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'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.


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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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

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

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.


UBS WEALTH BANKERS GET DOSE OF CREDIT SUISSE TONIC IN KHAN PLA

Bloomberg - Patrick Winters and Marion Halftermeyer (2020-12-17)

Colleagues say the Pakistan-born executive is enthusiastic, energetic and talented. Former associates have described him as confident, even overly so. That said, he knows the business from several angles: Khan was a UBS auditor at Ernst & Young and a key competitor at Credit Suisse.


HOW CAN INSURANCE BROKERS USE RATE COMPARISON SITES TO BOOST THEIR BOOKS OF BUSINESS?

Insurance Business - Bethan Moorcraft (2020-12-07)

Enter, rate comparison websites. They’re all the rage in the UK and the USA, where consumers use comparison sites to shop for insurance much like Canadians do when comparing travel costs on sites like Expedia and Trivago. But Canadians are slowly starting to catch on to the insurance comparison trend. They’re searching for and finding platforms like LowestRates.ca, which is enabling consumers to compare insurance premium prices across a number of product lines, primarily in auto and home insurance.


BOAZ MANOR, BUSINESS PARTNER INDICTED ON FRAUD CHARGES IN U.S. OVER BLOCKCHAIN VENTURE

FP - Barbara Shecter (2020-10-20)

Boaz Manor, a former Canadian hedge fund manager who served jail time following the collapse of Portus Alternative Asset Management Inc. in 2005, was indicted Friday on fresh criminal charges in the United States in connection with an alleged securities fraud scheme at an entirely different venture: a New York-based blockchain technology startup.


CANADIAN CITIES SLOW NEW HOME BUILDING, BUT TORONTO STARTS RIP OVER 40% HIGHER

Better Dwelling - Daniel Wong (2020-07-10)

Canada’s urban housing starts fell, as housing activity slowed across the country. There were 177,825 housing starts seasonally adjusted at annual rates (SAAR) in Q2 2020, down 8.0% from the previous quarter. This is a 14.2% decrease compared to the same quarter a year before. The drop is likely due to the pandemic, but that didn’t slow down all markets.


FISCAL SNAPSHOT POSES MORE QUESTIONS THAN ANSWERS

Investment Executive - James Langton (2020-07-10)

An avalanche of spending to combat the effects of the pandemic, coupled with the negative effects of the economic turmoil on government revenues, is driving the inflated deficit.


Q2 EARNINGS TO SHOW HOW VIRUS MENACED CORPORATE AMERICA

Investment Executive - Stan Choe (2020-07-10)

CEOs across the country are preparing to tell their investors in upcoming weeks how they fared from April through June, and the forecast is uniformly dismal. The quarter coincided with the height of lockdowns ordered by governments to slow the spread of the coronavirus pandemic, which bludgeoned the economy into a sudden recession.


WEAKER POPULATION GROWTH IS BAD NEWS FOR HOUSING: TD

Investment Executive - James Langton (2020-07-10)

“While some of this setback is likely temporary in nature, we see the mix of ongoing travel fears, a pandemic-related slowdown in processing times for immigration applications, government travel restriction measures, and an only gradually healing global economy holding population growth well below its pre-virus rate of around 1.5% annually over the next few years,” it said.


CANADIAN DEBT ISSUANCE SURGES

Investment Executive - James Langton (2020-07-10)

Governments provided the bulk of the new issue activity by raising $70.7 billion in the second quarter. This was up 83% from the prior quarter.


INVESTORS SHIFTING TO CORPORATE CREDIT

Investment Executive - Michelle Schriver (2020-07-10)

 Phil Mesman, head of fixed income at Toronto-based Picton Mahoney Asset Management, described the rally in fixed income, backed by central bank support, as a “gift” amid economic uncertainty.


FLASH STORM HITS SAME AREAS OF TORONTO AS IN 2013 CAT EVENT. WAS THE DAMAGE THE SAME?

Canadian Underwriter - Adam Malik (2020-07-10)

The Wednesday storm hit a pocket of Toronto, mainly in the city’s west-end neighbourhoods of The Junction and High Park, as well as parts of Etobicoke and North York. “We kind of got lucky [Wednesday], in that the rain was about a half-hour long and then the storm moved out,” McGillivray said. “It still dumped a heck of a lot of rain.”


GOVERNMENT’S DEBT LOAD TO JUMP TO $1.2-TRILLION BY 2021

Canadian Underwriter - Kate McCaffrey (2020-07-10)

Calling COVID-19 “the challenge of our generation,” Finance Canada says the toll of COVID-19 on the broader economy in 2020 is expected to be the largest and most sudden economic contraction since the Great Depression. Private sector economists, they add, expect an annualized decline of over 40 per cent in Canada’s real GDP in the second quarter of this year. “The drop in real GDP is expected to be at its deepest in the second quarter of 2020,” they write. They also expect the economy to contract by 6.8 per cent in 2020, before rebounding 5.5 per cent in 2021.


THE TINY GERMAN BANK THAT BET BIG ON WIRECARD’S MARKUS BRAUN

FT - Olaf Storbeck (2020-07-09)

Just weeks before Wirecard collapsed, a tiny German bank made a big bet on Markus Braun.


RISE IN MARGIN LENDING STOKES FEARS OF CHINA BUBBLE

FT - Thomas Hale (2020-07-09)

Margin loans to buy equities in China have risen to their highest level in five years, prompting fears that speculation on rising prices could lead to a rerun of a notorious stock market bubble that burst in 2015.


AS DEBT SOARS, OTTAWA BANKS ON RECORD LOW INTEREST RATES

G&M - Patrick Brethour (2020-07-09)

The federal government is aiming to take full – and lasting – advantage of rock-bottom interest rates as it borrows record amounts to fund its COVID-19-driven spending.


INTACT FINANCIAL FORECASTS $124-MILLION IN WEATHER-RELATED CATASTROPHE CLAIM LOSSES

G&M - Clare O'Hara (2020-07-09)

Canada’s largest home and auto insurer, Intact Financial Corp., is likely to see $124-million in catastrophe losses due to the recent hailstorm in southern Alberta and severe spring flooding in Fort McMurray.


UK SET TO BORROW 350 BILLION POUNDS AND MORE IS LIKELY, IFS SAYS

Reuters - David Milstead (2020-07-09)

British government borrowing is on course to surge to around 350 billion pounds ($442 billion) this year following new COVID-19 spending announced by finance minister Rishi Sunak, and could rise higher still, a leading think tank said on Thursday.


A ROAD MAP TO PAYMENT SYSTEMS

BOC - BOC (2020-07-09)

New payment technologies give Canadians more choice, and the options are getting faster, easier to use and more convenient. Likewise, payment systems now offer more speed; and more than ever, they’re globally connected and easy to access.


BUSINESS OUTLOOK SURVEY—SUMMER 2020

BOC - BOC (2020-07-09)

Results from the summer Business Outlook Survey suggest that business sentiment is strongly negative in all regions and sectors due to impacts from the COVID‑19 pandemic and the drop in oil prices. Firms reported that weak demand is reducing both capacity pressures and expectations for price growth.


