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.
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.
FP - Barbara Shecter (2020-10-20)
Boaz Manor, a former Canadian hedge fund manager who served jail time following the collapse of Portus Alternative Asset Management Inc. in 2005, was indicted Friday on fresh criminal charges in the United States in connection with an alleged securities fraud scheme at an entirely different venture: a New York-based blockchain technology startup.
Bloomberg - Ferdinando Giugliano (2020-06-20)
Nevertheless, Lagarde and her colleagues would be wise to read the staff paper closely. Among all the carefully worded language, one can clearly see the contours of a monetary framework that would work for the ECB’s third decade. These include changing the inflation target to 2%, and maintaining all of the instruments — asset purchases, long-term loans to the banking system and negative interest rates — that the central bank used throughout the presidency of Lagarde’s predecessor, Mario Draghi.
The argument for a symmetric inflation target is rooted in the power of expectations. The ECB at the moment aims to reach an inflation rate “close to but below 2%.” This means that, as price pressures start climbing toward 2%, investors and consumers expect the ECB to react aggressively, tightening monetary policy to push inflation back. The authors believe this served the ECB well during its first decade, when it had to establish its reputation and fight off inflationary forces.
However, the objective has been less useful in today’s era of persistently low inflation. It may even be counterproductive. Consumers and investors don’t expect the central bank to act so decisively to counter deflation.
G&M - James Bradshaw (2020-04-23)
It is a convoluted web of suspect dealings and payments that stretches back more than two decades.
G&M - Nichola Saminather (2020-01-28)
Canadian insurer Sun Life Financial’s asset-management unit is eyeing its first middle-market private-debt acquisition as it seeks to expand into the higher-yielding investments, one of its top executives told Reuters.
G&M - Michael Babad (2020-01-28)
Canada’s economy is flatlining, temporarily at this point.
G&M - Robert Mclister (2020-01-28)
The Wuhan coronavirus, which at last count has killed more than 80 people and infected more than 2,800 in China, is about to make fixed mortgage rates cheaper for Canadians.
G&M - Lucia Mutikani (2020-01-28)
Sales of new U.S. single-family homes fell unexpectedly in December, likely held down by a shortage of more affordable homes, but lower mortgage rates supported the overall housing market.
G&M - Rob Carrick (2020-01-28)
Toronto-Dominion Bank has targeted its financially weakest customers to boost profits.
FP - Barbara Shecter (2020-01-28)
Maureen Jensen’s decision to leave the Ontario Securities Commission nearly a year before her term as chairperson expires is reviving debate over the relationship between Canada’s largest capital markets watchdog and the government that oversees it.
Finextra - Finextra (2020-01-28)
Berlin-based banking startup N26 claims to have recruited 250,000 new customers in the US, just six months after opening its doors Stateside.
Bobsguide - Bobsguide (2020-01-28)
On December 31, 2019 a group of hackers called Sodinokibi launched a cyberattack on the Travelex network. The group held the foreign exchange company to ransom for £4.6m the Telegraph reported. The attack went on to cause disruption at Lloyds, Barclays, and Royal Bank of Scotland.
Finextra - Finextra (2020-01-28)
Former Barclays' investment banking head Diamond and fellow Atlas Capital partner David Schamis are the sole shareholders in Praxia Bank, which was formed out of the ashes of Credicom Consumer Finance Bank, a specialist Greek automotive lender, following its acquisition from Credit Agricole in June last year.
Finextra - Finextra (2020-01-28)
The Select Committee of Financial and Regulatory Technology, established in September, is undertaking a review of Australia's innovation sectors, for which it has received 123 submissions.
Finextra - Finextra (2020-01-28)
Monzo customers are currently charged a fixed 50p per day overdraft fee but from April this year, the fee will shift to an EAR of 19%, 29% or 39% (variable), depending on the user’s credit score.
IE - Rudy Mezzetta (2020-01-28)
On Friday, Prosper Canada submitted a proposal to the Department of Finance Canada asking Ottawa for $20.7 million over five years to fund its Financial Empowerment Champion (FEC) program, which supports community organizations that provide financial education, tax-filing assistance and money management coaching to “financially vulnerable” Canadians.
Reuters - Anna Irrera (2020-01-27)
JPMorgan Chase & Co (JPM.N) has hired senior banking technology executive Gavin Leo-Rhynie as head of engineering and architecture for the corporate and investment bank (CIB), according to a memo seen by Reuters.
Bloomberg - Catherine Bosley (2020-01-27)
Sight deposits at the Swiss National Bank increased only marginally last week, suggesting President Thomas Jordan and his colleagues aren’t taking much action to counter the strengthening franc.
WSJ - Nick Timiraos (2020-01-27)
As part of their contingency planning for the next recession, the Fed is looking at a stimulus scheme the U.S. last used during and after World War II.
WSJ - Patricia Kowsmann, Giovanni Legorano and Ben Dummett (2020-01-27)
Paymentsource - John Adams (2020-01-27)
Two of the largest U.S. fueling station chains are adopting technology that separates the act of pumping gas from the transaction — and in the process, enabling that the purchase of fuel to become a gateway to in-car shopping.
Information Age - Info-age (2020-01-27)
The automation study, carried out by fintech firm Avaloq, also found that increased used of open and collaborative platforms (34%) and more distributed ledger technologies and cryptocurrencies (26%) could play a major role in financial services going forward.
Bloomberg - Vince Golle (2020-01-27)
Probability of U.S. recession within 12 months
Yahoo Finance - Alicja Siekierska (2020-01-27)
The growth comes as many malls invest millions in upgrades and add sales-boosting tenants, including luxury retailers and high-margin Tesla showrooms. Just five of the top 30 Canadians malls did not feature an Apple store, which the report said could lift sales by more than $100 per square foot.
Global News - Erica Alini (2020-01-27)
TD will start charging compound interest on all its branded personal credit cards, Global News has learned.
Insurance Business - Lyle Adriano (2020-01-27)
An earthquake of 1.9 magnitude has been detected in the Fraser Valley – the latest tremor report in a string of incidents that began in late December.
Insurance Business - Bethan Moorcraft (2020-01-27)
According to the Allianz study, which focuses on large and small- to mid-sized enterprises in 22 industry sectors and 102 countries, cyber incidents (including cybercrime, IT failure/outage, data breaches, fines and penalties) were the top concern, followed by business interruption, changes in legislation and regulation, natural catastrophes, and market developments.
Insurance Business - Lyle Adriano (2020-01-27)
The owners of a California-based solar power company have pleaded guilty in connection to a scheme that defrauded nearly a billion dollars from companies such as Berkshire Hathaway and Progressive Insurance.
FT - Valentina Romei (2020-01-27)
Banks approved 46,800 mortgages during the month, up 6.3 per cent from November, and 19.6 per cent higher than in December 2018, according to UK Finance, an industry body that tracks seven high-street banking groups that account for roughly two-thirds of the overall market.
FT - Kadhim Shubber (2020-01-27)
A group of influential US lawyers has urged Congress to toughen insider trading laws by making insiders liable even when they do not benefit from giving non-public information to traders.
FT - Amin Rajan (2020-01-27)
“If you don’t accept technology, you better go to another place, because no place here is safe,” said Robert Rauschenberg, one of the most iconic visual artists of the last century. The message is not lost on fund managers as they enter the new decade — one that will be shaped by five foundational shifts requiring slim-lined businesses that deliver what they promise:
FT - Alistair Gray (2020-01-27)
The scale of the upheaval across much of the US retail sector has been laid bare by figures showing that about one in 10 listed companies has gone bankrupt since 2008 and the value of shopping malls has tumbled 30 per cent in the past three years. About half of department stores in malls are predicted to close and another 500,000 retail jobs cut by 2025 in two industry reports that warn the disruption is set to accelerate. Retail sales overall have been buoyant as shoppers have moved online, but trade credit insurer Euler Hermes said the rise of ecommerce had benefited a small number of companies and hurt profitability across much of the sector. Amazon will this week provide details of its performance over the holiday shopping season, which founder Jeff Bezos has described as “better than ever”. The group is forecast to record a 19 per cent year-on-year rise in quarterly revenues to a record $86bn, although the rollout of one-day shipping is expected to dent profit margins. The earnings report was likely to show that Amazon’s retail business was “accruing most of the benefit” from an industry-wide spike in online orders, said Youssef Squali, analyst at SunTrust. Holiday ecommerce sales jumped nearly 19 per cent, according to Mastercard.
Yahoo Finance - Ben Werschkul (2020-01-27)
"What folks don't really understand is we have several trusts funds in really imminent danger," Goldwein says in an interview with Yahoo Finance’s “On the Move.” "We don't need to save Social Security for our grandkids, we actually need to save it for our grandparents.”
Bloomberg - Jennifer Surane (2020-01-27)
After years of trying to persuade more of America’s 30 million small businesses to accept its cards as payment, AmEx in 2019 reached “virtual parity” coverage with Visa and Mastercard in the U.S., American Express Co. Chief Executive Officer Steve Squeri said Friday.
G&M - Josh O'Kane (2020-01-27)
Janet Bannister has been named managing partner of Real Ventures, becoming the first woman to lead one of Canada’s largest and most active early-stage venture-capital firms.
Canadian Underwriter - Jason Contant (2020-01-27)
“I’m very pleased to announce that ride-hailing is finally coming to Vancouver,” the mayor said in a statement. “We’ve been working hard to prepare for this, and staff have turned around business licences for Uber and Lyft on the same day they were issued by the province.”
Investment Executive - Greg Dlagetty (2020-01-27)
“Investors rely on auditors to carry out their work with professional skepticism and proper oversight,” Jeff Kehoe, the OSC’s director of enforcement, said in a statement. “When auditors fall short, investors lose confidence in the integrity of financial reporting, a cornerstone of our capital markets.”
IE - James Langton (2020-01-27)
“While it is premature to predict the path of today’s coronavirus outbreak, we estimate that a SARS-equivalent pandemic today could have a similar impact on the Canadian economy with an estimated hit of just over 0.1% on the level of GDP by mid-2020, at which point a pandemic should be contained,” the Scotia report stated.
IE - Mark Burgess (2020-01-27)
The Wealthsimple North America Socially Responsible Index ETF will invest primarily in Canadian and U.S. equities that don’t violate “commonly held social and environmental values,” the preliminary prospectus says.
IE - James Langton (2020-01-27)
“Acquiring a fintech provider such as Clearpool helps BMO increase operational efficiency, providing digital infrastructure that enhances institutional clients’ digital experience, which is an increasingly important element of client-retention strategies,” Moody’s said.
G&M - Reuters (2020-01-27)
Credit-card issuer American Express Co reported a fourth-quarter profit on Friday that beat analysts’ estimates, as more people used its cards for shopping and paying bills while a strong U.S. retail sales environment also helped.
G&M - Rob Carrick (2020-01-27)
The economy simply will not co-operate in generating the sparks needed to move interest rates higher.
CBC - AP (2020-01-27)
Teenage climate activist Greta Thunberg has brushed off criticism and mockery from the U.S. Treasury chief, saying Friday his comments have "of course no effect" on her and fellow campaigners.
FP - Kevin Carmichael (2020-01-27)
This week’s commentariat included a new addition. Trevin Stratton, chief economist at the Canadian Chamber of Commerce, expressed dismay over the central bank’s revised outlook, which assumes the economy essentially stalled in the fourth quarter, and foresees only lacklustre growth of 1.6 per cent in 2020.
FP - Geoff Zochodne (2020-01-27)
Rees said they are looking to deepen ties with Canadian households, but also noted the outlook for business banking is favourable. The bank’s economics unit is projecting business investment in Canada to outpace that in the United States in 2020 “by a healthy margin,” Rees said, with the majority of Canadian businesses expecting to invest even more over the next 12 months.
FP - Hannah Levitt (2020-01-27)
A group of former Wells Fargo & Co. executives are facing almost US$59 million in fines and bans from the U.S. banking industry over their roles in the firm’s scandals as regulators show more appetite to go after individuals.
FP - Terence Corcaran (2020-01-27)
Reform may already be underway. In a fiscal statement last November, the government announced the creation of a “task force” to review the role of the OSC. The Securities Act has not been reviewed in over 15 years, said the government. The act is “outdated, and should support modern capital markets. Ontario will undertake measures to create a modernized securities regulatory framework that is responsive to innovation and changes in a rapidly evolving marketplace.”
FP - Franco Terrazzano (2020-01-27)
The last thing Alberta taxpayers need is another pension Ponzi scheme, but that’s exactly what taxpayers can expect if the provincial government recreates the Canada Pension Plan in Alberta without fundamentally over-hauling it.
Reuters - John O'Donnell (2020-01-27)
Switzerland’s market supervisor is scrutinizing Credit Suisse’s oversight of chief executive Tidjane Thiam and his top lieutenants as part of a probe into corporate espionage, two people with direct knowledge of the investigation said.
Reuters - Reuters (2020-01-27)
Wells Fargo & Co and its officials have racked up well over $4 billion (3 billion pounds) in penalties since a sales practices scandal erupted in 2016, and continues to face headwinds.
G&M - Rob Carrick (2020-01-24)
The economy simply will not co-operate in generating the sparks needed to move interest rates higher.
G&M - James Bradshaw (2020-01-24)
Bank of Nova Scotia predicts that its Latin American operations can continue to churn out rising profits in the coming years, as the bank works to assuage concerns about the region’s civil unrest and slower economic growth.
G&M - Sean Silcoff (2020-01-24)
The federal government has enticed Mastercard Inc. to open a technology research and development centre in Vancouver with $49-million in incentives through its Strategic Innovation Fund (SIF).
FP - Clare O'Hara (2020-01-24)
Som Seif’s Purpose Financial LP is making a major move into the financial-adviser business by scooping up Wealthsimple for Advisors.
FP - Hannah Levitt (2020-01-24)
A group of former Wells Fargo & Co. executives are facing almost US$59 million in fines and bans from the U.S. banking industry over their roles in the firm’s scandals as regulators show more appetite to go after individuals.
FP - Doug Alexander (2020-01-24)
“We have a longer-term transition as we change the energy source, we move to a greener economy, but it is a transition,” McKay said Thursday during a Bloomberg Television interview at the World Economic Forum in Davos, Switzerland. “You need fossil-based fuels to make that transition — they’re not going away overnight.”
Reuters - Elizabeth Dilts Marshall (2020-01-24)
That was a 1.6% increase from the $31 million he received for 2018. The bank said it was based on its strong performance last year and “over the long term,” according to the filing. The bank said its board of directors considered the bank’s business results, risk controls and conduct, client, customer and stakeholder focus and teamwork and leadership when determining Dimon’s pay.
Bloomberg - Chris Fournier and Erik Hertzberg (2020-01-24)
A more dovish than expected tone from Bank of Canada Governor Stephen Poloz is intensifying focus on incoming economic data, with Friday’s retail sales numbers now in the crosshairs.
Finextra - Finextra (2020-01-24)
New Delhi-based Pine Labs provides merchants with cloud-based POS software that lets them accept cards, as well as QR-code-based payments and other unified payments interface (UPI)-based offerings. Today, it processes payments of US$30 billion per year and serves some 140,000 merchants across about 450,000 network points.
NY Times - Katie Thomas (2020-01-24)
Frustrated with high drug prices, especially on essential medicines like insulin, state and federal lawmakers have signaled interest in manufacturing generic medications to try to lower costs for millions of Americans. Gov. Gavin Newsom of California recently floated a similar proposal, in which the state would contract with outside manufacturers to sell generic drugs under the state’s own label. And Senator Elizabeth Warren, the Massachusetts Democrat seeking her party’s presidential nomination, has advanced a similar proposal.
WSJ - Michael S. Derby (2020-01-24)
The Federal Reserve Bank of New York intervened with two temporary additions of liquidity that nevertheless amounted to a modest reduction in the overall amount of temporary liquidity the central bank is adding to financial markets.
WSJ - Tom Fairless (2020-01-24)
The ECB signaled it will leave negative interest rates in place for some time, despite growing misgivings with the unconventional policy tool, as trade tensions continue to drag on the export-focused eurozone economy.
WSJ - Mike Bird (2020-01-24)
Nonbank financial institutions have a growing presence in cross-border credit, but we won’t know the real effect until a downturn arrives.
WSJ - Michael S. Derby (2020-01-24)
Better Dwelling - Kaitlin Last (2020-01-24)
Greater Vancouver detached real estate prices are still falling. REBGV reported the detached benchmark, a.k.a. typical home, price fell to $1,423,500 in December, down 4.0% from the same month last year. In the city, Vancouver East prices fell to $1,390,100, down 3.1% over the same period. Vancouver West fell to $2,588,900, down 6.7% from a year before. These are hefty drops from a year ago, but there are some signs of stabilization.
Canadian Underwriter - Greg Meckbach (2020-01-24)
At $250 million, the Halloween storm in eastern Ontario/Quebec ranked first on a list of 2019 severe weather events. The Niagara and Montreal areas were the hardest hit, both in terms of wind and water damage, IBC reported earlier.
Finextra - Finextra (2020-01-24)
Unveiled at Davos, the new consortium aims to tackle the challenge with an international, multi-stakeholder approach involving both the public and private sectors.
Finextra - Finextra (2020-01-24)
The UK central bank says it requires "an experienced partner to assist in design, construction and assurance of a modern, fit for purpose cloud environment."
Finextra - Finextra (2020-01-24)
The doubling in customer numbers mirrors similar growth in third party service providers. Currently there are 204 regulated providers, up from 100 at the end of 2018, who are fielding approximately 200 million monthly calls on bank account data.
Insurance Portal - Insurance Portal (2020-01-24)
The deal, valued at more than $560-million, covers more than 3,700 retirees and beneficiaries. Morneau Shepell says Sun Life was awarded the buy-in group annuity contract following a thorough due diligence process.
Insurance Portal - IIJ (2020-01-24)
In a statement, the J5 said the action took place as part of a series of investigations in multiple countries into an international financial institution located in Central America, whose products and services are believed to be facilitating money laundering and tax evasion for customers across the globe.
G&M - DAVID PARKINSON (2020-01-23)
In case you had any doubt, Bank of Canada Governor Stephen Poloz stated it in plain English: The door is open for a rate cut. The bigger question now is, what would make the central bank boss walk through it?
G&M - Bill Curry (2020-01-23)
Bank of Canada Governor Stephen Poloz said weaker economic growth in the fourth quarter is spilling into the early part of 2020 and signalled a possible interest rate cut should that weakness continue.
G&M - Nicole Thompson (2020-01-23)
German automotive giant Volkswagen AG was ordered Wednesday to pay a $196.5-million fine to the Canadian government after pleading guilty in an emissions-cheating scandal.
FP - Esteban Duarte (2020-01-23)
Debt due in two decades would help Canada insulate its finances against higher interest rates down the road, but it would also allow asset managers to better pair similarly dated liabilities with government bonds. That’s the view of Randall Malcolm, Toronto-based senior managing director of fixed income at SLC Management, which oversees $227 billion (US$173.8 billion).
