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

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

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

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

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

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

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

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

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

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

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

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

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


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

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Research

ScoreCard Bill Morneau, Canada's Minister of Finance  

fsim.ca/docs/ScoreCardMorneau.pdf

Mark Sibthorpe

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

 


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

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

Mark Sibthorpe

 


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

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

 

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

 

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

 


Update Argentina: a sign of the times  

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

Mark Sibthorpe

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


Summary of Canada's flood news, 2017 to present  

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

Mark Sibthorpe

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


Banking on Pot  

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

SBS

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


Canadian banking industry overview  

Mark Sibthorpe

The industry overview is divided into 5 parts:

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


2014 Mobile payments the Apple pay way  

fsim.ca/docs/Mobile_Payments_Apple_Pay_2014.pdf

Mark Sibthorpe

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


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

Mark Sibthorpe

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


TD bank industry conduct  

fsim.ca/docs/tdind2.pdf

Mark Sibthorpe

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


Book review: Back from the Brink  

fsim.ca/docs/backbrink.pdf

Mark Sibthorpe

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


Footnote 151  

fsim.ca/docs/footnote151.pdf

Mark Sibthorpe

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


Save the Canadian economy now  

fsim.ca/docs/helecopter-money.pdf

Mark Sibthorpe

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


Reasons financial service companies should consider gamification  

fsim.ca/docs/Gamfin.pdf

Mark Sibthorpe

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


National Bank Special Report  

fsim.ca/docs/NatBSpec.pdf

Mark Sibthorpe

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


Will Canadian banks charge companies for deposits?  

fsim.ca/docs/depgrowthimpact2.pdf

Mark Sibthorpe

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


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

fsim.ca/docs/ctfsfinal.pdf

Mark Sibthorpe

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


Finance minisiter scorecard August 26, 2015  

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

Mark Sibthorpe

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


Xtreme Branch  

fsim.ca/docs/xbranch.pdf

Mark Sibthorpe

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


Canadian Nudge  

fsim.ca/docs/nudge.pdf

Mark Sibthorpe

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


CWB cause for concern  

fsim.ca/docs/cwbupdate.pdf

Mark Sibthorpe

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


BNTV Overview  

fsim.ca/docs/overviewpdf.pdf

BNTV

BankNews.TV Publishing Corp services overview document:

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


Challenger banks not a threat to big banks  

fsim.ca/docs/challenger.pdf

Mark Sibthorpe

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


Gamification of financial data project  

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

Mark Sibthorpe

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


The impact a rate rise will have for Canadian banks  

fsim.ca/docs/irr-f.pdf

Mark Sibthorpe

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

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


FIFA: the new goldenballs  

fsim.ca/docs/goldenballs.pdf

Mark Sibthorpe

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


Scorecard Minister of Finance: JIm Flaherty  

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

Mark Sibthorpe

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


Sample RFP for a Loyalty Program  

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

Mark Sibthorpe


Merchants extend financial services  

fsim.ca/docs/merchantfs.pdf

Mark Sibthorpe

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


Hot Money: real-estate  

fsim.ca/docs/hotmoney.pdf

Mark Sibthorpe

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


Currency Cheat Sheet: a guide for the rest of us  

fsim.ca/docs/currencycheatsheet.pdf

Mark Sibthorpe

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


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

fsim.ca/docs/gq4risk.pdf

Mark Sibthorpe

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


Canadian Western Bank Competitive Forecast  

fsim.ca/docs/cwbf.pdf

Mark Sibthorpe

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


Liquid Canada: the tipping point  

fsim.ca/docs/Liquid.pdf

Mark Sibthorpe

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


Bank Fees  

fsim.ca/docs/Bank fees.pdf

Mark Sibthorpe

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


Cheap Oil Report  

fsim.ca/docs/co2.pdf

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


Canada's Economy, a strategic solution  

fsim.ca/docs/ces.pdf

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


Complete loyalty RFP  

fsim.ca/docs/booksample.pdf

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


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

fsim.ca/docs/booksample.pdf

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


Report on merchants extending financial services  

fsim.ca/docs/

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


Guide to system selection  

fsim.ca/docs/gssnow.pdf

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


News feed

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

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

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


AS BLOCKCHAIN HYPE SUBSIDES, BANKS COUNT THE COST OF EARLY EUPHORIA

Finextra - Finextra (2019-07-19)

Survey respondents on average expected a 24% return on investment on their early blockchain projects, but realised only a 10% return. Indeed, fully 59% of respondents said they had no confidence that the project would deliver a positive return on investment.


USE OF THE ADVANCED MEASUREMENT APPROACH FOR OPERATIONAL RISK CAPITAL

OSFI - OSFI (2019-07-19)

OSFI is revising its capital requirements for operational risk applicable to deposit-taking institutions (DTIs) considering the final Basel III revisions published by the Basel Committee on Banking Supervision (BCBS) in December 2017. Institutions currently approved to use the Advanced Measurement Approach (AMA) will be required to use a revised Basel III Standardized Approach when the revised requirements are implemented in Canada in Q1 2021.


POLICE ALLEGE MAFIA LAUNDERED $70-MILLION IN ONTARIO CASINOS, NINE ARRESTED

G&M - STEVE SCHERER AND ANGELO AMANT (2019-07-19)

Over three days, police raided 48 cafés, businesses and residences connected to the group, nabbing the alleged boss, Angelo Figliomeni, and eight other suspects on a raft of accusations, including money laundering, defrauding the government and participating in an organized-crime group.


B.C. POSTS $1.5-BILLION SURPLUS EVEN AS THE REAL ESTATE MARKET COOLS

G&M - CP (2019-07-19)

The British Columbia government ended its fiscal year in an operating surplus of $1.5-billion with the collection of more revenue from taxation and less money from a softening real estate market.


CANADA’S MORTGAGE STRESS TESTS JUST GOT A LITTLE EASIER

G&M - Matt Lundy (2019-07-19)

The interest rate used in Canada’s mortgage stress tests has fallen for the first time since 2016, making it slightly easier to become a homeowner.


WITH TAXES, YOU’RE GUILTY UNTIL PROVEN INNOCENT

G&M - Tim Cestnick (2019-07-19)

Did you know that, in Canada, paragraph 11(d) of our Charter of Rights and Freedoms ensures that we are “to be presumed innocent until proven guilty according to law in a fair and public hearing by an independent and impartial tribunal”? Good news, isn’t it? But wait. This Charter right doesn’t apply in the matter of taxes, where the opposite is true: You’re guilty until proven innocent.


BANKRUPTCY TRUSTEE LAUNCHES PROBE AS INVESTORS SEEK $7-MILLION

G&M - Janet McFarland (2019-07-19)

An Ontario bankruptcy trustee has launched an investigation after a developer failed to pay millions of dollars owed to investors who financed a housing development north of Toronto.


BANK OF ENGLAND’S MARK CARNEY APPEARS OUT OF THE RACE FOR IMF TOP JOB

G&M - JAN STRUPCZEWSKI AND LEIGH THOMAS (2019-07-19)

The governor of the Bank of England, Mark Carney, is unlikely to succeed Christine Lagarde as the boss of the International Monetary Fund, European officials said on Friday, as the European Union was considering four other names for the job.


SENIOR BANKER WITH JPMORGAN PLEADS NOT GUILTY TO BRIBERY CHARGES IN HONG KONG COURT

G&M - Felix Tam (2019-07-19)

JPMorgan’s former Asia investment banking vice-chair, Catherine Leung, pleaded not guilty to charges of bribery in a Hong Kong court on Thursday.


THE BANK OF CANADA NEEDS A PLAN FOR THE NEXT BIG RECESSION — AND THEY SHOULD SHARE IT

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.


MORGAN STANLEY REPORTS DROP IN PROFIT, BUT WEALTH MANAGEMENT GAINS

Reuters - Elizabeth Dilts, Matt Scuffham (2019-07-19)

It was the last big U.S. bank to report earnings in a quarter that exposed weaknesses in Wall Street’s investment bank and trading businesses. But Morgan Stanley executives downplayed the toll rate cuts could have on profitability and highlighted growth in the bank’s wealth management unit.


DANSKE BANK PROFIT HIT BY HIGHER COSTS, LOW INTEREST RATES

Reuters - Reuters (2019-07-19)

Second-quarter pre-tax profits fell to 4.76 billion Danish crowns ($716.6 million) from 5.49 billions the previous year, missing a mean forecast of 5.06 billion by analysts according to Refinitiv data.


NORDIC BANKS PINCHED BY ANTI-MONEY-LAUNDERING COMPLIANCE COSTS

WSJ - Kristin Broughton (2019-07-19)

Efforts to improve anti-money-laundering controls continue to weigh on the financial results of Nordic banks, which have faced allegations in recent months of moving dirty money.


U.K. AUDIT REGULATOR GETS A NEW LEADER AS BIGGER CHANGES LOOM

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.


WHAT CHRISTINE LAGARDE BRINGS TO THE ECB: FLEXIBILITY

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.”


GLOBAL EASING CYCLE GAINS MOMENTUM AS CENTRAL BANKS CUT RATES

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.


DIGITAL BANKING STARTUP OVERCOMES SETBACKS TO RAISE $170 MILLION

WSJ - Sara Germano (2019-07-19)

A digital bank with operations across Europe which recently launched in the U.S. has raised another $170 million in its latest funding round, pushing its valuation to $3.5 billion.


CANADIAN CITIES ARE NOW TOO EXPENSIVE FOR MINIMUM WAGE EMPLOYEES TO RENT

Better Dwelling - Daniel Wong (2019-07-19)

Canadian real estate insanity has officially spread to every corner of the country. The Canadian Centre for Policy Alternatives (CCPA) conducted a rental affordability study across Canada. The non-partisan organization found minimum wage employees can’t even afford to rent these days. Minimum wage earners can only afford to rent an average one-bedroom in 3 small cities – all in Quebec. Cities like Vancouver are so far out of whack, minimum wage employees need more than two jobs to afford a rental.


FOREIGN BUYERS OF US REAL ESTATE DROPS OVER 31%, FEWEST CHINESE BUYERS IN 10 YEARS

Better Dwelling - Better Dwelling (2019-07-19)

There’s a lot less foreign buyers of American real estate these days. Foreign buyers bought 183,100 homes this year, down 31.37% compared to the same period a year ago. Foreign buying of US real estate peaked in 2017, and the annual number of sales has fallen 35.64% from that peak. This is the fewest number of foreign buyers in the US in at least 10 years of data provided by NAR.


THE ERA OF HIGHER MORTGAGE RATES WAS SHORT-LIVED

G&M - Matt Lundy (2019-07-18)

For Canadians that bulked up on mortgage debt, a shift in lending conditions ensures that many households will avoid a nasty rate surprise that takes a bigger bite out of wallets.


‘ONE OF THE MOST PUZZLING’ ECONOMIC LANDSCAPES EVER: HOW A LOW-RATE WORLD IS BAFFLING INVESTORS AND CEOS ALIKE

G&M - Ian McGugan (2019-07-18)

In what a prominent chief executive calls “one of the most puzzling” economic landscapes he has ever seen, the unusual is quickly becoming the usual – and few things demonstrate that better than the expectations surrounding the U.S. Federal Reserve meeting at the end of this month.


LOWER GAS PRICES SLOW ANNUAL INFLATION RATE TO BANK OF CANADA’S 2% BULL’S-EYE

Canadian Business - Andy Blatchford (2019-07-18)

The annual inflation number for June hit the Bank of Canada’s ideal target as it came down from 2.4 per cent in May, Statistics Canada said Wednesday in a new report. It marked the first move lower after four straight months of a rise in the year-over-year change.


TD CUSTOMERS QUESTION HOW VISA DEBIT CHEQUING ACCOUNTS WERE COMPROMISED

CBC - Elizabeth McMillan (2019-07-18)

In 2015, she was shocked to find her TD bank account about $20,000 in overdraft while she was attending a friend's funeral. It turned out someone had been using her debit number at various American supermarkets from New Jersey to California. Her bank ended up freezing her account and she had to borrow money from her friend to get home to Fort Frances, Ont.


MANULIFE, PIMCO LOAD UP ON COLOMBIAN GOVERNMENT PESO BONDS

FP - Oscar Medina (2019-07-18)

Two of the world’s biggest asset managers loaded up on Colombian peso bonds in the last quarter as the government pledged to rein in deficits to defend the nation’s investment-grade credit rating.


SLOWEST LENDING GROWTH IN 25 YEARS REVEALS THE TRUE IMPACT OF MORTGAGE STRESS TESTS

FP - Murtaza Haider and Stephen Moranis (2019-07-18)

A report released Tuesday by the Canada Mortgage and Housing Corporation confirmed this assertion, finding that 2018 saw the slowest growth rate of outstanding mortgages in a quarter-century.


ALTERNATIVE LENDERS GAIN GROUND AS MORTGAGE ORIGINATIONS SLOW: CMHC

FP - Nicholas Sokic (2019-07-18)

Alternative mortgage lenders saw more business in 2018 even though overall mortgage originations declined, leading to the slowest year-over-year growth rate of outstanding mortgages in 25 years, according to the Canada Mortgage and Housing Corporation’s (CMHC) inaugural Residential Mortgage Industry Report.


SWEDES ARE GETTING IMPLANTS IN THEIR HANDS TO REPLACE CASH, CREDIT CARDS

NY Post - Lee Brown (2019-07-18)

More than 4,000 people have already had the sci-fi-ish chips, about the size of a grain of rice, inserted into their hands — with the pioneers predicting millions will soon join them as they hope to take it global.


AMF IMPOSES ADMINISTRATIVE PENALTIES ON MANULIFE AND FIRST NORTH AMERICAN INSURANCE

Insurance Journal - IIJ (2019-07-18)

The two insurers, over a 19-year period, offered a travel insurance product via Voyages Découvertes Senior inc. (Senior Discovery Tours) without providing a distribution guide to the regulator or to the distributor. Also, the AMF was not informed of the identity of this distributor, stated the regulator.


WILLIS TOWERS WATSON MAKES TRIPLE SWOOP FROM MARSH

Insurance Business - Lyle Adriano (2019-07-18)

All three appointees will be based in Toronto and will report to both WTW FINEX financial institutions global head Allison Barrett and WTW head of corporate risk and broking in Canada John Haas.


ONE-TWO PUNCH OF ALBERTA'S AUTO INSURANCE MARKET LAYS OUT INSUREDS

Insurance Business - Alicja Grzadkowska (2019-07-18)

The problems in Alberta’s auto insurance marketplace are two-fold, according to one broker. Not only are brokers unable to find coverage for certain risks, but those clients who do purchase auto insurance can have difficulties making payments on their premiums.


