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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.


About

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

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

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

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Research

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

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.


B.C. ECONOMIC BRIEFING

Central 1 - Central 1 (2020-12-08)

The unemployment rate edged lower to 10.7 per cent from 11.1 per cent in July as labour force participation edged up. Metro Vancouver’s rate came in at 12.4 per cent.


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.


U.S. RETAIL INSTALMENT PLAN FINANCER AFFIRM BUYS CANADA’S PAYBRIGHT FOR $340-MILLION

G&M - Sean Silcoff (2020-12-04)

PayBright, a Canadian provider of a fast-growing form of financing for e-commerce customers, has been sold to San Francisco-based Affirm Holdings Inc. for $340-million in cash and equity, on the eve of Affirm’s initial public offering.


CANADA’S BIG BANKS FACE THEIR NEXT PANDEMIC CHALLENGE: HOW TO GROW IN 2021

G&M - James Bradshaw (2020-12-04)

Canada’s big banks have been building defences against the coronvirus pandemic at the expense of profits for much of the past fiscal year. With cases of COVID-19 back on the rise, the challenge they face in 2021 will be finding ways to start growing again amid a recovery that is expected to be slow and uneven.


CIBC PROFIT TOPS FORECASTS; NAMES KATHARINE STEVENSON AS NEXT CHAIR

G&M - James Bradshaw (2020-12-04)

Canadian Imperial Bank of Commerce reported lower fiscal fourth-quarter profit but still earned more than analysts had expected, as the bank named its next board chair.


BANKS FACE SLOWING TRADING, UNDERWRITING ACTIVITY AFTER BOOM IN 2020

G&M - Mark Rendell (2020-12-04)

Bank executives are warning that the strong results from their capital markets divisions this year, driven by robust trading and debt underwriting, will be hard to replicate in 2021. Mergers and acquisition activity, however, is expected to be a bright spot next year as relatively strong companies snap up pandemic-weakened competitors.


CLIMATE CHANGE COSTS TAKING INCREASING CHUNK OFF CANADA’S ECONOMIC GROWTH, STUDY FINDS

G&M - Bob Weber (2020-12-04)

Using data from government sources as well as groups including the Insurance Bureau of Canada, it concludes weather-related disaster costs are increasing dramatically. It says the number of such disasters had risen to 27 a year in 2016 from an average of eight annually in the early 1970s.


WE’LL PAY FOR ALL THESE DOWN PAYMENTS

FP - Jack M. Mintz (2020-12-04)

The fiscal update does not say by how much each dollar of government spending increases GDP but during the pandemic it must be low. Household incomes rose by 13 per cent during the downturn, more than in any other OECD country (even the U.S. during its election year). But despite all this new money, households did not spend more. Instead, our household saving rate jumped by 23 per cent of personal disposable income, more than in any other country. The update spins this embarrassing fact by saying Canadians were getting a “down payment” now to spend later.


CREDITLOANS CANADA FINANCING INC. (O/A “PROGRESSA”) AND CREDITLOANS CANADA CAPITAL INC. (“CAPITAL INC.”)

Insolvency Insider - Insolvency Insider (2020-12-04)

Creditloans Canada Financing Inc. (o/a "Progressa") and Creditloans Canada Capital Inc. (“Capital Inc.”) obtained protection under the CCAA on September 30, listing approximately $67.0 million in liabilities and $47.0 million in assets.


GOVERNMENTS HAVE PREVENTED 'ZOMBIE' COMPANIES FROM DECLARING BANKRUPTCIES — BUT A RECKONING MAY COME SOON

FP - Martin Sandbu (2020-12-04)

In a short Twitter thread last month, Olivier Blanchard, former chief economist of the International Monetary Fund and past president of the American Economic Association, reassessed how the economic effects of the pandemic had played out compared with what he had expected. One striking observation was: “I expected a lot of inefficient bankruptcies, due to high debt rather than lack of viability post-COVID. This . . . does not seem to be the case. The proportion of low productivity firms in bankruptcies appears to be roughly the same as usual.”


BIG SIX BANKS PULL OFF CLEAN SWEEP OF EARNINGS SEASON, AS CIBC AND TD BEAT EXPECTATIONS

FP - Geoff Zochodne (2020-12-04)

Canada’s Big Six lenders pulled off a clean sweep of their fourth-quarter financial results, as both Canadian Imperial Bank of Commerce and Toronto-Dominion Bank announced earnings on Thursday that topped analysts’ expectations even amid the conditions brought on by the coronavirus pandemic.


U.S. BANK LOBBY SPENDS $1 MILLION ON AD BLITZ FOR REPUBLICAN PERDUE IN GEORGIA U.S. SENATE RUNOFF

Reuters - Pete Schroeder (2020-12-04)

The largest U.S. bank lobby group is spending $1 million on television ads to boost Republican Senator David Perdue, in a bid to ensure the Senate remains in Republican hands after Georgia runoffs in January, according to federal filings.


MORE THAN 400 LAWMAKERS FROM 34 COUNTRIES BACK 'MAKE AMAZON PAY' CAMPAIGN

Reuters - Paul Sandle (2020-12-04)

More than 400 lawmakers from 34 countries have signed a letter to Amazon.com Inc boss Jeff Bezos backing a campaign that claims the tech giant has “dodged and dismissed … debts to workers, societies, and the planet,” organisers said.


BANK BONUSES CLIMB 3.9% IN CANADA AS VIRUS STOPS ‘CRAZY’ PAYOUTS

Bloomberg - Kevin Orland and Doug Alexander (2020-12-04)

Canada’s biggest banks set aside 3.9% more for bonuses, a relatively small increase in a year when record revenue from trading and dealmaking helped firms weather the Covid-19 pandemic.


HOME SALES SLOW IN CANADA’S HOTTEST MARKETS AS CONDO GLUT BUILDS

Bloomberg - Ari Alstedter (2020-12-04)

In Vancouver, which has Canada’s most expensive real estate, home sales slid 17% on an unadjusted basis compared with a month earlier, the Real Estate Board of Greater Vancouver said Wednesday. Prices were more or less flat in both cities compared with October.


ANT, GRAB WIN SINGAPORE DIGITAL BANK LICENSES ALONG WITH SEA

Bloomberg - Chanyaporn Chanjaroen and Yoolim Lee (2020-12-04)

Singapore joins the U.K. and Hong Kong in opening up its banking system to purely digital entrants, as it seeks to inject innovation and competition into a market dominated by traditional lenders. The permits are coveted given the city’s status as a rapidly growing wealth management center and a gateway to Southeast Asia, where the digital lending market is expected to quadruple in five years.

“MAS applied a rigorous, merit-based process to select a strong slate of digital banks,” Managing Director Ravi Menon said in the statement. “We expect them to thrive alongside the incumbent banks and raise the industry’s bar in delivering quality financial services, particularly for currently underserved businesses and individuals.”


TORONTO REAL ESTATE SEES SUBURBAN PRICES SOAR, WHILE CONDOS SLIDE FURTHER FROM PEAK

Better Dwelling - Kaitlin Last (2020-12-04)

The price of a typical home is rising very quickly, but those gains are far from being spread evenly. TRREB reported the price of a typical home reached $902,500 in November, up 10.56% from the same month last year. In the City, the price reached $958,200, up 5.95% from last year. This means suburban homes are rising much faster, with most of the gains concentrated in detached homes. 


TEA AND CHRIS NICOLA TO DEPART CI DIRECT INVESTING

Investment Executive - Rudy Mezzatta (2020-12-04)

CI Direct Investing is the entity created when parent company CI Financial announced in May that it planned to merge Vancouver-based Wealth Bar and CI’s direct brokerage Virtual Brokers into one platform earlier this year. CI also acquired the remaining 25% stake it didn’t already own in WealthBar at that time.


CSA TACKLES TRADERS WHO “SHORT AND DISTORT”

Investment Executive - James Langton (2020-12-04)

Critics have long complained that the Canadian approach to short selling generally is too lax. Yet, regulators have defended the Canadian regime and made the case for ensuring that short selling is part of the market as it contributes to market liquidity and price discovery.


CANADA ADDS 62,000 JOBS IN NOVEMBER; UNEMPLOYMENT RATE FALLS TO 8.5 PER CENT

G&M - Matt Lundy (2020-12-04)

November’s job gain was the weakest since the recovery began in May. However, it was also better than expected. The median estimate from economists was for a gain of 20,000 positions, with several calling for a decline due to tighter COVID-19 restrictions.


CANADA’S RAPIDLY APPROACHING FISCAL CRISIS ISN’T DRIVEN BY THE PANDEMIC

G&M - Andrew Coyne (2020-12-04)

Possibly we will discover the departure of Paul Rochon as deputy minister of finance the day after the fall economic statement was not entirely coincidental. Were I in his place, I would not wish to be associated with that dog’s breakfast of bookkeeping tricks, uncosted spending and rosy scenarios, either.


CHRYSTIA FREELAND VETTING AT LEAST FIVE CANDIDATES FOR NEW FINANCE CANADA DEPUTY

G&M - Andrew Willis (2020-12-03)

Finance Minister Chrystia Freeland is looking outside her own department for the new second-in-command who will help steer Canada’s economy through the pandemic and the $100-billion stimulus spending campaign that will follow.


BOJ'S SUZUKI SAYS CENTRAL BANK SHOULD ALLOW YIELD CURVE TO STEEPEN MORE

Reuters - Leika Kihara (2020-12-03)

Under its yield curve control policy, the BOJ seeks to keep short-term interest rates at around -0.1% and 10-year bond yields around zero as part of efforts to revive the economy with low borrowing costs.


HOW AMERICAN INVESTORS ARE GOBBLING UP BOOMING BITCOIN

Reuters - Tom Wilson, Alun John (2020-12-03)

East Asia, North America and Western Europe are the biggest bitcoin hubs, with the first two alone accounting for about half of all transfers, according to Chainalysis, which gathers data by region with tools such as tagging cryptocurrency wallets.


MORGAN STANLEY’S WILSON SAYS STOCKS OVERBOUGHT, RISK CORRECTION

Bloomberg - Adam Haigh and Alix Steel (2020-12-03)

U.S. equities are overbought and at risk of a correction after their recent surge, according to Morgan Stanley’s Mike Wilson.