FP - Zkhanpm (2020-01-23)
BMO Financial Group on Wednesday announced the acquisition of fintech electronic trading company Clearpool Group Inc. for an undisclosed amount.
Reuters - Paulina Duran, Nikhil Nainan (2020-01-23)
Westpac’s woes are part of wider ructions in the banking industry. Three of the four banks that dominate the Australian market have lost their leaders in the wake of damaging revelations from a government-backed inquiry into misconduct in the industry.
Reuters - Elizabeth Dilts Marshall (2020-01-23)
Veteran Morgan Stanley (MS.N) executive Rich Portogallo, who was key in building the bank’s prime-brokerage business, is retiring, according to an internal memo seen by Reuters on Wednesday.
Bloomberg - Erik Hertzberg and Theophilos Argitis (2020-01-23)
The near-term slowdown coupled with a slight upward revision to potential growth prompted the central bank to increase its estimate for the amount of slack in the economy -- from about 0.25% of output in the third quarter to about 0.75%. The bank also projected the economy will be in a state of excess capacity through the end of 2021. That build up in slack -- which bolsters the case for a rate cut -- is being weighed against the possibility that lower interest rates will fuel financial vulnerabilities, Poloz said at the press conference.
Bloomberg - Doug Alexander (2020-01-23)
The head of Canada’s third-largest lender pointed to “substantial” efforts to simplify its geographic spread and operations from six years ago, when it was in 55-plus countries. That’s left Scotiabank with scale and competitive advantages in six core markets -- Canada, the U.S. and the Pacific Alliance countries of Mexico, Peru, Chile and Colombia -- that represent 85% of earnings at the Toronto-based lender, Porter said.
“We have radically simplified the bank’s operations, removed distractions, and focused on the Americas,” he said. “Today we are a highly competitive player in each of our core markets, with multiple avenues for growth.”
Scotiabank disclosed its expectations for the company in its presentation materials, including getting 40% of earnings from Canadian banking and 30% from international banking. Global wealth management, Scotiabank’s newest standalone division, and its global banking and markets unit will each account for 15% of earnings.
Better Dwelling - Kaitlin Last (2020-01-23)
The sales to new listings ratio (SNLR) is one way to measure relative demand for inventory. The ratio is exactly what it sounds like – the ratio of home sales, compared to newly listed homes for sale. Using this measure, we get some idea of how quickly inventory can be replenished. The industry uses this as one of the methods of determining if a market is hot or not.
G&M - Joseph Groia (2020-01-23)
Do most Ontarians know that there is more than $100-million of public money sitting in a bank account at the Ontario Securities Commission (OSC) just waiting to be spent on health care, education or legal aid? Unfortunately, they may not as the OSC is badly behind on its statutory corporate-governance obligations (ironically for our capital markets regulator). It is also not clear what Queen’s Park plans to do about it.
G&M - Luke Baker (2020-01-23)
France and the United States agreed on Thursday how to press ahead with a global rewrite of cross-border tax rules for the digital era, French Finance Minister Bruno Le Maire said.
G&M - Tara Deschamps (2020-01-23)
The Bank of Nova Scotia’s senior vice president and chief economist isn’t fretting over a potential recession because he believes predictions that one will hit Canada are “exaggerated.”
G&M - Frances Bula (2020-01-22)
The official picture of Vancouver’s office-tower scene is blindingly bright: almost zero vacancy, more companies clamouring for space, and near euphoria over the city’s transformation from a resources-only town to a rapidly growing tech centre that is filling up commercial buildings faster than they can be put up.
FT - Jamie Powell (2020-01-22)
While fears over coronavirus continue to spread in China (and just now, in Taiwan), there’s news of another ailment watchers of the People’s Republic have been concerned about for the past decade: corporate debt.
FT - Joe Rennison, Robert Armstrong, Robin Wigglesworth (2020-01-22)
When Josh Barrickman became known as the new “bond king”, his colleagues teased the taciturn fund manager by leaving paper crowns from Burger King at his desk.
FT - David Crow (2020-01-22)
When bank executives descended on Davos last year for the annual meeting of the world’s elite, they did so under a cloud.
FT - David Crow, Gillian Tett (2020-01-22)
The leaders of major banks and other financial companies have rejected suggestions that they are not doing enough to combat climate change and resisted calls that they should refuse to work with clients that are major polluters. The comments came at the World Economic Forum in Davos on Tuesday, after climate campaigner Greta Thunberg hit out at companies that she said were not doing enough. Mike Corbat, chief executive of Citibank, said it was not the job of banks to ensure that companies were adopting environmentally friendly business models by unilaterally cutting off finance for polluting businesses.
Reuters - Sumeet Chatterjee, Scott Murdoch (2020-01-22)
Bank of America Corp (BAC.N) will recruit about 50 bankers for its investment banking team in Asia this year, as it pushes to bolster its dealmaking business and shore up revenues from the unit, three people with direct knowledge of the matter said.
Reuters - Greg Roumeliotis (2020-01-22)
The IPO was canceled after investors raised questions about WeWork’s valuation and corporate governance arrangements that gave its co-founder Adam Neumann too much control.
Bloomberg - Bloomberg (2020-01-22)
In public appearances since October, including a number from Poloz, officials have sought to accentuate the positive, highlighting the nation’s strong jobs market and on-target inflation. At the same time, they’ve been reluctant to put much stock in weaker indicators they say are transitory.
Last month, Deputy Governor Timothy Lane defended the Bank of Canada’s decision to buck the global easing trend, saying the nation’s resilient economy is allowing it to “chart its own course in monetary policy.”
Better Dwelling - Better Dwelling (2020-01-22)
The assets held by Canada’s MFCs have exploded in growth over the past few years. MFCs held $63.66 billion in assets at the end of 2018, up 10.09% from the year before. Since 2007, MFC assets are 7,606% higher. The average annual pace over growth since then has been 83.38% a year. This segment went from a relatively small industry, to a big one.
G&M - David Berman (2020-01-21)
For anyone who enjoys the peculiar satisfaction that comes when one of your stock holdings splits in two, 2019 was bereft of joy. Just two Canadian companies completed stock splits last year, a drought made more severe by the fact that the S&P/TSX Composite Index surged 19 per cent.
G&M - Gordon Pape (2020-01-21)
The year just ended was a good one for income-oriented investors. Prices of interest-sensitive securities rose as the U.S. Federal Reserve Board changed direction and lowered rates three times.
G&M - Clare O'Hara (2020-01-21)
Online financial services provider Wealthsimple Inc. has partnered with two major Canadian banks as it prepares to launch the first of three new banking products under development – a chequing account service to be called Wealthsimple Cash.
G&M - Clare O'Hara (2020-01-21)
Insurance adviser Hub Financial Inc. has partnered with robo-adviser Nest Wealth to broaden its investment portfolio capabilities, including adding access to low-cost exchange traded funds for Hub clients.
G&M - James Bradshaw (2020-01-21)
The federal government can make longer-term mortgages more attractive to banks and their customers by loosening a stress test for borrowers if they choose terms of 10 years or longer, according to the C.D. Howe Institute.
G&M - Pan Pylas (2020-01-21)
Climate issues are set to be one of the main talking points at the World Economic Forum in the Swiss ski resort of Davos this week, but a survey of CEOs released Monday shows that they are not even ranked among the top ten threats to business growth.
FP - Paula Sambo (2020-01-21)
“I do ring the alarm bell on not to be too invested in illiquid assets,” Mark Machin, chief executive officer of the Canada Pension Plan Investment Board, said in a Bloomberg Television interview Monday at the World Economic Forum in Davos. “We are very comfortable with our risk models and what we would do in various lurches down markets, but I do worry about the expansion of a lot of funds like us around the world into private illiquid assets.”
FP - Geoff Zochodne (2020-01-21)
Two major financial players in Canada have acknowledged they have made payments to German authorities after a bank they partly owned became entangled in an investigation into alleged tax fraud in Europe.
Reuters - Gwénaëlle Barzic, Maya Nikolaeva (2020-01-21)
JPMorgan Chase & Co (JPM.N) is the latest investment bank to significantly expand its Paris hub as part of plans to relocate some services from London after Britain’s exit from the European Union, snapping up new premises in the French capital.
Bloomberg - Doug Alexander (2020-01-21)
Bank of Montreal Chief Executive Officer Darryl White says he still favors the U.S. for expansion over China, even with some of the world’s biggest lenders clamoring to expand in Asia’s biggest economy.
Bloomberg - David Goodman (2020-01-21)
The European Central Bank and Bank of Japan are among Group of Seven institutions leading the charge this week with their first interest-rate meetings of 2020, each of which may set the tone for the year ahead.
WSJ - Rochelle Toplensky (2020-01-21)
France has more to offer investors than striking workers. Its banks have produced shareholder returns to rival those of JPMorgan Chase and Citigroup, and there is no reason why the trend can’t continue.
WSJ - PAUL J. DAVIES (2020-01-21)
Increased dependence on short-term market funding comes as growth among the main shadow-banking funding sources has slowed.
Better Dwelling - Daniel Wong (2020-01-21)
Canadian household debt reached a new all-time high, but lost a little steam. The balance of household debt reached $2.26 trillion in November, up 0.22% from the month before. This represents an increase of 3.9% from last year. The 12-month rate of growth is lower than it was a month before, but still higher than the same month last year. Yeah, it’s tricky as heck when looked at as an aggregate, so let’s dive into the segments.
Finextra - Finextra (2020-01-21)
The group - comprising The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank and the Swiss National Bank, together with the Bank for International Settlements (BIS) - will assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies.
Fraser Institute - Finn Poschmann (2020-01-21)
Governments are often encouraged to respond to economic downturns by way of discretionary spending measures intended to stimulate growth, offsetting the negative impacts of reduced private sector activity. In recent decades, governments have placed particular emphasis on public infrastructure investment as a response to recessions.
Wired - Taavet Hinrikus (2020-01-21)
Because banks have had a captive audience and local networks, many services they offer are woefully out of step with a globalised society, none more so than international payments. This is an enormous industry – according to McKinsey, $10 trillion is sent across borders by consumers and small-to-medium businesses every year – but it is plagued by excessively high charges that make moving this money outrageously expensive for the regular consumer or business owner. In March 2019, the World Bank estimated the average cost of a remittance at 6.94 per cent of the transfer value. On a £500 transfer, that’s nearly £35.
Finextra - Finextra (2020-01-21)
With bases in Lagos and San Francisco, Flutterwave is one of several African fintech firms looking to cash in on the continent's drive to electronic payments.
Insurance-Portal.ca - IIJ (2020-01-21)
Toronto law firm, Koskie Minsky LLP announced late last week that it has commenced a class proceeding concerning the payment of trailing commissions to Canadian online trading brokers. The law firm says the class action is being brought on behalf of all persons who purchased mutual funds through a Canadian discount brokerage.
Insurance Business - Alicja Grzadkowska (2020-01-21)
Katie Grieve (pictured) has a whole list of accomplishments and goals she’s reached over the course of her broking career, which include earning her CAIB designation in 2014, becoming a team leader on the Insurance Brokers Association of Ontario’s (IBAO) Young Brokers Council (YBC) in 2019, and taking on the role of treasurer for the local affiliate, Windsor Essex County Insurance Brokers Association, also in 2019.
Insurance Business - Paul Lucas (2020-01-21)
Montague, who took the reins at Aviva in 2015, built his career as a solicitor and businessman. He worked at Linklaters and Paines from 1971-1994, before switching to investment bank Dresdner Kleinwort and later into the public sector as the chief executive of the Private Finance Initiative Task Force at HM Treasury until 2000.
Insurance Business - Lyle Adriano (2020-01-21)
The post-mortem report prepared by the federal bank modeled how a cyberattack on a single large bank, a group of smaller banks, or a common service provider could be transmitted through the wholesale payments network.
OSC - OSC (2020-01-21)
“It has been an honour to serve Ontario investors and market participants,” said Chair Jensen. “These past nine years have been the most meaningful in my career. I have enjoyed every moment working alongside my respected colleagues and leadership team, and contributing to Ontario’s vibrant, healthy and internationally recognized capital markets.”
G&M - Greg Mcarthur (2020-01-21)
Ontario Securities Commission chair and CEO Maureen Jensen is resigning almost a year before her term expires amid tensions with the Progressive Conservative government.
G&M - David Milstead (2020-01-21)
TMX Group Ltd. CEO Lou Eccleston left the company with nearly $44-million in company stock awards after a five-year tenure that ended abruptly earlier this month after TMX investigated allegations he sexually harassed employees during his tenure at Bloomberg LP in the 1990s.
G&M - Clare O'Hara (2020-01-21)
A group of do-it-yourself investors has filed a lawsuit against Canada’s discount brokerage firms, alleging the brokers improperly received millions of dollars in fees from mutual fund investors for advice they never provided.
G&M - Andrew Willis, James Bradshaw (2020-01-21)
The technology race between Canada’s big banks is heating up, with Bank of Montreal in talks to acquire U.S. trading software company Clearpool Group Inc. for approximately $100-million, according to multiple sources familiar with the transaction.
G&M - David Berman (2020-01-21)
David Rosenberg estimates the chances of the U.S. economy slipping into recession in 2020 at about 50 per cent – marking a modest improvement in his outlook, although the economist remains far from sunny.
Economist - Economist (2020-01-21)
In 1971 a precocious German academic—at 32 years old, the holder of five degrees in engineering and economics—hosted a conference. The setting was the newly opened congress centre in the Swiss resort of Davos, best known for its tuberculosis sanatoriums and as the backdrop for Thomas Mann’s “The Magic Mountain”. Klaus Schwab wanted to use the symposium to make European businesses think more about stakeholders beyond those who own their shares, and to expose them to American management methods. The fees paid by the 450 who came generated a profit of SFr25,000 ($75,000 in today’s money), which Mr Schwab used to endow the European Management Forum.
Economist - Economist (2020-01-21)
The biggest challenge economists face today is how to deal with downturns. America’s expansion is the longest on record; a slowdown at some point is inevitable. The fear is that central banks will not have enough tools to fight the next recession. During and after the financial crisis they responded with a mixture of conventional interest-rate cuts and, when these reached their limit, with experimental measures, such as bond-buying (“quantitative easing”, or qe) and making promises about future policy (“forward guidance”). The trouble is that today across the rich world short-term interest rates are still close to or below zero and cannot be cut much more, depriving central banks of their main lever if a recession strikes.
G&M - DAVID PARKINSON (2020-01-20)
The Bank of Canada will be weighing deteriorating economic numbers against an improving global trade climate, as it prepares this week to issue its first interest-rate decision and economic projections of 2020.
G&M - Josh O'Kane (2020-01-20)
Sitting in a sun-splashed office on the edge of the Rhine River that once belonged to West German presidents, Andreas Mundt leans his elbows on a table and nods to a yellow and blue experimental painting by the artist Maiken Bardeschi. It’s called Frei, he says – the German word for free. “I like that a lot,” he says. “Competition law is a lot about freedom. It’s about choice. And this matters a lot to me.”
FP - Doug Alexander (2020-01-20)
Canadian Imperial Bank of Commerce hired former Conservative Party lawmaker Lisa Raitt as a vice-chair for global investment banking.
FP - Geoff Zachodine (2020-01-20)
The country’s chief statistician on Tuesday said the traditional ways of collecting information have become less effective in a more digital world, and that Statistics Canada is prepared to start harnessing more “alternate” sources of data.
CBC - Jason Proctor (2020-01-20)
More than a year after Meng Wanzhou's arrest at Vancouver International Airport, the first formal phase of the Huawei executive's extradition hearing begins Monday in B.C. Supreme Court.
Reuters - Reuters (2020-01-20)
Brian Moynihan, the chief executive officer of Bank of America Corp (BAC.N), has said the bank could double its consumer market share in the United States despite fears about the power of the country’s largest banking institutions.
Bloomberg - Ishika Mookerjee (2020-01-20)
The Wall Street firm’s Asia Opportunity Fund, which focuses on equities in the region excluding Japan, returned 44% in the past year, beating 99% of its peers, according to data compiled by Bloomberg. The portfolio focuses on undervalued companies with low debt or net cash on their balance sheets, many of which are found in consumer sectors, said Kristian Heugh, who has been co-managing the fund since its inception in 2016.
Bloomberg - Nick Rigillo (2020-01-20)
It’s the latest sign that, since the global financial crisis of 2008, experts are struggling to reassert their credibility. Helge Pedersen, chief economist at Nordea in Copenhagen, says part of the reason his industry has suffered reputational damage is due to its failure to predict negative rates in the first place.
WSJ - PAUL J. DAVIES (2020-01-20)
Increased dependence on short-term market funding comes as growth among the main shadow-banking funding sources has slowed.
WSJ - Dylan tokar (2020-01-20)
Donville Inniss, a former minister of industry for Barbados, was convicted of laundering bribes he allegedly received from an insurance company that was seeking to renew a public contract.
WSJ - Michael S. Derby (2020-01-20)
As the Federal Reserve added $52.6 billion in short-term liquidity to the financial system Friday to aid money markets, central bank officials debated the program that has been in place since September.
WSJ - Michael Wursthorn (2020-01-20)
Morgan Stanley reported record revenue and profit for 2019 and the stock Thursday had it biggest gain in three years. But for some long-term shareholders, that isn’t enough.
WSJ - Mark Maremont and Leslie Scism (2020-01-20)
Bloomberg - Ronojoy Mazumdar (2020-01-20)
“The euphoria around Modi before 2014 has tapered off,” said Salman Ahmed, the London-based chief investment strategist at Lombard Odier Investment Managers, which oversees about $52 billion.
BOC - BOC (2020-01-20)
Results from the winter Business Outlook Survey suggest that business sentiment is broadly positive except in the Prairies, where indicators remain weak. In aggregate, firms’ outlook is supported by expectations of healthy domestic and foreign sales.
ZD Net - Aimee Chanthadavong (2020-01-20)
American Express (Amex) Australia has confirmed that unless Consumer Data Right (CDR) is expanded to "write-access" under Open Banking in Australia, it would not launch its Amex Pay with Bank Transfer service in Australia.
OSFI - OSFI (2020-01-20)
OSFI is revising its capital requirements for operational risk applicable to deposit-taking institutions (DTIs) to reflect the final Basel III reforms published by the Basel Committee on Banking Supervision (BCBS) in December 2017Footnote1.
OSFI - OSFI (2020-01-20)
The Office of the Superintendent of Financial Institutions (OSFI) has issued this Instruction Guide to inform the pension industry of the filing and reporting requirements for a non-insuredFootnote1 defined benefit pension plan that has terminated, in whole or in part, under the Pension Benefits Standards Act, 1985 (PBSA). These requirements also apply to plans with both a defined benefit and a defined contribution component.
QZ - Gwynn Guilford (2020-01-20)
Interest rates sure are weird these days. Five central banks currently hold policy rates negative; several are dabbling with unconventional bond-buying. The one bank that tried to raise them, the Federal Reserve, found itself back cutting rates within a year. Meanwhile, some $11 trillion worth of bonds have negative rates—guaranteeing losses for buyers that hold those to maturity.
