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

Canadian real estate and government, March 29

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

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

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

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

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

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

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

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

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

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

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

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

We a living a ponzi real estate market and the economy is at risk. Yet Doug Porter, economist BMO, is on record as saying Candian\'s want to pay more for houses. Yes, you can\'t make this stuff up. This video discusses the issues related to Porter\'s statement and explains why he is wrong.
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January real estate report 2021

2020 was a record year, except for condos. Montreal REM sites the exception to this rule. This video shares insights regarding the Canadian real estate segment.
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December 4th real estate report

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

The mortgage debt to income ratio declined despite the pandemic. In this issue I discuss real estate stalling and immigration's impact on home prices.
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Real estate: fiscal conservatism/ponzi neoliberali

This video is intended to give viewers an understanding of the economic ideas behind Canada's potential housing bubble. This video also explains why Siddal, President and CEO of the CMHC, was likely pushed from his post.
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Caution for real estate investors, Oct 14th report

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

RBC NAMES SITTING BCE CHIEF TO BOARD OF DIRECTORS, EXPANDING EXECUTIVE WEB TYING CANADA’S BANKS AND TELECOMS TOGETHER

G&M - James Bradshaw (2022-08-14)

BCE Inc. chief executive officer Mirko Bibic is joining the board of directors at Royal Bank of Canada, expanding the powerful web of bankers and executives who straddle two of Canada’s largest industries.


CANADIAN HOME PRICES COULD DROP BY 25 PER CENT BY END OF NEXT YEAR, REPORT SAYS

G&M (2022-08-12)

Canada’s average home price could drop by as much as 25 per cent from peak values in February by the end of next year, with the Maritimes and most of Ontario shouldering greater declines owing to the sharp jump in borrowing costs, says a new private-sector forecast.


BROOKFIELD PROFIT FALLS 39 PER CENT AS RATES RISE; CARNEY TO CHAIR ASSET-MANAGER SPINOFF

G&M - David Milstead (2022-08-12)

On Thursday, Brookfield also revealed a few more details of the planned spinoff of its asset-management business, including the appointment of former Bank of Canada governor Mark Carney as chair of the new company, and the spinoff’s new name: Brookfield Asset Management Ltd.


CANADIAN TIRE PROFIT FALLS 30 PER CENT EVEN AS SALES GAIN

G&M - SUSAN KRASHINSKY ROBERTSON (2022-08-12)

Canadian Tire Corp. Ltd. 

CTC-A-T -4.60%decrease    profits fell by more than 30 per cent in the second quarter even amid increased sales, as the company incurred costs related to an operational efficiency program and to pulling its Helly Hansen business out of Russia.


WHY AREN'T CANADIAN BANKS LOWERING FIXED MORTGAGE RATES GIVEN THAT BOND YIELDS ARE FALLING?

G&M - Robert Mclister (2022-08-12)

With rates rocketing last quarter, banks’ funding and hedging costs soared even more, squeezing their profit margins. These “spreads,” as banks call them, only started improving materially in the past couple of months.


CPPIB BREAKS WINNING STREAK WITH $23-BILLION LOSS AMID 'MARKET TURBULENCE'

Yahoo Finance - Barbara Shecter (2022-08-12)

On Thursday, CPPIB reported a 4.2 per cent loss, equivalent to $23 billion, for the three months ending June 30. Net assets fell to $523 billion from $539 billion, and included an influx of $7 billion from CPP contributions.


GOLD SET FOR FOURTH WEEKLY GAIN ON SIGNS FED TO EASE RATE HIKES

Yahoo Finance - Ranjeetha Pakiam (2022-08-12)

The precious metal has now rebounded around 6% from a low in mid-July on a combination of fears of a global recession and heightened US-China tensions over Taiwan. It’s also been aided by declines in the dollar in recent weeks.


JAPAN'S YEN BEARS BRUNT OF MARKET RETHINK ON FED

Yahoo Finance - Rae Wee and Vidya Ranganathan (2022-08-12)

The Japanese yen fell the most against a resurgent U.S. dollar on Friday, as a two-day rally in equities conceded to market expectations that the Fed will have to do a lot more to contain inflation.


BROOKFIELD ELEVATES MARK CARNEY AS IT SHUFFLES SENIOR RANKS IN ASSET MANAGEMENT SPINOFF

FP - Layan Odeh (2022-08-12)

Brookfield Asset Management Inc. is shuffling its senior ranks as its prepares to reorganize its core investment business, mapping out a potential long-range succession plan for chief executive officer Bruce Flatt.


RISING MORTGAGE RATES DRIVING ONTARIO HOMEOWNERS TO MOVE IN SEARCH OF AFFORDABILITY

FP - Victoria Wells (2022-08-12)

High home prices, exacerbated by rising mortgage rates, are forcing some homeowners in Ontario to sell and find more affordable digs, new research from a real estate industry website suggests.


CANADA'S HOUSING MARKET HEADED FOR 'HISTORIC CORRECTION,' SAYS RBC

FP - Pamela Heaven (2022-08-12)

Canada’s largest bank has downgraded its outlook for the housing market and now forecasts a “historic correction,” worse than any national decline seen in this country in the past 40 years.


GROCERY RETAILER METRO PROFIT RISES 9% AS FOOD AND PHARMACY SALES GROW

FP (2022-08-12)

The Montreal-based grocery and drug store retailer says the profit amounted to $1.14 per diluted share for the period ended July 2, up from $1.03 cents per diluted share a year earlier.