CORONAVIRUS LOCKDOWN SPURS WIDESPREAD ADOPTION OF DIGITAL ID TECH IN CANADA

Mobile Payments Today - Robin Arnfield (2020-07-09)

This shift to remote access for digital services is likely to be permanent. As Canadians have become accustomed to using ID verification for accessing government services, they may also use this technology to apply for services in sectors such as banking, real estate, insurance and health care.


DEUTSCHE BANK, GOOGLE JOIN FORCES FOR CLOUD SERVICES OFFERING

Pymnts - Pymnts (2020-07-09)

“The partnership with Google Cloud will be an important driver of our strategic transformation,” said Christian Sewing, Deutsche Bank’s CEO, in a statement. “It demonstrates our determination to invest in our technology, as our future is strongly linked to successful digitization. It is as much a revenue story as it is about costs.”


CANADIAN HOUSING STARTS CLIMB BY 8.3% IN JUNE: CMHC

Reuters - Reuters (2020-07-09)

The seasonally adjusted annualized rate of housing starts rose by 8.3% to 211,681 units from a revised 195,453 units in May, the Canadian Mortgage and Housing Corporation (CMHC) said. Economists had expected starts to rise to 198,000.


REPORT ON AIMCO LOSSES BLAMES RISK-MANAGEMENT LAPSES AND INADEQUATE OVERSIGHT

G&M - Jeffrey Jones (2020-07-09)

Alberta Investment Management Corp., known as AIMCo, failed to properly gauge the potential for huge losses from a derivative trading strategy that involved betting against market volatility. In fact, AIMCo expanded the program two years ago and was too late to cut its losses before markets whipsawed in March, said the board’s report into the trading rout, released on Thursday.


COUCHE-TARD EYEING DEAL TO BUY U.S. GAS STATION GIANT SPEEDWAY

G&M - Nicolas Van Praet (2020-07-09)

Canadian convenience store giant Alimentation Couche-Tard Inc. is hunting for a partner willing to take over a major block of gas stations in the United States as it lays the groundwork to mount a multibillion-dollar takeover offer for Marathon Petroleum Corp.’s Speedway chain, according to a person with knowledge of the situation.


DAVIDSTEA TO CLOSE 82 STORES IN CANADA AND EXIT THE U.S. MARKET

G&M - CP (2020-07-09)

Insolvent beverage retailer DavidsTea Inc. is closing 82 stores in Canada and all 42 of its stores in the United States as it focuses on its e-commerce business and supplying grocery stores and pharmacies.


JUNE HOME BUILDING REBOUNDS BUT CMHC SAYS RISKS STILL REMAIN

G&M - Rachelle Younglai (2020-07-09)

Canadian home building rebounded in June, with a flurry of new condos breaking ground in Toronto and Montreal after the coronavirus pandemic briefly shut down construction in Ontario and Quebec.


ONTARIO TASK FORCE RECOMMENDS TSX COMPANIES BE REQUIRED TO SET DIVERSITY TARGETS FOR LEADERSHIP

G&M - Mark Rendell (2020-07-09)

Ontario securities law should require Toronto Stock Exchange-listed companies to set targets for female and minority representation in leadership positions and overhaul how board members are appointed and how long they can serve, a government task force has recommended.


U.S. TOWN PRINTS ITS OWN WOODEN MONEY IN MOVE TO REVIVE LOCAL ECONOMY SICKENED BY COVID-19

CBC - Reuters (2020-07-09)

Tucked away under lock and key in a former railroad depot turned small-town museum in the U.S. state of Washington, a wooden printing press cranked back to life to mint currency after nearly 90 dormant years


CANADIAN FINTECHS HOPE U.S. PANDEMIC PARTNERSHIPS WILL SET AN EXAMPLE AT HOME

The Logic - Fatima Syed (2020-07-09)

When the COVID-19 pandemic hit North America in March, the first thing Toronto-based fintech Boss Insights did was guarantee all of its employees six months’ pay. The second thing it did was offer its technology for free to any financial institution providing relief programs to help businesses.  By April, the three-year-old startup had adapted its lending and insights API with “bank-level security” into a platform that could automate the processing of COVID-19 loan applications “from months to minutes.” It’s working with six U.S. community banks and counting, but has no partners in Canada. CEO Keren Moynihan hopes Canadian banks are watching to learn “how the U.S. has risen to the challenge to work with fintechs.”


CANADA NEEDS A NEW FISCAL ANCHOR IF ITS BORROWING SPREE IS TO CONTINUE

FP - Kevin Carmichael (2020-07-09)

Fitch’s downgrade foreshadowed the finance minister’s update, the government’s most comprehensive tally to date on the tremendous costs associated with fighting the COVID-19 pandemic.


ONCE A FISCAL STALWART, CANADA SUDDENLY LOOKS VULNERABLE

Bloomberg - Theophilos Argitis, Esteban Duarte, and Kait Bolongaro (2020-07-09)

Justin Trudeau’s government made every effort on Wednesday to convince Canadians the country can afford a budget deficit that will soar to 16% of economic output this year. Its actions suggest there’s some worry.


GERMANY PROBES POSSIBLE MONEY LAUNDERING BY WIRECARD EXECUTIVES

WSJ - Patricia Kowsmann and Tom Fairless (2020-07-09)

German prosecutors are looking into possible money laundering by executives at Wirecard AG, adding to ongoing probes related to potential fraud and fake accounting at the insolvent payments firm.


COMPANIES RAISED RECORD AMOUNTS SELLING STOCK DURING CRISIS

WSJ - Corrie Driebusch (2020-07-09)

Since the coronavirus pandemic began, companies looking to bolster their balance sheets have rushed to sell stock in record amounts. The result has been a resurgence in fees to Wall Street banks—a bounceback bankers and investors say could last through the fall.


MISERABLE ECONOMIC OUTLOOK COULD YIELD RECORD GOLD PRICES

WSJ - Mike Bird (2020-07-09)

The tumbling real yield on U.S. government bonds has helped drive gold prices higher—and there is little reason to expect yields to rebound in the near future.


JPMORGAN, PING AN TO FUND FINANCIAL TECHNOLOGY STARTUP

WSJ - Julie Steinberg (2020-07-09)

A clutch of global investors is throwing its weight behind a financial-technology upstart that facilitates payments between companies and their suppliers, betting that it is well positioned amid the disruption from the coronavirus pandemic.


MORNEAU EXPECTED TO REVEAL FEDERAL DEFICIT IN EXCESS OF $300-BILLION

G&M - Bill Curry (2020-07-08)

Finance Minister Bill Morneau will forecast a deficit in excess of $300-billion Wednesday, sources say, as the government announces for the first time how shutting down large swaths of the economy and spending billions on emergency pandemic programs is affecting Ottawa’s bottom line.


