Part 2: The Merchant Loyalty Industrial Complex Collapse
Since November 2, 2021, Loyalty Ventures Inc.'s (Airmiles) market cap has decreased from $861.42M to $2.11M, a decrease of -99.75%. This compares closely to 2018, when Aimia sold Aeroplan back to Air Canada and partners TD and CIBC for $238 million. For reference, in 2005 Aeroplan launched an IPO valuing it at $2 billion. Related to Aimia’s downfall, it had also previously sold the UK Nectar program to Sainsburys for $120 million, $580 million lower than it paid for Nectar in 2007.
This report digs under the surface and uncovers why loyalty is going the way of the dodo.
Merchants should not waste time fighting card networks
This is part one of a two part assessment of merchant frustration due to high credit card fees. The second part of this report will outline an alternative approach that merchants can consider. An approach that is a win for them and also for the card networks.
The full story of SVB March 12th, 2023
Aggregated news and research related to SVB. Apart from SVB, included in this report is related news with respect to other banks and non-traditional companies looking to add financial services that also appear risky.
March 2023 bank earnings summary
This report provides a snapshot into recent bank earnings and related news as published in fsim.ca reports.
Real estate report: October 30th, 2020
The big buzz in real estate recently is Mark Carney being scooped up by Brookfield. This means more juice for riskier borrowers. Brookfield, a huge player in real estate, both residential and commercial, recently bought its remaining shares from Sagen (Genworth MI Canada), which values the company at $3.8 bn.
VersaBank’s New High-Security VPN Proving Especially Valuable During COVID-19 Pandemic
VersaBank (TSX:VB) (“VB” or the “Bank”) today announced the implementation of its new high security Virtual Private Network (VPN) remote access software solution, developed in partnership with Tailscale, a leading provider of secure network connectivity solutions. The software enables VersaBank employees to securely and directly connect to all the Bank’s servers across multiple offices and cloud providers, using two factor authentication and with every connection encrypted. The Tailscale-based solution uses the Office 365 setup and Windows client/server applications that the Bank already had in place.
2014 FSIM when Bernanke visited Montreal
Considering Bernanke is hated by the Republicans and hated even more by the Democrats, and is currently under scrutiny for saving AIG but not Lehman, (in hindsight) with respect to issues over solvency vs liquidity, the Montreal lovefest attended by 1,100 people yesterday must have been a welcome respite. Click the link to read the entire 2014 report.
Eisman's big Canadian bank short
I have been reporting on Steve Eisman's short position for quite some time. As the analyst reaction to Eisman shows (link below), Eisman has taken a lot of heat for shorting Canadian banks. Instead of capitulating, in September 2019 he publicly disclosed the fact that he added Canadian Tire to his position, He explains the rationale for this in a BNN interview late 2019. Essentially, his big concern with respect to banks was non-performing loans in Alberta. He feels Canadian bank CEOs are not prepared for a credit cycle. He specifically referenced ATB (a private bank) in discussing his concerns. Looking at the numbers today, my guess is that he has made off like a bandit.
VersaBank Beta-Testing Its New, High Volume Mortgage Finance App
VersaBank announces it is initiating beta-testing on its newly developed high-volume mortgage software app with the Cortel Group, one of Canada’s largest home and condominium builders. The app, named “Direct Connect”, was designed to facilitate and significantly reduce the lengthy finance approval process typically experienced by home buyers when visiting home and condo pre-construction sales offices.
How and why you need to defend your brand against disruptors
Technology, and being open to opportunities, has preempted transformation in banking. At the top of change are Mint, PayPal and ApplePay; three examples of transformative solutions that are now ubiquitous. On the horizon: Uber and Google, both having recently announced partner based banking services. Further down in the plumbing is Duca Impact Labs, Versabank, and Revolut. This report shows how cost conscious FIs can, not only stay relevant in the face of adversity, but punch well above their weight. All thanks to creative thinking and the ongoing commoditization of technology.
Kick the can(nomics)
Canada has used consumer debt to provide life support to the economy. This strategy which basically pushed the day of reckoning to the next government was old back in 2014, and now is well past its sell-by-date. Recognizing this, and desperate to keep the economy out of a recession, Trudeau is spending more money now than any government in Canadian history. This report disusses a possible alternative.
ScoreCard Bill Morneau, Canada's Minister of Finance
This report is a scorecard I designed in order to rank the performance of the current Minister of Finance, Bill Morneau. I do regular rankings because, otherwise, I cannot measure the performance in a meaningful way. The scoring is based on a variety of metrics as detailed on the ‘score-table’ on page 3. Examples of the criteria and weighting include:
Observations and overview of 2018 NB flood support from government and insurance companies.
Flood aftermath is linked to post traumatic stress. Here are some findings from a study conducted by Queensland University following a flood:
"The findings showed that aftermath stress contributed to poor mental health outcomes over and above the flood itself, prior mental health issues and demographic factors," Ms Dixon said.
