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

Canadian real estate and government, March 29

The latest Canadian real estate and government news. Risk of collapse, end of QE and rate rise are some of the issues discussed. Also the governments poor foreign policies on Ukraine are covered.
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FIRE report January 12th

Indigenous banking part 2 a continuation of earlier discussion of First Nations Bank. Other news:-Inflation-M&A under scrutiny-RBC has eyes on Europe
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BOC and reconciliation with Indigenous people

The Bank of Canada and other central banks, in conjunction with indigenous leaders want reconciliation and better economic outcomes for individuals. This video explores what is happening, gives the back story and sets the stage for a more in-depth analysis.
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Nov 26 FIRE report

Inflation and tariffs hit Trudeau in the face. Oil route as new strain goes viral. BNPL benefits questioned and investors open their wallets to receive dividends.
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FSIM FIRE report Nov 23

Duobank/Fairstone merger & Amozon boycott of Visa along with recent banking, insurance and real estate news from Canada.
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Nov 18th FIRE report

The latest financial news from the financial services industry monitor. Insurance companies should know that in 1990 BC flooding devastated the same flood plains as today. This report features coverage of insane inflation, interest rates hikes and the ongoing real estate melt-up.
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Poloz debunked, Nov 12 FIRE report

Poloz is wrong about inflation, university pension funds are out of their league, Home Capital run away, real estate wars and more from the financial services industry monitor.
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Central bank digital currencies: foundational prin

Central bank digital currencies: foundational principles and core features
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Nov 5th FIRE report

Topics todayDividends are backHigher interest rates are comingCOP26: Central bankers making miners richTO real estate melt-up
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FIRE report November 2nd

The latest Canadian FIRE news covering inflation risk and opportunities, Canadian Western bank expansion, governance and stablecoins.
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Canadian real estate February 24

Recap of recent real estate news in Canada. Tiff Macklem and market exuberance, cottage country price appreciation and the rise of lumber prices.
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Real estate: Feb 9, bulls vs bears

Bulls versus the bears, this week in the Canadian real estate industry.
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Feb 1, The Dumb Money Real Estate Vid

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.
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January real estate report 2021

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.
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December 4th real estate report

Taxes are going up, TO condo prices are going down and recreational property up 15% to 40% in the Canadian market.
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Real estate, mortgage debt to income ratio improve

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.
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Real estate: fiscal conservatism/ponzi neoliberali

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.
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Caution for real estate investors, Oct 14th report

October 14th real estate report describing the issues in the market the last two weeks.
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Canadian bank industry overview - part 1

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.
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Why insurance should partner with flood-claim.com

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

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.
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Current state of fintech in Canada

Mr. Michael R. King, Tangerine Chair in Finance and Co-Director, Scotiabank Digital Banking Lab / Ivey Business School at Western University
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XE.com explains their Big Data and AI strategy.

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.
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Greenpeace urges TD bank boycott

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.
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Insurance flood US vs Can comparison.

This video provides an overview of the main differences between Canada's approach to overland flooding versus the US approach.
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Canadian bank industry overview part 5

Canadian bank overview part 5, medium-large banks. Banks include Manulife, Tangerine and Laurentian Bank.
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Canadian banking industry overview part 4

Canadian banking industry overview of Canadian Tire Bank, Presidents Choice Financial, Equitable Bank, B2B Bank
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Part 3 Canadian bank industry overview

Overview of small-medium size banks in Canada. Banks covered include Versabank, Hollis Bank, Equity Bank and Caisse Populaire Acadienne.
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Canadian banking overview - part 2

Review of small banks including Bridgewater,Vancity Bank, Concentra, Wealth One, Zag...
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Death to bitcoin, long live bitcoin

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

RBC invested $24 million into Wave Technologies and now they will roll out Waves accounting, invoicing, reporting and billing platform to SMEs.
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Deposits have skyrocketed since the start of the p

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.
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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.

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Research

abcd

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/GamingEventProposal-printsample--en-final.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_original.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

BANNER YEARS FOR INVESTMENT BANKS AT RISK AS PANDEMIC DEALMAKING COOLS SIGNIFICANTLY

G&M - Tim Kiladze (2022-07-07)

The banner years for equity financings and mergers and acquisitions driven by the pandemic are at risk of disappearing, with deal activity slowing significantly in the first quarter – particularly for Canadian share sales.

The value of Canadian equity financings tumbled 81 per cent in the first quarter of 2022 to $3.9-billion, according to Refinitiv, down from $20.9-billion during the same period last year. While the year-over-year comparison is a tough one, because early 2021 was when markets soared, the total value of share sales hasn’t been this low in more than a decade.

Central banks slashed interest rates to their lowest levels possible early in the pandemic to shore up the economy, sending stock prices soaring, and spurring share sales.

Much of the cooling stems from a recent dearth of technology financings. Last year, the sector accounted for roughly one-quarter of all share sales – and tech initial public offerings were particularly popular. So far this year, technology deals have been virtually non-existent because of a market rout in the sector. The tech-heavy Nasdaq Composite is down 12 per cent year to date.

Merger and acquisition (M&A) activity has also cooled in Canada, with US$66.6-billion worth of deals announced during the first quarter, including debt, according to Refinitiv, down 45 per cent from the same quarter last year.

The trend is playing out around the world, with the global value of M&A deals down 23 per cent, according to Refinitiv. However, the pace of mergers and acquisitions is still relatively healthy compared to prepandemic years.

Macroeconomic pressures are the leading factors behind the recent changes. “We are living with heightened volatility and uncertainty,” said Nitin Babbar, global co-head of equity capital markets at RBC Dominion Securities.

Inflation sparked the uncertainty last fall, which led to a growth-stock selloff that pummelled the tech sector. Those fears haven’t abated, and now geopolitical concerns hover over everything. Minutes from the latest meeting of the U.S. Federal Reserve were released on Wednesday, and they showed that Fed officials wanted to start hiking interest rates aggressively, but decided to go slow because of the economic ripple effects from Russia’s attack on Ukraine.

Despite the growing uncertainty, many of the share sales that launched in the first quarter of this year were successful. Bank of Montreal 

BMO-T -0.96%decrease  

 recently sold $2.7-billion worth of stock to help pay for its acquisition of Bank of the West, for one, and the deal was well-received by investors. “We haven’t seen issuers who really want to [raise money] and we have to say, ‘you can’t,’” RBC’s Mr. Babbar said. “It’s just a question of issuer need.”


JPMORGAN'S DIMON FACES SHAREHOLDER ADVISORY VOTE ON $52.6 MILLION RETENTION AWARD

Reuters - David Henry (2022-05-16)

Long-time JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon will find out on Tuesday how shareholders feel about a special $52.6 million stock option award he received to stay on for five more years, which is opposed by two key investor advisory firms.


IT'S A GOOD TIME TO THINK ABOUT STAGFLATION HAVENS

Bloomberg - John Authers (2022-05-16)

Risk assets are falling, and have ample reasons to fall. What to do about this? In the short term there are decent arguments that it’s time for a rally within the bear market. But how best to deploy assets for the longer term? 


CRYPTO’S FALL, IN THREE CHARTS

Bloomberg - Joshua Brustein (2022-05-16)

After months of decline, the bottom dropped out of the crypto market, sparking talk of a “crypto winter,” when many tokens lose most of their value for a sustained period. Investors who’d been hoping to get rich quick are now trying to figure out if they can cut their losses instead.


CHINA TO LIMIT ‘EXCESSIVE’ INCENTIVES FOR BANKERS IN PAY CURBS

Bloomberg - Cathy Chan (2022-05-16)

Chinese regulators told the nation’s securities industry to avoid handing out “excessive” short-term incentives to employees and smooth out the pace of pay disbursements, in their latest effort to rein in risks and promote “common prosperity.”


MOST CANADIAN REAL ESTATE GAINS WILL BE WIPED OUT STARTING THIS YEAR: OXFORD ECON

Better Dwelling - Stephen Punwasi (2022-05-16)

Canadian real estate prices are expected to begin their sharp decline this year. Rising rates, record un-affordability, and policies to curb demand and boost supply all contribute. As mentioned before, the firm previously forecast a 24% decline in home prices. So far the forecast sticks, as the economic environment returns to efficiency.


TOO IN DEBT TO FAIL? BANK OF CANADA WARNS REAL ESTATE MAY PAUSE RATE HIKES

Better Dwelling - Stephen Punwasi (2022-05-16)

Earlier this week, RBC warned the BoC might pause rate hikes once they reach the neutral policy rate. They’ll reassess the situation, and then decide if they’ll need to continue higher. Yesterday, the Deputy Governor confirmed that was the plan. Various reasons could impact whether they’ll pause or go past the neutral range. However, the one that stands out is housing — it’s become such a big bubble it may now weigh on the whole economy. 


BUSINESS INSOLVENCY FILINGS UP NEARLY 34%

Investment Executive - Staff (2022-05-16)

Canadian business insolvency filings increased the most in 31 years last quarter, and rising interest rates could push the number even higher, according to the Canadian Association of Insolvency and Restructuring Professionals (CAIRP).


CANADIANS ARE SITTING ON $300-BILLION IN EXCESS SAVINGS. WHAT HAPPENS NEXT IS ANYONE’S GUESS

G&M - Matt Lundy, Mark Rendell (2022-05-16)

Paul Bannister is making up for lost time.