Finextra - Finextra (2020-01-17)
Silicon Valley TCV, an early investor in the likes of Spotify, Airbnb and Netflix, closed a $3 billion fund in January 2019 to back fast-growing new economy companies.
Finextra - Finextra (2020-01-17)
Turkish banks have begun the transfer of a cryptocurrency representing physical units of gold via a blockchain platform developed by Istanbul Clearing, Settlement and Custody Bank (Takasban).
G&M - Nicolas Van Praet (2020-01-17)
Bombardier Inc. slashed its financial estimates for 2019 again on the back of continuing struggles with its train business and said it might pull out of a joint venture with Airbus SE, deepening investor concern that its turnaround is veering off the rails and raising the possibility that the company is headed for a breakup.
FP - Paula Sambo (2020-01-17)
Just two days after Christmas, Glassman’s Catalyst Capital Group Inc. sold its Canadian casino company, almost eight years after it first tried to exit its investment. A week later, Catalyst persuaded an investment group to sweeten its offer a second time for Hudson’s Bay Co., likely ending a six-month battle over the Saks Fifth Avenue owner.
FP - Terence Corcaran (2020-01-17)
We need a new model, they say, one that is “sustainable” and “green” and “social” and “environmental” and “equitable.” To create that new model will require a major economic overhaul, with new policies, incentives, structures and strategies, laws and regulations. At the same time, new social and environmental engagement will be needed to shape business investment decisions to achieve objectives that are beyond the reach of markets alone. In the words of Ottawa’s Expert Panel on Sustainable Finance, today’s markets do not accurately reflect economic and environmental reality. “Markets work best when assets are properly valued; however, in today’s market economy, climate factors are often mispriced and climate risks are generally underappreciated.”
Bloomberg - Lucy Meakin (2020-01-17)
The pound fell after the report, the latest in a string of disappointing U.K. data in recent days, and traders moved to price in a 75% chance of a cut at the BOE’s Jan. 30 meeting.
The volume of goods sold in stores and online fell 0.6% in December, confounding expectations of a 0.6% increase. Sales excluding auto fuel dropped 0.8%. The period included Black Friday and Cyber Monday, when price cuts would be expected to attract shoppers to stores.
WSJ - Telis Demos (2020-01-17)
Better Dwelling - Daniel Wong (2020-01-17)
Vancouver’s population growth is still booming, but the rental vacancy rate is climbing. Canada Mortgage and Housing Corporation (CMHC) data shows primary rentals saw vacancies increase in 2019. The rate of vacancy is now at the highest level since 2013, but it has a long way to go to clear that number.
Canadian Investor - Canadian Investor (2020-01-17)
Craig is president of Canadian Tire Financial Services and president and chief executive of Canadian Tire Bank.
Bloomberg - Shen Hong, Tongjian Dong and Yuling Yang (2020-01-17)
The quickening speed of bond defaults in China, especially among ailing private firms, highlights the growing financial strain triggered by the country’s worst economic slowdown in three decades and unabated trade tensions with the U.S. Last week, industrial firm Xiwang Group failed to pay a 1 billion yuan bond, missing a fresh repayment deadline on an already defaulted bond.
“It’s getting harder for companies to get funding help when facing a debt crisis, unless they’re centrally-controlled companies and local SOEs that have great importance to the local economy,” said Yang Hao, fixed income analyst from Nanjing Securities Co.
Founder’s missed payment on the bond, which has a 15 business-day grace period, is set to escalate concerns about the weak finances of debt-laden business arms of Chinese universities. The company and Tsinghua Unigroup Co., a top chipmaker run by arch-rival Tsinghua University, have been under the spotlight in recent months following a tumble in their dollar bonds.
FP - Esteban Duarte (2020-01-17)
The top rated nation issued a US$3 billion of bonds at 6 basis points over the U.S. Treasury yield, according to data compiled by Bloomberg. That’s equivalent to a yield in loonies of around 1.91 per cent and compares with 1.60 per cent for Canada’s five-year bonds denominated in the country’s own currency, according to data compiled by Bloomberg.
G&M - ANA SWANSON AND ALAN RAPPEPORT (2020-01-16)
U.S. President Donald Trump signed an initial trade deal with China on Wednesday, bringing the first chapter of a protracted and economically damaging fight with one of the world’s largest economies to a close.
G&M - Ian Bickis (2020-01-16)
Canadian home sales ended last year with a 22.7-per-cent jump in December compared with a year ago as prices rose as part of a trend that should continue into this year, the Canadian Real Estate Association said.
FP - Terence Corcoran (2020-01-16)
I have some welcome news for Canada’s fossil fuel industry. Bank of England Governor Mark Carney, soon to be the UN envoy on climate finance, will not be joining the fossil fuel divestment movement. “I absolutely disagree with divestment campaigns,” Carney said in an email to an FP Comment column reader in Calgary.
FP - Tegan Hill and Jake Fuss (2020-01-16)
Sound fiscal policy is crucial for a healthy economy. A key component of sound policy is the appropriate size and role of government (i.e. government spending and regulations). Higher spending comes at the expense of higher taxes, levied now or in the future through larger deficits and greater debt accumulation, all of which can influence economic growth and social progress. This issue is particularly relevant today, as 2019 marks the highest level of federal government spending in Canadian history.
Insurance Business - Lyle Adriano (2020-01-16)
The new partnership will leverage Farmers Edge’s risk management platform to enhance the insurer’s services. A release said that the platform disrupts traditional crop insurance through the use of real-time data and science-derived insights, which allows farm coverage to be personalized to better suit individual grower’s needs based on changing risks and the actions taken by the grower to mitigate those risks.
Insurance Business - Lyle Adriano (2020-01-16)
As COO of the North America accident and health business, Krishnan will assist in overseeing the day-to-day operations of the unit. He will also be responsible for developing and implementing growth strategies for the business, while reporting to Chubb executive vice-president of North America accident and health James Walloga.
Insurance Business - Lyle Adriano (2020-01-16)
The condo complex joins a growing list of condo corporations from different parts of Canada all reporting difficulty with securing insurance at reasonable rates, as insurance premiums skyrocketed at the break of the New Year.
Insurance Business - Bethan Moorcraft (2020-01-16)
The reasons for the widespread premium increases are multifaceted. In recent years, the number of claims filed by strata and condominium corporations has increased quite significantly. As multi-unit buildings by nature, when something like a water failure or a kitchen fire occurs within a condo, multiple units are often affected. That means repair costs are often quite substantial, especially with property values and rebuilding costs increasing so significantly.
Reuters - Anirban Sen, Elizabeth Dilts Marshall (2020-01-16)
However, Goldman also spent more on compensation, technology, occupancy costs and professional fees, some of which pertained to new businesses, like the credit card it launched with Apple Inc APPL.O and its transaction banking business.
Bloomberg - Theophilos Argitis and Erik Hertzberg (2020-01-16)
The data suggest the recent housing-market rebound, which had been mostly welcomed after a rough 2018, may now be entering a more perilous phase, particularly after regulators took significant steps to deflate some of the country’s most expensive markets. The development hasn’t gone unnoticed among policy makers. Last week, Bank of Canada Governor Stephen Poloz highlighted the need to keep an eye on the market for any return of speculative activity
FT - Editorial Board (2020-01-16)
There have been many false dawns in the quest to inject more competition into UK banking. Reform has been a tenet of government policy since the financial crisis in 2008.
FT - Caroline Binham (2020-01-16)
Banks have until September this year to stop issuing cash products linked to sterling-denominated Libor as part of a fresh assault on the notorious benchmark by UK watchdogs to meet a 2021 deadline. In a new warning to major banks and insurers published on Thursday, the Bank of England and Financial Conduct Authority said that it was demanding to see “clear evidence of engagement” from firms to make sure they move away from the scandal-tainted rate by next year. The BoE added that it was “keeping the potential use of supervisory tools under review”, a veiled threat to firms that do not comply that senior managers may be in the line of fire and that capital ratios for banks deemed to be taking too much risk could be jacked up.
Economist - Economist (2020-01-16)
FEATHERS WERE ruffled in America in the great chicken-sandwich war of 2019, an online fight involving rival brands and their aficionados. But for economics enthusiasts the fast-food dish of choice will always be a McDonald’s Big Mac, whose price underlies the Big Mac index, The Economist’s light-hearted guide to global exchange rates. According to our latest batch of data, most currencies have strengthened against the dollar in recent months, as trade tensions between America and China have eased and global-growth prospects have improved. Still, the greenback remains strong by historical standards and may yet fall further in 2020.
G&M - Greg Mcarthur (2020-01-15)
A multinational insurance giant has filed a legal action against the former top executive of Bondfield Construction Co. Ltd., seeking to recover $200-million it says it paid out as a result of the company’s collapse.
G&M - Ian McGugan (2020-01-15)
Larry Fink, arguably the world’s most powerful investor, has just delivered his annual letter to chief executives. This year, the chairman of giant money manager BlackRock Inc. used his institutional pulpit to thunder about the mounting dangers of climate change and preach the virtues of sustainable investing.This is a decent, politically palatable solution that has the additional virtue of giving BlackRock even more products to sell. But it falls far short of BlackRock taking a strong stance on climate change itself. As Mr. Fink notes in his letter, “the transition [to a low-carbon economy] will take decades.” As a result, “the portfolios we manage will continue to hold exposures to the hydrocarbon economy as the transition advances.” If that sounds as if BlackRock would still like to have things both ways, that is because it would.
G&M - Nichola Siminather (2020-01-15)
Canadian Imperial Bank of Commerce’s efforts to speed up mortgage growth after a pullback two years ago is expected to face hurdles as bigger rivals maintain their hold on the market and record-high debt levels weigh on borrowers, analysts and investors said.
CBC - CP (2020-01-15)
Encana shareholders have voted overwhelmingly in favour of the oil and gas company moving its headquarters to Denver from Calgary and changing its name to Ovintiv Inc.
FP - Barbara Shecter (2020-01-15)
“Seniors now are taking more debt into retirement and debt is pretty hard to manage on a fixed income,” said Steven Ranson, chief executive of HomeEquity Bank, which originated a record $820 million in reverse mortgages in 2019, up from $767 million a year earlier and $309 million five years ago.
FP - TEGAN HILL, JAKE FUSS (2020-01-15)
Sound fiscal policy is crucial for a healthy economy. A key component of sound policy is the appropriate size and role of government (i.e. government spending and regulations). Higher spending comes at the expense of higher taxes, levied now or in the future through larger deficits and greater debt accumulation, all of which can influence economic growth and social progress. This issue is particularly relevant today, as 2019 marks the highest level of federal government spending in Canadian history.
FP - John Constable (2020-01-15)
Mark Carney is using his final days as governor of the Bank of England to intimidate institutional financial managers by suggesting that investments in conventional energy are high-risk adventures requiring special justification.
Reuters - Hadeel Al Sayegh (2020-01-15)
Goldman Sachs on Tuesday rated the company “neutral” with a price target of 41 riyals while HSBC on Wednesday initiated coverage of Aramco with a “hold” rating and a target of 36.80 riyals.
WSJ - Michael S. Derby (2020-01-15)
WSJ - Daniel Kruger (2020-01-15)
WSJ - Phil Gramm (2020-01-15)
WSJ - Editorial Board (2020-01-15)
WSJ - Michael S. Derby (2020-01-15)
Insurance Business - Terry Gancuangco (2020-01-15)
Those were the words of Lloyd’s of London performance management director Jon Hancock (pictured) when it was announced that he has decided to step down from his post this year. It’s not clear as to when the departure is taking place, but Lloyd’s chief executive John Neal is “delighted that we will have him for a while longer.”
Insurance Business - Alicja Grzadkowska (2020-01-15)
Three years after the Fort McMurray wildfire, the fallout from the event is far from over. Nearly 200 residential claims related to the incident are still awaiting settlement and while this is a small number considering the total 25,498 residential claims that were filed, a local lawyer representing more than 40 of the unresolved cases said that the wildfire event has been a thorn in the side for her clients.
Insurance Business - Alicja Grzadkowska (2020-01-15)
The ongoing battle between South African insurer Old Mutual and its former CEO Peter Moyo seems to have come to a close, after the High Court in Johannesburg ruled that the company doesn’t have to reinstate the fired executive. The decision clears the way for the insurer to now look for a replacement for Moyo and, as a result, the company’s stock has risen.
Insurance Journal - Hubert Roy (2020-01-15)
Desjardins Group’s independent agent network group in Quebec is now defunct. It ceased operations on Dec. 31. This network sold property and casualty insurance.
Insurance Portal - Alain Theriault (2020-01-15)
Rising bond yields and a stock market rally at year-end propelled the solvency level of defined benefits plans to historic heights.
BBC - BBC (2020-01-15)
A total of 24 million adults in Britain gamble, with 10.5 million of those doing so online.
CNBC - Harsh Sinha (2020-01-15)
In the past 45 years, we haven't really had a fundamental change in payment rails that handle a large majority of U.S. domestic payments. The ACH network, which handles electronic payments in the U.S., processes tens of billions of transactions per year including salaries, Social Security payments, mortgage and credit card payments and funds sent between friends' accounts.
Bobsguide - Emma Olsson (2020-01-15)
“Aviva has set up its Digital Garage, so that’s moved quite quick and got quite a lot of profile quite quickly, but Aviva as I understand it are questioning the premise of that. They had a chief digital officer (CDO) prior to that … and when [he] left, they didn’t replace that role,” says Andy Thornley, head of corporate affairs at the British Insurance Brokers’ Association (Biba).
Better Dwelling - Better Dwelling (2020-01-15)
Canadian real estate sales made a big jump from last year, as BC sales returned to normal. There were 26,976 sales in December, down 27.50% from a month before. Even with the decline, sales came in 22.7% higher than the same month last year. The monthly drop is seasonally expected, and the year-over-year increase is… up to interpretation.
G&M - Kelly Cryderman (2020-01-15)
Calgary home prices have dropped by more than 10 per cent in the five years since Alberta’s economic downturn began, and the market is expected to dip down more in 2020 as slower sales and cautious buying become the “new normal” in Alberta’s largest city.
Finextra - Finextra (2020-01-15)
Jack Ma's firm says it expects up to 30,000 participants for the three-day Inclusion Fintech Conference, dwarfing many established industry get-togethers such as Sibos, which drew around 11,500 delegates in London last year.
USA Today - Maxime Lafrance Desrochers (2020-01-15)
The JPMorgan Chase CEO sounded a familiar note on Tuesday on a call with journalists when he casually compared his bank to competitors in Silicon Valley. Answering a question about whether the bank’s stellar performance has driven its stock price as high as it will go, Dimon said one nature of its revenue – much of it being very stable – is similar to a subscription-based model.
FT - Alice Hancock (2020-01-14)
Credit cards will be banned from use in gambling from April, according to rules announced by the UK’s industry regulator on Tuesday in response to calls for greater protection of problem gamblers.
G&M - Bill Curry (2020-01-14)
Finance Minister Bill Morneau says fiscal policy such as increased government spending will need to play a larger role in the event of an economic downturn because central banks can do little with global interest rates near historic lows.
G&M - Andrew Willis (2020-01-14)
Climate-change activist Greta Thunberg has a new ally in Larry Fink, the influential chief executive of BlackRock Inc., one of the world’s largest fund managers.
G&M - DAVID PARKINSON (2020-01-14)
Canadian businesses and consumers remained relatively confident despite the country’s lacklustre economic performance in the final quarter of 2019, a pair of Bank of Canada quarterly surveys indicated Monday.
FP - Barbara Shecter (2020-01-14)
“With Lou’s retirement, the board of directors is concluding the investigation into the historical sexual harassment and sexual misconduct allegations to avoid further distraction to the company,” TMX said in the statement.
Reuters - Imani Moise (2020-01-14)
When Citigroup Inc (C.N) combined businesses that cater to big companies in 2018, management wanted dealmakers, traders and traditional corporate bankers to combine forces and propel Citi toward the top of Wall Street market-share rankings.
Bloomberg - Bloomberg News (2020-01-14)
Authorities are taking an increasingly tough stance on corporate malfeasance, broadening Xi’s seven-year corruption crackdown into the nation’s boardrooms. In a speech Monday, Xi said the state will also punish people responsible for corruption linked to local government debt risk. China is in the midst of a record wave of bond defaults as growth slows, with even state-backed firms now missing bond payments.
WSJ - Leslie Scism, Nicole Friedman (2020-01-14)
AXA Equitable Holdings is dropping AXA from its name in another sign the company is breaking free of insurance conglomerate AXA, its parent since the 1990s.
WSJ - Jennifer Smith (2020-01-14)
Soaring insurance costs are taking a toll on the trucking business, adding financial headwinds for carriers already contending with weakening freight demand.
Canadian Underwriter - Greg Meckbach (2020-01-14)
As a result of rate changes approved Thursday, the premium increase will be about 50% across Sonnet’s book of business in Nova Scotia. Most of what Sonnet asked for got approved.
Canadian Underwriter - David Gambrill (2020-01-14)
With the wind-down of Ontario’s limited Out-of-Country Travellers Program now official, brokers in the province who sell travel insurance have a golden opportunity to make sure their snowbird and other travelling clients are properly covered for trips.
FP - Alex Tanzi (2020-01-14)
The global debt-to-GDP ratio hit an all-time high of 322 per cent in the third quarter of last year, according to a report released Monday by the Institute of International Finance.
G&M - Doug Kreviazuk (2020-01-14)
When I attempt to explain Canada’s payments system, eyes begin to glaze over. Payments infrastructure is not a sexy topic, but we all want assurances that it works well and meets our ever-changing needs. All Canadians and businesses depend on the payments system daily and yet that trusted system is no longer able to meet our evolving expectations.
ThePayPers - Andra Constantinovici (2020-01-14)
The new standard affects all banks with many-to-many relationships in the correspondent banking space and all users of payments and cash management messages (MT categories 1, 2 and 9). While the project does not extend to corporate-to-bank traffic and is not mandatory for market infrastructures operating a closed user group in FIN (MI-CUG) formats, the implications for corporates will nevertheless be significant.
Bloomberg - Ferdinando Giugliano (2020-06-20)
Nevertheless, Lagarde and her colleagues would be wise to read the staff paper closely. Among all the carefully worded language, one can clearly see the contours of a monetary framework that would work for the ECB’s third decade. These include changing the inflation target to 2%, and maintaining all of the instruments — asset purchases, long-term loans to the banking system and negative interest rates — that the central bank used throughout the presidency of Lagarde’s predecessor, Mario Draghi.
The argument for a symmetric inflation target is rooted in the power of expectations. The ECB at the moment aims to reach an inflation rate “close to but below 2%.” This means that, as price pressures start climbing toward 2%, investors and consumers expect the ECB to react aggressively, tightening monetary policy to push inflation back. The authors believe this served the ECB well during its first decade, when it had to establish its reputation and fight off inflationary forces.
However, the objective has been less useful in today’s era of persistently low inflation. It may even be counterproductive. Consumers and investors don’t expect the central bank to act so decisively to counter deflation.