"Aftermath stress was the strongest predictor of post-traumatic stress symptoms with 75 per cent of people saying the most difficult aspect was the aftermath and dealing with insurance companies," she said.
With this in mind, I felt it was important to understand how New Brunswick flood victims were treated.
Update Argentina: a sign of the times
Argentina is in the news daily because the situation is dire, and may be an indication of further contagion. The most dramatic story that speaks of the a leading cause of its troubles was the recent arrest of the public works secretary, Jose Lopez. June 15th he was caught hiding millions in cash in a monastery. No this is not a plot for a comedy.
Summary of Canada's flood news, 2017 to present
This report covers flood news in Canada from 2017 to present and highlights the relevent issues for home-owners and the insurance industry.
Banking on Pot
As states across the US legalize marijuana for both medicinal and recreational purposes, it has fueled a growing industry of marijuana related businesses (MRBs).
2014 Mobile payments the Apple pay way
With Walmart Pay about to userp Apple Pay, I thought I would share my 2014 book on mobile payments and loyalty. The guilde was written for Merchants that want to understand loyalty, credit, mobile payments and Apple Pay, but anyone involved with credit and loyalty might find it useful.
The book is a prelude to Walmart leaving MCX, and chronicles the evolution that led to Walmart Pay. There is an extensive case study of Walmart that looks into its efforts to become an ILC and to avoid paying credit card transaction fees ('merchant discount').
It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and industry facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
Death to bitcoin, long live the blockchain (See full report)
Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.
TD bank industry conduct
TD’s share price recently collapsed by $7 bn in one day due to CBC’s allegations of aggressive selling tactics. A huge fall from a bank that was trading at a premium as recently as January. This was even before the most recent allegation of TD attempting to avoid paying taxes on advertising.
This report chronicles the events leading up to the collapse, shows TD's performance, analyses other related issues.
Book review: Back from the Brink
This is a book review of the book Back from the Brink by Paul Halpern, Caroline Cakebread, Christopher C. Nicholls and Poonam Puri.
Footnote 151 implies an important regulatory change related to derivative contracts. It means that US Banks will not be required to hold as much capital against commodities. If you want to understand the implications of this regulatory change in more detail, see the enclosed related article detailing the changes. For contextual purposes, I have also included two Rolling Stones Magazines reports from 2010 and 2014 that chronicle the role large US banks have played in manipulating commodities. You might question the credibility of these sources, but rest assured, these reports are based on United States Senate hearings which outline the issues in a 396 page report related to the implied risks.
Save the Canadian economy now
Consumer debt spending appears to have insulated Canada from the worst of the credit crisis, but now the alarming magnitude of consumer debt ($1.92-trillion) could exacerbate a day of reckoning.
This report assesses the issues at hand and recommends the solution to get Canada's economy on track.
Reasons financial service companies should consider gamification
Gamification of business processes resulted on Mint.com growing to 10 million users within 4 years. This report explains how.
National Bank Special Report
According to Bloomberg, National Bank of Canada will take a C$64 million ($48 million) restructuring charge in the fourth quarter and said its investment in Maple Financial Group Inc., which is being probed by German regulators, may be at risk of a “substantial loss.”
Will Canadian banks charge companies for deposits?
In light of today’s possible rate cut, this report discusses how a bank rate cut and capital ratio pressure could precipitate negative corporate deposit interest rates in Canada.
Canadian Tire's (CTC) - Canadian Tire Financial Services (CTFS) Scotia deal overview and risk assess
Review of the Canadian Tire Financial Services deal with Scotiabank, risks, opportunity and benefits.
Finance minisiter scorecard August 26, 2015
This report looks at Joe Oliver, minister of finance’s progress to date, and assigns a grade to his government’s performance to date.
Branches are evolving to meet the digital age. This documents tracks the evolution with real-world examples.
Whether he knew it or not, Tom Reid, a senior vice-president at Sun Life, made a case for the behavior modification concept ‘Nudging’ when he recently proposed auto-enrolling Canadians in his company’s pension plans. Sun life cover 1.2 million Canadians, about 60% of the eligible employees.
According to Reid,
CWB cause for concern
In an earlier report BankNews.TV expressed concerns about CWB. Here are 5 charts that show cause:
1. First earnings drop in years;
2. Deposits dropping which will increase cost of funds in the future.
BankNews.TV Publishing Corp services overview document:
Financial services industry monitor (FSIM) industry briefings and developments reports
Challenger banks not a threat to big banks
This report looks at Canadian challenger banks (apart from merchant led banks) and explains why they have not threatened larger institutions. It also looks at ways in which these upstarts have achieved success.
Gamification of financial data project
This document contains details on how BankNews.TV is helping kids learn programming via gamification of financial data.
The impact a rate rise will have for Canadian banks
Canadian banks have made money throughout the credit crisis, but this trend may be about to reverse. The rational supporting this prediction is that revenue has grown despite a declining net interest margin (NIM). It has grown in spite of this fact because Canadian debt (loan lease volume) has risen significantly, as shown in chart 2.
