Home - banknews.tv


Recap of recent real estate news in Canada. Tiff Macklem and market exuberance, cottage country price appreciation and the rise of lumber prices.


Bulls versus the bears, this week in the Canadian real estate industry.


We a living a ponzi real estate market and the economy is at risk. Yet Doug Porter, economist BMO, is on record as saying Candian\'s want to pay more for houses. Yes, you can\'t make this stuff up. This video discusses the issues related to Porter\'s statement and explains why he is wrong.


2020 was a record year, except for condos. Montreal REM sites the exception to this rule. This video shares insights regarding the Canadian real estate segment.


Taxes are going up, TO condo prices are going down and recreational property up 15% to 40% in the Canadian market.


The mortgage debt to income ratio declined despite the pandemic. In this issue I discuss real estate stalling and immigration's impact on home prices.


This video is intended to give viewers an understanding of the economic ideas behind Canada's potential housing bubble. This video also explains why Siddal, President and CEO of the CMHC, was likely pushed from his post.


October 14th real estate report describing the issues in the market the last two weeks.


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


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


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


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


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


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


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


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


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


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


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


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


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


Canadian banks have increased their deposits by $127 billion since the start of the pandemic. This video uses charts to show which banks gained the most and how.


About

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

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

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

Select financial data to upload:

Please download and complete the data template that you need to upload. See financial data upload section above for details of how this data will be used.

Research

Real estate report: October 30th, 2020  

fsim.ca/docs/Oct30rereportv1.pdf

Mark Sibthorpe

The big buzz in real estate recently is Mark Carney being scooped up by Brookfield. This means more juice for riskier borrowers. Brookfield, a huge player in real estate, both residential and commercial, recently bought its remaining shares from Sagen (Genworth MI Canada), which values the company at $3.8 bn.


VersaBank’s New High-Security VPN Proving Especially Valuable During COVID-19 Pandemic  

fsim.ca/docs/TailscaleReleaseMarch30FINAL.pdf

Press Release

VersaBank (TSX:VB) (“VB” or the “Bank”) today announced the implementation of its new high security Virtual Private Network (VPN) remote access software solution, developed in partnership with Tailscale, a leading provider of secure network connectivity solutions. The software enables VersaBank employees to securely and directly connect to all the Bank’s servers across multiple offices and cloud providers, using two factor authentication and with every connection encrypted. The Tailscale-based solution uses the Office 365 setup and Windows client/server applications that the Bank already had in place.


2014 FSIM when Bernanke visited Montreal  

fsim.ca/docs/MockBernanke.pdf

Mark Sibthorpe

Considering Bernanke is hated by the Republicans and hated even more by the Democrats, and is currently under scrutiny for saving AIG but not Lehman, (in hindsight) with respect to issues over solvency vs liquidity, the Montreal lovefest attended by 1,100 people yesterday must have been a welcome respite. Click the link to read the entire 2014 report.


Eisman's big Canadian bank short  

fsim.ca/docs/eisman2.pdf

Mark Sibthorpe

I have been reporting on Steve Eisman's short position for quite some time.  As the analyst reaction to Eisman shows (link below), Eisman has taken a lot of heat for shorting Canadian banks. Instead of capitulating, in September 2019 he publicly disclosed the fact that he added Canadian Tire to his position, He explains the rationale for this in a BNN interview late 2019. Essentially, his big concern with respect to banks was non-performing loans in Alberta. He feels Canadian bank CEOs are not prepared for a credit cycle. He specifically referenced ATB (a private bank) in discussing his concerns. Looking at the numbers today, my guess is that he has made off like a bandit.


VersaBank Beta-Testing Its New, High Volume Mortgage Finance App   

fsim.ca/docs/VBCortelMortFinanceAppFeb62020.pdf

Press Release

VersaBank announces it is initiating beta-testing on its newly developed high-volume mortgage software app with the Cortel Group, one of Canada’s largest home and condominium builders. The app, named “Direct Connect”, was designed to facilitate and significantly reduce the lengthy finance approval process typically experienced by home buyers when visiting home and condo pre-construction sales offices.


How and why you need to defend your brand against disruptors  

Mark Sibthorpe

Technology, and being open to opportunities, has preempted transformation in banking. At the top of change are Mint, PayPal and ApplePay; three examples of transformative solutions that are now ubiquitous. On the horizon: Uber and Google, both having recently announced partner based banking services. Further down in the plumbing is Duca Impact Labs, Versabank, and Revolut. This report shows how cost conscious FIs can, not only stay relevant in the face of adversity, but punch well above their weight. All thanks to creative thinking and the ongoing commoditization of technology.


Kick the can(nomics)  

fsim.ca/docs/Kick.pdf

Mark Sibthorpe

Canada has used consumer debt to provide life support to the economy. This strategy which basically pushed the day of reckoning to the next government was old back in 2014, and now is well past its sell-by-date. Recognizing this, and desperate to keep the economy out of a recession, Trudeau is spending more money now than any government in Canadian history. This report disusses a possible alternative.


ScoreCard Bill Morneau, Canada's Minister of Finance  

fsim.ca/docs/ScoreCardMorneau.pdf

Mark Sibthorpe

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

 


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

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

Mark Sibthorpe

 


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

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

 

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

 

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

 


Update Argentina: a sign of the times  

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

Mark Sibthorpe

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


Summary of Canada's flood news, 2017 to present  

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

Mark Sibthorpe

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


Banking on Pot  

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

SBS

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


Canadian banking industry overview  

Mark Sibthorpe

The industry overview is divided into 5 parts:

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


2014 Mobile payments the Apple pay way  

fsim.ca/docs/Mobile_Payments_Apple_Pay_2014.pdf

Mark Sibthorpe

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


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

Mark Sibthorpe

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


TD bank industry conduct  

fsim.ca/docs/tdind2.pdf

Mark Sibthorpe

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


Book review: Back from the Brink  

fsim.ca/docs/backbrink.pdf

Mark Sibthorpe

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


Footnote 151  

fsim.ca/docs/footnote151.pdf

Mark Sibthorpe

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


Save the Canadian economy now  

fsim.ca/docs/helecopter-money.pdf

Mark Sibthorpe

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


Reasons financial service companies should consider gamification  

fsim.ca/docs/Gamfin.pdf

Mark Sibthorpe

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


National Bank Special Report  

fsim.ca/docs/NatBSpec.pdf

Mark Sibthorpe

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


Will Canadian banks charge companies for deposits?  