G&M - Robert Mclister (2020-01-28)
The Wuhan coronavirus, which at last count has killed more than 80 people and infected more than 2,800 in China, is about to make fixed mortgage rates cheaper for Canadians.
G&M - Lucia Mutikani (2020-01-28)
Sales of new U.S. single-family homes fell unexpectedly in December, likely held down by a shortage of more affordable homes, but lower mortgage rates supported the overall housing market.
FP - Barbara Shecter (2020-01-28)
Maureen Jensen’s decision to leave the Ontario Securities Commission nearly a year before her term as chairperson expires is reviving debate over the relationship between Canada’s largest capital markets watchdog and the government that oversees it.
Finextra - Finextra (2020-01-28)
The Select Committee of Financial and Regulatory Technology, established in September, is undertaking a review of Australia's innovation sectors, for which it has received 123 submissions.
IE - Rudy Mezzetta (2020-01-28)
On Friday, Prosper Canada submitted a proposal to the Department of Finance Canada asking Ottawa for $20.7 million over five years to fund its Financial Empowerment Champion (FEC) program, which supports community organizations that provide financial education, tax-filing assistance and money management coaching to “financially vulnerable” Canadians.
WSJ - Nick Timiraos (2020-01-27)
As part of their contingency planning for the next recession, the Fed is looking at a stimulus scheme the U.S. last used during and after World War II.
FT - Alistair Gray (2020-01-27)
The scale of the upheaval across much of the US retail sector has been laid bare by figures showing that about one in 10 listed companies has gone bankrupt since 2008 and the value of shopping malls has tumbled 30 per cent in the past three years. About half of department stores in malls are predicted to close and another 500,000 retail jobs cut by 2025 in two industry reports that warn the disruption is set to accelerate. Retail sales overall have been buoyant as shoppers have moved online, but trade credit insurer Euler Hermes said the rise of ecommerce had benefited a small number of companies and hurt profitability across much of the sector. Amazon will this week provide details of its performance over the holiday shopping season, which founder Jeff Bezos has described as “better than ever”. The group is forecast to record a 19 per cent year-on-year rise in quarterly revenues to a record $86bn, although the rollout of one-day shipping is expected to dent profit margins. The earnings report was likely to show that Amazon’s retail business was “accruing most of the benefit” from an industry-wide spike in online orders, said Youssef Squali, analyst at SunTrust. Holiday ecommerce sales jumped nearly 19 per cent, according to Mastercard.
Yahoo Finance - Ben Werschkul (2020-01-27)
"What folks don't really understand is we have several trusts funds in really imminent danger," Goldwein says in an interview with Yahoo Finance’s “On the Move.” "We don't need to save Social Security for our grandkids, we actually need to save it for our grandparents.”
CBC - AP (2020-01-27)
Teenage climate activist Greta Thunberg has brushed off criticism and mockery from the U.S. Treasury chief, saying Friday his comments have "of course no effect" on her and fellow campaigners.
G&M - Sean Silcoff (2020-01-24)
The federal government has enticed Mastercard Inc. to open a technology research and development centre in Vancouver with $49-million in incentives through its Strategic Innovation Fund (SIF).
Bloomberg - Chris Fournier and Erik Hertzberg (2020-01-24)
A more dovish than expected tone from Bank of Canada Governor Stephen Poloz is intensifying focus on incoming economic data, with Friday’s retail sales numbers now in the crosshairs.
Better Dwelling - Kaitlin Last (2020-01-24)
Greater Vancouver detached real estate prices are still falling. REBGV reported the detached benchmark, a.k.a. typical home, price fell to $1,423,500 in December, down 4.0% from the same month last year. In the city, Vancouver East prices fell to $1,390,100, down 3.1% over the same period. Vancouver West fell to $2,588,900, down 6.7% from a year before. These are hefty drops from a year ago, but there are some signs of stabilization.
Finextra - Finextra (2020-01-24)
The UK central bank says it requires "an experienced partner to assist in design, construction and assurance of a modern, fit for purpose cloud environment."
Insurance Portal - IIJ (2020-01-24)
In a statement, the J5 said the action took place as part of a series of investigations in multiple countries into an international financial institution located in Central America, whose products and services are believed to be facilitating money laundering and tax evasion for customers across the globe.
G&M - DAVID PARKINSON (2020-01-23)
In case you had any doubt, Bank of Canada Governor Stephen Poloz stated it in plain English: The door is open for a rate cut. The bigger question now is, what would make the central bank boss walk through it?
G&M - Bill Curry (2020-01-23)
Bank of Canada Governor Stephen Poloz said weaker economic growth in the fourth quarter is spilling into the early part of 2020 and signalled a possible interest rate cut should that weakness continue.
G&M - Nicole Thompson (2020-01-23)
German automotive giant Volkswagen AG was ordered Wednesday to pay a $196.5-million fine to the Canadian government after pleading guilty in an emissions-cheating scandal.
FP - Esteban Duarte (2020-01-23)
Debt due in two decades would help Canada insulate its finances against higher interest rates down the road, but it would also allow asset managers to better pair similarly dated liabilities with government bonds. That’s the view of Randall Malcolm, Toronto-based senior managing director of fixed income at SLC Management, which oversees $227 billion (US$173.8 billion).
Better Dwelling - Kaitlin Last (2020-01-23)
The sales to new listings ratio (SNLR) is one way to measure relative demand for inventory. The ratio is exactly what it sounds like – the ratio of home sales, compared to newly listed homes for sale. Using this measure, we get some idea of how quickly inventory can be replenished. The industry uses this as one of the methods of determining if a market is hot or not.
G&M - Joseph Groia (2020-01-23)
Do most Ontarians know that there is more than $100-million of public money sitting in a bank account at the Ontario Securities Commission (OSC) just waiting to be spent on health care, education or legal aid? Unfortunately, they may not as the OSC is badly behind on its statutory corporate-governance obligations (ironically for our capital markets regulator). It is also not clear what Queen’s Park plans to do about it.
G&M - Luke Baker (2020-01-23)
France and the United States agreed on Thursday how to press ahead with a global rewrite of cross-border tax rules for the digital era, French Finance Minister Bruno Le Maire said.
G&M - Frances Bula (2020-01-22)
The official picture of Vancouver’s office-tower scene is blindingly bright: almost zero vacancy, more companies clamouring for space, and near euphoria over the city’s transformation from a resources-only town to a rapidly growing tech centre that is filling up commercial buildings faster than they can be put up.
FT - Jamie Powell (2020-01-22)
While fears over coronavirus continue to spread in China (and just now, in Taiwan), there’s news of another ailment watchers of the People’s Republic have been concerned about for the past decade: corporate debt.
Bloomberg - Bloomberg (2020-01-22)
In public appearances since October, including a number from Poloz, officials have sought to accentuate the positive, highlighting the nation’s strong jobs market and on-target inflation. At the same time, they’ve been reluctant to put much stock in weaker indicators they say are transitory.
Last month, Deputy Governor Timothy Lane defended the Bank of Canada’s decision to buck the global easing trend, saying the nation’s resilient economy is allowing it to “chart its own course in monetary policy.”
Better Dwelling - Better Dwelling (2020-01-22)
The assets held by Canada’s MFCs have exploded in growth over the past few years. MFCs held $63.66 billion in assets at the end of 2018, up 10.09% from the year before. Since 2007, MFC assets are 7,606% higher. The average annual pace over growth since then has been 83.38% a year. This segment went from a relatively small industry, to a big one.
G&M - James Bradshaw (2020-01-21)
The federal government can make longer-term mortgages more attractive to banks and their customers by loosening a stress test for borrowers if they choose terms of 10 years or longer, according to the C.D. Howe Institute.
Finextra - Finextra (2020-01-21)
The group - comprising The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank and the Swiss National Bank, together with the Bank for International Settlements (BIS) - will assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies.
G&M - Greg Mcarthur (2020-01-21)
Ontario Securities Commission chair and CEO Maureen Jensen is resigning almost a year before her term expires amid tensions with the Progressive Conservative government.
G&M - DAVID PARKINSON (2020-01-20)
The Bank of Canada will be weighing deteriorating economic numbers against an improving global trade climate, as it prepares this week to issue its first interest-rate decision and economic projections of 2020.
G&M - Josh O'Kane (2020-01-20)
Sitting in a sun-splashed office on the edge of the Rhine River that once belonged to West German presidents, Andreas Mundt leans his elbows on a table and nods to a yellow and blue experimental painting by the artist Maiken Bardeschi. It’s called Frei, he says – the German word for free. “I like that a lot,” he says. “Competition law is a lot about freedom. It’s about choice. And this matters a lot to me.”
FP - Geoff Zachodine (2020-01-20)
The country’s chief statistician on Tuesday said the traditional ways of collecting information have become less effective in a more digital world, and that Statistics Canada is prepared to start harnessing more “alternate” sources of data.
CBC - Jason Proctor (2020-01-20)
More than a year after Meng Wanzhou's arrest at Vancouver International Airport, the first formal phase of the Huawei executive's extradition hearing begins Monday in B.C. Supreme Court.
WSJ - Dylan tokar (2020-01-20)
Donville Inniss, a former minister of industry for Barbados, was convicted of laundering bribes he allegedly received from an insurance company that was seeking to renew a public contract.
WSJ - Michael S. Derby (2020-01-20)
As the Federal Reserve added $52.6 billion in short-term liquidity to the financial system Friday to aid money markets, central bank officials debated the program that has been in place since September.
BOC - BOC (2020-01-20)
Results from the winter Business Outlook Survey suggest that business sentiment is broadly positive except in the Prairies, where indicators remain weak. In aggregate, firms’ outlook is supported by expectations of healthy domestic and foreign sales.
OSFI - OSFI (2020-01-20)
OSFI is revising its capital requirements for operational risk applicable to deposit-taking institutions (DTIs) to reflect the final Basel III reforms published by the Basel Committee on Banking Supervision (BCBS) in December 2017Footnote1.
Better Dwelling - Daniel Wong (2020-01-17)
Vancouver’s population growth is still booming, but the rental vacancy rate is climbing. Canada Mortgage and Housing Corporation (CMHC) data shows primary rentals saw vacancies increase in 2019. The rate of vacancy is now at the highest level since 2013, but it has a long way to go to clear that number.
FP - Esteban Duarte (2020-01-17)
The top rated nation issued a US$3 billion of bonds at 6 basis points over the U.S. Treasury yield, according to data compiled by Bloomberg. That’s equivalent to a yield in loonies of around 1.91 per cent and compares with 1.60 per cent for Canada’s five-year bonds denominated in the country’s own currency, according to data compiled by Bloomberg.
G&M - ANA SWANSON AND ALAN RAPPEPORT (2020-01-16)
U.S. President Donald Trump signed an initial trade deal with China on Wednesday, bringing the first chapter of a protracted and economically damaging fight with one of the world’s largest economies to a close.
G&M - Ian Bickis (2020-01-16)
Canadian home sales ended last year with a 22.7-per-cent jump in December compared with a year ago as prices rose as part of a trend that should continue into this year, the Canadian Real Estate Association said.
FP - Terence Corcoran (2020-01-16)
I have some welcome news for Canada’s fossil fuel industry. Bank of England Governor Mark Carney, soon to be the UN envoy on climate finance, will not be joining the fossil fuel divestment movement. “I absolutely disagree with divestment campaigns,” Carney said in an email to an FP Comment column reader in Calgary.
Bloomberg - Theophilos Argitis and Erik Hertzberg (2020-01-16)
The data suggest the recent housing-market rebound, which had been mostly welcomed after a rough 2018, may now be entering a more perilous phase, particularly after regulators took significant steps to deflate some of the country’s most expensive markets. The development hasn’t gone unnoticed among policy makers. Last week, Bank of Canada Governor Stephen Poloz highlighted the need to keep an eye on the market for any return of speculative activity
FP - TEGAN HILL, JAKE FUSS (2020-01-15)
Sound fiscal policy is crucial for a healthy economy. A key component of sound policy is the appropriate size and role of government (i.e. government spending and regulations). Higher spending comes at the expense of higher taxes, levied now or in the future through larger deficits and greater debt accumulation, all of which can influence economic growth and social progress. This issue is particularly relevant today, as 2019 marks the highest level of federal government spending in Canadian history.
FP - John Constable (2020-01-15)
Mark Carney is using his final days as governor of the Bank of England to intimidate institutional financial managers by suggesting that investments in conventional energy are high-risk adventures requiring special justification.
WSJ - Michael S. Derby (2020-01-15)
WSJ - Phil Gramm (2020-01-15)
WSJ - Editorial Board (2020-01-15)
Better Dwelling - Better Dwelling (2020-01-15)
Canadian real estate sales made a big jump from last year, as BC sales returned to normal. There were 26,976 sales in December, down 27.50% from a month before. Even with the decline, sales came in 22.7% higher than the same month last year. The monthly drop is seasonally expected, and the year-over-year increase is… up to interpretation.
G&M - Kelly Cryderman (2020-01-15)
Calgary home prices have dropped by more than 10 per cent in the five years since Alberta’s economic downturn began, and the market is expected to dip down more in 2020 as slower sales and cautious buying become the “new normal” in Alberta’s largest city.
G&M - Bill Curry (2020-01-14)
Finance Minister Bill Morneau says fiscal policy such as increased government spending will need to play a larger role in the event of an economic downturn because central banks can do little with global interest rates near historic lows.
FP - Kevin Carmichael (2020-01-13)
This is important because the case that the Canadian economy is in trouble is based on a set of data that is blind to much of the wealth that’s being generated in the digital realm. For example, Bank of Nova Scotia’s real-time forecast of gross domestic product, which is based on historical patterns of high-frequency data, dipped into negative territory after StatCan reported on Jan. 7 that merchandise exports declined in November.
G&M - CP (2020-01-10)
Bank of Canada governor Stephen Poloz says the central bank is working on plans for a new $5 bill.
CBC - Don Pittis (2020-01-10)
In fact, Poloz maintained that not only has the economy improved on his watch but that it continues to do very well, and that's despite a period of global uncertainty of the type that has led to this week's crash of a Ukrainian passenger aircraft in Iran that killed all 176 people on board.
Bloomberg - Theophilos Argitis (2020-01-10)
“It is understandable that companies are reluctant to make big investments in this setting,” Poloz said in prepared remarks provided to reporters. “On the surface, there has been some improvement on this front lately, although it remains to be seen whether this will lead to a recovery of trade and investment.”
Finextra - Finextra (2020-01-09)
American Express has taken another step towards entering the massive Chinese payments market after the country's central bank accepted the US firm's application to start a bank card clearing business.
FT - Katrina Manson (2020-01-08)
Donald Trump moved away from a military confrontation with Iran, saying Tehran “appeared to be standing down” after attacking two Iraqi bases hosting US troops in retaliation for the killing of its top general.
G&M - DAVID PARKINSON (2020-01-08)
The Bank of Canada is about to introduce an important new addition to Canada’s suite of economic indicators – one that focuses on the Canadian consumer at what could be a key juncture for a huge and critical segment of the economy.
Yahoo Finance - Pedro Febrero (2020-01-07)
In November last year, Coin Rivet reported that the US Financial Stability Oversight Council (FSOC) has called for tighter regulations on stablecoins and digital assets.
FP - Geoff Zochodne (2020-01-07)
The chief executive of Canada’s biggest bank says the federal government need to exercise caution as it considers adjusting the mortgage stress test that has loomed over the housing market and rankled the real-estate industry.
G&M - QASSIM ABDUL-ZAHRA AND ZEINA KARAM (2020-01-03)
The Pentagon said Thursday that the U.S. military has killed General Qassem Soleimani, the head of Iran’s elite Quds Force, at the direction of President Donald Trump.
G&M - Reuters (2020-01-03)
About 400 people were arrested in New Year’s Day protests in Hong Kong after what started as a peaceful pro-democracy march of tens of thousands spiralled into chaotic scenes with police firing tear gas to disperse the crowds.
FP - Geoff Zochodne (2020-01-03)
The new head of the Financial Consumer Agency of Canada is promising the federal regulator will be much more active as it prepares to enforce new consumer-protection measures and tries to keep an evolving banking sector in line.
Reuters - Reuters (2020-01-03)
The second source said that under the plan the central bank would transfer any profits it earned from the sale of Sberbank to the state budget. A third source, a well-placed financial market insider, said the same.
Bloomberg - Elisa Martinuzzi (2020-01-03)
Europe’s reputation on financial crime took another battering in 2019. Several of the region’s biggest lenders, including ABN Amro Bank NV and Swedbank AB, were tarred by allegations that they let criminals move around their cash unhindered, a reminder that Danske Bank A/S’s mammoth money-laundering failings weren’t isolated.
WSJ - Michael S. Derby (2020-01-03)
The power of Federal Reserve governors has withered and needs to be restored to help the central bank be more democratically accountable and make monetary policy effectively, new research says.
WSJ - Michael S. Derby (2020-01-03)
After navigating a quiet end to money-market trading in 2019—greased by a massive wave of central bank liquidity—the Federal Reserve Bank of New York injected a modest amount of money into financial markets.
WSJ - Patricia Kowsmann Giovanni Legorano (2020-01-03)
A cluster of recent bailouts of ailing European lenders shows how governments are getting around post-financial crisis rules meant to make sure investors and shareholders take losses as a condition of receiving taxpayer funds.
CBC - AP (2019-12-23)
Treasury chief Sajid Javid, who announced the appointment Friday, said Bailey was the "clear front-runner" to replace Canadian Mark Carney. By the time Carney leaves on March 15, he will have been at the helm for nearly seven action-packed years.
Reuters - Reuters (2019-12-23)
Riyadh’s criminal court pronounced the death penalty on five individuals, whose names have not yet been released, “for committing and directly participating in the murder of the victim”.
Bloomberg - Rafael Gayol, Harumi Ichikura, Cynthia Li, Chris Middleton, Barbara Sladkowska, and Kyungjin Yoo (2019-12-23)
Reuters - George Hay (2019-12-20)
Saudi Arabia’s Plan A for its crown jewel hasn’t gone to plan. The kingdom’s original goal of selling 5% of energy giant Saudi Aramco in an initial public offering to foreign investors at a $2 trillion valuation got downsized to a 1.5% offload to largely domestic punters at $1.7 trillion. That implies Saudi’s Public Investment Fund might only get about a quarter of the $100 billion it originally envisaged to help diversify the country away from oil
Bloomberg - David Goodman and Jess Shankleman (2019-12-20)
Bloomberg - Mark Gongloff (2019-12-20)
Sweden’s Riksbank, zigging while the rest of the world zags, just raised interest rates, despite anxiety about the economy and sluggish inflation. It’s a bit of desperation central banking, Mohamed El-Erian explains. Rates around the world are at or below rock bottom, without supercharging growth. Meanwhile savers and banks suffer, which may defeat the purpose of low rates, and wild gambling with cheap money fosters zombie companies and boosts the odds of a blow-up.