One key risk that most people are overlooking is that Treasury yields continue to march higher, which could create jitters that send stocks lower, said the firm’s chief investment officer who began his career at the bank more than 30 years ago. “The market is overbought and the market is probably a little bit overvalued quite frankly because interest rates are finally now starting to catch up,” Wilson said on Bloomberg TV. “The risk in the market now is that as 10-year yields finally start catching up, we have a valuation reset because stocks are a long duration asset, particularly the U.S. stock market.”


CANADIAN REALTOR COMMISSIONS ARE GROWING OVER 11X FASTER THAN THE ECONOMY

Better Dwelling - Stephen Punwasi (2020-12-03)

Canadian real estate agents must be looking forward to a very jolly Christmas. Statistics Canada (Stat Can) data shows ownership transfer costs, which are primarily sales commissions, reached a record high in Q3 2020. The rate of growth for the segment is now growing 11x faster than GDP.


SUN LIFE CEO DEAN CONNOR WILL RETIRE IN AUGUST

Investment Executive - CP (2020-12-03)

The company’s current executive vice-president and chief financial officer, Kevin Strain, will take over Connor’s presidential duties on Dec. 15.


“TECTONIC FORCES” COULD CAUSE ECONOMIC UPHEAVAL: POLOZ

Investment Executive - Fiona Collie (2020-12-03)

People expecting 2% inflation may be in for a surprise.


EM BANKS FACE NEGATIVE OUTLOOK, INSURERS STABLE: MOODY’S

Investment Executive - James Langton (2020-12-03)

These forces — an aging population, growing indebtedness, technological progress, rising inequality and climate — are “forces of nature, and their interaction can give rise to sudden, earthquake-like eruptions of economic and financial volatility,” said Poloz, in a virtual keynote address at Franklin Templeton’s 2021 Investment Outlook on Tuesday.  


INSURANCE REGULATORS EXPAND SCOPE OF INQUIRY INTO BEST TERMS PRICING

Canadian Underwriter - David Gambrill (2020-12-03)

“Several insurance companies place bids on the [strata] complex to insure different percentages of the whole value, presumably to spread the risk in the event of a catastrophic loss,” Pazder notes in an online article describing the process. “Thus, if there were three bids for 90% of the value of the complex (i.e. $0.23/$100 for 30% [of the property], $0.25/$100 for 30%, and $.027 for 30%, the insurance broker still needs to pick up an extra 10% coverage (as s.149 of the Strata Property Act requires insurance for full replacement cost, not just a portion thereof).


HOMEBUYERS BRACE FOR PAIN IN A POST-PANDEMIC MARKET

Bloomberg - Conor Sen (2020-12-03)

Recent housing data show how tight inventories already are. The supply of existing homes fell to 2.5 months in October, a record low for a period when normal inventory levels are four to five months of supply. For new homes, the months’ supply of inventory fell to 3.3 in October, also a record low.


AIRBNB ASKED CANADA FOR A BAILOUT. CANADA SLAPPED AIRBNB WITH A TAX.

ThinkPol - ThinkPol (2020-12-03)

“In order to ensure that the GST/HST applies consistently and effectively with respect to supplies of short-term accommodation in Canada facilitated by platforms, the Government proposes to apply the GST/HST on all supplies of short-term accommodation in Canada facilitated through a digital platform,” according to the federal government’s fiscal update released on Monday by Finance Minister Chrystia Freeland[1].


CIBC QUARTERLY PROFIT SLUMPS ON U.S. COMMERCIAL BANKING WEAKNESS

G&M - Reuters (2020-12-03)

Canadian Imperial Bank of Commerce reported a 14.3% fall in quarterly profit on Thursday, as weakness at its U.S. commercial banking and wealth management businesses offset gains in capital markets unit.


TORONTO, VANCOUVER HOME SALES BOOM AS BUYERS SEEK BIGGER SPACES

G&M - Rachelle Younglai (2020-12-03)

The work-from-home trend continues to increase property sales and prices outside the core areas of Toronto and Vancouver, while depressing downtown condo prices as buyers seek bigger spaces.


INFLATION A KEY RISK AS CENTRAL BANKS NAVIGATE PANDEMIC: BLACKROCK VICE-CHAIRMAN

G&M - Tim Shufelt (2020-12-03)

Right now, central banks have strategies where they deliberately tend to overshoot inflation. There are also a number of supply shocks to the global economy. One of them is a pivot to sustainability. Another is building a more resilient global supply chain. Both of those will increase production costs for perfectly good reasons.

The pandemic has pushed central bankers to the forefront of economic policy, intervening in markets with unlimited firepower and financing enormous government budget deficits.


CIBC BEATS EXPECTATIONS DESPITE PROFIT SLIDE TO $1.02B

CBC - CP (2020-12-03)

The bank reported Thursday it earned nearly $1.02 billion or $2.20 per diluted share for the quarter ended Oct. 21, down from $1.19 billion or $2.58 per diluted share in the same quarter last year.


CANADIAN LANCE UGGLA AND CPPIB STRUCK IT RICH BUILDING IHS MARKIT. NOW THEY’RE SELLING TO S&P GLOBAL

G&M - Tim Kiladze (2020-12-02)

He built it from scratch in a barn in 2003, and now, almost out of the blue, Lance Uggla is selling his baby for US$39-billion.

On Monday, S&P Global Inc., the American financial data conglomerate that offers everything from credit ratings to market indexes, announced it is buying London-based IHS Markit Ltd. 

INFO-N -5.89%decrease    in an all-stock transaction. After including $4.8-billion of net debt, the deal is the largest announced this year, and if it is approved by shareholders Mr. Uggla will relinquish operational control of IHS Markit and leave the stage.


OTTAWA GIVES HOUSEHOLDS $7 FOR EVERY DOLLAR OF INCOME LOST IN PRIVATE SECTOR

G&M - Patrick Brethour (2020-12-02)

Statistics Canada data show that primary household income, or private-sector earnings, barely dropped between the first quarter of 2020 and third quarter, falling by just 1 per cent, or $15.2-billion to $1.52-trillion. But transfers from government, which include existing programs such as employment insurance plus new coronavirus-era programs, made up for that drop many times over. Those transfers rose by $103.8-billion from the first quarter to the third quarter, meaning that the government effectively gave households nearly $7 for each dollar of lost private-sector income. Those figures are seasonally adjusted and stated on an annualized basis.


BMO PROFIT JUMPS 33% TO $1.6B

CBC - CP (2020-12-02)

"Going forward, BMO Capital Markets' energy business will be focused on the Canadian energy market, where we believe our competitive positioning is strongest and where we will continue our deep and long-standing commitment to supporting clients," he told analysts on a conference call to discuss the bank's latest financial results.


SCOTIABANK CEO 'CAUTIOUSLY OPTIMISTIC' ABOUT ECONOMIC OUTLOOK DESPITE PROFIT DROP TO $1.9B

CBC - CP (2020-12-02)

"In Canada, retail spending has reached pre-pandemic levels, the housing market is experiencing robust growth and auto sales have largely recovered."


TOP FINANCE AIDE STEPS DOWN AFTER TRUDEAU DETAILS DEFICIT

Bloomberg - Kait Bolongaro and Erik Hertzberg (2020-12-02)

The top bureaucrat at Canada’s finance ministry announced he is leaving his post a day after Justin Trudeau’s government unveiled an update on hundreds of billions in emergency Covid-19 spending.


SCOTIABANK, BMO TRADING GIVES RETAIL UNITS TIME TO RECOVER

Bloomberg - Kevin Orland (2020-12-02)

Trading and investment banking are showing strength at Bank of Nova Scotia and Bank of Montreal, propping up profits as the lenders’ retail franchises continue on the long road to recovery from the Covid-19 crisis.

Earnings surged 40% at Bank of Montreal’s capital-markets business while gaining 14% in Scotiabank’s global banking and markets division in the fiscal fourth quarter. Those increases helped both companies’ overall results top analysts’ estimates, taking pressure off personal and commercial banking units that are on the mend from the worst of the pandemic.    


TECH STARTUPS WANT TO SELL YOU THEIR LIFE INSURANCE

WSJ - Leslie Scism (2020-12-02)

Technology startups are ready to challenge traditional life insurers head on. 


DRIVER DATA IS A HELP AND A HAZARD FOR AUTO INSURERS

WSJ - Rochelle Toplensky (2020-12-02)

Real-world driving data from connected cars is both a treasure trove and a mine-field for auto insurers. Big banks’ efforts to deal with financial technology challengers offer some useful lessons.


CANADA ANNOUNCES A NATIONAL FOREIGN BUYER TAX IS COMING NEXT YEAR. IT’S USELESS

Better Dwelling - Stephen Punwasi (2020-12-02)

When paired with cheap money and other demand inducement schemes to push prices higher, the tax is just optics. There’s more than enough domestic speculators to fill the gap, with enough incentive. The measure provides the perception of doing something, but accomplishing very little. The opportunity is still wide open for domestic speculators, who now have a tactical advantage.


GLOBAL RESPONSE IS NEEDED TO PREVENT A DEBT CRISIS IN AFRICA

FT - Cyril Ramaphosa (2020-12-02)

Indeed, based on the latest IMF and World Bank analysis, six sub-Saharan African countries are now in debt distress, while 11 are at high risk of distress. Before the pandemic, sub-Saharan Africa’s debt load was forecast at 56.4 per cent of gross domestic product for this year; the current projection is for 65.6 per cent. To stop this rising level of debt turning into a crisis, several steps need to be taken now.


WOMEN OUTPACE MEN IN SIGNING UP TO INVESTMENT PLATFORMS

FT - Madison Darbyshire (2020-12-02)

Women are signing up to investment platforms at faster rates than men, as investors flock to trading to take advantage of market volatility and lower prices. Investors have registered on platforms in record numbers since March and trading volumes have remained heightened since the market sell-off earlier this year.