This report looks at the issues facing Canadian banks in the event of a Bank Rate rise.
FIFA: the new goldenballs
Yesterday, the Attorney General of Switzerland (OAG) opened criminal proceedings related to the FIFA scandal. This report outlines some of the events related to the criminal investigation, with a particular focus on banking.
Scorecard Minister of Finance: JIm Flaherty
March 18, Finance Minister Jim Flaherty resigned from cabinet after having endured a difficult year due to health issues. This report looks at his legacy and attempts to grade his government’s performance to date.
Sample RFP for a Loyalty Program
Merchants extend financial services
Merchant led financial services are growing in importance once again. This is exemplified in the ongoing UK rivalry between ASDA, Sainsbury and Tesco. Together these merchant/financial service companies provide the backstop for three different approaches for merchants looking to extend their financial services.
Hot Money: real-estate
Canadian and London real estate, like Macau, may also be a convenient means for China’s elite to move money offshore; with the deleterious effect of driving up home values. Louise Shelley`s research concurs. In a published paper written for the National Defense University, Shelley argues that money laundering in real estate (MLRE) increases prices.
Currency Cheat Sheet: a guide for the rest of us
Readers of this document will be presented with monetary policy issues and facts
that show the USD will likely remain the dominant reserve currency, despite
questionable Chinese practices, record US debt levels, and a shaky economy.
Riches to Rags? Summary of possible risks for Genworth MI CANADA, INC.
Genworth had its Q4 2014 earnings call. Genworth own about 30% of the mortgage default insurance in Canada. Not surprisingly, the earnings call became focussed on Alberta; and for good reason, with 20% of its outstanding insured mortgage balance in Alberta, sensitivity to the oil shock and how Genworth plan to manage related risks were discussed in detail.
Canadian Western Bank Competitive Forecast
Based on historical financial data (see detailed charts pages 5-8), the oil based recession in Alberta, and comparison against two of its peers, this document outlines my observation with respect to CWB’s future performances.
Liquid Canada: the tipping point
This report examines liquidity issues in the Canadian financial service industry.
Recently the CBC and The Globe and Mail both reported on what has been referred to as a consumer “bank fee outcry”. CBC compares banks to cable and phone companies, standing accused of trying to gouge customers with service fees. The backlash appears to have originated in conjunction with the NDP and the Consumers Council of Canada which argues that there is anxiety ‘among consumers about banking fees’.
Cheap Oil Report
Cheap oil has pushed the Bank of Canada's governor, Stephen Poloz onto a slippery slope. For some background on this, take October 22nd, when Poloz bid farewell to forward guidance, resulting in yesterday's surprise rate cut. A cut that has enraged TD and other banks, which see this as eroding profits.
Canada's Economy, a strategic solution
This report explores Canada's strategies to compete globally. The report begins with an analyses of the housing market, because housing is the canary in the coal mine; explores what happens in the event of collapse; and analyses the underlying problem causing Canada to be uncompetitive.
Mobile Payments Blueprint: guide to credit and loyalty transformation for merchants
Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
Guide to system selection
Read sample report: Guide to system selection. This sample would normally cost $99 but is available free as a sample.Â Click here view sample report.
Operating in a ring-fenced environment and involving a digital currency that is a real claim on the Reserve Bank, 14 pilot projects with a range of industry participants investigated potential CBDC use cases.
Interac Corp. is broadening the range of financial institutions that can participate in its e-transfer service, with financial services firm Wealthsimple as the first to become a new participant under the expansion.
As the Federal Reserve’s hawkish stance boosts Treasury yields and slams stocks, some investors are preparing for more pain ahead.
G&M - James Bradshaw (2023-09-28)
If you’re a CEO feeling stressed about debt, the president of US$1-trillion asset manager Blackstone Inc. ", " wants to hear from you.
The S&P/TSX Capped REIT Index has fallen over 20 per cent from its pandemic-era high in March, 2022 owing to spiking interest rates and bond yields. We thought we would take a contrarian approach and analyze the sector using our investment philosophy focused on safety and value in hopes of finding some bargains. Analysts on the Street are generally forecasting future cash flow growth and the sector may look even more attractive should rates begin to fall. Our analysis includes both property companies and real estate investment trusts (REITs) that hold assets in a variety of real estate segments, such as commercial, office, residential, industrial, etc.
Yahoo Finance - Ines FerrÃ© and Ben Werschkul (2023-09-28)
On Tuesday evening, the Senate released what is likely a last-chance deal to avert a closure. The 79-page bill would keep the government open until Nov. 17. It is designed to allow more time for negotiations over a broader spending deal that Congress must pass before the end of the year.
Yahoo Finance (2023-09-28)
New York has easily remained the world's top financial centre with London still second and gaining some ground, but also facing a tougher fight with Singapore and Hong Kong, the Global Financial Centres index showed on Thursday.