COOLING REAL ESTATE MARKET GIVES SOME LEVERAGE BACK TO HOMEBUYERS

G&M - Evan Buhler (2022-05-16)

On paper, Canada’s housing market is still firmly in sellers’ territory. But in some areas of the country, slowing home-price growth and soaring mortgage rates are tilting the power balance toward buyers faster than the statistics would suggest. That means everything from scrambling to line up a mortgage, to fewer bidding wars, to transactions that – once again – include the right to a home inspection.


ELON MUSK PUTS $44-BILLION TWITTER DEAL ‘TEMPORARILY ON HOLD’ OVER FAKE ACCOUNT DATA

G&M - Nivedita Balu (2022-05-16)

Twitter shares initially fell more than 20 per cent in premarket trading, but after Mr. Musk, the chief executive of electric car market Tesla Inc., sent a second tweet saying he remained committed to the deal, they regained some ground.


CRYPTO MARKETS TUMBLE AND INVESTORS GET THEIR FINGERS BURNED

CBC - Don Pittis (2022-05-16)

People who put their hard-earned cash into a tumbling cryptocurrency unit that is at the heart of the latest sharp decline in digital coins may be regretting they did not read a recent paper by Canadian financial technology scholar Ryan Clements demonstrating why it was bound to fail.


ASSESSING THE EVOLUTION OF CRYPTOCURRENCY: DEMAND FACTORS, LATENT VALUE, AND REGULATORY DEVELOPMENTS LATENT VALUE, AND REGULATORY DEVELOPMENTS

University of Alberta - Ryan Clements (2022-05-16)

Scolarly article on bitcoing and its value from 2017.


CRYPTO STRESS IS FEEDING THE WIDER SELLOFF IN GLOBAL MARKETS

Yahoo Finance - Lynn Thomasson (2022-05-16)

“Contagion here is not via linkages between the crypto ecosystem and the traditional financial system, but via retail investors sentiment,” said Nikolaos Panigirtzoglou, global market strategist at JPMorgan Chase & Co. “If the $1 trillion capital loss in crypto markets causes broad-based retrenchment by retail investors in other risk assets such as equities, then that’s where the spillover is.”


YAHOO FINANCE CANADA VIDEOS WHY BANK OF CANADA CRITICISM IS JUSTIFIED

Yahoo Finance - Yahoo (2022-05-16)

On this episode of Editor's Edition, Yahoo Finance Canada's Alicja Siekierska and the Public Policy Forum's Sean Speer discuss the criticism being aimed at the Bank of Canada. Speer argues that the debate around the Bank’s decisions – as well as of other institutions – is justified in the post-pandemic recovery.


KLARNA CEO ON THE CANADIAN EXPANSION, OPEN BANKING AND TAKING ON THE FINANCIAL SERVICES OLIGOPOLY

FP - Stephanie Hughes (2022-05-16)

Swedish fintech leader Klarna Bank is planning to establish a product development and tech hub in Toronto as it looks to grow its “buy now, pay later” model in the increasingly competitive North American market.


MANULIFE RESULTS HIT BY COVID RESURGENCE IN ASIA, BUT CEO SEES TAILWIND FROM RISING RATES

FP - Barbara Shecter (2022-05-16)

Interest rates generally are positive for the insurance industry and they’re certainly a positive for Manulife, and they manifest themselves in a variety of ways,” Roy Gori, chief executive of Toronto-based Manulife Financial Corp., said in an interview Wednesday.


STOCKS, OIL SLIP AS DIRE CHINA DATA FEED RECESSION FEARS

Reuters - Wayne Cole (2022-05-16)

Asian share markets stumbled on Monday and oil prices slid after shockingly weak data from China underlined the deep damage lockdowns are doing to the world's second-largest economy.


HSBC HIRES ROBEY WARSHAW TO ADVISE ON PING AN BREAK-UP PRESSURE

Reuters - Reuters (2022-05-16)

Chinese insurance firm Ping An (601318.SS) last month called on HSBC to look at ways to boost returns, in a move viewed by some analysts as potentially being driven more by politics than finance. read more


INTEREST RATE TRAJECTORY WILL DEPEND HEAVILY ON HOUSING MARKET, BANK OF CANADA DEPUTY GOVERNOR SAYS

G&M - Mark Rendell (2022-05-13)

The Bank of Canada needs to keep raising interest rates to tackle runaway inflation, deputy governor Toni Gravelle said on Thursday – although how high rates go will depend on how the housing market responds to rising borrowing costs.


PIERRE POILIEVRE FANS FRUSTRATION ABOUT CANADA’S INFLATION WOES

G&M - DAVID PARKINSON (2022-05-13)

In his loud and frequent criticism of the Bank of Canada, Pierre Poilievre has been getting a lot of mileage out of how the central bank started the COVID-19 crisis thinking deflation, not inflation, would be the country’s big worry. The Conservative Party leadership candidate recently called the bank’s brain trust “financially illiterate” for getting the inflation call so badly wrong.


MORTGAGE STRESS TEST RULES MAY CHANGE AS INTEREST RATES CLIMB AND HOUSING MARKET COOLS, SAYS REGULATOR

G&M - Rachelle Younglai (2022-05-13)

Canada’s banking regulator is leaving the door open to tweak its mortgage stress test before the end of this year, as the cost of borrowing soars and the housing market starts to cool across the country.


HELOCS HAVE US COMPLACENT AND GREEDY ABOUT DEBT. THEY’RE NOW A DEFINING CANADIAN CHARACTERISTIC

G&M - Bridget Casey (2022-05-13)

If you asked me what Canada is known for, I’d tell you the Rocky Mountains, maple syrup, and home equity lines of credit.


BANK OF CANADA’S 1% POLICY RATE ‘TOO STIMULATIVE,’ GRAVELLE SAYS

Yahoo Finance - Erik Hertzberg (2022-05-13)

Speaking in Montreal, the deputy governor outlined how higher commodity prices, global supply chain issues, and the reopening of economies are pushing up inflation. Gravelle also said that the bank’s near-term forecasts for price gains are likely to be revised up, adding that “inflation pressures have been higher and more tenacious than we expected.”

   


WHAT YOU NEED TO KNOW ABOUT PIERRE POILIEVRE'S THREAT TO FIRE TIFF MACKLEM

FP - Kevin Carmichael (2022-05-13)

Here’s what Poilievre, member of Parliament for Carleton, a riding on the outskirts of Ottawa, said he’d do with Macklem during a debate with the other leadership candidates in Edmonton on May 11: “I would replace him with a new governor who would reinstate our low-inflation mandate, protect the purchasing power of our dollar, and honour the working people who earned those dollars.”


MANULIFE RESULTS HIT BY COVID RESURGENCE IN ASIA, BUT CEO SEES TAILWIND FROM RISING RATES

FP - Barbara Schecter (2022-05-13)

Interest rates generally are positive for the insurance industry and they’re certainly a positive for Manulife, and they manifest themselves in a variety of ways,” Roy Gori, chief executive of Toronto-based Manulife Financial Corp., said in an interview Wednesday.


WITH STOCK SELLOFF RAGING, VIEWS ABOUND ON WHERE IT WILL END

FP - Lu Wang (2022-05-13)

“Having a framework for times of uncertainty is imperative,” said Chad Morganlander, senior portfolio manager at Washington Crossing Advisors. “Not having a proper risk protocol or risk framework is equivalent to not having a carbon monoxide detector or fire detector in your house. Or driving drunk in a Ferrari blindfolded.”


TRADERS READY FOR WILDER SWINGS AS RATE RISES STOKE VOLATILITY

Reuters - Dhara Ranasinghe, Saikat Chatterjee and Davide Barbuscia (2022-05-13)

Traders in the world's largest markets are having to navigate wild intra-day swings and shrinking deal sizes as central banks rapidly withdraw stimulus measures, in a small-scale reminder of a pandemic-driven financial seize-up just two years ago.


U.S. SENATE CONFIRMS POWELL FOR SECOND TERM AS FED CHIEF IN BIPARTISAN VOTE

Reuters - David Morgan (2022-05-13)

Most of the nays were Republicans, though a few Democrats, including Robert Menendez and Elizabeth Warren, joined them. Menendez said Powell had not done enough to promote diversity in the Fed's leadership, while Warren said he had fallen short on bank regulation.


KPMG FACES $18 MILLION MISCONDUCT FINE FOR MISLEADING REGULATOR

Reuters - Kristin Ridley (2022-05-13)

KPMG faces a 14.4 million pound ($17.6 million) fine after admitting it misled regulators during spot checks on audits of construction group Carillion and software firm Regenersis.


THE SEC IS NOW THE STUFF OF CHINESE INVESTORS’ FEVER DREAMS

Bloomberg - Shuli Ren (2022-05-13)

In recent days, I’ve spoken to about half a dozen investors in Hong Kong and New York who blame the US Securities and Exchange Commission for the recent selloff in China’s technology companies. They say they’ve spotted a pattern: provisional delisting announcements by the Washington regulator have tended to precede a drop in the broader market.