RBC TOPS FORECASTS AS LOAN-LOSS PROVISIONS DECLINE, COSTS FALL

G&M - James Bradshaw (2020-12-02)

Royal Bank of Canada’s profit rose modestly in the fiscal fourth-quarter, as the bank set aside less money to cover potential loan losses and clamped down on costs.

The bank’s earnings were stronger than expected, bolstered in part by a surge in returns from capital markets. But as with two rival banks that also outperformed analysts’ expectations

Loading... on Tuesday, a decline in provisions for credit losses – the money banks set aside to cover loans at risk of defaulting – was the driving force.


SALESFORCE TO BUY SLACK FOR US$27.7-BILLION

G&M - MICHAEL LIEDTKE AND MATT O’BRIEN (2020-12-02)

Business software pioneer Salesforce.com is buying work-chatting service Slack for US$27.7-billion in a deal aimed at giving the two companies a better shot at competing against long-time industry powerhouse Microsoft.


THE CPP PREMIUM HIKE FOR 2021 LOOKS BAD, BUT IT WILL DO A LOT OF GOOD

G&M - Rob Carrick (2020-12-02)

In a year of plenty, we’d shrug off the coming increase in the amount of our paycheques that goes toward Canada Pension Plan premiums.


SUN LIFE NAMES KEVIN STRAIN AS NEXT CEO AS DEAN CONNOR ANNOUNCES RETIREMENT

G&M - Clare O'Hara (2020-12-02)

Sun Life Financial Inc.’s chief financial officer Kevin Strain will be taking over as the insurer’s chief executive next year as Dean Connor announces his retirement after a decade at the wheel.


CAUTION STILL RULES THE DAY FOR BIG BANKS AS CAPITAL SURPLUS SWELLS

FP - Geoff Zochodne (2020-12-02)

RBC’s CET1 ratio rose because of a few factors, such as the profits it generated and customers paying down their debts. However, a federal regulator, the Office of the Superintendent of Financial Institutions, expects banks to refrain from boosting their dividends or buying back stock right now because of the pandemic. OSFI also requires that the Big Six have a CET1 ratio of at least nine per cent, which for RBC means it has approximately $19 billion of surplus, high-quality capital, such as common shares and retained earnings.


MORTGAGE REFINANCING WAVE NOT LETTING UP, TO INVESTORS’ CHAGRIN

Bloomberg - Christopher Maloney (2020-12-02)

Mortgage investors will carry unpleasant memories of this year’s surging prepayment speeds, yet as the calendar flips there appears little chance of near-term relief.


NATIONAL BANK CEO SEES M&A HELPING RESULTS AS TRADING BOOM COOLS

Bloomberg - Kevin Orland (2020-12-02)

National Bank of Canada Chief Executive Officer Louis Vachon expects an increase in mergers and acquisitions to bolster the company’s financial-markets business in the year ahead, propping up results as a boom in trading cools off.


PRESSURE RISES FOR SMALL BANKS TO IMPROVE LIQUIDITY VISIBILITY

Bobsguide - Emma Olsson (2020-12-01)

“While we don’t know what that pandemic or that market issue will be in the future, certainly what does help is visibility, being able to know where you are as a firm right now, rather than having to phone your agent or having to wait for a report to generate overnight – that’s no longer acceptable.”


TAX AND SPEND ‘FISCAL GUARDRAILS’ SHROUDED IN FOG AS NET FEDERAL DEBT TO PASS $1-TRILLION MARK

G&M - Patrick Brethour (2020-12-01)

Ms. Freeland isn’t saying. “We’re going to roll those out when we roll out more details of our growth plan,” she said when pressed by reporters for specifics


FORMER SUN LIFE EXECUTIVE JORDY CHILCOTT JOINS WELLINGTON-ALTUS PRIVATE WEALTH

G&M - Clare O'Hara (2020-12-01)

Jordy Chilcott, a former Sun Life executive and ex-CEO of Dynamic Funds, has been appointed executive vice-president of wealth strategy and enablement at Wellington-Altus, where he will lead the firm’s wealth management teams, including advanced wealth planning, marketing, and future asset management initiatives.


AMID SLUMP, BMO EXITING ENERGY INVESTMENT BANKING OUTSIDE OF CANADA

G&M - Tim Kiladze (2020-12-01)

Bank of Montreal is reshaping its investment and corporate banking division in a major way by winding down its energy sector coverage outside of its home market.


BANK EARNINGS THIS WEEK SHOULD SHOW IF WAVE OF EXPIRED MORTGAGE DEFERRALS ARE BEING PAID BACK

CBC - Pete Evans (2020-12-01)

The so-called Big Six banks are slated to reveal their fourth-quarter earnings starting Tuesday morning. Bank of Montreal and Scotiabank will kick things off, followed by the Royal Bank of Canada and National Bank of Canada on Wednesday. Canadian Imperial Bank of Commerce and the Toronto-Dominion Bank close things out on Thursday.


CANADIANS NOW OWE MORE THAN $2 TRILLION, EQUIFAX SAYS

CBC - CP (2020-12-01)

Mortgage balances and new auto loans were up 6.6 per cent and 11.7 per cent year over year, respectively, according to Equifax. Overall average consumer debt increased 3.3 per cent compared with the third quarter of last year.


FAMILIES SAY VALUED POSSESSIONS STILL MISSING YEARS AFTER BANK EMPTIED THEIR SAFETY DEPOSIT BOXES

CBC - Rosa Marchintelli (2020-12-01)

If there's one thing Sheila Levy-Bencheton took for granted, it's that the safety deposit box her father rented from a big bank was secure. That's until her dad passed away in 2017 at age 103.


PANDEMIC-INDUCED DEMAND FOR MORE SPACE PUSHING UP COTTAGE PRICES, REAL ESTATE FIRM SAYS

CBC - ANITA BALAKRISHNAN (2020-12-01)

Prices of single-family recreational homes rose 11.5 per cent to an aggregate of $453,046 in the first nine months of the year, the real estate brokerage said.


MICHAEL MORITZ NAMED CHAIRMAN OF SWEDISH FINTECH KLARNA

FT - Richard Milne (2020-12-01)

Veteran Silicon Valley venture capitalist Michael Moritz will be the next chairman of Klarna as the Swedish fintech continues its push into the US by considering becoming a bank there ahead of a likely stock market listing.


THE DEAL THAT COULD TAKE ON BLOOMBERG AND REFINITIV

TodayHeadline - TodayHeadline (2020-12-01)

Financial data providers have been on an M&A blitz since before the global pandemic, kicking off with the London Stock Exchange’s $27bn acquisition of Refinitiv last year. 


BIDEN TO INTRODUCE TOP ECONOMIC ADVISERS AS PANDEMIC THREAT WORSENS

Reuters - Jarrett Renshaw, Joseph Ax (2020-12-01)

U.S. President-elect Joe Biden will formally introduce his top economic policy advisers on Tuesday as his administration prepares to take power amid a slowing economic recovery hampered by the resurgent coronavirus pandemic.


UNICREDIT CEO STEPS DOWN IN CLASH WITH BOARD

Reuters - Valentina Za (2020-12-01)

Italy’s UniCredit said Chief Executive Jean Pierre Mustier will step down in April next year after clashing with the bank’s board over strategy.


LLOYDS NAMES HSBC'S CHARLIE NUNN AS CHIEF EXECUTIVE

Reuters - Carolyn Cohn, Iain Withers (2020-12-01)

Britain’s biggest domestic lender Lloyds Banking Group has named Charlie Nunn, currently head of wealth and personal banking at rival HSBC, as its next chief executive.


GOLDMAN SACHS TO OPEN PARIS STOCKS HUB TO AVOID BREXIT DISRUPTION

Reuters - Huw Jones (2020-12-01)

London has long been Europe’s share trading centre, but the EU has yet to say if it will allow full cross-border share trading to continue after December 31, when Britain’s unfettered access to the bloc ends.


SHOULD YOUR BANK DELIVER YOUR GROCERIES AND MEALS TOO?

Bloomberg - Clara Ferreira Marques (2020-12-01)

Russia’s most valuable listed company is testing the limits of corporate reinvention. Traditional lenders everywhere are adding payments apps and digital banking offerings to see off tech upstarts. State-owned giant Sberbank PJSC wants to go much further to become Russia’s answer to Amazon, Alibaba, Tencent and, well, Sberbank — all rolled into one. 

Watching long-time boss Herman Gref address investors this week in the Silicon Valley uniform of jeans, t-shirt and white trainers on a circular stage against a changing virtual background, it was hard to imagine this was once the Soviet savings monopoly, a monolith better known for bureaucracy and sullen service than tech prowess. In September, it dropped the word “bank” from corporate branding. Now, it aims to become one of the top three


CANADA BANKS SEEK SEAT AT XEBEC TALKS AMID HYDROGEN FERVOR

Bloomberg - Esteban Duarte (2020-12-01)

Canadian banks are eager to gain exposure to growing momentum in the hydrogen industry, giving talks surrounding Xebec Adsorption Inc.’s debt the characteristics of a “tender,” according to Chairman Kurt Sorschak.


TORONTO NEW HOME INVENTORY REACHES HIGHEST LEVEL SINCE FEBRUARY, CONDOS SALES FALL

Better Dwelling - Kaitlin Last (2020-12-01)

Greater Toronto new home prices are up significantly from last year. The benchmark price of a new single-family home reached $1,211,141 in October, up 2.70% from the month before. Compared to last year, prices are 12.7% higher. Condo apartments are seeing a little more mixed movements though. 


BIG SIX BANKS TO REMAIN CAUTIOUS AT END OF FISCAL YEAR AS RECOVERY STRETCHES ON

Investment Executive - CP (2020-12-01)

“You’re seeing stock prices react to potential improvements in the economy that you know are quite a ways out from now, but the banks live in the moment,” said James Shanahan, a senior equity research analyst for North American financials at Edward Jones.


NEW COMMERCIAL SPECIALTY INSURER ENTERING CANADA

Canadian Underwriter - Greg Meckbach (2020-12-01)

Tokio Marine Holdings Inc. plans to incorporate a new property and casualty insurer in Canada next year.