SANCTION ALL RUSSIAN BANKS, UKRAINE’S AMBASSADOR TO THE US URGES

Bloomberg - Eric Martin (2022-08-12)

Ukraine is calling on President Joe Biden’s administration to sanction all Russian private banks to help end President Vladimir Putin’s ability to wage war, according to Kyiv’s envoy to Washington.


THE GREAT RESIGNATION HAS ARRIVED IN CANADA

G&M - DAVID PARKINSON (2022-08-11)

It took a while for a version of the Great Resignation to take hold in Canada, but now it’s here. It has taken the form of a retirement wave – and its arrival further clouds the outlook for an already murky economy.


CANADA’S SECURITIES ENFORCEMENT TAILS OFF, AND THE FUTURE LOOKS NO BRIGHTER

G&M - David Milstead (2022-08-11)

Enforcement activity by Canada’s provincial stock-market cops dropped sharply during the first two years of the pandemic. Now, as investments look sicker, will regulatory activity get more robust? There are reasons to fear it will not.


U.S. INFLATION RATE SLIPS FROM 40-YEAR PEAK BUT REMAINS HIGH AT 8.5%

G&M - Christopher Rugaber (2022-08-11)

Falling gas prices gave Americans a slight break from the pain of high inflation last month, though the surge in overall prices slowed only modestly from the four-decade high it reached in June.


BANK OF ENGLAND SAYS WEAKENING REGULATORS WOULD UNDERMINE MARKET REFORMS

Yahoo Finance (2022-08-11)

Weakening the independence of regulators would undermine reforms to bolster Britain's finance industry, the head of the Bank of England said on Thursday, in a rebuff to proposals from the leading candidate to be the country's next prime minister.


MEXICO, PERU, ARGENTINA SET FOR NEW RATE HIKES: DECISION GUIDE

Yahoo Finance - Max de Haldevang (2022-08-11)

Mexico and Peru’s central banks are expected Thursday to hike their key interest rates to the highest point in more than a decade, as they continue their record tightening cycles to try to wrestle persistent inflation back under control.


ROOF IS ABOUT TO CAVE IN ON THE CANADIAN ECONOMY

FP - David Rosenberg (2022-08-11)

While these figures are concerning, to say the least, the carnage could be much more severe than even we anticipate, given that household balance sheets remain in poor shape and that the economy’s exposure to the real estate market is near all-time highs, with real estate as a share of disposable income at a record 563 per cent and the share of new mortgages with variable rates at 55 per cent.


ODDS OF BANK OF CANADA HIKING 75 BASIS POINTS IN SEPTEMBER JUST WENT DOWN

FP - Eerik Hertzberg (2022-08-11)

Overnight swap markets suggest about a 45 per cent chance that officials led by Governor Tiff Macklem will increase borrowing costs by three quarters of a percentage point at their Sept. 7 decision. A move of that magnitude would bring the policy rate to 3.25 per cent, the highest since April 2008.


'SOFT LANDING IS WISHFUL THINKING AT THIS STAGE:' FORMER BANK OF CANADA ECONOMIST

FP - Gabriel Friedman (2022-08-11)

This week on Down to Business, Jean-Paul Lam, a professor in the University of Waterloo’s Dept of Economics and a former assistant chief economist at the Bank of Canada, talks about interest rates and inflation.


MANULIFE’S CANADIAN OPERATIONS CUSHION BLOW FROM COVID-HIT ASIA

Bloomberg - Kevin Orland (2022-08-11)

Manulife Financial Corp.’s Canadian business boosted profit last quarter on the back of rising sales and lower-than-expected benefit use, cushioning the toll that continued Covid restrictions are taking on its Asian operations.   


CANADIAN REAL ESTATE AFFORDABILITY HITS WORST LEVEL SINCE THE 90S: BANK OF CANADA

Better Dwelling (2022-08-11)

The BoC HAI ripped to the highest level in a generation, and the highest share in 3 decades. The HAI shows a household needs 42.8% of their disposable income to carry a home in Q1 2022. It’s an increase of more than 3 points from the previous quarter and 8.1 points from last year. The HAI hasn’t been this high since Q3 1991, which was the previous peak of the real estate cycle (i.e. the bubble peak).


AGGRIEVED INVESTOR MUST PAY BACK LOAN, COURT FINDS

Investment Executive - James Langton (2022-08-11)

In her defence, and in a counterclaim seeking $60,000 from the bank, Letrado argued that she assumed Kumar worked for B2B and that the bank should have known Kumar was borrowing money on her behalf and investigated him. She also argued that it breached its fiduciary duty or duty of care to her.


BANKERS TURNED BILLIONAIRES FOR AN INSTANT, THEN CAME 89% CRASH

Bloomberg - Venus Feng (2022-08-10)

Two founders of a little-known Hong Kong investment bank briefly became billionaires in recent days following a baffling stock surge, only to see their paper fortunes quickly tumble when the shares plunged. 


CANADIAN FINANCIER NED GOODMAN FOUNDED AN ARRAY OF CANADIAN MONEY MANAGERS AND MINING COMPANIES

G&M - ANDREW WILLIS AND NIALL MCGEE (2022-08-10)

Financier Ned Goodman, a major player on Bay Street who for five decades founded money management firms and backed successful mining companies, passed away on Sunday at age 85.

Mr. Goodman, a native of Montreal, provided the capital and leadership that transformed small resource projects into major companies such as Kinross Gold Corp. 

K-T -0.67%decrease    and IAMGOLD Corp.  IMG-T +1.14%increase    He was also a driving force behind the creation of mines now owned by Barrick Gold Corp.  ABX-T +1.54%increase    Over the course of his career, he launched two major money managers: Beutel, Goodman & Company Ltd. and Dynamic Funds.


