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

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.

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

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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

DIGITAL SECRET-KEEPER 1PASSWORD SMASHES VENTURE CAPITAL RECORD WITH US$620-MILLION DEAL, MAKING IT ONE OF CANADA’S MOST VALUABLE TECH COMPANIES

G&M - Sean Silcoff (2022-01-20)

Toronto’s 1Password became a leading password management service by spreading virally through word-of-mouth recommendations from consumers that used its app to store the keys to their increasingly digital lives. Now its success at cracking the corporate market has landed 1Password a record-setting investment.


NASDAQ CONFIRMS CORRECTION AS WALL STREET SELL-OFF DEEPENS; TSX LOSSES BLUNTED BY RALLY IN MATERIALS

G&M - Staff (2022-01-20)

Wall Street’s main indexes fell on Wednesday, with the tech-heavy Nasdaq confirming a correction, after a diverse set of corporate earnings and as investors continued to worry about higher U.S. Treasury yields and the Federal Reserve tightening monetary policy. The TSX also lost ground, although a big rally in the materials sector - and precious metals stocks in particular - limited losses.


WALL STREET BANKS EYE 'NEW NORMAL' FOR TRADING REVENUE AFTER STELLAR TWO YEARS

Reuters - Matt Scuffham (2022-01-20)

Wall Street banks are expecting trading revenue to settle at a "new normal" somewhere between pre-pandemic levels and the highs of the past two years, top executives and analysts say.


BANK OF AMERICA PROFIT BEATS ESTIMATES ON LOAN GROWTH, M&A BOOST

Reuters - Niket Nishant and Elizabeth Dilts Marshall (2022-01-20)

Loans grew during the quarter across every category except home equity, with average loans and leases, excluding those from the government's Paycheck Protection Program, up 3.4% from the prior quarter and 3.2% from a year ago, the bank said.


CHINA RELUCTANTLY GIVES PROPERTY MARKET A BREAK

Reuters - Pete Sweeney and Yawen Chen (2022-01-20)

China’s tough stance on deleveraging the real estate industry is softening, however reluctantly. The government will let property developers access much-needed funds from escrowed prepayments, building on surprise cuts to interest rates. It’s a partial, and imperfect, solution, but options are running out.


SCOTIA SEES BANK OF CANADA HIKING RATE TO 2% TO QUELL INFLATION

Bloomberg - Theophilos Argitis (2022-01-20)

The Toronto-based lender is now projecting the Bank of Canada will hike its overnight policy rate to 2% in 2022, from the current emergency level of 0.25%, according to a report published Wednesday, shortly after Statistics Canada said inflation hit its highest in three decades


CENTRAL BANKS FACE A MOMENT OF TRUTH ON CRYPTO

Bloomberg - Lionel Laurent (2022-01-20)

The head of the Bank for International Settlements, Agustin Carstens, recently set out a dark vision for our financial future, quoting Goethe’s “Faust” and claiming that the “soul” of money was at stake.


ECB HAS EVERY REASON NOT TO ACT AS QUICKLY AS FED, LAGARDE SAYS

Bloomberg - Alexander Weber and William Horobin (2022-01-20)

“We’re all in very different situations,” Lagarde told the France Inter radio station Thursday in an interview. Inflation is “clearly weaker” in the euro area, while the region’s economic recovery is also not as advanced as in the U.S., she said. 


EVERGRANDE OFFSHORE BONDHOLDERS CRITICIZE ‘OPAQUE’ RESTRUCTURING

Bloomberg - Alice Huang (2022-01-20)

Signs of conflict between international bondholders and China Evergrande Group are mounting in what will likely be one of the nation’s largest and most complex debt restructurings.


CANADIAN REAL ESTATE PRICES WILL HAVE A HARD TIME WITH HIGHER MORTGAGE RATES: BMO

Better Dwelling - Daniel Wong (2022-01-20)

BMO estimates if mortgage rates follow the above estimate, home prices will be priced on significantly higher rates. The market will be priced at a weighted-average of 2.7% by the end of this year, which our ballpark estimate is a 10% drop in credit issuance. “Incomes will grow too but, all else equal, it will be hard for prices to keep powering through that given where valuations already are,” warns the bank.


CANADIAN MORTGAGE DEBT HAS HIT A NEW ALL-TIME HIGH FOR 261 CONSECUTIVE MONTHS

Better Dwelling - Daniel Wong (2022-01-20)

Annual growth isn’t providing a clear trend showing where it’s heading next. November’s rate is higher than the month before, showing acceleration. It follows two months of deceleration prior though. That makes it unclear if it’s just taking a breather from a downtrend, since growth doesn’t walk a straight line. Similarly, the declines in the previous month have only persisted for two months, meaning that may have been a break from the uptrend. This data shows neither a clear up or down trend at this point. 


CRA PROVIDES DETAILS ON DEDUCTING WORK-FROM-HOME EXPENSES FOR 2021, 2022

Investment Executive - Rudy Mezzatta (2022-01-20)

The CRA has provided updated guidance on how people who worked from home last year due to the pandemic can claim up to $500 of home office expenses under its simplified flat-rate method for 2021 and 2022.


CSA SHINES A LIGHT ON GREENWASHING

Investment Executive - James Langton (2022-01-20)

The regulators reported that targeted reviews of investment funds’ continuous disclosure in this area revealed a number of shortcomings. Some funds had potentially misleading disclosure, the CSA found, while others featured inadequate reporting to investors on investment strategies, proxy voting practices and ESG performance.


COURT APPROVES $125-MILLION SETTLEMENT IN “DAVID VS. GOLIATH” CASE

Investment Executive - James Langton (2022-01-20)

The plaintiffs in the case alleged that CIBC failed to properly disclose its exposure to the U.S. subprime mortgage market through residential mortgage-backed securities in 2007, at the height of the global financial crisis, and that the bank’s share price dropped 20% when its exposure was ultimately disclosed.


ALDI APPLIES FACIAL-AGE ESTIMATION TECHNOLOGY FOR CHECKOUT-FREE ALCOHOL SALES

Finextra - Finextra (2022-01-20)

Customers who download the Aldi Shop&Go app can simply pick up their items and walk out when they have completed their shop. Once a customer leaves the store they will then be automatically charged for their shopping via their selected payment method and a receipt will appear in the app.


AMAZON WANTS TO OFFER AUTO INSURANCE IN QUEBEC

MPNRC - Staff (2022-01-20)

Amazon wants to offer car insurance to its “delivery service partners”. These are the independent companies providing delivery from warehouses to consumers under a program launched by Amazon in 2018 that offers technology and logistical support to delivery companies.


UKRAINE’S PRESIDENT REBUKES BIDEN FOR SUGGESTION OF ‘MINOR’ RUSSIAN ATTACK

FT - Guy Chazan, Roman Olearchyk, James Politi (2022-01-20)

Ukraine’s president Volodymyr Zelensky has hit back at Joe Biden’s suggestion that a “minor incursion” by Russian forces into Ukraine might not prompt the severe response the west has threatened — a remark that has alarmed allies of the US.


FED OPENS DEBATE OVER POSSIBLE DIGITAL CURRENCY

FT - James Politi and Colby Smith (2022-01-20)

After months of anticipation, the Fed on Thursday released a lengthy discussion paper that will serve as the basis of what is expected to be a heated and consequential debate at the heart of the central bank in the coming months — though it made clear it did not “favour any policy outcome” at this point.


TOP WALL STREET BANKS PAID OUT $142BN IN PAY AND BENEFITS LAST YEAR

FT - Joshua Franklin and Imani Moise (2022-01-20)

Wall Street’s leading banks increased pay by nearly 15 per cent last year as they fought a war for talent that is expected to drag on as long as dealmaking remains buoyant.


CENTRAL BANKS MUST REDUCE THEIR BALANCE SHEETS MORE AGGRESSIVELY

FT - Kristin Forbes (2022-01-20)

Central banks do not hesitate to expand their balance sheets when a crisis hits.


LARGE BANK MARKET SHARE FALLS AS DIGITAL CHALLENGERS STEP UP

Finextra - Finextra (2022-01-20)

The share of personal and micro-business current accounts held by digital challengers rose between 2020 and 2021, while the largest banks saw their share fall. This trend occurred even as large lenders lent proportionately more to microbusinesses during the pandemic.