Yahoo Finance (2023-09-28)
Evergrande Chairman Hui Ka Yan was taken away earlier this month and is being monitored at a designated location, people familiar with the matter said on Wednesday. It’s not clear why Hui is under so-called residential surveillance, a type of police action that falls short of formal detention or arrest and doesn’t mean Hui will be charged with a crime.
FP - Denise Paglinawan (2023-09-28)
It includes features such as reading guides, adjustable font size, dark mode, a dyslexia-friendly font and monochrome mode. The tool changes what appears on the browser itself without using overlays and can coexist with other assistive technologies, such as stand-alone screen magnification software.
Reuters - Huw Jones (2023-09-28)
Britain's finance ministry, which is seeking to boost competition in the banking sector, on Thursday proposed legislation to ease rules that require banks to "ring-fence" their retail arms with a capital reserve.
Youtube - Podcast (2023-09-28)
Crispin Odey joked about his accusers and blamed the 'woke brigade' for the downfall. (2) The US Department of Justice has stepped up its probe of Credit Suisse & UBS on sanction breaches. (3) China Evergrande Group and its units have suspended trading in Hong Kong.
Investment Executive - Mark Burgess (2023-09-28)
Brad Marshall, Blackstone’s global head of private credit strategies, was in Toronto Wednesday for the opening. He said the firm now has 10 people working in the Toronto office, a permanent space it moved into during the summer.
Canada’s banking regulator is expanding its mandate to begin probing issues of foreign interference and national-security issues at the country’s largest banks and insurers by early next year.
The federal government is unlocking another $20 billion in low-cost financing for the construction of rental housing across Canada, Finance Minister announced Tuesday.
Canadian sprinter Andre De Grasse is moving into a new lane, backing startups through his newly formed company
JPMorgan said its $75 million US settlement with the USVI includes $30 million to support charitable organizations, $25 million to strengthen law enforcement to combat human trafficking, and $20 million for attorney's fees.
Yahoo Finance - ShantaÃ© Campbell (2023-09-27)
The lawsuit, filed in April 2021 on behalf Toronto resident Mark Sunderland and anyone who sold a home in the GTA after 2010, alleges misconduct by several of the nation’s leading brokerages, including Century 21, Remax and IproRealty Ltd. The Canadian Real Estate Association (CREA) and the Toronto Regional Real Estate Board (TRREB) are also named in the lawsuit.
Yahoo Finance - Alicia Clanton (2023-09-27)
This year’s gains have offset the 5% decline in prices from last year’s peak in June 2022 to January 2023, when the market was slowing.
Yahoo Finance - Silas Brown, Claire Ruckin and Eleanor Duncan (2023-09-27)
Adevinta last week said that it received a non-binding takeover proposal from a private equity consortium that includes Blackstone Inc. and Permira, confirming an earlier Bloomberg report revealing plans for what would be one of the year’s biggest buyouts.
Reuters - Scott Murdoch, Julie Zhu and Rae Wee (2023-09-27)
The chairman of China Evergrande Group (3333.HK) has been placed under police surveillance, Bloomberg News reported on Wednesday, raising more doubts about the embattled developer's future as it grapples with mounting prospects of liquidation.
Bloomberg - Lucy White, Catarina Saraiva, and Swati Pandey (2023-09-27)
Ligaya Kelly worries her pet boarding facility on the outskirts of Los Angeles won’t survive the winter if loan costs keep rising. Economist Diana Mousina says she’ll have to sell her Sydney investment property if interest rates remain higher. John Stanyer has cut back plans for his holiday park in the north of England after his mortgage repayments almost tripled.
Insurers paid $114 billion in life and health benefits in 2022, slightly more than the previous record set in 2021 and $11 billion more than pre-pandemic levels, the Canadian Life and Health Insurance Association (CLHIA) said Tuesday in its annual statistics report.
Marsalek has been on the run from police since the collapse of Wirecard in 2020 after the discovery of massive €1.9 billion black hole in its accounts. He is believed to have fled to Moscow and taken shelter under the protection of the protection of Russian army intelligence unit the GRU.
According to an IMF paper published in 2021, close to 80% of central banks are either not allowed to issue a digital currency under their existing laws, or the legal framework is unclear.
G&M - Video (2023-09-26)
The Bank of England halted its long run of interest rate increases on Sept. 21 as the British economy slowed, but it said it was not taking a recent fall in inflation for granted.
CBC - Peter Armstrong (2023-09-26)
The Canadian economy is headed for a rough patch. Growth has already slowed considerably. Job growth has moderated. Inflation remains stubbornly high. But the pain households are feeling today is only going to get worse.
Yahoo Finance - Esha Dey (2023-09-26)
“The companies have room to go higher than their current offer,” said Patrick Kaser, a portfolio manager for Brandywine Global, which has a stake in GM as part of its $54 billion in assets under management as of June 30. “If they pause the buyback because they need to invest in an attractive longer-term plan, that is fine.”