DANSKE BANK PROFIT HIT BY HIGHER COSTS, LOW INTEREST RATES

Reuters - Reuters (2019-07-18)

Danske Bank’s (DANSKE.CO) second-quarter pre-tax profit came in below expectations on Thursday, hit by low interest rates and higher costs associated with compliance following a money-laundering scandal at its Estonian branch.


BANK OF AMERICA TRIMS NET INTEREST INCOME GUIDANCE

Reuters - Imani Moise, Noor Zainab Hussain (2019-07-18)

Rate trends have prompted the bank to scale back its expected full-year net interest margin, a key measure of profitability, to 2% from 3%, executives said on a conference call with analysts.


FACEBOOK'S LIBRA GETS A GLOBAL SLAMMING

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.


LOONIE COULD COOL OFF, SAY ANALYSTS AT SOME TOP CANADIAN BANKS

Bloomberg - Alyce Andres (2019-07-18)


ONE OF THE WORLD’S MOST STUBBORN CENTRAL BANKS GIVES IN

Bloomberg - Shull Ren (2019-07-18)


G7 FINANCE MINISTERS LOOK TO REIN IN TECH GIANTS AT FRENCH MEETING

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.


WTO RULES AGAINST US IN TARIFF DISPUTE WITH CHINA

FT - Don Weinland (2019-07-17)

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.


APRA TO BE GIVEN NEW POWERS AFTER SCATHING REVIEW OF FINANCIAL WATCHDOG

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.


BIG BANKS CAN’T ESCAPE FROM THE FED SQUEEZE

Bloomberg - Brian Chappatta (2019-07-17)

On Monday, Citigroup Inc. disclosed a net interest margin that disappointed analysts, which raised doubts that JPMorgan Chase & Co. and Wells Fargo & Co. could meet expectations. That’s precisely what happened: JPMorgan, the largest U.S. bank, cut its full-year outlook for net interest income by $500 million. At Wells Fargo, which already lowered its net interest income guidance for the year in April, it fell 4% to $12.1 billion, below even the lowest estimate.


ONE BAD LEVERAGED LOAN ISN’T A LIQUIDITY SCARE

Bloomberg - Brian Chappatta (2019-07-17)

At first glance, it would seem the illiquidity boogeyman has made it to the other side of the Atlantic. What should be concerning to leveraged-loan investors is the rise of so-called enhanced CLOs, which are effectively a wager that more companies will go the way of Clover and get downgraded to the triple-C tier. These new funds are allowed to have up to half their portfolios in triple-C debt, while traditional CLOs are only permitted a fraction of that exposure. As my Bloomberg Opinion colleague Matt Levine quipped, “In finance, the way to enhance something is to make it worse.”


BUSINESS BANK BOOSTS START-UP FUNDING AS BREXIT LOOMS

FT - Daniel Thomas (2019-07-17)

The British Business Bank, the national development bank, ramped up funding for start-ups and smaller companies by more than a quarter to £6.6bn in 2018-19 as it prepares to help cover the withdrawal of EU money after Brexit.


TOP SHAREHOLDER FIRES BACK AT AIMIA IN BOARD BATTLE FOLLOWING AEROPLAN’S SALE

G&M - Tim Kiladze (2019-07-17)

Aimia Inc.’s largest shareholder is firing back at the loyalty-rewards company after two new directors were appointed, setting up a public clash between the New York-based fund and the company’s leadership.


HOUSING MARKET ‘HAS PASSED ITS CYCLICAL BOTTOM’: IF YOU’RE LOOKING TO BUY OR SELL, CHECK OUT THIS CITY-BY-CITY LOOK

G&M - Michael Babad (2019-07-17)

Economists believe Canada’s housing market has troughed, creating “almost dream conditions” for policy-makers who moved forcefully to head off a price and debt bomb.


LISTEN UP: BOFC DEPUTY GOVERNOR HAS AN IMPORTANT, IF ARCANE, TOPIC ON HER MIND AS RETIREMENT LOOMS

FP - Kevin Carmichael (2019-07-17)

Bank of Canada deputy governor Lynn Patterson is leaving the institution in a blaze of glory, at least by the standard she set for herself during six years of public service. Patterson’s announcement was that the Bank of Canada had decided it will take over administration of a revamped Canadian Overnight Repo Rate Average (CORRA) as soon as the second quarter of next year.


SPAIN'S BANCO SANTANDER EYEING CANADIAN BANKING LICENCE AS MORE EUROPEAN LENDERS CROSS THE POND

FP - Geoff Zochodne (2019-07-17)

An Alberta-based subsidiary of Spanish lender Banco Santander SA is seeking to obtain a Canadian banking licence after more than 20 years of helping finance consumer car purchases.


SCOTIABANK TURNS TO DOLLAR MARKET WITH ITS FIRST GREEN BOND

FP - Esteban Duarte (2019-07-16)

The Toronto-based lender is selling US$500 million of 3.5-year senior bail-in green bonds, according to people familiar with the transaction, scheduled to be sold later Monday. The notes are being initially marketed at a spread of around 75 basis points over the U.S. Treasury yield curve.


CHEAP MONEY SPARKS BORROWING BINGE THAT COULD END IN TEARS

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.


CHRISTINE LAGARDE MUST LEARN TO RUN AN ECONOMY THAT’S SLOWING TO A CRAWL

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.


WHY STOCKS ARE HITTING RECORDS AS ECONOMIC FEARS RISE: ‘THERE IS NO ALTERNATIVE’

NY Times - NY Times (2019-07-16)

That climb earned itself a nickname, the TINA market. It stands for There Is No Alternative, which simply means that because central banks around the world were holding rates so low, investors had little choice but to buy American stocks.


BAD LOANS IN EUROPE TUMBLE, BUT THEY ARE NEVER FULLY GONE

WSJ - Patricia Kowsmann, Margot Patrick (2019-07-16)

European banks have cleared nearly half of the toxic loans off their balance sheets since emerging from a debilitating debt crisis earlier this decade. The only trouble: A chunk of those loans haven’t fully gone away.


FACEBOOK CONFRONTS BIPARTISAN RESISTANCE TO CRYPTOCURRENCY PLANS

WSJ - Dave Michaels, Sam Schechner (2019-07-16)


CITIGROUP PROFIT BEATS ESTIMATES ON GAINS IN CONSUMER LENDING

Reuters - Imani Moise, Sweta Singh (2019-07-16)

Citigroup Inc topped expectations for quarterly profit on Monday as a tight lid on costs and strength in consumer lending helped the third-largest U.S. bank counter weakness in its trading business.


GOLDMAN BANKER HIGHLIGHTS MORGAN STANLEY'S HONG KONG IPO WOES

Reuters - Julie Zhu (2019-07-16)

A senior Goldman Sachs (GS.N) banker has highlighted to colleagues the role played by rival Morgan Stanley (MS.N) in failed Hong Kong IPOs following the collapse on Friday of Budweiser APAC’s $9.8 billion initial public offering, according to an internal email seen by Reuters.


BREXIT BE DAMNED: UK FINTECH SECTOR SEES RECORD GROWTH

Finextra - Finextra (2019-07-16)

UK fintech startups have reached a record level of $2.9 billion of funding in the first half of this year, across a total of 123 deals.


JPMORGAN CHASE POSTS $9.7 BILLION PROFIT, BEATING ESTIMATES

ABC - Ken Sweet (2019-07-16)

Banking giant JPMorgan Chase & Co. said Tuesday that its second quarter profits grew by 16% from a year ago, helped by lower taxes and the ability to charge businesses and consumers more to borrow money.


BANK OF CANADA TO TAKE CONTROL OF KEY INTEREST RATE BENCHMARK

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.


FACEBOOK SHOULDN’T BE TRUSTED WITH ‘DELUSIONAL’ CRYPTOCURRENCY PLAN, U.S. LAWMAKERS SAY

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.


BANK OF CANADA TO BUY BACK UP TO $500-MILLION IN BONDS

G&M - Reuters (2019-07-16)

The Bank of Canada said on Tuesday it plans to buy back up to $500 million from up to nine outstanding bonds in a cash management repurchase operation on July 23.


NON-BANK LENDERS ATTRACT WAVE OF MONEY, CMHC REPORT ON MORTGAGES SAYS

G&M - Janet McFarland (2019-07-16)

Mortgage Investment Corporations have provided billions of dollars in new lending to Canadian home buyers since 2016 as tougher mortgage qualification rules have driven far more business to private lenders, according to a new report from Canada’s national housing agency.


80¢ CANADIAN DOLLAR SUDDENLY WITHIN REACH, BANK SAYS

G&M - Michael Babad (2019-07-16)

A foreign bank believes we could soon see a Canadian dollar worth about 80 US cents.


GOLDMAN SACHS REVENUE RISES 16 PER CENT FROM HIGH INVESTING, LENDING BUSINESS

G&M - SWETA SINGH AND MATT SCUFFHAM (2019-07-16)

Goldman Sachs Group Inc reported a stronger-than-expected quarterly profit on Tuesday as the Wall Street investment bank benefited from increased stock trading.


FM GLOBAL REVEALS HUGE INVESTMENT IN INSURTECH RISKGENIUS

Insurance Business - Lyle Adriano (2019-07-16)

“As we look to the future and the evolving landscape of property insurance policy issuance, AI and machine learning offer FM Global great opportunities to enhance our clients’ experience,” commented FM Global senior vice-president of innovation Michael Lebovitz in a statement.


LORRI FREDERICK STEPS DOWN AS PRESIDENT OF CLAIMSPRO

Insurance Business - ClaimsPro (2019-07-16)

During her more than five years with ClaimsPro, the last three as President, Lorri has been instrumental in the organization’s continued industry leadership through delivering service excellence to clients, large and small. Her strong work ethic and her tireless efforts at building relationships with both clients and fellow employees has helped to grow ClaimsPro, as well as SCM, into what it is today.


THE BANK OF CANADA MISSED AN OPPORTUNITY TO RAISE RATES

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.


‘OUT-DOVISHED’: KEY CENTRAL BANK DECISIONS PROMISE TO MOVE MARKETS AMID HEIGHTENED UNCERTAINTY

G&M - Michael Babad (2019-07-15)

We're heading toward key central bank meetings that promise to move financial markets.


BITCOIN DROPS MORE THAN 10% AS SCRUTINY OF CRYPTOCURRENCIES GROWS

G&M - Tom Wilson (2019-07-15)

Bitcoin slumped more than 10 per cent over the weekend to a two-week low as fears of a crackdown of cryptocurrencies grew on mounting scrutiny of Facebook’s planned Libra digital coin.


SIGNS OF A LOOMING U.S. RECESSION ARE BUILDING, IF YOU LOOK BENEATH THE SURFACE

FP - David Rosenberg (2019-07-15)

I still hear “where’s the U.S. recession?” I keep responding with “you’re not scratching the surface.”


CANADIAN AND U.S. ECONOMIES ARE CONVERGING BUT DANGER LURKS: DON PITTIS

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.


U.S. FED SEEN LAUNCHING REPO FACILITY IN EARLY 2020: DEUTSCHE BANK

Reuters - Reuters (2019-07-15)

The Federal Reserve may launch a policy tool to lend to banks using Treasuries and other securities as collateral in early 2020, with possible testing to begin later this year, a Deutsche Bank strategist said.


HONG KONG PROTESTERS, POLICE CLASH AS DEMONSTRATIONS TARGET CHINESE TRADERS

Reuters - Reuters-video (2019-07-15)


CHINA’S GROWTH SLIDES TO WEAKEST PACE IN ALMOST THREE DECADES

Bloomberg - Bloomberg Video (2019-07-15)


DEALBOOK BRIEFING: A RATE CUT NOW LOOKS ALL BUT CERTAIN

NY Times - Erin Scott (2019-07-15)

Jay Powell, the Fed chairman, strongly signaled yesterday that the Fed could cut interest rates when it meets later this month, Jeanna Smialek and Matt Phillips of the NYT write.


WAVE OF HISPANIC BUYERS BOOSTS U.S. HOUSING MARKET

WSJ - Laura Kusisto, Ben Eisen (2019-07-15)

Hispanics are experiencing the largest homeownership gains of any ethnic group in the U.S., a turnaround for the population hardest hit by the housing bust that could help buoy the market for years.


EX-DESJARDINS PRESIDENT FALLS VICTIM TO IDENTITY THEFT FOLLOWING MAJOR DATA BREACH

Insurance Business - Lyle Adriano (2019-07-15)

Claude Béland, who served as president of Desjardins from 1987 to 2000, said that three companies had written to him saying that he owed them money. When he replied to tell them they had made a mistake, the three informed him that his social insurance number was on file – despite Béland never having done any business with them.


HOW LONG YOU MIGHT WAIT FOR INTEREST RATE HIKES

Canadian Underwriter - Greg Mechbach (2019-07-15)

The Bank of Canada announced Wednesday it is keeping the overnight interest rate at 1.75%. Although this is 1.25 percentage points higher than two years ago, it’s still lower than normal because the overnight rate was 4.5% in 2007 and more than 20% in the summer of 1981.


CANADIAN NON-BANK MORTGAGE LENDERS HELD OVER 34,000 OVERDUE MORTGAGES

Better Dwelling - Daniel Wong (2019-07-15)

Non-bank mortgage lenders are a big part of the Canadian real estate industry. In Q4 2018, non-bank mortgage lenders held over 1.7 million residential mortgages. The value of the mortgage debt held adds up to $325.5 billion at the end of the same quarter. These lenders sound unofficial, but they’re a huge segment of the country’s borrowing. The biggest difference from a consumer perspective is you have to get one of these from a mortgage broker vs a traditional bank. Being a non-deposit taking institutions, these lenders don’t usually have branches.


DEUTSCHE BANK’S GLOBAL PRIME FINANCE PLATFORM TO MOVE TO BNP PARIBAS

Bobsguide - Bobsguide (2019-07-15)

Deutsche Bank’s Global Prime Finance platform “allows clients to explore new markets and asset classes while improving traditional financing and trading techniques. It also serves as a foundation for providing multi-asset class financing, prime brokerage and clearing solutions.”


FACEBOOK SEEKS TO PLACATE LAWMAKERS OVER LIBRA BUT MNUCHIN RAISES "SERIOUS CONCERNS"

Finextra - Finextra (2019-07-15)

"A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System," reads the text.


STARLING CO-FOUNDER SAWYER FLIES THE ROOST

Finextra - Finextra (2019-07-15)

Sawyer's exit as COO after four years with the app-only bank comes amid a period of fast growth, with the British bank securing a £75 million investment in February and landing £100 million from the RBS bailout fund for its expansion into business banking.


LIFE AFTER AEROPLAN: BOARD BATTLE ERUPTS AT LOYALTY PLAN’S FORMER OWNER AIMIA

G&M - Tim Kiladze (2019-07-15)

A fight is brewing between some Aimia Inc. directors and its largest shareholder over who will determine the company’s future, nearly one year after it agreed to sell the Aeroplan loyalty program to a group led by Air Canada.