CANADA’S REAL ESTATE BUBBLE IS SO BIG A $91K PRICE DROP ONLY WIPES OUT 3 MONTHS

Better Dwelling - Stephen Punwasi (2022-05-13)

This year, Canada’s Big 3 real estate markets made huge gains; they look modest beside the rest of the bubble. Toronto’s home prices could lose $51,900 from the March high and only have reversed Q1 2022. Vancouver home prices advanced less than half the amount ($25,000) of Toronto, being the modest city it is. Montreal ($12,300) looks almost normal-ish in contrast.


GOING ‘TO ZERO’—PANIC IS SWEEPING CRYPTO MARKETS, HITTING THE PRICE OF BITCOIN, ETHEREUM, BNB, XRP, CARDANO, SOLANA, TERRA’S LUNA AND AVALANCHE

Forbes - Billy Bambrough (2022-05-12)

The bitcoin price has dipped back toward $30,000 per bitcoin after plunging under the closely-watched level earlier this week. Ethereum and its major rivals BNB BNB -19.6%, solana, cardano and avalanche have also crashed. Solana SOL -31.6% and avalanche are leading the major market lower with a 10% and 20% decline respectively.


SNC-LAVALIN GETS A DEFERRED PROSECUTION AGREEMENT – A FIRST IN CANADA

G&M - Nicolas Van Praet (2022-05-12)

Quebec prosecutors have received court approval for a deferred prosecution agreement with Canadian engineering giant SNC-Lavalin Group Inc., the first such deal since the new legal mechanism became law in 2018.


MANULIFE MISSES ESTIMATES FOR FIRST-QUARTER CORE PROFIT

Reuters - Reuters (2022-05-12)

Manulife Financial on Wednesday missed estimates for first-quarter core profit, which fell from a year earlier as COVID-19 disrupted new business activities in multiple markets across Asia.


SCOTIABANK NO LONGER A MEMBER OF OIL AND GAS LOBBY GROUP CAPP

G&M - CP (2022-05-12)

The Bank of Nova Scotia 

BNS-T -0.41%decrease    is no longer a member of the oil and gas lobby group Canadian Association of Petroleum Producers.


POILIEVRE SAYS HE WOULD REMOVE BANK OF CANADA GOVERNOR IF HE FORMS GOVERNMENT

G&M - MARIEKE WALSH AND MARK RENDELL (2022-05-12)

Conservative leadership candidate Pierre Poilievre said he would remove the Bank of Canada Governor if he forms government, a breach of the convention that separates the central bank from elected politics.


SOLID RESULTS: SUN LIFE REPORTS FIRST QUARTER 2022 RESULTS

Cision - Press Release (2022-05-12)

"Sun Life delivered solid first quarter results driven by the strength of our diversified business model. We continue to deliver on our Purpose for Clients amidst a challenging economic environment and ongoing COVID-19 impacts. We saw our insurance and wealth sales grow this quarter, highlighting the value our Clients place on financial security and healthier lives, and we delivered strong long-term investment performance," said Kevin Strain, President and CEO of Sun Life. "Our capital position remained strong and we are pleased to announce a 4.5% increase in our dividend to $0.69 per common share, reflecting our confidence in meeting our medium-term financial goals."


U.S. INFLATION HIT 8.3% LAST MONTH BUT SLOWS FROM 40-YEAR HIGH

CBC - Christopher Rugaber (2022-05-12)

Nationally, the price of a gallon of regular gas has reached a record $4.40 US, according to the American Automobile Association (AAA), though that figure isn't adjusted for inflation. The high price of oil is the main factor. A barrel of U.S. benchmark crude sold for around $100 a barrel Tuesday. Gas had fallen to about $4.10 a gallon in April, after reaching $4.32 in March.


PBOC SAYS IT’S MAKING STABILIZING GROWTH A HIGHER PRIORITY

Yahoo Finance - Bloomberg (2022-05-12)

The yuan extended losses, falling as much as 0.6% to a fresh low of 6.7630, after Chen’s comments. The decline came even after the central bank set a stronger-than-expected fixing for a eighth straight session on Thursday. The yield on 10-year government bonds was little changed at 2.82%.


SHAREHOLDERS SUBJECTED THE FEMALE CEO OF INSURANCE GIANT AVIVA TO MULTIPLE SEXIST COMMENTS AT AGM THAT LEFT BOARD CHAIR 'FLABBERGASTED'

Yahoo Finance - Urooba Jamal (2022-05-12)

The incident highlights the challenges women in top executive roles continue to face in the workplace. Challenges persist even at firms such as Aviva, where 50% of board members are women, and women also make up key leadership roles, including the chief financial officer and chief marketing officer positions, Fortune reported.


'WE'RE NOT GETTING IT PERFECT': CAROLYN ROGERS SAYS THE BANK OF CANADA IS LEARNING FROM ITS MISTAKES

FP - Kevin Carmichael (2022-05-12)

The Bank of Canada’s leaders dislike how they’ve been dragged into a partisan political contest. But they didn’t need Pierre Poilievre’s emergence as Canada’s answer to former United States congressman Ron Paul to know that a segment of the population has lost faith in them.


EQUITABLE POSTS BEST EARNINGS EVER AS MORTGAGE BUSINESS STAYS STRONG

FP - Stephanie Hughes (2022-05-12)

EQ Bank saw a 27 per cent boost in earnings to $87.9 million in the three months ending March 31, or diluted earnings of $2.51 per share. This came as the company’s conventional loans segment rose 35 per cent year over year to $22.5 billion.


DOES THE CRYPTOCURRENCY CRASH POSE A THREAT TO THE FINANCIAL SYSTEM?

Reuters - Hannah Lang (2022-05-12)

In November, the most popular cryptocurrency, bitcoin, hit an all-time high of more than $68,000, pushing the value of the crypto market to $3 trillion, according to CoinGecko. That figure was $1.51 trillion on Tuesday.


CRYPTO BILLIONAIRES’ VAST FORTUNES ARE DESTROYED IN WEEKS

Bloomberg - Scott Carpenter (2022-05-12)

Coinbase Global Inc. founder Brian Armstrong had a personal fortune of $13.7 billion as recently as November and about $8 billion at the end of March. That’s now just $2.2 billion, according to the Bloomberg Billionaires Index, after a selloff in digital currencies from Bitcoin to Ether triggered a precipitous decline in the market value of Coinbase, the largest US cryptocurrency exchange.
The firm’s shares have tumbled 84% since their first day of trading in April 2021, closing Wednesday at $53.72 after the company warned that trading volume and monthly transacting users were expected to be lower in the second quarter than in the first.  


MOST CANADIAN REAL ESTATE MARKETS HAVE SLOWED, PRICES FELL UP TO $40K IN A MONTH

Better Dwelling - Kaitlin Last (2022-05-12)

As some institutions have warned, this isn’t an issue of demand so much as one of speculation. It generally takes 18 to 24 months for a rate hike to fully hit the market, but only minutes to kill exuberance.


TURKEY DIALS UP THE PRESSURE ON BANKS AS LIRA SLIDES

FT - Laura Pitel (2022-05-12)

Turkish authorities have raised the pressure on the country’s banks to limit corporate clients’ purchases of foreign currency in an effort to halt a renewed slide of the lira. Bankers in Istanbul, Turkey’s financial centre, say that they are facing increased interference from the central bank, with officials probing corporate FX transactions worth as little as $1mn.


THE SUN STARTS TO SET ON WILD WEST DAYS OF CRYPTO

FT - Eva Szalay (2022-05-12)

Even as cryptocurrencies have become more widely accepted as an asset class, they have struggled to throw off their reputation of inhabiting a digital “Wild West” — a place where law and regulation rarely apply. There are signs, though, that the lawless days of cryptocurrencies are coming to an end. And, as a result, companies marketing crypto assets — as well as digital services providers — are scrambling to avoid being taken to task by new regulatory requirements. Cryptocurrency markets have grown fast since the beginning of the coronavirus pandemic, and the industry’s value has regularly exceeded $2tn, according to financial authorities. Last month Fabio Panetta, executive board member of the European Central Bank, told a US audience that the market for crypto is now larger than that for subprime mortgages was — $1.3tn — when it triggered the global financial crisis in 2008.


STOCKS NEAR FIRST CORRECTION IN CANADA SINCE COVID CRASH OF 2020

Yahoo Finance - Stefanie Marotta (2022-05-11)

The Canadian market has so far avoided the steep losses seen in the U.S., falling 6.3% this year compared with the 16.1% drop in the S&P 500 Index. Investors had been piling back into commodities stocks -- which make up about a third of the Canadian index -- as markets reacted to a tight oil market, economic uncertainty and rising rates.


FINANCIAL CRISIS MORE LIKELY THAN RECESSION AMID MARKET MAYHEM

FP - Larysa Harapyn (2022-05-11)

Greg Taylor, Chief Investment Officer and Portfolio Manager at Purpose Investments, talks with Financial Post’s Larysa Harapyn about how a financial crisis is more likely than a recession amid market mayhem.


CANADIANS ARE CLINGING TO CASH AS A SAVINGS STRATEGY DURING THE PANDEMIC: RBC

FP - Stephanie Hughes (2022-05-11)

Cash withdrawals surged at the onset of the pandemic as circulating notes increased twice as much as expected in 2020 and remained elevated in the following year, according to an April 14 Bank of Canada report.


