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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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

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

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Research

Real estate report: October 30th, 2020  

fsim.ca/docs/Oct30rereportv1.pdf

Mark Sibthorpe

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


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

fsim.ca/docs/TailscaleReleaseMarch30FINAL.pdf

Press Release

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


2014 FSIM when Bernanke visited Montreal  

fsim.ca/docs/MockBernanke.pdf

Mark Sibthorpe

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


Eisman's big Canadian bank short  

fsim.ca/docs/eisman2.pdf

Mark Sibthorpe

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


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

fsim.ca/docs/VBCortelMortFinanceAppFeb62020.pdf

Press Release

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


How and why you need to defend your brand against disruptors  

Mark Sibthorpe

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


Kick the can(nomics)  

fsim.ca/docs/Kick.pdf

Mark Sibthorpe

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


ScoreCard Bill Morneau, Canada's Minister of Finance  

fsim.ca/docs/ScoreCardMorneau.pdf

Mark Sibthorpe

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

 


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

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

Mark Sibthorpe

 


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

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

 

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

 

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

 


Update Argentina: a sign of the times  

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

Mark Sibthorpe

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


Summary of Canada's flood news, 2017 to present  

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

Mark Sibthorpe

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


Banking on Pot  

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

SBS

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


Canadian banking industry overview  

Mark Sibthorpe

The industry overview is divided into 5 parts:

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


2014 Mobile payments the Apple pay way  

fsim.ca/docs/Mobile_Payments_Apple_Pay_2014.pdf

Mark Sibthorpe

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


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

Mark Sibthorpe

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


TD bank industry conduct  

fsim.ca/docs/tdind2.pdf

Mark Sibthorpe

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


Book review: Back from the Brink  

fsim.ca/docs/backbrink.pdf

Mark Sibthorpe

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


Footnote 151  

fsim.ca/docs/footnote151.pdf

Mark Sibthorpe

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


Save the Canadian economy now  

fsim.ca/docs/helecopter-money.pdf

Mark Sibthorpe

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


Reasons financial service companies should consider gamification  

fsim.ca/docs/Gamfin.pdf

Mark Sibthorpe

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


National Bank Special Report  

fsim.ca/docs/NatBSpec.pdf

Mark Sibthorpe

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


Will Canadian banks charge companies for deposits?  

fsim.ca/docs/depgrowthimpact2.pdf

Mark Sibthorpe

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


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

fsim.ca/docs/ctfsfinal.pdf

Mark Sibthorpe

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


Finance minisiter scorecard August 26, 2015  

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

Mark Sibthorpe

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


Xtreme Branch  

fsim.ca/docs/xbranch.pdf

Mark Sibthorpe

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


Canadian Nudge  

fsim.ca/docs/nudge.pdf

Mark Sibthorpe

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


CWB cause for concern  

fsim.ca/docs/cwbupdate.pdf

Mark Sibthorpe

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


BNTV Overview  

fsim.ca/docs/overviewpdf.pdf

BNTV

BankNews.TV Publishing Corp services overview document:

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


Challenger banks not a threat to big banks  

fsim.ca/docs/challenger.pdf

Mark Sibthorpe

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


Gamification of financial data project  

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

Mark Sibthorpe

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


The impact a rate rise will have for Canadian banks  

fsim.ca/docs/irr-f.pdf

Mark Sibthorpe

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

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


FIFA: the new goldenballs  

fsim.ca/docs/goldenballs.pdf

Mark Sibthorpe

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


Scorecard Minister of Finance: JIm Flaherty  

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

Mark Sibthorpe

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


Sample RFP for a Loyalty Program  

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

Mark Sibthorpe


Merchants extend financial services  

fsim.ca/docs/merchantfs.pdf

Mark Sibthorpe

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


Hot Money: real-estate  

fsim.ca/docs/hotmoney.pdf

Mark Sibthorpe

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


Currency Cheat Sheet: a guide for the rest of us  

fsim.ca/docs/currencycheatsheet.pdf

Mark Sibthorpe

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


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

fsim.ca/docs/gq4risk.pdf

Mark Sibthorpe

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


Canadian Western Bank Competitive Forecast  

fsim.ca/docs/cwbf.pdf

Mark Sibthorpe

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


Liquid Canada: the tipping point  

fsim.ca/docs/Liquid.pdf

Mark Sibthorpe

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


Bank Fees  

fsim.ca/docs/Bank fees.pdf

Mark Sibthorpe

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


Cheap Oil Report  

fsim.ca/docs/co2.pdf

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


Canada's Economy, a strategic solution  

fsim.ca/docs/ces.pdf

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


Complete loyalty RFP  

fsim.ca/docs/booksample.pdf

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


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

fsim.ca/docs/booksample.pdf

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


Report on merchants extending financial services  

fsim.ca/docs/

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


Guide to system selection  

fsim.ca/docs/gssnow.pdf

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


News feed

BANKERS FLEE WALL STREET, HEAD HOME TO VIRUS-FREE AUSTRALIA

Bloomberg - Nabila Ahmed (2021-07-17)

For a fresh perspective on the stories that matter for Australian business and politics, sign up for our weekly newsletter.


THE HOUSING BOOM THAT NEVER ENDS ALREADY WIPED OUT ALL THE SHORT-SELLERS

Bloomberg - Ari Altstedter and Kevin Orland (2021-06-15)

Normally this kind of quick-buck speculation would be interpreted by economists, policy makers and finance types as the indisputable sign of a housing bubble. But Moore has been a professional house flipper in the Toronto area for more than a decade now, during which a seemingly endless line of illustrious doomsayers have taken the other side of his bet on real estate in word and deed, only to be proven wrong.

One of the earliest was Mark Carney, then Canada’s central bank governor but soon to take over the Bank of England, who called the country’s reliance on housing wealth “ unsustainable” back in 2012. Then came the wave of American financiers, one after the other, whose collective bet on a Canadian housing crash got its own nickname, “The Great White Short.” Many of them, like Steve Eisman of The Big Short fame, applied the lessons they had learned in the bursting of the U.S. housing bubble years earlier.


SOFTBANK'S PAYPAY SURGES AHEAD IN JAPAN'S DIGITAL PAYMENTS RACE

Reuters - Sam Nussey (2021-06-11)

For six decades, shoppers at Mikawaya, a rice dealer in eastern Tokyo, paid in cash - until sales staff from payments app PayPay swept through the low-lying district, persuading the store to give their product a try.


IMF SEES LEGAL, ECONOMIC ISSUES WITH EL SALVADOR'S BITCOIN MOVE

Reuters - Rodrigo CamposKarin Strohecker (2021-06-11)

The International Monetary Fund said on Thursday it has economic and legal concerns regarding the move by El Salvador to make bitcoin a parallel legal tender, further clouding the outlook for an IMF-backed program and widening spreads on the country's bonds.


ECB TELLS DEUTSCHE BANK TO FIND NEW CHAIRMAN FAST - SOURCES

Reuters - Tom Sims, Patricia Uhlig (2021-06-11)

In a major setback for Deutsche, Germany's financial watchdog BaFin in April ordered it to enact further money laundering safeguards and extended a mandate for a special monitor to keep track of progress.


BANK RULES PUSH BITCOIN, NOT BLOCKCHAIN, TO FRINGE

Reuters - Liam Proud (2021-06-11)

The Basel Committee on Banking Supervision has weighed in on cryptocurrencies. Punitive new proposals from the standard-setting body may ensure bitcoin remains in the fringes of regulated finance. Yet safer areas of the blockchain and crypto world are still accessible to JPMorgan (JPM.N), HSBC (HSBA.L) and others. It’s a good balance between prudence and progress.


WESTONS CONSIDER $5.7 BILLION SELFRIDGES SALE AFTER APPROACH

Bloomberg - Deirdre Hipwell (2021-06-11)

The billionaire dynasty behind Selfridges & Co. is considering a 4 billion-pound ($5.66 billion) sale of the British department store group following an approach from a potential buyer.


BMO SIGNS DEAL WITH AMAZON WEB SERVICES TO HELP DIGITAL SHIFT

Bloomberg - Kevin Orland (2021-06-11)

Big Canadian banks have been adopting more digital services after the pandemic shut down or reduced capacity at their physical locations. The Amazon deal will help Bank of Montreal make its own operations more efficient, enabling it to convert customer-service conversations into text transcripts, digitize certain documents and more easily calculate the market and credit risks in its lending portfolio, said Victor Tung, the lender’s U.S. chief technology and operations officer.


