canadians it would keep inflation under control.


WHY CASH SURVIVED THE COVID-19 PANDEMIC

G&M - Matt Lundy (2021-07-30)

In the early stages of the pandemic, there was a “sharp spike” of withdrawals, driven by demand for $50 and $100 bills, the paper said. Meanwhile, deposits of cash into accounts were “persistently low” through 2020. This may have been partly owing to lockdown restrictions that slowed the turnover of cash in the economy, the researchers noted.


TRADING APP ROBINHOOD SET TO GO PUBLIC ON STOCK EXCHANGE THURSDAY

CBC - AP (2021-07-30)

Robinhood will begin offering its stock on Wall Street Thursday, the very place the online brokerage has rattled with its stated goal of democratizing finance.


AMY TER HAAR: WHY EVERYONE IN CRYPTO IS TALKING ABOUT THE LONDON HARD FORK

FP - FP (2021-07-30)

On Aug. 4 at block 12,965,000, the London Hard Fork will go live on the Ethereum main network when a series of five protocol updates called EIPs (Ethereum Improvement Proposals) are deployed.


FSIM briefings and developments reports



Displayed data is for demo purposes. To login or subscribe for full access, click here.

Select Category Enter a Search Term Select Date