fsim.ca/docs/depgrowthimpact2.pdf

Mark Sibthorpe

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


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

fsim.ca/docs/ctfsfinal.pdf

Mark Sibthorpe

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


Finance minisiter scorecard August 26, 2015  

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

Mark Sibthorpe

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


Xtreme Branch  

fsim.ca/docs/xbranch.pdf

Mark Sibthorpe

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


Canadian Nudge  

fsim.ca/docs/nudge.pdf

Mark Sibthorpe

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


CWB cause for concern  

fsim.ca/docs/cwbupdate.pdf

Mark Sibthorpe

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


BNTV Overview  

fsim.ca/docs/overviewpdf.pdf

BNTV

BankNews.TV Publishing Corp services overview document:

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


Challenger banks not a threat to big banks  

fsim.ca/docs/challenger.pdf

Mark Sibthorpe

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


Gamification of financial data project  

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

Mark Sibthorpe

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


The impact a rate rise will have for Canadian banks  

fsim.ca/docs/irr-f.pdf

Mark Sibthorpe

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

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


FIFA: the new goldenballs  

fsim.ca/docs/goldenballs.pdf

Mark Sibthorpe

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


Scorecard Minister of Finance: JIm Flaherty  

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

Mark Sibthorpe

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


Sample RFP for a Loyalty Program  

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

Mark Sibthorpe


Merchants extend financial services  

fsim.ca/docs/merchantfs.pdf

Mark Sibthorpe

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


Hot Money: real-estate  

fsim.ca/docs/hotmoney.pdf

Mark Sibthorpe

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


Currency Cheat Sheet: a guide for the rest of us  

fsim.ca/docs/currencycheatsheet.pdf

Mark Sibthorpe

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


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

fsim.ca/docs/gq4risk.pdf

Mark Sibthorpe

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


Canadian Western Bank Competitive Forecast  

fsim.ca/docs/cwbf.pdf

Mark Sibthorpe

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


Liquid Canada: the tipping point  

fsim.ca/docs/Liquid.pdf

Mark Sibthorpe

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


Bank Fees  

fsim.ca/docs/Bank fees.pdf

Mark Sibthorpe

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


Cheap Oil Report  

fsim.ca/docs/co2.pdf

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


Canada's Economy, a strategic solution  

fsim.ca/docs/ces.pdf

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


Complete loyalty RFP  

fsim.ca/docs/booksample.pdf

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


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

fsim.ca/docs/booksample.pdf

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


Report on merchants extending financial services  

fsim.ca/docs/

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


Guide to system selection  

fsim.ca/docs/gssnow.pdf

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


News feed

CANADIAN TECH FIRM LIGHTSPEED WALLOPED BY SHORT-SELLER ATTACK

CBC - Pete Evans (2021-12-30)

On Wednesday, Spruce Point Management, an American short-selling investment firm with a history of targeting Canadian companies, put out a lengthy report on Montreal-based Lightspeed Inc., alleging the company has covered up "massive inflation" of how many customers it has, how much money it makes from them, and how much growth potential it has.


AMID BIDDING WARS, BUYERS ARE OMITTING HOME INSPECTIONS. HERE’S WHY THAT’S DANGEROUS

G&M - Robert Mclister (2021-10-22)

In the past 18 months, multiple home inspection companies have seen their volumes drop by 50 per cent, particularly in hot markets, said Alan Carson, chief executive officer of home inspection firm Carson Dunlop, and a 43-year industry veteran.


BITCOIN ENERGY CRITICS SHOULD CHECK THEIR OWN FOOTPRINTS FIRST

FP - Ethan Lou (2021-10-22)

Walch, who had taught the subject in her Law of Money class, responded, “Fair question.”


CANADIAN BANK DIVIDENDS ARE POISED TO RISE — A LOT

FP - Rob Wessel (2021-10-22)

Canadian bank dividends, in our view, are poised to rise — a lot. In August, before Q3 earnings season, we argued there was no policy rationale for the continuing moratorium on dividend increases. At the time, earnings and capital were already at all-time highs. Moreover, the banks had set aside an enormous amount, approximately $21.4 billion, of allowances against performing loans, courtesy of the new provision accounting adopted in 2018. This huge reserve represents a powerful firewall against unexpected losses. There has literally never been a time in Canadian bank history where the sector was in a stronger position to pay dividends.


CHINA EVERGRANDE LINES UP FUNDS TO PAY INTEREST, AVERT DEFAULT - SOURCE

Reuters - Clare Jim and Andrew Galbraith (2021-10-22)

China Evergrande Group (3333.HK) has supplied funds to pay interest on a U.S. dollar bond, a person with direct knowledge of the matter told Reuters on Friday, days before a deadline that would have seen the developer plunge into formal default.


ELECTRIFIED CARS HIT ALMOST A FIFTH OF EU Q3 VEHICLE SALES

Reuters - Nick Carey (2021-10-22)

Nearly one in five vehicles sold in the European Union in the third quarter was an electrified model as sales continued to soar while fossil-fuel cars slumped, according to sales data released on Friday by a trade organization.


WHAT PEOPLE ARE SAYING ABOUT CHINA EVERGRANDE GROUP

Reuters - Reuters (2021-10-22)

"Evergrande making its interest payment is a positive surprise. Importantly other developers also confirmed making interest payments – for a market which has fully capitulated, the fact the world did not end overnight could itself be a positive catalyst.


NY FED'S WILLIAMS SAYS RISING HOME PRICES DON'T POSE FINANCIAL STABILITY RISKS

Reuters - Reuters (2021-10-22)

U.S. home prices are rising rapidly because of low interest rates and as people seek out living space during the COVID-19 pandemic, but the trend doesn't yet pose big risks for financial stability, New York Federal Reserve Bank President John Williams said on Thursday.