SCOTIABANK TOPS FORECASTS EVEN AS PROFIT SLIPS ON HIGH LOAN LOSSES, WEAKER INTERNATIONAL SHOWING

G&M - James Bradshaw (2020-12-01)

Bank of Nova Scotia’s fiscal fourth-quarter profit fell nearly 18 per cent as provisions for loan losses remained high and profit from its international division fell sharply.


BMO PROFIT CLIMBS ON CAPITAL MARKETS, WEALTH MANAGEMENT GAINS

G&M - James Bradshaw (2020-12-01)

Bank of Montreal reported higher fiscal fourth-quarter profit, bolstered by strong results from capital markets and wealth management even as the coronavirus pandemic puts pressure on its core retail banking business.


MACKENZIE FINANCIAL EXPANDS GREEN FOOTPRINT WITH DEAL TO BUY GREENCHIP FINANCIAL

G&M - Clare O'Hara (2020-12-01)

Mackenzie Financial Corporation is expanding its green footprint with the purchase of Greenchip Financial Corp, a Canadian firm focused exclusively on the environmental economy.


BANKS REPORT EARNINGS THIS WEEK, AND IT COULD TELL US A LOT ABOUT THE STATE OF THE ECONOMY

CBC - Pete Evans (2020-12-01)

The so-called Big Six banks are slated to reveal their fourth-quarter earnings starting Tuesday morning. Bank of Montreal and Scotiabank will kick things off, followed by the Royal Bank of Canada and National Bank of Canada on Wednesday. Canadian Imperial Bank of Commerce and the Toronto-Dominion Bank close things out on Thursday.


SPLIT BETWEEN POWELL AND MNUCHIN OVER PANDEMIC LENDING EXPECTED TO BE HIGHLIGHTED IN CONGRESSIONAL HEARING

G&M - Howard Schneider (2020-12-01)

A vaccine is on the horizon, with inoculations potentially beginning this month. But coronavirus case rates have surged, the economy remains in recession, and U.S. policy-makers are divided over whether a full-on crisis response is still needed or whether any further help should target unemployed families and small businesses.


LIBRA REBRANDS AS DIEM IN EFFORT TO DISTANCE ITSELF FROM FACEBOOK

Finextra - Finextra (2020-12-01)

Plans for the cryptocurrency have been watered down excessively over the past year after facing a regulatory backlash and the departure of a number of key member associations from the payments sector.


WHAT DOES 2021 HOLD FOR DIGITAL FINANCIAL SERVICES?

Bobsguide - Bobsguide (2020-12-01)

More financial regulators will authorise onboarding via automated biometrics


THE ATYPICAL RECESSION: HERE’S WHAT FORECASTERS GOT WRONG ABOUT THE COVID-19 ECONOMY

G&M - Matt Lundy (2020-11-30)

Prediction: Sales and prices will drop \ Reality: Real estate is stronger than ever \ Prediction: A significantly weaker Canadian dollar \ Reality: A brief hit, then a full recovery \ Prediction: GDP will plunge \ Reality: GDP did plunge – but is recovering quickly / Prediction: Equity markets will take years to recover \ Reality: Markets took months to recover \ Prediction: Housing starts will plummet \ Reality: Housing starts are thriving


CANADIAN PENSION FUNDS, INSURERS SEEKING PRIVATE DEBT FACE SHRINKING POOL OF LOWER-RISK FIRMS

G&M - NICHOLA SAMINATHER AND MAIYA KEIDAN (2020-11-30)

Canadian pension funds and insurers are facing a shrinking universe of higher-quality private debt investments to lift returns in a low-yield world, as the coronavirus pandemic has crushed many businesses, while banks maintain lending to better ones.


BANKS EXPECTED TO REPORT LOWER PROFITS THIS WEEK

G&M - James Bradshaw (2020-11-30)

The glass looks both half full and half empty for Canada’s large banks as they prepare to report fourth-quarter financial results this week, capping off a tempestuous fiscal year.


HOME PRICES IN COTTAGE COUNTRY JUMP 15 TO 40 PER CENT ACROSS CANADA AMID COVID-19

G&M - Rachelle Younglai (2020-11-30)

Home prices have spiked in resort towns, cottage country and tourist areas across most of Canada, as the pandemic’s work from home trend pushes buyers to escape the city for nature and more space.


CONDO MARKET PAIN WON'T LAST LONG, SAYS LEADING REALTOR - VIDEO

FP - Larysa Harapyn (2020-11-30)

Royal LePage CEO Phil Soper speaks with Financial Post’s Larysa Harapyn about how the pandemic has changed and actually benefited Canadian property markets.


MERCHANTS CALL FOR LEVEL PLAYING FIELD AS LOCKDOWN RULES PICK WINNERS AND LOSERS IN RETAIL

FP - Barbara Shecter (2020-11-30)

In Manitoba, for example, businesses are permitted to sell only essential items such as food and pharmaceuticals regardless of the full inventory they carry, she said. Meanwhile, Ontario’s restrictions for the hot zones Toronto and nearby Peel permit big-box businesses to be fully open as long as they also sell some items deemed essential.


VERSABANK REPORTS STRONG FINANCIAL RESULTS FOR THE FOURTH QUARTER 2020

VersaBank - Earnings report (2020-11-30)

Net interest margin increased 29 basis points; o Net income increased 9%; and, o Core cash earnings increased 9%.


LLOYDS NAMES HSBC'S CHARLIE NUNN AS CHIEF EXECUTIVE

Reuters - Carolyn Cohn, Iain Withers (2020-11-30)

Britain’s biggest domestic lender Lloyds Banking Group has named Charlie Nunn, currently head of wealth and personal banking at rival HSBC, as its next chief executive.


BANK OF CANADA CHIEF DEFENDS BOND PURCHASES FROM POLITICAL ATTACKS

Bloomberg - Shelly Hagan (2020-11-30)

Governor Tiff Macklem brushed off accusations the Bank of Canada is financing Justin Trudeau’s deficits and fueling inflation risks, even as he acknowledged there are limits to how much government debt it can buy.


CRA ASSESSES NEARLY $60 MILLION UNDER OFFSHORE TAX INFORMANT PROGRAM

Investment Executive - Rudy Mezzetta (2020-11-30)

Under OTIP, a whistleblower program launched in 2014, the CRA provides financial rewards to individuals who come forward with information related to major international tax evasion and aggressive tax avoidance that lead to the collection of taxes owing.


FEDS MAY BOLSTER SUPPORTS TO BUSINESS, HOUSEHOLDS: RBC

Investment Executive - James Langton (2020-11-30)

“We already see some stimulus bleeding into next year, with current announcements bringing the deficit to at least $90 billion in 2021-2022,” it said, noting that extensions of existing government supports could add $40 billion to deficits through the end of 2021 “even before new spending announcements.”


FSRA SEEKS TO RAISE STANDARDS FOR MORTGAGE BROKERS

Investment Executive - James Langton (2020-11-30)

The regulator published its proposed approach to incorporating a code of conduct that’s being jointly developed by the industry and the Mortgage Broker Regulators’ Council of Canada (MBRCC).


AVIVA CEO SIDES WITH SCIENCE AGAINST FRUITLESS CONJECTURE AROUND CLIMATE RISK

Canadian Underwriter - Adam Malik (2020-11-30)

Storah acknowledged population growth and related effects are contributing factors to climate change. But these things alone don’t offer provide a complete picture, he said. “Now buildings are more expensive, there’s more of them, there’s more people, there’s more cars on the road — I get all of those things. There’s lots of ways that you can split it, and you can explain away the impact of climate-related losses, but you can’t explain them away to zero.”


DOLLARS AND SENSE LIGHT AT THE END OF A DARK TUNNEL

TD - Beata Caranci, James Orlando (2020-11-30)

Recent weeks have provided multiple positive developments for markets, including an election outcome that is on net positive for the prospects of corporate earnings and news that multiple vaccines could be ready for distribution by year-end.


CANADIAN RETAIL SALES (SEPTEMBER 2020)

TD - Ksenia Bushmeneva (2020-11-30)

Canadian retail sales continued to improve in September, accelerating to 1.1% month-on-month (m/m), double the growth rate in August and marking a fifth consecutive monthly improvement. This was much better than the Statistics Canada's preliminary forecast for a flat reading. Looking ahead, the agency's flash estimate points to a flat reading in October.


DEBUNKING MODERN MONETARY THEORY (MMT)

Youtube - Academic Agent (2020-11-30)

Old wine in new bottles, and it never tasted good.


BOARD GAMES 2020: CANADIAN COMPANIES FALL SHORT ON BOARD DIVERSITY

G&M - David Milstead (2020-11-30)

When it came time last winter to prepare their 2020 disclosures, Canadian companies largely chose not to share information about racial and ethnic diversity on their boards of directors, despite new federal rules that required many of them to do so. The problem may have been that they didn’t have much to talk about.


ECB WARNS THE FUTURE OF MONEY IS AT STAKE AS FACEBOOK PREPS JANUARY CRYPTO LAUNCH

Finextra - Finextra (2020-11-30)

Facebook’s Libra cryptocurrency is readying to launch as early as January, the Financial Times reported on Friday, citing three unidentified people involved in the project.


VIRGIN MONEY AND TWENTY7TEC DEVELOP API INTEGRATION FOR MORTGAGE INTERMEDIARIES

Finextra - Finextra (2020-11-30)

Intermediaries will also benefit from being able to view case tracking and case notes, helping them to manage cases and support their customers. It will also reduce the likelihood for human error, which will improve packaging and turnaround times for the intermediary and customer.


WALL STREET RETREATS, S&P 500 STILL SET FOR BEST NOVEMBER EVER

Reuters - Noel Randewich (2020-11-30)

A rotation into energy, industrials and financials, all expected by many investors to outperform as the economy recovers from its downturn, have driven gains of more than 10% for the S&P 500 in November and put the Dow Jones Industrial Average on track for its biggest monthly gain since 1987.


LIBERALS TO SPEND $100B TO JOLT POST-PANDEMIC ECONOMY AFTER POSTING RECORD $381B DEFICIT

G&M - Kathleen Harris (2020-11-30)

The short-term stimulus package is valued at $70 billion to $100 billion over roughly three years. The government says the stimulus spending — intended to build a greener, more inclusive, more innovative and competitive economy — will launch after a vaccine is distributed and life begins to return to normal.