CANADIAN SCHOOLS WILL START TEACHING 14 YEAR OLD KIDS HOW TO APPLY FOR MORTGAGES

Better Dwelling - Stephen Punwasi (2021-06-11)

Minister Lecce, who has been criticized for his cozy ties to the real estate industry, gave Ontario a taste of his financial literacy focus for math. Explaining the province will be focusing on teaching students how they fit into the economy, he rattled off some examples. The focus will be “… debt, savings, how to use a credit card, [and] how to take out a mortgage or rent,” he said. 


CANADIAN REAL ESTATE MARKETS WILL COOL, BUT DON’T RULE OUT A CORRECTION: DESJARDINS

Better Dwelling - Daniel Wong (2021-06-11)

One reason they expect the market to cool, and at least stabilize, is affordability. Low interest rates expanded budgets, allowing many to easily absorb higher prices. Then prices moved even higher on the exuberance sparked by the rush of buyers. Homes are now at valuations that are difficult for the vast majority to buy. Even the majority of current homeowners would have difficulty if they bought today.


MORTGAGE INTEREST BURDEN LIGHTENS IN SPITE OF SOARING UK HOUSE PRICES

FT - James Pickford (2021-06-11)

In its recent credit report for April, the Bank said average mortgage interest rates had fallen to their lowest level on record, at 2.07 per cent. By comparison, average rates in October 2008 were 5.82 per cent.  The total stock of outstanding mortgage debt (excluding that accounted for by housing associations) has risen from £1.47tn to £1.52tn in the 12 months to April. House prices, meanwhile, rose by an annualised 9.5 per cent in May, according to last week’s Halifax index — its highest level in nearly seven years.   


CRYPTO RANKED AS RISKIEST BUSINESS

FT - Chris Nuttal (2021-06-11)

“The growth of crypto assets and related services has the potential to raise financial stability concerns and increase risks faced by banks,” it warned, citing market and credit risk, fraud, hacking, money laundering and terrorist financing risk. It proposed a risk weight of 1,250 per cent, in line with the toughest standards for banks’ exposures on riskier assets.


BRUISED BUT UNBOWED: MEME STOCK INVESTORS ARE BACK FOR MORE

Investment Executive - Stan Choe (2021-06-11)

These undaunted investors have resuscitated GameStop shares back above $300, up from $40 in February after plunging from a peak of $347. They’re also hauling new stocks onto the bandwagon they say is heading for the moon, including the lesser-known health insurance company Clover Health Investments.


OSFI LIFE RISK MANAGEMENT SEMINAR

OSFI - OSFI (2021-06-10)

Updates on OFRS 17 / LICAT / Climate & Tech + cyber risk.


ONTARIO JUDGE DISMISSES LAWSUIT AGAINST TD BANK OVER ROLE IN PONZI SCHEME

G&M - James Bradshaw (2021-06-10)

“Hindsight is 20/20,” she wrote. “While we now know that Mr. Stanford was a fraudster who operated a Ponzi scheme, TD Bank did not know or have any reason to suspect that he was engaged in fraudulent behaviour at the time.”


BANK OF CANADA KEEPS IGNORING THE RAGING CANADIAN DOLLAR - WHICH MIGHT BE THE BEST STRATEGY

G&M - G&M (2021-06-10)

The Bank of Canada seems pretty intent on ignoring, as much as possible, the raging Canadian dollar. In most instances, that would be a bad idea. In the current circumstances, it may be good policy.


CI FINANCIAL NAMES NEW HEAD OF INVESTMENT MANAGEMENT

G&M - Clare O'Hara (2021-06-10)

Mr. Lewis, who begins his role on Sept. 1, will join CI Global Asset Management (GAM) from the Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, where he was head of portfolio construction. Mr. Lewis will be relocating from Abu Dhabi to Toronto for the position.


BITCOIN RANSOM RECOUP IS ANOTHER SIGN THE CRYPTOCURRENCY ISN’T ALL IT’S CRACKED UP TO BE

G&M - Ian McGugan (2021-06-10)

There is something faintly humorous about bitcoin’s attempts to position itself as an upright citizen of the monetary world.


MANY OF THE U.S. UBER-RICH PAY NEXT TO NO INCOME TAX, PROPUBLICA REPORTS

CBC - AP (2021-06-10)

Overall, the richest 25 Americans pay less in tax — an average of 15.8 per cent of adjusted gross income — than many ordinary workers do, once you include taxes for Social Security and Medicare, ProPublica found. Its findings are likely to heighten a national debate over the vast and widening inequality between the very wealthiest Americans and everyone else.


WE IN HOT WATER AGAIN — THIS TIME WITH THE CRA OVER DONATION RECEIPTS

FP - Allan Lanthier (2021-06-10)

The WE Charity is in hot water again, this time with the Canada Revenue Agency (CRA), which has levied penalties against it for improperly issuing donation receipts of $1.8 million. The charity has filed an appeal with the tax court and a trial date must now be scheduled.


BRIDGING FINANCE'S COURT-APPOINTED RECEIVER SAYS 'SIGNIFICANT NUMBER' OF EMAILS INTENTIONALLY DELETED

FP - Barbara Shecter (2021-06-10)

In addition, the investigators alleged BFI funds had been mismanaged, with “material” conflicts of interest not disclosed, that securities laws had been breached, and that OSC enforcement staff had been misled.


CHINA'S TOP BANKING REGULATOR WARNS OF BAD DEBT, LOCAL REAL ESTATE BUBBLES

Reuters - Reuters (2021-06-10)

China's top banking and insurance regulator said banks should guard against a rise in non-performing assets, as the country rolls back some of the relief measures implemented during the pandemic to help firms withstand the fallout.


CHINA ARRESTS OVER 1,100 SUSPECTS IN CRACKDOWN ON CRYPTO-RELATED MONEY LAUNDERING

Reuters - Reuters (2021-06-10)

Police in China arrested over 1,100 people suspected of using cryptocurrencies to launder illegal proceeds from telephone and Internet scams in a recent crackdown, the Ministry of Public Security said.


BREXIT BRITAIN’S BANK TAX PUSHBACK IS A BAD LOOK

Bloomberg - Lionel Laurent (2021-06-10)

When the Biden administration took the unprecedented step earlier this year of floating a global minimum business tax rate of 21%, U.K. Chancellor of the Exchequer Rishi Sunak and his team took a dim view. The Brits saw the rate as too high — despite Sunak’s own plans to lift U.K. corporation tax to 25% — and not geared toward getting tech firms such as Amazon.com Inc. to pay their fair share around the world.


BOND FRONT-RUNNERS DON'T CARE ABOUT INFLATION

Bloomberg - John Aurthers (2021-06-10)

A second point, Colvin says, is that the bond market tends to react to the most cyclical parts of the economy, and some “mini-cycles” are already showing signs of slowing after a sudden rise. All of these factors are linked. As investors bet on inflation, they leave bonds, cause their yields to rise, and hence raise the cost of mortgages — which will have an effect on the “mini-cycle” of the housing market. In the first three months of this year, the yield on the Fannie Mae benchmark mortgage bond rose from 1.35 to 2.1%, and the growth in housing starts evened off after a sharp increase at the end of last year. 


CANADA’S PROPERTY BUBBLE PUSHED ONTARIO PRICES TO GROW OVER 30% IN ALL BUT 3 MARKETS

Better Dwelling - Daniel Wong (2021-06-10)

The 3 markets with the lowest price growth also happen to be the most expensive in the province. Oakville ($1,342,300), Mississauga ($1,077,700), and Toronto ($1,025,200) are the three most expensive markets. Those markets saw the composite price make an increase of at least 17.8% though. The low growth had to do with high prices, not due to low demand.


NEW BOOK DIVES INTO CANADIAN REAL ESTATE, GANGS, LAUNDERING, AND CORRUPT OFFICIALS

Better Dwelling - Stephen Punwasi (2021-06-10)

One chapter in particular highlights why the issue became so public recently. Triads, transnational criminal gangs, and Chinese Intelligence exploited the country’s biggest vulnerability. “… they moved into real estate and finance, Canada’s soft spot for economic infiltration.” says Cooper. 