BROOKFIELD WILL SPIN OFF ITS ASSET-MANAGEMENT UNIT: SOURCE

FP - Layan Odeh (2022-05-11)

The new publicly traded entity will control Brookfield’s fee-generating assets, such as real estate, infrastructure, credit, private equity and renewable energy. The unit’s assets under management were US$364 billion as of Dec. 31.


FINDING THE COMMERCIAL MORTGAGE SWEET SPOT WITH THE RIGHT MORTGAGE BROKER

FP - Kathryn Boothby (2022-05-11)

Before deciding to buy a commercial property or available land, it’s important to determine if it is the best choice.


ECB TO START RAISING RATES GRADUALLY THIS SUMMER - VILLEROY

Reuters - Reuters (2022-05-11)

He said he expected inflation to remain "high" for the rest of 2022 but added that inflation should get back down to around the 2% level by 2024.


TERRAUSD STABLECOIN PLUNGES AS CRYPTO MARKET AWAITS RESCUE

Bloomberg - Muyao Shen (2022-05-11)

TerraUSD, the controversial algorithmic stablecoin, slumped on Wednesday as crypto markets await a rescue led by primary backer Do Kwon.  


RBC MAKES ANOTHER UPWARD REVISION TO ITS BANK OF CANADA RATE FORECAST

Better Dwelling (2022-05-11)

In response, RBC is once again raising its interest rate forecast. After the 50 bps hike in April, the biggest since 2000, they expect another 50 bps each at the June and July meetings. The two meetings afterward are expected to get a 25 bps hike, respectively.


PRIVATE CREDIT A LURKING SYSTEMIC RISK

Investment Executive - James Langton (2022-05-11)

“As private credit has flourished, risks have also grown,” the report said. “In this highly interconnected and deeply opaque market, a broad deterioration in borrower credit quality has the potential to cause cascading disruptions across the capital markets and broader economy.”


RBC TO HIKE PAY 3 PER CENT FOR LOWER-PAID EMPLOYEES AS FIGHT FOR TALENT INTENSIFIES

CBC - James Bradshaw (2022-05-10)

Royal Bank of Canada 

RY-T -1.44%decrease    is raising base pay by 3 per cent for its lower-paid employees as part of a $200-million spending package that aims to fend off fierce competition for talent by improving salaries and benefits.


SELL THE FAMILY HOME TO LOCK IN PROFIT AND THEN RENT? BETTER NOT

G&M - Rob Carrick (2022-05-10)

If houses are investments, then buying is only half the battle.


WORLD’S MAIN CENTRAL BANK GROUP CALLS FOR PEOPLE, FIRMS TO BE GIVEN MORE CONTROL OVER DATA COLLECTED BY BIG TECH

G&M - Marc Jones (2022-05-10)

A paper published by the world’s main central bank umbrella group, the BIS, has called for individuals and firms to be given more control over the data collected on them by social media and other Big Tech firms and banks.


VERSABANK ANNOUNCES APPOINTMENT OF RICHARD JANKURA TO BOARD OF DIRECTORS AND RETIREMENT OF LONG-TIME DIRECTOR, RICHARD CARTER

VersaBank - Press Release (2022-05-10)

"I am very pleased to welcome Mr. Jankura to the VersaBank board," said the Honourable Thomas A. Hockin, Chair of VersaBank's board of directors. "Mr. Jankura has a long and distinguished career in business, finance and accounting, including many years in the banking industry.  We look forward to his contribution as VersaBank continues to pursue outsized, long-term growth as a leader in digital banking and cyber security solutions."


DANISH INFLATION HITS 6.7%; HIGHEST SINCE 1984

Yahoo Finance - Yahoo (2022-05-10)

The agency said that it is largely price changes in goods that raise the annual increase in the consumer price index. Goods have risen by an average of 10.3% and that was the highest annual increase since November 1982, when the annual increase also was 10.3%.


WALL STREET SELLS OFF, LED BY GROWTH SHARES AMID RATE CONCERNS

FP - Caroline Valetkevitch (2022-05-10)

The S&P 500 fell below 4,000, with Apple shares the biggest weight on the index, as well as on the Nasdaq.


TSX TANKS MORE THAN 600 POINTS AS COMMODITIES JOIN STOCK RETREAT

FP - Stephanie Hughes (2022-05-10)

“Investors should really realize that this is all healthy, capitalism requires economic cycles,” Newman said, adding that bull cycles of the sort that investors have enjoyed recently don’t last forever. “This could be the pause that refreshes if the cycle continues, and when central banks can pull off the soft landing. The good news for investors is that there’s already been a significant adjustment.”


BDC CAPITAL TURNS TO PENSION FUNDS FOR CLEAN TECH EXPANSION

FP - Estaban Duarte (2022-05-10)

A “sort of key theme that we’re pursuing is also how do you get other private sector funders to co-invest with us so that they benefit the ecosystem as a whole,” said Lally Rementilla, managing partner of BDC Capital’s intellectual property-backed financing fund. “As an example, in the clean tech and sustainability space, there is a lot of focus on, ‘How do you bring the state pension funds to come in and invest with us?'”


TIGER GLOBAL HIT BY $17 BLN LOSSES IN TECH ROUT- FT

Reuters - Reuters (2022-05-10)

New York-based Tiger Global has been hit by losses of around $17 billion during this year's technology stock selloff, marking one of the biggest dollar declines for a hedge fund in history, the Financial times reported on Tuesday.


FED WARNS OF WORSENING MARKET LIQUIDITY IN STABILITY REPORT

Bloomberg - Matthew Boesler (2022-05-10)

The Federal Reserve warned of deteriorating liquidity conditions across key financial markets amid rising risks from the war in Ukraine, monetary tightening and high inflation in a semi-annual report published Monday.


CRYPTO’S AUDACIOUS ALGORITHMIC STABLECOIN EXPERIMENT CRUMBLES

Bloomberg - Stacy-Marie Ishmael (2022-05-10)

Algorithmic stablecoins, like their more “traditional” counterparts, are supposed to provide calm in the chaos of crypto. Instead, as investors in one such token are rapidly finding out, they can serve as lightning rods for volatility.


DAY TRADER ARMY LOSES ALL THE MONEY IT MADE IN MEME-STOCK ERA

Bloomberg - Lu Wang (2022-05-10)

It’s ending as fast as it began for retail day traders, whose crowd-sourced daring was the pre-eminent story of pandemic equities.


CANADIAN BUILDING PERMIT VALUES FELL AS HOUSING DEMAND SOFTENS FROM PEAK

Better Dwelling - Daniel Wong (2022-05-10)

The monthly dollar value of residential permits climbed to a 12-month high. Permit values reached $7.9 billion in March, up 4.7% from the month before. Compared to last year, the value is 3.2% lower. Due to the building surge over the past couple of years combined with higher interest rates, a slowdown was widely expected this year. 


CANADIAN HOME BUYERS NEED $42,000 PER YEAR FOR PAYMENTS IN Q1 2022: DESJARDINS

Better Dwelling - Daniel Wong (2022-05-10)

Housing affordability is rapidly eroding and the worst in the DAI’s history. The Index dropped 10.7 points in Q1 2022, hitting the worst affordability ever. Unfortunately the Index only goes back to 2006, but other indexes show how bad things actually are. Affordability hasn’t been this bad in three decades and is likely to get worse.


NUMEROUS RETAIL CBDCS ON THE HORIZON

Investment Executive - James Langton (2022-05-10)

“An ambitious, multi-year G20 program is underway to make cross-border payments faster and cheaper, as well as more transparent and accessible. CBDCs could play an important role here — according to the respondents especially in terms of shortening current transaction chains and providing longer operating hours,” it said.


U.S. ADDED 428,000 JOBS IN APRIL DESPITE SURGING INFLATION

Investment Executive - Paul Wiseman (2022-05-10)

America’s employers added 428,000 jobs in April, extending a streak of solid hiring that has defied punishing inflation, chronic supply shortages, the Russian war against Ukraine and much higher borrowing costs.


BITCOIN FALLS BELOW $30,000 FOR FIRST TIME SINCE JULY 2021

FT - Scott Chipolina (2022-05-10)

Bitcoin has tumbled below $30,000 for the first time since July as interest rate rises send investors fleeing from the riskiest corners of global financial markets.


BLACKROCK WARNS IT WILL VOTE AGAINST MORE CLIMATE RESOLUTIONS THIS YEAR

FT - Brooke Masters (2022-05-10)

BlackRock has warned that it will not be supporting most shareholder resolutions on climate this year because they have become too extreme or too prescriptive. The world’s largest money manager, with nearly $10tn in assets, said in a stewardship update that new US rules had allowed a wider range of proposals on to proxy ballots. It added that Russia’s invasion of Ukraine had also changed the environment, requiring more short-term investment in traditional fuel production to boost energy security.


SOARING DOLLAR RAISES SPECTRE OF ‘REVERSE CURRENCY WARS’

FT - Tommy Stubbington (2022-05-10)

The surging dollar has prompted some analysts and investors to forecast a new period of “reverse currency wars” as many central banks abandon a longstanding preference for weaker exchange rates.