Ferdinando Giugliano suggests Sweden is panicking about negative rates for nothing. There’s no proof they’re doing real damage yet, he argues. Hiking rates, meanwhile, could definitely hurt the economy, forcing the Riksbank to reverse its decision.
NBC - NBC (2019-12-20)
British lawmakers on Friday finally voted to back a plan to withdraw from the European Union.
G&M - Michael Babad (2019-12-19)
The Bank of Canada will need to watch how fast it raises interest rates given the higher sensitivity among borrowers and how consumer insolvencies have spiked.
G&M - Staff (2019-12-19)
But look a bit closer. Mr. Morneau’s extra helping of red ink comes with a very large asterisk. These expected higher federal deficits are not about a collapse in revenues, or a sudden spike in spending. What’s at work here is an actuarial adjustment, caused by historically low interest rates.
G&M - Campbell Clark (2019-12-19)
The magic trick of Liberal fiscal policy is that deficits and the debt burden are always going down, but never actually get lower.
Bloomberg - Marcus Ashworth (2019-12-19)
Bloomberg - Alberto Gallo (2019-12-19)
CTV - CP (2019-12-19)
Canada has asked the United States not to sign any final trade agreement with China until two Canadians detained in China have been released, Prime Minister Justin Trudeau told a French-language TV network.
G&M - Bill Curry (2019-12-18)
A prolonged slump in oil prices has hurt government finances and increased unemployment in the three energy-producing provinces.
G&M - Michael Babad (2019-12-18)
As The Globe and Mail’s Bill Curry reports, the Liberal budget deficits are under pressure from a hefty adjustment to pension and benefit costs, plus the government’s tax changes.
Finextra - Finextra (2019-12-18)
The Bank of England's Biennial Exploratory Scenario (BES) will cover multiple scenarios that cover climate as well as macro-variables: to test the resilience of the UK’s financial system against the physical and transition risks in three distinct climate scenarios. These range from taking early, late and no additional policy action to meet global climate goals.
Finextra - Finextra (2019-12-18)
"Stablecoin networks at global scale are leading us to revisit questions over what form money can take, who or what can issue it, and how payments can be recorded and settled," she says. "Stablecoins aspire to achieve the functions of traditional money without relying on confidence in an issuer—such as a central bank—to stand behind the 'money'. For some potential stablecoins, a close assessment suggests users may have no rights with respect to the underlying assets or any issuer.
FP - Theophilos Argitis (2019-12-17)
The projections from Finance Minister Bill Morneau show the nation is on track to run a $26.6 billion deficit this year and a $28.1 billion gap in 2020, higher than what was outlined in the spring budget. Morneau said lower interest rates forced the government to revalue what it needs to put aside for future pension obligations â adding about $28 billion in spending over five years.
Reuters - EDWARD HADAS (2019-12-17)
Do you believe in magic? That might be the right first question for whoever succeeds Mark Carney as governor of the Bank of England. The newly mandated government of Boris Johnson is expected to name a successor to the Canadian in the next few days. The list of possible candidates is extensive enough, but with no obvious frontrunner.
WSJ - Mark Maurer (2019-12-17)
The U.S. Securities and Exchange Commission’s planned changes to auditor independence rules would give firms more discretion in assessing conflicts of interest in their relationships with companies they audit, people familiar with the matter say.
Reuters - Reuters (2019-12-16)
The Chinese officials breached security at a base in Virginia this fall, and only stopped driving after fire trucks were used to block their path, the Times said.
Bloomberg - Theophilos Argitis (2019-12-16)
It’s only a coincidence Monday’s meeting took place a few days after Stephen Poloz announced he won’t seek a second term as governor of the Bank of Canada. But Carney either hired or worked with most of the top candidates during the five years he ran the Canadian central bank before taking the reins of U.K. monetary policy in 2013.
BNN Bloomberg - Theophilos Argitis (2019-12-16)
The government is currently on track to run a deficit of $26.6 billion this year and $28.1 billion in 2020, according to a fiscal update released Monday in Ottawa by Finance Minister Bill Morneau. That’s above the $19.8 billion and $19.7 billion deficits projected in the government’s last budget. Deficits in the five years between 2019 and 2023 will exceed projections by about $35 billion.
G&M - Matt Lundy (2019-12-15)
The national debt burden is a closely watched metric of Canadians’ financial health, inspiring no shortage of concern as it steadily increased through much of the decade. In recent years, however, the ratio has levelled off – and in some quarters, actually decreased – after the Bank of Canada raised interest rates and tougher mortgage lending conditions went into effect.
FP - Kevin Carmichael (2019-12-15)
The new paper is based on remarks he made in September at the annual Spruce Meadows Changing Fortunes Roundtable, a discrete gathering of carefully selected members of the global elite in Calgary. Poloz imagines where Canada could end up years from now as digital technology, protectionist politics, and unprecedented levels of debt converge to generate forces that will be unfamiliar to executives, investors and policy makers. The point of the exercise is to suggest that the future should turn out fine, if different, provided we don’t get hung up on what Barack Obama might call “stupid shit” along the way.
OSFI - OSFI - Video (2019-12-13)
Watch Superintendent Jeremy Rudin's video message for OSFI's annual report.
G&M - PAUL WALDIE (2019-12-13)
British Prime Minister Boris Johnson has won a stunning electoral victory, defying expectations and clearing the way for Britain to leave the European Union next month.
CBC - AP (2019-12-13)
The bank's new president said at her first news conference Thursday that she will lead a top to bottom review of how the institution sets monetary policy, looking at everything from how it defines success in fighting inflation to whether it can play a role financing the fight against global warming.
Bloomberg - Theophilos Argitis (2019-12-13)
“Perhaps the recent tendency for inflation to run below target in many countries has fostered a degree of complacency,” Poloz said. “The risk of a surprise outbreak in global inflation is low, but it seems to be that the combination of elevated household and government indebtedness and populist politics holds inflationary potential for some countries.”
Bloomberg - Ferdinando Giugliano (2019-12-13)
As Lagarde has acknowledged, there will be a tension between communicating rigorously and talking to a broader public. She asked reporters not to over-interpret her messages when she talks to people who lack technical expertise. But will this really be possible? She’s the president of the ECB, after all, and investors will be listening for hints of the central bank’s next moves every time she speaks. There’s a risk that she could create confusion, or even that market players could stop paying so much attention to her.
Reuters - JOHN REVILL (2019-12-12)
Swiss lawmakers are preparing a campaign that would make targeting climate change one of the policy objectives of the Swiss National Bank, alongside the traditional monetary targets of ensuring price stability and fostering economic growth.
FT - Don Weinland (2019-12-12)
A flurry of Chinese banks are being forced to buy back shares to stabilise their stock prices following a series of bank bailouts and mounting pressure on the country’s financial system.
CBC - CBC (2019-12-12)
CBC News has learned he told his caucus the news today and will make an announcement in the House of Commons.
G&M - Robert Fife (2019-12-11)
Parliament will set up a special committee to review all aspects of Canada’s strained relationship with China amid a prolonged diplomatic and trade dispute with its second-largest trading partner.
G&M - Eric Reguly (2019-12-11)
Democratic presidential contender Michael Bloomberg has handed his role as United Nations climate envoy to Mark Carney, thrusting the Canadian governor of the Bank of England to the forefront of the global effort to prepare companies and lenders for potentially catastrophic climate change.
G&M - James Bradshaw (2019-12-11)
Since last December, the Office of the Superintendent of Financial Institutions has gradually increased its “domestic stability buffer,” or DSB, citing “elevated” risks to the banking sector from high household and corporate indebtedness, as well as imbalances in housing markets. The buffer is a capital requirement that OSFI imposes over and above other elements used to set minimum capital ratios.
Reuters - Howad Schneider (2019-12-11)
The U.S. Federal Reserve holds its last policy meeting of 2019 on Wednesday, having completed a year-long U-turn that saw it abandon a tightening cycle and lower borrowing costs three times in response to the global trade war.
NY Times - NY Times (2019-12-11)
Remembering Paul Volcker, the Fed chair “willing to be unpopular”
G&M - DAVID PARKINSON (2019-12-11)
To say the U.S. Federal Reserve has abruptly shifted its rate policy into neutral would be an understatement. It has put rates in park, shut off the engine and chucked the keys off the nearest bridge.
Bloomberg - Brian Chappatta (2019-12-11)
OSFI - OSFI (2019-12-11)
This year’s report provides more detail on each fee, such as the type and rate of adjustment, the service standard and the performance result. This information provides additional context on each fee, in the spirit of open and transparent fee management.
CBC - Reuters (2019-12-10)
Volcker, who Zima said had been suffering from prostate cancer, was the first to bring celebrity status to the job of U.S. central banker, serving as chairman of the Fed from 1979 to 1987. As with the man who succeeded him, Alan Greenspan, Volcker could soothe or excite financial markets with just a vague murmur.
FP - Esteban Duarte (2019-12-10)
The buy-back strategy, including terms and amounts, is still under analysis, according to Jerrica Goodwin, an Edmonton-based spokeswoman at Alberta’s finance ministry said. The plan, which may start as soon as the next fiscal year beginning in April, won’t reduce overall debt outstanding but could allow Alberta to spread out maturities over the longer term, she said.
FP - Huw Jones (2019-12-10)
While still only “nascent” in most countries, Big Tech in countries like China has brought financial services within reach of underserved communities, the FSB, which is chaired by Federal Reserve Governor Randal Quarles, said in the report.
Reuters - Joseph Sipalan, Krishna N. Das, Matthew Tostevin (2019-12-10)
Malaysian Prime Minister Mahathir Mohamad is hopeful of reaching an out-of-court settlement with Goldman Sachs (GS.N) over the 1MDB scandal soon, but that compensation of “one point something billion” dollars offered by the bank was too small.
G&M - Christopher Neal (2019-12-09)
Mark Carney, recently tapped by United Nations Secretary-General Antonio Guterres to be UN Special Envoy for Climate Change, is no stranger to big challenges.
CBC - CP (2019-12-09)
The Bank of Canada says Stephen Poloz won't seek a second term as governor when his seven years in the job expire next year.
FP - Kevin Carmichael (2019-12-09)
Now that Stephen Poloz has announced he will step down as Bank of Canada Governor after his seven-year term ends in June 2020, attention turns to the possible candidates who might replace him. Here are six possibilities.
CBC - CP (2019-12-06)
The Canadian economy remains resilient despite the global uncertainty caused by the trade war between the United States and China, a senior Bank of Canada official said Thursday.
Reuters - David Lawder (2019-12-06)
The World Bank on Thursday adopted a plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025, despite the objections of U.S. Treasury Secretary Steven Mnuchin.
NY Times - Adam Nossiter (2019-12-06)
The streets of French cities were filled with anti-government demonstrators, tear gas and police officers on Thursday as Emmanuel Macron again faced what has become an emblem of his presidency: social unrest. This time it was a general strike over his plans to overhaul the country’s pension system.
WSJ - Kim Mackrael (2019-12-06)
WSJ - Michael S. Derby (2019-12-06)
Finextra - Finextra (2019-12-06)
In a statement, they acknowledge some of the potential benefits of stablecoins but also warn about risks, including on consumer protection, privacy, taxation, cyber security, money laundering, terrorism financing, market integrity, governance and legal certainty.
G&M - Mark Mackinnon (2019-12-05)
“He’s two-faced,” Mr. Trump said of Mr. Trudeau when asked if he had seen the video, which was recorded by an ABC News cameraman on Tuesday evening during a reception for NATO leaders at Buckingham Palace.
Bloomberg - Daniel Moss (2019-12-05)
Blame inflation. The RBI cited concerns about rising prices, given that headline inflation breached its 4% medium-term target in October. Food prices have skyrocketed as a result of heavy rainfall, with the cost of onions up 45% in September and a further 20% the following month, according to the central bank’s statement.
With India’s economy crumbling all around him, it strikes me as a bit short-sighted that RBI Governor Shaktikanta Das is getting caught up in vegetables. Gross domestic product increased just 4.5% in the third quarter, government figures showed last week. Little more than a year ago, India was notching an expansion of more than 8%. If demand is sliding then price increases ought to subside. There's little inflation in a graveyard.
CBC - Sarah Rieger (2019-12-04)
Alberta's credit rating has been downgraded by Moody's, with the agency citing the volatility in the province's dependence on oil and continued fiscal pressures.
Bloomberg - Theophilos Argitis (2019-12-04)
Poloz to maintain wait-and-see approach.
G&M - LEIKA KIHARA AND TETSUSHI KAJIMOTO (2019-12-03)
Bank of Japan Governor Haruhiko Kuroda said on Friday he saw no need to expand monetary stimulus now, underscoring the central bank’s preference to save its dwindling ammunition in case the economy takes a bigger hit from heightening overseas risks.
G&M - Isla Binnie (2019-12-02)
Bank of England Governor Mark Carney will lead a push by the United Nations to make the financial sector take full account of the risks posed by climate change, UN Secretary-General Antonio Guterres said on Sunday.
G&M - Michael Babad (2019-12-02)
About 40 central banks worldwide have eased up this year, but the Bank of Canada isn’t one of them and isn’t expected to join them this week.
FP - Paula Sambo and Sandrine Rastello (2019-12-02)
“The conflict between China and the United States is not going away anytime soon,” the 66-year-old told reporters after a speech in Montreal. “I think it is going to change some global trading patterns, it is potentially going to change some important things around the evolution of technology, 5G.”
OSFI - OSFI (2019-11-29)
InfoPensions includes announcements and reminders on matters relevant to federally regulated private pension plans and pooled registered pension plans. It includes descriptions of how the Office of the Superintendent of Financial Institutions (OSFI) applies various provisions of the Pension Benefits Standards Act, 1985, Pooled Registered Pension Plans Act, their regulations, directives and OSFI guidance. Plan administrators should obtain appropriate professional advice on how the legislation and guidelines affect their particular pension plan.
G&M - DAVID PARKINSON (2019-11-28)
Mr. Poloz’s seven-year term as Bank of Canada governor expires at the beginning of next June. While the rules do allow a sitting governor to apply to return to the job for a second term, one-and-done has become the norm. The Bank of Canada hasn’t had anyone re-enlist since Gerald Bouey 40 years ago.
NY Times - Jeanna Smialek (2019-11-26)
Federal Reserve officials have increasingly acknowledged that the labor market might have more room to run, and Chair Jerome H. Powell made the point in perhaps the plainest way yet during a Monday evening speech.
Reuters - Marwa Rashad (2019-11-25)
“We are monitoring all indicators on a daily basis and if there is any squeeze on liquidity, definitely we’ll be injecting liquidity but so far ... everything is assuring,” he said.
WSJ - Michael S. Derby (2019-11-25)
The Federal Reserve Bank of New York added $80.6 billion in temporary liquidity to the financial system on Friday. It also bought $7.50 billion in Treasury bills.
G&M - Cassandra Garrison (2019-11-24)
Argentina is once again buckling under the weight of its sovereign debts, which total around US$100-billion, and Mr. Fernandez needs to urgently agree a deal with creditors to ease the burden and give his government space to try to revive the economy.
G&M - PIERRE L. SIKLOS AND MICHAEL D. BORDO (2019-11-24)
In the coming months, the Bank of Canada‘s mandate to target inflation is coming up for review. Some have suggested that the mandate should be expanded to include responsibility for financial stability, defined as heading off the imbalances that could trigger a severe financial crisis, such as what the world experienced just more than a decade ago. In a recent C.D. Howe Institute report, we argue, marshalling historical and empirical evidence, that granting the Bank an explicit mandate to target financial stability is not a good idea, and that doing so would create a conflict with its tried and true mandate for price stability.
G&M - DAVID PARKINSON (2019-11-22)
A report earlier this year from the International Monetary Fund estimated that removing interprovincial trade barriers would add nearly 4 per cent to Canada’s gross domestic product – “a much larger gain than expected from recently signed international trade agreements,” the IMF said. The estimated economic gains amount to about $80-billion annually, or more than $2,000 per Canadian.
CBC - CP (2019-11-22)
The report by Miguel Molico, senior research director at the bank's Financial Stability Department, notes that carbon-intensive sectors like oil and gas could be negatively affected by significant changes in pricing in a transition away from a carbon economy.
OSFI - OSFI (2019-11-20)
During the 2018-2019 fiscal year, OSFI commissioned Sage Research Corporation, an independent research firm, to conduct a confidential consultation with deposit-taking institution Chief Executive Officers, Chief Financial Officers and other senior executives, to help OSFI monitor its effectiveness in discharging key elements of its mandate. OSFI has commissioned consultations with senior members of the financial community to obtain their assessment of OSFI's effectiveness as a regulator and supervisor since 1998.
OSFI - OSFI (2019-11-20)
The total number of active RPP members increased steadily from 5.9 million in 2007 to 6.3 million in 2017, an increase of 7% over the last 10 years.
G&M - DAVID PARKINSON (2019-11-20)
After a first term in the Finance Minister’s office that featured a few strong steps, some stumbles and too much foot-dragging, Bill Morneau has plenty of unfinished business to address as he returns for another term. If he wants to make the most of his second chance, the top of that to-do list should be tackling Canada’s badly eroded competitiveness.
CBC - Peter Zimonjic (2019-11-20)
The full list of Prime Minister Justin Trudeau's new cabinet sworn today at Rideau Hall in Ottawa:
G&M - Howard Schneider (2019-11-19)
U.S. President Donald Trump and Federal Reserve Chair Jerome Powell met at the White House on Monday in their second meeting since Powell started the job in February 2017, and soon became the target of criticism from the president who appointed him.
G&M - Mohamed A. El-Erain (2019-11-19)
This year, I didn’t attend the October annual meetings of the International Monetary Fund and the World Bank in Washington, DC. Instead, I paid close attention to reports of the gathering and talked to people who were there whom I respect. What emerged is depressing for the wellbeing of the global economy. In particular, the prospect of continued weakness and fragmentation pressures will compound the challenges to the credibility and effectiveness of multilateral institutions.
G&M - Mohamed A. El-Erain (2019-11-19)
Even more worryingly, the Fund’s policy recommendations – especially those pertaining to the advanced economies – have little impact (to put it politely). One need only look at the widening gulf between what IMF officials have said and the bland, repetitive language of the IMFC communiques. The policy insights fall on more deaf ears when finance ministers and central bankers are back in their national capitals, underscoring the current ineffectiveness of what once was a key opportunity for improving win-win policies.
G&M - David Lawder (2019-11-19)
IMF Managing Director Kristalina Georgieva announced the decision at the Fund’s and World Bank’s annual meetings, saying that the initiative will provide confidence that the IMF can adequately support member countries as they deal with slowing global growth.
FP - Barbara Shecter (2019-11-19)
Businesses regulated in Ontario’s capital markets will save close to $8 million a year following implementation of a swath of new “burden reduction” reforms to be unveiled Tuesday by the Ontario Securities Commission.
G&M - TEGAN HILL, JAKE FUSS AND JASON CLEMENS (2019-11-18)
During last month’s federal election campaign, many in the media – and in the Liberal Party – lauded the strength of Canada’s economy.