LAWMAKERS AREN’T READY TO RUBBER-STAMP FED DIGITAL DOLLAR

American Banker - Hannah Lang (2021-06-10)

The Federal Reserve has indicated it would need congressional help if the central bank moves ahead with a plan to create a digital dollar. But lawmakers aren't yet ready to give their stamp of approval.
At a hearing Wednesday, Senate Banking Committee members raised questions about how a Fed-designed digital currency would be structured, how it would complement the private sector and whether a digital dollar is even necessary, among other concerns.


WAVE OF BANKRUPTCIES COMING, WARNS CHAMBER OF COMMERCE

G&M - Mark Rendell (2021-06-10)

The Canadian Chamber of Commerce is warning there could be a wave of bankruptcies among heavily indebted companies in the tourism, travel and hospitality sectors after government support programs wind down in the coming months.


LATEST POWER CORP. FINTECH PROTéGé NESTO RAISES $76-MILLION IN VENTURE CAPITAL

G&M - Sean Silcoff (2021-06-10)

Another startup from Power Corp.’s 

POW-T -0.45%decrease    stable of disruptive financial-technology investments has landed a significant venture capital financing.


CROSS-BORDER INTEROPERABILITY WILL BE A KEY TEST FOR CBDCS, BIS AND BOE SPECIALISTS WARN

Bobsguide - Jeremy Chan (2021-06-10)

As the UK joins the list of global players considering issuing central bank digital currencies (CBDC), with the Bank of England taking practical steps to explore possible costs and benefits earlier this week, one crucial hurdle lies in the level of transnational utilisation they’d be able to guarantee, a Bank for International Settlements (BIS) advisor and a senior Bank of England specialist said.


REAL ESTATE PRICES EXPECTED TO SHARPLY INCREASE THIS YEAR, RBC SAYS POLICY CHANGES HAVE DONE LITTLE TO COOL MARKET

G&M - Rachelle Younglai (2021-06-09)

The bank now expects home resales to climb 16 per cent this year, to 636,700 units, and predicts the RPS House Price Index, which measures appraised values, will jump 13 per cent, to $697,400. The bank’s previous forecast had home resales increasing 6.5 per cent and prices rising 8 per cent.


BANK OF CANADA UNDERSHOOTS BOND PURCHASING TARGET, POSSIBLY SIGNALLING SCARCITY IN SUPPLY

G&M - Mark Rendell, David Parkinson (2021-06-09)

The Bank of Canada has undershot its $3-billion weekly target for government bond purchases in each of the past two weeks, saying that it has “operational flexibility” in managing the new, reduced size for its quantitative easing program that it put in place in late April.


TD BANK’S HEAD OF PRIVATE WEALTH AND FINANCIAL PLANNING DEPARTS

G&M - CLARE O’HARA AND TIM KILADZE (2021-06-09)

Dave Kelly, TD Wealth’s head of private wealth management and financial planning, is stepping down after 14 years at the bank, effective on Monday, “to pursue his entrepreneurial ambitions,” according to an internal memo obtained by The Globe and Mail. Mr. Kelly will stay on as a special adviser to Leo Salom, TD’s head of wealth and insurance, through the end of September.


BANKS FIND WAYS AROUND MORTGAGE STRESS TEST

FP - Larysa Harapyn (2021-06-09)

Leah Zlatkin, LowestRates.ca expert and Principal broker at Brite Mortgage speaks to Financial Post’s Larysa Harapyn about the mortgage stress test that came into effect June 1.


LME TO REOPEN ICONIC TRADING FLOOR, BUT SAYS ELECTRONIC TRADING IS FUTURE

Reuters - ratima DesaiEric Onstad (2021-06-09)

The London Metal Exchange has abandoned proposals to close its open outcry trading floor, the last such venue in Europe, it said on Tuesday, but added it believes electronic trading is the future.


SPAIN'S BBVA TO CUT 2,935 JOBS, CLOSE 480 BRANCHES

Reuters - Jesus Aguado (2021-06-09)

"The adjustment plan is necessary to ensure the competitiveness and sustainability of future employment in the entity given the current context of profound transformation of the financial sector," BBVA said in a statement.


BANK OF ENGLAND LAUNCHES CLIMATE STRESS TEST FOR BANKS AND INSURERS

Reuters - Huw Jones (2021-06-09)

The Bank of England on Tuesday set out its first comprehensive stress test of the ability of the British financial system to cope with climate change, saying the results will not be used to determine capital requirements for now.


EU CAUTIONS AGAINST RUSHING INTO BLOC-WIDE PANDEMIC INSURANCE

Reuters - Reuters (2021-06-09)

The European Union's executive body urged caution on Tuesday in the face of calls for a public-private scheme for insuring companies against economic lockdowns in future pandemics.


INVESTORS SEEK CLUES ON BANK OF CANADA’S NEXT TAPER: DECISION GUIDE

Bloomberg - Shelly Hagan (2021-06-09)

Investors will be looking for fresh hints from the Bank of Canada this week on its next move to reduce emergency levels of monetary stimulus.


BANKERS IN TORONTO DODGE WALL STREET’S RETURN-TO-OFFICE PRESSURE

Bloomberg - Kevin Orland and Sandrine Rastello (2021-06-09)

As Manhattan slowly springs to life again, with Wall Street’s biggest firms pushing traders and bankers back into the office, the scene some 350 miles to the northwest, where North America’s No. 2 financial center lies, is vastly different.


SOVEREIGN DEFAULTS HIT RECORD LEVEL IN 2020: FITCH

Investment Executive - James Langton (2021-06-09)

Additionally, Fitch downgraded 32 sovereigns in 2020, and made only two upgrades.


US FINANCIAL REGULATOR WARNS AGAINST STRICT CRYPTOCURRENCY RULES

FT - Kiran Stacey (2021-06-09)

A senior US financial regulator has spoken out against attempts by her colleagues to regulate cryptocurrencies more strictly, warning that doing so runs the risk of discouraging investors. Hester Peirce, one of two Republicans among the five commissioners at the Securities and Exchange Commission, told the Financial Times she was worried about the push by several US regulators to play a more active role in the $1.5tn cryptocurrency market. Her comments expose a split at the top of the SEC just as Gary Gensler, its chair, spearheads an effort to bring the fast-growing cryptocurrency market more in line with other types of financial assets.


PARIS AND BERLIN LEAD FIGHT TO DILUTE BRUSSELS’ STRICTER BANK CAPITAL RULES

FT - Sam Fleming, Martin Arnold (2021-06-09)

Jörg Kukies, deputy finance minister of Germany, told the Financial Times that the Franco-German proposal was “a pragmatic way of ensuring a truthful and compliant Basel implementation on the one hand and respecting the political mandate of [the EU’s economic and financial affairs council] and G20 for no significant increase in capital requirements as well”.


LIGHTSPEED POS ‘HEADING DIRECTLY FOR SHOPIFY’ WITH LATEST ACQUISITION SPREE

G&M - Sean Silcoff (2021-06-08)

The acquisitive Montreal-based Lightspeed said it would pay US$500-million for Ecwid Inc., a San Diego-based e-commerce platform with more than 130,000 paying customers. Lightspeed is also paying US$425-million for Los Angeles-based NuORDER Inc., which provides an online platform for 100,000 retailers to automate wholesale product ordering from more than 3,000 brands. It processed more than US$11-billion in orders over the past year.


TD INVESTMENT BANKERS DEPART AMID CULTURE ISSUES ON THE DIVERSIFIED INDUSTRIES TEAM

G&M - Jaren Kerr, James Bradshaw (2021-06-08)

Three sources with knowledge of the departures said that culture issues arose from DIG leadership pushing some team members to their limits during the pandemic, when capital markets often ran hot with deals and financings. The Globe is not identifying the sources because they are not authorized to speak on the matter.


BANK OF CANADA EXPECTED TO STAND PAT ON RATES, BOND BUYING

G&M - Mark Rendell (2021-06-08)

The Bank of Canada is expected to hold the line on monetary policy this week, weighing progress on vaccinations and rising consumer prices against weak economic data from the latest round of lockdowns.