TRUMP SPAC SOARS AS RETAIL TRADERS PUMP SHARES HIGHER

Bloomberg - BAiley Lipschultz (2021-10-22)

Retail investors are piling into the special purpose acquisition company that agreed to take former President Donald Trump’s media firm public as thousands of users pump shares across social media platforms.

Digital World Acquisition Corp., the SPAC that’s set to merge with Trump Media & Technology Group, is Thursday’s top purchase on Fidelity’s platform with about 55,000 buy orders from customers. That was nearly quadruple the purchases for PayPal Holdings Inc., the second-most-bought stock, and more than eight-times the demand for the ProShares Bitcoin Strategy ETF (ticker BITO).


WHAT YOU CAN DO ABOUT THE RISING COST OF HOME INSURANCE

WSJ - Leslie Scism and J.J. McCorvey (2021-10-22)

The cost of insuring a home is on the rise, forcing Americans to make tough decisions about whether to cut back on coverage or make big changes to save their wallets.


AUTO RISKS ARE DRAGGING ON INSURANCE STOCKS

WSJ - Telis Demos (2021-10-22)

Big and sudden catastrophes like hurricanes are part of doing business for insurers. Investors may be more preoccupied with slow-moving risks, particularly in autos.


MORTGAGE RATES TO CLIMB, BANK OF CANADA WILL BE FORCED TO HIKE EARLY: DESJARDINS

Better Dwelling - Daniel Wong (2021-10-22)

Canada’s central bank will be forced to accelerate its overnight rate hike schedule. The BoC is now expected to increase rates by 25 basis points (bps) in July 2022. That would put rates at double today’s level, highlighting how low they are currently. Another similarly-sized hike is expected to follow in the fourth quarter.


ROYAL MINT TO EXTRACT GOLD FROM OLD LAPTOPS AND MOBILE PHONES

Finextra - Finextra (2021-10-22)

Scientists and engineers at The Royal Mint are now working to grow the technology from laboratory scale to mass production. Instead of electronic waste leaving UK shores to be processed at high temperatures in smelters, the approach will see precious metals recovered at room temperature at The Royal Mint’s site in South Wales.


EVERGRANDE SHARES TUMBLE ON SALE FAILURE, 97% PLUNGE IN SALES AS MARKETS BRACE FOR CHINESE DEFAULT AVALANCHE

Zero Hedge - Tyler Durden (2021-10-22)

Evergrande shares slumped as much as 14.2% after the debt-strapped developer sought unsuccessfully to sell a controlling stake in its property management business. The collapse of talks to sell the 50.1% stake in Evergrande Property Services to Hopson Development Holdings for 20.04 billion Hong Kong dollars ($2.58 billion), revealed in an exchange filing late Wednesday evening, ratcheted up the odds that Evergrande will default on an offshore bond this weekend when the 30 day grace period expires on an offshore bond coupon payment that was due a month ago and was never paid.


AMERICAN EXPRESS EMBEDS WFH INTO POST-PANDEMIC WORKING LIFE

Finextra - Finextra (2021-10-21)

"Our traditional way of working has changed," chief executive officer Stephen J. Squeri says in a memo sent to all staff. "The office is no longer the only place where most colleagues can effectively get work done, as we’ve proven throughout the last 18 months. We want to build on the progress we’ve made working virtually, including how we’ve become more efficient and agile, gained greater flexibility to manage our professional and personal lives, and levelled the playing field for colleagues across band levels and locations."


HSBC MOVES INTO BANKING-AS-A-SERVICE

Finextra - Finextra (2021-10-21)

This means that NetSuite customers will be able to automate accounts payable, accounts receivable and reconciliation processes, making it fast and simple to pay bills, send invoices, get paid and gain full cash flow visibility from within a unified system.


DIGITAL MONEY IS AN OPPORTUNITY FOR CANADA – IF WE SEIZE IT

G&M - ROBERT FAY AND DAVID DODGE (2021-10-21)

Robert Fay is the managing director of digital economy at the Centre for International Governance Innovation. David Dodge is a former governor of the Bank of Canada and is senior adviser at Bennett Jones LLP.


IT'S BEEN NEARLY 20 YEARS SINCE INFLATION HAS BEEN THIS HIGH IN CANADA

CBC - Pete Evans (2021-10-21)

Gasoline prices have risen by almost 33 per cent in the past year, the data agency said. In addition to the cost of a fill-up, a major factor in the cost of transportation is the price of a car, which is also going up at a swift pace. The data agency calculates that prices for new cars rose by 7.2 per cent in the past year.


BITCOIN HITS NEW ALL TIME HIGH ABOVE $66,000 US

CBC - Reuters (2021-10-21)

Crypto ETFs have launched this year in Canada and Europe amid surging interest in digital assets. VanEck and Valkyrie are among fund managers pursuing U.S.-listed ETF products, although Invesco on Monday dropped its plans for a futures-based ETF.


CANADIAN BANK DIVIDENDS POISED TO RISE AS MUCH AS 25% ONCE RESTRICTIONS LIFT

FP - Kevin Orland (2021-10-21)

Canada’s largest banks socked away record amounts of capital during the pandemic to protect against a wave of defaults that never occurred, while also seeing core earnings measures rise.


SCOTIABANK SEES EIGHT BANK OF CANADA INTEREST RATE HIKES BY END OF 2023

FP - Erik Hertzberg (2021-10-21)

Policymakers led by Governor Tiff Macklem will begin a series of eight 25-basis-point hikes in July of next year, Scotiabank’s Derek Holt said Wednesday on BNN Bloomberg Television. That will be followed by moves in September, October, and December. Holt predicted the the pace of tightening would then slow, with quarterly moves in 2023 bringing the policy rate to 2.25 per cent by the end of that year.


UK FACES ENERGY 'MASSACRE' OF 20 MORE BUST SUPPLIERS, SCOTTISH POWER SAYS

Reuters - Reuters (2021-10-21)

Britain's energy market faces an absolute massacre that could force at least 20 suppliers into bankruptcy in the next month alone unless the government reviews the energy price cap, Scottish Power Chief Executive Keith Anderson said on Thursday.