AIRLINE WORKERS STRUGGLE TO FIND EMPLOYMENT AS COVID-19 DECIMATES INDUSTRY

G&M - Eric Atkins (2020-11-27)

Before Chris Brewer lost his job as a WestJet flight attendant, his typical shift was the Vancouver to Los Angeles route, taking off at 8:30 in the morning and returning by 3. He got to eat supper with his family and sleep in his own bed – rare comforts in the airline business. He met his wife, also a WestJetter, on the job and has formed close friendships with his co-workers. “It was perfect,” Mr. Brewer said. “I mean, I’ve been there for 13 years, so it’s kind of like a family.”

These days, Mr. Brewer drives a van for FedEx Corp. 

FDX-N -1.16%decrease   , hustling parcels around the streets of Vancouver for $19 an hour, about half what he made at WestJet, with fewer benefits. “It’s different, that’s for sure,” he said.


RBC CLIENTS APPEAL AFTER JUDGE REFUSES TO CERTIFY CLASS ACTION LAWSUIT AGAINST THE BANK

G&M - Clare O'Hara (2020-11-27)

A group of investors has filed an appeal after a judge dismissed their class-action lawsuit against a mutual fund division of Royal Bank of Canada that offered its advisers higher commissions for selling RBC funds than it did for selling competing funds.


BANK OF CANADA GOVERNOR MACKLEM INSISTS CENTRAL BANK NOT FUNDING OTTAWA’S DEFICIT SPENDING

G&M - DAVID PARKINSON (2020-11-27)

Bank of Canada Governor Tiff Macklem repeatedly told a parliamentary committee that the central bank isn’t in the business of bankrolling the federal government’s soaring deficits, insisting the government isn’t in danger of insolvency without the bank’s continuing purchases of billions of dollars a week of government debt.


CHINA’S CENTRAL BANK SAYS IT WILL MAKE MONETARY POLICY MORE FLEXIBLE, TARGETED

G&M - Beijing (2020-11-27)

China’s central bank said on Thursday it will make prudent monetary policy more flexible and targeted, and reiterated it will not resort to flood-like stimulus.


HERE’S WHERE THE BIG BANKS ‘ARE BETTER THAN ALL THE REST’

G&M - Rob Carrick (2020-11-27)

Canada’s best online banking experience will not be found at an online bank.


PROVINCES PUSH FREELAND TO DELAY PLANNED BUMP IN CPP PREMIUMS IN ECONOMIC UPDATE

FP - CP (2020-11-27)

Provincial finance ministers have quietly prodded Finance Minister Chrystia Freeland to pause planned increases in premiums workers and businesses pay into the Canada Pension Plan.


KEEP SOCIAL POLICY OUT OF CREDIT MARKETS

FP - Jack M. Mintz (2020-11-27)

Preferential lending seems contrary to the intent of the Equal Credit Opportunity Act and Fair Housing Act, which prohibits credit decisions based on race. For example, a bank cannot charge different mortgage rates to minority and white borrowers with the same credit risk. On the other hand, neither can it provide advantageous financing to minority borrowers, which is a goal of many social policy advocates.


THE TOP CONTENDERS TO RUN BIDEN'S FINANCIAL AGENCIES

Reuters - Pete Schroeder, Michelle Price, Katanga Johnson (2020-11-27)

The CFPB director is a critical role for progressives such as Senator Elizabeth Warren who believe the agency can help tackle wealth inequality and racial injustice. A U.S. Supreme Court ruling in June handed Biden the power to fire Republican President Donald Trump’s CFPB director, Kathy Kraninger, and many policy experts expect the former vice president to quickly remove her after he takes office on Jan. 20.


BANK OF CANADA CHIEF DEFENDS BOND PURCHASES FROM POLITICAL ATTACKS

Bloomberg - Shelly Hagan (2020-11-27)

In parliamentary testimony on Thursday, Macklem faced questions from opposition Conservative Party lawmakers over the central bank’s quantitative easing program, which has been used to buy nearly C$200 billion ($154 billion) in federal government bonds since April.


A $364 TRILLION GAME OF BREXIT CHICKEN GETS UGLY

Bloomberg - Lionel Laurent (2020-11-27)

Both the U.K. Financial Conduct Authority and Paris-based European Securities Markets Authority want more oversight of big derivatives contracts after the Brexit transition period ends on New Year’s Eve. That seems simple enough when counterparties are located in the same jurisdiction. When both sides are British, contracts that fall within the scope of the rules will trade on U.K. venues, or those deemed equivalent for regulatory purposes. Those involving EU counterparties will have to stick to the EU.

The problems will start when EU and U.K. counterparties want to trade with each other: In British eyes the trade needs to be on British soil, while for the Europeans it should be on the continent. The conflict was confirmed this week when ESMA said it would impose locational derivatives rules in much the same way as the FCA. This isn’t stuff that can be traded in two places at once.


VANCOUVER TO TRIPLE EMPTY HOME TAX TO 3% IN 2021

Better Dwelling - Stephen Punwasi (2020-11-27)

Vancouver plans on tripling this tax for next year. Council voted to increase the vacant home tax to 3% of the assessed value for 2021. The rate last charged was 1% in 2019, and it’s slated to increase to 1.25% in 2020. The aggressive measures are likely to cause empty homeowners to really think about whether those empty units are worth it.


GLOBAL HOUSE PRICES ROSE IN THE FACE OF COVID-19: BIS

Investment Executive - James Langton (2020-11-27)

On average, residential property prices in advanced economies rose by 3.7%, which was the fastest year-over-year growth rate since the end of 2016, the BIS noted.


TOUGHER CAPITAL RULES FOR BATCHES OF BAD LOANS

Investment Executive - James Langton (2020-11-27)

The Basel Committee noted that it began working on the capital rules for non-performing loan securitizations before the onset of Covid-19.


FINANCIAL STABILITY INCREASINGLY SHAKY, ECB SAYS

Investment Executive - James Langton (2020-11-27)

“The sharp rise in corporate and sovereign indebtedness increases the risks to financial stability from an emerging sovereign-corporate bank nexus in the medium-term, as banks and sovereigns alike are exposed to pandemic-induced risk faced by euro area firms,” the central bank said.


OSFI PREVIEWS NEW CAPITAL RULES FOR SEG FUND RISK

Investment Executive - James Langton (2020-11-27)

The federal financial regulator is developing a new methodology, which will be implemented in 2023, for calibrating the capital that insurers must set aside for seg fund guarantee risk that will replace the current approach — which was adopted in the early 2000s.


CANADIAN HOUSING STARTS (OCTOBER 2020)

TD - Rishi Sondhi (2020-11-27)

Canadian housing starts increased to 214.9k (annualized) units in October, up 3% from September's 208.7k pace. On a six-month moving average basis, starts came in at 222.7k units, up from 214.4k in September.


INTUIT SECURES US DOJ NOD FOR $7.1BN DEAL TO BUY CREDIT KARMA

Retail Banker - Staff (2020-11-27)

Intuit is the creator of TurboTax, QuickBooks, and Mint with 57 million customers, while Credit Karma has over 110 million customers in the US, Canada, and the UK.


MAMBU AND ALCHEMY TEAM UP TO LAUNCH NEW LENDING DECISIONING ENGINE

Retail Banker - Staff (2020-11-27)

German cloud banking platform Mambu has partnered with Canadian digital banking solutions provider Alchemy.


SQUARE TO BUY CREDIT KARMA TAX BIZ FOR CASH APP EXPANSION

Finextra - Finextra (2020-11-26)

The number of taxpayers who self prepare and e-File their own tax returns has grown in recent years. According to the IRS, in the 2020 tax filing season, approximately one in two tax filers, or 80 million people, prepared and electronically filed their federal tax returns themselves, with an average refund of more than $2,000.


BRITAIN FACES WORST RECESSION IN CENTURIES

G&M - PAUL WALDIE (2020-11-26)

Britain is facing its worst recession in more than 300 years, and the government isn’t expecting the economy to return to pre-pandemic levels until the end of 2022 - or longer if Brexit goes wrong.


TD, BMO, CIBC PUSH BACK OFFICE RETURN DATES AMID LATEST SPIKE IN COVID-19 CASES

G&M - James Bradshaw (2020-11-26)

Three of Canada’s largest banks are planning to keep most of their employees working remotely until the spring, pushing back plans to get back to offices amid a spike in cases of the novel coronavirus.

On Wednesday, Canadian Imperial Bank of Commerce 

CM-T +0.37%increase    and Bank of Montreal  BMO-T -0.25%decrease    each told employees that most people currently working remotely should expect to do so until at least April. CIBC made the decision in light of the “latest health authority guidance,” said Sandy Sharman, CIBC’s head of people, culture and brand, in a memo sent to the bank’s staff on Wednesday.


TERRY FOX FAVOURED TO APPEAR ON NEW $5 BILL, SURVEY SUGGESTS

CBC - CBC (2020-11-26)

Fox, who had his right leg amputated above the knee in 1977 after it was found to have a malignant tumour, went on to launch his fundraising run in St. John's on April 12, 1980. He had to abandon the run nearly five months later when the cancer spread to his lungs. He died of cancer the next year at age 22.


SMALL RETAILERS PUSH BACK AGAINST LOCKDOWN POLICY THAT FAVOURS BIG-BOX STORES

CBC - Brandie Weikle (2020-11-26)

Small businesses in Toronto and Peel Region say it's not fair that they should be closed for in-person shopping while big-box stores can sell all manner of goods — from clothing to books to tech gadgets — if they happen to also sell essential products such as groceries.


BIG SIX IN SOLID FINANCIAL SHAPE, BUT PANDEMIC PAIN TO LINGER: ANALYSTS

FP - Geoff Zochodne (2020-11-26)

Analysts estimate those fiscal fourth-quarter earnings will be down about 20 per cent on average from a year earlier, as the coronavirus pandemic and its associated economic effects continue to linger.