CALGARY’S CONDO MARKET FACES LOW PRICES AND GLUT OF INVENTORY AS IT LURCHES FROM CRISIS TO CRISIS

G&M - Matt Lundyhttps://www.theglobeandmail.com/business/article-calgarys-condo-market-faces-low-prices-and-glut-of-inventory-as-it/ (2020-07-08)

As home-buying activity rebounds across the country from the COVID-19 pandemic, the condominium market in Calgary remains mired in a lengthy slump that has resulted in falling prices and a growing glut of new units that are sitting empty.


MONTREAL, QUEBEC CITY HOME SALES SPIKE, BUT CANADA’S BOOM WON’T LAST, EXPERTS SAY

G&M - Rachelle Younglai (2020-07-08)

Home sales in Montreal and Quebec City spiked to record highs in June, two more major cities that have seen real estate rebound and boom quickly after the novel coronavirus pandemic slashed activity in April. But economists don’t expect the national home buying frenzy to last while the economic recovery remains uncertain and unemployment high.


TORONTO HOME SALES REBOUND IN JUNE AS MARKET SHRUGS OFF CORONAVIRUS SLOWDOWN

G&M - Rachelle Younglai (2020-07-08)

In the Toronto region, sales and prices have rebounded to pre-COVID-19 levels. The largest residential market in the country saw 8,701 homes sold in June, up 84 per cent on a seasonally adjusted basis from the previous month and a similar volume of sales compared with June, 2019, according to the board.


CANNABIS FIRMS SEE JUMP IN INSURANCE COSTS TO PROTECT LEADERS AS INVESTORS SUE

Reuters - Shariq Khan, Nichola Saminather (2020-07-08)

Some of the biggest cannabis companies, including Medmen Enterprises (MMEN.CD), Canopy Growth (WEED.TO) (CGC.N), CannTrust Holdings (TRST.TO), Aphria Inc APH.TO and Columbia Care CCHW.CD, have faced shareholder litigation, accusing leaders of false claims, failing to act in the interest of all shareholders and attempts to defraud investors.


JUSTIN TRUDEAU’S GAPING DEFICIT BEGINS NEW ERA OF DEBT FOR CANADA

Bloomberg - Kate Bolongaro (2020-07-08)

While the massive shortfall has broad political support, it’s dramatic departure for a country with a longstanding aversion to debt and leaves Canada with the prospect of running large deficits for years to come. Morneau, the first finance minister to oversee a credit rating downgrade in 25 years, is under pressure to provide at least cursory assurances the government will return to a more fiscally prudent path once the coronavirus crisis has passed.


CHUBB’S PANDEMIC ESTIMATE COULD BUFFER INSURERS

WSJ - Telis Demos (2020-07-08)

Investors in insurance companies have been held back by an unusual amount of uncertainty. Now they have a new benchmark to go by.


ALLSTATE TO ACQUIRE RIVAL INSURER NATIONAL GENERAL FOR $4 BILLION

WSJ - Ben Otto (2020-07-08)

U.S. insurance giant Allstate Corp. said it has agreed to acquire peer National General Holdings Corp. for about $4 billion in cash, expanding its reach in the personal property-liability business.


VANCOUVER REAL ESTATE SALES ARE BACK, BUT PRICES STILL FALLING FROM PEAK

Better Dwelling - Kaitlin Last (2020-07-08)

The price of a typical home across Greater Vancouver is higher than last year, but down from a month before. The benchmark price of all home types reached $1,025,300 in June, up 3.5% from last year. In the City, Vancouver East saw the benchmark reach $1,083,300, up 5.0% from last year. Vancouver West is also higher with prices reaching $1,272,400, up 4.9% from last year. Important to note that all three of these markets are lower in price from the month before.


CANADA’S BIG PENSION FUNDS WELL POSITIONED: FITCH

Investment Executive - James Langton (2020-07-08)

“Near-term valuations and returns are expected to be pressured from the economic fallout of the coronavirus pandemic, given the breadth and global nature of its impact,” Fitch said.


MORE CLASS ACTIONS HEADED TO COURT OVER PANDEMIC BUSINESS INTERRUPTION

Canadian Underwriter - Greg Mechbach (2020-07-08)

In any case, the specific policy language is critical in deciding whether coverage applies, Ari Krajden, partner with law firm Kawaguchi Krajden LLP told Canadian Underwriter earlier.


OTTAWA WON’T BE MUCH WORSE OFF FISCALLY, EVEN WITH RECORD BORROWING

G&M - Patrick Brethour (2020-07-08)

The federal government is aiming to take full – and lasting – advantage of rock-bottom interest rates as it borrows record amounts to fund its COVID-19-driven spending.


FISCAL UPDATE: MORNEAU PROJECTS $343.2-BILLION DEFICIT; FEDERAL DEBT TO CLIMB ABOVE $1-TRILLION

G&M - Bill Curry (2020-07-08)

That one-year deficit figure is nearly the same size as total federal spending in a normal year.


FEDERAL RESERVE OFFICIALS SUGGEST U.S. ECONOMIC RECOVERY MAY BE STALLING

G&M - Howard Schneider (2020-07-08)

Federal Reserve officials raised fresh doubts on Wednesday about the durability of the U.S. recovery, while new business surveys highlighted developing risks from the relentless coronavirus pandemic.


RBC’S GUIDE TO INVESTING IN CANADIAN BANK STOCKS AND CURRENT TOP PICKS

G&M - Scott Barlow (2020-07-08)

“When to buy banks (or not): … There is no hard and fast rule, but it is generally best to buy banks in times of ROE expansion and positive earnings revisions.


HSBC AND NOKIA DRAG EUROPEAN STOCKS LOWER AMID VIRUS WORRIES

Reuters - Sruthi Shankar, Susan Mathew (2020-07-08)

On the STOXX 600, Nokia (NOKIA.HE) was the worst performer, slumping 8.1% on concerns that it was losing the business of its key client Verizon (VZ.N) in the United States. JPMorgan downgraded it to “neutral”.


EUROPE SEES DEEPER SLUMP; MELBOURNE LOCKS DOWN: VIRUS UPDATE

Bloomberg - Bloomberg (2020-07-07)

European officials expect a deeper economic slump than previously estimated this year, while German industrial production rose less than forecast in May, underscoring the challenge faced by the continent after months-long shutdowns.

Melbourne will be locked down for six weeks after new cases in the Australian state of Victoria jumped by 191, the biggest daily increase since the outbreak began. In contrast, Beijing reported no new infections for the first time in nearly a month.


TRUDEAU DECIDES TO SKIP WASHINGTON SUMMIT ON NEW NAFTA

Bloomberg - Kait Bolongaro and Justin Villamil (2020-07-07)

Justin Trudeau declined to attend a trilateral summit in Washington this week to inaugurate the new trade pact between the U.S., Mexico and Canada.


GRIM DAY FOR PIPELINES SHOWS THEY’RE ALMOST IMPOSSIBLE TO BUILD

Bloomberg - Rachel Adams-Heard and Ellen M. Gilmer (2020-07-07)

Armed with experienced lawyers and record funding, environmental groups are finding enormous success blocking key pipeline permits in court. The challenges come despite support from President Donald Trump, who so far has failed to ensure big projects like Keystone XL get built.