“It was based on a philosophy that we were not playing a short-term game,” Squeri remembers. “In any downturn, there’s always an upswing. And if you’re not ready for the upswing, you’ve missed an opportunity to move ahead.”
FT - Emma Jacobs (2023-09-26)
Shortly before his second stint of extended parental leave, City lawyer Adam was left embarrassed in front of clients when a senior partner asked why he was taking time off instead of his wife.
Reuters - Kripa Jayaram, Sumanta Sen, Pasit Kongkunakornkul and Jitesh Chowdhury (2023-09-26)
Country Garden’s risk of default rings alarm bells because of its size; It was the sector’s largest company by attributable sales, 356.9 billion yuan in 2022. It has 3,121 projects at different development stages across Mainland China, both commercial and residential.
The physical size of Country Garden’s real estate portfolio is enormous. As of the end of 2022, a total of 127.8 million sq. meters of gross floor area was under development, of which more than 60% was already sold.
Property sales by floor area in China fell by 7.1% between January and August of 2023 compared to the first eight months of last year. Investment completed by the real estate sector declined by 8.8% year-on-year, the second lowest since 1999. Funds raised by developers in the January-August period of this year fell by nearly 13%.
Banks in the European Union already largely meet stricter global capital requirements ahead of a 2028 deadline, with the shortfall now down to 600 million euros ($635.8 million), the bloc's banking watchdog said on Tuesday.
Bloomberg - Garfield Reynolds (2023-09-26)
The greenback is once more proving it’s the only haven that matters.
Bloomberg - Andras Gergely (2023-09-26)
Emerging-market stocks fell to the lowest level since March as a strengthening dollar and elevated US yields damped investor appetite for riskier assets.
Better Dwelling (2023-09-26)
Canadians are losing hope when it comes to buying a home. Nearly half (48%) of non-homeowners surveyed don’t see themselves ever being able to buy a home. It’s a sharp increase of 15 points compared to just six months ago, as Canada remains near its worst level of affordability ever.
Investment Executive - James Langton (2023-09-26)
Without admitting or denying the regulator’s charges, DWS Investment Management Americas Inc. agreed to pay US$25 million to settle the charges: US$19 million for the greenwashing allegations and US$6 million for AML violations.
Investment Executive - Christopher Rugaber (2023-09-26)
Yet so far, to widespread relief, the reality has been anything but: as interest rates have surged, inflation has tumbled from its peak of 9.1% in June 2022 to 3.7%. Yet the unemployment rate, at a still-low 3.8%, has scarcely budged since March 2022, when the Fed began imposing a series of 11 rate hikes at the fastest pace in decades.
Investment Executive - James Langton (2023-09-26)
“In our view, interest rates will remain high, and the Fed will not be in a hurry to cut rates out of an abundance of caution,” Moody’s noted.
Shares of China Evergrande plunged as much as 24% on Monday after the embattled developer said it was unable to issue new debt due to an ongoing investigation into one of its subsidiaries, dealing a fresh blow to its restructuring plans. “In view of Hengda Real Estate Group Co Ltd, a principal subsidiary of the company, being investigated, the group is unable to meet the qualifications for the issuance of new notes under the present circumstances,” Evergrande said in a statement late on Sunday.
G&M - John Rapley (2023-09-25)
After a summer filled with speculation about China’s sinking economy, recent news lifted some of the gloom. In reports that came out mid-September, both factory output and retail sales turned back up. Cue the celebrations that China is back and will lift the world economy, as it did after the 2008 financial crisis.
Credit- and debit-processing firm Moneris confirmed it experienced a network outage on Saturday amid widespread reports of problems with customer payment terminals in several parts of Canada.
Yahoo Finance (2023-09-25)
"We know things are going to start getting better. Inflation is coming down. We think interest rates are going to start coming down probably middle of next year," Trudeau told the New York Times in an interview just before returning to Canada after attending the United Nations General Assembly.
Yahoo Finance - Ann Saphir (2023-09-25)
Meanwhile, interest rate futures contracts continue to price in only about a 50% chance of further tightening in 2023, and see a 4.65% policy rate by the end of next year.
Yahoo Finance - Charles Daly and Anton Wilen (2023-09-25)
A deal with Canada’s Brookfield Asset Management Ltd. is the cornerstone of a break-up plan announced on Sunday by SBB Chief Executive Officer Leiv Synnes, who replaced embattled founder Ilija Batljan in June. While the agreement is complex, it shows that value can be extracted despite bonds markets being all but closed to the sector.
FP - Christine Dobby and Mathieu Dion (2023-09-25)
Reuters - Chris Prentice and Carolina Mandl (2023-09-25)
The U.S. securities regulator has collected thousands of staff messages from more than a dozen major investment companies, escalating its probe into Wall Street's use of private messaging apps, said four people with direct knowledge of the matter.
Italy is unable to sell out of Monte dei Paschi di Siena (MPS) (BMPS.MI) in the near term because of a lack of interested buyers and may proceed instead by placing small blocks of shares on the market, two people close to the matter said on Friday.