BORIS JOHNSON’S CONSERVATIVES ARE BURNING BRIDGES WITH CHINA

Bloomberg - Alberto Nardelli, Kitty Donaldson and Peter Martin (2020-11-26)

As a prominent China critic and advocate of Hong Kong’s freedoms, Benedict Rogers is used to unwanted attention. But even he was surprised when he found out that the Chinese embassy in London had attempted to persuade members of the British Parliament to warn him off.


WORLD’S TOP LUMBER FIRM SEES HOMEBUILDING SURGE GOING STRONG

Bloomberg - Marcy Nicholson (2020-11-26)

Strong homebuilding activity in North America will mean tight wood supply and demand for several more years, according to the top executive of the world’s largest lumber producer.


COURT REJECTS CLASS ACTION AGAINST RBC FUND DEALER

Investment Executive - James Langton (2020-11-26)

A proposed class action against Royal Mutual Funds Inc. (RMFI) claiming that its differential compensation arrangement harmed investors has been struck down by a court in British Columbia.


NORTHERN CREDIT UNION LAUNCHES FRED; THE TRUE NORTH AI-POWERED DIGITAL ASSISTANT

Ficanex - Press Release (2020-11-26)

Northern Credit Union joins a growing list of financial institutions looking for ways to provide self-service and a superior customer service experience for their members in an ever-changing digital age. Through Artificial Intelligence and machine learning, Fred has the power to answer chatter questions on an abundance of topics and can fully automate up to 70% of inquiries, allowing employees to focus on high-value interactions and significantly reducing call wait times. With access to extensive data analytics, Northern Credit Union will be able to identify key opportunities to improve the service experience and increase customer satisfaction.


TORONTO CONDO PRICES DOWN OVER $20K FROM PEAK, AS INVENTORY DOUBLES

Better Dwelling - Kaitlin Last (2020-11-26)

The price of a typical condo apartment across Greater Toronto is higher than last year, but coming down fast. TRREB reported the typical condo price reached $585,100 in October, up 6.15% from the same month last year. The City of Toronto condo benchmark reached $611,100, up 4.55% from last year. Both regions have seen prices slide since May, taking its toll on growth.


ALBERTA FORECASTS DRAWN-OUT ECONOMIC RECOVERY FROM PANDEMIC IN ITS FISCAL UPDATE

G&M - EMMA GRANEY (2020-11-25)

Alberta is forecasting a long, drawn-out economic recovery from the pandemic, factoring a $750-million COVID-19 contingency fund into its fiscal plans for next year as it grapples with continued depressed oil prices and demand.


CANADA’S BANKING REGULATOR CAUTIONS AGAINST LIFTING BAN ON BANKS RAISING DIVIDENDS TOO SOON

G&M - Staff (2020-11-25)

Canada’s banking regulator is cautioning against lifting restrictions on banks’ dividend payments and share buybacks too soon as cases of the novel coronavirus spike again.


WITH JANET YELLEN AT TREASURY, JOE BIDEN SIGNALS FURTHER BLURRING OF FISCAL, MONETARY POLICIES

G&M - KONRAD YAKABUSKI (2020-11-25)

In nominating Janet Yellen to become his Treasury secretary, president-elect Joe Biden has opted for a steady hand and consensus-builder to steer U.S. fiscal policy just as economists increasingly warn the country is poised to slip back into recession.


'TRIPLE BLACK SWAN' EVENT TO PUSH ALBERTA'S BUDGET DEFICIT TO $21.3B THIS YEAR, WITH 100,000 UNEMPLOYE

FP - Geoffrey Morgan (2020-11-25)

As Alberta was set to unveil new measures to limit the spread of COVID-19, the province’s finance minister tabled a slightly smaller but still significant budget deficit Tuesday, revealing the scars of the pandemic and crude price crash on the oil-producing province.


BANK OF CANADA DEPUTY DOWNPLAYS RISKS OF CONSUMER DEFAULT WAVE

FP - Shelly Hagan (2020-11-25)

Signs of overwhelming financial strain are few, and the risk of a wave of consumer defaults seems low, Deputy Governor Toni Gravelle said in remarks via video conference to the Autorite des marches financiers. Almost all of the households with expired debt deferrals have resumed repayments, and government measures are helping businesses in many sectors manage cash flows, he said.


CANADA'S HOUSING SQUEEZE: BUYERS WHO WANT TO MOVE UP ARE BEING 'HANDCUFFED' BY THEIR HARD-TO-SELL CONDOS

FP - Nichola Saminather and Julie Gordon (2020-11-25)

“One of the things we’re handcuffed to is selling our condo to help with the downpayment,” Jordan said.


JPMORGAN CHASE TO PAY $250 MILLION FOR FAILINGS IN ASSET, WEALTH BUSINESS

Reuters - Michelle Price (2020-11-25)

For several years, however, JPMorgan operated a weak management and control framework for its fiduciary activities and had an insufficient audit program for, and inadequate internal controls over, those activities, the OCC said.


CREDIT SUISSE FLAGS $450 MILLION IMPAIRMENT ON YORK CAPITAL MANAGEMENT STAKE

Reuters - Brenna Hughes Neghaiwi (2020-11-25)

Credit Suisse, which has been an investor in York Capital since 2010, said on Tuesday it expected to take an impairment on its stake in billionaire hedge-fund manager Jamie Dinan’s firm in the fourth quarter, which would hit its main capital metric - or common equity tier 1 (CET1) capital ratio - by roughly 7 basis points.


IIROC SEEKS NOMINEES FOR OBSI BOARD

Investment Executive - James Langton (2020-11-25)

IIROC and the Mutual Fund Dealers Association of Canada (MFDA) each nominate one director to the board, with OBSI ultimately choosing from a short list provided by the SROs.


CYBER INSURANCE: MOST FREQUENT AND COSTLY CLAIMS REVEALED

Canadian Underwriter - Jason Contant (2020-11-25)

The number of cyber insurance claims AGCS has been notified of has steadily increased over the last few years, up from 77 in 2016, when cyber was a relatively new line of insurance, to 809 in 2018. In 2020, AGCS has already seen 770 claims in the first three quarters (This steady increase in claims has been driven, in part, by the growth of the global cyber insurance market, currently estimated by Munich Re to be worth $7 billion).


FRANCE DEMANDS DIGITAL TAX PAYMENTS FROM US TECH GROUPS

Irish Times - Aime Williams, Hannah Murphy, Victor Mallet (2020-11-25)


BRUSSELS CRITICISED FOR GIVING BLACKROCK SUSTAINABLE FINANCE CONTRACT

FT - Mehreen Khan, Siobhan Riding (2020-11-25)

Emily O’Reilly, the EU’s independent ombudsman, on Wednesday said the European Commission’s decision to give the world’s largest fund manager a contract worth €280,000 had exposed the weakness of Brussels procedures on conflicts of interest when hiring from the private sector to advise on major policy areas. 


VIRGIN MONEY PROFITS HIT BY £500M OF PROVISIONS

FT - Owen Walker (2020-11-25)

Virgin Money’s pre-tax profit sank by three-quarters in the year to October after it set aside £501m to cover bad loans, as the UK lender prepared for the longer-term consequences of the coronavirus pandemic on its customers.


THE CANADIAN BANKING SYSTEM THROUGH THE PANDEMIC: WHERE WE ARE AND WHERE WE ARE GOING

OSFI - OSFI (2020-11-25)

In the first quarter that was reported after the onset of the pandemic, we hit what I like to call the “downturn trifecta”: [1] Loan growth rose (supporting the economy). [2] Loan loss provisions went up (because of the downturn). And [3] market participants were unconcerned by the decline in bank capital levels. This was a textbook example of how the capital regime should work during a downturn, one where the banking system is able to absorb shocks rather than forced to amplify them.


FEDERAL GOVERNMENT SPENDS $5-MILLION ON OUTSIDE CONSULTANTS FOR LEEFF EMERGENCY LOAN PROGRAM

G&M - Bill Curry (2020-11-24)

The federal government has spent nearly $5-million on outside consultants to set up a COVID-19 emergency support program for large companies that has delivered just two loans since launching six months ago.


‘TOO EARLY’ TO SAY HOW WELL CANADIAN MORTGAGE HOLDERS ARE DOING AFTER PAYMENT DEFERRALS ENDED, BOC’S GRAVELLE CAUTIONS

G&M - DAVID PARKINSON (2020-11-24)

Bank of Canada deputy governor Toni Gravelle cautioned that “it’s too early to be definitive” about how well Canadian mortgage holders are faring with the expiry of COVID-19 payment-deferral programs, even as the data show that the heavily indebted household sector has weathered the pandemic remarkably well so far.


INDIGENOUS MAN AND GRANDDAUGHTER HANDCUFFED AT VANCOUVER BANK FILE HUMAN RIGHTS COMPLAINT AGAINST BMO, POLICE

CBC - Angela Sterritt, Bridgette Watson (2020-11-24)

Johnson and Tori-Anne were using government-issued Indian Status cards, his birth certificate and her medical card. He said the employee became suspicious and went upstairs with their cards. The manager said she was also concerned about a large sum of money Johnson had in his account — money he and all other Heiltsuk members received as a result of an Aboriginal rights settlement.


WILLIAM WATSON: THE GREAT SAVINGS GLUT IS ENDING

FP - WILLIAM WATSON (2020-11-24)

I don’t get that question much anymore. Partly because I’m at an age where most people I meet have paid off their mortgages. But more because everyone thinks they know what’s going to happen to interest rates: they’re going to stay low forever.


BANK OF CANADA DEPUTY DOWNPLAYS RISKS OF CONSUMER DEFAULT WAVE

FP - Shelly Hagan (2020-11-24)

The massive policy response from the Bank of Canada and the federal government successfully prevented the country’s financial system from buckling, though vigilance is still needed, according to a top central banker.


CHRYSTIA FREELAND TO PROVIDE BUDGET UPDATE ON NOV. 30

FP - Kate Bolongaro (2020-11-24)

Finance Minister Chrystia Freeland told lawmakers Monday that her department will release new deficit projections on Nov. 30. The economic statement could also include details of new permanent spending on long-term priorities including childcare.