JPMORGAN CHASE TO SPEND $12BN ON TECH THIS YEAR

Finextra - Finextra (2022-01-20)

Reporting fourth quarter results, JPMorgan set out technology spending plans that will see it use "microservices architecture, cloud and modern engineering practices to accelerate software


WHY IS IT CANADA'S 'DUTY' TO DESTROY ITS ECONOMY AND CONFEDERATION IN THE PURSUIT OF NET ZERO?

National Post - Rex Murphy (2022-01-20)

A subsidiary question is: Does the government of a Confederation have the right, the legislative competence to declare the central industry of one of the provinces within that Confederation outmoded? And on that premise make it a national policy to destroy the economic well-being of that province?


THE STEALTH PAY CUT: WAGES AREN’T KEEPING UP WITH INFLATION

G&M - Matt Lundy (2022-01-20)

As Canadian inflation hits a three-decade high, the average worker is facing an unwelcome reality: Their pay isn’t increasing at nearly the same pace.


MORTGAGE RUNDOWN: WARNING SIGNS THAT YOU PICKED THE WRONG BROKER. PLUS, BOTH FIXED AND VARIABLE RATES ARE ON THE RISE

G&M - Robert Mclister (2022-01-20)

Most consumers aren’t mortgage experts, they rely on professional guidance. The problem is, not all mortgage brokers are created equal.


BITCOIN ‘NEOBANK’ SHAKEPAY RAISES $44-MILLION FROM INVESTORS TO SPUR GROWTH

G&M - Jenn Kerr (2022-01-20)

Shakepay, a fintech company with ambitions of replacing Canadians’ savings accounts with bitcoin, has raised $44-million to expand its team and build new financial products.


HOW ONE OF CANADA’S ONLY FEMALE CHIEF ECONOMISTS IS CLEARING THE PATH FOR WOMEN IN BANKING

G&M - Jessica Patterson (2022-01-20)

Beata Caranci never planned on being a role model. When her position as chief economist at TD Bank Group was announced, she avoided questions about being one of the few female chief economists to lead a Canadian bank.


PELOTON TO PAUSE PRODUCTION AS DEMAND FOR BIKES, TREADMILLS WANES

G&M - Reuters (2022-01-20)

Shares of exercise-bike maker Peloton Interactive Inc. 

PTON-Q -23.93%decrease    slumped as much as 27 per cent on Thursday following a report that it was temporarily pausing production of its connected fitness products owing to slowing demand and to control costs.


MAKING BANK AND RIDING THE BUS: WHAT CANADIAN PRIME MINISTERS GET UP TO AFTER RETIREMENT

National Post - Tristin Hopper (2022-01-20)

In 2017, Joe Clark made an appearance in Atlanta alongside former U.S. President Jimmy Carter. It was a fitting meeting, as both men were cursed to spend the majority of their lives recovering from a brief and ultimately unsuccessful flirtation with absolute power. It’s now been 43 years since Clark’s nine-month stay in government — easily granting Clark Canadian history’s longest tenure as an ex-prime minister.


BIG BANKS POISED TO BENEFIT FROM RISING INTEREST RATES AFTER EMERGING UNSCATHED FROM PANDEMIC

FP - Stephanie Huges (2022-01-20)

“Even if the earnings impact is not immediate, we anticipate that, at a minimum, valuations will benefit when the rate hikes start,” the report read, adding that the analysts upgraded their price targets for the banks.


CANADA'S ECONOMIC GROWTH IS OPENING DOORS FOR FINANCIAL ANALYSTS

FP - StackCommerce (2022-01-20)

Pursuing a career in finance is a smart way to secure a comfortable future, especially in times when people are earning money in new ways, and seeking help from a wider variety of resources. As 2022 picks up steam, those interested in working in finance can rest assured that this is as good a time to start pursuing your career goals as any.
Having closed out 2021 with our economy growing at a steady and healthy pace , Canadians can expect to see a respectable amount of income in the coming year. What should they do with that income? That’s where financial analysts come in. Not only can they help steer people in the right directions in terms of saving for retirement, but they can also keep them up to date on the newest investments and trends.


GLOOMY NETFLIX FORECAST ERASES MUCH OF STOCK'S PANDEMIC GAINS

Reuters - Lisa Richwine (2022-01-20)

Netflix tempered its growth expectations, citing the late arrival of anticipated content, such as the second season of "Bridgerton" and the Ryan Reynolds time-travel movie "The Adam Project."


BIG U.S. BANKS SAY SPENDING PATTERNS SHOW CONSUMERS ARE IN GOOD SHAPE

Reuters - Elizabeth Dilts Marshall (2022-01-20)

Top executives at the biggest U.S. banks have been optimistic about the nation's economic outlook this earnings season, pointing to healthy consumers who have cash in the bank, are again eager to spend and also to borrow.


BANKS IN BRITAIN ASK STAFF TO RETURN TO OFFICES

Reuters - Lawrence White and Iain Withers (2022-01-20)

Goldman Sachs (GS.N) also plans to resume office working in accordance with the changed guidelines, a bank spokesperson said, while HSBC (HSBA.L) said staff would be welcome back in its offices from Thursday as part of a hybrid approach.


UK CONSUMERS TAKE FRIGHT AT RISING INFLATION AND RATES

Reuters - Reuters (2022-01-20)

People in Britain turned more pessimistic this month in the face of fast-rising inflation and the prospect of more interest rate hikes by the Bank of England, a survey showed on Friday.


BITCOIN TUMBLES BELOW $40,000 TO LOWEST LEVEL IN FIVE MONTHS

Bloomberg - Joanna Ossinger (2022-01-20)

Cryptocurrencies sank Friday, taking Bitcoin to the lowest level in more than five months as risk aversion again swept across global markets.


CANADA SAW THE MOST HOMES DELIVERED SINCE THE 1970S, POSSIBLY OUTPACING HOUSEHOLDS

Better Dwelling - Daniel Wong (2022-01-20)

Canadian housing starts fell recently, but they’re still much higher than they used to be. The seasonally adjusted annual rate (SAAR) of starts hit 261,000 homes in December. It was down from the SAAR of 268,000 units a month before. Even with that drop, this is much higher than pre-pandemic data.


FEDERAL RESERVE STUDY ON DIGITAL CURRENCY LEANS TO ROLE FOR BANKS

Investment Executive - Christopher Rugaber (2022-01-20)

The Federal Reserve on Thursday released a highly anticipated report on central bank digital currencies that suggested it is leaning toward having banks and other financial firms, rather than the Fed itself, manage digital accounts for customers.


MACQUARIE HIRES RBC VETERAN TO HELP LEAD METALS AND MINING GROUP

G&M - Jaren Kerr (2022-01-19)

A veteran mining banker is departing RBC Capital Markets to join the senior ranks at Macquarie Capital, an Australian investment bank.


SCOTIABANK INVESTORS SEE CITI’S MEXICAN UNIT AS GOOD FIT, CEO DOWNPLAYS INTEREST

G&M - Nichola Saminather (2022-01-19)

Bank of Nova Scotia 

BNS-T -1.05%decrease    (Scotiabank) shareholders are urging Canada’s No. 3 lender to seriously examine the Mexican consumer banking unit being sold by Citigroup  C-N -2.44%decrease   , arguing it would benefit from scaling up in the fast-growing Latin American country.


HOUSING STARTS SLOW IN CANADA AMID RECORD SHORTAGE OF HOMES FOR SALE

FP - Bianca Bharti (2022-01-19)

Housing starts clocked in at 236,106 on an annualized basis, a 22 per cent drop from November, the Canada Mortgage and Housing Corporation reported Tuesday. The agency also revised November’s data up from 301,279 to 303,813 units annualized.


NEW ZEALAND CHEERS CANADA'S LOSS IN DAIRY DISPUTE AND CALLS FOR 'SIGNIFICANT REFORM'

FP - Jake Edmiston (2022-01-19)

The public criticisms are the first in what trade lawyers expect could become an international pile-on following Canada’s loss to the United States this month in a long-running dairy dispute. Canada’s approach to dairy imports has long been a sore spot for trading partners, and the success of the U.S. in challenging that approach could embolden copycat actions under trade agreements Canada signed with the European Union and a group of mostly Asian countries that includes New Zealand, a major dairy exporter.


UK INFLATION HITS NEAR 30-YEAR HIGH, PRESSURING BOE AND HOUSEHOLDS

Reuters - DAVID MILLIKEN AND ANDY BRUCE (2022-01-19)

Inflation in Britain rose faster than expected to a near 30-year high in December, intensifying a squeeze on living standards and putting pressure on the Bank of England to raise interest rates again.