THE BANK DRIVE-THROUGH MAKES A COVID COMEBACK

WSJ - Orla McCaffrey (2020-07-07)

Even Brody, a Labrador retriever, is a new fan of the customer drive-through at the local Fifth Third Bancorp branch just north of Cincinnati.


CANADIAN CONSUMER CREDIT IS CONTRACTING FOR THE FIRST TIME SINCE THE 1980S

Better Dwelling - Daniel Wong (2020-07-07)

Consumer credit on the other hand has been crashing to multi-decade lows for growth. The balance fell to $614,980 in May, down 1.59% from a month before. This represents a decline of 2.33% compared to the same month last year. Negative prints for consumer credit are extremely rare. Last month was the first since May 1983.


FEDERAL FINANCES AREN’T BAD, CONSIDERING COVID-19: RBC

Investment Executive - James Langton (2020-07-07)

“Based on our economic forecasts out to 2024, deficits could be close to double those predicted by the government just six months ago, as weaker tax revenues take a significant toll,” it said. “We expect the revenue shortfall over the same period could total nearly $120 billion, largely this year and next.”


INVESTMENT BANKING BUSINESS HITS RECORD HEIGHTS

Investment Executive - James Langton (2020-07-07)

Global investment banking fees hit record levels amid a surge in issuance activity in the first half of 2020, according to data from Refinitiv.


TORONTO HOME SALES REBOUND IN JUNE AS MARKET SHRUGS OFF CORONAVIRUS SLOWDOWN

G&M - Rachelle Younglai (2020-07-07)

Toronto home sales rebounded in June, with the average selling price up 12 per cent over the past year, as competition heated up after a brief slowdown from the coronavirus pandemic

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NATIONAL BANK TAKES BIGGER STAKE IN ROBO-ADVISER NEST WEALTH

G&M - Clare O'Hara (2020-07-07)

National Bank of Canada has claimed a larger stake in robo-adviser Nest Wealth as it looks to accelerate online services for clients.


DEUTSCHE BANK SAYS TAKING JEFFREY EPSTEIN AS A CLIENT WAS A ‘MISTAKE,’ WILL PAY $150-MILLION FINE

G&M - JONATHAN STEMPEL, TOM SIMS AND JOHN O'DONNELL (2020-07-07)

Deutsche Bank will pay a US$150-million fine from a New York regulator for allowing disgraced financier Jeffrey Epstein to make payments to Russian models and withdraw suspicious amounts of cash during five years as a client.


CANADA CAUGHT IN THE CROSSFIRE OF A NEW ERA OF ECONOMIC POWER POLITICS

G&M - LOUIS VACHON AND FRÉDÉRICK GAGNON (2020-07-07)

Canadians are often unfamiliar with the concept of “geo-economics,” but recent international events prove that we should learn more about what it means for Canada. Growing tensions with China over the extradition of Huawei’s Meng Wanzhou, a ban by that country on Canadian pork and canola and recent friction over lumber show that power politics is increasingly practised through economic means.


7-ELEVEN TRIALS VOICE COMMANDS FOR PAYMENTS AT PUMP

Finextra - Finextra (2020-07-07)

The internally developed technology allows customers to pay for fuel through the 7Rewards- in-app loyalty programme by using mobile payment options or Siri shortcuts on their Apple iPhone


RBC COMMITS $150 MILLION TO DIVERSITY PUSH, AIMS FOR MORE MINORITY EXECUTIVES

FP - Nichola Saminather (2020-07-07)

RBC joins Bank of America, which announced $1 billion to address racial inequality, and others including Alphabet Inc’s Google and Amazon.com Inc in committing funds for racial justice causes following the death of George Floyd, a Black man killed by a Minneapolis police officer in May.


BANKS EXTEND DEADLINE TO APPLY FOR LOAN DEFERRALS

G&M - James Bradshaw (2020-07-06)

Some of Canada’s largest banks have extended programs that allow clients to defer payments on personal loans through the end of September, signalling that many borrowers still need support even as some early deferrals have expired.


RECORD DEBTS COME DUE FOR CANADIAN OIL PATCH AFTER FIVE YEARS OF CRISIS

G&M - ROD NICKEL AND JEFF LEWIS (2020-07-06)

Six years ago, Canadian oil field services firm Calfrac Well Services commanded a $2.1-billion market value and was poised for U.S. expansion.


TORIES, NDP AT ODDS OVER FEDERAL SPENDING AS LIBERALS PREPARE FISCAL SNAPSHOT

G&M - LEE BERTHIAUME (2020-07-06)

Opposition parties have laid out their demands for the federal Liberal government as Ottawa prepares to update Canadians on the country’s finances after four months of COVID-19 — and where it expects the economy to head for the rest of the year.


LLOYDS BANK CEO ANTóNIO HORTA-OSóRIO TO STEP DOWN IN 2021

Reuters - Reuters (2020-07-06)

Horta-Osório said he would step down from Britain’s biggest domestic bank by June of next year and was leaving with “mixed emotions”.


COMMERZBANK CHAIRMAN AND CEO BOW OUT TO GIVE LENDER A FRESH START

Reuters - Tom Sims, Hans Seidenstuecker (2020-07-06)

The resignations of chief executive Martin Zielke and supervisory board chairman Stefan Schmittmann cap weeks of drama after the U.S. private equity firm last month attacked Commerzbank’s management for failing to do enough to stop the decline.


AND THE NO. 1 STOCK-FUND MANAGER IS…

WSJ - Suzanne McGee (2020-07-06)

After enduring the most volatile market swings in the U.S. stock market in more than three-quarters of a century, even the best-performing mutual-fund managers might be forgiven for wanting to socially distance themselves from anything to do with stocks.


BANKS ARE STILL EXPECTED TO MONITOR HEMP GROWERS’ TRANSACTIONS, FINCEN SAYS

WSJ - WSJ (2020-07-06)

Financial institutions still need to conduct due diligence and monitor transactions for hemp-related businesses, the U.S. Treasury Department’s financial crime unit said, expanding on previous guidance about the industry.


TOUGHER CONDITIONS TO LIKELY DRIVE HIGHER MORTGAGE DEFAULTS: DBRS

Investment Executive - James Langton (2020-07-06)

Mortgage defaults are expected to rise in the wake of a deteriorating job market, says DBRS Morningstar.


CHINESE STOCKS SURGE IN BIGGEST 1-DAY JUMP FOR OVER A YEAR

FT - Harry Dempsey (2020-07-06)

Shares in mainland China and Hong Kong surged as state media threw its weight behind a rally driven on hopes of a swift economic recovery from the coronavirus pandemic.


CHINA WATCHDOG TO PURGE BANK SECTOR OF ‘ILLEGAL’ SHAREHOLDERS

FT - Don Weinland (2020-07-06)

Chinese regulators are publicly purging the banking sector of “illegal” shareholders, many of whom have been caught using financial institutions as ATMs to fund their own projects.