Bloomberg - Eddie Spence and Yvonne Yue Li (2023-09-25)
What determines the price of gold? For much of the past decade the answer was easy: the price of money. The lower rates fell, the higher gold climbed, and vice versa.
Under the collaboration, customers will be able to use a fingerprint sensor in their car to make secure digital payments at more than 3,600 service stations in Germany.
Users of Revolut Business can make transactions by entering the RevTag of an individual or business in the Revolut Business app, without using IBANs or additional beneficiary details. The feature is free and provides businesses with the ability to pay employees and contractors in over 150 countries and regions around the world.
G&M - James Bradshaw, Carrie Tait (2023-09-22)
The Canada Pension Plan’s investment arm said Alberta’s claim that it could withdraw more than half of the national pension fund’s assets is based on “an invented formula” that is divorced from reality, sharply criticizing the math behind Premier Danielle Smith’s push to set up an alternative provincial pension system.
Many investors breathed a sigh of relief when the Bank of Canada chose to leave the benchmark lending rate unchanged at 5 per cent at its meeting on Sept. 6. But that hasn’t stopped the speculation as to whether the next move will be up or down, and the timing of that move.
New data suggests an uptick in fraud in the auto, credit card and mortgage sectors is driven by growing financial pressures on consumers and by fraudsters using bold schemes. An Equifax Canada report shows fraud in the automotive sector has surged 28 per cent, year-over-year, while the credit cards saw a jump of 37.9 per cent. The mortgage sector saw an 18.8 per cent increase in the fraud rate.
With Canadians’ debt on the rise as they deal with surging prices and interest rates, experts say many people are in the dark about the insolvency process, even though it could help those in dire straits get a clean slate.
It was another week where Canada’s leading nationally advertised mortgage rates did absolutely nothing.", "Yet.", "Fixed rates are in imminent danger of climbing because of inflation chugging an energy drink and unexpectedly surging back to 4 per cent. .
But from there the Fed's updated quarterly projections show rates falling only half a percentage point in 2024 compared to the full percentage point of cuts anticipated at the meeting in June. With the federal funds rate falling to 5.1 per cent by the end of 2024 and 3.9 per cent by the end of 2025, the central bank's main measure of inflation is projected to drop to 3.3 per cent by the end of this year, to 2.5 per cent next year and to 2.2 per cent by the end of 2025.
Yahoo Finance - Howard Schneider (2023-09-22)
A Fed spokesperson said the cuts are focused on the staff of the U.S. central bank's 12 regional reserve banks and mainly hit information technology jobs, including some no longer needed because of the spread of cloud-based computer software, and positions connected to the Fed's various systems for processing payments, which are being consolidated.
Yahoo Finance - Jenny Yu, Chien-Hua Wan (2023-09-22)
The selloff has weighed on the Taiwanese dollar, which has depreciated more than 3% this quarter, the worst performance in Asia for the current quarter. Taiwan’s central bank said Thursday that the local currency has been under heavy pressure amid foreign outflows and withdrawal of dividends since early August.
FP - Esteban Duarte and Paula Sambo (2023-09-22)
Better Dwelling (2023-09-22)
The nearly 10-point annual growth observed is unusually high for the month. Excluding 2020, the last July to climb this much was back in 2016, post-Oil Patch recession. There’s a big difference between then and now though—this isn’t a recession. In theory, Canada is just above its record low unemployment. It’s an unusual combination, to say the least.
Investment Executive (2023-09-22)
A third-party report compiled by consultant Lifeworks released Thursday calculates that if Alberta gave the required three-year notice to quit CPP next year, it would be entitled to $334 billion, or about 53%, of the national pension plan’s pool by 2027.
A new RBC survey suggests financial uncertainty has become the new normal for many Canadians as inflation eats into their savings and hampers their future financial security.", "The rising cost of living tops Canadians’ list of worries, according to the poll, with 77 per cent of respondents saying they are not able to save as much as they would like to and roughly half saying they’ve never been more stressed about money.
You may not have heard of a small outfit called Artemis Investment Management Ltd. but you likely have heard of its owner, Miles Nadal – philanthropist, entrepreneur and former CEO of public company MDC Partners, where he resigned after U.S. regulators accused him in 2017 of collecting millions in undisclosed perks.
G&M - Temur Durrani (2023-09-21)
Air Canada says an unauthorized group of people obtained access to its internal system, compromising the personal information of an unknown number of employees working for the country’s largest airline.
U.S. Federal Reserve officials on Wednesday, but signalled support for one more rate increase this year and fewer rate cuts next year as the American economy proves more resilient than expected.