BIG U.S. BANKS SEE HIGHER EXPENSES FROM WORKERS' RISING WAGES

Reuters - Elizabeth Dilts Marshall (2022-01-19)

Big U.S. banks will spend more on salaries and benefits this year, as inflationary pressures, pandemic risks and the tight labor market force them to raise wages to get and keep workers.


UK REGULATOR FINES MASTERCARD, OTHERS FOR PREPAID CARDS CARTEL

Reuters - Reuters (2022-01-19)

Britain's payments regulator on Tuesday fined five payments companies including Mastercard a total of 33 million pounds ($45.01 million) for cartel behaviour involving prepaid cards issued to vulnerable people on welfare benefits.


EU GIVES ITSELF THREE MORE YEARS TO END EURO CLEARING RELIANCE ON LONDON

Reuters - Huw Jones (2022-01-19)

The European Union will extend permission for banks in the bloc to continue using clearing houses in London for a further three years from June while efforts to end "over-reliance" on Britain are stepped up, its financial services chief said on Tuesday.


A SHORTAGE OF ESG SKILLS IS HURTING CANADA’S FINANCIAL FIRMS

Bloomberg - Layan Odeh (2022-01-19)

Canada’s financial sector is facing a talent shortage in sustainable finance as demand for people who can evaluate ESG-related risks and opportunities far exceeds the supply, according to a new study. 


WALL STREET TRADERS MUSCLE INTO THE MIDDLE OF CRYPTO

Bloomberg - Nick Baker (2022-01-19)

When Christoffel and Jan Raphoen invented market-making in Amsterdam around the 1620s, their job was small in scope: Buy shares of Dutch East India Co., the world’s first publicly traded company, from people who wanted to sell, and sell to those who wanted to buy. The brothers were “the missing link,” according to historian and economist Lodewijk Petram, connecting buyers and sellers “who happened to be not at the same place at the same time.” Four centuries later, the role of market makers hasn’t really changed. Whenever there’s a financial asset to swap, they find a way to stand in the middle and rake a little money off the top in exchange for providing traders with the liquidity they need.


OVER 1 IN 5 CANADIAN DOLLARS CREATED DIDN’T EXIST TWO YEARS AGO

Better Dwelling - Stephen Punwasi (2022-01-19)

Canada’s central bank has been going Brrr, and it’s not because of the frigid winters in Ottawa. Bank of Canada (BoC) data shows that the money supply is still expanding rapidly in October. The M2++ money supply hit peak annual growth last year, reaching the highest level since the 1980s. The latest numbers show over 1 in 5 Canadian dollars today, didn’t exist prior to 2020. Traditionally the expansion of the money supply precedes inflation. That explains a lot.


MOST CANADIAN BUSINESSES THINK THE BOC LOST CONTROL, BMO SEES WAGE-PRICE SPIRAL

Better Dwelling - Daniel Wong (2022-01-19)

Canada’s central bank is quickly losing credibility, according to its survey. The Bank of Canada (BoC) Business Outlook Survey (BOS) for Q4 2021 shows businesses expect high inflation for years. Elevated expectations show they don’t see the BoC in control of its inflation mandate. As a result, most businesses are preparing to raise wages higher to face the increased cost of living. This would cement high inflation, and is the beginning of a wage-price spiral, according to a Big Six bank. The bank now expects earlier rate hikes, as the BoC battles inflation and a loss in confidence.


STUDY FINDS ‘GAMIFIED’ APPS PUSH DIY TRADERS TO MAKE RISKIER INVESTMENTS

Investment Executive - Leah Golob (2022-01-19)

So Zoican, along with fellow researchers Philipp Chapkovski and Mariana Khapko, conducted a study comparing how investors behaved on gamified apps, which feature game design elements, versus standard trading apps.


ROYCE MENDES JOINS DESJARDINS

Investment Executive - Staff (2022-01-19)

“We’ll be gradually growing the Toronto team to cover regional analysis and fiscal policy, further strengthening Desjardins’s economic expertise,” Jean said in a release. “Royce Mendes’s solid macro experience and his excellent communication and analytical skills make him the ideal person for this position.”


INK PREVIEW JANUARY 19 2022: VERSABANK BELIEVERS

Youtube - Video (2022-01-19)

Investors have been shunning growth stocks, and that may be providing VersaBank (VB) stock with some headwinds. But are investors overlooking some potential positive catalysts at the Canadian online bank pioneer?


CANADIAN HOME PRICES JUMPED BY RECORD 26.6 PER CENT IN 2021

G&M - Rachelle Younglai (2022-01-18)

Canada’s housing market ended the second year of the pandemic with record highs in price growth and home values, suggesting the country’s affordable-housing problem now extends beyond major metropolitan areas and into smaller cities.


TD BANK ADDS SOME MUSCLE TO ZERO-COMMISSION STOCK TRADING

G&M - Rob Carrick (2022-01-18)

Investors have a new but familiar name to consider if they want to trade stocks and exchange-traded funds without the usual commission costs.

Toronto-Dominion Bank 

TD-T +1.65%increase    on Monday introduced a new mobile app called TD Easy Trade that includes 50 free stock trades per calendar year. After that, clients pay $9.99 a trade, the usual cost at TD’s market-dominating online brokerage, TD Direct Investing.


BOJ RAISES INFLATION FORECASTS BUT RULES OUT POLICY TIGHTENING

Reuters - LEIKA KIHARA AND TETSUSHI KAJIMOTO (2022-01-18)

The Bank of Japan raised its inflation forecasts on Tuesday but said it was in no rush to change its ultra-loose monetary policy, as rising prices fan speculation it may soon signal a shift in its decade-old stimulus experiment.


ECONOMISTS SAY BANK OF CANADA TO BEGIN HIKING RATES NEXT WEEK

Bloomberg - Erik Hertzberg (2022-01-18)

Economists at TD Securities and Laurentian Bank said Monday the Bank of Canada will start a hiking cycle at its policy decision on Jan. 26. Bank of Montreal brought forward its call on the first increase to March from April, while Bank of Nova Scotia said the central bank “cannot afford” to wait any longer. 


CANADIAN INVESTORS SHATTER RECORDS BY PUTTING $115 BILLION IN FOREIGN SECURITIES

Bloomberg - Geoffrey Morgan (2022-01-18)

Net purchases of overseas securities by locals soared to C$144.4 billion ($115.4 billion) in the first 11 months of 2021 -- shattering a previous record of C$73.3 billion set in 2006, the bank said, citing Statistics Canada. Canadians spent a record C$81.8 billion on U.S. securities.


BOND YIELDS HIT TWO-YEAR HIGH AS STOCK FUTURES FALL

WSJ - Caitlin Ostroff (2022-01-18)

U.S. stock futures fell and bond yields hit two-year highs, intensifying investor fears that rising interest rates will set back the large technology stocks that have come to dominate markets.


CITIGROUP EXITS MORE ASIAN CONSUMER-BANKING OPERATIONS WITH $3.7 BILLION DEAL

WSJ - Dave Sebastian and Jing Yang (2022-01-18)

Citigroup Inc. agreed to sell its consumer-banking franchises in Indonesia, Malaysia, Thailand and Vietnam to United Overseas Bank Ltd. , advancing its strategy to exit most of its retail operations in Asia and free up resources to deploy in wealth management and in serving corporate customers.


AMAZON BACKS OFF THREAT TO BAN U.K.-ISSUED VISA CREDIT CARDS

WSJ - Julie Steinberg (2022-01-18)

Amazon.com Inc. said customers can continue to make purchases with Visa Inc. U.K. credit cards, stepping back from a threat to block such transactions because of the card network’s high fees.


BANK OF CANADA POLICY IS “TOO LOOSE,” RATE HIKES WILL REDUCE REAL ESTATE FROTH: BMO

Better Dwelling - Daniel Wong (2022-01-18)

Canada’s central bank has been tight-lipped about its next moves. The Bank of Canada last told the public that April would be the earliest they’ll be raising rates. That was back when they said inflation was transitory though. Since then, the US has dismissed the transitory narrative and Canada’s central bank has been quiet.