CHINA'S SILENCE ON YUAN'S SWIFT GAINS KEEPS MARKETS BUZZING

Reuters - Reuters (2021-10-21)

As China's yuan climbs rapidly to its strongest levels in six years against the currencies of the country's trading partners, a notable absence of concern and intervention by the authorities is unnerving investors.


CANADIAN REAL ESTATE PRICES HIT PAUSE AS VANCOUVER FALLS FROM RECORD: NATIONAL BANK

Better Dwelling - Daniel Wong (2021-10-21)

The C11, an index of the 11 largest real estate markets in the country, showed slowing price growth. The index showed monthly growth of 0.1% in September. Last month was the fourth consecutive deceleration for monthly movements. It also happened to be the smallest monthly gain since January 2020. We’re finally back to pre-pandemic growth — at least on a monthly basis.


FEDERAL RESERVE SURVEY FINDS ECONOMY FACING SUPPLY CHAIN, OTHER DRAGS

Investment Executive - Martin Crutsinger (2021-10-21)

“Outlook for near-term economic activity remained positive, overall, but some districts noted increased uncertainty and more cautious optimism than in previous months,” the Fed said in the report on business conditions nationwide, known as the beige book.


AMERICA’S BEST INSURANCE COMPANIES 2022

Forbes - Jason Bisnoff (2021-10-21)

Joining Nationwide in recognition across five categories are Alfa Insurance, Allstate, American Family Insurance, Erie Insurance, Farm Bureau Insurance, Liberty Mutual, Progressive, State Farm and USAA. San Antonio, Texas-based USAA got the highest ratings in the survey, finishing first in permanent life, term life, homeowners and renters and behind only Seattle-based PEMCO in auto insurance.


GOOGLE KILLS THE GOOGLE PLEX: IT COULD HAVE BEEN A DIGITAL CHECKING ACCOUNT KILLER APP

Forbes - Ron Shevlin (2021-10-21)

“A Google spokeswoman said the company would now focus primarily on delivering digital enablement for banks and other financial services providers rather than us serving as the provider of these services.”


UN’S MARK CARNEY SAYS ‘ENORMOUS’ STRANDED ASSETS SHOW THE NEED FOR A RAPID ENERGY TRANSITION

CNBC - Sam Meredith (2021-10-21)

The likelihood of fossil fuel assets being rendered worthless underscores the need to decarbonize the world’s economy as quickly as possible, according to Mark Carney, the U.N.’s special envoy on climate action and finance.


WORLD BANK SEES ‘SIGNIFICANT’ INFLATION RISK FROM HIGH ENERGY PRICES

G&M - Andrea Shalal (2021-10-21)

Energy prices are expected to inch up in 2022 after surging more than 80 per cent in 2021, fuelling significant near-term risks to global inflation in many developing countries, the World Bank said in its latest Commodity Markets Outlook on Thursday.


HEDGE FUNDS FLOCK TO OIL AS ENERGY SHORTAGES WORSEN: KEMP

Reuters - John Kemp (2021-10-21)

Rising oil prices and the spreading global shortage of coal, gas and electricity have drawn fresh buying interest from hedge funds and other money managers in oil-related derivatives contracts.


CANADIAN PROPANE PRICES SURGE 300% — AND COULD CLIMB HIGHER AS U.S. MARKETS BRACE FOR 'ARMAGEDDON'

FP - Geoffrey Morgan (2021-10-21)

While all eyes have been on natural gas, propane prices have been skyrocketing too, thanks in large part to a huge export market for the heating source.
Propane, usually produced as a by-product or derivative of natural gas, has jumped in the past three months, with prices in Edmonton up 296 per cent to US$1.40 per gallon from roughly US$0.25 per gallon, according to ATB Capital Markets.
That rise is sharp enough to dramatically reduce the discount that Canadian propane prices usually face compared with pricing hubs like Mont Belvieu in Texas, where propane prices reached US$1.48 per gallon earlier this week.


FED PUTS ‘TOUGH’ INVESTMENT LIMITS ON TOP OFFICIALS IN BID TO STAUNCH SCANDAL

G&M - HOWARD SCHNEIDER AND ANN SAPHIR (2021-10-21)

The U.S. Federal Reserve on Thursday banned individual stock purchases by its top officials and unveiled a broad set of other restrictions on their investing activities, taking action roughly six weeks after reports of active trading by some U.S. central bank policy makers triggered an ethics uproar.


CANADA’S BANKS JOIN MARK CARNEY, SIGNALING A SHIFT FROM THE WEST’S FOSSIL FUEL DEPENDENCY AND DELIGHTING OPEC

G&M - KONRAD YAKABUSKI (2021-10-20)

Canada’s six largest banks last week became the latest global financial institutions to join former central bank governor Mark Carney’s efforts to steer lending away from fossil fuels toward renewable energy investments.

By joining

Loading... the United Nations-convened Net-Zero Banking Alliance, led by Mr. Carney, the UN special envoy on climate action and finance, the big six banks formally committed to shifting their lending away from projects and activities that generate greenhouse gas emissions “to align with pathways to net zero by mid-century, or sooner.”


WORKING FROM HOME FOR THE LONG-TERM ISN’T BENEFICIAL, CIBC CEO SAYS

G&M - Clare O'Hara (2021-10-20)

Permanent work-from-home arrangements may not be beneficial for companies over the long haul, Canadian Imperial Bank of Commerce 

CM-T +0.09%increase   chief executive Victor Dodig says, and could spark division between front-line employees who have to come to work, and others who are given a choice.


AS BITCOIN GOES MAINSTREAM, WALL STREET LOOKS TO CASH IN

G&M - Stan Choe (2021-10-20)

Love cryptocurrencies or hate the very idea of them, they’re becoming more mainstream by the day.


HOMEBUYERS' MIGRATION TO SMALL TOWNS IS FAR FROM OVER

FP - Larysa Harapyn (2021-10-20)

Phil Soper, CEO of Royal LePage, talks with the Financial Post’s Larysa Harapyn about the real estate market and the revival of small and medium towns in Canada.