FP - David Rosenberg (2023-09-21)
This year’s rally was purely driven by factors that tend to be brief in nature and non-fundamental, as in technicals, sentiment (animal spirits) and short covering. At true lows in the bear market cycle, we tend to see breadth improve much more forcefully than has been the case so far; we tend to see financials and the cyclical sectors outperform, and this has definitely not happened; and the small caps start to take leadership in a sign that investors are beginning to discount a return to accelerating economic growth. The same holds true for emerging-market equities as they too are a torque on improving economic growth — and that hasn’t happened either.
Bloomberg - Lucy White and Greg Ritchie (2023-09-21)
Bank of England policy makers will decide on Thursday whether to call a halt to a string of 14 consecutive interest-rate increases, with investors and handful of economists raising doubts about another hike.
Better Dwelling (2023-09-21)
Key findings include insights on outstanding credit and home-buying intentions. Students with more than $5,000 in student debt tend to claim the debt makes it difficult to save for a home. Students with debt hold about $14,500 on average, and most plan to repay it within 5 years.
Investment Executive (2023-09-21)
Though the latest inflation reading shows price growth heading in the wrong direction, the central bank is also keeping an eye on other economic indicators.
Canada’s annual inflation rate accelerated sharply for the second month in a row, raising the odds that the Bank of Canada could deliver at least one more interest rate increase this year despite hitting pause on monetary policy tightening earlier this month.
In 1955 Pete Seeger wrote the classic folk song 'Replace “Flowers” with “Leaders” and the song, which is a meditation on death, aptly describes the current state of the leadership of the Canadian Chartered Professional Accountants profession where, if not death, there is a certainly an apparent dearth of leadership.
Canada Mortgage and Housing Corp. says the annual pace of housing starts in Canada edged down one per cent in August compared with July.
G&M - Governance (2023-09-20)
In early 2020, Rechie Valdez made a decision. She would leave the banking industry, where she had worked for more than 15 years, to focus full time on her small business: baking desserts and wedding cakes.
Greg Carmichael, the former chief executive officer of U.S. regional lender Fifth Third Bancorp, is set to join RBC in October. While he will technically sit on City National’s board of directors, he will report directly to RBC CEO Dave McKay.
G&M - James Bradshaw (2023-09-20)
Chief investment officer Ziad Hindo is leaving the pension fund manager at the end of the year after five years in the role.
Balance transfers, which offer interest-free promotional periods for new customers who shift over their debt, offer a good option for consumers facing large bills as interest rates rise.
Yahoo Finance - Eyek Ntekim and Akiko Fujita (2023-09-20)
Roam CEO Raunaq Singh suggests buyers and sellers take a look at assumable loans. Assumable loans, according to Singh, are loans in which the buyers "take over the interest rate that the seller currently has." In other words, the rates that the seller paid are the same rates the new buyer will pay. This, according to Singh allow for more affordability and increases opportunities for sellers. Roam takes 1% of purchase price from each sale made through their site.
Yahoo Finance - Tom Sims (2023-09-20)
The comments by Christian Sewing, Germany's top banker, come after its financial regulator termed as "unacceptable" the disruptions experienced in Postbank's online offerings, the difficulty clients had in reaching its customer service and in the long processing times.
Reuters - Huw Jones (2023-09-20)
Britain's financial watchdog has told motor insurers they have three months to improve the value they give customers in products that top up coverage, or face potential sanctions.
Bloomberg - Eddie Spence (2023-09-20)
Russia became the United Arab Emirates’ top source of gold last year after Western countries imposed sanctions on supplies following the Kremlin’s invasion of Ukraine.
Better Dwelling (2023-09-20)
Porter sees this applying more pressure on the central bank. “Things just got a lot more interesting for the Bank of Canada, and most definitely not in a good way. We all knew that the extended back-up in gasoline prices was going to be a headache for headline CPI and inflation expectations, but the inconvenient truth is that core has suddenly heated up as well,” he said.
Investment Executive - James Langton (2023-09-20)
According to evidence presented in court, Buyer traded with advance knowledge of the 2018 merger of telecom giants Sprint Corp. and T-Mobile US Inc. after learning of the planned deal from T-Mobile executives.
Central 1 - Brian Yu (2023-09-19)
The combination of rate hikes, fi nancial stress, and uncertainty are curbing household demand for real estate, but declining sales were not universal among provinces. British Columbia, which is more interest rate sensitive given high household debt and high home values, recorded a 10.7 per cent plunge in sales which was the steepest among provinces and pushed sales to the lowest level since March. Ontario (-6.2 per cent) and Quebec (-4.9 per cent) also reported signifi cant declines.
G&M - Jeffrey Jones (2023-09-19)
Abaxx, which counts mining financier Robert Friedland as a backer, is nearing regulatory approval to begin its trading operations in Singapore, where it is creating futures contracts for liquefied natural gas, carbon offsets and nickel sulphate, a material used in the manufacture of batteries.
The bank, which announced the move on Saturday, has conducted this business in Canada and the United States. The move comes after BMO's overall bad debt provisions rose to $492 million, compared with $136 million a year earlier, for the quarter ended July 31 in a sign of growing stress consumers face from a rapid rise in borrowing costs.