CANADIAN REAL ESTATE PRICES JUMP ANOTHER $17,000 AND GROWTH IS ACCELERATING

Better Dwelling - Kaitlin Last (2022-01-18)

Canadian home prices are rising at one of the fastest rates ever. The composite benchmark (a.k.a. a typical home) reached $798,200 in December, up 2.1% ($16,700) from the previous month. Compared to last year, prices are now 26.6% ($167,500) higher. This is an astronomical amount of growth, there’s no other way to put it.  


US TREASURIES SELL OFF AS MARKETS PRICE IN FOUR RATE RISES THIS YEAR

FT - Tommy Stubbington and Naomi Rovnick (2022-01-18)

A global bond sell-off reignited on Tuesday as investors cranked up their bets on monetary tightening from the Federal Reserve, with markets for the first time pricing in four interest rate increases from the US central bank this year.


BLACKROCK’S FINK REJECTS ACCUSATIONS OF BEING ‘WOKE’

FT - Harriet Agnew and Robin Wigglesworth (2022-01-18)

Investors that focus on the interests of wider society rather than pure profits are not “woke”, BlackRock chief executive Larry Fink has said after stinging attacks from US conservatives.


DOCUMENTS GIVE GLIMPSE OF FINANCE DEPARTMENT'S GRIM OUTLOOK, WARNINGS ON INFLATION

Toronto Sun - Jordan Press (2022-01-18)

While the majority of pressures at the time were the result of comparing prices to lows seen one year earlier during the first wave of the COVID-19 pandemic, the briefing note says inflation readings could go up or there were “plausible upside risks to the inflation outlook over the medium-term.”


'WE ARE IN SERIOUS TROUBLE': MPS DEBATE CANADA'S HOUSING CRISIS

Youtube - Video (2022-01-18)

MPs speak after the first meeting of the Standing Committee on Finance to discuss housing affordability.


WIDOW OF QUADRIGA CRYPTO FOUNDER GERALD COTTEN SAYS SHE HAD NO IDEA ABOUT THE $215-MILLION SCAM

G&M - JOE CASTALDO AND ALEXANDRA POSADZKI (2022-01-17)

If there is one thing Jennifer Robertson wants to make clear, it’s this: She had no idea about the massive fraud her deceased husband, Gerald Cotten, pulled off.


FINANCIAL SECTOR FACES CLIMATE TRANSITION RISK, SAYS BOC AND BANKING REGULATOR

G&M - MARK RENDELL AND JEFFREY JONES (2022-01-17)

Canada’s long-term economic growth and the stability of its financial system could be put at risk if the country delays implementing policies to deal with the transition to a low-carbon world, the central bank and the banking regulator say in a report analyzing a range of possible climate scenarios.

The Bank of Canada and the Office of the Superintendent of Financial Institutions examined the balance sheets of Royal Bank of Canada 

RY-T +1.30%increase   , Toronto Dominion Bank  TD-T +0.72%increase    and four large insurance companies to see how the institutions would be impacted by various policies aimed at achieving net-zero emissions.


BANKS BEING PUT ON NOTICE REGARDING CLIMATE CHANGE POLICIES SIGNALS CHANGE IS IN THE AIR

FP - Kevin Carmichael (2022-01-17)

One reason to think the dithering over climate change is about to stop is that the federal banking regulator has put the institutions it oversees on notice to prove they can be trusted to adequately adjust for the financial risks posed by climate change. If they don’t, the Office of the Superintendent of Financial Institutions will do it for them by requiring them to keep more capital in their rainy day funds.


CREDIT SUISSE CHAIRMAN HORTA-OSORIO RESIGNS OVER COVID-19 BREACHES

Reuters - Anshuman Daga and Oliver Hirt (2022-01-17)

Horta-Osorio's exit comes less than a year after he was hired to help the bank deal with the implosion of collapsed investment firm Archegos and the insolvency of British supply chain finance company Greenshill Capital, even as it was still reeling from the 2020 exit of CEO Tidjane Thiam over a spying scandal.


JPMORGAN SHARES FALL AS MIXED OUTLOOK SOURS PROFIT BEAT

Reuters - Anirban Sen and Matt Scuffham (2022-01-17)

A slowdown in capital markets activity, the cost of investing in the business, including new technology and branch openings, and rising expenses due in part to higher inflation and labor costs, were some of the factors the bank cited as headwinds in the coming year.


STARTUPS FROM CHIME TO ROBINHOOD RACE TO BUILD A MONEY SUPER APP

Bloomberg - Julie Chariell and Mark Glassman (2022-01-17)

Space on your phone’s home screen may be the most coveted virtual real estate on Earth, especially for companies that want a piece of your financial life. One way to claim it is to build a single app that handles most of your everyday transactions, including shopping, saving, and sending money. Below is a look at services that selected apps are offering, plan to offer, or are said to be exploring.


AS FINTECH EATS INTO PROFITS, BIG BANKS FIGHT BACK IN WASHINGTON

Bloomberg - Hannah Levitt (2022-01-17)

Deep in Jamie Dimon’s 66-page letter to JPMorgan Chase & Co. shareholders last year lies a chart: 11 ways being a bank is costlier than being a fintech, from deposit insurance to higher capital and liquidity requirements. The longtime chief executive officer tallied tens of billions of dollars that he says such rules cost the bank over the past decade.


BIDEN PROPOSES THREE NEW U.S. FED GOVERNORS

Investment Executive - Christopher Rugaber (2022-01-17)

United States President Joe Biden on Friday announced the nominations of three people for the Federal Reserve’s Board of Governors, including Sarah Bloom Raskin, a former Fed and Treasury official, for the top regulatory slot and Lisa Cook, who would be the first Black woman to serve on the Fed’s board.


FRENCH BANK NATIXIS SA SELLS STAKE IN FIERA CAPITAL FOR $105-MILLION

G&M - Nicolas Van Praet (2022-01-14)

French bank Natixis SA is selling its stake in Canadian asset management firm Fiera Capital Corp., 

FSZ-T -4.57%decrease    cutting ownership ties despite what the two companies called “a long-term strategic partnership” forged between them only two years ago.


TWO CANADIAN BANKS AMONG U.S.-LISTED FINANCIALS SHOWING BULLISH PRICE MOMENTUM

G&M - Gary Christie (2022-01-14)

The Financial Select Sector SPDR Fund (XLF) has started the year with a gain of more than 6 per cent, making it the second-best performing sector of 2022 so far, second only to energy. The S&P 500 remains negative in the same period, down almost 1 per cent year-to-date, as inflation concerns put pressure on U.S. growth stocks, to the benefit of value stocks and financials, both of which tend to outperform in an inflationary environment.


THE POLITICAL POLARIZATION OF CRYPTO IS UNDERWAY AND IT COULD HAVE HUGE CONSEQUENCES

FP - Ethan Lou (2022-01-14)

In December, the Conservative parliamentarian Michelle Rempel Garner asked the crypto community what the government could do to “improve the space.” Her colleague Pierre Poilievre and the People’s Party’s leader Maxime Bernier have praised bitcoin. So has Kevin O’Leary, who once ran for the Conservative leadership and is now backing all sorts of crypto ventures. Alberta’s Conservative Premier Jason Kenney has also talked up crypto’s prospects.


LIFE INSURERS ADAPT PANDEMIC RISK MODELS AFTER CLAIMS JUMP

Reuters - Carolyn Cohn and Noor Zainab Hussain (2022-01-14)

A coronavirus pandemic which lasts five years, another pandemic in a decade, and ever more transmissible variants are among the scenarios life insurers are predicting after COVID-19 claims jumped more than expected in 2021.


MEXICAN PRESIDENT URGES INVESTORS TO 'MEXICANIZE' CITI ASSET SALE

Reuters - Reuters (2022-01-14)

Mexican President Andres Manuel Lopez Obrador on Thursday urged domestic investors to snap up the consumer banking arm of Citigroup (C.N) in his country after it went on sale this week.


ZARA BILLIONAIRE ORTEGA TO BUY TORONTO’S ROYAL BANK PLAZA

Bloomberg - Ari Alstedter (2022-01-14)

Amancio Ortega, the billionaire behind the Zara clothing chain, has agreed to buy Toronto’s Royal Bank Plaza skyscraper from two Canadian pension funds for about C$1.2 billion ($961 million). 


BIDEN PICKS FED BANK REGULATOR, ADDS FIRST BLACK WOMAN TO BOARD

Bloomberg - Jennifer Jacobs and Jennifer Epstein (2022-01-14)

President Joe Biden plans to nominate Sarah Bloom Raskin to be the Federal Reserve’s top banking regulator and economists Lisa Cook and Philip Jefferson to be governors, people familiar with the decision said Thursday, completing his overhaul of leadership at the U.S. central bank.