WORLD BANK ORDERS PAKISTAN TO PAY BARRICK GOLD JOINT VENTURE $5.8-BILLION IN DAMAGES

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.


DESJARDINS TO OFFER ALL MEMBERS FREE, LIFELONG PROTECTION AFTER DATA BREACH

CBC - CBC (2019-07-15)

Cormier said that they expected only a small portion of customers would actually complete the process of signing up with Equifax, leaving the majority of clients unprotected.That's why the group decided to bring in sweeping protections for everyone


IF YOU SEE STRANGE CHARGES FROM SPOTIFY ON YOUR BANK ACCOUNT, YOU AREN'T ALONE

CBC - Elizabeth McMillan (2019-07-15)

Parent, a graphic designer based in Toronto, is one of a number of Canadians who say they had money removed from their chequing accounts for the service to which they do not subscribe.


ALAN TURING, COMPUTER LEGEND PROSECUTED FOR BEING GAY, TO BE FACE OF NEW BRITISH BANKNOTE

LA Times - AP (2019-07-15)

Code-breaker and computing pioneer Alan Turing has been chosen as the face of Britain's new 50-pound note, the Bank of England announced Monday.


‘BUY AMERICA’ RULES PUSH BOMBARDIER TO UNITED STATES

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.


‘I HAVE NEVER SEEN THIS’: AIMIA SHAREHOLDERS CALL FOR NEW MEETING AFTER ‘OUTRAGEOUS CONDUCT’

G&M - Christopher Reynolds (2019-07-12)

A group of shareholders at Aimia Inc. are calling for a redo of last month’s annual general meeting, which they say was “plagued with irregularities” and “outrageous conduct.”


BITCOIN LOSSES DEEPEN AFTER FED CHIEF URGES HALT TO FACEBOOK’S CRYPTO PROJECT

G&M - Tom Wilson (2019-07-12)

Bitcoin dipped almost 8 per cent on Thursday, extending losses the day after U.S. Federal Reserve Chairman Jerome Powell called for a halt to Facebook’s Libra cryptocurrency project until concerns ranging from privacy to money-laundering were addressed.


DEUTSCHE BANK BOSS SAYS SCOLDED STAFF FOR SUIT FITTING AMID LAYOFFS

G&M - Reuters (2019-07-12)

Chief executive Christian Sewing personally called Deutsche Bank staff members to admonish them for having suit fittings at its London office on the same day that hundreds of their colleagues were fired, Handelsblatt quoted him as saying.


U.S. DEFICIT RISES 23% IN PAST YEAR AS SPENDING RISES

CBC - AP (2019-07-12)

Deficit to top $1 trillion US by end of fiscal year, Trump administration projects


FRANCE ADOPTS DIGITAL TAX ON TECH GIANTS LIKE GOOGLE, FACEBOOK

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.


RBC BECOMES FIRST MAJOR BANK TO PREDICT BANK OF ENGLAND WILL CUT RATES THIS YEAR

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.


THE SMARTEST GUY IN THE ROOM: HOW PENSION GURU WORKED HIS MAGIC, BEAT THE MARKET AND SAVED HOME CAPITAL

FP - Barbara Shecter (2019-07-12)

What Keohane took from Black Monday and its aftermath was a resolve to always conjure up a scenario where “the worst case plays out” and to visualize “what that looks like” for every investment.


TRUMP BLASTS BITCOIN, FACEBOOK'S LIBRA, DEMANDS THEY FACE BANKING REGULATIONS

Reuters - Reuters (2019-07-12)

“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” Trump wrote on Twitter.


WALL STREET BANKS BAILING ON TROUBLED U.S. FARM SECTOR

Reuters - P.J. Huffstutter, Jason Lange (2019-07-12)

In the wake of the U.S. housing meltdown of the late 2000s, JPMorgan Chase & Co hunted for new ways to expand its loan business beyond the troubled mortgage sector.


POT INVESTORS BRACE FOR WRITEDOWNS, NOT PROFITS, IN SECOND HALF

Bloomberg - Kristine Owram (2019-07-12)


DEALBOOK BRIEFING: A RATE CUT NOW LOOKS ALL BUT CERTAIN

NY Times - Jay Powell (2019-07-12)

The Fed chairman, strongly signaled yesterday that the Fed could cut interest rates later this month.


IS THIS THE END OF ANONYMOUS SHELL COMPANIES? NOT TOO FAST

NY Times - Peter J. Henning (2019-07-12)

The New York Times reported in 2015 that buyers of condominiums on the so-called billionaires row in Manhattan were using limited liability companies, known as L.L.C.s, to hide the identity of the properties’ owners. In 2016, “60 Minutes” captured lawyers on hidden camera offering to help move funds with questionable origins through a maze of shell companies.


U.K. REGULATOR IMPOSES RECORD FINE TOTAL AGAINST INDIVIDUALS

WSJ - Mengqi Sun (2019-07-12)

The U.K’s Financial Conduct Authority issued the largest total amount in fines against individuals during the 2019 fiscal year, the regulator said in its annual report published Tuesday.
The FCA imposed £80.2 million in fines against eight individuals during the fiscal year ending March 31, compared with about £900,000 in fines against 10 individuals during the previous year, according to the report. Overall, the FCA imposed about £227.3 million ($284 million) in fines last fiscal year, more than three times the total during the previous year.


TORONTO HOUSEHOLDS SEEKING CREDITOR PROTECTION RISES OVER 12%, MONTREAL NUMBERS FALL

Better Dwelling - Daniel Wong (2019-07-12)

Insolvencies are climbing across Greater Toronto. There were 3,885 insolvency filings in Q1 2019, up 12.45% from the same quarter last year. A breakdown shows 1,021 of the filings were for bankruptcy, down 4.67% from last year. The other 2,864 were consumer proposals, up a whopping 20.13% from last year. This was the biggest Q1 for Toronto since 2013. On the upside, there’s more consumer proposals than bankruptcies.


VANCOUVER DETACHED REAL ESTATE SALES FALL TO MULTI-DECADE LOW, LOSSES GET BIGGER

Better Dwelling - Kaitlin Last (2019-07-12)

Greater Vancouver detached real estate prices are falling, according to the benchmark price. REBGV reported a typical detached home hit $1,423,500 in June, down 10.9% from last year. In the City, Vancouver East prices fell to $1,350,100, down 12.1% from last year. In Vancouver West, the benchmark fell to $2,912,000, down 14% from last year. That last one is down a whopping $15,600 from just the month before.


CANNTRUST ALLEGEDLY USED FAKE WALLS TO HIDE POT FROM HEALTH CANADA

G&M - Mark Rendell (2019-07-11)

Between August, 2018 and March, the company admitted on Monday that federal lawmakers are under investigation of Wanon, Ontario-based cannabis producer after the cannabis was grown in the Canststream Canbrest in five disqualified rooms in the greenhouse in Panhum, Ontario. Advertised the NYT-listed stock of Cantstrom by 36 percent on Monday.


LIBERALS NOMINATE ANTI-PIPELINE ACTIVIST STEVEN GUILBEAULT TO TAKE MONTREAL NDP SEAT

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.


FED CHAIR RAISES ‘SERIOUS CONCERNS’ ABOUT FACEBOOK’S CRYPTOCURRENCY PROJECT

NY Times - Nathaniel Popper, Mike Isaac and Jeanna Smialek (2019-07-11)

Mr. Powell is the latest central banker to express skepticism about Libra, which Facebook announced last month. Central bankers from Britain, France, the European Central Bank, Singapore and China have all voiced concerns. Separately, just over a week ago, five top Democrats on the Financial Services Committee wrote a letter to the social network calling on it to “immediately cease implementation plans” for Libra until lawmaker questions were answered.


WALL STREET CLOSES NEAR NEW HIGHS ON FED CUT OPTIMISM

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.


CHINA’S ANBANG GETS REBRAND AFTER GOVERNMENT TAKEOVER

FT - Lucy Hornby and Archie Zhang (2019-07-11)

Anbang Insurance was once the poster child for China’s high-flying private financiers. But that era came to an end in a ceremony in Beijing on Thursday, when officials pulled down a bright red banner to unveil the company’s new name: Dajia Insurance, or “Everybody’s Insurance”.  Dajia’s official debut comes 18 months after Anbang’s takeover by the Chinese government, part of a broader deleveraging campaign that sought to root out systematic risks to the country’s financial system. Wu Xiaohui, Anbang’s founder, was sentence


SWISS RE SUSPENDS £3BN UK LIFE INSURANCE IPO

FT - Oliver Ralph (2019-07-11)

Swiss Re has pulled the £3bn flotation of ReAssure, its UK life insurance business, blaming weak investor demand. Trading in the shares had been due to start this week. 


AUSTRALIAN REGULATOR TELLS BANKS TO BOOST CAPITAL OVER GOVERNANCE RISKS

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.


CANADIAN HOUSING STARTS JUMP TO HIGHEST LEVEL SINCE 2007

Better Dwelling - Daniel Wong (2019-07-10)

Canada kicked off another multi-year record for housing starts last month. Canada Mortgage and Housing Corporation (CMHC) data shows a large increase for housing starts in June. The rise pushes new housing starts in large urban areas to the highest level in over a decade.


BANK OF CANADA IS LOOKING ROBUST ECONOMIC GROWTH PROJECTION BUCKING INTERNATIONAL TRENDS

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.


ONTARIO TEACHERS’ PENSION PLAN TAPS JO TAYLOR AS NEXT CEO AFTER RON MOCK RETIRES

G&M - David Milstead (2019-07-10)

The Ontario Teachers’ Pension Plan tapped its head of international investing to be its next leader, signalling that the $191-billion fund plans to expand its global portfolio.


WHY DOES INFLATION REMAIN SO LOW IN CANADA? NEW C.D. HOWE REPORT OFFERS POTENTIAL EXPLANATION

G&M - DAVID PARKINSON (2019-07-10)

Probably the most confounding puzzle of the post-financial-crisis economic recovery, in Canada and elsewhere, has been the persistent shortage of inflation. But there has been no shortage of attempts by economists to explain the phenomenon.


U.S. CONSUMER INFLATION OUTLOOK RISES FOR FIRST TIME IN 3 MONTHS: SURVEY

G&M - Reuters (2019-07-10)

U.S. consumers in June lifted their inflation expectations for the first time in three months, New York Fed data showed on Monday, reducing pressure on central bankers to cut rates significantly to support economic momentum.


VANCOUVER REAL ESTATE MARKET EXPERIENCES DRAMATIC DROP IN FOREIGN BUYING FOLLOWING TAX

G&M - Brent Jang (2019-07-10)

Foreign buying has dropped dramatically in the Vancouver region’s real estate market three years after British Columbia introduced a tax that targets international purchases, a policy move that has helped drive down prices.


PRIVACY WATCHDOGS LAUNCH INVESTIGATION OVER DESJARDINS PRIVACY BREACH

CBC - CP (2019-07-10)

The financial co-operative operates mainly in Quebec, where it is subject to provincial law, but falls under federal privacy rules for its activities elsewhere in Canada.


THERE ARE GOOD REASONS FOR TRUDEAU TO LOBBY FOR MARK CARNEY TO TAKE OVER AS HEAD OF THE IMF

FP - Kevin Carmichael (2019-07-10)

All this chatter about Mark Carney, son of Fort Smith, NWT., replacing Christine Lagarde as head of the International Monetary Fund and ending Europe’s reign atop that institution reminded me of some diplomatic trivia.


BONDS FALL, STOCKS SLIP AHEAD OF POWELL TESTIMONY: MARKETS WRAP

Bloomberg - Laura Curtis (2019-07-10)


WALMART GOT A $10 BILLION SURPRISE AFTER BUYING FLIPKART

Bloomberg - Saritha Rai (2019-07-10)

When Walmart Inc. paid $16 billion for control of India’s e-commerce pioneer Flipkart Online Services Pvt. last year, the American retail giant got a little-noticed digital payments subsidiary as part of the deal. Now the business is emerging as one of the country’s top startups, a surprise benefit for Walmart from its largest-ever acquisition.


WALMART GOT A $10 BILLION SURPRISE AFTER BUYING FLIPKART

Bloomberg - Saritha Rai (2019-07-10)

When Walmart Inc. paid $16 billion for control of India’s e-commerce pioneer Flipkart Online Services Pvt. last year, the American retail giant got a little-noticed digital payments subsidiary as part of the deal. Now the business is emerging as one of the country’s top startups, a surprise benefit for Walmart from its largest-ever acquisition.


FED, PRESSED BY TRUMP TO CUT RATES, FACES FIRE NO MATTER WHAT IT DOES

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.


EUROPE STOCKS EDGE DOWN AHEAD OF FED TESTIMONY

WSJ - Nathan Allen (2019-07-10)

European equities decline


DUTCH BANKS TOLD TO STOP USING PAYMENTS DATA FOR PERSONALISED MARKETING

Finextra - Finextra (2019-07-10)

Last month ING said that it planned to start using transaction data to send its customers more relevant email and text message offers.


RBC BUYS ACCOUNTS PAYABLE SPECIALIST WAYPAY

Finextra - Finextra (2019-07-10)

Burlington, Ontario-based WayPay connects to accounting platforms, helping companies reduce their payables pain points by improving the reconciliation and approvals process for time and cost savings.


LOCATION, LOCATION: HOME PRICES PROJECTED TO RISE IN EASTERN CANADA, SLUMP IN WEST

G&M - Janet McFarland (2019-07-10)

A new housing forecast shows a geographic divide in Canada’s real estate market, with home prices expected to decline across cities in Western Canada by the end of 2019, but show growth in major centres from Ontario eastward.


BANK OF CANADA LEAVES RATES ON HOLD AMID GLOBAL TRADE TENSIONS

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.


GROWING NUMBER OF LUXURY HOME SELLERS OPTING OUT OF MLS

G&M - Janet McFarland (2019-07-10)

A growing number of high-end home sellers in Toronto are opting not to list through the public listing system after a court ruling last year that opened up public access to sale price data, according to real estate firm Sotheby’s International Realty Canada.


FED STARTING TO SEE A CASE FOR RATE CUTS, POWELL HINTS

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.


'A BIG NUMBER': 550 BOMBARDIER WORKERS IN THUNDER BAY TO LOSE THEIR JOBS NOV. 4

CBC - CBC (2019-07-10)

The president of the union local representing Thunder Bay's Bombardier workers is calling on the provincial and federal governments to "get together soon" and help the local plant secure more contracts as the company announced it would lay off nearly half of its workforce in the city.


SUPERCHARGED LOONIE TAKES HIT AFTER BOC HOLDS RATE, BUT RECOVERS MOMENTUM — AND THEN SOME

FP - Victor Ferreirra (2019-07-10)

The loonie took a hit after the Bank of Canada struck a neutral tone and held its interest rate steady at 1.75 per cent, but recovered its momentum by late afternoon to trade above 76.5 cents to the U.S. dollar.