WORLD FACES MUCH BIGGER FISCAL PROBLEMS THAN THE DEBT HANGOVER FROM COVID, WARNS OECD

FP - William Horobin (2021-10-20)

According to its long-term scenario, a deceleration in large emerging economies, demographic change and slowing productivity gains will drag trend economic growth among the OECD’s 38 members and the Group-of-20 nations to 1.5 per cent in 2060 from around 3 per cent currently. At the same time, states will face rising costs, particular from pensions and health care.
To maintain public services and benefits while stabilizing debt in that environment, governments would have to raise revenues by nearly 8 per cent of gross domestic product, the OECD said. In some countries, including France and Japan, the size of the challenge would amount to more than 10 per cent of output, and the economists didn’t even account for new expenditures such as climate change adaptation. 


BANK OF CANADA NOT PLANNING TO LAUNCH DIGITAL CURRENCY, AT LEAST FOR NOW

Reuters - Reuters (2021-10-20)

“We haven’t made a decision to issue one yet because we basically don’t see a compelling need under current circumstances,” Bank of Canada Deputy Governor Timothy Lane told a virtual panel organized by a Washington think-tank.


BUNDESBANK'S WEIDMANN QUITS WITH ONE LAST INFLATION WARNING

Reuters - Balazs Koranyi and Francesco Canepa (2021-10-20)

Bundesbank President Jens Weidmann, a relentless critic of the European Central Bank's ultra-easy monetary policy, will step down from his post on Dec. 31, more than five years before his term was due to end, the German central bank said on Wednesday.


WAGE DISPUTE DEEPENS AT GERMAN PUBLIC BANKS AS INFLATION FEARS PERSIST

Reuters - Tom Sims and Frank Siebel (2021-10-20)

A labour dispute at Germany's public-sector banks deepened on Wednesday after a third round of talks failed to reach agreement, with inflation fears prompting unions to stand firm over demands for higher wages.


BANK DIVIDENDS IN CANADA COULD RISE 25% WHEN RESTRICTIONS LIFTED

Bloomberg - Kevin Orland (2021-10-20)

The dividend increase of 20% to 25% could happen even if the banks’ earnings growth stalls, Toronto-based Hamilton Capital Partners said in a note


BITCOIN FUTURES ETF DEBUTS AS SECOND-HIGHEST TRADED FUND EVER

Bloomberg - VILDANA HAJRIC (2021-10-20)

The first Bitcoin-linked exchange-traded fund listed in the U.S. debuted as the second-most heavily traded fund on record in a watershed moment for the crypto industry.  

The ProShares Bitcoin Strategy ETF -- trading under the ticker BITO -- rose about 4.9% to $41.94. More than 24 million shares changed hands Tuesday, according to data compiled by Bloomberg. Because of the way the fund settles trades, net flows into or out of the product probably won’t be known until overnight on Wednesday.


BANK OF AMERICA’S CALIFORNIA PARTNERSHIP, LONG FLOURISHING, IS ROILED BY UNEMPLOYMENT FRAUD

WSJ - Ben Eisen and Christine Mai-Duc (2021-10-20)

Bank of America Corp. thought helping states such as California hand out unemployment benefits would be good business. Then millions of Americans lost their jobs at once.


CREDIT SUISSE TO PAY $475 MILLION, ADMITS DEFRAUDING INVESTORS TO SETTLE MOZAMBIQUE CHARGES

WSJ - Margot Patrick, Matt Wirz and Dave Michaels (2021-10-20)

Credit Suisse Group AG agreed to pay $475 million and forgive $200 million Mozambique owes to investors in coordinated settlements with U.S. and European authorities over loans the bank made in the country.


U.K. HOME VALUES HAVE JUMPED 20% TO A TOTAL OF £9.2 TRILLION SINCE 2016

WSJ - V.L. Hendrickson (2021-10-20)

The market value of U.K. homes has risen 20% to £9.2 trillion (US$12.59 trillion) over the last five years, according to a report Thursday from Zoopla. 


CANADIAN BUSINESSES EXPECT HIGH INFLATION, SPARKING MORE RATE HIKE CHATTER: BMO

Better Dwelling - Daniel Wong (2021-10-20)

A record number of Canadian businesses are expecting higher than usual inflation. The survey found 45% of respondents in Q3 2021 expect inflation to rise above 3% for the next two years. Last year, that share was just 11% of businesses.


WHAT U.S. BANK EARNINGS SIGNAL FOR MAJOR CANADIAN BANKS

G&M - James Bradshaw (2021-10-19)

Customers of big U.S. banks are slowly starting to borrow more on credit cards and taking out more auto loans, and that’s a good sign for major Canadian banks as they near the end of a fiscal year marked by sluggish lending.


CANADA’S ‘TAX THE RICH’ PLAN LEAVES BIG DEBT RISK UNTOUCHED, ANALYSTS SAY

G&M - JULIE GORDON AND FERGAL SMITH (2021-10-19)

Prime Minister Justin Trudeau’s new government is set to impose higher taxes on Canadians, which will help fund some campaign promises but are not broad enough to also start paying down the country’s record levels of debt, leaving Canada vulnerable to the next economic crisis, analysts say.


ECONOMIST, FORMER FEDERAL ADVISER URGES OTTAWA TO IGNORE BUSINESS LOBBY, SHUT DOWN WAGE SUBSIDY

G&M - Bill Curry (2021-10-19)

“The Ministry of Finance shouldn’t be extending the Canada Emergency Wage Subsidy. Its time has passed,” said Miles Corak, a professor at the City University of New York’s Department of Economics, who released a paper this week in which he argues CEWS was poorly designed and should not be renewed.


CAISSE’S INVESTMENT IN A CRYPTOCURRENCY COMPANY AT ODDS WITH ITS PLEDGE TO FIGHT CLIMATE CHANGE

G&M - Rita Trichur (2021-10-19)

The Caisse de dépôt et placement du Québec’s first-ever investment in a cryptocurrency company is providing Canadians with a reality check on its climate commitments.