CEO SAYS SUNCOR SHOULD RETAIN OWNERSHIP OF PETRO-CANADA CHAIN AS ENERGY FIRM REPORTS HIGHEST QUARTERLY DIVIDEND ON RECORD

G&M - EMMA GRANEY (2022-05-10)

Suncor Energy Inc. has reported the highest quarterly dividend in the company’s history, a much-needed salve as it faces demands for significant, structural change from a powerful activist investor.


RECESSION WORRIES WIDESPREAD AS INTEREST RATES RISE

G&M - Mark Rendell (2022-05-09)

Canadians are gloomy about the likelihood of a recession as interest rates rise sharply and high inflation continues to erode the purchasing power of wages and savings, according to a new poll.


LEADING FINTECH EXPERT TO LEAD PROCESS OF BUILDING KEY PILLARS OF OPEN BANKING SYSTEM

G&M (2022-05-09)

The federal government has taken another step towards establishing Canada’s open banking system, selecting an experienced fintech leader to lead development of a “made-in-Canada” regime.


TORONTO HOME PRICES DROP MOST IN TWO YEARS AS RATES SLAM MARKET

Yahoo Finance - Ari Alstedter (2022-05-09)

The average price of a home in Canada’s largest city declined 6.4% in April from the month before on a seasonally-adjusted basis, to C$1.2 million (about $936,000), according to the Toronto Regional Real Estate Board. That was the biggest monthly drop since April 2020, when the market was largely frozen because of Covid-19 lockdowns.


'HYBRID WORK IS HERE TO STAY': CANADIANS MORE PRODUCTIVE, HAPPIER AND RICHER WORKING PART TIME FROM HOME

FP - Victoria Wells (2022-05-09)

Close to three-quarters of Canadians say they’ve seen improvements to work-life balance by breaking up their time between the home and office, the hybrid work study from Cisco said. And the benefits from this new-found flexibility have stretched across all aspects of people’s lives.


FOUR-FIFTHS OF EM FUNDS STILL TRAPPED IN RUSSIAN STOCKS, RESEARCH SHOWS

Reuters (2022-05-09)

Sanctions alongside Russian counter-measures, including capital controls, have made the country's financial markets broadly inaccessible for foreign investors.


BITCOIN FALLS TO LOWEST SINCE JANUARY, IN LINE WITH TUMBLING STOCK MARKETS

Reuters - Alun John (2022-05-09)

Bitcoin fell to its lowest level since January on Monday as slumping equity markets continued to hurt cryptocurrencies, which are currently trading in line with so-called riskier assets like tech stocks.


BANKS FACE REVERSAL OF FORTUNE FROM WAR AND RUNAWAY INFLATION

Reuters - Sinead Cruise (2022-05-09)

Global banks are taking steps to weather the wider impact of war and runaway inflation as the stream of central bank money that kept them afloat for more than a decade is switched off.



BRITAIN’S BIGGEST BANK IS CAUGHT IN THE U.S.-CHINA CROSSFIRE

Bloomberg - Bloomberg (2022-05-09)

For years, HSBC Holdings Plc and Ping An Insurance Group Co. enjoyed a cozy relationship, from the turns they took financially backing each other to the easy rapport between their influential chairmen.


APRIL JOBLESS RATE DROPS TO ANOTHER NEW LOW AS ECONOMY ADDS 15K JOBS: STATCAN

Investment Executive - Craig Wong (2022-05-09)

“All of these indicators that we look at all tell the same story, and that is a story of a shrinking labour pool and an overheated labour market,” said Tu Nguyen, economist with accounting and consultancy firm RSM Canada.


THEY PROMISED CRYPTO PROFITS BUT BOUGHT LAMBOS INSTEAD: SEC

Investment Executive - James Langton (2022-05-09)

The U.S. Securities and Exchange Commission (SEC) filed fraud charges against MCC International Corp. (MCC) and its founders, Luiz Carlos Capuci, Jr. and Emerson Souza Pires, along with two other companies controlled by Capuci — CPTLCoin Corp. and Bitchain Exchanges.


DREAM RESIDENTIAL REIT PULLS OFF RARE IPO IN AN UGLY MARKET TO BET ON SURGING U.S. RENTAL HOUSING

G&M - Tim Kiladze (2022-05-06)

Dream Residential REIT, the latest company to be spun out of Michael Cooper’s property empire, beat the odds and completed its US$125-million initial public offering in an ugly market. Expanding its portfolio in these turbulent times may require just as much magic.


WHAT MORTGAGE RATE SHOULD YOU CHOOSE RIGHT NOW? THREE ECONOMISTS WEIGH IN

G&M - Robert Mclister (2022-05-06)

“We see another 100 bps of tightening through July, 125 bps by year-end, and 175 bps by mid-2023. Depending on your exact terms, that should leave variable rates just above 4 per cent by this time next year.” “There is a real risk of a downturn – and eventual easing of rates – in the latter half of the upcoming five-year period. Considering that, and the fact that five-year fixed rates are already around 4 per cent, the easy choice to lock in has probably passed by for this cycle.”


BANK OF ENGLAND WARNS OF RECESSION RISK, 10% INFLATION AS IT RAISES INTEREST RATES AGAIN

G&M - WILLIAM SCHOMBERG, DAVID MILLIKEN AND ANDY BRUCE (2022-05-06)

The pound fell by more than a cent against the U.S. dollar to hit its lowest level since mid-2020, below $1.24, as the gloominess of the BoE’s new forecasts for the world’s fifth-largest economy caught investors by surprise.


SHOPIFY STOCK PLUMMETS AS MUCH AS 18% AS EARNINGS MISS EXPECTATIONS

Yahoo Finance - Alicja Siekierska (2022-05-06)

Shopify, which tracks its financial results in U.S. dollars, reported a net loss of $1.5 billion in the three-month period ending March 31, or $11.70 per diluted share, down from a profit of $1.3 billion, or $9.94 per diluted share, during the same time last year. Total sales hit $1.2 billion, up from $989 million last year.


BANK OF CANADA'S CAROLYN ROGERS SAYS SUPPLY IS THE KEY TO SOLVING HOUSING PROBLEM

FP - Stephanie Hughes (2022-05-06)

“We have to fix the supply problem,” Rogers said this week in an interview, her first since replacing Carolyn Wilkins as governor Tiff Macklem’s No. 2 in December. “We keep trying these different things to dampen demand and Canadians still want houses. We have immigration coming in, (and) we have a strong economy.”


WALL STREET BONUSES SEEN SLIDING UP TO 40% ON BANKING SLUMP

FP - Jenny Surane (2022-05-06)

That’s according to the latest projections by Alan Johnson, managing director of the compensation consultancy Johnson Associates Inc. This year’s once-in-a-generation levels of inflation will also weigh on pay, Johnson said Thursday in a report.


THIS BANKING WHIZ EMERGED FROM 'DRAGON'S DEN' WITH $500K AND A MISSION

FP - Sigrid Forberg (2022-05-06)

Hutsy, a digital banking platform, comes with a no-fee account and an app that helps users save, earn cash back and track their finances. With 15,000 users on its waiting list and a $500,000 investment from one of the dragons, this neobank is looking to launch later this year.


AUSTRALIA'S MACQUARIE HAS RECORD YEAR BUT PROFIT WARNING TRIGGERS SHARE SLIDE

Reuters - Byron Kaye (2022-05-06)

Net profit leapt 56% to A$4.71 billion ($3.4 billion) for the year that ended in March, blitzing a Visible Alpha consensus of A$4.45 billion, as its commodities trading unit saw operating income grow 50% due to high levels of trading and hedging.
Shares in the financial giant slid 8% by midsession on Friday, their biggest fall in two years, helping drag the broader Australian market (.AXJO) 2.5% lower.


REVOLUT’S $33 BILLION BANK APP HITS A ROADBLOCK IN BRITAIN

Bloomberg - Stefania Spezzati (2022-05-06)

It was in this spirit that the 37-year-old buttonholed U.K. Chancellor of the Exchequer Rishi Sunak at a London event in February. Revolut has applied for a British banking license, a crucial step in its plan to become a globe-spanning financial “superapp.” It already offers money transfers, store purchases, share trading and pet insurance. A license would add protected U.K. current accounts with overdrafts and loans, the backbone of any grownup bank.


S 30-YEAR FIXED-RATE MORTGAGES ARE NOW OVER 5%, THE HIGHEST SINCE 2009

Better Dwelling - Daniel Wong (2022-05-06)

US mortgage rates have been rocketing higher since the beginning of the year. This week the 30-year fixed-rate mortgage climbed to an average of 5.27%, up 0.17 points from last week. Interest costs for this segment have increased 2.31 points since the previous year. From the lowest rate in history to the highest rate since 2009, all in less than a year. 


BOC REACHING OUT TO INDIGENOUS GROUPS ON ECONOMIC RECONCILIATION

Investment Executive - CP (2022-05-06)

Schembri says the central bank hopes it can take a meaningful step toward building trust and strengthening its relationship with Indigenous peoples.


U.S. FEDERAL RESERVE RAISES INTEREST RATE BY HALF POINT, LARGEST HIKE IN TWO DECADES

G&M - Mark Rendell (2022-05-05)

Fed chair Jerome Powell said he expects the committee will consider increasing the policy rate by 50 basis points at each of its next two meetings, which would bring the Fed Funds rate back above prepandemic levels by the middle of the summer. At the same time, he seemed to rule out an increase of 75 basis points, saying that “is not something the committee is actively considering.”