AFTER A TOUGH FIRST HALF, BAY STREET BETS ON LOW INTEREST RATES DRIVING MORE DEALS

FP - Julius Melnitzer (2019-07-10)

Bay Street’s top dealmakers blamed trade headwinds and prospects of higher interest rates for disappointing issuer activity in the first half of the year, but expect the outlook for the second half to be considerably brighter as at least one of the key concerns recedes into the background.


DOWN TO BUSINESS PODCAST: HOW OPEN BANKING COULD CHANGE OUR LIVES

FP - Geoff Zochodne (2019-07-10)

In episode 12 host Geoff Zochodne talks with Wealthsimple CEO and co-founder Michael Katchen about what open banking is, what it will do for consumers and how Canada risks falling behind in this global trend.


CIBC TO ACQUIRE CLEARY GULL

Insurance Journal - IIJ (2019-07-10)

CIBC announced on July 9 that it has entered an agreement to acquire Cleary Gull, a Milwaukee, Wisconsin-based boutique investment banking firm.


CRYPTOCURRENCY GIANT IN ALLEGED TIE-UP WITH GLOBAL BROKER AON

Insurance Business - Bethan Moorcraft (2019-07-10)

Cryptocurrency exchange Coinbase, which brokers crypto transactions in 190 countries worldwide, is allegedly in talks with global insurance brokerage Aon to set up its own regulated insurance company.


CANNABIS INSURANCE COVER REMAINS LIMITED 10 MONTHS AFTER LEGALIZATION

Insurance Business - Bethan Moorcraft (2019-07-10)

Canadian cannabis giant, Canopy Growth Corp., hit the headlines earlier this month after founder Bruce Linton was axed as chief executive officer with immediate effect on July 03. While the board at the world’s biggest cannabis firm has remained tight-lipped over the exact reasons for Linton’s firing, market analysts have pointed towards Canopy’s stinted profitability and failure to adequately boost share price.


PREMIER PROMISES TO TAKE PST OFF HOME INSURANCE

Canadian Underwriter - Adam Malik (2019-07-10)

Manitoba Premier Brian Pallister has pledged to drop provincial sales tax from home and renters’ insurance should he be re-elected in this fall’s election.


OPTIONAL BENEFITS PRIORITY RULING COULD CREATE “ADMINISTRATIVE NIGHTMARE” FOR AUTO INSURERS

Canadian Underwriter - David Gambrill (2019-07-10)

An insurance defence lawyer is warning of a potential “administrative nightmare” for insurers in light of a recent Court of Appeal for Ontario decision on priority disputes involving optional benefits.


POWELL TESTIMONY, FED MEETING HIGHLIGHT CASE FOR 'INSURANCE'

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


U.S. TO PROBE FRENCH PLAN TO TAX TECH COMPANIES

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.


INSURTECH GROWTH IN CANADA OPENS UP OPPORTUNITIES FOR INSURERS AND BROKERS

Insurance Business - Alicja Grzadkowska (2019-07-09)

A recent hackathon, “Hack IT,” was held in Thunder Bay at the end of March at Lakehead University’s student business incubator hub. Organized by the Northwestern Ontario Innovation Centre, Lakehead University, and local insurance brokerage Jones & Associates Insurance, the event also brought together industry partners, such as Gore Mutual, who provided guidance and insight to participants.


DESJARDINS MEMBERS PETITION TO RECEIVE NEW SOCIAL INSURANCE NUMBERS

Insurance Business - Lyle Adriano (2019-07-09)

Over 50,000 individuals have signed a petition asking Desjardins Group to issue them new social insurance numbers (SIN).


BC CITY RESIDENTS BAFFLED BY FLOOD BUYOUT PRICING

Insurance Business - Lyle Adriano (2019-07-09)

About a year after flooding devastated parts of the city of Grand Forks, BC, several affected residents have been shocked to learn that the buyout program will be based on their properties’ post-disaster values.


EX ZURICH CHIEF’S CAMP SPEAKS ON "SERIOUSNESS" OF DECISION TO RESIGN

Insurance Business - Terry Gancuangco (2019-07-09)

When Amanda Blanc’s short-lived stint with ZurichInsurance Group was revealed last week, no details as to what led to her resignation were provided. Now her camp has lifted the lid, albeit only partially.  


AVIVA RECEIVES REGULATORY NOD FOR BOARD RISK COMMITTEE CHAIRMANSHIP

Insurance Business - Terry Gancuangco (2019-07-09)

Aviva Plc independent non-executive director Belén Romana Garcia is now the chair of the board risk committee following regulatory approval.


HOW THE ECONOMY COULD SPELL TROUBLE FOR INSURANCE

Canadian Underwriter - Adam Malik (2019-07-09)

“When the economy is doing well, there’s an investment component that is embedded in an insurance operation,” Pinnock added, noting that increased revenue through investment means other costs can stay down. “A positively working economy helps in keeping premium costs down because it’s a revenue stream.”


POLOZ’S COMFORT LEVEL WITH STRONGER CANADIAN DOLLAR FACES A TEST

Bloomberg - Theophilos Aargitis (2019-07-09)


WALL STREET WEIGHS WILD-CARD RISK OF U.S. MOVE TO WEAKEN DOLLAR

Bloomberg - Katherine Greifield (2019-07-09)


ONTARIO LOSES OVER 5,000 REAL ESTATE JOBS, BC HITS NEW ALL-TIME HIGH

Better Dwelling - Daniel Wong (2019-07-09)

Canadian FIRE sector employment is virtually flat from the month before. FIRE seasonally adjusted employment fell to 1.193 million jobs in June, down 0.02% from the month before. This was the first monthly decline for June since 2014. The decline works out to 200 jobs, so not nearly as bad as May – when 2,300 jobs were lost. June’s movement was small, but some provinces were luckier than others


CANADIAN HOUSEHOLD DEBT HAD THE SLOWEST MAY GROWTH SINCE 1983

Better Dwelling - Daniel Wong (2019-07-09)

Canadians are a little more cautious about borrowing these days. Bank of Canada (BoC) numbers show household debt reached a new all-time high in May. Even though the balance is at a record high, the rate of growth is rapidly cooling. Canadian household debt grew at the slowest rate for May since 1983


CAUTIOUS TD MANAGER’S STOCK MOVES, REALITY CHECK FOR BMO PICKS AND THE WORST BOND ALTERNATIVE EVER: WHAT YOU NEED TO KNOW IN INVESTING THIS WEEK

G&M - S.R. Slobodian (2019-07-08)

A much-anticipated agreement by the United States and China to resume trade talks has not changed TD Asset Management portfolio manager Michael O’Brien’s cautious outlook on the markets, Brenda Bouw writes. “On the truly fundamental areas of disagreement between the U.S. and China, nothing has really changed. We don’t appear to be any closer to a solution” says Mr. O’Brien, , the lead manager of the $3.4-billion TD Canadian Equity Fund and co-manager of about $6-billion across various TD funds. He believes markets “will continue to be wary about the potential for further trade deterioration.” Over all, Mr. O’Brien believes the best of times have come and gone for the markets this year. Here is what he’s buying and selling as he builds more resiliency into his portfolio.


OSFI REPRIMANDED SCOTIABANK FOR UNSATISFACTORY RECORD-KEEPING IN PUERTO RICAN OPERATIONS

G&M - Rita Trichur (2019-07-08)

Canada’s banking regulator reprimanded Bank of Nova Scotia for inadequate record-keeping in its Puerto Rican operations, years before this country’s third-biggest bank decided to sell its 109-year-old subsidiary at a loss.


WHY MURRAY EDWARDS KEEPS INVESTING IN ALBERTA’S OIL SANDS

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.


WEWORK LOOKING TO RAISE UP TO $4 BILLION IN DEBT AHEAD OF IPO, SOURCE SATS

G&M - Joshua Franklin (2019-07-08)

Shared office space manager WeWork Cos is looking to raise $3 billion to $4 billion in debt before it goes public, a person familiar with the matter said on Sunday, a move aimed to fuel investor confidence in the company.


DEUTSCHE BANK CONFIRMS PLAN TO CUT 18,000 JOBS

BBC - BBC (2019-07-08)

Deutsche Bank said it will cut its global workforce to 74,000 by 2022 and that the restructure will cost €7.4bn over the next three years.


WHY CHRISTINE LAGARDE, A NON-ECONOMIST, IS IDEAL FOR THE WORLD’S MOST DEMANDING CENTRAL BANKER’S JOB

G&M - Eric Reguly (2019-07-08)

Christine Lagarde, managing director of the International Monetary Fund, was the long-shot candidate to replace Mario Draghi as the president of the European Central Bank. She had never been a banker, let alone a central banker. She is not an economist; she is a lawyer and a rather flamboyant politician who ran various French government ministries.


DESJARDINS AIDS MEMBERS WITH ACCESS TO PROTECTION SERVICE AFTER MASSIVE DATA BREACH

G&M - CP (2019-07-08)

Desjardins Group announced additional measures Friday to help its members who were victims of data theft and are having difficulty accessing Equifax’s protection service.


EXPECT BANK OF CANADA TO TAKE HEART FROM AN IMPROVING U.S. ECONOMIC CLIMATE: DON PITTIS

CBC - Don Pittis (2019-07-08)

In that case, this week Bank of Canada's Stephen Poloz may want to add gathering storm clouds to the "headwinds" he has used in the past, expanding on the meteorological euphemism of "crosscurrents" recently employed by his opposite number at the U.S. Fed.


US YIELD CURVE IS STILL INVERTED, STILL WORRYING INVESTORS

FT - Joe Rennison (2019-07-08)

One of the financial markets’ most reliable indicators of a coming recession is spooking investors again, ahead of a new reading on US employment that could determine whether the Federal Reserve cuts interest rates this month.


DEUTSCHE BANK DERIVATIVE DUMBNESS

FT - Jamie Powell (2019-07-08)

In financial markets, there's always a new reason to worry.


BANKS STEER CLEAR OF FACEBOOK'S LIBRA PROJECT

FT - FT (2019-07-08)

US and European banks are steering clear of Libra, Facebook's project for a new cryptocurrency, for fear of antagonising regulators and cannibalising their own digital currency projects


ACEBOOK FIGHTS BACK AGAINST LIBRA CRITICISM

FT - Jemima Kelly (2019-07-08)

While the initial mechanism by which organizations can run a node and become a member of the Libra Association, is definitely not as open as, say bitcoin, where anyone can participate in the consensus algorithm, the Libra Blockchain is absolutely designed to be openWhat this means is that no one needs to become a member to access the blockchain, and to build services like wallets, or merchant acceptance.

On decentralisation — we totally get the point — fungibility of nodes to ensure they can always be replaced over time is a fundamental principle of blockchains, and that’s why we’re committed to gradually transitioning to a permissionless state in the years to come. But it was important to start with trusted entities that could operate in a regulated environment and with the operational expertise required to ensure the integrity of the network in its foundational stage. I’d argue that one hundred geographically distributed, industry-diverse organizations is quite decentralised. Maybe not enough at equilibrium, but to start. As a comparison, often the concentration of power in the hands of those running software for mining pools on other blockchains is overlooked. But there’s no question that there are more decentralised blockchains available, and that the Libra Association must strive to gradually decentralise it further.


WHY STATCAN'S JOBS REPORT WAS GOOD DESPITE THE HEADLINE NUMBERS

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?


GLOBAL TURMOIL SENDS CANADIAN STOCK SALES TO LOWEST IN 16 YEARS

FP - Doug Alexander (2019-07-08)

Canada had its slowest start for stock sales in 16 years, as trade woes and global uncertainty kept companies on the sidelines.


DEUTSCHE BANK SCALES BACK AMBITIONS, ANNOUNCING JOB CUTS AND REORGANIZATION

NY Times - Jack Ewing (2019-07-08)

The bank that once symbolized German economic prowess is effectively abandoning hope of playing in the same league as Wall Street banks, and struggling to remain relevan


TRADE WAR MAY BE SLOWING BUSINESS SPENDING AND FACTORIES, FED SAYS

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.


GLOBAL STOCKS FALL AS PROSPECTS OF FED RATE CUT RECEDE

WSJ - oanne Chiu, Shen Hong and Paul J. Davies (2019-07-08)

U.S. stock futures followed Asian and European markets lower Monday amid investors’ doubts that the Federal Reserve would cut interest rates as much and as quickly as expected.


WALL STREET CHIEFS’ PAY DOESN’T SYNC WITH RETURNS

WSJ - Charlie McGee (2019-07-08)

Wall Street companies delivered significant losses to their shareholders last year, but the pain didn’t spread to the top. The chiefs of banking and financial institutions in the S&P 500 received a median raise of 8.5% last year, compared with 5.6% for CEOs in the broader index, according to a Wall Street Journal analysis.


INDIAN BANK DEFRAUDED BY ANOTHER BORROWER

WSJ - Krishna Pokharel (2019-07-08)

The Indian bank that fell victim to one of the country’s biggest banking scams said that another borrower had defrauded it of half a billion dollars.


EQUITABLE BANK LAUNCHES BMO PARTNERSHIP FOR CSV LINE OF CREDIT

Equitable - Press Release (2019-07-08)

"We are excited to be adding another reputable insurance provider to our CSV product suite," says Andrew Moor, President and Chief Executive Officer, Equitable Bank. "We look forward to working closely with advisors who are contracted with BMO Insurance to further build out our CSV lending product line, and to ensure that their clients' financial needs are being sufficiently met."


DEUTSCHE BANK CAREERS END IN AN ENVELOPE, A HUG AND A CAB RIDE

G&M - SUMEET CHATTERJEE AND NAVDEEP YADAV (2019-07-08)

Summoned by human resources to be handed a Deutsche Bank envelope, many of its staff across the world then left their desks for the last time on Monday, shown the door by their German employer within hours of a restructuring announcement.


BANK OF CANADA FACES A TRICKY HIGH-WIRE ACT THIS WEEK: STRIKE THE RIGHT TONE AND KEEP THE CANADIAN DOLLAR IN CHECK

G&M - Michael Babad (2019-07-08)

The central bank will have to revise its economic projections, boosting its forecast for a second quarter that's already over, while possibly taking a less optimistic view of the second half of the year and into 2020.


CANADA GAINS ITS FIRST ROBO-ADVISER PLATFORM GEARED TOWARD WOMEN

G&M - Clare O'Hara (2019-07-08)

After working for 23 years on Bay Street, former bank executive Tuula Jalasjaa is tackling financial literacy for female investors by launching the country’s first robo-adviser platform for women.