With the ink barely dry on its new climate change strategy, Canada’s second-largest pension fund manager announced last week that it is taking part in a US$400-million investment in Celsius Network

Loading... , a New Jersey-based cryptocurrency-lending platform.


CANADA'S DEBT BINGE IS NOT GOOD FOR THE ECONOMY'S FUTURE OR THE LOONIE

FP - David Rosenberg (2021-10-19)

Indeed, despite being among the most indebted of their peers pre-pandemic, Canadian households expanded their liabilities at the fastest rate in nearly a decade — primarily driven by a huge uptick in demand for mortgages as low interest rates prompted a surge in house prices — leading to a surge in the household debt-to-GDP ratio to 119.6 per cent by mid-2020, from 101.3 per cent at the end of 2019. The household debt ratio has come down since the crisis peak, but the reality is that the population’s excessive borrowing habits leading up to and during the pandemic will likely act as a drag on future consumption — and, thus, economic growth — over the longer term.


WALL STREET BANKS SET TO PROFIT AGAIN WHEN FED WITHDRAWS PANDEMIC STIMULUS

Reuters - Matt Scuffham (2021-10-19)

Wall Street banks have been among the biggest beneficiaries of the pandemic-era trading boom, fueled by the Federal Reserve's massive injection of cash into financial markets.


CANADA’S TIGHT HOUSING MARKET POSTS FIRST SALES GAIN IN 6 MONTHS

Bloomberg - Ari Altstedter and Erik Hertzberg (2021-10-19)

Canada posted its first nationwide home sales increase in six months as the end of summer vacations and a steadily improving economy boosted the market. 


THIS BOE IS MADE FOR HIKING AND THAT IS WHAT IT’LL DO

Bloomberg - Marcus Ashworth (2021-10-19)

With all the subtlety of a dropped hammer, Bank of England Governor Andrew Bailey dispelled what little doubt was left that U.K. interest rates would be raised before the end of this year. The central bank would “have to act” to reduce inflationary pressures, he declared at an online panel held on Sunday by the Group of 30, an organization of financiers and academics.
The whole gilt yield curve shifted higher Monday in reaction, with two-year yields at 0.75%, the highest since May 2019; 10-year yields have doubled over the past two months, making it the worst-performing major government bond market. U.K. money markets have priced in 50 basis points of rate hikes by year-end. It is overreaction, of course. But what else could the markets do as they bore witness to the previously super-dovish BOE’s road-to-Damascus conversion? The central bank had just until recently toyed with negative rates.
In the minds of most BOE policymakers, the debate whether inflation is transitory is over. Bailey’s remark makes clear that inflation is now flashing red because energy prices have soared, and those surges are expected to spill over into consumer behavior, business pricing and, ultimately, potential wage demands. The semantics of inflation is for the birds — and they are turning out to be hawks.


FOREIGN AAA ISSUERS LAND IN CANADA BONDS AS COVID ISSUANCE SLOWS

Bloomberg - Estaban Duarte (2021-10-19)

Some of the highest-rated government agencies in the world are hitting up the Canadian bond market, taking advantage of pent-up demand from investors facing an issuance slowdown from the country’s own borrowers.


OVER A QUARTER OF TORONTO REAL ESTATE IS BOUGHT BY INVESTORS WITH MULTIPLE PROPERTIES

Better Dwelling - Stephen Punwasi (2021-10-19)

The largest group of home buyers in Ontario already have at least one other home. Multiple property owners represented nearly 25% of Ontario home purchases in 2021. This was a new record, with their share of the market advancing 8 points over the past decade, about a 50% increase. That’s right, one in four Ontario property buyers already owns at least one other home.


BUSINESSES SEE HIGHER INFLATION, WAGES AND JOB CHANGES, BANK OF CANADA REPORTS

Investment Executive - Jordan Press (2021-10-19)

Meanwhile, almost half of businesses surveyed expect the pace of price increases to stay above 3% over the next two years, fuelled by a combination of supply-chain bottlenecks, bumps in food and energy prices, and actions by the Bank of Canada and federal government to stimulate the economy.


OFFSHORE HAVENS MAY BE STUNG BY GLOBAL TAX DEAL: MOODY’S

Investment Executive - James Langton (2021-10-19)

“If successfully implemented, the global minimum corporate tax rate will be mildly credit negative for sovereigns that have used tax policy as a key component of a broader competitiveness strategy to attract investment, such as Ireland, Hungary, and many Caribbean economies, which typically have corporate tax rates below 15%,” Moody’s said.


TIME RUNNING OUT FOR COMPANIES AS LENDERS AND INVESTORS TIGHTEN THE SCREWS ON SUSTAINABLE FINANCE

Bobsguide - Aoife Morgan (2021-10-19)

Companies are hastening work on setting clear ESG strategies and monitoring progress as investors have ramped up pressure on ensuring their portfolio meets net-zero targets.


TRADERS INCREASINGLY DOUBT BANK OF CANADA'S RATE-HIKE TIMELINE

BNN - Erik Hertzberg (2021-10-19)

Bets in the overnight swaps market are increasingly tilting toward a move early next year, well ahead of the U.S. Federal Reserve. Traders have now priced in three hikes in Canada by the end of 2022, which would bring the policy rate to 1 per cent from the current 0.25 per cent.


CANADIAN FIRMS SEE INFLATION STAYING HIGH AMID RECORD CONFIDENCE

BNN - Shelly Hagan (2021-10-19)

Canadian business sentiment rose to record levels in the third quarter, though inflation expectations are elevated and labor shortages are getting worse, according to a Bank of Canada survey.


RUSSIA SIGNALS EUROPE WON'T GET EXTRA GAS WITHOUT NORD STREAM 2

BNN - Irina Reznik, Henry Meyer and Ilya Arkhipov, (2021-10-19)

But with relations with Europe in the deep freeze after years of sanctions and other tensions, there’s no appetite in the Kremlin to do any favors. Although exports to Europe are up this year from last year’s depressed levels, they lag those seen in 2019, according to the Oxford Institute for Energy Studies. Daily flows have dropped in October and Gazprom has been slow to refill storage facilities it owns in Europe, adding to upward pressure on prices. Russia has blamed an overly hasty shift to relying on spot markets and alternative energy sources for the crisis.