GREATER TORONTO DETACHED REAL ESTATE PRICES DROPPED AS MUCH AS $178K LAST MONTH

Better Dwelling (2022-08-10)

Greater Toronto detached real estate prices made a sharp drop last month. The benchmark across the region fell to $1,455,000 in July, down 4.5% (-$68,600) in just one month. Demand has been softening as rates increase and exuberance dissipates. The segment is now in a buyer’s market, where prices are expected to fall even further. 


MAJOR ECONOMIES FACING SLOWER GROWTH: OECD

Investment Executive - James Langton (2022-08-10)

“Dragged down by historically high inflation, low consumer confidence and declining share price indices, the CLIs remain below trend and continue to anticipate a loss of growth momentum in most large OECD economies,” the Paris-based group said in a release.


CARLYLE BOSS QUIT AFTER FAILED REQUEST FOR $300MN PAY PACKAGE

FT - Kaye Wiggins, Anoine Gara (2022-08-10)

Carlyle Group’s ousted chief executive Kewsong Lee asked for a pay package worth up to $300mn over five years and resigned from the US private equity group after its co-founders refused to even discuss the deal, multiple people with knowledge of the matter said. Lee crafted the deal during negotiations with his consultants and Carlyle this spring ahead of planned talks with the board over a new five-year contract. The share-based pay package was tied to the performance of the private equity group’s stock. But Carlyle’s billionaire co-founders Bill Conway, David Rubenstein and Daniel D’Aniello, who sit on its board, would not engage in talks on the proposal and did not respond to Lee’s detailed submission, the people said.


WHY CRITICISM OF THE BANK OF ENGLAND IS LARGELY MISPLACED

FT - Bruna Skarica (2022-08-10)

With inflation higher than it has been in decades, there is no shortage of critics of the Bank of England. Still, the bulk of the blame seems largely unfounded.


THE UK GOVERNMENT’S VENTURE FUND HAS A PROBLEM — WITH FAILURE AND SUCCESS

FT - Helen Thomas (2022-08-10)

It is fitting that the taxpaying public gets to hear a candid appraisal of the government’s pandemic venture capital fund by accident.


AS MORE CANADIANS CHOOSE COMMON-LAW RELATIONSHIPS, EXPERTS URGE ESTATE PLANNING

G&M - Ben Mussett (2022-08-09)

With nearly one in four Canadian couples now living in a common-law relationship, estate planning experts are urging the ever-growing number of nonmarried couples to draw up a will to ensure their life partners aren’t forgotten once they’re gone.


INSOLVENCIES EXPOSING CRACKS IN CANADA’S ECONOMY

G&M - DAVID PARKINSON (2022-08-09)

For a while there, it looked like government support programs had saved Canadians from widespread insolvencies and business failures in the COVID-19 recession. Maybe we declared that victory too soon.


POWER CORP. CEO DEFENDS INVESTMENTS IN FINANCIAL TECHNOLOGY COMPANIES AMID SECTOR DOWNTURN

G&M - Clare O'Hara (2022-08-09)

Power Corporation of Canada’s chief executive officer, Jeffrey Orr, is defending the company’s investments in financial technology startups, despite a downturn in the sector that has resulted in a dramatically lower valuation for the company’s biggest fintech bet, Wealthsimple Technologies Inc.


CRYPTO WINTER CONTINUES TO SHAVE BILLIONS FROM THE STOCK MARKET: MORNING BRIEF

Yahoo Finance (2022-08-09)

"Nvidia's gaming slowdown likely includes the chips they sell to the crypto market, which has been weak, hence the extent of the slowdown is so significant," J.P. Morgan analyst Sandeep Deshpande wrote in a note on Monday.


BANK OF ENGLAND WILL PROBABLY NEED TO RAISE RATES AGAIN, RAMSDEN SAYS

Reuters - William Schomberg, Andy Bruce (2022-08-09)

Inflation is expected to return to the BoE's 2% target - down from above 9% now and a projected peak of 13% in October - as the economy goes into a recession and borrowing costs rise.


CHINA ORDERS AUDIT OF $3 TRILLION TRUST INDUSTRY

Reuters (2022-08-09)

China's top auditor is conducting a review of the $3 trillion trust industry, Bloomberg News reported on Tuesday, citing people familiar with the matter.


CARLYLE CEO KEWSONG LEE STEPS DOWN IN ABRUPT EARLY DEPARTURE

Reuters - Chibuike Oguh, Kane Wu (2022-08-09)

The firm, which reported earnings in July without flagging potential leadership changes, said Lee had also stepped down as a board member.


ROMAN ABRAMOVICH’S LONDON EMPIRE UNRAVELS AS SANCTIONS BITE

Bloomberg - Benjamin Stupples (2022-08-09)

Roman Abramovich’s cream-colored Kensington mansion has more than a dozen bedrooms and police vans posted at each end of its tree-lined street. Nearby neighbors include British royals, steel magnate Lakshmi Mittal and Warner Music Group owner Len Blavatnik.


TD’S LATEST U.S. ACQUISITION ADDS RISK: MOODY’S

Investment Executive - James Langton (2022-08-09)

According to Moody’s, while the deal will enable TD to accelerate its U.S. growth plans, it also increases the bank’s exposure to capital markets, which are generally riskier than TD’s other business activities.