CONSUMER, BUSINESS CONFIDENCE SLUMPS AS COVID-19 CASTS CLOUD OF UNCERTAINTY, BOC SURVEYS FIND

G&M - DAVID PARKINSON (2020-07-06)

The Bank of Canada’s quarterly surveys show a sharp drop in both business and consumer confidence, as the COVID-19 pandemic casts a cloud of uncertainty and caution over both workers and their employers.


COMMERZBANK SHARES JUMP AFTER CEO, BOARD CHAIR QUIT

G&M - Ralph Orlowski (2020-07-06)

Shares in Germany’s struggling Commerzbank rose more than 8 per cent on Monday in the wake of the resignation of the bank’s CEO and board chairman under pressure over the bank’s sagging profits and stock price.


RBC BOOSTS TARGET FOR VISIBLE MINORITIES IN EXECUTIVE ROLES TO 30 PER CENT

G&M - James Bradshaw (2020-07-06)

Royal Bank of Canada is raising its target for visible minorities in executive roles to 30 per cent while also boosting support for young people of colour and Black entrepreneurs. The new commitments comes as the bank’s chief executive acknowledged that systemic racism has been a blind spot in its efforts to promote diversity.


CLASS ACTION SOUGHT AGAINST AVIVA CANADA FOR DENIAL OF BUSINESS CLAIMS DUE TO COVID-19

G&M - Clare O'Hara (2020-07-06)

Insurer Aviva Canada faces a proposed class-action lawsuit that claims Canadian businesses have been denied contagious-disease coverage during the COVID-19 pandemic.


AUTO INSURERS BOOST RELIEF OFFERINGS AMID BACKLASH

G&M - Clare O'Hara (2020-07-06)

Canadian auto insurers are extending pandemic relief for drivers as the industry faces criticism for not doing enough to financially support customers.


SMALL BUSINESS LOANS FLOWED TO HEALTH CARE, CONSTRUCTION AND BIG STATES

G&M - JEANNA SMIALEK, JIM TANKERSLEY AND ALAN RAPPEPORT (2020-07-06)

Data released Monday by the Trump administration showed that businesses in big states like California and Texas received the most in loans from the government’s small business relief program, with health care, professional services and construction among the sectors that have tapped the largest amount of funding.


‘THIS IS ADDICTING’: HOW THE NEW RETAIL INVESTOR MANIA IS CHANGING THE STOCK MARKET GAME

FP - Victor Ferreira (2020-07-06)

He now considers himself a daytrader, and said he is closing in on $10,000 in returns. He said he already doubled his money on a quick trade in Virgin Galactic Holdings Inc. — Richard Branson’s space tourism company — while dabbling in risky psychedelic drug companies and tracking retail investor volumes to identify opportunities for one-day swing trades. He’s even learning technical analysis.


BIOTECH BLIND SPOT: HOW CANADA’S BIG INVESTORS MISSED THE BOOM HAPPENING RIGHT NOW

(2020-07-04)

Lloyd Segal made history two weeks ago, leading the biggest initial public offering ever by a Canadian biotechnology startup. His Montreal-based cancer drug developer, Repare Therapeutics, raised US$253-million and during its first day of trading on the Nasdaq the stock soared by more than 50 per cent, giving the company a valuation of more than US$1-billion. “I think it’s a watershed, Canada is clearly now in the race,” the chief executive, who previously ran three Canadian biotech companies, told The Globe and Mail this week. But, Mr. Segal added: “It wasn’t even the biggest IPO for a biotech company on the Nasdaq that week.” Both Boston-area-based Forma Therapeutics Holdings. Inc. and China’s Genetron Holdings Ltd had raised more. “We’ve come very far but we have a long way to go.” That’s true for the entire Canadian biotech sector. A generation ago, a handful of pharmaceutical developers – including AIDS treatment pioneer Biochem Pharma of Montreal and Vancouver’s QLT Inc. – reached billion-dollar-plus valuations. The success was fleeting. Those early leaders – and the others that tried to follow– were bought out, starved of capital or crashed. Investors retreated and the industry lapsed into a decade-long funk.


SHOPIFY SOARS ABOVE RBC IN MARKET VALUE AS FOUNDER CATAPULTS TOWARD RICHEST CANADIAN

G&M - David Milstead (2020-07-04)

The white-hot run of Shopify shares has widened the company’s lead over Royal Bank of Canada for the title of the country’s most valuable company – and added billions to founder Tobias Lutke’s net worth, moving him closer to becoming the richest Canadian.


SHOPIFY SOARS ABOVE RBC IN MARKET VALUE AS FOUNDER CATAPULTS TOWARD RICHEST CANADIAN

G&M - David Milstead (2020-07-04)

The white-hot run of Shopify shares has widened the company’s lead over Royal Bank of Canada for the title of the country’s most valuable company – and added billions to founder Tobias Lutke’s net worth, moving him closer to becoming the richest Canadian.


RICHARDSON GMP FINED $500,000 IN SETTLEMENT OVER BREACHES BY CALGARY BROKERS

G&M - Jeffrey Jones (2020-07-04)

Richardson GMP will pay a $500,000 fine to settle a case over its failure to adequately supervise two Calgary brokers whose risky investment decisions led to hefty losses among scores of the brokerage’s clients.


BROOKFIELD PUTS US$1-BILLION BEHIND ITS REAL ESTATE PARTNERSHIP

G&M - David Milstead (2020-07-04)

Brookfield Asset Management Inc. is putting US$1-billion behind its belief that investors are undervaluing its real estate partnership in the punishing era of COVID-19.


TURKISH BAD LOAN PLAN RAISES CONCERNS AMONG SOME BANKS: SOURCES

Reuters - Ebru Tuncay, Jonathan Spicer (2020-07-02)

Some Turkish banks are concerned that a “bad bank” plan to house billions of dollars of non-performing loans could require them to book large losses, and they want foreign stakeholders involved, seven industry sources told Reuters.


FED MULLS PROMISES FOR THE FUTURE, APPEARS TO DISCOUNT YIELD CURVE CONTROL

Reuters - Howard Schneider (2020-07-02)

Minutes from the U.S. central bank’s June 9-10 meeting indicate policymakers held a lengthy debate about the critical next steps they may take in setting monetary policy for what they hope will be a continued recovery from a pandemic-driven health and economic crisis.


THE PANDEMIC COULD AFFECT WHEN AND HOW CLIENTS DIVORCE

Investment Executive - Michelle Schriver (2020-07-02)

A divorcing spouse may want to proactively trigger a separation date so that it’s timed with financial events, such as getting laid off or getting hired at another income level, or asset depreciation/appreciation.