TRUMP ADMINISTRATION GIVES GREEN LIGHT TO PROCEED WITH BIDEN TRANSITION

Reuters - Jeff Mason, Trevor Hunnicutt (2020-11-24)

After weeks of waiting, President Donald Trump’s administration on Monday cleared the way for President-elect Joe Biden to transition to the White House, giving him access to briefings and funding even as Trump vowed to continue fighting the election results.


JPMORGAN DOMINATES GOLD MARKET WITH RECORD $1 BILLION PRECIOUS METALS REVENUE

Reuters - Peter Hobson (2020-11-24)

JPMorgan has earned record revenue of around $1 billion so far this year from trading, storing and financing precious metals, vastly outperforming rival banks, two sources familiar with the matter told Reuters.


BIDEN TO NAME YELLEN TO TREASURY TO LEAD U.S. FROM SHARP ECONOMIC DOWNTURN

Reuters - Trevor Hunnicutt, David Lawder (2020-11-24)

President-elect Joe Biden is expected to nominate former Federal Reserve Chair Janet Yellen as U.S. Treasury secretary, breaking a 231-year gender barrier and putting a seasoned economist and labor market expert in charge of leading the country out of the steepest downturn since the Great Depression.


A $700 BILLION RALLY HAULS CANADIAN STOCKS OUT OF SLUMP

Bloomberg - Michael Bellusci (2020-11-24)

Eight months after it hit bottom in the Covid-19 crash, Canada’s stock index is finally back in the green for 2020.


MILLIONS OF AMERICANS EXPECT TO LOSE THEIR HOMES AS COVID RAGES

Bloomberg - Alexandre Tanzi (2020-11-24)

About 5.8 million adults say they are somewhat to very likely to face eviction or foreclosure in the next two months, according to a survey completed Nov. 9 by the U.S. Census Bureau. That accounts for a third of the 17.8 million adults in households that are behind on rent or mortgage payments.


THESE AAA BONDS ARE TUMBLING AS CHINA DEFAULT FEARS SPREAD

Bloomberg - Bloomberg (2020-11-24)

A string of defaults by Chinese state-owned companies has sent shockwaves across the world’s second-largest credit market.


CONSUMER BANKS FACE DISRUPTION FROM TECH GIANTS

Investment Executive - James Langton (2020-11-24)

In a new report, the rating agency warned that plans by Google’s parent company, Alphabet Inc., to launch digital bank accounts within the Google Pay app in the coming year will ramp up competition for deposits.


BLOCKCHAIN, DIGITAL ASSETS FACE LEGAL HURDLES: SIFMA

Investment Executive - James Langton (2020-11-24)

The securities industry and its regulators will have to address some fundamental compliance questions before digital assets and blockchain systems can be more fully adopted by the traditional securities sector, says a new paper.


ONTARIO MOVES TO SHUT DOWN INSURANCE SIDE ACCOUNT LOOPHOLE

Investment Executive - Rudy Mezzatta (2020-11-24)

The Ontario government is proposing legislative changes that would prevent what it characterizes as “exploitative” transactions that involve investors depositing large sums of money into side accounts of universal life insurance policies.


CREDIT SUISSE TO TAKE $450M HIT ON HEDGE FUND BUSINESS

FT - Owen Walker (2020-11-24)

Credit Suisse expects to take a $450m hit after York Capital Management, the US alternative investment group in which it owns a stake, said it would wind down its European hedge fund business. The Swiss lender said the impairment charge would be booked in its fourth-quarter results and would reduce its core equity tier one ratio — a measure of its financial strength — by about 7 basis points. It is the latest in a series of setbacks for Credit Suisse this year after it was caught up in scandals at Luckin Coffee and Wirecard, having worked on deals for both, as well as holding an internal review over its supply chain finance funds linked to SoftBank and Greensill Capital. On Monday night, York Capital informed its investors that it planned to focus on longer duration assets such as private equity, private debt and collateralised loan obligations, while exiting its European hedge fund strategies.


LESSONS FROM CHINA’S DECISION TO HALT ANT GROUP’S GIANT IPO

FT - Henny Sender (2020-11-24)

Investors are still trying to parse the fallout from the recent decision to pull the blockbuster initial public offering of Ant Group. China’s biggest financial technology group had been set to raise $37bn in the world’s largest IPO before Beijing’s intervention this month.


INVESTMENT REGULATOR ACCUSES GARY NG OF FRAUD

G&M - Mark Rendell (2020-11-24)

The former owner of Vancouver-based investment bank PI Financial Corp. is facing accusations of fraud after allegedly falsifying documents and creating fake brokerage accounts to borrow approximately $172-million, part of which he used to purchase PI Financial.


TELUS TO BUILD OUT 5G NETWORK WITHOUT CHINA’S HUAWEI

G&M - Steven Chase, Robert Fife (2020-11-23)

Telus Corp. plans to move entirely away from Huawei Technologies Co. Ltd. as a supplier of gear for superfast 5G mobile networks. It says instead that it will rely solely on telecom manufacturers from Western countries, as well as South Korea, because it expects Ottawa will eventually restrict the use of the Chinese company’s equipment in Canada.


IIROC ALLEGES MISCONDUCT AGAINST FORMER PACE EXECUTIVES

G&M - James Bradshaw (2020-11-23)

A regulatory body is seeking to discipline two former senior executives of Pace Securities Corp., a now-defunct investment dealer, alleging they failed to address conflicts of interest and to ensure the financial products they sold were suitable for clients.


CANADA, U.K. SIGN ROLLOVER TRADE AGREEMENT FOR CONTINUITY AFTER BREXIT DEAL EXPIRES

G&M - PAUL WALDIE (2020-11-23)

Britain formally left the EU last January but it remains inside the bloc’s single market during a transition period which ends on Dec. 31. The U.K. and EU have been negotiating a comprehensive trade agreement but the talks have stalled. In the meantime, Britain has been eager to strike deals with other countries as it begins life outside the EU.


HIS BANK RAIDED HIS ACCOUNT TO COVER A PAYMENT MADE TO SCAMMERS

CBC - Dianne Buckner (2020-11-23)

"You keep your money in the bank because you think it's safe," he said. "And they treat the money like it's theirs, and they just move it around to protect themselves. That's not fair."


BUY NOW, PAY LATER? INSTALMENT PAYMENT SERVICES FOR ONLINE SHOPPING COME TO CANADA SOCIAL SHARING

CBC - Pete Evans (2020-11-23)

In addition to the usual debit and credit options that pop up when a customer's about to buy, a number of services have set up shop in Canada recently that give customers the option to pay in instalments — spreading the cost of shopping trip over multiple payments.


ITALY PICKS BANK OF AMERICA, ORRICK TO ADVISE ON MPS PRIVATISATION, SOURCES SAY

Reuters - Giuseppe Fonte, Pamela Barbaglia, Valentina Za 4 MIN READ (2020-11-23)

Rome aims to clinch a merger with a healthier peer in 2021, the sources said, to provide a long-term solution for the bank, which has been backed by the government since 2017 following an 8 billion euro ($9.5 billion) rescue deal.


UK'S NATIONWIDE PROFIT HOLDS UP DESPITE PANDEMIC HIT

Reuters - Iain Withers (2020-11-23)

The lender reported a pretax profit of 361 million pounds ($478.47 million) for the six months to September, up 17% from 309 million pounds the previous year.


JPMORGAN SEES POSSIBLE $300 BILLION REBALANCING FLOW FROM STOCKS

Bloomberg - Joanna Ossinger (2020-11-23)

Rebalancing flows may lead to an exodus of around $300 billion from global stocks by the end of the year, according to JPMorgan Chase & Co.


ITALY'S BANK TROUBLES ARE BACK TO HAUNT IT

Bloomberg - Ferdinando Giugliano (2020-11-23)

The public outcry against bank bailouts during the financial crisis prompted European governments to constrain the use of public money to help lenders in crisis. New trouble at the region’s oldest bank will test whether these rules can outlast the pandemic.


2021 TFSA LIMIT ANNOUNCED

Bloomberg - Rudy Mezzetta (2020-11-23)

The TFSA new contribution limit for 2021 has been officially released. That limit is $6,000, matching the amount set in 2019 and 2020.


ARE YOU SMARTER THAN A DAY TRADER?

Investment Executive - James Langton (2020-11-23)

The Alberta Securities Commission (ASC) and Saskatchewan’s Financial and Consumer Affairs Authority (FCAA) are proposing a prospectus exemption that would allow investors to self-certify that they have the experience and education to participate in exempt market deals, without meeting the traditional definition of an accredited investor and based on income and wealth criteria.


GETTING GHOSTED BY THE MARKETS

Investment Executive - James Langton (2020-11-23)

So-called “ghost” liquidity is a significant consequence of a multi-market environment, and its existence means that true liquidity may be overstated — a result that should not be overlooked by industry players and regulators, a new study finds.


RISK OF SHOCK TO FINANCIAL SYSTEM HAS INCREASED: BOC SURVEY

Investment Executive - Rudy Mezzetta (2020-11-23)

Among surveyed experts for the most recent edition, 98% indicated they were confident that the Canadian financial system will remain resilient, citing public sector support in response to Covid-19 as the reason.


MACKENZIE ANNOUNCES SUCCESSION PLAN TO REPLACE RETIRING CIO

Insurance-Portal.ca - IIJ (2020-11-23)

Mackenzie Investments has revealed its plans to replace outgoing executive vice president and chief investment officer, Tony Elavia, who is retiring from the company at the end of the year.


FP CANADA PUBLISHES RESPONSE TO FSRA’S PROPOSED TITLE PROTECTION RULE

Insurance-Portal.ca - Kate McCaffrey (2020-11-23)

FP Canada is the latest industry member to publish its response to the Financial Services Regulatory Authority of Ontario (FSRA) proposed Financial Professionals Title Protection rules.


BITCOIN TRADES AGAIN NEAR RECORD, DRIVEN BY NEW GROUP OF BUYERS

WSJ - Paul Vigna and Anna Hirtenstein (2020-11-23)

Bitcoin climbed back above $18,000 last week to flirt with record levels, a spectacular rally driven by a new group of buyers seeking the opportunity for big profits.