BOOMERS, ONCE CRITICAL OF MILLENNIALS, ARE MORE SYMPATHETIC TO THEIR HOUSING PLIGHT, SAYS PROFESSOR

CBC - Jason Vermes (2019-07-08)

Rebecca Goldstone calls herself a "1 per cent millennial." Thanks to financial support from her parents, she graduated in 2016 without debt and landed a full-time job in Toronto soon after.


CONSERVATIVES PUSH FOR EMERGENCY MEETING AFTER DESJARDINS PRIVACY BREACH

CBC - Catharine Tunney (2019-07-08)

"The federal government must put measures in place to ensure that this situation never happens again."


ERDOGAN FIRES TURKEY'S CENTRAL BANKER, CREATING JITTERS OVER CURRENCY

CBC - AP (2019-07-08)

Turkey's currency fell sharply on Monday, reawakening concerns of another bout of financial jitters in the country, after President Recep Tayyip Erdogan fired the central bank governor, reportedly over disagreements on interest rate cuts.


INTEREST RATE CUTS COULD ADD TO THE HEADWINDS ALREADY FACING CANADA'S BIG BANKS

FP - Geoff Zachodine (2019-07-08)

Canadian banks rode a wave of interest-rate hikes to higher profits in 2017 and 2018, in part because of gains in net interest income, generated by the spread between the higher rates they charge for loans and the lower rates they pay out on customer deposits.


WE'RE ALL ABOUT SUSTAINABILITY — EXCEPT WHEN IT COMES TO GOVERNMENT BORROWING

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.


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

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

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


AS BLOCKCHAIN HYPE SUBSIDES, BANKS COUNT THE COST OF EARLY EUPHORIA

Finextra - Finextra (2019-07-19)

Survey respondents on average expected a 24% return on investment on their early blockchain projects, but realised only a 10% return. Indeed, fully 59% of respondents said they had no confidence that the project would deliver a positive return on investment.


USE OF THE ADVANCED MEASUREMENT APPROACH FOR OPERATIONAL RISK CAPITAL

OSFI - OSFI (2019-07-19)

OSFI is revising its capital requirements for operational risk applicable to deposit-taking institutions (DTIs) considering the final Basel III revisions published by the Basel Committee on Banking Supervision (BCBS) in December 2017. Institutions currently approved to use the Advanced Measurement Approach (AMA) will be required to use a revised Basel III Standardized Approach when the revised requirements are implemented in Canada in Q1 2021.


POLICE ALLEGE MAFIA LAUNDERED $70-MILLION IN ONTARIO CASINOS, NINE ARRESTED

G&M - STEVE SCHERER AND ANGELO AMANT (2019-07-19)

Over three days, police raided 48 cafés, businesses and residences connected to the group, nabbing the alleged boss, Angelo Figliomeni, and eight other suspects on a raft of accusations, including money laundering, defrauding the government and participating in an organized-crime group.


B.C. POSTS $1.5-BILLION SURPLUS EVEN AS THE REAL ESTATE MARKET COOLS

G&M - CP (2019-07-19)

The British Columbia government ended its fiscal year in an operating surplus of $1.5-billion with the collection of more revenue from taxation and less money from a softening real estate market.


CANADA’S MORTGAGE STRESS TESTS JUST GOT A LITTLE EASIER

G&M - Matt Lundy (2019-07-19)

The interest rate used in Canada’s mortgage stress tests has fallen for the first time since 2016, making it slightly easier to become a homeowner.


WITH TAXES, YOU’RE GUILTY UNTIL PROVEN INNOCENT

G&M - Tim Cestnick (2019-07-19)

Did you know that, in Canada, paragraph 11(d) of our Charter of Rights and Freedoms ensures that we are “to be presumed innocent until proven guilty according to law in a fair and public hearing by an independent and impartial tribunal”? Good news, isn’t it? But wait. This Charter right doesn’t apply in the matter of taxes, where the opposite is true: You’re guilty until proven innocent.


BANKRUPTCY TRUSTEE LAUNCHES PROBE AS INVESTORS SEEK $7-MILLION

G&M - Janet McFarland (2019-07-19)

An Ontario bankruptcy trustee has launched an investigation after a developer failed to pay millions of dollars owed to investors who financed a housing development north of Toronto.


BANK OF ENGLAND’S MARK CARNEY APPEARS OUT OF THE RACE FOR IMF TOP JOB

G&M - JAN STRUPCZEWSKI AND LEIGH THOMAS (2019-07-19)

The governor of the Bank of England, Mark Carney, is unlikely to succeed Christine Lagarde as the boss of the International Monetary Fund, European officials said on Friday, as the European Union was considering four other names for the job.


SENIOR BANKER WITH JPMORGAN PLEADS NOT GUILTY TO BRIBERY CHARGES IN HONG KONG COURT

G&M - Felix Tam (2019-07-19)

JPMorgan’s former Asia investment banking vice-chair, Catherine Leung, pleaded not guilty to charges of bribery in a Hong Kong court on Thursday.


THE BANK OF CANADA NEEDS A PLAN FOR THE NEXT BIG RECESSION — AND THEY SHOULD SHARE IT

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.


MORGAN STANLEY REPORTS DROP IN PROFIT, BUT WEALTH MANAGEMENT GAINS

Reuters - Elizabeth Dilts, Matt Scuffham (2019-07-19)

It was the last big U.S. bank to report earnings in a quarter that exposed weaknesses in Wall Street’s investment bank and trading businesses. But Morgan Stanley executives downplayed the toll rate cuts could have on profitability and highlighted growth in the bank’s wealth management unit.


DANSKE BANK PROFIT HIT BY HIGHER COSTS, LOW INTEREST RATES

Reuters - Reuters (2019-07-19)

Second-quarter pre-tax profits fell to 4.76 billion Danish crowns ($716.6 million) from 5.49 billions the previous year, missing a mean forecast of 5.06 billion by analysts according to Refinitiv data.


NORDIC BANKS PINCHED BY ANTI-MONEY-LAUNDERING COMPLIANCE COSTS

WSJ - Kristin Broughton (2019-07-19)

Efforts to improve anti-money-laundering controls continue to weigh on the financial results of Nordic banks, which have faced allegations in recent months of moving dirty money.


U.K. AUDIT REGULATOR GETS A NEW LEADER AS BIGGER CHANGES LOOM

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.


WHAT CHRISTINE LAGARDE BRINGS TO THE ECB: FLEXIBILITY

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.”


GLOBAL EASING CYCLE GAINS MOMENTUM AS CENTRAL BANKS CUT RATES

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.


DIGITAL BANKING STARTUP OVERCOMES SETBACKS TO RAISE $170 MILLION

WSJ - Sara Germano (2019-07-19)

A digital bank with operations across Europe which recently launched in the U.S. has raised another $170 million in its latest funding round, pushing its valuation to $3.5 billion.


CANADIAN CITIES ARE NOW TOO EXPENSIVE FOR MINIMUM WAGE EMPLOYEES TO RENT

Better Dwelling - Daniel Wong (2019-07-19)

Canadian real estate insanity has officially spread to every corner of the country. The Canadian Centre for Policy Alternatives (CCPA) conducted a rental affordability study across Canada. The non-partisan organization found minimum wage employees can’t even afford to rent these days. Minimum wage earners can only afford to rent an average one-bedroom in 3 small cities – all in Quebec. Cities like Vancouver are so far out of whack, minimum wage employees need more than two jobs to afford a rental.


FOREIGN BUYERS OF US REAL ESTATE DROPS OVER 31%, FEWEST CHINESE BUYERS IN 10 YEARS

Better Dwelling - Better Dwelling (2019-07-19)

There’s a lot less foreign buyers of American real estate these days. Foreign buyers bought 183,100 homes this year, down 31.37% compared to the same period a year ago. Foreign buying of US real estate peaked in 2017, and the annual number of sales has fallen 35.64% from that peak. This is the fewest number of foreign buyers in the US in at least 10 years of data provided by NAR.


THE ERA OF HIGHER MORTGAGE RATES WAS SHORT-LIVED

G&M - Matt Lundy (2019-07-18)

For Canadians that bulked up on mortgage debt, a shift in lending conditions ensures that many households will avoid a nasty rate surprise that takes a bigger bite out of wallets.


‘ONE OF THE MOST PUZZLING’ ECONOMIC LANDSCAPES EVER: HOW A LOW-RATE WORLD IS BAFFLING INVESTORS AND CEOS ALIKE

G&M - Ian McGugan (2019-07-18)

In what a prominent chief executive calls “one of the most puzzling” economic landscapes he has ever seen, the unusual is quickly becoming the usual – and few things demonstrate that better than the expectations surrounding the U.S. Federal Reserve meeting at the end of this month.


LOWER GAS PRICES SLOW ANNUAL INFLATION RATE TO BANK OF CANADA’S 2% BULL’S-EYE

Canadian Business - Andy Blatchford (2019-07-18)

The annual inflation number for June hit the Bank of Canada’s ideal target as it came down from 2.4 per cent in May, Statistics Canada said Wednesday in a new report. It marked the first move lower after four straight months of a rise in the year-over-year change.


TD CUSTOMERS QUESTION HOW VISA DEBIT CHEQUING ACCOUNTS WERE COMPROMISED

CBC - Elizabeth McMillan (2019-07-18)

In 2015, she was shocked to find her TD bank account about $20,000 in overdraft while she was attending a friend's funeral. It turned out someone had been using her debit number at various American supermarkets from New Jersey to California. Her bank ended up freezing her account and she had to borrow money from her friend to get home to Fort Frances, Ont.


MANULIFE, PIMCO LOAD UP ON COLOMBIAN GOVERNMENT PESO BONDS

FP - Oscar Medina (2019-07-18)

Two of the world’s biggest asset managers loaded up on Colombian peso bonds in the last quarter as the government pledged to rein in deficits to defend the nation’s investment-grade credit rating.


SLOWEST LENDING GROWTH IN 25 YEARS REVEALS THE TRUE IMPACT OF MORTGAGE STRESS TESTS

FP - Murtaza Haider and Stephen Moranis (2019-07-18)

A report released Tuesday by the Canada Mortgage and Housing Corporation confirmed this assertion, finding that 2018 saw the slowest growth rate of outstanding mortgages in a quarter-century.


ALTERNATIVE LENDERS GAIN GROUND AS MORTGAGE ORIGINATIONS SLOW: CMHC

FP - Nicholas Sokic (2019-07-18)

Alternative mortgage lenders saw more business in 2018 even though overall mortgage originations declined, leading to the slowest year-over-year growth rate of outstanding mortgages in 25 years, according to the Canada Mortgage and Housing Corporation’s (CMHC) inaugural Residential Mortgage Industry Report.


SWEDES ARE GETTING IMPLANTS IN THEIR HANDS TO REPLACE CASH, CREDIT CARDS

NY Post - Lee Brown (2019-07-18)

More than 4,000 people have already had the sci-fi-ish chips, about the size of a grain of rice, inserted into their hands — with the pioneers predicting millions will soon join them as they hope to take it global.


AMF IMPOSES ADMINISTRATIVE PENALTIES ON MANULIFE AND FIRST NORTH AMERICAN INSURANCE

Insurance Journal - IIJ (2019-07-18)

The two insurers, over a 19-year period, offered a travel insurance product via Voyages Découvertes Senior inc. (Senior Discovery Tours) without providing a distribution guide to the regulator or to the distributor. Also, the AMF was not informed of the identity of this distributor, stated the regulator.


WILLIS TOWERS WATSON MAKES TRIPLE SWOOP FROM MARSH

Insurance Business - Lyle Adriano (2019-07-18)

All three appointees will be based in Toronto and will report to both WTW FINEX financial institutions global head Allison Barrett and WTW head of corporate risk and broking in Canada John Haas.


ONE-TWO PUNCH OF ALBERTA'S AUTO INSURANCE MARKET LAYS OUT INSUREDS

Insurance Business - Alicja Grzadkowska (2019-07-18)

The problems in Alberta’s auto insurance marketplace are two-fold, according to one broker. Not only are brokers unable to find coverage for certain risks, but those clients who do purchase auto insurance can have difficulties making payments on their premiums.


DANSKE BANK PROFIT HIT BY HIGHER COSTS, LOW INTEREST RATES

Reuters - Reuters (2019-07-18)

Danske Bank’s (DANSKE.CO) second-quarter pre-tax profit came in below expectations on Thursday, hit by low interest rates and higher costs associated with compliance following a money-laundering scandal at its Estonian branch.


BANK OF AMERICA TRIMS NET INTEREST INCOME GUIDANCE

Reuters - Imani Moise, Noor Zainab Hussain (2019-07-18)

Rate trends have prompted the bank to scale back its expected full-year net interest margin, a key measure of profitability, to 2% from 3%, executives said on a conference call with analysts.


FACEBOOK'S LIBRA GETS A GLOBAL SLAMMING

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.


LOONIE COULD COOL OFF, SAY ANALYSTS AT SOME TOP CANADIAN BANKS

Bloomberg - Alyce Andres (2019-07-18)


ONE OF THE WORLD’S MOST STUBBORN CENTRAL BANKS GIVES IN

Bloomberg - Shull Ren (2019-07-18)


G7 FINANCE MINISTERS LOOK TO REIN IN TECH GIANTS AT FRENCH MEETING

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.


WTO RULES AGAINST US IN TARIFF DISPUTE WITH CHINA

FT - Don Weinland (2019-07-17)

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APRA TO BE GIVEN NEW POWERS AFTER SCATHING REVIEW OF FINANCIAL WATCHDOG

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.


BIG BANKS CAN’T ESCAPE FROM THE FED SQUEEZE

Bloomberg - Brian Chappatta (2019-07-17)

On Monday, Citigroup Inc. disclosed a net interest margin that disappointed analysts, which raised doubts that JPMorgan Chase & Co. and Wells Fargo & Co. could meet expectations. That’s precisely what happened: JPMorgan, the largest U.S. bank, cut its full-year outlook for net interest income by $500 million. At Wells Fargo, which already lowered its net interest income guidance for the year in April, it fell 4% to $12.1 billion, below even the lowest estimate.


ONE BAD LEVERAGED LOAN ISN’T A LIQUIDITY SCARE

Bloomberg - Brian Chappatta (2019-07-17)

At first glance, it would seem the illiquidity boogeyman has made it to the other side of the Atlantic. What should be concerning to leveraged-loan investors is the rise of so-called enhanced CLOs, which are effectively a wager that more companies will go the way of Clover and get downgraded to the triple-C tier. These new funds are allowed to have up to half their portfolios in triple-C debt, while traditional CLOs are only permitted a fraction of that exposure. As my Bloomberg Opinion colleague Matt Levine quipped, “In finance, the way to enhance something is to make it worse.”