ALBERTA DOWNGRADED TO AA- BY FITCH

Investment Executive - James Langton (2020-07-02)

The rating agency said that it expects Alberta to record a deficit of around $20 billion in fiscal 2021, up from the $6.8 billion deficit originally anticipated in the provincial budget


IIROC EXAMINES RETURNING MONEY TO HARMED INVESTORS

Investment Executive - James Langton (2020-07-02)

In a notice setting out its priorities for the current year, the self-regulatory organization (SRO) said it is launching an initiative to help investors who suffer losses due to industry misconduct.


BIG BANKS BOLSTERED BY REFORMS: FSB

Investment Executive - James Langton (2020-07-02)

“The capital ratios of global systemically important banks have doubled since 2011,” the report noted.


U.K. GROUP ISSUES CLIMATE GUIDE FOR FINANCIAL FIRMS

Investment Executive - James Langton (2020-07-02)

The CFRF, which was jointly established by the U.K.’s Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in 2019, aims to develop best practices among regulators and the industry for dealing with the financial risks from climate change.


REGULATORS STICKING TO THEIR PLAN

Investment Executive - James Langton (2020-07-02)

The decision to put an end to fund companies paying trailers to brokers that don’t provide advice stems from a long-running CSA project to reform fund fee structures, which also resulted in the provincial regulators (with the exception of Ontario) moving to ban deferred sales charges (DSCs).


DID A CHINESE HACK KILL CANADA’S GREATEST TECH COMPANY?

Bloomberg - Natalie Obiko Pearson (2020-07-02)

The documents began arriving in China at 8:48 a.m. on a Saturday in April 2004. There were close to 800 of them: PowerPoint presentations from customer meetings, an analysis of a recent sales loss, design details for an American communications network. Others were technical, including source code that represented some of the most sensitive information owned by Nortel Networks Corp., then one of the world’s largest companies.


CANADIAN BANKS’ BOYCOTT OF FACEBOOK UNLIKELY TO MAKE A MAJOR DENT IN SOCIAL MEDIA COMPANY’S COFFERS

G&M - James Bradshaw (2020-07-02)

By halting ad spending on Facebook Inc. for a month, Canada’s largest banks are sending a message to the social-media giant that it must do more to curb hate speech and misinformation, but the lost revenue is unlikely to leave much of a mark.


FED OFFICIAL WARNS COVID-19 BANKRUPTCIES COULD TRIGGER A FINANCIAL CRISIS

G&M - Reuters (2020-07-02)

St. Louis Federal Reserve Bank president James Bullard has warned that a growing number of bankruptcies due to the coronavirus outbreak could lead to a financial crisis, the Financial Times reported.


FED BALANCE SHEET SHRINKS FURTHER, AND STILL NO MAIN STREET LOANS

Reuters - Reuters (2020-07-02)

The U.S. Federal Reserve’s massive stash of bonds and other assets slipped for a third straight week to its smallest size since mid-May, data released by the central bank on Thursday showed.


GERMAN WATCHDOG CHIEF CALLS WIRECARD SCANDAL A 'MASSIVE CRIMINAL ACT'

Reuters - Reuters (2020-07-02)

“Wirecard Bank AG is not insolvent. Payouts to merchants and customers of Wirecard Bank are being executed without restrictions”, Jaffe said in a statement.


CONSUMER INSOLVENCIES IN CANADA PLUNGE BY MOST ON RECORD IN MAY

Bloomberg - Chris Fournier (2020-07-02)

Government support measures and payment deferrals from creditors are keeping Canadian consumers afloat, resulting in the biggest year-over-year decline in insolvencies dating back to 1988.


WALL STREET KNOWS IT’S TOO WHITE. FIXING IT WILL BE HARD.

WSJ - Liz Hoffman and Susan Pulliam (2020-07-02)

Large financial firms have spent a decade talking up diversity, but have little to show for it. Internal practices and client biases make it hard for Black employees to get in the door or obtain big client accounts.


CANADIAN SENIORS RAIDING THEIR HOME EQUITY WITH REVERSE MORTGAGES PICKS UP AGAIN

Better Dwelling - Daniel Wong (2020-07-02)

A reverse mortgage is an equity release program without a fixed repayment schedule. Canadian seniors can take out a loan secured by the equity in their home. The reverse mortgage lender then gives the equity in regular payments, or as a lump sum. It’s similar to a home equity loan, but with one major difference – the payment schedule.


CORPORATE DEFAULTS ON RECORD PACE: FITCH

Investment Executive - James Langton (2020-07-02)

“At the current rate, the annual volume of corporate defaults could exceed the record set during the global financial crisis in 2009,” Fitch said.


CANADA’S FIVE BIG BANKS JOIN ANTI-HATE ADVERTISING BOYCOTT OF FACEBOOK

G&M - Jake Kivank (2020-07-02)

All five of Canada’s biggest banks are joining an international boycott of Facebook over concerns that the platform is complicit in promoting racism, violence and misinformation.


POLICE RAID WIRECARD HEADQUARTERS AS ADMINISTRATOR KICKS OFF ASSET SALES

G&M - ARNO SCHUETZE AND ALEXANDER HÜBNER (2020-07-02)

Police and public prosecutors raided Wirecard’s headquarters in Munich and four properties in Germany and Austria on Wednesday as they widened their investigation into the financial payments company that collapsed last week.


GOVERNMENTS EXCHANGING BANK ACCOUNT DETAILS UNCOVERED $11-TRILLION OF OFFSHORE ASSETS IN 2019

G&M - Reuters (2020-07-02)

Tax authorities in nearly 100 countries saw 10 trillion euros ($11.2 trillion) in offshore assets come to light last year due to the automatic exchange of details for 84 million bank accounts, the OECD said on Tuesday.


MORE CANADIAN OILPATCH COMPANIES SEEK CCAA PROTECTION TO RESTRUCTURE

G&M - Kyle Bakx (2020-07-02)

As a growing number of oilpatch companies are being pushed toward bankruptcy across North America, a number of Canadian players are working with creditors and making moves that experts say are aimed at avoiding such a fate.


TIM HORTONS FACING CLASS-ACTION LAWSUIT OVER APP LOCATION TRACKING

FP - FP (2020-07-02)

The court application filed by Montreal-based law firms LPC Advocat Inc. and Consumer Law Group on Tuesday, cites reporting by the Financial Post from earlier in June, which revealed the Tim Hortons app was logging users’ location in the background when the app wasn’t open. The app was streaming GPS location data to Radar Labs Inc., an American company which analyzes location data to infer where users live and work, and logs a person’s visits to one of Tim Hortons’ competitors, such as Starbucks Corp. or McDonald’s Corp.


GREAT-WEST LIFECO UNIT BUYING CALIFORNIA WEALTH MANAGER FOR UP TO $1 BILLION

FP - FP (2020-07-02)

Personal Capital, based in California, is a hybrid wealth manager that combines a digital platform with advice provided by human advisers, the company said.


GLOBAL CIRCUS COMPANY CIRQUE DU SOLEIL FILES FOR BANKRUPTCY PROTECTION

CBC - Jonathan Monpetite (2020-06-30)

The involvement of Investissement Québec, in the form of $200 million US in debt financing, requires the investors to commit to keeping the company's headquarters in Montreal. 