TRADERS FACE RISKS WITH BETS BANK OF CANADA WILL OUTDO FED ON HIKES

Bloomberg - Payne Lubbers and Edward Bolingbroke (2022-01-14)

Traders have boosted expectations for the pace of central bank rate hikes in Canada even more than in the U.S., provoking questions about whether the market might have gone too far, too fast.


WHY CENTRAL BANKS ARE KEY TO GLOBAL ECONOMIES IN 2022

Bloomberg - Video (2022-01-14)

As the coronavirus pandemic rages on for a third year, Bloomberg’s Stephanie Flanders explains on “Quicktake Stock” why Covid-19 will take a back seat to central banks as a driver for global economies this year.


FINTRAC FINES CREDIT UNION

Investment Executive - James Langton (2022-01-14)

Specifically, FINTRAC said the firm failed to submit suspicious transaction reports and to take “special measures” to mitigate its high risks.


FEDERATION OF MUTUAL FUND DEALERS ANNOUNCES 2022 BOARD

Investment Executive - Staff (2022-01-14)

Marie-Joseé Audet, Desjardins Financial Security, Bill Charles, Global Maxfin Investments, Inc., Maria Flores, Carte Wealth Management Inc., Robert Smuk, Agora Dealer Services Corp.


USING SCENARIO ANALYSIS TO ASSESS CLIMATE TRANSITION RISK

OSFI - OSFI (2022-01-14)

The Bank of Canada and the Office of the Superintendent of Financial Institutions (OSFI) completed their climate scenario analysis pilot in collaboration with six Canadian federally regulated financial institutions. 


PROPOSED TAX ON $1M HOMES APPEARS A NON-STARTER

BIV - Frank O'brien (2022-01-13)

Such a tax would impact virtually every home owner in Metro Vancouver, Victoria and Greater Toronto, where the average composite home price is currently near or in excess of $1 million.


SCORES OF UNVACCINATED WORKERS ARE FILING WRONGFUL DISMISSAL CLAIMS AGAINST EMPLOYERS, LAWYERS SAY

G&M - Vanmala Subramaniam (2022-01-13)

Employers across the country have begun firing employees who are not fully vaccinated against COVID-19, according to lawyers who say they are inundated with vaccine-related cases and claims of wrongful dismissal.


TWO CANADIAN BANKS JOIN WITH U.S. BANKS ON MANAGING CLIMATE CHANGE RISKS

G&M - James Bradshaw (2022-01-13)

Two major Canadian banks are part of a new consortium of large financial institutions aiming to create common standards for managing risks from climate change, in tandem with the U.S.-based Risk Management Association.

Royal Bank of Canada 

RY-T +0.83%increase    and National Bank of Canada  NA-T +0.81%increase    are among 19 large banks, including Bank of America Corp.  BAC-N -0.71%decrease    and Wells Fargo & Co.,  WFC-N +0.61%increase    that are forming the RMA Climate Risk Consortium. The group will serve as an industry roundtable to share best practices and craft consistent frameworks for measuring and defining climate risk.


OTTAWA EXTENDS DEADLINE TO REPAY CEBA LOANS BY ONE YEAR

G&M - Chris Hannay (2022-01-13)

The federal government is giving small businesses an extra year to pay back their Canada Emergency Business Account loans, one of the most widely used business supports during the pandemic.


FINALLY, AN OPEN MORTGAGE WITH A STELLAR RATE AND NO STRINGS

G&M - Robert Mclister (2022-01-13)

Now here’s a mortgage I’ve never seen in my 14 years in the business – a mortgage that challenges the “no such thing as a free lunch” adage.


U.S. INFLATION RISES TO ANOTHER 40-YEAR HIGH OF 7%

CBC - CBC (2022-01-13)

The U.S. inflation rate is at its highest level in 40 years and shows no signs of slowing down, new data revealed on Wednesday.


CMHC TO REVIEW DOWN PAYMENTS ON INVESTMENT PROPERTIES AS PART OF FEDERAL STRATEGY TO TACKLE HOUSING RISKS

FP - Stephanie Hughes (2022-01-13)

The Ministry of Housing and Diversity and Inclusion, in partnership with the Canada Mortgage and Housing Corporation (CMHC), told the Financial Post that speculative investing in residential real estate has become an important concern, prompting Canadians to overbid on properties, borrow beyond what they can afford, and push home prices even higher.


BANKS FACING SEVERE TALENT SHORTAGE, RBC CHIEF EXECUTIVE SAYS

FP - Kevin Orland (2022-01-13)

“We’ve never faced more competition for talent, and particularly acute in the engineering, AI, data, mathematics and coding space,” said McKay, 58. The shortage of skilled employees is being exacerbated by early retirements, he said.


CANADIAN BANKS ARE SHOPPING FOR OPPORTUNITIES IN FRAGMENTED U.S. MARKET

FT - Pan Kwan Yuk (2022-01-13)

The current push comes at a time of relative strength. Once dubbed the world’s best boring banks, Canada’s biggest lenders are more profitable than ever, thanks to years of low interest rates, robust consumer borrowing and a red-hot housing market fuelling demand for mortgages.


CREDIT SUISSE FILES FIVE INSURANCE CLAIMS ON GREENSILL-LINKED FUNDS

Reuters - Reuters (2022-01-13)

As of Dec. 31, it had filed five claims related to $846 million in exposure for its Luxembourg-based supply chain finance fund, the bank said in a document published on its website, while it has filed two claims for its high income supply chain finance fund related to $326 million in exposure.


NO JAB, NO JOB: CITIGROUP TO FIRE UNVACCINATED STAFF THIS MONTH

Reuters - David Henry and Noor Zainab Hussain, Anirban Sen (2022-01-13)

Its move comes as the financial industry grapples with how to bring workers back to offices safely and get back to business as usual at a time when the highly infectious Omicron coronavirus variant is spreading like wildfire.


VISA TO TEST CENTRAL BANK DIGITAL CURRENCIES WITH CARDS, WALLETS

Bloomberg - Akayla Gardner (2022-01-13)

Visa Inc. joined its rival Mastercard Inc. in offering central banks a way to test retail applications for digital currencies they might issue.


BANK OF CANADA WILL RAISE RATES 500% THIS YEAR, TO START WITHIN WEEKS: NATIONAL BANK

Better Dwelling - Daniel Wong (2022-01-13)

National Bank sees interest rates doing a steep climb this year, and they expect it to start within weeks. In the first quarter, the Bank of Canada (BoC) is forecast to raise rates by 25 basis points (bps). This would bring the overnight rate to 0.50%, double the current level.


FOUR CANADIAN BANKS URGE THE BOC TO RAISE RATES, ANOTHER IS WARNING HOME BUYERS

Better Dwelling - Stephen Punwasi (2022-01-13)

BMO also pinned the reacceleration of home price growth on the BoC recently. They argue it’s no longer a lack of supply but excess demand created by the overabundance of easy credit. “It’s telling that the biggest share of transactions, according to Teranet data, is now investors,” the bank said in another note, suggesting interest rates should have been climbing a year ago.


RAPIDLY ESCALATING WORKPLACE ABSENCES POSE NEAR-TERM HURDLE FOR ECONOMIC GROWTH

G&M - DAVID PARKINSON (2022-01-12)

In the Omicron wave of the COVID-19 pandemic, our big economic concern may not be a new surge of unemployed. We should be more worried about the rise of the un-unemployed.


AFTER U.S. BANK STOCK SURGE, OPTIONS TRADERS BRACE FOR EARNINGS-FUELED VOLATILITY

Reuters - SAQIB IQBAL AHMED (2022-01-12)

Bank stocks have rallied in recent weeks, but a pick-up in hedging on a key financial sector exchange-traded fund may be a sign that investors are wary of earnings season volatility, options market experts said.


BANK OF AMERICA, WELLS FARGO SCRAP SOME OVERDRAFT FEES AS REGULATORY SCRUTINY GROWS

Reuters - Elizabeth Dilts Marshall (2022-01-12)

Bank of America, the second-largest U.S. bank, said earlier on Tuesday it will reduce the fee it charges customers who overdraft accounts to $10 from $35 starting in May.