BUSINESS BANK BOOSTS START-UP FUNDING AS BREXIT LOOMS

FT - Daniel Thomas (2019-07-17)

The British Business Bank, the national development bank, ramped up funding for start-ups and smaller companies by more than a quarter to £6.6bn in 2018-19 as it prepares to help cover the withdrawal of EU money after Brexit.


TOP SHAREHOLDER FIRES BACK AT AIMIA IN BOARD BATTLE FOLLOWING AEROPLAN’S SALE

G&M - Tim Kiladze (2019-07-17)

Aimia Inc.’s largest shareholder is firing back at the loyalty-rewards company after two new directors were appointed, setting up a public clash between the New York-based fund and the company’s leadership.


HOUSING MARKET ‘HAS PASSED ITS CYCLICAL BOTTOM’: IF YOU’RE LOOKING TO BUY OR SELL, CHECK OUT THIS CITY-BY-CITY LOOK

G&M - Michael Babad (2019-07-17)

Economists believe Canada’s housing market has troughed, creating “almost dream conditions” for policy-makers who moved forcefully to head off a price and debt bomb.


LISTEN UP: BOFC DEPUTY GOVERNOR HAS AN IMPORTANT, IF ARCANE, TOPIC ON HER MIND AS RETIREMENT LOOMS

FP - Kevin Carmichael (2019-07-17)

Bank of Canada deputy governor Lynn Patterson is leaving the institution in a blaze of glory, at least by the standard she set for herself during six years of public service. Patterson’s announcement was that the Bank of Canada had decided it will take over administration of a revamped Canadian Overnight Repo Rate Average (CORRA) as soon as the second quarter of next year.


SPAIN'S BANCO SANTANDER EYEING CANADIAN BANKING LICENCE AS MORE EUROPEAN LENDERS CROSS THE POND

FP - Geoff Zochodne (2019-07-17)

An Alberta-based subsidiary of Spanish lender Banco Santander SA is seeking to obtain a Canadian banking licence after more than 20 years of helping finance consumer car purchases.


SCOTIABANK TURNS TO DOLLAR MARKET WITH ITS FIRST GREEN BOND

FP - Esteban Duarte (2019-07-16)

The Toronto-based lender is selling US$500 million of 3.5-year senior bail-in green bonds, according to people familiar with the transaction, scheduled to be sold later Monday. The notes are being initially marketed at a spread of around 75 basis points over the U.S. Treasury yield curve.


CHEAP MONEY SPARKS BORROWING BINGE THAT COULD END IN TEARS

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.


CHRISTINE LAGARDE MUST LEARN TO RUN AN ECONOMY THAT’S SLOWING TO A CRAWL

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.


WHY STOCKS ARE HITTING RECORDS AS ECONOMIC FEARS RISE: ‘THERE IS NO ALTERNATIVE’

NY Times - NY Times (2019-07-16)

That climb earned itself a nickname, the TINA market. It stands for There Is No Alternative, which simply means that because central banks around the world were holding rates so low, investors had little choice but to buy American stocks.


BAD LOANS IN EUROPE TUMBLE, BUT THEY ARE NEVER FULLY GONE

WSJ - Patricia Kowsmann, Margot Patrick (2019-07-16)

European banks have cleared nearly half of the toxic loans off their balance sheets since emerging from a debilitating debt crisis earlier this decade. The only trouble: A chunk of those loans haven’t fully gone away.


FACEBOOK CONFRONTS BIPARTISAN RESISTANCE TO CRYPTOCURRENCY PLANS

WSJ - Dave Michaels, Sam Schechner (2019-07-16)


CITIGROUP PROFIT BEATS ESTIMATES ON GAINS IN CONSUMER LENDING

Reuters - Imani Moise, Sweta Singh (2019-07-16)

Citigroup Inc topped expectations for quarterly profit on Monday as a tight lid on costs and strength in consumer lending helped the third-largest U.S. bank counter weakness in its trading business.


GOLDMAN BANKER HIGHLIGHTS MORGAN STANLEY'S HONG KONG IPO WOES

Reuters - Julie Zhu (2019-07-16)

A senior Goldman Sachs (GS.N) banker has highlighted to colleagues the role played by rival Morgan Stanley (MS.N) in failed Hong Kong IPOs following the collapse on Friday of Budweiser APAC’s $9.8 billion initial public offering, according to an internal email seen by Reuters.


BREXIT BE DAMNED: UK FINTECH SECTOR SEES RECORD GROWTH

Finextra - Finextra (2019-07-16)

UK fintech startups have reached a record level of $2.9 billion of funding in the first half of this year, across a total of 123 deals.


JPMORGAN CHASE POSTS $9.7 BILLION PROFIT, BEATING ESTIMATES

ABC - Ken Sweet (2019-07-16)

Banking giant JPMorgan Chase & Co. said Tuesday that its second quarter profits grew by 16% from a year ago, helped by lower taxes and the ability to charge businesses and consumers more to borrow money.


BANK OF CANADA TO TAKE CONTROL OF KEY INTEREST RATE BENCHMARK

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.


FACEBOOK SHOULDN’T BE TRUSTED WITH ‘DELUSIONAL’ CRYPTOCURRENCY PLAN, U.S. LAWMAKERS SAY

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.


BANK OF CANADA TO BUY BACK UP TO $500-MILLION IN BONDS

G&M - Reuters (2019-07-16)

The Bank of Canada said on Tuesday it plans to buy back up to $500 million from up to nine outstanding bonds in a cash management repurchase operation on July 23.


NON-BANK LENDERS ATTRACT WAVE OF MONEY, CMHC REPORT ON MORTGAGES SAYS

G&M - Janet McFarland (2019-07-16)

Mortgage Investment Corporations have provided billions of dollars in new lending to Canadian home buyers since 2016 as tougher mortgage qualification rules have driven far more business to private lenders, according to a new report from Canada’s national housing agency.


80¢ CANADIAN DOLLAR SUDDENLY WITHIN REACH, BANK SAYS

G&M - Michael Babad (2019-07-16)

A foreign bank believes we could soon see a Canadian dollar worth about 80 US cents.


GOLDMAN SACHS REVENUE RISES 16 PER CENT FROM HIGH INVESTING, LENDING BUSINESS

G&M - SWETA SINGH AND MATT SCUFFHAM (2019-07-16)

Goldman Sachs Group Inc reported a stronger-than-expected quarterly profit on Tuesday as the Wall Street investment bank benefited from increased stock trading.


FM GLOBAL REVEALS HUGE INVESTMENT IN INSURTECH RISKGENIUS

Insurance Business - Lyle Adriano (2019-07-16)

“As we look to the future and the evolving landscape of property insurance policy issuance, AI and machine learning offer FM Global great opportunities to enhance our clients’ experience,” commented FM Global senior vice-president of innovation Michael Lebovitz in a statement.


LORRI FREDERICK STEPS DOWN AS PRESIDENT OF CLAIMSPRO

Insurance Business - ClaimsPro (2019-07-16)

During her more than five years with ClaimsPro, the last three as President, Lorri has been instrumental in the organization’s continued industry leadership through delivering service excellence to clients, large and small. Her strong work ethic and her tireless efforts at building relationships with both clients and fellow employees has helped to grow ClaimsPro, as well as SCM, into what it is today.


THE BANK OF CANADA MISSED AN OPPORTUNITY TO RAISE RATES

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.


‘OUT-DOVISHED’: KEY CENTRAL BANK DECISIONS PROMISE TO MOVE MARKETS AMID HEIGHTENED UNCERTAINTY

G&M - Michael Babad (2019-07-15)

We're heading toward key central bank meetings that promise to move financial markets.


BITCOIN DROPS MORE THAN 10% AS SCRUTINY OF CRYPTOCURRENCIES GROWS

G&M - Tom Wilson (2019-07-15)

Bitcoin slumped more than 10 per cent over the weekend to a two-week low as fears of a crackdown of cryptocurrencies grew on mounting scrutiny of Facebook’s planned Libra digital coin.


SIGNS OF A LOOMING U.S. RECESSION ARE BUILDING, IF YOU LOOK BENEATH THE SURFACE

FP - David Rosenberg (2019-07-15)

I still hear “where’s the U.S. recession?” I keep responding with “you’re not scratching the surface.”


CANADIAN AND U.S. ECONOMIES ARE CONVERGING BUT DANGER LURKS: DON PITTIS

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.


U.S. FED SEEN LAUNCHING REPO FACILITY IN EARLY 2020: DEUTSCHE BANK

Reuters - Reuters (2019-07-15)

The Federal Reserve may launch a policy tool to lend to banks using Treasuries and other securities as collateral in early 2020, with possible testing to begin later this year, a Deutsche Bank strategist said.


HONG KONG PROTESTERS, POLICE CLASH AS DEMONSTRATIONS TARGET CHINESE TRADERS

Reuters - Reuters-video (2019-07-15)


CHINA’S GROWTH SLIDES TO WEAKEST PACE IN ALMOST THREE DECADES

Bloomberg - Bloomberg Video (2019-07-15)


DEALBOOK BRIEFING: A RATE CUT NOW LOOKS ALL BUT CERTAIN

NY Times - Erin Scott (2019-07-15)

Jay Powell, the Fed chairman, strongly signaled yesterday that the Fed could cut interest rates when it meets later this month, Jeanna Smialek and Matt Phillips of the NYT write.


WAVE OF HISPANIC BUYERS BOOSTS U.S. HOUSING MARKET

WSJ - Laura Kusisto, Ben Eisen (2019-07-15)

Hispanics are experiencing the largest homeownership gains of any ethnic group in the U.S., a turnaround for the population hardest hit by the housing bust that could help buoy the market for years.


EX-DESJARDINS PRESIDENT FALLS VICTIM TO IDENTITY THEFT FOLLOWING MAJOR DATA BREACH

Insurance Business - Lyle Adriano (2019-07-15)

Claude Béland, who served as president of Desjardins from 1987 to 2000, said that three companies had written to him saying that he owed them money. When he replied to tell them they had made a mistake, the three informed him that his social insurance number was on file – despite Béland never having done any business with them.


HOW LONG YOU MIGHT WAIT FOR INTEREST RATE HIKES

Canadian Underwriter - Greg Mechbach (2019-07-15)

The Bank of Canada announced Wednesday it is keeping the overnight interest rate at 1.75%. Although this is 1.25 percentage points higher than two years ago, it’s still lower than normal because the overnight rate was 4.5% in 2007 and more than 20% in the summer of 1981.


CANADIAN NON-BANK MORTGAGE LENDERS HELD OVER 34,000 OVERDUE MORTGAGES

Better Dwelling - Daniel Wong (2019-07-15)

Non-bank mortgage lenders are a big part of the Canadian real estate industry. In Q4 2018, non-bank mortgage lenders held over 1.7 million residential mortgages. The value of the mortgage debt held adds up to $325.5 billion at the end of the same quarter. These lenders sound unofficial, but they’re a huge segment of the country’s borrowing. The biggest difference from a consumer perspective is you have to get one of these from a mortgage broker vs a traditional bank. Being a non-deposit taking institutions, these lenders don’t usually have branches.


DEUTSCHE BANK’S GLOBAL PRIME FINANCE PLATFORM TO MOVE TO BNP PARIBAS

Bobsguide - Bobsguide (2019-07-15)

Deutsche Bank’s Global Prime Finance platform “allows clients to explore new markets and asset classes while improving traditional financing and trading techniques. It also serves as a foundation for providing multi-asset class financing, prime brokerage and clearing solutions.”


FACEBOOK SEEKS TO PLACATE LAWMAKERS OVER LIBRA BUT MNUCHIN RAISES "SERIOUS CONCERNS"

Finextra - Finextra (2019-07-15)

"A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System," reads the text.


STARLING CO-FOUNDER SAWYER FLIES THE ROOST

Finextra - Finextra (2019-07-15)

Sawyer's exit as COO after four years with the app-only bank comes amid a period of fast growth, with the British bank securing a £75 million investment in February and landing £100 million from the RBS bailout fund for its expansion into business banking.


LIFE AFTER AEROPLAN: BOARD BATTLE ERUPTS AT LOYALTY PLAN’S FORMER OWNER AIMIA

G&M - Tim Kiladze (2019-07-15)

A fight is brewing between some Aimia Inc. directors and its largest shareholder over who will determine the company’s future, nearly one year after it agreed to sell the Aeroplan loyalty program to a group led by Air Canada.


WORLD BANK ORDERS PAKISTAN TO PAY BARRICK GOLD JOINT VENTURE $5.8-BILLION IN DAMAGES

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.


DESJARDINS TO OFFER ALL MEMBERS FREE, LIFELONG PROTECTION AFTER DATA BREACH

CBC - CBC (2019-07-15)

Cormier said that they expected only a small portion of customers would actually complete the process of signing up with Equifax, leaving the majority of clients unprotected.That's why the group decided to bring in sweeping protections for everyone


IF YOU SEE STRANGE CHARGES FROM SPOTIFY ON YOUR BANK ACCOUNT, YOU AREN'T ALONE

CBC - Elizabeth McMillan (2019-07-15)

Parent, a graphic designer based in Toronto, is one of a number of Canadians who say they had money removed from their chequing accounts for the service to which they do not subscribe.


ALAN TURING, COMPUTER LEGEND PROSECUTED FOR BEING GAY, TO BE FACE OF NEW BRITISH BANKNOTE

LA Times - AP (2019-07-15)

Code-breaker and computing pioneer Alan Turing has been chosen as the face of Britain's new 50-pound note, the Bank of England announced Monday.


‘BUY AMERICA’ RULES PUSH BOMBARDIER TO UNITED STATES

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.


‘I HAVE NEVER SEEN THIS’: AIMIA SHAREHOLDERS CALL FOR NEW MEETING AFTER ‘OUTRAGEOUS CONDUCT’

G&M - Christopher Reynolds (2019-07-12)

A group of shareholders at Aimia Inc. are calling for a redo of last month’s annual general meeting, which they say was “plagued with irregularities” and “outrageous conduct.”


BITCOIN LOSSES DEEPEN AFTER FED CHIEF URGES HALT TO FACEBOOK’S CRYPTO PROJECT

G&M - Tom Wilson (2019-07-12)

Bitcoin dipped almost 8 per cent on Thursday, extending losses the day after U.S. Federal Reserve Chairman Jerome Powell called for a halt to Facebook’s Libra cryptocurrency project until concerns ranging from privacy to money-laundering were addressed.


DEUTSCHE BANK BOSS SAYS SCOLDED STAFF FOR SUIT FITTING AMID LAYOFFS

G&M - Reuters (2019-07-12)

Chief executive Christian Sewing personally called Deutsche Bank staff members to admonish them for having suit fittings at its London office on the same day that hundreds of their colleagues were fired, Handelsblatt quoted him as saying.


U.S. DEFICIT RISES 23% IN PAST YEAR AS SPENDING RISES

CBC - AP (2019-07-12)

Deficit to top $1 trillion US by end of fiscal year, Trump administration projects


FRANCE ADOPTS DIGITAL TAX ON TECH GIANTS LIKE GOOGLE, FACEBOOK

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.