REACHING NET-ZERO WILL REQUIRE $5 TRILLION EVERY YEAR FOR THE NEXT 30 YEARS, SAYS BOA REPORT

Finextra - Finextra (2021-10-18)

The total cost of the transition, predicts Bank of America, will be $150 trillion - that’s three times the value of the Covid-19 stimulus bill this decade.


U.S. BANKS SEE WEALTH MANAGEMENT BOOM ON BORROWING, NEW ASSETS

Reuters - Elizabeth Dilts Marshall (2021-10-18)

Big U.S. banks' wealth management businesses put in another stellar performance in the third quarter, buoyed by record levels of new money flowing into accounts and surging demand from clients to borrow against their investment portfolios.


GOLDMAN CAPS STELLAR QUARTER WITH M&A DEALS

Reuters - Noor Zainab Hussain and Elizabeth Dilts Marshall (2021-10-18)

Goldman Sachs Group Inc (GS.N) on Friday reported a 66% surge in third-quarter profit that smashed expectations, as Wall Street's biggest investment bank rode a record wave of M&A activity and initial public offerings.


IF RBC CEO IS RIGHT ABOUT IMPENDING SPENDING SPREE, INTEREST RATES WILL RISE SOONER THAN EXPECTED

FP - Kevin Carmichael (2021-10-18)

Tiff Macklem, the Bank of Canada governor, concedes that possibility, but thinks it’s more likely a shell-shocked nation will use most of its excess cash to save, invest and pay off debt. His outlook is one of the reasons the central bank doubled down on its pledge to leave the benchmark lending rate at 0.25 per cent until at least the second half of 2022, even as inflation escaped the Bank of Canada’s comfort zone this summer.


WHY HIGHER RATES WON’T CURE INFLATION THIS TIME AROUND

Youtube - Video (2021-10-18)

Frances Donald, Global Chief Economist at Manulife, speaks with Financial Post’s Larysa Harapyn about the factors affecting inflation going into the end of the year and what will fuel Canada's economic recovery.


DEMOCRATS SWARM VIRGINIA GOVERNOR RACE TO BLUNT EX-CARLYLE CEO

Bloomberg - Ryan Teague Beckwith (2021-10-18)

Democrats concerned by the tight race for Virginia governor are rushing to bolster Terry McAuliffe’s campaign in a state that could set the national momentum for the critical midterms and the 2024 presidential election.


BANK OF CANADA TO HOLD IN-PERSON LOCK UP FOR OCT. 27 DECISION

Bloomberg - Shelly Hagan (2021-10-18)

The Bank of Canada plans to resume in-person lockups for its policy decision this month.


REGULATORS PUT ESG FUND NAMES UNDER THE MICROSCOPE

FT - Mariana Lemann (2021-10-18)

Can you have too much of a good thing? For regulators looking at the recent proliferation of funds sold with an environmental, social and governance stamp, the answer may be “yes”.


POST-CRISIS REFORMS HELPED BANKS RIDE OUT PANDEMIC

Investment Executive - James Langton (2021-10-18)

“In fact, many jurisdictions used the existing flexibilities in the Basel framework to provide regulatory relief during the pandemic,” the report said.


INVESTORS DUPED IN RSP UNLOCKING SCHEME, OSC ALLEGES

Investment Executive - James Langton (2021-10-18)

The OSC alleged that, between November 2015 and May 2021, “Gagnon collected more than $20 million from investors across Canada, by promising them immediate access to their locked-in retirement savings accounts.”


TRUDEAU ANNOUNCES DATE FOR RECALL OF PARLIAMENT

Investment Executive - IE (2021-10-18)

Parliament will be recalled on Nov. 22 — just over two months after the snap election that returned the Liberals with a second consecutive minority.


BIG SIX JOIN MARK CARNEY-LED NET ZERO BANKING ALLIANCE

Investment Executive - CP (2021-10-18)

Canada’s Big Six banks have together announced that they will join the Net-Zero Banking Alliance ahead of the UN climate summit set to start in Glasgow at the end of the month.


OPINION: EUROPE MADE ITS ENERGY BED AND NOW MUST SLEEP IN IT — SHIVERING

FP - Mark Milke and Lennie Kaplan, (2021-10-18)

One of the more bizarre developments in Europe in recent years has been the twin policy paths whereby fossil fuels have been discouraged in favour of wind and solar, but deals have been struck with autocracies, including Russia, to import more fossil fuel via pipelines.
The net effect of the first policy, obvious in the last few weeks, has been to force European consumers and businesses to pay much more to heat and power their homes and run their businesses. That results from the intermittent nature of wind and solar: when the wind doesn  t blow and the sun doesn  t shine, the electricity grid needs backup. That comes from natural gas or coal, though coal, along with nuclear power, is increasingly being phased out. Needing backup means Europeans pay twice for power.
Now combine the coal and nuclear phaseouts with Europe  s political and policy disdain for local exploration for oil and natural gas, such as attempts to label Canadian oil as dirty and thus discourage future Canadian exports to Europe. The result is that the European demand for energy has hit limited supply, causing energy prices to soar.


JAMIE DIMON SAYS SUPPLY-CHAIN WOES WON’T LAST - BUT THEY’RE CAUSING REAL PAIN ON MAIN STREET RIGHT NOW

G&M - Gus Carlson (2021-10-16)

Jamie Dimon is the anti-Chicken Little – a prominent voice who says the sky is not falling, despite the current mess.


WHEN IT COMES TO FOSSIL FUEL SUBSIDIES, CANADA IS NOT THE PROBLEM

G&M - KONRAD YAKABUSKI (2021-10-16)

Soaring fossil fuel prices this month forced European governments to announce emergency aid packages to help consumers and industries cope with surging electricity bills, with many analysts predicting a winter of discontent as energy shortages send prices even higher.