FAIRFAX PROPOSES TAKING SWISS CHALET OWNER RECIPE UNLIMITED PRIVATE IN $1.2-BILLION DEAL

G&M - SUSAN KRASHINSKY ROBERTSON (2022-08-09)

Fairfax Financial Holdings Ltd. has proposed taking Recipe Unlimited Corp. private in a deal that values the restaurant-chain owner at $1.2-billion.


'GREAT FOR LANDLORDS, HORRIBLE FOR RENTERS': HOW A RUNAWAY RENTAL MARKET HAS BECOME TORONTO'S LATEST HOUSING NIGHTMARE

FP (2022-08-09)

“(We’re) getting tired of viewing about 10 houses, liking a couple of them and then losing out on the ones you like to someone who outbid you for $300 or $400,” Kaul said, explaining that he and his friends have started to overbid listings in an attempt to secure a place they can move into by September.


BERKSHIRE HATHAWAY POSTS $43.8 BILLION LOSS AS STOCK HOLDINGS TUMBLE

G&M - Jonathan Stempel (2022-08-08)

The slide in U.S. stock prices punished Berkshire Hathaway Inc.’s bottom line in the second quarter, as the conglomerate run by billionaire Warren Buffett on Saturday reported a US$43.8-billion loss.


PAYPAL REVEALS $2 BILLION STAKE HELD BY ELLIOTT, ANNOUNCES NEW CFO

G&M (2022-08-08)

The company also announced a slew of moves including appointing Blake Jorgensen as Paypal’s new chief financial officer and a new $15 billion repurchase program. Blake, who takes over the role on Wednesday, joins PayPal from Electronic Arts.


CAN 'GREEN BANKS' BRING CLEAN ENERGY TO THE MASSES? THE U.S. IS BETTING $27B ON IT

G&M - Kanzi Stastna (2022-08-08)

"Green banks" are one way that the Biden administration intends to distribute the billions of dollars that are meant to accelerate the adoption of solar, wind, geothermal and other forms of renewable energy.


CANNABIS GIANT CANOPY GROWTH POSTS $2B QUARTERLY LOSS

CBC (2022-08-08)

Canopy Growth Corp. executives argued the company is advancing toward profitability, even as it booked a $1.72 billion non-cash writedown that contributed to a net loss of more than $2 billion during its most recent quarter.


ECONOMISTS WEIGH IN ON CANADA'S SURPRISE JOB LOSS

Yahoo Finance - Gigi Suhanic (2022-08-08)

“Canada’s labour market is not in disarray,” said National Bank economists Kyle Dahms and Alexandra Ducharme, in their jobs commentary, noting that year-to-date, the private sector has added 110,000 positions. The pair said they continue to see “resilience in the Canadian economy” making them outliers among other big bank analysts.


EUROPE BRACES FOR EXTREME HEAT AS POWER INFRASTRUCTURE WOBBLES

Yahoo Finance - Priscila Azevedo Rocha (2022-08-08)

Extreme heat has already taken its toll on the continent, with France registering the driest July on record and England the driest in almost 90 years, underscoring the impact that a warming climate is having on vital infrastructure. Water levels on the Rhine River, a vital artery for the transport of commodities and industrial goods, are so low that trade is at risk of coming to a halt on some sections of the waterway.


REMOTE WORK IS CAUSING A MASSIVE SHIFT IN SALARIES AROUND THE COUNTRY

Yahoo Finance - Jordan Parker Erb (2022-08-08)

As companies continue to fill remote roles in towns far beyond their headquarters, white-collar salaries nationwide are getting tantalizingly close to those in major tech hubs.


RUSSIA BANS WESTERN INVESTORS FROM SELLING BANKING, KEY ENERGY STAKES

Reuters (2022-08-08)

Western countries and allies, including Japan, have piled financial restrictions on Russia since it sent troops into Ukraine in late February. Moscow retaliated with obstacles for Western businesses and their allies leaving Russia, and in some cases seized their assets.


TURKISH BANKS ARE ADOPTING RUSSIAN PAYMENTS SYSTEM, ERDOGAN SAYS

Bloomberg - Tugce Ozsoy (2022-08-08)

Five Turkish banks have adopted Russia’s Mir payments system, Turkey’s President Recep Tayyip Erdogan said on his return from talks with President Vladimir Putin in the Black Sea resort of Sochi. 


JAPAN LIFE INSURERS DUMP RECORD FOREIGN DEBT IN VOLATILE JULY

Bloomberg - Chikako Mogi (2022-08-08)

Japan’s life insurers and pension funds sold record amounts of foreign bonds in July as heightened volatility in global debt markets damped appetite.


CANACCORD REPORTS FIRST QUARTER NET LOSS

Investment Executive - Daniel Calabretta (2022-08-08)

Canaccord Genuity Group Inc. posted a net loss of $3 million in the latest quarter, compared with a $73.1-million profit a year earlier, the firm said Thursday.


CLIMATE, WAR AND INFLATION JOLT REINSURERS INTO ACTION

FT - Ian Smith (2022-08-08)

Life has not been easy for reinsurers in the past few years.


US BANKS TOUT FOSSIL FUEL CREDENTIALS AFTER REPUBLICAN ESG BACKLASH

FT - Patrick Temple-West and Joshua Franklin (2022-08-08)

In recent years, Wall Street firms have tried to talk up their commitment to the environment and social justice. Now they are singing a different tune.


U.S. CUTS SOFTWOOD TARIFFS BY HALF FOR CANADIAN LUMBER AS TRADE DISPUTE LINGERS

G&M - Brent Jang (2022-08-05)

The U.S. Department of Commerce is lowering tariffs against most Canadian softwood producers by half, but the long-running trade dispute lingers as Canada plans to appeal the decision to maintain punitive duty rates.