BANK OF CANADA OPENED THE DOOR FOR TODAY’S INDEPENDENCE QUESTIONS AT A PODIUM TWO YEARS AGO

G&M - DAVID PARKINSON (2022-05-05)

What was striking about the speech this week from the Bank of Canada’s No. 2 official on the importance of central-bank independence wasn’t what she had to say. It was that the bank felt compelled to say it at all.


CMHC WARNS IT MAY NOT REGAIN MARKET SHARE ON MORTGAGE INSURANCE

G&M - Rachelle Younglai (2022-05-05)

Canada’s housing agency said its mortgage insurance business may never return to normal levels after it made the costly decision to temporarily toughen qualification requirements during the early months of the pandemic.


AS FED ISSUES RATE HIKE, MORE WARNINGS THAT STAGFLATION IS COMING TO NORTH AMERICA

CBC - Don Pittis (2022-05-05)

"I think we have a good chance to restore price stability without a recession, without, you know, a severe downturn," Powell told a news conference on Wednesday.


APRIL'S HOME SALES DOWN 41% FROM LAST YEAR, 27% SINCE MARCH: TORONTO REALTY BOARD SOCIAL SHARING

CBC - Tara Deschamps (2022-05-05)

"It certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation," TRREB President Kevin Crigger said in a release.


LOBLAW PROFIT SOARS 40% AS INFLATION HITS GROCERY CHAIN

Yahoo Finance - Alicja Siekierska (2022-05-05)

Loblaw Companies Ltd. (L.TO) reported a profit of $437 million in the 12-week period ending March 26, or $1.30 per diluted share, up from $313 million, or $1.36 per diluted share, during the same time last year. Total sales topped $12.3 billion, up from $11.9 million last year.


NEO FINANCIAL BECOMES CALGARY'S LATEST $1 BILLION TECH 'UNICORN'

Yahoo Finance - Yahoo (2022-05-05)

Neo Financial's aim is to build new user-friendly banking technology and products. The company says one million customers are already using its product line, which includes the Neo Credit Card, a cash-back credit card issued by ATB Financial and backed by the MasterCard network, as well as the Neo high-interest savings account provided by Concentra Bank.


INFLATION IN TURKEY SOARS TO EYE-POPPING NEAR 70% IN APRIL

Yahoo Finance - Yahoo (2022-05-05)

Turkey’s central bank has cut rates by 5 percentage points since September, to 14%, despite high inflation rates — before pausing them in January. The Turkish lira lost 44% of its value against the U.S. dollar last year.


HOME CAPITAL EARNINGS TAKE HIT, CEO POINTS TO MORTGAGE DEMAND HEADWINDS

FP - Stephanie Hughes (2022-05-05)

“We are starting off with good momentum in growing our mortgage book including record originations in our classic single-family mortgages,” Home Capital president and chief executive officer Yousry Bissada said in a press release. “Although our net interest margin fell this quarter due to increases in our cost of funds outpacing increases in mortgage rates, we expect to benefit over time from margin increases as spreads normalize.”
“We delivered this growth in a market that is starting to show signs of slowing after the rapid growth of prices and volumes last year,” Bissada said. “Reports from the Canadian Real Estate Association indicate that sales volumes for the first three months of the year have moderated from the record levels of 2021. We believe this is healthy for the long-term sustainability of the housing market.”


TORONTO HOME SALES PLUNGE AND PRICES SLIDE AS RISING BORROWING RATES BITE

FP - Stephanie Hughes (2022-05-05)

While the average home price of $1.254 million was still up 15 per cent from last year, sales were off 41 per cent from last April and down 27 per cent from the month prior, the Toronto Regional Real Estate Board said Wednesday.


DISCONNECTING RUSSIA'S BANKS: SBERBANK FACES SWIFT REMOVAL

Reuters - Kristin Ridley (2022-05-05)

The EU had previously spared Sberbank from what is seen as the harshest measure because it, along with Gazprombank, is one of the main channels for payments for Russian oil and gas, which EU countries have been buying despite the conflict in Ukraine.


BANK OF ENGLAND SET FOR 4TH STRAIGHT RATE HIKE TO FIGHT INFLATION

Reuters - William Schomberg (2022-05-05)

The Bank of England looks poised to raise interest rates on Thursday for the fourth time since December, the fastest increase in borrowing costs in a quarter of a century as it tries to quell the danger from the leap in inflation.


WALL STREET ISN’T READY FOR THE CRACKDOWN COMING ITS WAY

Bloomberg - Tom Schoenberg (2022-05-05)

The fallen billionaire investor was sitting in federal custody in Manhattan, less than 48 hours after his legal team had visited prosecutors to talk them out of criminal charges. The effort seemed to be going well until the feds scooped up Hwang at daybreak on April 27 to face 11 felony charges—and potentially, the rest of his life in prison. “In no event was an arrest necessary,” his attorneys said in a statement expressing frustration that morning, noting Hwang had been voluntarily answering the government’s questions for months.


ELON MUSK, CATHIE WOOD SAY PASSIVE FUNDS HAVE GONE TOO FAR

Bloomberg - Joanna Ossinger (2022-05-05)

Elon Musk and Cathie Wood criticized passive investing in a Twitter thread, weighing in on a long-running Wall Street debate about the growing power of index funds.


CENTRAL BANKERS ARE HANDCUFFED BY OLD NARRATIVES

Bloomberg - Clive Crook (2022-05-05)

In the space of a few short months, the prevailing narrative on U.S. inflation has veered from “It’s transitory” to “We have a problem.” This week, the Federal Reserve took another step toward acknowledging this, raising its policy rate by 50 basis points and leading investors to expect a faster pace of tightening from now on. That’s fine, you might say, the facts have changed – and to paraphrase John Maynard Keynes, when the facts change, you change your story. What’s interesting is that the story has changed more abruptly than the facts.


CANADA HAS NEVER SEEN REAL MORTGAGE RATES THIS LOW AND IT’S FUELING THE BUBBLE

Better Dwelling - Stephen Punwasi (2022-05-05)

There’s a lot of noise about rising mortgage costs, but interest is still amongst the lowest in history. A conventional 5-year fixed term mortgage was 3.77% in March, up 0.57 points from last summer’s record low. Mortgage costs are the highest since June 2020, back when dinosaurs roamed the earth. If you can only remember a few months ago, it’s easy to see how rates seem high.


BANK OF CANADA DEFENDS ITS CREDIBILITY AND INDEPENDENCE IN FACE OF SOARING INFLATION, CONSERVATIVE CRITICISM

G&M - Mark Rendell (2022-05-04)

The Bank of Canada has ramped up efforts to defend its credibility amid soaring inflation and pointed criticism from Conservative politicians who say it has lost its independence from the government.


TORONTO HOME SALES PLUNGE 27 PER CENT IN APRIL, HOME PRICES DIP

G&M - Rachelle Younglai (2022-05-04)

Toronto’s housing market slowed in April, with sales dropping 27 per cent and home prices declining as buyers took a pause amid the rise in borrowing costs.


SHOPIFY EARNINGS OUTLOOK SINKS AS ECOMMERCE WORRIES MOUNT

G&M - Temur Durrani (2022-05-04)

Analysts are ratcheting down expectations for Shopify Inc.’s first-quarter financial results, as growing concerns about e-commerce weigh on the Ottawa company’s shares amid a rout in global technology stocks.


AUSTRALIAN CENTRAL BANK HIKES INTEREST RATE FOR FIRST TIME IN 11 YEARS

G&M - Rod McGuirk (2022-05-04)

Australia’s central bank on Tuesday lifted its benchmark interest rate for the first time in more than 11 years. The cash rate rose from 0.1 per cent to 0.35 per cent in a move potentially damaging to a government that will seek re-election on May 21.


REAL ESTATE SECTOR GEARS UP TO BATTLE LIBERAL GOVERNMENT’S PROPOSAL TO BAN ‘BLIND BIDDING’ FOR HOUSES

G&M - Rachelle Younglai (2022-05-04)

The Canadian real estate industry is gearing up to fight Ottawa’s plan to ban a common home selling practice known as blind bidding.


THE SURPRISING RESILIENCY OF RUSSIA'S ECONOMY (AND WHY IT WON'T LAST)

CBC - Peter Armstrong (2022-05-04)

"The sky-high fossil fuel prices and continued imports into Europe have provided the Kremlin with a major windfall and undermined the effect of economic sanctions," said Lauri Myllyvirta, lead analyst with the Centre for Research on Energy and Clean Air.


EXCLUSIVE-U.S. "OPEN BANKING" RULE BOGGED DOWN BY PRIVACY CONCERNS

Yahoo Finance - Katanga Johnson (2022-05-04)

But the CFPB is grappling with how to handle consumer privacy and data protection issues created by the rule, the five sources said over the past month on condition of anonymity to discuss the nonpublic process.