WSJ - Andrew Ackerman (2019-11-18)
The Federal Reserve identified elevated asset prices and historically high debt owed by U.S. businesses as top vulnerabilities facing the U.S. financial system, according to the latest central bank financial-stability report.
G&M - Alexandra Posadzki (2019-11-15)
The Bank of Canada is proposing a new liquidity facility that would provide loans to financial institutions that are suffering temporary shocks as a result of incidents such as cyberattacks, system failures and natural disasters.
G&M - Patrick Brethour (2019-11-15)
Alberta Premier Jason Kenney contends that withdrawing from the Canada Pension Plan would return billions of dollars a year to the province, but experts question how large the savings would be from going it alone.
G&M - Reuters (2019-11-14)
The U.S. government recorded a $134 billion budget deficit in October, the first month of the new fiscal year, the Treasury Department said on Wednesday.
Bloomberg - Niclas Rolander (2019-11-14)
G&M - Video (2019-11-14)
Federal Reserve Chairman Jerome Powell is asking Congress to tackle the growing budget deficit.
BNN - Erik Hertzberg (2019-11-14)
Justin Trudeau is starting his second term in worse fiscal shape than expected, meaning Canada’s finances will likely be pushed further into the red.
Bloomberg - Tim Duy (2019-11-12)
WSJ - Michael S. Derby (2019-11-12)
The New York Fed added $111.909 billion to financial markets on Tuesday.
WSJ - Michael S. Derby (2019-11-12)
Eric Rosengren warned on Monday many top central banks have a limited tool kit to deal with the next downturn, and added efforts to roll back regulations on banks may be exacerbating risks to the financial sector.
FP - Andy Blatchford (2019-11-07)
Alberta Premier Jason Kenney says there’s a “compelling case” to be made for his province to exit the half-century-old Canada Pension Plan — an idea sure to face increasing scrutiny over the coming months.
FP - Geoff Zachodine (2019-11-06)
The tax cut and other measures were part of a mini-budget that showed the Ontario government’s projected deficit for the current 2019-20 fiscal year is now $9 billion, down from the $10.3 billion estimated in the actual budget earlier this year.
NY Times - Jeanna Smialek (2019-11-06)
For decades, the central bank has raised rates to guard against coming price increases. Now, it seems to be raising that hurdle.
NY Times - Jim Tankersley (2019-11-06)
The Treasury Department says the Obama-era regulations are unnecessary after the 2017 tax overhaul.
FP - FP (2019-11-04)
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
Bloomberg - Lionel Laurent (2019-11-04)
States dabbling in blockchain technology, or planning to issue their own digital currencies, isn’t flattery – it’s competition. Some 70% of central banks surveyed by the Bank for International Settlements are examining their options in this area. In places like Sweden, rapidly going cashless, electronic “fiat” money is seen as a path to easier payments. If that works out, stateless crypto coins would lose one of their selling points.
Bloomberg - Sandy Hendry, Natasha Doff (2019-11-04)
Russian President Vladimir Putin is acting on a pledge to shrink the role of the U.S. dollar in international trade. Jean-Claude Juncker, outgoing president of the European Commission, says it’s “absurd” that Europe uses the greenback for 80% of energy imports. Chinese President Xi Jinping has railed against economic “hegemonism.” Can the mighty dollar retain its global dominance when attacked from so many sides? Don’t count it out yet.
WSJ - James Mackintosh (2019-11-04)
When one part of the economy stumbles and another does rather well, the perfect policy would be support the laggard while holding back the rest to keep growth balanced. But the Federal Reserve doesn’t have that luxury.
WSJ - Michael S. Derby (2019-11-04)
The Federal Reserve Bank of New York added $104.583 billion in temporary liquidity to financial markets Friday, when it also added permanent reserves to expand its balance sheet.
The Fedâs intervention came in two parts. One was through repurchase
CBC - Don Pittis (2019-10-31)
Like a spooky planetary alignment, the Bank of Canada and the U.S. Federal Reserve both unmasked their monetary policy on the day before Halloween. But they had eerily discordant messages.
G&M - Geoffrey York (2019-10-30)
South Africa’s Finance Minister has revealed that the country’s debt is soaring much faster than expected, triggering a plunge in its currency and sparking fears of another downgrade in its credit rating.
G&M - Reuters (2019-10-30)
The Canadian dollar weakened to a near two-week low against the greenback on Wednesday as expectations rose that the Bank of Canada would cut interest rates after the central bank expressed greater concern about global trade uncertainty.
CBC - CBC (2019-10-30)
In his opening statement during a meeting with members of the media, Poloz said the "worsening global situation" is the primary issue for the Canadian economy.
CBC - Don Pittis (2019-10-29)
It is easy to forget that when oil prices crashed just five years ago, the Canadian economy lost what at the time was its single major economic engine. In the years before that, Canada's old industrial economy outside the oil and gas sector had been smashed, only slowly recovering from a loonie rising on the back of petroleum exports to an oil-hungry United States.
WSJ - Nick Timiraos (2019-10-29)
Markets largely expect another quarter-percentage-point rate cut. It is the Fed’s next step that is uncertain, and investors will closely watch for clues.
G&M - PAUL WALDIE (2019-10-29)
Britain is heading for an election on Dec. 12 and it will now be up to voters to try and resolve the Brexit conundrum that has bedevilled the country for more than three years.
G&M - Reuters (2019-10-29)
President Donald Trump launched a fresh attack on the U.S. Federal Reserve on Tuesday as policymakers opened a two-day meeting that was expected to end with a decision to lower interest rates.
G&M - AP (2019-10-29)
Economists and investors who are trying to get a fix on what the Federal Reserve may do in the months ahead have zeroed in on a single phrase in the statement it has issued after its most recent policy meetings.
G&M - DAVID PARKINSON (2019-10-28)
The Bank of Canada is expected to hold interest rates steady one more time this week – and in doing so, separate itself further from the pack of central banks.
Reuters - Reuters Video (2019-10-25)
Outgoing European Central Bank chief Mario Draghi took his last policy meeting on Thursday. Critics says his eight-year tenure closes in exactly the same place he started: trying to prop up a perpetually ailing currency bloc. David Pollard reports.
CNBC - Jeff Cox (2019-10-24)
Starting Thursday, the repo operation offerings will escalate to $120 billion from the current $75 billion as the central bank continues to calibrate the right amount of funding needed to keep the markets operating properly and to hold the overnight funds rate within its target range.
WSJ - Michael S. Derby (2019-10-22)
The Federal Reserve Bank of New York injected $58.15 billion in overnight liquidity into financial markets.
Reuters - Fergal Smith (2019-10-22)
“The resulting higher spending and larger deficits may give a temporary lift to growth next year, but will also likely keep the Bank of Canada on hold for longer,” said Doug Porter, chief economist at BMO Capital Markets.
G&M - Michael Babad (2019-10-21)
Mark McCormick believes the currency market is “underpricing” the possibility of a minority Liberal government propped up by the New Democratic Party.
FP - Robert Hutton and Kitty Donaldson (2019-10-21)
On Friday, French President Emmanuel Macron said one shouldn’t be granted. But EU officials say that despite Macron, who made similar noises before approving a Brexit delay in April, it’s unlikely that he or any other leader would refuse another one, particularly if the U.K. was headed for a general election.
Reuters - Kylie MacLellan, Paul Sandle (2019-10-21)
The British government insisted on Sunday the country will leave the European Union on Oct. 31 despite a letter that Prime Minister Boris Johnson was forced by parliament to send to the bloc requesting a Brexit delay.
WSJ - Kate O'Keeffe (2019-10-21)
Christine Lagarde, who is set to take over as president of the European Central Bank, said in an interview that the U.S. risks diminishing its role as a global leader and warned of dire consequences of its trade war with China.
G&M - David Berman (2019-10-18)
Can voters affect stock prices in Canada? Investors are about to find out.
CBC - Jonathon Gatehouse (2019-10-17)
"These barriers prevent the free flow of people, goods and services across provincial borders. They make it more expensive to run a business. They hurt consumers with higher prices and less competition and they discourage and frustrate big dreaming innovators who want to change the world," Scheer said during a campaign stop in Quebec City. "It should not be easier to trade with other countries than between Canadian provinces. We are one free country. We should have one free market."
Reuters - Reuters (2019-10-17)
Britain clinched a Brexit deal with the European Union on Thursday, European Commission President Jean-Claude Juncker said, just a few hours before the start of a summit of the bloc’s leaders in Brussels.
Bloomberg - Jess Shankleman (2019-10-15)
More time needed as deal hanging in the balance as of Tuesday.
WSJ - James Mackintosh (2019-10-15)
The Federal Reserve has been clear that its latest Treasury-buying plan shouldn’t be construed as QE, or quantitative easing. They may have a point.
FP - Zane Schwartz (2019-10-15)
The Bank of Canada is considering launching a digital currency that would help it combat the “direct threat” of cryptocurrencies and collect more information on how people spend their money, The Logic has learned.
FT - Hudson Lockett in Hong Kong and Eva Szalay (2019-10-15)
A decade ago, China launched a high-profile challenge to the dominance of the US dollar, projecting a greater role for the renminbi in the global financial system.
FP - Philip Cross (2019-10-11)
Despite a return to deficit spending intended to boost the economy, Canada’s annual real GDP growth over the past four years has remained stuck in the range of 1.0 to 2.0 per cent, where it has been mired for most of the past decade. In a recent paper for the Macdonald-Laurier Institute, I summarized how the persistence of mediocre growth for over a decade is a sobering reminder of the failure of extraordinary monetary and fiscal stimulus to lift long-term growth rates.
Reuters - Matt Scuffham (2019-10-11)
Deutsche Bank says it does not have copies of U.S. President Donald Trump’s tax returns, a U.S. appeals court said on Thursday, closing one possible avenue for the Democratic-led U.S. House of Representatives to obtain the returns.
NY Times - Jeanna Smialek (2019-10-11)
Lael Brainard, a Fed Board governor, said that while she supported some of the adjustments approved on Thursday, the overall package of changes went too far.
Bloomberg - Jim Bianco (2019-10-09)
WSJ - Nick Timiraos (2019-10-09)
The Federal Reserve will provide new clues about its thinking on where to set interest rates when it releases the minutes of its Sept. 17-18 meeting on Wednesday at 2 p.m. EDT.
FT - Joe Rennison (2019-10-09)
Ten minutes after Federal Reserve chair Jay Powell insisted that the central bank restarting its Treasury purchases was “in no way” the same as the post-financial crisis policy of quantitative easing, one Wall St analyst sent a note to his clients saying that the new strategy “sure sounds like QE”.
G&M - Michael Babad (2019-10-08)
“The Liberals would loosen fiscal policy by more than the Conservatives if they won October’s election, but neither party’s plans would seriously transform the economic outlook,” said Stephen Brown, senior Canada economist at Capital Economics.
Bloomberg - Andreas Kluth (2019-10-08)
WSJ - Avantika Chilkoti, Paul J. Davies (2019-10-03)
The euro has drifted toward its lowest levels against the dollar in years as Europe takes the brunt of a global growth slowdown. Investors are now questioning: How low can it go?
Bloomberg - Brian Chappatta (2019-10-02)
Heading into October, it was clear Federal Reserve officials would face a difficult decision at their meeting at the end of the month. Just one day into October, the challenges have already become even more intense.
NY Times - Amie Tsang (2019-09-30)
FT - Martin Arnold (2019-09-26)
Tensions between the European Central Bank and Germany have again exploded into public view after the resignation of Sabine Lautenschläger, who represented the eurozone’s biggest economy on the central bank’s executive board.
G&M - Video (2019-09-25)
Premier Jason Kenney responds to a Federal Court judge issuing an injunction against Alberta's legislation giving it the power to reduce oil shipments to B.C.
G&M - ROD NICKEL AND NIA WILLIAMS (2019-09-23)
Prime Minister Justin Trudeau has cast himself as a champion in the fight against climate change while pushing to expand an oil pipeline to help struggling producers, a contradiction that may hurt his re-election bid next month.
FP - Kevin Carmichael (2019-09-23)
The Washington Post published an interesting bit of trivia this week. As of Sept. 18, Donald Trump had tweeted or retweeted nasty things about the Federal Reserve and its chairman, Jerome Powell, an astonishing 43 times since the end of July.
G&M - DAVID PARKINSON (2019-09-20)
The Bank of Canada has appointed long-time insider Toni Gravelle as one of its deputy governors, filling the vacancy created over the summer by the retirement of Lynn Patterson.
CBC - Don Pittis (2019-09-20)
A weakening global economy and continued trade fears — and emphatically, he said, not angry words from U.S. President Donald Trump — convinced U.S. Federal Reserve chair Jerome Powell to cut interest rates on Wednesday for the second time this summer.
G&M - DAVID PARKINSON (2019-09-19)
If you’re a suburban homeowner lying awake at night stressing about how you’ll ever get out from under your mountain of mortgage-infused debt, congratulations. You’re the most important voter in next month’s federal election.
CBC - Don Pittis (2019-09-19)
Despite the fact that the quarter point cut was widely expected, the move had an immediate effect on the Canadian dollar which fell promptly after Powell's announcement.
CBC - AP (2019-09-18)
Economists do not see the action as a signal about where the Fed plans to move its key policy rate, known as the federal funds rate, but rather as a technical exercise to keep the rate in the range set by the central bank.
G&M - Ian McGugan (2019-09-18)
Pity Jerome Powell. The chair of the United States Federal Reserve has just been called a bonehead by his boss. Now he faces the unenviable task of explaining the Fed’s latest interest-rate decision to increasingly baffled investors, while dealing with the aftermath of an unexpected squeeze in short-term funding markets.
Bloomberg - Ferdinando Giugliano (2019-09-17)
G&M - MARTIN EICHENBAUM AND CHARLES MOSKOS (2019-09-16)
Canadian monetary policy is the legal responsibility of exactly one person, the Governor of the Bank of Canada. This single decision-maker structure is unique among the central banks of advanced economies. The last review of the bank’s governance structure was conducted by a parliamentary subcommittee in 1992 (known as the Manley Committee). It is time to assess the structure governing monetary policy decisions at the Bank of Canada once again.
CBC - Don Pittis (2019-09-16)
With last week's declaration that the very smart people at the Federal Reserve are "boneheads," U.S. President Donald Trump has become perhaps the world's highest profile prognosticator of a North American crisis.
WSJ - David Harrison and Paul Hannon (2019-09-13)
The European Central Bank’s decision Thursday to lower its key interest rate further below zero while relaunching an asset-purchase program means monetary policy in Europe is now even more stimulative than in the U.S.
WSJ - Jon Sindreu (2019-09-13)
ECB President Mario Draghi’s emphasis on fiscal policy is an admission that further monetary stimulus can do little for the economy.
CBC - Reuters (2019-09-13)
As Draghi's eight-year mandate nears its close, the ECB cut rates deeper into negative territory and promised bond purchases with no end-date to push borrowing costs even lower, hoping to kick-start activity nearly a decade after the bloc's debt crisis.
G&M - Robert Fife (2019-09-11)
Former justice minister and attorney-general Jody Wilson-Raybould met with RCMP investigators this week to discuss political interference in the criminal prosecution of SNC-Lavalin Group Inc., and is calling on the Trudeau government to waive cabinet confidentiality for her and all other witnesses to allow a thorough probe into potential obstruction of justice.
G&M - Howard Schneider (2019-09-11)
“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term,” Trump tweeted. “We have the great currency, power, and balance sheet... The USA should always be paying the … lowest rate. No Inflation!”
G&M - KONRAD YAKABUSKI (2019-09-11)
Jean Boivin wants to be clear about one thing: Neither he, nor his colleagues at the BlackRock Investment Institute, are predicting a global recession any time soon. Which seems incongruous, considering that he has been telling central bankers they need to get ready now for the next big one.
CBC - Catherine Tunney (2019-09-11)
Canadians "have an important choice to make" about their country's future path, Liberal Leader Justin Trudeau said today as he triggered the official launch of the federal election campaign.
CBC - CP (2019-09-11)
But the most important is the participation to the national debate," Bernier said on Wednesday, the first day of the campaign ahead of the Oct. 21 vote.
G&M - MICHELLE ZILIO, JANICE DICKSON KRISTY KIRKUP MARIEKE WALSH (2019-09-10)
Prime Minister Justin Trudeau is expected to visit Governor-General Julie Payette on Wednesday morning to kick off the election campaign, Liberal sources said.
FP - Diane Francis (2019-09-10)
The budget predicts deficits of $19.8 billion in 2019-20; $19.7 billion in 2020-21; and $14.8 billion in 2021-22. Not only have they broken promises to adhere to fiscally responsible spending, but they have no timetable to reduce deficits for the near future should they be re-elected.
Bloomberg - Charlotte Ryan and Matthew Boesler (2019-09-10)
G&M - BRENNA HUGHES NEGHAIWI AND JOHN REVILL (2019-09-09)
The U.S. Federal Reserve will continue to act “as appropriate” to sustain the economic expansion in the world’s biggest economy, Fed Chair Jerome Powell said on Friday in Zurich, sticking to a phrase that financial markets have taken to signal further rate reductions, but declining to be more specific.
Bloomberg - Marcus Ashworth (2019-09-09)
Bloomberg - Mohamed A. El-Erain (2019-09-09)
The European Central Bank and the Federal Reserve will be under even greater scrutiny over the next 10 days as their policy-making committees discuss recent economic developments, update their assessment of prospects and adopt whatever actions and guidance they deem necessary. The outcome will most likely satisfy those looking for the world’s two most influential central banks to further loosen monetary policy.
G&M - FARAI MUTSAKA AND CHRISTOPHER TORCHIA (2019-09-06)
Robert Mugabe, the former leader of Zimbabwe forced to resign in 2017 after a 37-year rule whose early promise was eroded by economic turmoil, disputed elections and human rights violations, has died. He was 95.
G&M - Ann Saphir (2019-09-05)
Trade policy uncertainty driven by the Trump administration’s escalating dispute with China means hundreds of billions of dollars in lost U.S. output and as much as US$850-billion lost globally through early next year, research published this week by the U.S. Federal Reserve suggests.
FP - Kevin Carmichael (2019-09-05)
When the central bank left interest rates unchanged on Wednesday, it emphasized that inflation was right at its rough target of two per cent. And the first speech by one of the institution’s leaders since early July was based on, you guessed it, the Bank of Canada’s latest thinking about inflation.
CBC - CP (2019-09-04)
Governor Stephen Poloz is widely expected to hold the overnight interest rate at 1.75 per cent as the bank delivers its first policy announcement — or public commentary of any kind — since early July.
Reuters - Howard Schneider, Ann Saphir (2019-09-04)
The dueling views - from St. Louis Fed President James Bullard, who called for a half-a-percentage-point rate cut, and Boston Fed President Eric Rosengren, who saw no immediate need for any move - show the tight spot Fed Chair Jerome Powell finds himself in as the Fed’s next policy-setting meeting approaches.
Bloomberg - Natalie Wong and Paula Sambo (2019-09-04)
Canadian Prime Minister Justin Trudeau wants to make housing more affordable for first-time buyers. His efforts may be of little help to people in the country’s priciest cities.