WEALTHSIMPLE VALUATION SLASHED NEARLY IN HALF BY LARGEST SHAREHOLDER, POWER-CONTROLLED IGM

G&M - Sean Silcoff (2022-08-05)

The largest shareholder of one of Canada’s most prominent startups, Wealthsimple Technologies Inc., has slashed the valuation of its holding for the second quarter in a row, as technology companies continue to face growing pressure.

IGM Financial Inc., 

IGM-T +0.69%increase    a subsidiary of Power Corp. of Canada,  POW-T +0.64%increase    revealed in its second quarter financial statements released late Thursday that it had cut the valuation of its 24-per-cent stake in Wealthsimple to $492-million as of June 30, a 47-per-cent drop from its $925-million carrying value on March 31. IGM now carries its Wealthsimple stake at 42.6 per cent of its $1.153-billion valuation as of last Dec. 31.


WORLD FOOD PRICES POST BIGGEST DECLINE SINCE 2008 IN JULY

Yahoo Finance - Aine Quinn (2022-08-05)

The UN index fell for a fourth month, offering some relief to consumers facing a deepening cost-of-living crisis that spans everything from energy to transport. Still, prices remain elevated, putting pressure on households while global hunger is worsening.


CHINA WELCOMES US RIVALRY IN AFRICA IF IT BROADENS BENEFITS

Yahoo Finance - Matthew Hill (2022-08-05)

China is Zambia’s biggest bilateral creditor, accounting for almost 75% of the total, and is co-chairing a committee negotiating a debt restructuring after the country became Africa’s first pandemic-era sovereign defaulter in 2020. Relations between the two sides have cooled since President Hakainde Hichilema won power a year ago, as he has forged closer links to nations including the US and the UK.


WHY OUR LOONIE IS LAGGING DURING THE OIL BOOM

FP - Stephanie Hughes (2022-08-05)

Oil outlook in Canada weak.


JAPAN'S GPIF POSTS $28 BILLION FIRST-QUARTER INVESTMENT LOSS ON MARKET TURBULENCE

Reuters - Reuters (2022-08-05)

Japan's Government Pension Investment Fund (GPIF) reported on Friday an investment loss of 3.75 trillion yen ($28.13 billion) for April-June, the second consecutive quarter of negative returns, as economic slowdown fears hit global stock markets.


ALLIANZ SHELLS OUT 140 MILLION EUROS TO SHUT U.S. FUND UNIT AFTER FRAUD

Reuters - Tom Sims (2022-08-05)

Allianz spent around 140 million euros ($143.11 million) on restructuring to wind down a U.S. funds unit at the centre of a multi-billion fraud, the German insurer disclosed on Friday, an expense that added to a worse-than-expected 23% fall in quarterly profit.


EQUIFAX MISREPRESENTED POTENTIALLY MILLIONS OF CREDIT SCORES, LAWSUIT ALLEGES

Reuters - Alessandra Rafferty (2022-08-05)

Equifax has been hit with a lawsuit accusing it of knowingly allowing a glitch in its coding system to result in inaccurate credit scores for potentially millions of consumers.


THE BANK OF EEYORE GRUMBLES THE TRUTH. WHO’S NEXT?

Bloomberg - John Aurthers (2022-08-05)

It’s hard not to think of Eeyore when reading the commentary that the Bank published Thursday, in conjunction with the announcement that it would be raising rates by 50 basis points, the biggest increase since 1995 (and the biggest ever since the BoE gained its independence under Tony Blair and Gordon Brown in 1997). This is what it had to say about future prospects:


CRYPTO COMPANIES ARE SPENDING $2.4 BILLION ON SPORTS SPONSORSHIPS

Bloomberg - Kim Bhasin (2022-08-05)

For fans of professional sports, the insistent overtures from the crypto industry have become almost impossible to miss: The names of exchanges and blockchain companies are emblazoned on team jerseys, plastered on stadiums, and beckoning from halftime TV commercials. They’re talked up by prominent players who enjoy lucrative endorsement deals.


SUN LIFE PROFITS FALL ON DENTAQUEST ACQUISITION, ‘UNFAVOURABLE’ MARKET IMPACTS

Investment Executive (2022-08-05)

The Toronto-based insurance and asset management company says the decrease was due to “unfavourable market-related impacts” as well as its June 1 acquisition of DentaQuest, the second-largest dental benefits provider in the U.S.


TORONTO AND VANCOUVER HOME SALES TUMBLED FURTHER IN JULY AS INTEREST RATES ROSE

G&M - Rachelle Younglai (2022-08-04)

Real estate markets in Toronto and Vancouver tumbled further in July, with sales and home prices declining for another month as getting mortgages becomes more difficult and buyers wait to see how low prices can go.


RECENT SURVEYS SHOW CONFIDENCE SLUMP AMONG CONSUMERS TO EARLY PANDEMIC DEPTHS

G&M - DAVID PARKINSON (2022-08-04)

It’s unclear how quickly the Bank of Canada’s sharp interest-rate increases will have their desired effect of cooling inflation. But they appear to have dampened the mood of consumers and businesses in a hurry.


VANCOUVER HOME SALES TUMBLE, CALGARY'S SLIDE AS RISING RATES AND UNCERTAINTY TAKE TOLL

Yahoo Finance - Stephanie Hughes (2022-08-04)

The number of homes exchanging hands in the Greater Vancouver Area tumbled nearly 23 per cent in July from the month before, with 1,887 units sold. Sales were down 43 per cent from last summer when the Vancouver market was in the midst of a buying frenzy, according to data from the Real Estate Board of Greater Vancouver.