THE FED IS ABOUT TO DO SOMETHING IT HAS NOT DONE IN TWO DECADES

Yahoo Finance - Brian Cheung (2022-05-04)

The Fed is about to do something it has not done in two decades: Morning Brief
Brian Cheung ·Reporter    


U.K. FINANCE WORKER PAY SPIKES 31% SINCE START OF COVID PANDEMIC

Yahoo Finance - Reed Landberg (2022-05-04)

The figures jar with a plea from Bank of England Governor Andrew Bailey for employees to restrain demands for higher pay. Policy makers are concerned the labor market could feed an inflationary spiral, further reducing the spending power of consumers at a time when prices are leaping at their strongest pace in 30 years.


SUPPLY IS 'THE BIGGEST ISSUE AFFECTING HOUSING AFFORDABILITY' IN CANADA, CMHC FINDS

FP - Barbara Shecter (2022-05-04)

“The biggest issue affecting housing affordability in Canada is that supply simply isn’t keeping pace with demand,” the CMHC declared in the report, which was released Tuesday afternoon.


CALGARY HOME PRICES JUMP AGAIN IN APRIL, DESPITE SLOWING SALES

FP - Stephanie Hughes (2022-05-04)

A total of 3,401 homes exchanged hands last month, marking a six per cent boost year-over-year and a record high for the month of April.


BITCOIN ADOPTION BY CENTRAL AFRICAN REPUBLIC BAFFLES CRYPTOVERSE

Reuters - Judicael Yongo, Tom Wilson and Rachel Savage (2022-05-04)

Yet Central African Republic has internet penetration rates of just 11%, equal to some 550,000 people online last year, the DataReportal website estimates. Meanwhile only around 14% of people have access to electricity and less than half have a mobile phone connection, the Economist Intelligence Unit says.


GREATER VANCOUVER REAL ESTATE SALES DROP 30%, ENTERS BALANCED MARKET

Better Dwelling - Kaitlin Last (2022-05-04)

Greater Vancouver real estate prices climbed higher — but at a much slower pace. The price of a benchmark home fell to $1,374,500 in April, rising 1.0% ($13,600) higher. This represents an 18.9% ($218,500) increase compared to last year. It was a big climb but, believe it or not, was slow compared to recent months.


TORONTO NEW HOME SALES CRATER, SINGLE-FAMILY PRICES DROP & CONDOS RISE

Better Dwelling - Daniel Wong (2022-05-04)

New home sales are down sharply across Greater Toronto. In March, just 4,115 new homes were sold, down 21% from last year. Broken down, single-family homes represented 838 of the sales, down 50% from a year before. Condo apartments fell to 3,277 units, down 7% from last year. This was a sudden and rapid slowdown, especially considering how the year started.


CANADIANS TRAIL AMERICANS IN DESIRE TO USE AND INVEST IN CRYPTOCURRENCY, POLL FINDS

Investment Executive - CP (2022-05-04)

Globally, 35% of internet users surveyed — but just 24% of Americans and 17% of Canadians — said they’re likely to invest in Bitcoin and alternatives as a short-term investment.


SOME NEW LANDLORDS ARE LOSING MONEY. WITH RATES RISING, TENANTS COULD SEE RENT HIKES

G&M - Erica Alini (2022-05-03)

As high as Toronto and Vancouver rents may seem to local tenants, landlords are often losing money on them.


RAPID RATE HIKES CRITICAL TO ‘BREAK’ RISING INFLATION EXPECTATIONS, SAYS FORMER BOC GOVERNOR DAVID DODGE

G&M - DAVID PARKINSON (2022-05-03)

David Dodge has been in the corridors of Canadian economic policy making and the battle against inflation for a half-century.


EDC LAUNCHES PROGRAM WITH BANK OF MONTREAL TO GUARANTEE LOANS TO COMPANIES IN CARBON INTENSIVE SECTORS

G&M - James Bradshaw (2022-05-03)

Export Development Canada has agreed to partly guarantee $1-billion of loans Bank of Montreal 

BMO-T -0.62%decrease    plans to make to companies in carbon-intensive industries in order to help them lower their emissions, reducing the risks of the bank’s foray into funding an urgent but uncertain energy transition.


WORLD SHARES MIXED, OIL FALLS AHEAD OF FED MEETING

Yahoo Finance - Staff (2022-05-03)

Australia’s central bank lifted its benchmark interest rate to 0.35% from 0.1%, the first such hike since 2010. The Fed is expected to announce a rate hike Wednesday as it and other central banks battle inflation that has been hovering at 40-year highs


CITI ADMITS A TRADER ERROR SPARKED A 'FLASH CRASH' THAT SENT SWEDISH STOCKS PLUNGING 8% AND EUROPEAN SHARES TUMBLING

Yahoo Finance - Harry Robertson (2022-05-03)

"On Monday, one of our traders made an error when inputting a transaction. Within minutes, we identified the error and corrected it," a Citi spokesperson said in an email Tuesday morning.


FINANCIAL SYSTEM CAN 'ABSORB' SHOCK OF HIGHER INTEREST RATES, CANADA'S BANKING REGULATOR SAYS

FP - Kevin Carmichael (2022-05-03)

“I think the system can absorb it,” Peter Routledge, who leads the Office of the Superintendent of Financial Institutions (OSFI), said in an interview.


CALGARY HOME PRICES JUMP AGAIN IN APRIL, DESPITE SLOWING SALES

FP - Stephanie Hughes (2022-05-03)

A total of 3,401 homes exchanged hands last month, marking a six per cent boost year-over-year and a record high for the month of April.


AUSTRALIAN RATE HIKE AN UNWELCOME TWIST FOR PM MORRISON'S RE-ELECTION BID

Reuters - Renju Jose (2022-05-03)

Morrison, trailing in polls ahead of a national election to be held on May 21, said Australians had been preparing for a hike in interest rates "for some time" but conceded the decision would be difficult for some.


THE FED WANTS TO COOL THE U.S. HOUSING MARKET. HERE'S WHAT THAT FEELS LIKE

Reuters - Ann Saphir (2022-05-03)

In mid-April, months into an increasingly frustrating house hunt, Harsh Grewal and his wife settled on a place in a San Francisco suburb and were prepping a bid, above the listed price so they'd have a chance of besting other offers in one of the nation's hottest housing markets.


PAYPAL HELPED SPUR EU ANTITRUST COMPLAINT AGAINST APPLE PAYMENTS

Bloomberg - Mark Gurman (2022-05-03)

PayPal Holdings Inc. helped spur a formal antitrust complaint against Apple Inc. and its iPhone payments system by raising concerns with the European Commission, according to people with knowledge of the matter.


THE HOT HOUSING MARKET MAKES THE FED’S INFLATION-FIGHTING JOB EVEN TOUGHER

Bloomberg - Jonnelle Marte (2022-05-03)

The Fed, which is raising interest rates to curb inflation, is relying on higher borrowing costs on homes, cars and other big-ticket items to put a damper on demand. Rising home prices boost construction and can lift consumer spending, by making homeowners feel wealthier.


TORONTO REAL ESTATE CONSTRUCTION GRINDS TO A HALT AS UNION BATTLES OVER INFLATION

Better Dwelling - Stephen Punwasi (2022-05-03)

LiUNA Local 183 is North America’s largest construction union and located in Toronto. It represents 15,000 workers across 30-or-so trades, including high-rise formation and framing. Not every construction site has these unionized workers, but it’s a good bet the large ones do.


ONTARIO REAL ESTATE PRICES HAVE SURGED UP TO 111% SINCE 2020

Better Dwelling - Kaitlin Last (2022-05-03)

Ontario’s top real estate markets were in cottage country, a couple hours north of Toronto. The highest increase was observed in North Bay (+111.1%), where prices have more than doubled since 2020. Three more markets managed triple digit growth: Woodstock-Ingersoll (+105.4%), Bancroft (+103.5%), and Brantford (+100.4%). Don’t take this the wrong way — we’re not saying it’s unusual because these are small towns, it would be unusual growth for anywhere on the planet. 


CDIC DEPOSIT PROTECTION EXPANDS TO INCLUDE RESPS AND RDSPS

Investment Executive - Staff (2022-05-03)

“With this expansion of coverage, nearly all personal deposit accounts at our members are fully protected by CDIC,” president and CEO Leah Anderson said in a statement.


PROSECUTORS, POLICE SEARCH DEUTSCHE BANK’S HEADQUARTERS IN CONNECTION WITH MONEY LAUNDERING PROBE

G&M - Tom Sims and Frank Siebelt (2022-05-02)

Prosecutors, federal police and other officials searched Deutsche Bank’s 

DB-N -3.52%decrease    headquarters in Frankfurt on Friday in a move Germany’s largest lender said was linked to suspicions of money laundering it had reported to the authorities.


WALMART CANADA IS IN DIRE NEED OF A SHAKEUP. MEET THE GUY WHO’S LEADING IT

G&M - Trevor Cole (2022-05-02)

Yeah, you know, “We’re running a great business, so why change it?” That is why our strategy is around performing and transforming. It’s great that we have a very healthy business, but start making the investments in building the capabilities to transform, to be future-proof. Investing for growth, bringing in future-proof talent, remodelling stores, building new distribution centres and fulfillment centres, investing in technology. How do we accelerate our flywheel? I think going from hunkering down to playing offence really changed our body language into omnichannel.