THE FUTURE OF MONEY: THE DIGITAL CURRENCY REVOLUTION IS HERE, AND MAY SWEEP AWAY 5,000 YEARS OF MONETARY HISTORY

G&M - Michael Doyle (2021-06-08)

For several hundred years, the people living on the Pacific island of Yap used giant rocks as a basic form of money. The most valuable of these massive limestone rings, called rai stones, weighed several thousand kilograms. As a result, they weren’t easily exchanged when an item was bought or sold. Boulders that were too big to roll from one owner to the next were left in a permanent resting place.


PAYPAL REFUND WOES, SOFA STICKER SHOCK: CBC'S MARKETPLACE CHEAT SHEET

CBC - CBC (2021-06-08)

When Sean Ralph bought a portable camp chair after seeing an ad on Facebook earlier this year, he felt comforted knowing the purchase would be protected by PayPal.


CANADA IS BUYING TOO MUCH HOUSE

FP - Kevin Carmichael (2021-06-08)

Total hours is an aggregate number. It says a lot about how fast the economic machine is running, but it necessarily obscures a lot of detail. Freeland and her officials at the Finance Department also want to know the details. She wants to make sure that no one is being left behind. That’s why one of her “guardrails” is also long-term unemployment, which has spiked to levels last seen in the first half of the 1990s. Evidence shows that the longer people spend on the sidelines of the economy, the harder it is to get back in. Economists call it “scarring.” Freeland has pledged to spend heavily so the economy heals before such scars become permanent.
Tiff Macklem completed the first year of his seven-year term on June 3. A year earlier, he oversaw the release of an interest-rate decision on which he played no official part. Last week, he would have been huddled with his deputies, deciding whether their current interest-rate stance needed tweaking ahead of a scheduled update on June 9. Hopefully someone at the central bank thought to mark the occasion. If they didn’t, Macklem still probably went home satisfied on Friday, as a big week of economic data supported his decision to look past the recent spike in inflation and let the economy run hot.


'ZOMBIE' COMPANIES LIKELY TO KEEP COMMERCIAL INSURANCE RATES RISING -SWISS RE

Reuters - Alwyn Scott (2021-06-08)

The expectation that hundreds of so-called zombie companies will fail over the next few years and drag on the economy is among the major concerns prompting insurers to reduce risk and charge higher premiums, a trend likely to continue as failures increase, Swiss Re AG (SRENH.S) said on Tuesday.


COLONIAL HACKERS BROKE THE FUNDAMENTAL BITCOIN RULE

Bloomberg - Tim Culpan (2021-06-08)

When kidnappers ask for a ransom, they’d be wise to have a plan to store the loot securely. Cybercriminals aren’t exempt.

   


MARK CUBAN-BACKED PERSONAL FINANCE APP DAVE TO GO PUBLIC IN $4 BILLION SPAC DEAL

WSJ - Micah Maidenberg (2021-06-08)

A special-purpose acquisition company sponsored by Victory Park Capital has agreed to merge with banking app Dave, allowing the financial startup to begin operating as a public company.


TIMBERRR! LUMBER PRICES ARE CRASHING AT 30% BELOW PEAK, AND FORECAST TO FALL FURTHER

Better Dwelling - Daniel Wong (2021-06-08)

North American lumber prices are rapidly collapsing, as the market abruptly changes. The price fell to US$1,221/mbf today, down 4.91% from the close on Friday. Prices are now down 26.88% from a month ago, which means prices are dropping about as fast as they increased. Lumber, being a popular input cost, was pushing the price of many goods higher. A little relief has arrived, but prices have a long way to go to unwind the pandemic squeeze.


CANADA FUNNELS THE LARGEST SHARE OF INVESTMENT INTO HOUSING IN THE OECD

Better Dwelling - Stephen Punwasi (2021-06-08)

Canadian Housing Is Consuming 37% Of Investment Capital


AIR CANADA’S SENIOR EXECUTIVES TO RETURN 2020 BONUSES OVER ‘PUBLIC DISAPPOINTMENT’

G&M - David Milstead (2021-06-07)

Air Canada scrapped its bonus plan during the COVID-19 pandemic and replaced It with a new plan that paid $10-million in “COVID-19 Pandemic Mitigation Bonuses” earlier this year. It also gave out special share-appreciation units at the end of 2020 that were designed to compensate executives and management for salary cuts the airline announced publicly during the pandemic.


RELAUNCH OF HBC REWARDS CREDIT CARD MEETS RESISTANCE FROM WARY CUSTOMERS

G&M - JAMES BRADSHAW AND SUSAN KRASHINSKY ROBERTSON (2021-06-07)

When Tracey Hamilton received word that her Hudson’s Bay credit card would be discontinued as the retailer switched to new provider Neo Financial, she went online to see about getting a new card.


MONEY FOR LIFE: THE PROS AND CONS OF THE PURPOSE LONGEVITY PENSION FUND

G&M - Ian McGugan (2021-06-07)

The catch? The new Purpose Longevity Pension Fund, from Purpose Investments Inc. in Toronto, also demands that investors deal with a novel (and sometimes sticky) structure and accept some fundamental uncertainties.


CLIMATE LOOMS LARGE FOR INCOMING HEAD OF OSFI

G&M - Jeffrey Jones (2021-06-07)

Canada will soon have a new top financial watchdog and the successful candidate will be more of a climate cop than ever before.


WHY CENTRAL BANKS WILL CRUSH BITCOIN

G&M - Barry Campbell (2021-06-07)

A bit of history is the best guide to what is about to happen to private digital currencies such as bitcoin. No, it’s not the tempting comparison to bursting asset bubbles, but the history of the demise of private paper money.


MAJOR G7 TAX AGREEMENT ONLY FIRST STEP TOWARD GLOBAL DEAL: FREELAND

CBC - Christian Paas-Lang (2021-06-07)

Finance Minister Chrystia Freeland said Saturday an agreement made by Group of Seven (G7) countries on taxing multinational companies and setting a global minimum corporate tax rate was just a first step toward a global deal.


WHY INVESTORS SHOULD FOCUS ON GENERATING THE BEST TOTAL RETURN, NOT THE BEST YIELD

FP - Tom Bradley (2021-06-07)

To simplify things a little, many Canadians have focused on investing in dividend stocks. Quarterly dividends are a neat and tidy way to replenish bank accounts, and we have some great blue-chip companies that provide a growing and tax-efficient income flow. These stocks have benefited from a growing economy, declining interest rates and rising stock markets.


CHRYSTIA FREELAND HAS THE BLUEPRINT TO REVOLUTIONIZE CANADIAN BANKING — SO LET'S USE IT

FP - Kevin Carmichael (2021-06-07)

The policy is known as “open banking” and it could provide a competitive shock to a banking system whose idea of competition is engaging in price wars over the issuance of government-backed mortgages. The review has been so slow in coming to what many say are foregone conclusions that some have wondered if the big banks are doing their best to stand in the way of progress. Whatever the reason for the slow going, any delay from this point on will have everything to do with Freeland herself, as she now has all the information and context that she needs.


THE INCONVENIENT TRUTHS INVESTORS ARE IGNORING ABOUT THE ECONOMIC RECOVERY

FP - David Rosenberg (2021-06-07)

First, when you look at the Fed’s full-year GDP forecast and then trace out the consensus view on second and third quarter growth sequentially, it seems to me that the Fed is anywhere from zero per cent to two per cent for Q4, and there isn’t a chance it moves with a growth relapse of that degree. The consensus is five-per-cent growth for Q4, so this is where the sweet spot is going to be for downward revisions, if not before.
Second, when it comes to “transitory,” the Fed is talking years, not quarters or months and the bond vigilantes haven’t figured that out yet. It’s going to take a long time for the Fed to sift through all the noise in the data, and definitely not till we are past September, to see the extent to which the fiscal withdrawal influences domestic demand and, of course, the extent to which we see a rising labour force participation rate and an easing in the supply pressures we’re seeing in the labour market, which remains heavily distorted by the emergency jobless benefits.
Third, the initial jobless claims hold a lot of clues over Fed policy and, while they are clearly improving, we have to keep in mind that, at 458,000 for the four-week moving average, we are at a level that in the past was more than three years away from the Fed making any shift. We are at the same level we were at in September 2010, April 2002 and May 1991, and each time the markets had it wrong that the Fed was just months away from shifting course. I don’t think it’s going to be different this time, especially for this Fed, which I sense will be very patient.
This economy is already starting to show signs of fatigue even earlier than I had thought and, again, a great opportunity to bet against the pro-cyclical view. I already see the fast money doing that, because the latest Commitments of Traders report shows that the net speculative long positions in copper have shrunk for three weeks in a row and are down 38 per cent from the mid-February peak — actually the lowest bullish positioning since August 2020. And look at lumber on the Chicago Merc: net short now for each of the past two weeks. We haven’t seen this since the second half of May 2020.