JPMORGAN'S DIMON SAYS CONSUMER LOAN GROWTH MAY TAKE 6-9 MONTHS TO RETURN TO NORMAL

Reuters - David Henry and Matt Scuffham (2022-01-12)

Consumer loan growth could take six to nine months to return to normal, JPMorgan Chase & Co Chief Executive Officer Jamie Dimon said in a television interview on Tuesday.


CENTRAL BANKS, NOT COVID, WILL DRIVE GLOBAL ECONOMIES IN 2022

Bloomberg - Stephanie Flanders (2022-01-12)

When confronted with a wide range of possibilities, forecasters usually settle somewhere in the middle. Among those Bloomberg surveyed, the consensus is that the world economy will expand 4.4% in 2022, after the 5.8% bounceback of 2021. From 2023 onward, most agree, growth will return to its long-term norm of around 3.5%, as if Covid never happened.


RBC’S MCKAY CALLS FOR ‘RAPID ACTION’ ON RATES TO TAME INFLATION

Bloomberg - Kevin Orland and Theophilos Argitis (2022-01-12)

Speaking in an interview with Bloomberg News on Tuesday, McKay said he does not think the recent acceleration of inflation was transitory. He sees some signs of a wage-price cycle taking root that has already pushed up costs permanently.


MEXICAN BILLIONAIRE SALINAS SAYS HE’S INTERESTED IN CITIBANAMEX

Bloomberg - Dale Quinn (2022-01-12)

Billionaire Ricardo Salinas said he’s asked his team to look into acquiring Citigroup Inc.’s Mexican retail business known as Citibanamex, just hours after the U.S. firm announced plans to exit consumer-banking operations in the country.


POWELL MAKES CASE FOR FED CURBING INFLATION WHILE DOING NO HARM

Bloomberg - Rich Miller and Craig Torres (2022-01-12)

Federal Reserve Chair Jerome Powell sought to reassure lawmakers and investors on Tuesday that the central bank can pull off the tricky task of bringing down four-decade high inflation without damaging the U.S. economy.


THE GREENING OF THE FEDERAL RESERVE

WSJ - Editorial Board (2022-01-12)

Jerome Powell faced the Senate Banking Committee at his confirmation hearing for a second term at the Federal Reserve on Tuesday, and it’s a sign of the progressive times that a leading issue was the greening of the central bank. Not green as in money, but as in climate regulation.


BANK OF CANADA QUIETLY UPDATES REAL ESTATE AFFORDABILITY DATA TO THE WORST IN 13 YEARS

Better Dwelling - Daniel Wong (2022-01-12)

Canada’s central bank quietly updated its real estate affordability index. It wasn’t good news. The Housing Affordability Index (HAI) made a big jump in Q3 2021. Maintained by the Bank of Canada (BOC), the HAI shows the share of income required to service a mortgage on a home. Low rates are no longer helping affordability, but fueling prices that outpace wages. As a result, affordability has now reached the worst level since the Great Recession.


WORLD BANK DOWNGRADES GROWTH FORECAST

Investment Executive - Paul Wiseman (2022-01-12)

iStock


FINAL REPORT OF THE BOC-OSFI CLIMATE SCENARIO ANALYSIS PILOT

BOC - BOC (2022-01-12)

On Friday, January 14, 2022, the Bank of Canada and the Office of the Superintendent of Financial Institutions (OSFI) will publish the Final Report of the BoC-OSFI Climate Scenario Analysis Pilot.


BANK REGULATOR MULLS HIGHER CAPITAL REQUIREMENTS FOR BANKS AS CUSHION AGAINST CLIMATE CHANGE RISKS

G&M - James Bradshaw (2022-01-11)

Canada’s banking regulator could raise capital requirements for banks in the coming years to build up new buffers against risks from climate change and the challenging transition to a greener economy.

Peter Routledge, who leads the Office of the Superintendent of Financial Institutions (OSFI), said at a virtual conference held by Royal Bank of Canada on Wednesday that the regulator “will expect federally regulated financial institutions to build up their capital buffers in the 2020s.”

New capital buffers would be designed to guard against potentially higher volatility and risks to the financial sector as action to combat climate change ramps up, and especially if some of the tougher measures are put off past 2030.

After OSFI lifted those restrictions in November, with Mr. Routledge urging banks to “act responsibly” with their surplus capital, the six largest banks announced dividend increases of 10 per cent to 25 per cent, and plans to buy back 2 per cent to 3.5 per cent of their shares. And in late December, Bank of Montreal 

BMO-T -0.04%decrease  

struck a $20.9-billion deal to buy California-based Bank of the West, cancelling its plans to buy back shares.


DISCOUNT BROKERAGES TO START CHARGING CUSTOMERS FOR MUTUAL FUND TRADES

G&M - Clare O'Hara (2022-01-11)

Do-it-yourself investors will soon have to pay fees for mutual fund trades on certain discount brokerages, as companies prepare to recoup losses from regulatory changes that will no longer allow online trading platforms to sell mutual funds with embedded charges known as trailing commissions.


CANADIAN BANK CEOS WEIGH IN ON UNCERTAIN ECONOMIC OUTLOOK IN 2022

FP - Stephanie Hughes (2022-01-11)

The head of Canada’s largest bank says uncertainty wrought by the Omicron variant is making it difficult to generate economic forecasts, as the country struggles with rising COVID-19 hospitalizations, employee absences and new lockdown measures.


RBC CEO DAVE MCKAY LOOKS FOR DEALS IN U.S. AND EUROPE WEALTH MANAGEMENT

FP - Kevin Orland (2022-01-11)

Wealth management is a particularly attractive business for investment right now because it offers a high return on equity along with stable revenue and an opportunity to cross-sell other products such as credit cards to clients, McKay said.
Royal Bank sees organic growth in businesses like commercial banking, corporate banking and credit cards as its “primary growth mechanism” along with investing in startups in its RBC Ventures portfolio, McKay said.


FRENCH FINTECH QONTO NEARS $5 BLN VALUATION AFTER NEW FUNDRAISING

Reuters - Mathieu Rosemain (2022-01-11)

Qonto, a French online bank for small and medium-sized companies (SMEs), said on Tuesday it had raised 486 million euros, bringing its valuation to 4.4 billion euros ($4.98 billion), in another sign of the good health of the French fintech sector.


SERVING MULTIPLE MASTERS: WHEN INVESTMENT FIRMS GO PUBLIC

Bloomberg - Marc Rubinstein (2022-01-11)

Principal-agent problems occur whenever people delegate responsibility. In the investment business, they're especially pronounced. When a customer gives a manager funds to invest, she expects they’ll act in her best interest but can she be sure? This is a question clients of TPG Inc., the 30-year-old private-equity firm, may be pondering as it goes public.    Over the years, a range of devices have been developed to keep managers on track.   There’s the law, of course, specifically the U.S. Investment Company Act of 1940 which declares that, “the national public interest and the interest of investors are adversely affected…when investment companies are organized, operated, managed…in the interest of directors, officers…rather than in the interest of…such companies’ security holders.”   Then there are fee structures. The industry convention is to charge fees as a percentage of assets under management; that’s not ideal because it rewards size rather than performance, which is only one driver of asset growth (the other being marketing). A complementary approach — to charge fees as a percentage of performance — is inherently asymmetric since managers are rarely willing to return fees when performance lags. Sometimes, customers require that managers “eat their own cooking” to signal that interests are aligned.   It’s all very complex. But add in another stakeholder group and the situation gets even more tangled. Historically, most investment firms were structured as private partnerships, so the only conflicts they had to resolve were between customer and manager. Once they started going public, though, a whole new axis of conflict opened up. Ask the chief executive officer of an investment firm whether he looks at his fund’s net asset value, his assets under management or his stock price before heading home for the evening and you may get a different response depending on whether you’re a client, an employee or a shareholder.   This is the situation TPG – founded as the Texas Pacific Group in 1992 -- faces this week as it seeks to go public. Its S-1 prospectus contains seven and a half pages of risk factors detailing its conflicts of interest. In essence, they are the same ones Blackstone Inc. faced 15 years ago as one of the first private-equity partnerships to go public. Blackstone co-founder, Stephen Schwarzman, spells out the challenge in his 2019 book, “What It Takes”:


WARY GLOBAL BOND MARKETS BRACE FOR THE SUPPLY FLOODGATES TO OPEN

Bloomberg - Garfield Clinton Reynolds, Liz McCormick, James Hirai, and Masaki Kondo (2022-01-11)

The amount of government bonds hitting the private sector is set to swell in 2022, adding pressure on yields to rise further as investors across most major markets absorb much larger helpings of debt.