WSJ - Natasha Kha, Neil Western (2019-09-04)
In a major concession to protesters, Hong Kong Chief Executive Carrie Lam plans to withdraw the China extradition bill that sparked months of at times violent street demonstrations.
WSJ - Michael S. Derby (2019-09-04)
The Federal Reserve’s balance sheet, which has recently stopped shrinking, may once again start growing later this year, the Federal Reserve Bank of New York said Tuesday.
G&M - Nathan Vanderklippe (2019-09-04)
Canada has selected Dominic Barton as its next ambassador to Beijing, moving to end a months-long gap without a top diplomat in the world’s second-largest economy amid a damaging dispute between the two countries.
G&M - DAVID PARKINSON (2019-09-04)
In the face of a burgeoning international trade crisis and rising global recession fears, the Bank of Canada had a golden opportunity to signal that it is preparing to jump onto the rate-cutting bandwagon that most of the world’s major central banks have already boarded over the summer.
G&M - Roger E. A. Farmer (2019-09-04)
Former U.S. Secretary of the Treasury Lawrence Summers and Anna Stansbury recently cast doubt on the future of central banking, suggesting that the prevailing monetary-policy framework is in dire need of a rethink. I agree and have been calling for a reconsideration of “Old Keynesian economics” for more than a decade, starting with an article I published in 2006, two years before the Great Recession made it fashionable to question the way we think about macroeconomic theory. I am heartened that the narrative and body of research I have developed continues to gain public support.
G&M - Bill Curry (2019-09-04)
The Bank of Canada kept its key interest rate unchanged at 1.75 per cent Wednesday, but said the U.S.-China trade conflict is having a more damaging impact on global growth than previously thought.
Bloomberg - Theophilos Argitis (2019-09-04)
The BOC resisted pressure from investors to signal it will follow global easing trends.
Bloomberg - Mohamed A. El-Erian (2019-09-04)
Fearing market disruptions, both the European Central Bank and the Federal Reserve will most likely take more stimulus measures this month regardless of what their analyses tell them about the potential impact on the economy and financial assets. That has implications for both future economic prosperity and medium-term financial stability, and it adds to the to-do list for policy makers and investors.
G&M - Don Pittis (2019-09-03)
Inevitably, Bank of Canada governor Stephen Poloz must do his job in the shadow of his powerful U.S. equivalent at the Federal Reserve.
Canadian Business - Andy Blatchford (2019-08-30)
Canadians last heard the Bank of Canada’s take on the economy in the early days of summer — and the timing of its next update has the potential to tinge political debate during the federal election campaign.
Since the bank’s most recent public comments in early July, there’s mounting evidence of a slowing global economy mostly due to the escalating U.S.-China trade war — including fresh Chinese tariffs Friday and new threats on Twitter from U.S. President Donald Trump that shook up markets.
The Bank of Canada’s latest message underlined the resilience of the domestic economy, and it appeared in no rush to move its policy even as other central banks were poised to lower rates to respond to the already dimming international outlook.
The next policy meeting is scheduled for Sept. 4, while the election campaign is widely expected to start at some point during the first two weeks of September. The central bank will release a statement with its rate decision, and the following day deputy governor Lawrence Schembri will provide more detail about the governing council’s thinking when he gives a speech and holds a news conference in Halifax.
Bloomberg - Carolina Millan and Jorgelina Do Rosario (2019-08-29)
Hemmed in by an uphill re-election bid and a worsening debt and currency crisis, Argentine President Mauricio Macri will try to cajole creditors into giving the country more time to repay them as he struggles to simply finish his term.
WSJ - Nick Timiraos (2019-08-28)
A former Federal Reserve official took the unusual step of calling on the central bank to help prevent President Trump’s re-election by refraining from taking measures to stimulate the U.S. economy.
NY Times - Jeanna Smialek (2019-08-28)
G&M - Mark Mackinnon (2019-08-28)
The Speaker of the House of Commons, John Bercow, a nominally non-partisan figure who oversees parliamentary proceedings, was among those disturbed by the Prime Minister’s actions. “However it is dressed up, it is blindingly obvious that the purpose of prorogation now would be to stop Parliament debating Brexit and performing its duty in shaping a course for the country,” Mr. Bercow said in a statement. “At this time, one of the most challenging periods in our nation’s history, it is vital that our elected Parliament has its say.”
WSJ - Nick Timiraos (2019-08-27)
The world’s central bankers are increasingly worried that President Trump’s tactics to reorder global trade are destabilizing economies in ways that they can’t easily fix.
NY Times - Stephanie Saul (2019-08-27)
CBC - AP (2019-08-26)
Billionaire industrialist David H. Koch, who with his older brother Charles transformed American politics by pouring their riches into conservative causes, has died at age 79.
CBC - AP (2019-08-26)
Federal Reserve officials were widely divided at their meeting last month when they decided to cut rates for the first time in a decade, with some arguing for a bigger rate cut while others insisted the Fed should not cut rates at all.
Reuters - Brendan Pierson (2019-08-26)
Lawyers for U.S. President Donald Trump asked a federal appeals court on Friday to block Deutsche Bank AG (DBKGn.DE) and Capital One Financial Corp (COF.N) from handing the financial records of the president’s family and the Trump Organization to Democratic lawmakers.
CBC - AP (2019-08-21)
The minutes of the July 30-31 discussions released Wednesday show two officials believed the Fed should cut its benchmark policy rate by a half-percentage point, double the quarter-point reduction the central bank eventually agreed upon. On the other end, some Fed officials argued for no rate cut at all, believing that the economy was beginning to improve after a soft patch in the spring.
WSJ - Michael S. Derby (2019-08-21)
Federal Reserve Bank of Minneapolis President Neel Kashkari wants the Fed to make a firmer commitment to getting inflation back up to its 2% target.
WSJ - Gabriele Steinhauser, Thandi Ntobela (2019-08-21)
South Africa’s finance minister stirs controversy, especially in the kitchen.
Bloomberg - Theophilos Argitis (2019-08-21)
Bloomberg - Bloomberg Video (2019-08-21)
Zero interest bond flops.
Bloomberg - Chris Bourke and Michael Heath (2019-08-21)
Australia and New Zealand’s central banks are pondering what until recently seemed unthinkable: deploying the types of extreme monetary policies that were spawned globally by the 2008 global financial crisis. Bond-purchase programs and negative interest rates were for years seen Down Under as the preserve of countries that had gorged on risky derivatives and been reckless with debt. There’s been a sharp change of tune, however. Now, the two central banks are at the forefront of what appears to be a race to the bottom -- where even interest rates at zero may not be far enough.
G&M - STEVE HOLLAND AND LISA LAMBERT (2019-08-20)
U.S. President Donald Trump said on Tuesday his administration was considering potential tax cuts on wages as well as profits from asset sales, and sought to play down market anxieties that the world’s top economy could be heading for a recession.
WSJ - Nick Timiraos (2019-08-19)
FT - Adam Samson and Tommy Stubbington (2019-08-19)
Investors are anticipating a fresh wave of stimulus measures to tackle flagging growth, as the White House said it was considering a new round of tax cuts to boost the economy.
G&M - KONRAD YAKABUSKI (2019-08-16)
From the very start, Mr. Trudeau was poorly served by his own advisers in the PMO and by former Privy Council clerk Michael Wernick. All of them should have known they were playing with fire by seeking to put pressure on Ms. Wilson-Raybould to reconsider her decision not to overturn the Director of Public Prosecutions’ refusal to grant SNC-Lavalin a deferred prosecution agreement that would have spared the Quebec-based engineering giant from facing a trial on fraud and bribery charges.
CBC - Robyn Urback (2019-08-16)
Six months ago, Trudeau told Canadians that a report his office pressured the AG was 'false.' He lied
Finextra - Finextra (2019-08-15)
The impending launch comes after five years of work. The People's Bank set up a research team to investigate a digital currency back in 2014.
G&M - Reuters (2019-08-14)
The Bank of Canada said on Tuesday it plans to buy back up to $500 million worth of bonds from up to nine outstanding issues in a cash management repurchase operation on Aug. 20.
G&M - Jeffrey Frankel (2019-08-14)
The trade war between the United States and China is heating up again, with U.S. President Donald Trump abruptly announcing plans to impose a 10-per-cent tariff on the US$300-billion worth of imports from China that he had so far left untouched. The Chinese authorities then allowed their currency, the renminbi, to fall below the symbolic threshold of seven yuan for every U.S. dollar. The Trump administration promptly responded by naming China a “currency manipulator” – the first time the U.S. had done that to any country in 25 years. Pundits declared a currency war, and investors immediately sent global stock markets lower.
Bloomberg - Michael Heath (2019-08-14)
WSJ - Lalita Clozel (2019-08-14)
Federal Reserve officials are weighing whether to use a tool known as the countercyclical capital buffer, which could reduce the risk of a credit crunch in a downturn.
G&M - S.R. Slobodian (2019-08-14)
Canada’s Ethics Commissioner Mario Dion says Prime Minister Justin Trudeau contravened a section of the Conflict of Interest Act by using his position of authority over then-justice-minister Jody Wilson-Raybould to get her to overrule the director of public prosecution’s decision to not negotiate a deal with SNC-Lavalin that would avoid criminal prosecution.
Reuters - Kevin Yao, Ryan Woo (2019-08-13)
China’s yuan is at an appropriate level currently and two-way fluctuations in the currency will not necessarily cause disorderly capital flows, a senior official at the People’s Bank of China told Reuters on Tuesday.
WSJ - Daniel Kruger (2019-08-12)
Federal agencies, banks and investment firms are pushing Wall Street to install their preferred replacement for the London interbank offered rate, the interest-rate benchmark underpinning trillions of dollars in financial contracts.
G&M - Matt Lundy (2019-08-09)
Expectations are mounting the Bank of Canada will be forced to cut interest rates and join a growing number of central banks that have eased monetary policy as the U.S.-China trade war intensifies and recession signals ripple through financial markets.
Reuters - Leika Kihara (2019-08-09)
The Bank of Japan may seek to prevent unwelcome yen rises by tolerating temporary, market-driven falls in long-term interest rates, former BOJ board member Sayuri Shirai said on Friday.
FT - Henry Foy, Max Seddon (2019-08-09)
As pro-democracy protests hit central Moscow this summer, student vlogger Egor Zhukov promoted peaceful resistance to his 100,000 followers on YouTube. Violent clashes on the city’s streets — which have seen armour-clad, helmeted riot police pin down unarmed protesters on stone pavements as their colleagues beat their knees with batons — showed Russia’s security services doling out “political repression”, he said. “Life is a struggle for power,” Mr Zhukov said in a video uploaded last week. “People with no power are fighting to have any at all. People who have any power are fighting for it to be absolute.”
Bloomberg - Tim Duy (2019-08-08)
The Federal Reserve can try to be coy about the chance of an interest-rate cut at the September meeting, but that train has already left the station. Stuck in a negative feedback loop with President Donald Trump and financial market participants, while simultaneously under pressure amid falling global interest rates, policy makers will find themselves left with few options but to further ease short-term rates.
CBC - Reuters (2019-08-06)
But later on Tuesday, China's central bank buttressed the yuan by fixing it at a slightly stronger rate, which ratcheted down the tensions a little.
FT - Kadhim Shubber (2019-08-06)
A US appeals court has bolstered the power of federal prosecutors to grab records from foreign banks even if the transactions at issue did not pass through US accounts. In a ruling released on Tuesday, three appeals court judges in Washington sided with the Department of Justice against a trio of Chinese banks, including one that had received a subpoena under the Patriot Act.
FT - Mure Dickie (2019-08-06)
The departing Royal Bank of Scotland chief executive has backed Bank of England warnings about the impact of a no-deal Brexit, saying that leaving the EU without an agreement would cause some medium-term “pain and anguish”.
G&M - ANDREW GALBRAITH AND WINNI ZHOU (2019-08-05)
The U.S. government has determined that China is manipulating its currency and will engage with the International Monetary Fund to eliminate unfair competition from Beijing, U.S. Treasury Secretary Steven Mnuchin said in a statement on Monday.
Reuters - Pete Schroeder (2019-08-05)
The U.S. Federal Reserve announced on Monday it planned to develop its own round-the-clock real-time payments and settlement service, with an expected launch in 2023 or 2024.
NY Times - NY Times (2019-08-05)
Not all Fed policymakers agreed to the cuts. Eric Rosengren of the Boston Fed and Esther George of the Kansas City Fed voted against yesterday’s decision, the second and third dissents of Mr. Powell’s tenure. They preferred to leave rates unchanged, saying that the U.S. economy remains strong.
WSJ - William Mauldin, Nick Timiraos and Paul Kiernan (2019-08-05)
The U.S. Treasury labeled China a currency manipulator after the Chinese central bank let the yuan depreciate, capping a day of trade-war escalations that sparked a global fall in financial markets and fears the clash could stall the U.S.’s economic expansion.
FP - Kevin Carmichael (2019-08-02)
Geoff Zochodne talks to FP columnist Kevin Carmichael about the Fed’s first rate hike in a decade and where it goes from here.
Reuters - Ann Saphir, Richard Leong (2019-08-02)
In a series of tweets, Trump said he will slap 10% tariffs on $300 billion of Chinese imports starting Sept. 1, saying he was unsatisfied with the pace of trade negotiations between the two superpowers.
G&M - Matt Lundy (2019-07-31)
The U.S. Federal Reserve cut its key interest rate Wednesday for the first time since the financial crisis of 2008, marking the start of a new phase in monetary policy.
G&M - DAVID PARKINSON (2019-07-31)
By deciding to cut interest rates, the Federal Reserve has positioned itself as a shield, protecting the U.S. economy from its own government’s worst instincts. But it may have also set itself up to be President Donald Trump’s enabler.
CBC - CP (2019-07-31)
The Bank of Canada sent signals earlier this month that the Canadian economy is very much on its own path and, at least in the short term, has no reason to follow any move by the Fed to lower rates.
WSJ - Greg IP (2019-07-30)
When Federal Reserve policy makers gather in Washington this week to weigh cutting interest rates, a big part of their decision will already have been made—in Frankfurt.
WSJ - Nathaniel Taplin (2019-07-30)
Will the People’s Bank of China follow the Federal Reserve and cut interest rates on Wednesday? Actually, it has found a stealthy way to do that already.
WSJ - Megumi Fujikawa (2019-07-30)
Japan’s central bank said it wouldn’t hesitate to ease monetary policy further should the need arise, an attempt to keep pace with other major central banks that are preparing to cut rates.
G&M - Michael Babad (2019-07-29)
The Federal Reserve is widely expected to cut interest rates this week, but a big question is whether markets will be satisfied with what the U.S. central bank does and says.
Reuters - Ann Saphir (2019-07-29)
U.S. central bankers are expected to lower borrowing costs this week for the first time since the depths of the financial crisis more than a decade ago. That’s the easy part.
WSJ - Kate Davidson (2019-07-29)
Borrowing by the federal government is set to top $1 trillion for the second year in a row as higher spending outpaces revenue growth and concern about budget deficits wanes in Washington and on Wall Street.
G&M - DAVID PARKINSON (2019-07-28)
The U.S. Federal Reserve is poised to deliver an interest rate cut this week to safeguard a strong U.S. economy against rising trade-war risks – a move that will heighten questions about whether Canada’s central bank will follow suit to address its own trade worries.
G&M - Jeffrey Frankel (2019-07-28)
The United States Federal Reserve has some reasons to cut interest rates at its July 31 meeting, or subsequently if the U.S. economy weakens. (There is also a case for holding rates steady, if growth remains as strong as it has been over the past year.) But one argument for easing is less persuasive: a perceived imperative to get U.S. inflation up to or above 2 per cent.
WSJ - Nick Timiraos (2019-07-28)
Former Federal Reserve Chairwoman Janet Yellen said she endorses a quarter-percentage-point cut in the central bank’s benchmark interest rate this week because of worries over global growth and low inflation.
CBC - AP (2019-07-26)
The ECB's rate-setting board left its key interest benchmarks unchanged at a policy meeting Thursday but said it could cut them as its next move. It also said it was telling staff to study ways to restart its bond-buying stimulus program in coming weeks.
WSJ - Tom Fairless (2019-07-26)
The European Central Bank signaled it is preparing to cut short-term interest rates for the first time since early 2016 and possibly restart its giant bond-buying program.
Reuters - Reuters (2019-07-24)
Bank of England chief economist Andy Haldane sought to push back against market bets that the central bank’s next move will be an interest-rate cut, saying he would resist lowering borrowing costs unless there was a sharp downturn.
WSJ - Tom Fairless (2019-07-24)
European Central Bank officials are preparing to step up with fresh stimulus, echoing similar signals by the Federal Reserve and other central banks. The question for investors is, when, and how, will the ECB act?
WSJ - PAUL J. DAVIES (2019-07-24)
The ECB has convinced financial markets that it will act. The question is, among its grab bag of possible moves, will it do more than investors expect?
G&M - PAUL WALDIE (2019-07-23)
The Boris Johnson era gets under way Wednesday as the colourful politician becomes Britain’s prime minister and faces the daunting challenge of pulling the country out of the European Union in just three months.
G&M - Nicolas Van Praet (2019-07-23)
he Quebec government is adding its voice to those pressing SNC-Lavalin Group Inc. to execute a quick turnaround, saying the work needed to set the company back on course is “enormous.”
NY Times - David Mueller (2019-07-23)
WSJ - Brent Kendall (2019-07-23)
The Justice Department is opening a broad antitrust review into whether dominant technology firms are unlawfully stifling competition, adding a new Washington threat for companies such as Facebook Inc., Google, Amazon.com Inc. and Apple Inc.
WSJ - Brian Blackston (2019-07-22)
Central banks around the world are poised to unleash the most synchronized monetary stimulus since the financial crisis one decade ago.
Economist - Economist (2019-07-22)
Central-government officials were quick to respond. A statement on the office’s website said the slogans “insulted the country and its people” and accused the demonstrators of going “well beyond the scope of peaceful protest”. It said they had “seriously challenged the central government’s authority” as well as tested the “bottom line” of what China calls the “one country, two systems” arrangement under which it has ruled Hong Kong since Britain handed the territory back in 1997.
FP - Kevin Carmichael (2019-07-22)
For the next few months or so, some of us here at the Financial Post will be filing dispatches from the trade wars, which arrived in Canada on the last day of May 2018, when Prime Minister Justin Trudeau returned U.S. President Donald Trump’s fire with a volley of retaliatory tariffs on imports worth about $17 billion.
FT - James Politi and Lauren Fedor (2019-07-22)
The White House has struck a two-year deal with Democratic party leaders in Congress to raise America’s $22tn borrowing limit, removing the threat of a US debt default and significantly raising federal spending.
FT - James Politi (2019-07-22)
The Fed’s preferred measure of inflation — the core PCE price index, which excludes food and energy — is running at 1.7 per cent year-on-year compared with the central bank’s target of 2 per cent — and inflation expectations have also weakened.