BOE SAYS 'STABLECOIN' PAYMENTS NEED SAME REGULATION AS BANKS

Reuters - David MillikenTom Wilson (2021-06-07)

The Bank of England said on Monday that payments with 'stablecoins' - a form of crypto-currency usually pegged to a traditional currency - should be regulated in the same way as payments handled by banks if they start to become widely used.


BANKS BULK UP IN HONG KONG AS CHINA BUSINESS OVERSHADOWS POLITICS

Reuters - Kane WuScott MurdochAlun John (2021-06-07)

Some global banks, funds and other financial services providers say they are stepping up hiring in Hong Kong, in a sign the city's unique position as a financial gateway to China is outweighing concerns about Beijing's tightening grip over it.


ANT TO CHANGE HOW IT MAKES LOANS WITH NEW CONSUMER-FINANCE COMPANY

WSJ - Jing Yang (2021-06-07)

China’s banking and insurance regulator said Thursday that it had approved an application by Ant Group Co. to set up a consumer-finance company, the first milestone in the financial-technology giant’s restructuring.


SEC REMOVES CHAIRMAN OF AUDIT WATCHDOG

WSJ - Mark Maurer (2021-06-07)

The PCAOB regulates the audits of publicly traded companies. Congress established it with the Sarbanes-Oxley Act of 2002 following accounting scandals at Enron Corp. and other now-defunct firms. Mr. Duhnke was sworn in as PCAOB chairman in January 2018 under then-President Donald Trump.

The SEC’s new Democratic chairman, Gary Gensler, took control in April. A former banker and regulator, he is expected to be tougher on companies and look to increase investor protections and reporting requirements, for example around disclosures about environmental, social and governance issues.


‘A FINANCIAL BOMBSHELL’: CANADIAN FURNITURE RETAILERS MAKE APPEAL TO OVERTURN DUTIES ON IMPORTS FROM CHINA AND VIETNAM

G&M - SUSAN KRASHINSKY ROBERTSON (2021-06-07)

The reason is a new set of tariffs imposed by the Canada Border Services Agency on May 5 on some upholstered furniture from China and Vietnam. The move followed an investigation into allegations of “dumping” – or exporting goods to Canada at cheaper prices than in the seller’s own country. The CBSA’s preliminary determination meant that items from China were now subject to provisional duties as high as 296 per cent, while products from Vietnam faced charges as high as 101 per cent.


FEAR OF MISSING OUT FUELS JUMP IN NEW CONDO SALES IN MAJOR CANADIAN CITIES

G&M - Rachelle Younglai (2021-06-04)

After a year in which buyers shunned tiny condos in favour of roomier houses in smaller cities, new data show that new condo sales are steadily climbing in the large urban centres. These are condos that have either yet to break ground or are under construction, and sales for these projects are often viewed as a bet on the future because buyers wait several years for their units to be built.


2021 VS. 1992: I COULDN’T AFFORD MY TORONTO HOUSE IF I HAD TO BUY IN CANADA’S CURRENT REAL ESTATE MARKET

G&M - Rob Carrick (2021-06-04)

Buying a home in the Toronto of 1992 was a bit of a stretch for twentysomething couples, but you got it done without much drama.


TORONTO HOUSING MARKET COOLS DOWN IN MAY AS EXHAUSTED BUYERS TAKE A BREAK

G&M - Rachelle Younglai (2021-06-04)

Toronto’s housing market slowed in May, the second straight month of declining sales, as buyer fatigue set in and prices fell in two areas outside the city.


WEALTHY KPMG CLIENTS CONTINUED TO DODGE TAXES FOR YEARS AFTER CRA DETECTED OFFSHORE 'SHAM'

CBC - Harvey Cashore, Frédéric Zalac (2021-06-04)

fter amassing a fortune selling scrap metal in South Africa, Peter Cooper immigrated to Canada in the mid-1990s with his sons Marshall and Richard and their families.


OPINION: OUR DEBT PROBLEM IS A LOT WORSE THAN OTTAWA IS LETTING ON

FP - JASON CLEMENS AND MILAGROS PALACIOS (2021-06-04)

The Trudeau government continues to defend its debt-financed spending based on international comparisons showing Canada has the lowest debt of any G7 country. But if you broaden the group of comparison countries and use an alternative measure of indebtedness, you get a very different picture of Canada’s debt.


ORONTO HOME SALES SLOW FOR SECOND MONTH, BUT PRICES UP 19% AS BIDDING WARS CONTINUE

FP - Ari Alstedter (2021-06-04)

“While sales have trended off the March 2021 peak, so too have new listings,” Jason Mercer, the real estate board’s chief market analyst, said in a statement. “People actively looking to purchase a home continue to face a lot of competition from other buyers, which results in very strong upward pressure on selling prices.”


G7 FINANCE MINISTERS MEET IN LONDON TO BROKER GLOBAL TAX DEAL

Reuters - David Milliken (2021-06-04)

Finance ministers from the G7 group of rich nations are meeting in London on Friday for two days of talks aimed at moving closer to a global deal to raise more tax from the likes of Google, Facebook and Amazon.


BANKS BULK UP IN HONG KONG AS CHINA BUSINESS OVERSHADOWS POLITICS

Reuters - Kane WuScott MurdochAlun John (2021-06-04)

Some global banks, funds and other financial services providers say they are stepping up hiring in Hong Kong, in a sign the city's unique position as a financial gateway to China is outweighing concerns about Beijing's tightening grip over it.


BITCOIN IS A "FARCE"- AMUNDI CIO

Reuters - Reuters (2021-06-04)

Speaking at a news conference, Blanque described the crypto currency as a "farce," adding that it was a symptom of the bubbles forming in markets.


CANACCORD PROFIT SURGES ON EQUITY DEALS, FIRM DROPS RF OFFER

Bloomberg - Kevin Orland (2021-06-04)

The firm is ending its pursuit of RF Capital, an approach disclosed in March, after RF Capital’s board continued to refuse to enter into discussions. Canaccord offered about C$366.6 million for the Toronto-based company and said it would have been willing to increase that proposal.

“We believe that business combination makes all the sense in the world, but the problem is you need two to tango,” Canaccord Chief Executive Officer Dan Daviau said in an interview. Canaccord’s net income in the three months through March surged more than fivefold from a year earlier, to C$139.4 million ($115.6 million), or 93 cents a share, the company said Tuesday. The average of three analysts’ estimates compiled by Bloomberg was 61 cents a share.   Rising equity markets and investors’ demand for tech stocks are spurring more and more companies to go public or sell additional shares, pushing Canada’s market for initial public offerings to its best first quarter in 15 years. Canaccord’s investment-banking revenue advanced more than sixfold, while total revenue more than doubled to a record C$706.5 million.


BUYING A HOME IN CANADA’S MOST EXPENSIVE CITIES HAS UP TO A 68% PREMIUM

Better Dwelling - Daniel Wong (2021-06-04)

Toronto homebuyers are paying a big premium compared to living in the rest of the country. Buying a single-family (non-condo) home is 30.2% more expensive than the price of a typical home in major cities. Condo apartments are only 2.2% more expensive than condos in other urban markets though.


INSURANCE REGULATORS CONSULT ON CONDUCT PRINCIPLES

Investment Executive - IE (2021-06-04)

In a release on Tuesday, the Financial Services Regulatory Authority of Ontario, a member of CISRO, said it will consult “later this year” on a proposed approach to adopting the CISRO principles into its regulatory framework.


CMHC STUDY HIGHLIGHTS ONTARIO’S RENTAL SHORTAGE

G&M - Rachelle Younglai (2021-06-03)

Nearly one in six Toronto homes has a basement apartment or secondary unit, according to new research, highlighting the shortage of rental properties and the housing crunch in many parts of Ontario.


WHEN WE POLLED CANADIAN EXECUTIVES ON THE BRAND THEY ADMIRED MOST, IT WASN’T EVEN CLOSE (HINT: IT RHYMES WITH SHOPIFY)

G&M - James Cowan (2021-06-03)

For most of its history, Shopify has made a virtue of anonymity.