U.S. BANKER BONUSES SET TO SLIDE WHILE TRADERS BENEFIT -STUDY

Yahoo Finance - Lananh Nguyen (2022-08-04)

Payouts for investment bankers who underwrite deals will probably drop 40% to 45% this year, while incentive compensation for those advising on transactions is estimated to fall 20% to 25%, according to compensation consultancy firm Johnson Associates.


GLOBAL SHARES RISE ON OPTIMISM ON ECONOMIC DATA, EARNINGS

Yahoo Finance (2022-08-04)

     


BRITISH LIFE INSURER PHOENIX SEEKS MORE DEALS AFTER SUN LIFE UK BUY

Yahoo Finance - Carolyn Cohn (2022-08-04)

Phoenix has bought closed life insurer Sun Life of Canada's UK unit for 248 million pounds ($301 million) in cash, it said on Thursday and its chief executive said the insurer had more than one billion pounds to spend on similar deals.


BANK OF ENGLAND ON BRINK OF BIGGEST RATE HIKE SINCE 1995

Reuters - William Schomberg (2022-08-04)

Most investors and economists predict the BoE will increase its benchmark rate by half a percentage point to 1.75%, its highest level since late 2008 at the start of the global financial crisis, when it announces its decision at 1100 GMT.


GREATER VANCOUVER REAL ESTATE PRICES JUST MADE THE SECOND BIGGEST MONTHLY DROP EVER

Better Dwelling (2022-08-04)

Greater Vancouver real estate prices made a sharp drop but are still up by a lot. The composite benchmark price of a home fell to $1,207,400 in July, down 2.4% (-$28,500). Prices are still 10.3% (+$112,400) higher than last year. Huge numbers in both directions, so let’s take a quick dive.


CREDIT UNIONS BENEFIT FROM HIGHER RATES, BUT RISKS LOOM

Investment Executive - Rudy Mezzatta (2022-08-04)

As at the end of fiscal 2021, credit union loan books consisted of 55.5% residential mortgages, representing a 14% share of the overall Canadian residential mortgage market. The remainder of the credit union book was made of business and commercial loans (31.7%), consumer loans (6.7%) and agricultural loans (6.0%).


‘PERFECT STORM’ WIPES NEARLY $400BN OFF VALUE OF LARGE US MEDIA GROUPS

FT - Anna Nicolaou (2022-08-04)

The largest US media companies have collectively shed nearly $400bn in market value this year, as recession worries, an advertising slowdown and post-pandemic audience trends ignited a “perfect storm” for Netflix and its peers.


HOME CAPITAL REPORTS SECOND QUARTER 2022 RESULTS

Home Capital (2022-08-04)

Net income of $41.3 million or $0.97 diluted earnings per share in Q2 2022, a decrease of 4.9% from $1.02 per share in Q1 2022 and a decrease of 31.7% from $1.42 per share in Q2 2021.


UK IS CARD FRAUD CAPITAL OF EUROPE

Finextra (2022-08-04)

According to the Crime Survey for England and Wales, between April 2021 and March 2022 there were 2.3 million “bank and card frauds”, comprising 51% of the total recorded frauds committed against residents during the period.


SOARING INFLATION IN UKRAINE DEEPENS ECONOMIC TOLL OF RUSSIA’S INVASION

G&M - PAUL WALDIE (2022-08-03)

The war in Ukraine has driven up prices in Canada and around the world. But spare a thought for people in Ukraine, where inflation is closing in on 30 per cent, interest rates are 25 per cent and around one-third of the work force is unemployed.


TD TO BUY COWEN FOR US$1.3-BILLION, DOUBLING DOWN ON AMBITIOUS U.S. EXPANSION PLANS

G&M - James Bradshaw (2022-08-03)

Toronto-Dominion Bank 

TD-T -0.41%decrease    is acquiring New York-based investment bank Cowen Inc. for US$1.3-billion, speeding up a decade-long plan to make TD’s capital markets division a cross-border competitor and doubling down on a U.S. expansion plan that has kicked into high gear.


U.K. FINANCIAL WATCHDOG SAYS BANKS MUST REFLECT COST OF LIVING CRISIS IN PAY

G&M - Huw Jones (2022-08-03)

Britain’s financial watchdog said on Tuesday that the cost of living crisis, meeting climate targets and improving diversity should be reflected in how banks determine pay and bonuses.


INVESTMENT FIRMS ARE SNAPPING UP U.S. HOMES. IN CANADA, THE TREND IS 'IN ITS INFANCY,' SAYS REMAX BOSS

CBC - Chris Arsenault (2022-08-03)

Investment firms have become the biggest new buyers of U.S. homes — a trend that could make home ownership more difficult for average families.


VOLATILITY HITS MARKETS WITH GEOPOLITICS ADDING TO SET OF RISKS

Yahoo Finance - Cormac Mullen and Emily Graffeo (2022-08-03)

Pelosi became the highest-ranking American politician to visit Taiwan in 25 years, prompting China to announce missile tests and military drills encircling the island. 


BUOYANT Q2 AND NEW TARGETS HELP SOCGEN WEATHER RUSSIA BLOW

Reuters - Julien Ponthus (2022-08-03)

The better-than-expected result, helped by robust retail and investment banking activity, lifted SocGen's shares 4.2% in early trading, the strongest performance in the pan-European banking index (.SX7E).