POWELL CONFIRMATION HEARING COULD SHED MORE LIGHT ON PLANS TO CONTAIN INFLATION

WSJ - Nick Timiraos (2022-01-11)

Federal Reserve Chairman Jerome Powell is expected to win a second term leading the central bank but could face a grilling Tuesday at his Senate confirmation hearing, where he is likely to be pressed over how the central bank will tighten policy to combat inflation.


UBS TARGETS LOWER-END RICH WITH ADVICE BY DEVICE

WSJ - Margot Patrick (2022-01-11)

UBS Group AG doubled profit in its U.S. wealth business over the past five years by wooing rich families with white-glove service. For its next act, it is going after the not-as-rich with cheaper digital advice.


BANK STOCKS SET FOR BIG GAINS AHEAD OF POTENTIAL FED RATE INCREASES

WSJ - Hardika Singh (2022-01-11)

Bank investors are ready for higher Treasury yields.


CANADIAN REAL ESTATE CONSTRUCTION COSTS ARE AMONGST NORTH AMERICA’S LOWEST: RLB

Better Dwelling - Stephen Punwasi (2022-01-11)

A more recent estimate of taxes and fees shows it’s reaching nose bleed levels. A one-bedroom buyer in Toronto is estimated to pay $186,000 in taxes and fees alone. The recent adoption of “inclusionary zoning” is also estimated to add $61,000 per unit on top of that. It’s the cost of a whole house in some American cities, just in taxes and fees.


MAKING SENSE OF THE INFLATION TUG-OF-WAR

Linkedin - Philip Hergel (2022-01-11)

In recent years, there has been a global movement towards deglobalization. The effort to shorten supply chains to protect domestic companies and workers became super-charged as the pandemic hit. By insourcing and reducing the length of the supply chain, not only do manufacturers protect the domestic workforce, but they also protect against the risk of supply disruptions, like we experienced early in the pandemic. The downside to relocating facilities back home is that manufacturers can no longer take advantage of cheap labor in developing economies, creating the potential risk for higher inflation.


ARK’S CATHIE WOOD TURNS FOCUS TO DEFLATION, ‘STAY CONNECTED’ STOCKS

G&M - David Randall (2022-01-11)

Star stock picker Cathie Wood of ARK Invest doubled down on her bet that deflation, rather than inflation, will be the largest factor in the U.S. economy in the year ahead in a webinar on Tuesday.


BMO LOOKS TO MAJOR PENSION PLANS FOR HELP FUNDING $21-BILLION TAKEOVER DEAL

G&M - Andrew Willis (2022-01-10)

Bank of Montreal is looking to Canada’s largest pension plans to help back its planned $21-billion takeover of Bank of the West, after a string of domestic companies have successfully tapped institutional investors for expansion capital.


CANADA HAS COMMITTED TO HALT FINANCING TO THE OIL AND GAS INDUSTRY. TO UNDERSTAND WHAT THAT REALLY MEANS, WATCH FOR THE FINE PRINT

G&M - Matthew McClearn (2022-01-10)

Of all the recipients of Canadian government support in recent years, Petroleos Mexicanos (Pemex) ranks among the strangest. Export Development Canada, a Crown corporation, provided 19 loans to Mexico’s state-owned oil company over 15 years, totalling somewhere between $3-billion and $5.7-billion (EDC only discloses ranges, not precise amounts). The Indian Oil Company received somewhere between $190-million and $425-million. Petrobras, Brazil’s state-owned oil company, got at least $1-billion.


CANADA NEEDS A FRESH APPROACH TO BUILD DESPERATELY NEEDED NEW HOMES

FP - Murtaza Haider and Stephen Moranis (2022-01-10)

Markets across Canada concluded 2021 with escalating sales and prices, which is a boon for sellers and a source of anguish and despair for frustrated unsuccessful buyers. For example, the average sale price in Toronto last year was $1.1 million, a 17.8 per cent increase over the previous year, on an unprecedented 121,712 sales.


APPLE COULD REINVENT MONEY MANAGEMENT, TAKE ON PAYPAL AND ROBINHOOD

Reuters - Mark Gurman (2022-01-10)

Over 1 billion people already use the iPhone to digitally manage key parts of their lives. That includes monitoring their health data, controlling their home and even starting their BMW.


LATEST EMPLOYMENT NUMBERS POSITIVE, BUT ‘A LITTLE BIT STALE’

Investment Executive - Greg Mechbach (2022-01-10)

Canada’s unemployment rate was 5.9% in December, down from 6% in November and 7.1% in August, Statistics Canada reported Friday.


CRYPTO CRIME SURGES ALONGSIDE INVESTORS’ ARDOUR

Investment Executive - James Langton (2022-01-10)

In a post previewing its forthcoming annual crypto crime report (which is due for release next month), New York-based Chainalysis said that web addresses it has associated with illicit activity received more than US$14 billion in 2021, up from around US$7.8 billion the previous year.


INFLATION HITS RECORD OF 5% IN 19 COUNTRIES USING THE EURO

Investment Executive - AP (2022-01-10)

Energy costs spiked again in December, jumping at an annual rate of 26%, though that was a bit lower than the previous month, according to Eurostat’s data. A stronger rise in food costs contributed to the increase in overall inflation, picking up pace to 3.2%, higher than the 2.2% rate posted in November.


UK FINANCIAL REGULATORS TO STEP UP SCRUTINY OF CLOUD COMPUTING GIANTS

FT - Stephen Morris and Laura Noonan (2022-01-10)

UK financial regulators are preparing to step up their scrutiny of cloud computing providers amid growing fears that an outage or hack of their services could severely disrupt a banking system increasingly reliant on them.


HELP TO BUY HAS PUSHED UP HOUSE PRICES IN ENGLAND, SAYS REPORT

FT - George Hammond (2022-01-10)

The government’s £29bn Help to Buy scheme has pushed up house prices in England and failed to “provide good value for money” for the taxpayer, according to a House of Lords report published on Monday. Cash spent on the scheme could instead have helped to replenish England’s falling stock of social housing, said the report’s authors, who sit on the Lords’ built environment committee.


THE ABILITY OF CANADIANS TO AFFORD A HOME AT ITS LOWEST POINT IN 31 YEARS

Calgary Herald - Joel Schlesinger (2022-01-09)

In Vancouver, for example, the report notes that cost of home ownership was about 64 per cent of median household income, while in Toronto the figure was about 62 per cent.


MORTGAGE RUNDOWN: 2022 IS GO TIME FOR RATE HIKES. THIS QUICK-AND-DIRTY PLAYBOOK WILL HELP YOU PICK THE BEST TERM

G&M - Robert Mclister (2022-01-09)

Mortgage rates have been treading water for weeks as lenders await the first central bank hike since 2018. The bond market now sees the Bank of Canada pulling the trigger by its March 2 meeting.


CANADA’S BIGGEST PENSION PLANS TAKE PRIVATE FIRMS PUBLIC ON STRONG IPO MARKET

G&M - David Milstead (2022-01-09)

The hot market for initial public offerings in 2021 allowed Canada’s largest pension plans to turn two dozen of their private investment holdings into public companies via billions of dollars of IPO transactions – but many of the stocks have stumbled since their public debut.

In some cases, the pension plans were controlling shareholders and made the choice to bring their companies to market. In others, they were minority investors from their early-stage commitments and came along for the ride when the company decided to do an IPO.

Either way, the strong investor demand for new stock offerings in hot industries, particularly technology, gave the pensions an additional option for making their long-term investments liquid, rather than selling their stake to another private investor. The underwhelming performance of some of the offerings, however, may prompt plans to extend their holding periods in the new public companies.

According to data from Refinitiv, 2021 was one of the best years for IPOs involving Canadian pension plans. Typically, there are four or fewer offerings each year, with just a few billion dollars raised.

The Globe and Mail asked Canada’s eight largest pension plans which of their private company holdings completed initial public offerings in 2021. The IPO list shows the plans’ global reach: It contains 24 companies around the world, with just three in Canada. As of last week, the companies combined for nearly $110-billion in market capitalization.

However, volatile markets in the latter half of 2021 have made for a rocky time for many of the pension IPOs. According to data from S&P, shares in 12 of the 24 are down at least 25 per cent from their closing price on their first day of trading.