BMO CREATES ENERGY TRANSITION GROUP IN CAPITAL MARKETS DIVISION

FP - Stefanie Morotta (2021-06-03)

Aaron Engen, BMO’s investment and corporate banking vice chair, said that many of BMO’s clients have already formed their own energy transition groups and have been ramping up their efforts on sustainability.


THREE FINANCIAL POST JOURNALISTS RECOGNIZED BY PMAC FOR EXCELLENCE IN INVESTMENT REPORTING

FP - Staff (2021-06-03)

Financial Post journalists have won a second place award and an honourable mention at the Portfolio Management Association of Canada’s 2021 Awards for excellence in investment journalism.


SCOTIABANK COMPLETES SWEEP AS ALL BIG SIX TOP ESTIMATES, BUT INTERNATIONAL DIVISION FACES HEADWINDS

FP - Stefanie Morotta (2021-06-03)

Plummeting loan-loss provisions and a surge in its Canadian banking division helped Bank of Nova Scotia top earnings expectations in its second quarter, capping an earnings season that saw all of the country’s Big Six banks exceed analyst estimates.


SAUDI ARAMCO IN TALKS WITH BANKS FOR NEW BOND SALE - SOURCES

Reuters - Staff (2021-06-03)

Saudi Arabian oil group Aramco (2222.SE) is in talks with banks for a U.S. dollar-denominated bond issue, two sources said, seeking to raise money ahead of large commitments for its major shareholder, the Saudi government.


'GREENIUM' SHRINKS AS CLIMATE BOND SALES SWELL TO RECORD

Reuters - Yoruk Bahceli (2021-06-03)

Investors have long paid a premium to get hold of scarce green bonds, but record issuance might be about to change that.


FED EXITS THE CREDIT MARKET IT CHANGED FOREVER

Bloomberg - Brian Chappatta (2021-06-03)

It’s not exactly tapering, but the Federal Reserve is starting the clock on withdrawing the emergency measures it used to support financial markets during the Covid-19 pandemic.

The central bank said late Wednesday that it would start to gradually sell the $13.7 billion portfolio of U.S. corporate debt and exchange-traded funds it amassed through its Secondary Market Corporate Credit Facility, which was created during the worst of the pandemic-inspired market meltdown in March 2020. The facility marked an unprecedented intervention for the Fed because it effectively pledged to plow hundreds of billions of dollars into company debt if no one else would. That backstop, even if it wasn’t fully used, quickly restored investor confidence, led to a ferocious rally in practically every corner of the bond market and encouraged record-breaking amounts of debt sales from investment-grade and high-yield borrowers alike.


ANT WINS CHINA’S APPROVAL TO SET UP CONSUMER-FINANCE COMPANY

WSJ - Jing Yang (2021-06-03)

The Jack Ma-controlled mobile-payments company will hold a 50% stake in the new entity, with the rest held by six other shareholders.


TESLA FAILED TO OVERSEE ELON MUSK’S TWEETS, SEC ARGUED IN LETTERS

WSJ - Dave Michaels and Rebecca Elliott (2021-06-03)

Securities regulators told Tesla Inc. last year that Chief Executive Elon Musk’s use of Twitter had twice violated a court-ordered policy requiring his tweets to be preapproved by company lawyers, according to records obtained by The Wall Street Journal.


THE CANADIAN PROPERTY BUBBLE PUSHED RENOVATION SPENDING TO OVER 3% OF GDP: BMO

Better Dwelling - Daniel Wong (2021-06-03)

Residential renovation spending grew much faster than the general economy. Home reno now represents 3% of GDP, a record share. This segment is about a third of the residential investment we discussed yesterday. Not surprising the larger category pushed to a new record. 


THE CASE FOR KEEPING OUR CURRENT NATIONAL REGULATORY SYSTEM

Investment Executive - Paul Bourque (2021-06-03)

A national securities regulatory agency has been under consideration in Canada for at least 50 years. These efforts have been driven by a belief that a single regulatory agency would be more efficient and effective than 13 provincial bodies.


GLOBAL INSURERS’ FOCUS ON ESG WILL IMPACT ENERGY SECTOR: REPORT

Investment Executive - Katie Keir (2021-06-03)

Through both the coverage they offer to energy projects and their investment portfolios, insurers are increasingly focusing on ESG and sustainability, the report said, noting, “Many of the largest global insurance providers have signed up to comply with climate friendly frameworks for sustainable insurance and are investing with the support of the United Nations.”


MIR BREAKS VISA-MASTERCARD DUOPOLY IN RUSSIA

Finextra - Finextra (2021-06-03)

As Europe's proposed alternative to Visa and Mastercard takes shape, evidence from Russia suggests that an upstart rival can break the American giants' duopoly - if government is prepared to put its finger on the scale.


PEMBINA EMERGES AS INTER PIPELINE’S WHITE KNIGHT WITH AN $8.3-BILLION ALL-SHARE TAKEOVER THAT TOPS BROOKFIELD’S HOSTILE BID

G&M - Tim Kiladze (2021-06-02)

Toronto-based Brookfield, which is Inter Pipeline’s largest shareholder, went public with a $7.1-billion hostile bid in February. At the time, Brookfield was willing to pay up to $4.9-billion of the purchase price in cash, but Inter Pipeline’s board dismissed the bid outright, arguing the company was worth significantly more money.


TSX REACHES 20,000 FOR THE FIRST TIME AS REBOUND RALLY CONTINUES

G&M - Tim Shufelt (2021-06-02)

The rally started with an immense and co-ordinated response by central banks and governments to unleash a wave of stimulus, was sustained by a rush into stay-at-home stocks and Big Tech, picked up momentum as effective COVID-19 vaccines were introduced to the market, and gained renewed strength from the economic boom that approaches on the other side of the pandemic.


BANK OF NOVA SCOTIA BEATS EARNINGS EXPECTATIONS, BUT SEES LAGGING RECOVERY IN LATIN AMERICA

G&M - James Bradshaw (2021-06-02)

Profit of $429-million from the bank’s international division, which is concentrated in Latin America, rose 143 per cent year over year for the quarter ended April 30, and 10 per cent from the prior quarter. Over all, the bank earmarked less money to cover international loans that may default over time, setting aside $396-million. But actual losses from loans that were written off in the international division spiked to $986-million in the quarter, which the bank predicts will mark a peak.


CMHC STUDY HIGHLIGHTS ONTARIO’S RENTAL SHORTAGE

G&M - Rachelle Younglai (2021-06-02)

Nearly one in six Toronto homes has a basement apartment or secondary unit, according to new research, highlighting the shortage of rental properties and the housing crunch in many parts of Ontario.


BIG TSX COMPANIES TRIPLED NUMBER OF BLACK BOARD MEMBERS IN PAST YEAR — BUT THERE ARE STILL ONLY 26

CBC - Jacqueline Hansen (2021-06-02)

The number of Black members on the boards of the 100 largest companies on the TSX by market capitalization has more than tripled over the past year, CBC News has found. There are at least 26 current Black board members, and 18 were appointed since July 2020.


TOUGHER MORTGAGE STRESS TEST SHAVES UP TO 5% OFF SOME HOMEBUYERS' PURCHASING POWER

FP - Kelsey Rolfe (2021-06-02)

“That purchasing power reduction is not for all buyers, only for those who are at the max, at the margins, for the qualifying process,” he said. “So the market could have a bit of a cooling effect, but in and of itself we wouldn’t expect this change to engineer a significant cooling of the market the way we saw, for example, in British Columbia in 2016 or in Ontario in 2017.”


IS WAGE INFLATION GETTING OUT OF CONTROL?

FP - David Rosenberg (2021-06-02)

It’s true that between 1992 and 2000, wage growth picked up without a corresponding increase in actual inflation. But that was a period during which the U.S. dollar was surging, keeping import prices (and hence overall inflation) under wraps. So, could we have another wage-driven inflation spiral à la late 1970s/early 1980s?


CHINA'S BANKS ARE BURSTING WITH DOLLARS, AND THAT'S A WORRY

Reuters - Tom WestbrookWinni Zhou (2021-06-02)

A mountain of dollars on deposit in China has grown so large that banks are struggling to loan the currency and traders say it poses a risk to official efforts to control a fast-rising yuan.