LLOYD'S OF LONDON'S HISCOX TO PROVIDE INSURANCE FOR UKRAINE GRAIN CORRIDOR

Reuters - Carolyn Cohn (2022-08-03)

Hiscox (HSX.L) is committed to a planned insurance consortium providing cover for ships travelling through a safe passage from Ukraine, its chief executive said on Wednesday, as the Lloyd's of London insurer shares plunged on a first-half loss.


RBC JOINS TD IN BETTING A SOFTER ECONOMY WON’T SPUR DEFAULTS

Bloomberg - Kevin Orland (2022-08-03)

Canada’s two largest banks laid down a vote of confidence that consumers and businesses will keep making loan payments even if inflation and rate increases throw the brakes on the economy.


CREDIT-CARD REWARDS AREN'T FREE. SHOPPERS DON'T CARE.

Bloomberg - Marc Rubinstein (2022-08-03)

The US credit-card market is the oldest and largest in the world. It’s also the least regulated and most expensive. In other countries, policy makers keep card companies in check by setting price caps or by funding public sector alternatives. The result is lower prices. In the US, credit-card fees stand at between 1.3% and 2.7% of transaction value; in Europe, they are as low as 0.3%.


CANADA’S TAX AUTHORITY HAS BEEN ON A MULTI-BILLION DOLLAR REAL ESTATE CRACKDOWN

Better Dwelling (2022-08-03)

Canadian real estate owners are stuck paying a buttload in penalties after trying to avoid taxes owed. New data from the Canada Revenue Agency (CRA) shows their crackdown on real estate owners/sellers has led to billions in recouped revenue. Data provided by the agency also shows they’ve collected substantial fines adding up to hundreds of millions, after diving into real estate transactions. The program is largely focused on Greater Toronto and Vancouver, as a high volume of red flags were being set off. 


RESIDENTIAL SCHOOLS LEFT AN ECONOMIC HOLE THAT PERSISTS ACROSS GENERATIONS

G&M - DAVID PARKINSON (2022-08-02)

In a paper published last year, University of Victoria economics professor Maggie E.C. Jones measured intergenerational damage resulting from attendance at residential schools – in other words, negative outcomes for the children of the people who were shipped off to those institutions.


TIM HORTONS PROPOSES SETTLEMENT IN CLASS-ACTION SUITS OVER DATA-TRACKING APP

G&M - CP (2022-08-02)

Tim Hortons says in court documents it would also permanently delete any geolocation information it may have collected between April 1, 2019 and Sept. 30, 2020, and direct third-party service providers to do the same.


BITCOIN AND ETHER ARE ON TRACK FOR THEIR BEST MONTH SINCE 2021

Yahoo Finance - VILDANA HAJRIC (2022-08-02)

Bitcoin is up 28% in July and Ether 70%, though their rallies paused Friday. Both were little changed, with Bitcoin at about $23,950 as of 5 p.m. in New York and Ether hovering around $1,730.


GOLD HITS FOUR-WEEK HIGH AS PELOSI’S TAIWAN TRIP STIRS TENSIONS

Yahoo Finance (2022-08-02)

Spot gold rose as much as 0.5% to $1,780.53 an ounce, before trading at $1,773.35 by 10:25 a.m in London. Bloomberg Dollar Spot Index rose 0.1%. Silver and palladium declined, while platinum edged higher.


BEWARE OF CHERRY PICKERS: MIXED ECONOMIC DATA MEANS BULLS AND BEARS BOTH HAVE STRONG CASES

FP - Martin Pelletier (2022-08-02)

Overall, it wouldn’t surprise us to see an improvement in inflationary pressures in the months to come as we’re already witnessing a sizable drop in commodity prices. For example, corn, wheat and steel prices are down 30 to 40 per cent from their highs putting them at levels seen before the Russian invasion of Ukraine. At the same time, oil and gasoline prices are also falling, easing pressure on the U.S. consumer. In our opinion, commodity prices did get ahead of themselves to the upside, but perhaps they may have overreacted to the downside as well?


'CALM BEFORE THE STORM': CANADIAN BANKS EXPECTED TO START SHORING UP RESERVES AS CONSUMER CREDIT RISKS BUILD

FP - Stephanie Hughes (2022-08-02)

“Given cycle highs in household leverage and the fastest pace of interest rate increases in over twenty years, we expect provisions for credit losses (PCLs) in the upcoming cycle to match or potentially exceed PCLs during the global financial crisis (GFC),” Veritas investment analyst Nigel D’Souza wrote in a July 26 note to clients.


WOMEN’S WEALTH IS GROWING. WHEN WILL FINANCE CATCH UP?

Bloomberg - Stuart Trow (2022-08-02)

The Women’s Euro 2022 football championship has drawn record crowds, selling out huge stadiums that, until very recently, had been the preserve of men’s games. If there was any lingering doubt about the commercial viability of women’s football, Euro 2022 (which culminated on Sunday with England’s victory over Germany) has shown that, with sufficient engagement, change can happen very quickly.


BARCLAYS SHOWS HOW TO GET OUT OF A BLUNDER

Bloomberg - PAUL J. DAVIES (2022-08-02)

When you make a mistake, it’s best to come clean and fix it as quickly as you can. That’s what Barclays Plc appears to be doing with its embarrassing error selling investment products in the US for which it didn’t have permission. It’s still going to be costly, but if things turn out as the UK bank now expects, then the whole episode could ultimately reflect well on C.S. Venkatakrishnan in his first year as chief executive officer.