FP - Martin Eichenbaum (2019-07-19)
In sum, powerful forces are working to keep the supply of savings high and the demand for funds to invest low. The net result has been and will continue to be low nominal and real (inflation-corrected) interest rates.
WSJ - Nina Trentmann (2019-07-19)
The U.K. government named a new chief executive for the Financial Reporting Council, a move that comes as the audit and accounting watchdog prepares for a wide-ranging overhaul amid concerns about its effectiveness.
WSJ - Josh Zumbrun, Bojan Pancevski (2019-07-19)
The career of the next European Central Bank chief shows the institution is getting a diplomat and negotiator, not a technocrat or economist. “She is extremely charming and that is part of her style of politics.”
WSJ - Brian Blackstone (2019-07-19)
Central banks in Asia and South Africa lowered their interest rates, joining a global easing bandwagon that started earlier this year in the Asia-Pacific region and is expected to include the U.S. and Europe within weeks.
Reuters - Reuters Video (2019-07-18)
G7 finance ministers and the U.S. House Financial Services Committee on Wednesday all added to the chorus of concerned voices about Facebook's new cyrptocurrency.
Bloomberg - Shull Ren (2019-07-18)
Yahoo Finance - Leigh Thomas (2019-07-17)
France wants to use its presidency of the two-day meeting in the picturesque chateau town of Chantilly north of Paris to get broad support for ensuring minimum corporate taxation. Facebook's recent announcement of plans to launch a digital coin has met with a chorus from regulators, central bankers and governments insisting it must respect anti-money-laundering rules and ensure the security of transactions and user data.
The Guardian - Paul Karp (2019-07-17)
Australia’s prudential regulator will gain new powers to prevent “inappropriate” directors and senior executives being appointed, the federal government has promised.
FP - Karin Strohecker (2019-07-16)
Debt owed by governments, companies, financial institutions and households across developing economies soared to US$69.1 trillion or 216 per cent of gross domestic product from US$68.9 trillion a year earlier. Debt-to-GDP ratios had risen at the fastest pace in Chile, Korea, Brazil, South Africa, Pakistan and China over the past year, the IIF found.
NY Times - Jack Ewing, Amie Tsang (2019-07-16)
She doesn’t have the typical résumé — no doctorate in economics, no post as a central banker — for running the body that sets monetary policy for one-fifth of the global economy. But investors are betting that Christine Lagarde, the surprise nominee to be the next president of the European Central Bank, will act in much the same way as the bank’s last leader.
WSJ - Dave Michaels, Sam Schechner (2019-07-16)
G&M - James Bradshaw (2019-07-16)
The Bank of Canada will take over as administrator of a key interest-rate benchmark that is undergoing an overhaul as part of global reforms to benchmarks, some of which have been vulnerable to manipulation.
G&M - PETE SCHROEDER AND KATIE PAUL (2019-07-16)
Democratic and Republican lawmakers said on Tuesday that Facebook Inc’s history of what they described as untrustworthiness should stand in the way of it launching a digital currency, labelling the plan “delusional” and “crazy” at a Senate hearing.
G&M - STEVE AMBLER AND JEREMY KRONICK (2019-07-15)
The Bank of Canada held its overnight rate constant at 1.75 per cent this week. Markets had completely priced this in, but nevertheless, there are reasons to be surprised by this decision, and perhaps even consider it a missed opportunity.
G&M - Michael Babad (2019-07-15)
We're heading toward key central bank meetings that promise to move financial markets.
CBC - CBC (2019-07-15)
But as global trade threats linger, Canada's top central bankers warn that many people who should know better, including stock market investors, seem to think cuts to interest rates can solve all problems.
G&M - Niall McGee (2019-07-15)
The World Bank has ordered Pakistan to pay Barrick Gold Corp. and Chile’s Antofagasta PLC US$5.8-billion in damages stemming from a long-running international arbitration dispute over mine rights for a massive copper gold project.
G&M - David Milstead (2019-07-12)
U.S. policies that force governments to buy certain products from American factories are harming Bombardier Inc.’s railcar factories in Canada, the company says.
CBC - AP (2019-07-12)
Deficit to top $1 trillion US by end of fiscal year, Trump administration projects
CBC - AP (2019-07-12)
France has adopted a pioneering tax on internet giants like Google, Amazon and Facebook despite threats from the U.S.
FP - Reuters (2019-07-12)
RBC, a primary dealer of British government bonds, said in a research note to clients that the BoE will soon have to ditch its main message that rates will need to rise at some point — even if Brexit goes smoothly.
G&M - GIUSEPPE VALIANTE (2019-07-11)
Guilbeault in 1993 helped found a major environmental advocacy group in Quebec called Equiterre. The activist also worked for Greenpeace for ten years before returning to Equiterre as its director and spokesman in 2007.
FT - Adam SamsonMamta Badkar and Matthew Rocco,and Siddarth Shrikanth (2019-07-11)
The Nasdaq Composite, which rose 0.8 per cent, set a new closing high while the Dow Jones Industrial Average, which finished up 0.3 per cent, touched a fresh intraday record during the session.
Bloomberg - Matthew Burgess (2019-07-11)
Australia’s prudential regulator has ordered three of the nation’s largest banks to increase their capital holdings after finding weaknesses in risk management akin to those at Commonwealth Bank of Australia.
G&M - Fergal Smith (2019-07-10)
The Bank of Canada on Wednesday looks set to raise its second-quarter economic growth forecast and stand pat on interest rates, taking a different tack from some major peers, which are signaling plans for additional stimulus.
Bloomberg - Laura Curtis (2019-07-10)
NY Times - Jeanna Smialek (2019-07-10)
The Federal Reserve’s meeting this month was never going to be an easy one given that officials remain split over when — or whether — to cut interest rates. The last few weeks could set the Fed up for an even more difficult call.
WSJ - Nathan Allen (2019-07-10)
European equities decline
G&M - Bill Curry (2019-07-10)
The Bank of Canada kept its key interest rate unchanged Wednesday and avoided signalling its plans, even as its U.S. counterpart set the stage for a rate cut as soon as this month.
CBC - AP (2019-07-10)
Federal Reserve Chairman Jerome Powell said Wednesday that "many" Fed officials believe a weakening global economy and rising trade tensions have strengthened the case for looser interest-rate policies.
Reuters - Howard Schneider (2019-07-10)
A confidence shock driven partly by the U.S. trade war is at the center of an increasingly persuasive argument for Federal Reserve policymakers seriously considering cutting rates for the first time in a decade
Reuters - David Shepardson (2019-07-10)
“The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies,” U.S. Trade Representative Robert Lighthizer said in a statement announcing the investigation.
Bloomberg - Theophilos Aargitis (2019-07-09)
Bloomberg - Katherine Greifield (2019-07-09)
G&M - Andrew Willis (2019-07-08)
In one of the great contrarian investments of our time, billionaires such as Murray Edwards and Li Ka-Shing are pouring money into Alberta’s oil sands.
FP - Kevin Carmichael (2019-07-08)
Canada’s Trade Commissioner Service offered via Twitter this week to help executives struggling with this question: What is a free trade agreement?
NY Times - Jeanna Smialek (2019-07-08)
Federal Reserve officials worry that the uncertainty caused by the trade war between the United States and China could be constraining business spending and may be contributing to a manufacturing slowdown that is dragging on growth.
CBC - Catharine Tunney (2019-07-08)
"The federal government must put measures in place to ensure that this situation never happens again."
FP - William Watson (2019-07-08)
There is a reductionist economic interpretation of Canadian confederation that says it was all about the British colonies of northern North America getting together so they could borrow more effectively in London’s capital market. Though an economist, I’m not an economics reductionist so I don’t entirely buy that story. Many things motivate people besides more-efficient borrowing.
G&M - Michael Babad (2019-07-05)
The “quality” of Canadian jobs is eroding as increases in low- and mid-pay employment far outstrips that of higher-paying positions, CIBC World Markets says.
G&M - Mumal Rathore (2019-07-05)
The Bank of Canada will diverge from the U.S. Federal Reserve’s expected policy easing path and keep interest rates on hold at least through this year, according to economists in a Reuters poll who said however that the risk of a recession has risen.
Finextra - Finextra (2019-07-04)
In a letter to Facebook chief Mark Zuckerberg, democrats on the House Financial Services Committee demanded an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency and digital wallet, Libra and Calibra..
G&M - Joseph E. Stiglitz (2019-07-04)
Facebook and some of its corporate allies have decided that what the world really needs is another cryptocurrency – and that launching one is the best way to use the vast talents at their disposal. The fact that Facebook thinks so reveals much about what is wrong with 21st-century American capitalism.
G&M - Michelle Zilio (2019-07-04)
U.S. President Donald Trump pressed his Chinese counterpart Xi Jinping on the cases of two Canadians detained by China in apparent retaliation for Canada’s arrest of a Chinese telecom executive on an American arrest warrant, Canadian sources say.
CBC - Geoff Leo (2019-07-04)
In December 2015, the Crown filed a series of charges against Wang and Cui, accusing the married couple of receiving payments from Chinese nationals seeking permanent residency in Canada in exchange for securing them job-offer letters, often for positions that didn't actually exist.
G&M - PAUL WALDIE (2019-07-04)
Bank of England Governor Mark Carney has emerged as a leading candidate to take over as head of the International Monetary Fund, one of the most important positions in the global economy.
G&M - Johnson Lai (2019-07-03)
China’s government strongly backed Hong Kong’s beleaguered administration on Tuesday, saying pro-democracy protesters who occupied and vandalized the city’s legislature committed “serious illegal acts” that endangered the social order.
G&M - Rob Nickel (2019-07-03)
An Indigenous-led group plans to offer to buy a majority stake in the Trans Mountain oil pipeline from the Canadian government this week or next, a deal that could help Prime Minister Justin Trudeau mitigate election-year criticism from environmentalists.
Bloomberg - Robert Tuttle (2019-07-03)
G&M - Matthew McClearn (2019-07-02)
A federal review of Export Development Canada has exposed serious shortcomings at the Crown corporation, noting its disclosure practices fall far short of other financial institutions, and that the agency is not legally obligated to consider the environmental or human-rights impact of the financial support it provides to exporters.
WSJ - James Glynn (2019-07-02)
The Reserve Bank of Australia cut interest rates for the second time in as many months, moving to bolster the resource-rich economy against an increasingly murky global outlook, and drive faster job creation locally.
WSJ - Tim Fairless (2019-07-02)
Mario Draghi is teeing up some of the boldest policy moves of his eight-year term as European Central Bank president only four months before he steps down, potentially binding the hands of his successor for years.
CBC - Peter Zimonjic, Hannah Thibedeau (2019-06-26)
A Canadian government official, who spoke to CBC News on the condition they not be named, confirmed the CFIA notified its Chinese counterparts it had uncovered faked veterinary certificates for some Canadian meat products.
FP - Larysa Harapyn - video (2019-06-26)
Mark Warner of MAAW Law speaks with the Financial Post’s Larysa Harapyn about the upcoming G20 summit in Japan.
WSJ - Spencer Jacob (2019-06-26)
Pundit Stephen Moore didn’t get onto the Federal Reserve Board, but he has joined a “decentralized central bank” that hopes to tame cryptocurrencies like bitcoin.
WSJ - Vibhuti Agarwal (2019-06-26)
The Reserve Bank of India’s deputy governor stepped down on Monday, reigniting a debate on the independence of monetary policy in the world’s biggest democracy.
FP - Geoff Zochodne (2019-06-26)
Judith Robertson was named on Tuesday as the next commissioner of the Financial Consumer Agency of Canada, a job that has been vacant after the term of the organization’s previous leader expired earlier this month.
G&M - KANISHKA SINGH (2019-06-25)
Three large Chinese banks could lose their access to the U.S. financial system after a judge found them in contempt for refusing to comply with subpoenas in a probe into violation of North Korean sanctions, The Washington Post reported on Monday.
CBC - CBC (2019-06-25)
But Matt Stoller, a former financial policy advisor to the U.S. Senate Budget Committee, says this move would take the company out of the business world and into the realm of a sovereign nation.
FP - Victor Ferreirra (2019-06-25)
Each time the price of gold poked its head above a technical level of US$1,350 an ounce, speculators would immediately take profits and slam it back down, he said. The last three times prices hovered above that level in intraday trading, they couldn’t hold it until close.
BNN Video - Ed Devlin-Video (2019-06-25)
BNN Bloomberg asked economists and analysts whether the Bank of Canada can afford to not follow the Fed if it indeed cuts rates. Here’s what they had to say.
NY Times - Powell speech (2019-06-25)
Discusses concerns with global economy and policy decisions.
fsim.ca - Mark Sibthorpe (2019-06-25)
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.
BNN - BNN Video (2019-06-24)
The Bank of Canada is facing a meaningfully different macroeconomic environment, so I do not believe they will be in lockstep with the Fed.
G&M - Janet McFarland (2019-06-24)
The chief executive of Canada Mortgage and Housing Corp. (CMHC) has overseen a transformation of the Crown corporation since 2014, shifting CMHC’s focus from its long-time role as Canada’s largest mortgage insurer to a new role as the front-line administrator of the Liberal government’s National Housing Strategy, a program of loans and grants to fund housing for vulnerable groups.
G&M - Michael Babad (2019-06-24)
“There are too many reasons to be gloomy about the Canadian dollar to forecast a sharp appreciation, and our forecast essentially looks for it to underperform others as the U.S. dollar finally corrects in the face of a slowing economy.”
Mr. Juckes, global fixed income strategist, projected the loonie would be at slightly over 75 US cents by December, just shy of 76 by next March, and almost 77 by June, 2020.
CBC - Don Pittis (2019-06-24)
A law that would force Hong Kong courts to send people charged with crimes under Chinese law to mainland China to face penalties has the two groups worried for different reasons, and this time business is weighing in. And it appears at least some factions within the Chinese political establishment are listening, even as Beijing blames the forces of foreign capitalism for instigating the massive protests.
Bloomberg - Alistair Marsh (2019-06-24)
CBC - CBC (2019-06-20)
The U.S. central bank has decided to keep its benchmark interest rate right where it is, in a range between 2.25 and 2.5 per cent.
WSJ - Greg IP (2019-06-20)
Like it or not, the Fed is the world’s central bank. Thus, it is now signaling it will likely cut rates in coming months, not because the U.S. is headed into recession, but because shadows are growing over the rest of the world.
G&M - Adrian Morrow (2019-06-20)
U.S. President Donald Trump is vowing to press Chinese President Xi Jinping on Canada’s behalf over Beijing’s detention of two Canadians in apparent retaliation for Ottawa’s arrest of a Chinese telecom executive.
G&M - HALLIE GU AND DOMINIQUE PATTON (2019-06-19)
China will block pork imports from a third Canadian firm after a shipment was found to contain the banned feed additive ractopamine, the customs agency said on Tuesday, deepening a trade and diplomatic dispute with Canada.
WSJ - Mike Bird (2019-06-19)
In the rally currently roaring through the global bond market, Japan is being left behind, exposing the key flaws in its unique monetary policy platform.
G&M - Geoffrey York (2019-06-18)
In Djibouti, two superpowers have built heavily guarded bases only a few kilometres apart, watching the crossroads between Asia, Africa and the Middle East in an increasingly tense standoff for global supremacy. What could possibly go wrong?
G&M - Barrie McKenna (2019-06-17)
Depending on who’s talking, Canada’s farm export sector is either on the cusp of greatness or headed for disaster.
G&M - David Luggren (2019-06-17)
Ottawa looks set to approve a hotly debated plan to expand an oil pipeline this week, people familiar with the process told Reuters, but the move is unlikely to help Prime Minister Justin Trudeau rebuild flagging support ahead of an October election.
BBC - BBC (2019-06-17)
The scenes are reminiscent of 2003 - when half a million people protested against proposed national security legislation. The unpopular chief executive at the time, Tung Chee-hwa, resigned months later. Critics have said the legislation would expose people in Hong Kong to China's deeply flawed justice system and lead to further erosion of the city's judicial independence.
WSJ - Nick Timiraos (2019-06-17)
Sometimes the Fed cuts rates as a form of insurance, because the risk of bad things happening has gone up: For parallels to questions the Fed faces, analysts point to two rate cuts from the 1990s.
WSJ - Akane Otani (2019-06-17)
Markets are sending conflicting signals about how big a threat the global trade rift presents, underscoring the difficulty investors face in sizing up the fallout from the U.S. and China’s spat.
NY Times - Neil Irwin (2019-06-17)
They want it known they’re basing their decisions on sound economics rather than political considerations. They wish not to be pushed around by what traders in financial markets and cable news pundits want. Or even by the president of the United States.
WSJ - Lawrence Norman (2019-06-17)
Iran said it would exceed limits on its enriched-uranium stockpiles before the end of this month, as the U.S. said it would send an additional 1,000 troops to the Mideast in response to “hostile behavior” by Tehran.
WSJ - WSJ (2019-06-17)
Chinese regulators made fresh attempts to calm frayed nerves in the country’s financial sector, as bank liquidity remained tight by some measures three weeks after authorities took over a struggling city lender.
FP - Philip Cross (2019-06-13)
It is no surprise that of all the former governors of the Bank of Canada, only John Crow had the gravitas and legacy to write a book about his tenure. By comparison, the current governor, Stephen Poloz, whose seven-year term has just entered its final year, barely has accomplishments, never mind a legacy. That is, unless one counts a track record of subpar growth, two near-recessions, monumental bubbles in Canada’s two largest housing markets and a substantial devaluation of the currency. But he did put the face of a female civil-rights activist on the $10 bill.
G&M - Nathan Vanderklippe (2019-06-12)
Protesters crowded onto the streets of downtown Hong Kong Wednesday morning, installing barriers on roads and snarling traffic as they prepared for a day of action to protest a bill that would make it easier for authorities in China to extradite people from the city.
G&M - MATTHEW MCCLEARN, GEOFFREY YORK (2019-06-11)
In Latin America, billions of dollars in Canadian government-backed loans have been funnelled to two of the region’s most notorious oil companies: the state-owned petroleum corporations of Mexico and Brazil, each riddled with frequent reports of bribery, bid-rigging and inflated contracts.
WSJ - Brian Blackston (2019-06-11)
As the global economy slows, central bank policies won’t follow the same path as a decade ago.
WSJ - Vivian Salama (2019-06-11)
President Trump said that the Federal Reserve has given China a competitive advantage over the U.S. with its monetary policy, adding that it is clear some officials haven’t listened to his advice to cut interest rates.
Reuters - Clare Jim, Kane Wu (2019-06-11)
Hong Kong geared for more protests, including strikes, transport go-slows and even picnics, against a proposed extradition law that would allow people to be sent to China for trial, even as the city’s leader vowed on Tuesday to push ahead with the bill.
NY Times - Ben Dooley (2019-06-10)
Spend big and never mind the deficit. That’s what proponents of modern monetary theory, the unorthodox set of economic ideas that has inspired politicians like Bernie Sanders and Alexandria Ocasio-Cortez, see as the winning formula for American prosperity.