REGULATORS INSIST DERIVATIVES INDUSTRY MUST DITCH LIBOR

Reuters - Lawrence White (2021-06-02)

Global financial regulators on Wednesday urged firms to stop using Libor by the end of the year, and said derivatives markets linked to the tarnished interbank rate should switch to “risk free rates” or RFRs compiled by central banks.


DUTCH, EUROPEAN, WORLD ECONOMIES RECOVERING QUICKER THAN EXPECTED

Reuters - Reuters (2021-06-02)

The head of the Netherlands' Central Bank Klaas Knot said on Wednesday the Dutch economy is recovering more quickly than expected from the economic crisis caused by the coronavirus pandemic.


ENERGY STOCKS SEND CANADA’S TSX ON A RUN PAST 20,000 MILESTONE

Bloomberg - Michael Bellusci and Aoyon Ashraf (2021-06-02)

Canada’s main stock index rose above 20,000 for the first time Tuesday, aided by a gain in energy shares, a rotation to value stocks and global economies emerging from the depths of Covid-19 lockdowns.


HOUSING BOOM HELPS PROP UP 5.6% ANNUALIZED GROWTH IN CANADA

Bloomberg - Shelly Hagan (2021-06-02)

Canada’s economy continued its recovery from pandemic damage in the first quarter, driven by a surge in home construction.


SCOTIABANK CUTS WORST-CASE SCENARIO FOR CANADIAN REAL ESTATE, SEES HIGHER PRICE GROWTH

Better Dwelling - Better Dwelling (2021-06-02)

The base case scenario sees big growth this year, with a taper in future years. At the forecast date, they see home prices rising 7.5% over the following 12-month period. This is a significant acceleration from the 4% growth in the January numbers. Prices would slow down after the boom in this outcome.


CANADA NOW DEDICATES MORE INVESTMENT CAPITAL TO HOUSING THAN BUSINESS: BMO

Better Dwelling (2021-06-02)

That capital appears to be diverted from business investment, which is now at a record low share of GDP. Business investment in this case is a combination of non-residential structures, machinery & equipment, and intellectual property. Together, these add up to 9.3% of GDP in Q1 2021. This is a record low compared to the long-run average of 12% of GDP, according to the economist.  


A WARMING PLANET IS ABOUT TO REVOLUTIONIZE HOW BANKS DEFINE RISK

FP - Frances Schwartzkopff (2021-06-01)

“That is the logical next step,” Janine Dow, a senior director for sustainable finance at Fitch Ratings, said in an interview. “Because once you size a problem, then you identify the risk. And as a regulator, you can’t just leave an emerging risk exposed.”
For now, banks remain a long way off that goal. Since the Paris Climate Agreement was struck in 2015, lenders globally have poured more than US$3.6 trillion into fossil fuel financing, according to data compiled by Bloomberg. Only this year has green bond and loan financing taken the lead.


AUSTRALIAN BANKS, LED BY CBA, SET TO RETURN RECORD $15 BLN CASH TO INVESTORS

Reuters - Paulina Duran (2021-06-01)

Australia's big banks are likely to return a record $15 billion or more of cash to investors over the next two years, with investors betting Commonwealth Bank (CBA.AX) will move first and helping drive shares of the top lender to all-time highs.


WITH EYE ON UK HOUSING BOOM, BOE WEIGHS INFLATION RISK - DEPUTY GOVERNOR RAMSDEN

Reuters - Reuters (2021-06-01)

The Bank of England is carefully monitoring Britain's booming housing market as it weighs chances that a rapid recovery from the COVID-19 pandemic will lead to a broader pick-up in inflation, Deputy Governor Dave Ramsden said.


GERMAN 'INSURTECH' WEFOX RAISES $650 MLN AT VALUATION OF $3 BLN

Reuters - Duglas Busvine (2021-06-01)

Digital insurance startup Wefox said on Tuesday it had raised $650 million from investors, in what it called a record-breaking round for a so-called "insurtech" company that valued the business at $3 billion.


BITCOIN IS UNLIKELY TO ESCAPE REGULATION, RIKSBANK GOVERNOR SAYS

Bloomberg - Niclas Rolander and Hanna Hoikkala (2021-06-01)

Bitcoin and other cryptocurrencies are unlikely to dodge regulatory oversight as supervisory authorities respond to the sheer popularity of the phenomenon, according to the governor of Sweden’s central bank.

Though monetary policy officials have voiced near universal skepticism toward Bitcoin and its rivals, cryptocurrencies have continued to build an enthusiastic following. That’s prompted some of the biggest names in finance to move in, as Wall Street banks such as Goldman Sachs Group Inc. offer trading services tied to crypto.


CHINA IS DIGGING DEEP INTO ITS CURRENCY TOOLKIT TO MANAGE YUAN

Bloomberg - Tian Chen and Sofia Horta e Costa (2021-06-01)

As China’s central bank pulls back from direct intervention in its currency market, officials are reverting to old tools to manage the yuan.


EURO-AREA INFLATION RATE HITS 2% FOR FIRST TIME SINCE 2018

Bloomberg - Alexander Weber and Jana Randow (2021-06-01)

Consumer prices rose an annual 2% in May, more than economists predicted, with energy the biggest gainer from a year ago when the region was in full lockdown. Germany, Spain and Italy -- three of the four largest euro-zone economies -- all reported increases.


CANADIAN HOME PRICES MAKE THE 2006 US REAL ESTATE BUBBLE LOOK LIKE A DEAL

Better Dwelling - Daniel Wong (2021-06-01)

Canadian home prices have grown much faster than rental prices, indicating significant overvaluation. The index increased 7.7% in Q4 2020, compared to the same quarter a year before. This means home prices accelerated 7.7% faster than rents over the same period. It’s also 36.0% higher than it was in 2015 as well. This is a significant detachment from fundamentals, and a steep premium to own vs rent.


CANADA IS RUNNING OUT OF LAND. IT DOES THAT EVERY FEW YEARS

Better Dwelling - Stephen Punwasi (2021-06-01)

Read this for a detailed history of Canada running out of land.


UK HOUSE PRICES RISE AT FASTEST RATE SINCE 2014

FT - Valentina Romei (2021-06-01)

UK house prices have risen by their fastest annual rate in seven years, driven by demand for bigger homes outside the city and a temporary stamp duty holiday, according to the Nationwide Building Society.


EU SET TO UNVEIL DIGITAL WALLET FIT FOR POST-COVID LIFE

FT - Javier Espinoza (2021-06-01)

The EU is set to unveil detailed plans for a bloc-wide digital wallet on Wednesday following requests from member states to find a safe way for citizens to access public and private services online.


HONG KONG EXEMPTS FINANCE EXECUTIVES FROM VIRUS QUARANTINE RULES

FT - Tabby Kinder, Primrose Riordan and Nicolle Liu (2021-06-01)

Hong Kong has exempted senior financial executives and directors of some listed companies from its harsh border quarantine rules, prompting calls by business groups to widen the measures to other sectors.


END OF AN ERA AS POLOZ EXITS BANK OF CANADA

G&M - DAVID PARKINSON (2021-06-01)

Stephen Poloz had only been Governor of the Bank of Canada for a few months in the late summer of 2013, when he gave a speech that defined his unique communication style and signalled a new era for a traditionally staid institution.


CANADA POSTS FIRST CURRENT-ACCOUNT SURPLUS IN MORE THAN A DECADE

G&M - Mark Rendell (2021-06-01)

Canada posted its first quarterly current account surplus in 13 years thanks to surging exports, particularly of lumber and energy products.


DESJARDINS BUYS CANADIAN INVESTMENT MANAGER HEXAVEST, GAINING $5 BILLION IN ASSETS

FP - Derek Decloet (2021-06-01)

The purchase is in line with a the co-operative’s growth goal of targeting $100 billion in assets under management by 2024, Nicolas Richard, president and chief operating officer of Desjardins Global Asset Management, said Monday in a statement. The Quebec-based asset manager had $83 billion in assets under management as of the end of March.


HOUSING, EXPORTS BOLSTER CANADA'S ECONOMY IN FACE OF LOCKDOWNS

FP - Shelly Hagan (2021-06-01)

While the expansion could slow down sharply in the second quarter amid a fresh wave of lockdowns, a strong report this week will stoke confidence in the country’s resilience to the containment measures. Economists are anticipating the pace of growth will return to above 6 per cent in the second half of 2021.