TO FIGHT CLIMATE CHANGE, CHANGE YOUR BANK

Bloomberg - Tanja Hester (2022-08-02)

It’s a sweltering summer of cognitive dissonance. The northern hemisphere is experiencing record-setting, even life-threatening, heat waves, droughts and fires; yet more attention has been given to rising gas prices than to measures that would prevent future summers from getting hotter, drier and more flammable. People who want to mitigate the climate crisis are desperate for actions they can take that don’t feel like drops in an increasingly empty bucket. One of the best things the average person can do for the climate: change banks. Responsible investing gets a lot of attention because there’s big money to be made convincing do-gooder investors to buy a new investment product, even though ample evidence shows that ESG and other responsible investing approaches don’t deliver on their promises to drain money from the extraction economy. What doesn’t get enough attention is responsible banking, which has far more potential to force the economy away from fossil fuels, the leading driver of carbon emissions that cause climate change — and to force that change quickly. We haven’t heard much about responsible banking because essentially none of the big banks engage in the practice, and they aren’t eager for customers to know how their money is being used. The oil and gas industry can only operate because of big investments that fund exploration and the creation of infrastructure necessary to keep the oil flowing and coal burning. That funding, which totaled $742 billion in 2021, comes from the world’s biggest banks, according to the Banking on Climate Chaos report, released by a consortium including Sierra Club and Rainforest Action Network. US banks continue to be the single worst grouping, with the top four fossil fuel funders in the world (JPMorgan Chase, Citi, Wells Fargo, and Bank of America) all headquartered in the US, joined by Morgan Stanley and Goldman Sachs in the top 14. Together, these six banks provided 29% of fossil fuel financing identified in 2021. (Royal Bank of Canada, UnionBank, Barclays and Mizuho are right behind them.) While some of the big banks have made commitments to invest in renewable energy and regenerative projects, few have actually divested from fossil fuels or lived up to the pledges they’ve touted, and many have actually increased their funding of oil and gas projects since the Paris Agreement in 2016. Customers don’t seem to have connected the dots that their own money is what’s funding these banks’ investments in fossil fuels. If you bank with one of the big banks, the money sitting in your deposit accounts is available for the banks to use however they wish, and many of them send it to the worst offenders in the climate crisis.


OVER 1 IN 10 OF CANADA’S NON-RESIDENT REAL ESTATE OWNERS HAVE MULTIPLE PROPERTIES

Better Dwelling (2022-08-02)

It might not sound like much to the average person, but it’s a huge number that can have a significant impact on price. Even one-point of excess demand can drive prices higher, as it competes with end-user. Marginal buyers, especially deep pocketed ones, can bid up prices quickly, setting comps. It doesn’t take much, as we’ve explained with money laundering


CANADIAN REAL ESTATE IS WORSE THAN OFFICIAL DATA SHOWS, BMO REVISES FORECAST LOWER

Better Dwelling (2022-08-02)

Canadian real estate markets have seen a surge of listings being pulled and re-listed. An agent might have any number of reasons for delisting and relisting, but it does impact the stats. Homes that are canceled and relisted at a lower price don’t show a price cut or accurate days on market (DOM). It’s apparently a big issue in the Greater Toronto Area (GTA), warns BMO. 


SUSTAINABLE FUND PERFORMANCE SUFFERS AMID HIGH ENERGY PRICES

Investment Executive - Mark Burgess (2022-08-02)

Roughly the same proportion of sustainable allocation funds (78%) underperformed their peer group, and the same was true for about half of sustainable fixed income funds (53%).


CANADIAN ECONOMY AVOIDS CONTRACTION IN MAY, ECONOMISTS EXPECT CONTINUED SLOWDOWN

Investment Executive (2022-08-02)

“We’re expecting growth to slow, but part of the reason for that is because the economy right now is incredibly strong,” Janzen said, noting that the economic recovery from the pandemic was much faster than expected.


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RBC NAMES SITTING BCE CHIEF TO BOARD OF DIRECTORS, EXPANDING EXECUTIVE WEB TYING CANADA’S BANKS AND TELECOMS TOGETHER

G&M - James Bradshaw (2022-08-14)

BCE Inc. chief executive officer Mirko Bibic is joining the board of directors at Royal Bank of Canada, expanding the powerful web of bankers and executives who straddle two of Canada’s largest industries.


CANADIAN HOME PRICES COULD DROP BY 25 PER CENT BY END OF NEXT YEAR, REPORT SAYS

G&M (2022-08-12)

Canada’s average home price could drop by as much as 25 per cent from peak values in February by the end of next year, with the Maritimes and most of Ontario shouldering greater declines owing to the sharp jump in borrowing costs, says a new private-sector forecast.


BROOKFIELD PROFIT FALLS 39 PER CENT AS RATES RISE; CARNEY TO CHAIR ASSET-MANAGER SPINOFF

G&M - David Milstead (2022-08-12)

On Thursday, Brookfield also revealed a few more details of the planned spinoff of its asset-management business, including the appointment of former Bank of Canada governor Mark Carney as chair of the new company, and the spinoff’s new name: Brookfield Asset Management Ltd.


CANADIAN TIRE PROFIT FALLS 30 PER CENT EVEN AS SALES GAIN

G&M - SUSAN KRASHINSKY ROBERTSON (2022-08-12)

Canadian Tire Corp. Ltd. 

CTC-A-T -4.60%decrease    profits fell by more than 30 per cent in the second quarter even amid increased sales, as the company incurred costs related to an operational efficiency program and to pulling its Helly Hansen business out of Russia.