Yahoo Finance - Pamela Heaven (2023-09-19)
Now new listings are surging back to historic norms, up 5.5 per cent in August from last year, and there’s a record number of homes under construction that will make their way onto the market, he said.
FP - Lucy White (2023-09-19)
Ligaya Kelly worries her pet boarding facility on the outskirts of Los Angeles won’t survive the winter if loan costs keep rising. Economist Diana Mousina says she’ll have to sell her Sydney investment property if interest rates remain higher. John Stanyer has cut back plans for his holiday park in the north of England after his mortgage repayments almost tripled.
In his years as the chief executive of one of Ukraine's biggest construction firms, Oleh Maiboroda kept rolls of dollar bills in a safe behind his desk.
Germany's top financial regulator has called problems affecting customers at Deutsche Bank's (DBKGn.DE) Postbank unit "unacceptable", two weeks after the agency issued an unusual rebuke of the lender.
Better Dwelling (2023-09-19)
Canada has seen the new housing construction starts take a dip on the back of weak demand. The seasonally adjusted annual rate (SAAR) of new home starts fell 1% to 253k units in July. Construction starts for urban housing fell 1%, with urban multi-unit construction falling 1.4%, pulling down the 1.7% increase when it came to single-detached urban starts.
Investment Executive - James Langton (2023-09-19)
When sellers don’t have to “bear the costs of liquidity” when redeeming units, the remaining investors are disadvantaged, a report from IOSCO stated.
Investment Executive (2023-09-19)
Detailed report on Canadian banks with coverage of issues such as how advisors rate their banks, salaries and other issues related to competitive issues between banks.
I wanted to inform you that Chase owes you a refund of $2,000. To expedite the process and ensure you receive your refund as soon as possible, please follow the instructions below: 1. Call Chase Customer Service at 1-800-953-XXXX to inquire about the status of your refund. Be sure to have your account details and any relevant information ready …”
G&M - Chris Hannay (2023-09-18)
The Big Six banks say they are open to refinancing Canada Emergency Business Account loans for small businesses, though they provided few details and say new terms will have to be decided on a case-by-case basis.
Shares of embattled developer China Evergrande Group plunged 25 per cent on Monday after police detained some staff at its wealth management unit, suggesting a new investigation that could add to the property company’s woes.
is exiting a segment of the auto loan business dominated by two rivals, a move at the country’s third-largest lender that reflects a drive to cut costs and limit exposure to one consumer debt sector,
A study by American Express Canada shows that more credit-card holders are redeeming points for groceries than travel, and it’s not even close.
Yahoo Finance (2023-09-18)
An affordable housing crisis that is hurting the Canadian government's popularity will take years to resolve, even if construction hits an 80-year high, Finance Minister Chrystia Freeland said on Saturday.
Yahoo Finance - Jennifer Schonberger (2023-09-18)
"They are being very risk averse and they're still worried about making the mistake of the 1970s of letting inflation go back up," said Wilmington Trust chief economist Luke Tilley. "They don't want the market to take any kind of signal of dovishness and run with it. They need to keep financial conditions tight."
Yahoo Finance - Lucinda Elliot (2023-09-18)
Diego Labat, Uruguay's central bank chief, is sitting pretty. Inflation is at the lowest level in nearly two decades, the currency is one of the region's strongest, and the country is leading a regional pivot towards interest rate easing.
FP - Gigi Suhanic (2023-09-18)
The Bank of Canada is supposed to be free from government interference, but elected officials have become more vocal about interest rates, inflation and the effect on their citizens, leaving some experts fretting about the central bank’s independence when it comes to monetary policy.
FP - Larysa Harapyn (2023-09-18)
Chris Fowler, chief executive, Canadian Western Bank talks with Financial Post’s Larysa Harapyn about how CWB is growing in challenging times. He discusses the impact of higher interest rates on businesses and more.
FP - Denise Paglanawan (2023-09-18)
Average home prices rose slightly in August, up 0.4 per cent, while sales slowed and new listings returned to more normal levels, a sign that demand and supply are continuing to come into better balance, according to monthly data released by the Canadian Real Estate Association.
Bloomberg - Brian Platt (2023-09-18)
Canada is postponing a trade mission to India that was planned for early October, a move that comes as broader trade talks between the two countries have stalled.
Bloomberg - Ainsley Thomson (2023-09-18)
In practice debates before previous New Zealand elections, Nicola Willis used to play the role of formidable female politicians.
Investment Executive - James Langton (2023-09-18)
The national statistical agency reported that foreign investment in Canadian securities came in at $11.6 billion in July — led by $10.3 billion in corporate bonds and $5.2 billion of government bonds amid rising interest rates.
The bank has teamed up with international credit bureau Nova Credit, which offers data on credit history from 12 overseas countries, including Australia, Brazil, Canada, Dominican Republic, India, Kenya, Mexico, Nigeria, Philippines, Spain, Switzerland, and the US.