RESTAURANTS, BARS THAT ARE STRUGGLING TO SURVIVE ALSO FACE SOARING INSURANCE PREMIUMS

G&M - Clare O'Hara (2021-05-31)

Soaring insurance premiums continue to plague the hospitality sector despite the Insurance Bureau of Canada’s attempt to find affordable rates for establishments that have been struggling to remain open during the COVID-19 pandemic.


BETTING AGAINST VOLATILE STOCK MARKET MAKES COMEBACK AS SUMMER NEARS

G&M - SAQIB IQBAL AHMED (2021-05-31)

Some investors are revisiting a popular trade that has largely been out of favour since last year’s market tumble: betting against stock market turbulence.


CANADA’S BALLOONING MORTGAGE DEBTS COULD PUT A DANGEROUS DENT IN ENTREPRENEURSHIP

G&M - Scott Stirrett (2021-05-31)

Canada is a world leader in real estate price inflation. Since 2000, Canada’s housing prices increased in real terms by 168 per cent, compared with price growth of 55 per cent in the United States. Canada’s national housing agency predicts that home prices could surge by a further 14 per cent over the next year.


SEC SAYS GROUP ILLEGALLY RAISED $2B IN CRYPTO OFFERING

G&M - AP (2021-05-31)

Federal regulators have accused a group of people of promoting a securities offering tied to digital currency that raised over $2 billion from retail investors without being properly registered.


BITCOIN SLUMPS 8% AS IT HEADS FOR BRUISING MONTHLY DROP

G&M - Tom Wilson (2021-05-31)

The biggest cryptocurrency extended earlier losses, falling as much as 8.2 per cent to $35,339 as it stayed pinned in this week’s relatively tight trading range. It was last down 6.2 per cent.


HOW SHOULD WE FEEL ABOUT SOARING BANK PROFITS DURING A PANDEMIC?

CBC - Don Pittis (2021-05-31)

And as many, including our central bankers, have said in the past, if that trend continues, diverting so much of our wealth to inflating the price of unproductive real estate may not be the best thing for Canada, or for its banks, once the pandemic is over. By comparison the effects of rising fees, while evidently annoying, are of small economic consequence.


AS LOAN-LOSS PROVISIONS DECLINE, QUESTION FOR BANKS BECOMES WHAT TO DO WITH EXCESS CAPITAL?

FP - Stefanie Marotta (2021-05-31)

Bank of Montreal’s provisions fell to $60 million in the second quarter, as compared with $1.1 billion in the same period a year earlier and far less than analyst expectations of $219 million. CIBC and National Bank also set aside fewer provisions than expected, recording $32 million and $5 million in provisions respectively.


PIERRE POILIEVRE VS MARK CARNEY: A HEATED EXCHANGE ON PIPELINES

FP - Staff (2021-05-31)

Carney, who led the Bank of Canada from 2008 and 2013 and the Bank of England from 2013 to 2020, advised the Liberal federal government on its latest budget and is widely considered to have political aspirations to run for the Liberal party.


NATIONAL BANK OF CANADA PROFIT MORE THAN DOUBLES

FP - Nichola Saminather and Noor Zainab Hussain (2021-05-31)

National Bank’s net income excluding one-off items rose to $801 million, or $2.25 a share, in the three months through April, compared with $379 million, or $1.01 a share, a year earlier.

Analysts had expected $2 a share, according to IBES data from Refinitiv.
Personal loans grew 7 per cent and commercial lending climbed 5 per cent from a year earlier, making the smallest of Canada’s six big banks one of the few to see an increase in the latter at a time when businesses were sitting on cash and refraining from borrowing.


MORGAN STANLEY NEARS FULL OWNERSHIP OF CHINA VENTURES WITH STAKE BUYS

Reuters - Reuters (2021-05-31)

Morgan Stanley (MS.N) is buying stakes put up for sale by its partner in their China securities and mutual funds joint ventures for about $150 million, according to a statement by the partner, moving towards full ownership of the businesses.


AFTER COLONIAL ATTACK, ENERGY COMPANIES RUSH TO SECURE CYBER INSURANCE

Reuters - Laura Sanicola (2021-05-31)

U.S. energy companies are scrambling to buy more cyber insurance after this month's attack on Colonial Pipeline (COLPI.UL) disrupted the U.S. fuel supply, but they can expect to pay more as cyber insurers plan to hike rates following a slew of ransomware attacks.


NATIONAL BANK DECLINES AFTER EARNINGS UNDERWHELM INVESTORS

Bloomberg - Kevin Orland (2021-05-31)

While National Bank’s profit topped analysts’ estimates, four of its Canadian banking peers also posted earnings that beat projections this week. National Bank, which generates a bigger portion of revenue from capital-markets activities than any of the country’s six biggest banks, also was hampered by a slowdown in that unit following a strong quarter for trading a year earlier.


AUSTRALIA CENTRAL BANK FACES TAPER PRESSURE AS MORE PEERS SHIFT

Bloomberg - Michael Heath (2021-05-31)

Australia’s central bank is approaching a decision on whether the economy is strong enough for it to join Canada and New Zealand in signaling a move away from emergency mode.


WHEN DOES POOR SERVICE BECOME A REGULATORY ISSUE FOR ONLINE BROKERAGES?

Investment Executive - James Langton (2021-05-31)

In a notice setting out its regulatory priorities for the coming year, the industry self-regulatory organization (SRO) said that it’s reviewing service issues at online brokerage firms, and considering when the sorts of delays and outages that clients are increasingly complaining about rise to the level of being a regulatory concern.


FINANCE DEPARTMENT REPORTS PRELIMINARY DEFICIT OF $314B FOR LAST FISCAL YEAR

Investment Executive - CP (2021-05-31)

The early deficit figure for the 12-month period between April 2020 to March 2021 compares to a deficit of $21.8 billion over the preceding fiscal year.


SWISS BANK SETTLES WITH U.S. AUTHORITIES IN FIFA BRIBERY CASE

Investment Executive - James Langton (2021-05-31)

Switzerland’s Bank Julius Baer & Co. Ltd. is paying more than US$79 million for its role in laundering bribes paid to officials with the Fédération Internationale de Football Association (FIFA) and other soccer federations.


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BANKERS FLEE WALL STREET, HEAD HOME TO VIRUS-FREE AUSTRALIA

Bloomberg - Nabila Ahmed (2021-07-17)

For a fresh perspective on the stories that matter for Australian business and politics, sign up for our weekly newsletter.


THE HOUSING BOOM THAT NEVER ENDS ALREADY WIPED OUT ALL THE SHORT-SELLERS

Bloomberg - Ari Altstedter and Kevin Orland (2021-06-15)

Normally this kind of quick-buck speculation would be interpreted by economists, policy makers and finance types as the indisputable sign of a housing bubble. But Moore has been a professional house flipper in the Toronto area for more than a decade now, during which a seemingly endless line of illustrious doomsayers have taken the other side of his bet on real estate in word and deed, only to be proven wrong.

One of the earliest was Mark Carney, then Canada’s central bank governor but soon to take over the Bank of England, who called the country’s reliance on housing wealth “ unsustainable” back in 2012. Then came the wave of American financiers, one after the other, whose collective bet on a Canadian housing crash got its own nickname, “The Great White Short.” Many of them, like Steve Eisman of The Big Short fame, applied the lessons they had learned in the bursting of the U.S. housing bubble years earlier.


SOFTBANK'S PAYPAY SURGES AHEAD IN JAPAN'S DIGITAL PAYMENTS RACE

Reuters - Sam Nussey (2021-06-11)

For six decades, shoppers at Mikawaya, a rice dealer in eastern Tokyo, paid in cash - until sales staff from payments app PayPay swept through the low-lying district, persuading the store to give their product a try.


IMF SEES LEGAL, ECONOMIC ISSUES WITH EL SALVADOR'S BITCOIN MOVE

Reuters - Rodrigo CamposKarin Strohecker (2021-06-11)

The International Monetary Fund said on Thursday it has economic and legal concerns regarding the move by El Salvador to make bitcoin a parallel legal tender, further clouding the outlook for an IMF-backed program and widening spreads on the country's bonds.


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