RBC BECOMES FIRST MAJOR BANK TO PREDICT BANK OF ENGLAND WILL CUT RATES THIS YEAR

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.


THE SMARTEST GUY IN THE ROOM: HOW PENSION GURU WORKED HIS MAGIC, BEAT THE MARKET AND SAVED HOME CAPITAL

FP - Barbara Shecter (2019-07-12)

What Keohane took from Black Monday and its aftermath was a resolve to always conjure up a scenario where “the worst case plays out” and to visualize “what that looks like” for every investment.


TRUMP BLASTS BITCOIN, FACEBOOK'S LIBRA, DEMANDS THEY FACE BANKING REGULATIONS

Reuters - Reuters (2019-07-12)

“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” Trump wrote on Twitter.


WALL STREET BANKS BAILING ON TROUBLED U.S. FARM SECTOR

Reuters - P.J. Huffstutter, Jason Lange (2019-07-12)

In the wake of the U.S. housing meltdown of the late 2000s, JPMorgan Chase & Co hunted for new ways to expand its loan business beyond the troubled mortgage sector.


POT INVESTORS BRACE FOR WRITEDOWNS, NOT PROFITS, IN SECOND HALF

Bloomberg - Kristine Owram (2019-07-12)


DEALBOOK BRIEFING: A RATE CUT NOW LOOKS ALL BUT CERTAIN

NY Times - Jay Powell (2019-07-12)

The Fed chairman, strongly signaled yesterday that the Fed could cut interest rates later this month.


IS THIS THE END OF ANONYMOUS SHELL COMPANIES? NOT TOO FAST

NY Times - Peter J. Henning (2019-07-12)

The New York Times reported in 2015 that buyers of condominiums on the so-called billionaires row in Manhattan were using limited liability companies, known as L.L.C.s, to hide the identity of the properties’ owners. In 2016, “60 Minutes” captured lawyers on hidden camera offering to help move funds with questionable origins through a maze of shell companies.


U.K. REGULATOR IMPOSES RECORD FINE TOTAL AGAINST INDIVIDUALS

WSJ - Mengqi Sun (2019-07-12)

The U.K’s Financial Conduct Authority issued the largest total amount in fines against individuals during the 2019 fiscal year, the regulator said in its annual report published Tuesday.
The FCA imposed £80.2 million in fines against eight individuals during the fiscal year ending March 31, compared with about £900,000 in fines against 10 individuals during the previous year, according to the report. Overall, the FCA imposed about £227.3 million ($284 million) in fines last fiscal year, more than three times the total during the previous year.


TORONTO HOUSEHOLDS SEEKING CREDITOR PROTECTION RISES OVER 12%, MONTREAL NUMBERS FALL

Better Dwelling - Daniel Wong (2019-07-12)

Insolvencies are climbing across Greater Toronto. There were 3,885 insolvency filings in Q1 2019, up 12.45% from the same quarter last year. A breakdown shows 1,021 of the filings were for bankruptcy, down 4.67% from last year. The other 2,864 were consumer proposals, up a whopping 20.13% from last year. This was the biggest Q1 for Toronto since 2013. On the upside, there’s more consumer proposals than bankruptcies.


VANCOUVER DETACHED REAL ESTATE SALES FALL TO MULTI-DECADE LOW, LOSSES GET BIGGER

Better Dwelling - Kaitlin Last (2019-07-12)

Greater Vancouver detached real estate prices are falling, according to the benchmark price. REBGV reported a typical detached home hit $1,423,500 in June, down 10.9% from last year. In the City, Vancouver East prices fell to $1,350,100, down 12.1% from last year. In Vancouver West, the benchmark fell to $2,912,000, down 14% from last year. That last one is down a whopping $15,600 from just the month before.


CANNTRUST ALLEGEDLY USED FAKE WALLS TO HIDE POT FROM HEALTH CANADA

G&M - Mark Rendell (2019-07-11)

Between August, 2018 and March, the company admitted on Monday that federal lawmakers are under investigation of Wanon, Ontario-based cannabis producer after the cannabis was grown in the Canststream Canbrest in five disqualified rooms in the greenhouse in Panhum, Ontario. Advertised the NYT-listed stock of Cantstrom by 36 percent on Monday.


LIBERALS NOMINATE ANTI-PIPELINE ACTIVIST STEVEN GUILBEAULT TO TAKE MONTREAL NDP SEAT

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.


FED CHAIR RAISES ‘SERIOUS CONCERNS’ ABOUT FACEBOOK’S CRYPTOCURRENCY PROJECT

NY Times - Nathaniel Popper, Mike Isaac and Jeanna Smialek (2019-07-11)

Mr. Powell is the latest central banker to express skepticism about Libra, which Facebook announced last month. Central bankers from Britain, France, the European Central Bank, Singapore and China have all voiced concerns. Separately, just over a week ago, five top Democrats on the Financial Services Committee wrote a letter to the social network calling on it to “immediately cease implementation plans” for Libra until lawmaker questions were answered.


WALL STREET CLOSES NEAR NEW HIGHS ON FED CUT OPTIMISM

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.


CHINA’S ANBANG GETS REBRAND AFTER GOVERNMENT TAKEOVER

FT - Lucy Hornby and Archie Zhang (2019-07-11)

Anbang Insurance was once the poster child for China’s high-flying private financiers. But that era came to an end in a ceremony in Beijing on Thursday, when officials pulled down a bright red banner to unveil the company’s new name: Dajia Insurance, or “Everybody’s Insurance”.  Dajia’s official debut comes 18 months after Anbang’s takeover by the Chinese government, part of a broader deleveraging campaign that sought to root out systematic risks to the country’s financial system. Wu Xiaohui, Anbang’s founder, was sentence


SWISS RE SUSPENDS £3BN UK LIFE INSURANCE IPO

FT - Oliver Ralph (2019-07-11)

Swiss Re has pulled the £3bn flotation of ReAssure, its UK life insurance business, blaming weak investor demand. Trading in the shares had been due to start this week. 


AUSTRALIAN REGULATOR TELLS BANKS TO BOOST CAPITAL OVER GOVERNANCE RISKS

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.


CANADIAN HOUSING STARTS JUMP TO HIGHEST LEVEL SINCE 2007

Better Dwelling - Daniel Wong (2019-07-10)

Canada kicked off another multi-year record for housing starts last month. Canada Mortgage and Housing Corporation (CMHC) data shows a large increase for housing starts in June. The rise pushes new housing starts in large urban areas to the highest level in over a decade.


BANK OF CANADA IS LOOKING ROBUST ECONOMIC GROWTH PROJECTION BUCKING INTERNATIONAL TRENDS

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.


ONTARIO TEACHERS’ PENSION PLAN TAPS JO TAYLOR AS NEXT CEO AFTER RON MOCK RETIRES

G&M - David Milstead (2019-07-10)

The Ontario Teachers’ Pension Plan tapped its head of international investing to be its next leader, signalling that the $191-billion fund plans to expand its global portfolio.


WHY DOES INFLATION REMAIN SO LOW IN CANADA? NEW C.D. HOWE REPORT OFFERS POTENTIAL EXPLANATION

G&M - DAVID PARKINSON (2019-07-10)

Probably the most confounding puzzle of the post-financial-crisis economic recovery, in Canada and elsewhere, has been the persistent shortage of inflation. But there has been no shortage of attempts by economists to explain the phenomenon.


U.S. CONSUMER INFLATION OUTLOOK RISES FOR FIRST TIME IN 3 MONTHS: SURVEY

G&M - Reuters (2019-07-10)

U.S. consumers in June lifted their inflation expectations for the first time in three months, New York Fed data showed on Monday, reducing pressure on central bankers to cut rates significantly to support economic momentum.


VANCOUVER REAL ESTATE MARKET EXPERIENCES DRAMATIC DROP IN FOREIGN BUYING FOLLOWING TAX

G&M - Brent Jang (2019-07-10)

Foreign buying has dropped dramatically in the Vancouver region’s real estate market three years after British Columbia introduced a tax that targets international purchases, a policy move that has helped drive down prices.


PRIVACY WATCHDOGS LAUNCH INVESTIGATION OVER DESJARDINS PRIVACY BREACH

CBC - CP (2019-07-10)

The financial co-operative operates mainly in Quebec, where it is subject to provincial law, but falls under federal privacy rules for its activities elsewhere in Canada.


THERE ARE GOOD REASONS FOR TRUDEAU TO LOBBY FOR MARK CARNEY TO TAKE OVER AS HEAD OF THE IMF

FP - Kevin Carmichael (2019-07-10)

All this chatter about Mark Carney, son of Fort Smith, NWT., replacing Christine Lagarde as head of the International Monetary Fund and ending Europe’s reign atop that institution reminded me of some diplomatic trivia.


BONDS FALL, STOCKS SLIP AHEAD OF POWELL TESTIMONY: MARKETS WRAP

Bloomberg - Laura Curtis (2019-07-10)


WALMART GOT A $10 BILLION SURPRISE AFTER BUYING FLIPKART

Bloomberg - Saritha Rai (2019-07-10)

When Walmart Inc. paid $16 billion for control of India’s e-commerce pioneer Flipkart Online Services Pvt. last year, the American retail giant got a little-noticed digital payments subsidiary as part of the deal. Now the business is emerging as one of the country’s top startups, a surprise benefit for Walmart from its largest-ever acquisition.


WALMART GOT A $10 BILLION SURPRISE AFTER BUYING FLIPKART

Bloomberg - Saritha Rai (2019-07-10)

When Walmart Inc. paid $16 billion for control of India’s e-commerce pioneer Flipkart Online Services Pvt. last year, the American retail giant got a little-noticed digital payments subsidiary as part of the deal. Now the business is emerging as one of the country’s top startups, a surprise benefit for Walmart from its largest-ever acquisition.


FED, PRESSED BY TRUMP TO CUT RATES, FACES FIRE NO MATTER WHAT IT DOES

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.


EUROPE STOCKS EDGE DOWN AHEAD OF FED TESTIMONY

WSJ - Nathan Allen (2019-07-10)

European equities decline


DUTCH BANKS TOLD TO STOP USING PAYMENTS DATA FOR PERSONALISED MARKETING

Finextra - Finextra (2019-07-10)

Last month ING said that it planned to start using transaction data to send its customers more relevant email and text message offers.


RBC BUYS ACCOUNTS PAYABLE SPECIALIST WAYPAY

Finextra - Finextra (2019-07-10)

Burlington, Ontario-based WayPay connects to accounting platforms, helping companies reduce their payables pain points by improving the reconciliation and approvals process for time and cost savings.


LOCATION, LOCATION: HOME PRICES PROJECTED TO RISE IN EASTERN CANADA, SLUMP IN WEST

G&M - Janet McFarland (2019-07-10)

A new housing forecast shows a geographic divide in Canada’s real estate market, with home prices expected to decline across cities in Western Canada by the end of 2019, but show growth in major centres from Ontario eastward.


BANK OF CANADA LEAVES RATES ON HOLD AMID GLOBAL TRADE TENSIONS

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.


GROWING NUMBER OF LUXURY HOME SELLERS OPTING OUT OF MLS

G&M - Janet McFarland (2019-07-10)

A growing number of high-end home sellers in Toronto are opting not to list through the public listing system after a court ruling last year that opened up public access to sale price data, according to real estate firm Sotheby’s International Realty Canada.


FED STARTING TO SEE A CASE FOR RATE CUTS, POWELL HINTS

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.


'A BIG NUMBER': 550 BOMBARDIER WORKERS IN THUNDER BAY TO LOSE THEIR JOBS NOV. 4

CBC - CBC (2019-07-10)

The president of the union local representing Thunder Bay's Bombardier workers is calling on the provincial and federal governments to "get together soon" and help the local plant secure more contracts as the company announced it would lay off nearly half of its workforce in the city.


SUPERCHARGED LOONIE TAKES HIT AFTER BOC HOLDS RATE, BUT RECOVERS MOMENTUM — AND THEN SOME

FP - Victor Ferreirra (2019-07-10)

The loonie took a hit after the Bank of Canada struck a neutral tone and held its interest rate steady at 1.75 per cent, but recovered its momentum by late afternoon to trade above 76.5 cents to the U.S. dollar.


AFTER A TOUGH FIRST HALF, BAY STREET BETS ON LOW INTEREST RATES DRIVING MORE DEALS

FP - Julius Melnitzer (2019-07-10)

Bay Street’s top dealmakers blamed trade headwinds and prospects of higher interest rates for disappointing issuer activity in the first half of the year, but expect the outlook for the second half to be considerably brighter as at least one of the key concerns recedes into the background.


DOWN TO BUSINESS PODCAST: HOW OPEN BANKING COULD CHANGE OUR LIVES

FP - Geoff Zochodne (2019-07-10)

In episode 12 host Geoff Zochodne talks with Wealthsimple CEO and co-founder Michael Katchen about what open banking is, what it will do for consumers and how Canada risks falling behind in this global trend.


CIBC TO ACQUIRE CLEARY GULL

Insurance Journal - IIJ (2019-07-10)

CIBC announced on July 9 that it has entered an agreement to acquire Cleary Gull, a Milwaukee, Wisconsin-based boutique investment banking firm.


CRYPTOCURRENCY GIANT IN ALLEGED TIE-UP WITH GLOBAL BROKER AON

Insurance Business - Bethan Moorcraft (2019-07-10)

Cryptocurrency exchange Coinbase, which brokers crypto transactions in 190 countries worldwide, is allegedly in talks with global insurance brokerage Aon to set up its own regulated insurance company.


CANNABIS INSURANCE COVER REMAINS LIMITED 10 MONTHS AFTER LEGALIZATION

Insurance Business - Bethan Moorcraft (2019-07-10)

Canadian cannabis giant, Canopy Growth Corp., hit the headlines earlier this month after founder Bruce Linton was axed as chief executive officer with immediate effect on July 03. While the board at the world’s biggest cannabis firm has remained tight-lipped over the exact reasons for Linton’s firing, market analysts have pointed towards Canopy’s stinted profitability and failure to adequately boost share price.


PREMIER PROMISES TO TAKE PST OFF HOME INSURANCE

Canadian Underwriter - Adam Malik (2019-07-10)

Manitoba Premier Brian Pallister has pledged to drop provincial sales tax from home and renters’ insurance should he be re-elected in this fall’s election.


OPTIONAL BENEFITS PRIORITY RULING COULD CREATE “ADMINISTRATIVE NIGHTMARE” FOR AUTO INSURERS

Canadian Underwriter - David Gambrill (2019-07-10)

An insurance defence lawyer is warning of a potential “administrative nightmare” for insurers in light of a recent Court of Appeal for Ontario decision on priority disputes involving optional benefits.