U.S. HOSPITALIZATION COUNT SETS 13TH STRAIGHT DAILY RECORD

WSJ - WSJ (2020-11-23)

New U.S. cases tallied 142,732, down from Friday's record but a record for a Sunday.


EUROPEAN INSURERS GEAR UP TO DO DEALS

WSJ - Julie Steinberg (2020-11-23)

European insurers have weathered the crucible of the coronavirus pandemic and are ready to do some deals.


ZURICH INSURANCE IN TALKS TO ACQUIRE METLIFE’S CAR, HOME INSURANCE UNIT

WSJ - Kimberly Chin and Leslie Scism (2020-11-23)

Zurich Insurance Group AG said Friday that it is in talks with MetLife Inc. to acquire the insurer’s U.S. property and casualty insurance business.


NEW INVESTORS PILE INTO STOCKS, SEEING ‘GENERATIONAL-BUYING MOMENT’ INSTEAD OF RISK

Youtube - CNBC Video (2020-11-23)

A spike in new accounts at online brokers show that "young and old" inexperienced investors saw the coronavirus downturn as an entry point into the world of investing and not a time to hunker down.


PANDEMIC UNDERSCORES IMPORTANCE OF FINANCIAL INTELLIGENCE, FEDERAL CENTRE SAYS

Halifax Today - CP (2020-11-23)

The federal anti-money laundering agency says it gave more than 2,000 intelligence leads to partners in the last fiscal year despite the havoc the COVID-19 pandemic created for the business world.


HOW COVID-19 HAS IMPACTED CONTACTLESS PAYMENTS; AND WHAT YOU CAN EXPECT TO HAPPEN INTO 2021

Apaylo - Mike Peterson (2020-11-23)

Even this past summer, as this article by CTV states (https://toronto.ctvnews.ca/use-of-contactless-payment-systems-increase-amid-covid-19-pandemic-1.4985473), before Covid’s second wave when numbers seemed temporarily quashed; Canada’s major credit card companies increased their tap limits from $100 to $250. A study conducted by Moneris found that Canadians were quick to take advantage of the limit increases; with contactless transactions over $100 accounting for 40% of total transactions. With an average transaction amounting to $148, contactless payments are now approaching half of all transactions, at 45%.


RAY DALIO'S INTROSPECTIVE LOOK AT FINANCIAL WORLD ORDER, INEQUALITY AND CAPITALISM: FULL INTERVIEW

Youtube - Ray Dalio (2020-11-23)

Yahoo Finance's Julia LaRoche sat down with Ray Dalio founder, co-Chief Investment Officer and co-Chairman of Bridgewater Associates to discuss capitalism, the wealth gap, why the education system is not working for some, millennials, bitcoin and more.


SHOPIFY STANDS TO CASH IN ON FUTURE IPO OF U.S. FINTECH AFFIRM

G&M - Andrew Willis (2020-11-20)

SHOP-T +3.60%increase    is reaping the rewards that come with being a leader in online commerce, with the Ottawa-based company set to make money on a planned initial public offering from Affirm Holdings Inc.


WHY HUDSON BAY’S UNPAID RENT PUTS LANDLORDS IN A DIFFICULT POSITION

G&M - Rachelle Younglai (2020-11-20)

Landlords are facing a tricky situation with their Hudson’s Bay Co. leases, as the fallout of any eviction of the retailer over unpaid rent could have a ripple effect on the rest of the mall and exacerbate already tough retail conditions from the pandemic.


NASDAQ TO BUY FINANCIAL FRAUD DETECTION FIRM VERAFIN FOR $2.75 BILLION

Reuters - Anna Irrera, Noor Zainab Hussain 3 MIN READ (2020-11-20)

Exchange operator Nasdaq Inc NDAQ.O said on Thursday it would buy anti-financial crime software firm Verafin for $2.75 billion in cash, significantly expanding its reach in the regulatory technology market.


US TREASURY REFUSES TO EXTEND SOME OF FED’S CRISIS-FIGHTING TOOLS

FT - James Politi, Colby Smith (2020-11-20)

The US Treasury has decided not to extend several emergency lending facilities set up by the Federal Reserve at the start of the coronavirus pandemic, prompting a rare expression of disappointment from the central bank, which warned that the economy remained “strained and vulnerable”.


WIRECARD’S BRAUN SAYS REGULATORS NOT TO BLAME IN SCANDAL

FT - Guy Chazan and Olaf Storbeck (2020-11-20)

Markus Braun, the former chief executive of disgraced payments company Wirecard, told MPs that German regulators and politicians were not to blame for the fall of the company, and that he hoped prosecutors would succeed in tracing its missing billions. 


NATIONWIDE DOUBLES AMOUNT SET ASIDE FOR BAD LOANS

FT - Oliver Ralph (2020-11-20)

Nationwide doubled the amount it has set aside for bad loans and reported a drop in benefits for its members as it deals with the fallout from the pandemic.


BANKS TURN TO AI AS REGULATORS PRESS FOR LIBOR EXIT

FT - Jane Croft (2020-11-20)

Frequently described as the world’s most important number because it underpins trillions of dollars of transactions, the London interbank offered rate (Libor) has persisted until now despite a scandal that caused lasting reputational damage to the entire financial system.


CANADA SAW TENS OF THOUSANDS OF SIX-FIGURE EARNERS APPLY FOR EMERGENCY INCOME

Better Dwelling - Stephen Punwasi (2020-11-20)

Today we’re looking at CERB applicants by income reported in tax filings the previous year. For non-Canadians, the Canada Emergency Response Benefit (CERB) was a $2,000 monthly emergency payment, given to people with pandemic related income losses. This is a similar amount made by many low income Canadians. However, it’s a lot lower than the income made by thousands of people that applied.


IBAO REACTS TO POSSIBILITY OF CREDIT UNIONS SELLING INSURANCE

Canadian Underwriter - Greg Meckbach (2020-11-20)

“We believe there is a public consultation that is going to take place in 2021, so we will wait and see what the details are,” Colin Simpson, CEO of the Insurance Brokers Association of Ontario, said in an interview Wednesday.


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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.


B.C. ECONOMIC BRIEFING

Central 1 - Central 1 (2020-12-08)

The unemployment rate edged lower to 10.7 per cent from 11.1 per cent in July as labour force participation edged up. Metro Vancouver’s rate came in at 12.4 per cent.


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.


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CANADA’S RAPIDLY APPROACHING FISCAL CRISIS ISN’T DRIVEN BY THE PANDEMIC

Possibly we will discover the departure of Paul Rochon as deputy minister of finance the day after the fall economic statement was not entirely coincidental. Were I in his place, I would not wish to be associated with that dog’s breakfast of bookkeeping tricks, uncosted spending and rosy scenarios, either.

If it was not clear on the day, it is abundantly clear by now that the government is quite literally keeping two sets of books. The random bits of deceit strewn throughout the document – the “3 to 4 per cent of GDP” stimulus that is actually a third of that amount; the subtraction of $16-billion from program spending by renaming unexpected increases in the cost of government employee benefits as “net actuarial losses”; the casual “oh, by the way” revelation that last year’s deficit was $20-billion over budget – are but a distraction from the larger duplicity, which is that the headline figures for spending, the deficit and the debt are utterly invalid, if not altogether meaningless.

What is the point of laying out a five-year track for, say, the deficit, showing it declining majestically to $25-billion from $382-billion, only to acknowledge that none of this actually applies – that the actual deficit for any given year will be at least $10-billion and as much as $50-billion more than what was just announced, once promised-but-not-costed “stimulus” spending is added in?

What meaning do we attach to spending projections that leave out, not only the $100-billion over three years for “stimulus,” but also the (unstated, but likely in the tens of billions annually) cost of a universal child-care program, national pharmacare, plus a sizable reform of the fiscal stabilization program, all of them promised in the same document? We are accustomed to projections that are rendered meaningless by future budgets – spending in future years almost always exceeds what was forecast, often by a wide margin – but it is a little much to see them issued and invalidated on the same day.

For that matter, what incentive does the federal government have, so long as it can count on the Bank of Canada to bail it out? The main reason all this borrowing, in Canada and around the world, has not pushed interest rates higher already is that central banks have been financing much of it. The Bank of Canada is currently buying $4-billion in bonds every week on the open market, plus 13 per cent of every auction. All told, economists at the Bank of Montreal calculate the central bank is “on track to buy just under 80 per cent of gross issuance this year.”

Eventually, the bank will have to start to unwind this unprecedented expansion in its balance sheet or risk seeing inflation ignite. That should be fun.


CANADA ADDS 62,000 JOBS IN NOVEMBER; UNEMPLOYMENT RATE FALLS TO 8.5 PER CENT

November’s job gain was the weakest since the recovery began in May. However, it was also better than expected. The median estimate from economists was for a gain of 20,000 positions, with several calling for a decline due to tighter COVID-19 restrictions.

A decline may simply be postponed. Statscan’s report pertained to work conditions between Nov. 8 and 14, thereby missing further tightening of restrictions in some parts of the country, such as Toronto and nearby Peel Region.

“As a result, it’s likely that Covid will catch up with the Canadian economy in the December data, with a decline expected in both employment and overall economic activity,” said Royce Mendes, senior economist at CIBC Capital Markets, in a note to clients.

 

The November report showed various cracks in the labour market. For one, Manitoba lost around 18,000 jobs. Before Statscan’s survey period, the province had imposed tighter public-health measures – including a ban on in-person shopping of non-essential goods – in a bid to curb rapidly worsening infections. Most of those affected last month were working part-time hours, Statscan noted.

At a national level, the information, culture and recreation industry lost 26,000 positions. Accommodation and food services fell by 24,000 jobs for its second consecutive monthly decline. About one-quarter of people on temporary layoff last month were in the hospitality industry. It’s almost assured that more pain is coming as restaurants are targeted by restrictions and bookings fall dramatically.


CSA TACKLES TRADERS WHO “SHORT AND DISTORT”

Critics have long complained that the Canadian approach to short selling generally is too lax. Yet, regulators have defended the Canadian regime and made the case for ensuring that short selling is part of the market as it contributes to market liquidity and price discovery.



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