BMO DISPUTES FED’S FINDINGS IN STRESS TEST ON U.S. SUBSIDIARY

G&M - James Bradshaw (2020-06-30)

Bank of Montreal’s U.S. subsidiary scored the weakest capital reserves in the latest round of stress testing by the Federal Reserve, but the Canadian lender is challenging the American central bank’s conclusions.

In a worst-case scenario from the most recent Dodd-Frank Act Stress Test (DFAST), the Fed projects that the BMO unit would suffer a steep drop in a key ratio that helps measure a bank’s capacity to absorb losses. In the test, the common equity Tier 1 (CET1) ratio for the bank’s U.S. arm, BMO Financial Corp., falls from 11.2 per cent to 5.4 per cent – the lowest capital level for any of the 33 banks evaluated.

The results are based on the Fed’s “severely adverse scenario,” which estimates the impact if U.S. unemployment were to spike to 10 per cent, real GDP contracted by 8.5 per cent, equity prices fell by half and housing prices declined by 28 per cent. Even then, BMO’s capital levels would stay above the regulatory minimum set by the Fed.

BMO’s results only reflect its U.S. operations, and not the bank as a whole. As of April 30, BMO had an overall CET1 ratio of 11 per cent, similar to its Canadian peers, which averaged 11.2 per cent in the second fiscal quarter.

In a statement, BMO said it is “well capitalized” and “does not agree with the [the Federal Reserve Board’s] projections for both non-interest income and non-interest expenses, as they differ significantly from previous DFAST results and [BMO Financial Corp.’s] actual 2019 financial results.”

 

The bank said it “expects to request the [Federal Reserve Board] to reconsider” the results.

The Fed has also capped U.S. banks’ dividend payments at current levels and suspended share buybacks, matching terms already imposed on Canadian banks by their domestic regulator, the Office of the Superintendent of Financial Institutions. Canadian bank CEOs have said they see no reason to cut their payouts

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BMO’S BUSINESS-BANKING HEAD HIRED BY NATIONAL AUSTRALIA BANK

G&M - Reuters (2020-06-30)

National Australia Bank, the country’s third largest lender, on Monday named Canada-based banking executive Andrew Irvine to head its business & private banking division as the industry grapples with slowing revenues in a coronavirus-hit economy.


AS 330,000 ALBERTANS LOSE THEIR JOBS, KENNEY UNVEILS TAX CUTS, $10B IN SPENDING TO LIFT ECONOMY

FP - Geoffrey Morgan (2020-06-30)

Alberta Premier Jason Kenney says he’s recently been reading about former U.S. President Franklin Roosevelt’s stimulus-spending response to the Great Depression of the 1930s.


GOLDMAN SACHS SAYS IT'S CLIMBING TOWARD FED'S CAPITAL DEMANDS

Reuters - David Henry, Elizabeth Dilts Marshall 3 MIN READ (2020-06-30)

The bank has already bolstered that measurement, known as a “CET1 ratio,” to “above 13%” so far this quarter, Chief Executive David Solomon said in the statement.


BANK OF THAILAND CLOSELY WATCHING IMPACT OF GOLD TRADING ON BAHT

Bloomberg - Suttinee Yuvejwattana (2020-06-30)

Thailand central bank is closely monitoring gold transactions that could affect the currency, Don Nakornthab, a senior director in the Bank of Thailand’s economic and policy department said.


WELLS FARGO TO CUT DIVIDEND; OTHER BIG BANKS HOLD STEADY

WSJ - Laura Kusisto, Ben Eisen (2020-06-30)

The fourth-largest U.S. bank, unlike its major rivals, expects to cut its dividend for the first time in more than a decade to help weather the coronavirus pandemic.


FED OPENS LENDING PROGRAM FOR NEW ISSUANCE OF CORPORATE DEBT

WSJ - Nick Timiraos (2020-06-30)

The central bank opened its $500 billion lending program to support issuance of new debt by large corporations, the last of nine emergency programs it is running to backstop lending markets reeling from the pandemic.


MONEY-MARKET SHIFTS ARE BAD NEWS FOR PROFIT-STARVED GLOBAL BANKS

WSJ - Mike Bird (2020-06-30)

Last week, Fidelity Investments said it would close two institutional prime money-market funds with a total of around $14 billion in net assets. That’s an ominous portent for some non-U.S. banks, which have increasingly come to rely on such funds to raise dollars they can’t easily acquire at home.


CANADIAN MORTGAGE DEBT EXPLODES IN GROWTH, AS PAYMENT DEFERRALS HIT OVER 743,00

Better Dwelling - Daniel Wong (2020-06-30)

Canadian mortgage credit pushed to another all-time high, at a rapid pace of growth. The outstanding balance of mortgage debt reached $1.68 trillion in May, up 0.6% from a month before. This represents an increase of 6.0% compared to the same month last year. All of those numbers are very large, but with lowered sales volume – what gives?


GREAT WEST SUBSIDIARY BUYING PERSONAL CAPITAL IN DEAL WORTH AT LEAST US$825M

Investment Executive - CP (2020-06-30)

Great-West subsidiary Empower Retirement said Monday that it will pay US$825 million for the hybrid wealth manager that combines a digital experience with personalized advice delivered by people. It could spend up to US$175 million more, if specific target growth objectives are met.


RECORD GOLD PRICE FORECASTS BOOST PROSPECTS FOR JUNIOR MINING COMPANIES

Investment Executive - Dan Healing (2020-06-30)

Unexpectedly strong investor interest led to raising the proposed financing to $5 million, and then again to $5.3 million, more than enough for this summer’s exploratory drilling program.


TOUGH TALK, TARIFF THREATS RESURFACE AS USMCA READIES FOR WEDNESDAY DEBUT

G&M - James Mccarten (2020-06-29)

If the long-awaited debut of Canada’s new trade pact with the United States and Mexico heralds a new dawn in North American relations, U.S. Trade Representative Robert Lighthizer sure has a funny way of showing it.


HOW COVID ADVANCED THE WEALTH MANAGEMENT SECTOR

G&M - Clare O'Hara (2020-06-29)

Canada’s biggest investment firms are accelerating online services as they move to quickly adapt to clients’ postpandemic expectations, according to the head of Bank of Montreal’s wealth management operation.


KKR, APOLLO AMONG SUITORS FOR NATIONAL AUSTRALIA BANK'S WEALTH UNIT

Reuters - Paulina Duran (2020-06-29)

The sale of the unit, called MLC, could fetch more than A$1 billion ($688 million), said two of the sources, who declined to be identified as the negotiations are private.


U.S. BANK SHARES DROP AS FED SETS LIMITS FOLLOWING STRESS TESTS

Reuters - Caroline Valetkevitch (2020-06-29)

Shares of U.S. banks dropped on Friday, with Wells Fargo’s (WFC.N) stock falling more than 6% and Goldman Sachs Group Inc (GS.N) down 7%, after the Federal Reserve capped dividend payments and barred share buybacks until at least the fourth quarter after its annual stress test.