POWELL TESTIMONY, FED MEETING HIGHLIGHT CASE FOR 'INSURANCE'

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


U.S. TO PROBE FRENCH PLAN TO TAX TECH COMPANIES

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.


INSURTECH GROWTH IN CANADA OPENS UP OPPORTUNITIES FOR INSURERS AND BROKERS

Insurance Business - Alicja Grzadkowska (2019-07-09)

A recent hackathon, “Hack IT,” was held in Thunder Bay at the end of March at Lakehead University’s student business incubator hub. Organized by the Northwestern Ontario Innovation Centre, Lakehead University, and local insurance brokerage Jones & Associates Insurance, the event also brought together industry partners, such as Gore Mutual, who provided guidance and insight to participants.


DESJARDINS MEMBERS PETITION TO RECEIVE NEW SOCIAL INSURANCE NUMBERS

Insurance Business - Lyle Adriano (2019-07-09)

Over 50,000 individuals have signed a petition asking Desjardins Group to issue them new social insurance numbers (SIN).


BC CITY RESIDENTS BAFFLED BY FLOOD BUYOUT PRICING

Insurance Business - Lyle Adriano (2019-07-09)

About a year after flooding devastated parts of the city of Grand Forks, BC, several affected residents have been shocked to learn that the buyout program will be based on their properties’ post-disaster values.


EX ZURICH CHIEF’S CAMP SPEAKS ON "SERIOUSNESS" OF DECISION TO RESIGN

Insurance Business - Terry Gancuangco (2019-07-09)

When Amanda Blanc’s short-lived stint with ZurichInsurance Group was revealed last week, no details as to what led to her resignation were provided. Now her camp has lifted the lid, albeit only partially.  


AVIVA RECEIVES REGULATORY NOD FOR BOARD RISK COMMITTEE CHAIRMANSHIP

Insurance Business - Terry Gancuangco (2019-07-09)

Aviva Plc independent non-executive director Belén Romana Garcia is now the chair of the board risk committee following regulatory approval.


HOW THE ECONOMY COULD SPELL TROUBLE FOR INSURANCE

Canadian Underwriter - Adam Malik (2019-07-09)

“When the economy is doing well, there’s an investment component that is embedded in an insurance operation,” Pinnock added, noting that increased revenue through investment means other costs can stay down. “A positively working economy helps in keeping premium costs down because it’s a revenue stream.”


POLOZ’S COMFORT LEVEL WITH STRONGER CANADIAN DOLLAR FACES A TEST

Bloomberg - Theophilos Aargitis (2019-07-09)


WALL STREET WEIGHS WILD-CARD RISK OF U.S. MOVE TO WEAKEN DOLLAR

Bloomberg - Katherine Greifield (2019-07-09)


ONTARIO LOSES OVER 5,000 REAL ESTATE JOBS, BC HITS NEW ALL-TIME HIGH

Better Dwelling - Daniel Wong (2019-07-09)

Canadian FIRE sector employment is virtually flat from the month before. FIRE seasonally adjusted employment fell to 1.193 million jobs in June, down 0.02% from the month before. This was the first monthly decline for June since 2014. The decline works out to 200 jobs, so not nearly as bad as May – when 2,300 jobs were lost. June’s movement was small, but some provinces were luckier than others


CANADIAN HOUSEHOLD DEBT HAD THE SLOWEST MAY GROWTH SINCE 1983

Better Dwelling - Daniel Wong (2019-07-09)

Canadians are a little more cautious about borrowing these days. Bank of Canada (BoC) numbers show household debt reached a new all-time high in May. Even though the balance is at a record high, the rate of growth is rapidly cooling. Canadian household debt grew at the slowest rate for May since 1983


CAUTIOUS TD MANAGER’S STOCK MOVES, REALITY CHECK FOR BMO PICKS AND THE WORST BOND ALTERNATIVE EVER: WHAT YOU NEED TO KNOW IN INVESTING THIS WEEK

G&M - S.R. Slobodian (2019-07-08)

A much-anticipated agreement by the United States and China to resume trade talks has not changed TD Asset Management portfolio manager Michael O’Brien’s cautious outlook on the markets, Brenda Bouw writes. “On the truly fundamental areas of disagreement between the U.S. and China, nothing has really changed. We don’t appear to be any closer to a solution” says Mr. O’Brien, , the lead manager of the $3.4-billion TD Canadian Equity Fund and co-manager of about $6-billion across various TD funds. He believes markets “will continue to be wary about the potential for further trade deterioration.” Over all, Mr. O’Brien believes the best of times have come and gone for the markets this year. Here is what he’s buying and selling as he builds more resiliency into his portfolio.


OSFI REPRIMANDED SCOTIABANK FOR UNSATISFACTORY RECORD-KEEPING IN PUERTO RICAN OPERATIONS

G&M - Rita Trichur (2019-07-08)

Canada’s banking regulator reprimanded Bank of Nova Scotia for inadequate record-keeping in its Puerto Rican operations, years before this country’s third-biggest bank decided to sell its 109-year-old subsidiary at a loss.


WHY MURRAY EDWARDS KEEPS INVESTING IN ALBERTA’S OIL SANDS

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.


WEWORK LOOKING TO RAISE UP TO $4 BILLION IN DEBT AHEAD OF IPO, SOURCE SATS

G&M - Joshua Franklin (2019-07-08)

Shared office space manager WeWork Cos is looking to raise $3 billion to $4 billion in debt before it goes public, a person familiar with the matter said on Sunday, a move aimed to fuel investor confidence in the company.


DEUTSCHE BANK CONFIRMS PLAN TO CUT 18,000 JOBS

BBC - BBC (2019-07-08)

Deutsche Bank said it will cut its global workforce to 74,000 by 2022 and that the restructure will cost €7.4bn over the next three years.


WHY CHRISTINE LAGARDE, A NON-ECONOMIST, IS IDEAL FOR THE WORLD’S MOST DEMANDING CENTRAL BANKER’S JOB

G&M - Eric Reguly (2019-07-08)

Christine Lagarde, managing director of the International Monetary Fund, was the long-shot candidate to replace Mario Draghi as the president of the European Central Bank. She had never been a banker, let alone a central banker. She is not an economist; she is a lawyer and a rather flamboyant politician who ran various French government ministries.


DESJARDINS AIDS MEMBERS WITH ACCESS TO PROTECTION SERVICE AFTER MASSIVE DATA BREACH

G&M - CP (2019-07-08)

Desjardins Group announced additional measures Friday to help its members who were victims of data theft and are having difficulty accessing Equifax’s protection service.


EXPECT BANK OF CANADA TO TAKE HEART FROM AN IMPROVING U.S. ECONOMIC CLIMATE: DON PITTIS

CBC - Don Pittis (2019-07-08)

In that case, this week Bank of Canada's Stephen Poloz may want to add gathering storm clouds to the "headwinds" he has used in the past, expanding on the meteorological euphemism of "crosscurrents" recently employed by his opposite number at the U.S. Fed.


US YIELD CURVE IS STILL INVERTED, STILL WORRYING INVESTORS

FT - Joe Rennison (2019-07-08)

One of the financial markets’ most reliable indicators of a coming recession is spooking investors again, ahead of a new reading on US employment that could determine whether the Federal Reserve cuts interest rates this month.


DEUTSCHE BANK DERIVATIVE DUMBNESS

FT - Jamie Powell (2019-07-08)

In financial markets, there's always a new reason to worry.


BANKS STEER CLEAR OF FACEBOOK'S LIBRA PROJECT

FT - FT (2019-07-08)

US and European banks are steering clear of Libra, Facebook's project for a new cryptocurrency, for fear of antagonising regulators and cannibalising their own digital currency projects


ACEBOOK FIGHTS BACK AGAINST LIBRA CRITICISM

FT - Jemima Kelly (2019-07-08)

While the initial mechanism by which organizations can run a node and become a member of the Libra Association, is definitely not as open as, say bitcoin, where anyone can participate in the consensus algorithm, the Libra Blockchain is absolutely designed to be openWhat this means is that no one needs to become a member to access the blockchain, and to build services like wallets, or merchant acceptance.

On decentralisation — we totally get the point — fungibility of nodes to ensure they can always be replaced over time is a fundamental principle of blockchains, and that’s why we’re committed to gradually transitioning to a permissionless state in the years to come. But it was important to start with trusted entities that could operate in a regulated environment and with the operational expertise required to ensure the integrity of the network in its foundational stage. I’d argue that one hundred geographically distributed, industry-diverse organizations is quite decentralised. Maybe not enough at equilibrium, but to start. As a comparison, often the concentration of power in the hands of those running software for mining pools on other blockchains is overlooked. But there’s no question that there are more decentralised blockchains available, and that the Libra Association must strive to gradually decentralise it further.


WHY STATCAN'S JOBS REPORT WAS GOOD DESPITE THE HEADLINE NUMBERS

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?


GLOBAL TURMOIL SENDS CANADIAN STOCK SALES TO LOWEST IN 16 YEARS

FP - Doug Alexander (2019-07-08)

Canada had its slowest start for stock sales in 16 years, as trade woes and global uncertainty kept companies on the sidelines.


DEUTSCHE BANK SCALES BACK AMBITIONS, ANNOUNCING JOB CUTS AND REORGANIZATION

NY Times - Jack Ewing (2019-07-08)

The bank that once symbolized German economic prowess is effectively abandoning hope of playing in the same league as Wall Street banks, and struggling to remain relevan


TRADE WAR MAY BE SLOWING BUSINESS SPENDING AND FACTORIES, FED SAYS

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.


GLOBAL STOCKS FALL AS PROSPECTS OF FED RATE CUT RECEDE

WSJ - oanne Chiu, Shen Hong and Paul J. Davies (2019-07-08)

U.S. stock futures followed Asian and European markets lower Monday amid investors’ doubts that the Federal Reserve would cut interest rates as much and as quickly as expected.


WALL STREET CHIEFS’ PAY DOESN’T SYNC WITH RETURNS

WSJ - Charlie McGee (2019-07-08)

Wall Street companies delivered significant losses to their shareholders last year, but the pain didn’t spread to the top. The chiefs of banking and financial institutions in the S&P 500 received a median raise of 8.5% last year, compared with 5.6% for CEOs in the broader index, according to a Wall Street Journal analysis.


INDIAN BANK DEFRAUDED BY ANOTHER BORROWER

WSJ - Krishna Pokharel (2019-07-08)

The Indian bank that fell victim to one of the country’s biggest banking scams said that another borrower had defrauded it of half a billion dollars.


EQUITABLE BANK LAUNCHES BMO PARTNERSHIP FOR CSV LINE OF CREDIT

Equitable - Press Release (2019-07-08)

"We are excited to be adding another reputable insurance provider to our CSV product suite," says Andrew Moor, President and Chief Executive Officer, Equitable Bank. "We look forward to working closely with advisors who are contracted with BMO Insurance to further build out our CSV lending product line, and to ensure that their clients' financial needs are being sufficiently met."


DEUTSCHE BANK CAREERS END IN AN ENVELOPE, A HUG AND A CAB RIDE

G&M - SUMEET CHATTERJEE AND NAVDEEP YADAV (2019-07-08)

Summoned by human resources to be handed a Deutsche Bank envelope, many of its staff across the world then left their desks for the last time on Monday, shown the door by their German employer within hours of a restructuring announcement.


BANK OF CANADA FACES A TRICKY HIGH-WIRE ACT THIS WEEK: STRIKE THE RIGHT TONE AND KEEP THE CANADIAN DOLLAR IN CHECK

G&M - Michael Babad (2019-07-08)

The central bank will have to revise its economic projections, boosting its forecast for a second quarter that's already over, while possibly taking a less optimistic view of the second half of the year and into 2020.


CANADA GAINS ITS FIRST ROBO-ADVISER PLATFORM GEARED TOWARD WOMEN

G&M - Clare O'Hara (2019-07-08)

After working for 23 years on Bay Street, former bank executive Tuula Jalasjaa is tackling financial literacy for female investors by launching the country’s first robo-adviser platform for women.


BOOMERS, ONCE CRITICAL OF MILLENNIALS, ARE MORE SYMPATHETIC TO THEIR HOUSING PLIGHT, SAYS PROFESSOR

CBC - Jason Vermes (2019-07-08)

Rebecca Goldstone calls herself a "1 per cent millennial." Thanks to financial support from her parents, she graduated in 2016 without debt and landed a full-time job in Toronto soon after.


CONSERVATIVES PUSH FOR EMERGENCY MEETING AFTER DESJARDINS PRIVACY BREACH

CBC - Catharine Tunney (2019-07-08)

"The federal government must put measures in place to ensure that this situation never happens again."


ERDOGAN FIRES TURKEY'S CENTRAL BANKER, CREATING JITTERS OVER CURRENCY

CBC - AP (2019-07-08)

Turkey's currency fell sharply on Monday, reawakening concerns of another bout of financial jitters in the country, after President Recep Tayyip Erdogan fired the central bank governor, reportedly over disagreements on interest rate cuts.


INTEREST RATE CUTS COULD ADD TO THE HEADWINDS ALREADY FACING CANADA'S BIG BANKS

FP - Geoff Zachodine (2019-07-08)

Canadian banks rode a wave of interest-rate hikes to higher profits in 2017 and 2018, in part because of gains in net interest income, generated by the spread between the higher rates they charge for loans and the lower rates they pay out on customer deposits.


WE'RE ALL ABOUT SUSTAINABILITY — EXCEPT WHEN IT COMES TO GOVERNMENT BORROWING

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.


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FOREIGN BUYERS OF US REAL ESTATE DROPS OVER 31%, FEWEST CHINESE BUYERS IN 10 YEARS

There’s a lot less foreign buyers of American real estate these days. Foreign buyers bought 183,100 homes this year, down 31.37% compared to the same period a year ago. Foreign buying of US real estate peaked in 2017, and the annual number of sales has fallen 35.64% from that peak. This is the fewest number of foreign buyers in the US in at least 10 years of data provided by NAR.


CANADIAN CITIES ARE NOW TOO EXPENSIVE FOR MINIMUM WAGE EMPLOYEES TO RENT

Canadian real estate insanity has officially spread to every corner of the country. The Canadian Centre for Policy Alternatives (CCPA) conducted a rental affordability study across Canada. The non-partisan organization found minimum wage employees can’t even afford to rent these days. Minimum wage earners can only afford to rent an average one-bedroom in 3 small cities – all in Quebec. Cities like Vancouver are so far out of whack, minimum wage employees need more than two jobs to afford a rental.


DIGITAL BANKING STARTUP OVERCOMES SETBACKS TO RAISE $170 MILLION

A digital bank with operations across Europe which recently launched in the U.S. has raised another $170 million in its latest funding round, pushing its valuation to $3.5 billion.



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