HOW LACK OF AFFORDABILITY COULD SCARE NEW IMMIGRANTS INTO MOVING AWAY

CBC - Nojoud Al Mallees (2022-05-02)

Rayo received his master in business administration from the University of New Brunswick in 2018 and got a job in auditing that paid $45,000 annually. Holding two degrees from the U.S. and Canada, Rayo says finding work was difficult and the compensation he was being offered was disappointing.


BERKSHIRE SHAREHOLDERS VOTE TO KEEP BUFFETT AS CHAIRMAN, REJECT CLIMATE DISCLOSURES

Yahoo Finance - CAROLINA MANDL (2022-05-02)

By approximately 3-to-1 margins, shareholders also rejected proposals to have the company disclose more about the climate-related risks, greenhouse gas emissions and diversity efforts in its dozens of businesses.


DAVID ROSENBERG: THE FED IS TIGHTENING AND THAT USUALLY MEANS RECESSION, NO MATTER WHAT THEY SAY

FP - David Rosenberg (2022-05-02)

Recent research from a number of sources also cast doubt on Powell’s statement. As such, rather than buying into the Fed’s fantasy, inventors should exercise caution and shift away exposure from cyclical sectors into more defensive ones.


WHO IS PAUL SINGER, THE MAN ONCE DUBBED 'THE WORLD'S MOST FEARED INVESTOR'?

FP - Barbara Shecter (2022-05-02)

Before targeting Calgary-based oil producer and refiner Suncor this week, billionaire Paul Singer tangled with world leaders to extract debt repayments, pushed to oust Jack Dorsey as CEO of Twitter and was dubbed “the world’s most feared investor” by Bloomberg for his aggressive and litigious tactics as an activist investor.


CHINA CONTAGION THREATENS TO DERAIL THE WORLD’S EMERGING MARKETS

Yahoo Finance - Marcus Wong (2022-05-02)

The result is the sharpest slide in emerging markets in two years, not unlike the meltdown in 2015 when China’s woes led to a rout in their bonds and currencies, besides wiping out $2 trillion from equity values. Since then, the country’s influence on the global economy has only grown: It’s now the largest buyer of commodities, meaning its slump may impact exporters of raw materials and their markets more than ever.


WHAT RAPIDLY RISING INFLATION TELLS US ABOUT THE ECONOMY

FP - Gabriel Friedman (2022-05-02)

This week on Down to Business, Derek Holt, vice president and head of capital markets economics at Scotiabank in Toronto, and Talan Iscan, a professor of economics at Dalhousie University in Halifax, discuss what rapidly rising inflation tells us about the economy.


FLOWS, NOT GROWTH FEARS, DRIVE EURO TO FIVE YEAR LOWS-BNP PARIBAS

Reuters - Saikat Chatterjee (2022-05-02)

Big speculative flows and not concerns about a worsening economic outlook explain the euro's slide to a five-year low below $1.05 this week, a study by BNP Paribas showed.


SWISS NATIONAL BANK OPPOSED TO HOLDING BITCOIN AS A RESERVE CURRENCY

Reuters - Reuters (2022-05-02)

"Buying bitcoin is not a problem for us, we can do that either directly or can buy investment products which are based on bitcoin," Jordan said. "We can arrange the technical and operative conditions relatively quickly, when we are convinced we must have bitcoin in our balance sheet.


END OF EASY MONEY BRINGS A $410 BILLION GLOBAL FINANCIAL SHOCK

Bloomberg - Enda Curran (2022-05-02)

The global shift away from easy money is poised to accelerate as a pandemic bond-buying blitz by central banks swings into reverse, threatening another shock to the world’s economies and financial markets.


EURO-AREA INFLATION HITS RECORD, RAISING PRESSURE ON ECB

Bloomberg - Jana Randow (2022-05-02)

Consumer prices were up 7.5% from a year earlier in April, in line with the median estimate in a Bloomberg survey. A gauge excluding volatile items such as food and energy jumped to 3.5%.


FILLING UP WITH DIESEL IN U.S. HAS NEVER BEEN MORE EXPENSIVE

Bloomberg - Chunzi Xu (2022-05-02)

Diesel prices are surging to the highest level on record as the global fuel-supply shortage hits American truckers, farmers and users in just about every sector of the U.S. economy.


THE YEN IS TANKING. AND THAT'S JUST FINE

Bloomberg - Gearoid Reidy (2022-05-02)

Bloomberg Opinion has been chronicling inflation's journey — from being too low for many policy makers’ comfort before Covid to being the new public enemy No. 1. In the U.S., inflation accelerated to 8.5% in March. It’s also on the rise in Japan, though hasn't quite reached those elevated levels. The country is contending with a weakened yen, which is both a byproduct of higher inflation and something that exacerbates the situation.


LAURENTIAN FINED FOR AML LAPSE

Investment Executive - James Langton (2022-05-02)

FINTRAC imposed an administrative monetary penalty of $486,750 on Laurentian Bank, after a compliance review in 2020 concluded that the bank violated AML rules by failing to submit suspicious transaction reports, “where there were reasonable grounds to suspect that transactions were related to a money laundering offence.”


EUROPEAN REGULATORS SEEK TO REIN IN FIRMS’ NUDGES

Investment Executive - James Langton (2022-05-02)

“Gamification often comes in the form of introducing competition elements into an everyday process and these elements may be designed in such way to encourage habits that are difficult to shake: by hooking and holding the clients using the app and nudging them to, for example, making more and riskier investment trades,” the paper said.


CANADIAN DB PENSIONS CLOSED Q1 IN THE RED

Investment Executive - Staff (2022-05-02)

“The market experienced growing economic and geopolitical uncertainties during the first quarter of 2022,” said Niki Zaphiratos, managing director, asset owners, RBC Investor & Treasury Services, in a release. “Russia’s invasion of Ukraine has amplified existing investor anxiety over growing inflationary pressures and the Covid crisis.”


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BANNER YEARS FOR INVESTMENT BANKS AT RISK AS PANDEMIC DEALMAKING COOLS SIGNIFICANTLY

G&M - Tim Kiladze (2022-07-07)

The banner years for equity financings and mergers and acquisitions driven by the pandemic are at risk of disappearing, with deal activity slowing significantly in the first quarter – particularly for Canadian share sales.

The value of Canadian equity financings tumbled 81 per cent in the first quarter of 2022 to $3.9-billion, according to Refinitiv, down from $20.9-billion during the same period last year. While the year-over-year comparison is a tough one, because early 2021 was when markets soared, the total value of share sales hasn’t been this low in more than a decade.

Central banks slashed interest rates to their lowest levels possible early in the pandemic to shore up the economy, sending stock prices soaring, and spurring share sales.

Much of the cooling stems from a recent dearth of technology financings. Last year, the sector accounted for roughly one-quarter of all share sales – and tech initial public offerings were particularly popular. So far this year, technology deals have been virtually non-existent because of a market rout in the sector. The tech-heavy Nasdaq Composite is down 12 per cent year to date.

Merger and acquisition (M&A) activity has also cooled in Canada, with US$66.6-billion worth of deals announced during the first quarter, including debt, according to Refinitiv, down 45 per cent from the same quarter last year.

The trend is playing out around the world, with the global value of M&A deals down 23 per cent, according to Refinitiv. However, the pace of mergers and acquisitions is still relatively healthy compared to prepandemic years.

Macroeconomic pressures are the leading factors behind the recent changes. “We are living with heightened volatility and uncertainty,” said Nitin Babbar, global co-head of equity capital markets at RBC Dominion Securities.

Inflation sparked the uncertainty last fall, which led to a growth-stock selloff that pummelled the tech sector. Those fears haven’t abated, and now geopolitical concerns hover over everything. Minutes from the latest meeting of the U.S. Federal Reserve were released on Wednesday, and they showed that Fed officials wanted to start hiking interest rates aggressively, but decided to go slow because of the economic ripple effects from Russia’s attack on Ukraine.

Despite the growing uncertainty, many of the share sales that launched in the first quarter of this year were successful. Bank of Montreal 

BMO-T -0.96%decrease  

 recently sold $2.7-billion worth of stock to help pay for its acquisition of Bank of the West, for one, and the deal was well-received by investors. “We haven’t seen issuers who really want to [raise money] and we have to say, ‘you can’t,’” RBC’s Mr. Babbar said. “It’s just a question of issuer need.”


JPMORGAN'S DIMON FACES SHAREHOLDER ADVISORY VOTE ON $52.6 MILLION RETENTION AWARD

Reuters - David Henry (2022-05-16)

Long-time JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon will find out on Tuesday how shareholders feel about a special $52.6 million stock option award he received to stay on for five more years, which is opposed by two key investor advisory firms.


IT'S A GOOD TIME TO THINK ABOUT STAGFLATION HAVENS

Bloomberg - John Authers (2022-05-16)

Risk assets are falling, and have ample reasons to fall. What to do about this? In the short term there are decent arguments that it’s time for a rally within the bear market. But how best to deploy assets for the longer term? 


CRYPTO’S FALL, IN THREE CHARTS

Bloomberg - Joshua Brustein (2022-05-16)

After months of decline, the bottom dropped out of the crypto market, sparking talk of a “crypto winter,” when many tokens lose most of their value for a sustained period. Investors who’d been hoping to get rich quick are now trying to figure out if they can cut their losses instead.