FACEBOOK AD BOYCOTT CAMPAIGN TO GO GLOBAL, ORGANIZERS SAY

Reuters - Sheila Dang (2020-06-29)

The renewed push to urge more companies outside of the United States to join demonstrates the level of frustration felt by social justice groups and the companies that support them over Facebook’s lack of action on misinformation and hate speech, Steyer said.


THE U.S.-CHINA FEUD GETS NASTY

Bloomberg - Jennifer A Dlouhy and Todd Shields (2020-06-29)

The U.S. and China are moving beyond bellicose trade threats to exchanging regulatory punches that threaten a wide range of industries including technology, energy and air travel.


HOW SAUDI ARABIA’S $15.6 BILLION BANK MERGER WOULD STACK UP

Bloomberg - Archana Narayanan (2020-06-29)

The combination of National Commercial Bank and rival Samba Financial Group would create the third-largest lender in the Gulf Cooperation Council and a national champion to compete with regional players.


MONEY-MARKET SHIFTS ARE BAD NEWS FOR PROFIT-STARVED GLOBAL BANKS

WSJ - Mike Bird (2020-06-29)

Fidelity’s closure of some prime money- market funds won’t create any immediate issues for foreign banks, but it is a negative omen of long-term developments.


BANKS HAVE NO IDEA WHO’S CREDITWORTHY ANYMORE

WSJ - ANNAMARIA ANDRIOTIS (2020-06-29)

Lenders have pulled back sharply on lending to U.S. consumers during the coronavirus crisis. One reason: They can’t tell who is creditworthy anymore.


AUTOMAKERS, TECHNOLOGY FIRMS ARE LARGEST COMPONENTS OF FED’S CORPORATE-BOND PURCHASES

WSJ - Nick Timiraos (2020-06-29)

The central bank disclosed names of 794 companies whose bonds it began purchasing this month.


FED LOOKS DOWN UNDER FOR RATE STRATEGY

WSJ - James Glynn (2020-06-29)

With the Fed considering a new monetary policy tool to help hold interest rates low amid the downturn, clues to the tactic’s effectiveness can be found far away: in Australia.


ICO ISSUER AGREES TO RETURN OVER US$1 BILLION TO INVESTORS

Investment Executive - James Langton (2020-06-29)

A U.S. court approved settlements between the U.S. Securities and Exchange Commission (SEC) and Telegram Group Inc. — a company based in the British Virgin Islands that operates an encrypted messaging app — which will see the firm return US$1.2 billion to investors and agree to pay a US$18.5 million penalty.


FEDERAL BANKING AGENCIES EASE VOLCKER RULE RESTRICTIONS

Investment Executive - Martin Crutsinger (2020-06-29)

The Federal Reserve and four other regulatory agencies announced on Thursday that they have finalized a rule that will ease restrictions curtailing the ability of banks to make investments in such areas as hedge funds.


HERE’S HOW P&C PROS SAY THE RECESSION WILL IMPACT INSURANCE

Canadian Underwriter - Adam Malik (2020-06-29)

“There’s not a lot of great cheer about a slow recovery. But, simply to say, we’ve been through worse before and our industry responds to do their very best for consumers and I would expect exactly the same this time,” said Alister Campbell, president and CEO of the Canadian Property and Casualty Insurance Compensation Corporation (PACICC).


FORGET THE V-SHAPED RECOVERY. MILLIONS OF U.S. FAMILIES CAN’T EVEN PAY RENT

G&M - Eric Reguly (2020-06-29)

f there is one image that captures the plight of the United States in full pandemic, it is the one of Americans in cars lining up for hours to get free groceries at a local food bank. The lineup in San Antonio, Tex., saw 10,000 people waiting for handouts.


TIM HORTONS MOBILE ORDERING APP'S USE OF DATA TO BE INVESTIGATED BY CANADA'S PRIVACY COMMISSIONER

CBC - Pete Evans (2020-06-29)

Tim Hortons is being investigated by Canadian privacy authorities after media reports raised concerns about how its smartphone app may be collecting and using data on people's movements as they go about their daily activities.


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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.


UBS WEALTH BANKERS GET DOSE OF CREDIT SUISSE TONIC IN KHAN PLA

Bloomberg - Patrick Winters and Marion Halftermeyer (2020-12-17)

Colleagues say the Pakistan-born executive is enthusiastic, energetic and talented. Former associates have described him as confident, even overly so. That said, he knows the business from several angles: Khan was a UBS auditor at Ernst & Young and a key competitor at Credit Suisse.


HOW CAN INSURANCE BROKERS USE RATE COMPARISON SITES TO BOOST THEIR BOOKS OF BUSINESS?

Insurance Business - Bethan Moorcraft (2020-12-07)

Enter, rate comparison websites. They’re all the rage in the UK and the USA, where consumers use comparison sites to shop for insurance much like Canadians do when comparing travel costs on sites like Expedia and Trivago. But Canadians are slowly starting to catch on to the insurance comparison trend. They’re searching for and finding platforms like LowestRates.ca, which is enabling consumers to compare insurance premium prices across a number of product lines, primarily in auto and home insurance.


BOAZ MANOR, BUSINESS PARTNER INDICTED ON FRAUD CHARGES IN U.S. OVER BLOCKCHAIN VENTURE

FP - Barbara Shecter (2020-10-20)

Boaz Manor, a former Canadian hedge fund manager who served jail time following the collapse of Portus Alternative Asset Management Inc. in 2005, was indicted Friday on fresh criminal charges in the United States in connection with an alleged securities fraud scheme at an entirely different venture: a New York-based blockchain technology startup.


FSIM briefings and developments reports



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GOVERNMENT’S DEBT LOAD TO JUMP TO $1.2-TRILLION BY 2021

Calling COVID-19 “the challenge of our generation,” Finance Canada says the toll of COVID-19 on the broader economy in 2020 is expected to be the largest and most sudden economic contraction since the Great Depression. Private sector economists, they add, expect an annualized decline of over 40 per cent in Canada’s real GDP in the second quarter of this year. “The drop in real GDP is expected to be at its deepest in the second quarter of 2020,” they write. They also expect the economy to contract by 6.8 per cent in 2020, before rebounding 5.5 per cent in 2021.


FLASH STORM HITS SAME AREAS OF TORONTO AS IN 2013 CAT EVENT. WAS THE DAMAGE THE SAME?

The Wednesday storm hit a pocket of Toronto, mainly in the city’s west-end neighbourhoods of The Junction and High Park, as well as parts of Etobicoke and North York. “We kind of got lucky [Wednesday], in that the rain was about a half-hour long and then the storm moved out,” McGillivray said. “It still dumped a heck of a lot of rain.”


INVESTORS SHIFTING TO CORPORATE CREDIT

 Phil Mesman, head of fixed income at Toronto-based Picton Mahoney Asset Management, described the rally in fixed income, backed by central bank support, as a “gift” amid economic uncertainty.



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