OMERS Ventures and other affiliates of the pension plan participated in five IPOs, with all having some type of tech angle. In Canada, OMERS has 7-per-cent stakes in artificial-intelligence company Coveo Solutions Inc. and online-learning company D2L Inc. which went public on the Toronto Stock Exchange in November; D2L is down about 20 per cent since then, while Coveo’s shares are flat.


COURT GIVES GO-AHEAD TO CLASS-ACTION LAWSUIT OVER BREAD PRICE FIXING

G&M - Susan Kranshinsky (2022-01-07)

An Ontario Superior Court judge has given the green light for a class-action lawsuit alleging Canada’s largest grocers and bread makers manipulated bread prices and overcharged consumers by an estimated $5-billion over 16 years.

The decision, released on Dec. 31, means legal actions are now in progress in Canada’s two largest provinces over the issue. The Quebec Superior Court authorized another lawsuit over the alleged price fixing in 2019.

Three consumers launched the Ontario class-action on behalf of Canadian shoppers. The lawsuit names Loblaw Cos. Ltd. 

L-T +1.21%increase   ; George Weston Ltd.  WNGRF +2.00%increase    and its former subsidiaries Weston Bakeries and Weston Foods; Canada Bread Company Ltd.; Metro Inc.  MRU-T +1.74%increase   ; Sobeys Inc.; Walmart Canada; and Giant Tiger Stores Ltd. However, the judge dismissed a motion to certify the action against Sobeys parent Empire Company Ltd.  EMP-A-T +2.34%increase   , Walmart’s American parent Walmart Inc.  WMT-N -0.28%decrease    and Canada Bread’s parent companies during the period (Maple Leaf Foods Inc.  MFI-T +1.04%increase    sold the business to Mexico’s Grupo Bimbo in 2014.)


NEW WAVE OF COVID-19 FORCES BANK OF CANADA TO REASSESS INTEREST RATE DECISION

G&M - DAVID PARKINSON (2022-01-07)

The Bank of Canada is about to be flooded with new data that will inform this month’s potentially pivotal decision on interest rates. The question is how much of it will be drowned out by the COVID-19 pandemic’s newest tidal wave.


PARENTS, HOW DO YOU FEEL ABOUT BANKROLLING YOUR KIDS’ HOUSE PURCHASE?

G&M - Rob Carrick (2022-01-07)

The Bank of Mom and Dad, now BOMAD, is a term I recall first hearing after the 2008-09 recession, when the storyline of parents financially supporting young adults took off. It’s almost laughable now to think of the kind of help being offered then – payment of cellphone bills, car insurance and sundry other expenses.


WITH HOUSING MARKET SMASHING NEW RECORDS, THINK-TANK PITCHES PROGRESSIVE TAX ON HOMES OVER $1M

CBC - Pete Evans (2022-01-07)

Though the tax would be calculated annually, it would be deferred until the home is sold, so it would function similar to a land transfer tax that many provinces and municipalities already levy.


WITH SO MANY CRYPTOCURRENCIES, WHY DO ANY OF THEM HAVE VALUE?

CBC - Don Pittis (2022-01-07)

According to CoinMarketCap, known as a credible source for crypto data, at last count there were 16,394 different crypto tokens trading on 451 different exchanges, valued at something over $2.2 trillion US.


BANKS ARE KEEPING SOME OF THEIR POWDER DRY WHEN IT COMES TO DIVIDEND INCREASES, ANALYSTS SAY

FP - Barbara Shecter (2022-01-07)

Canada’s big banks have permission from regulators to turn on the taps with dividend increases, but they may be holding back a bit due to concerns that the government will impose a policy-driven tax levy or recovery funds, as was floated during the federal election last year, according to a new research note from Hamilton ETFs.


RBC RETAKES CANADIAN IPO CROWN AS MARKET SURGE FUELS RECORD YEAR

FP - Kevin Orland (2022-01-07)

Canadian companies undertook 173 IPOs with a total value of $11.9 billion (US$9.3 billion), according to data compiled by Bloomberg. That tops the previous record of $8.24 billion set in 2006. Drivers included a government stimulus-aided economic rebound amid the COVID crisis and record low interest rates that combined to spur a 22 per cent jump in the S&P/TSX Composite Index.


AMSTERDAM RETAINS SHARE-TRADING SUPREMACY OVER LONDON A YEAR AFTER BREXIT

Reuters - Huw Jones and Elizabeth Howcroft (2022-01-07)

Amsterdam ended 2021 as Europe's top share trading venue, holding its lead over London despite efforts by the British financial centre to make its equity markets more attractive after Brexit.


BLACKROCK, BANKS DOMINATE CANADA ETF SALES IN RECORD $41 BILLION YEAR

Bloomberg - Layan Odeh (2022-01-07)

Total inflows came in at C$52.5 billion ($41.3 billion) for the year, a 27% increase from a year earlier, as retail and institutional investors continue to turn to ETFs for “tactical and strategic” reasons, National Bank Financial analyst Daniel Straus said in a report. 


GHISLAINE MAXWELL JUROR WHO COULD UPEND CONVICTION WORKS FOR CARLYLE GROUP

Bloomberg - Gillian Tan and Katia Porzecanski (2022-01-07)

Todd Spodek, an attorney for the juror, didn’t respond to requests for comment, nor did the juror -- who identified himself in the press as Scotty David, his first and middle names.


CANADIAN REAL ESTATE NEEDED TIGHTER MONETARY POLICY A YEAR AGO: BMO

Better Dwelling - Daniel Wong (2022-01-07)

“Another month, another period with the Toronto housing market running amok,” said Robert Kavcic, a senior economist at BMO. “The benchmark price is now up more than 30% y/y, or in-line with the heights seen in early-2017 when the single-detached market was ablaze.”


LARGE BANK M&A DEALS FACE ROUGHER RIDE FROM REGULATORS: FITCH

Investment Executive - James Langton (2022-01-07)

The report noted that transactions, such as BMO’s planned deal for BOW could be impacted, along with U.S. Bancorp’s deal for MUFG Union Bank, M&T Bank’s acquisition of People’s United Financial, and Citizens Financial Group’s merger with Investors Bancorp.


MARKET JITTERS: IS A REGIME CHANGE IMMINENT?

Real Vision - Video (2022-01-07)

On Wednesday, the S&P 500 fell 1.9%—the worst single-day decline in 11 months and the worst start to a year since 2008. Even crypto is taking a beating. The entire country has turned its attention to the Fed, which yesterday hinted at becoming more aggressive, triggering the steep drop in stocks. The taper, rising rates, and declining balance sheets are on the agenda.


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DIGITAL SECRET-KEEPER 1PASSWORD SMASHES VENTURE CAPITAL RECORD WITH US$620-MILLION DEAL, MAKING IT ONE OF CANADA’S MOST VALUABLE TECH COMPANIES

G&M - Sean Silcoff (2022-01-20)

Toronto’s 1Password became a leading password management service by spreading virally through word-of-mouth recommendations from consumers that used its app to store the keys to their increasingly digital lives. Now its success at cracking the corporate market has landed 1Password a record-setting investment.


NASDAQ CONFIRMS CORRECTION AS WALL STREET SELL-OFF DEEPENS; TSX LOSSES BLUNTED BY RALLY IN MATERIALS

G&M - Staff (2022-01-20)

Wall Street’s main indexes fell on Wednesday, with the tech-heavy Nasdaq confirming a correction, after a diverse set of corporate earnings and as investors continued to worry about higher U.S. Treasury yields and the Federal Reserve tightening monetary policy. The TSX also lost ground, although a big rally in the materials sector - and precious metals stocks in particular - limited losses.


WALL STREET BANKS EYE 'NEW NORMAL' FOR TRADING REVENUE AFTER STELLAR TWO YEARS

Reuters - Matt Scuffham (2022-01-20)

Wall Street banks are expecting trading revenue to settle at a "new normal" somewhere between pre-pandemic levels and the highs of the past two years, top executives and analysts say.


BANK OF AMERICA PROFIT BEATS ESTIMATES ON LOAN GROWTH, M&A BOOST

Reuters - Niket Nishant and Elizabeth Dilts Marshall (2022-01-20)

Loans grew during the quarter across every category except home equity, with average loans and leases, excluding those from the government's Paycheck Protection Program, up 3.4% from the prior quarter and 3.2% from a year ago, the bank said.