CANADIAN NOBEL WINNER DAVID CARD HAS LED A CREDIBILITY REVOLUTION IN ECONOMICS

G&M - Ian Brown (2021-10-16)

Instead, he was lured to Princeton by Orley Ashenfelter, one of the first labour economists to encourage the use of empirical methods. Prof. Ashenfelter was fond of quoting a famous line in The Wealth of Nations, in which Adam Smith notes that employers rarely get together without discussing how they can keep wages low. That established the Ashenfelter team’s quietly subversive tone.


THE VOID IN CALGARY

G&M - JEREMY AGIUS AND JAMES KELLER (2021-10-15)

Thanks to the heft of Alberta’s oil and gas industry, Calgary has always had an outsized downtown core for a city of 1.3 million, with double the amount of office space per capita of Toronto’s city centre. The number of workers in those towers has become a barometer for the state of the economy. When the price of oil falls, companies lay off staff or go out of business, leaving empty desks behind.


BANK OF CANADA’S TIFF MACKLEM, BANK CEOS DIVERGE ON INFLATION OUTLOOK

G&M - Mark Rendell (2021-10-15)

Bank of Canada Governor Tiff Macklem is standing by his assertion that the current bout of high inflation is transitory, even as top Canadian bank executives question that narrative and warn that price pressures could persist.


THESE NUMBERS SHOW HOW THE WEALTH OF YOUR PARENTS IS A DEAL-BREAKER FOR FIRST-TIME HOME BUYERS

G&M - Rob Carrick (2021-10-15)

Almost one in five first-time home buyers is getting financial help from parents, and the average amount of that help is $150,000.


DALIGAS BECOMES THIRD BRITISH ENERGY SUPPLIER TO COLLAPSE THIS WEEK

G&M - Reuters (2021-10-15)

Small British energy supplier Daligas ceased to trade on Thursday, the regulator Ofgem said, becoming the third to collapse this week and one of a dozen to fail since September as they struggle to cope with record wholesale energy prices.


FORMER CANADIAN CENTRAL BANKER PUSHES CORNWALL CONSENSUS AFTER WASHINGTON CONSENSUS DIES

G&M - Kevin Carmichael (2021-10-15)

At the time, her bosses at Finance as well as her former professors thought they had cracked the code by promoting a policy mix that emphasized free markets over government intervention. It came to define mainstream policy-making and was even given a name: the Washington Consensus, so called because the International Monetary Fund and the World Bank — both based in Washington, D.C. — were by then making loans contingent on spending discipline, market-determined exchange rates and the like.
“The Washington Consensus emerged at a time when it felt like market forces could deliver a lot of what we wanted, and if we focused on that, the benefits of increased growth, increased productivity, would be distributed to people in different income brackets and across different cultural groups,” Wilkins said in an interview on Oct. 13. “History has proved us wrong in that regard.”


BITCOIN TOPS $60,000, NEARS RECORD HIGH, ON GROWING U.S. ETF HOPES

Reuters - Tom Wilson and Alun John (2021-10-15)

Bitcoin hit $60,000 for the first time in six months on Friday, nearing its record high, as traders grew confident that U.S. regulators would approve the launch of an exchange-traded fund (ETF) based on its futures contracts.


CITIGROUP RIDES ON WALL STREET M&A BOOM TO OFFSET SLUGGISH LOAN BOOK

Reuters - David Henry and Anirban Sen (2021-10-15)

A sizzling hot stock market and cheap borrowing costs have helped U.S. companies raise billions of dollars in debt and equity and funnel a big share of it into deals, for which they used large investment banks for advice. The torrid pace of dealmaking boosted investment banking fees to an all-time record in the first nine months of the year, with banks like JPMorgan Chase (JPM.N), Citi and Morgan Stanley (MS.N) benefiting the most. "It was Citi's best M&A quarter and the second best investment banking quarter in a decade," Chief Executive Jane Fraser said on a post-earnings conference call with analysts. The bank's investment banking revenue jumped 39% to $1.9 billion, helping offset a 16% decline in fixed-income revenue from a year earlier when there was unprecedented market volatility. Its profit got a big boost by the decision to ease $1.16 billion from its loan loss reserves. A year earlier it had added $436 million to the reserves to survive a potential impact from the pandemic.


WELLS FARGO BEATS PROFIT EXPECTATIONS ON RESERVE RELEASE BOOST

Reuters - Noor Zainab Hussain and Michelle Price (2021-10-15)

Wells Fargo & Co (WFC.N) posted a nearly 60% rise in third-quarter profit that beat market estimates, as it released funds set aside to cover potential loan losses due to the pandemic and reined in costs tied to its years-old sales practices scandal.


CONTACTLESS CARD LIMIT INCREASES TO £100 IN BRITAIN

Bloomberg - Charlie Wells (2021-10-15)

On Friday, the limit for contactless card payments rose by more than half, from 45 pounds ($62) to 100 pounds. It’s a milestone for a country whose banks got an early start with tap-to-pay technology and where 88% of debit and 81% of credit cards now have contactless features.


CANADIAN INVESTMENT IN HOME CONSTRUCTION IS OFFICIALLY IN CORRECTION TERRITORY

Better Dwelling - Daniel Wong (2021-10-15)

Building construction has been following this trend since peaking in April. August marked the fourth consecutive month to see seasonally adjusted volumes fall. From the peak in April to the number reported in August, monthly dollar volumes are 10.5% lower. That technically makes this a correction, driven entirely by a slowdown in housing.


CIBC ALLOTS $450-MILLION FOR U.S. VENTURE CAPITAL INVESTMENT

G&M - James Bradshaw (2021-10-15)

The bank announced a total capital commitment of $450-million on Wednesday, extending a strategy that has already seen CIBC Innovation Banking – the unit catering to tech and life-sciences companies, including startups – invest about $150-million as a limited partner in a dozen Canadian funds over the past few years.

The Toronto-based bank started making similar investments in U.S. venture capital funds this summer. And as Canada gets more crowded, CIBC Innovation Banking president and executive managing director Mark McQueen said he believes his unit has the potential to break into the top five U.S. financiers of tech and life-sciences companies.

“Dominating in Canada is impossible with, obviously, so many banks sharing a desire to focus on the early-stage economy,” he said in an interview. “But the U.S. is a much more mature and larger market, and a much bigger pie.”

Domestic competition has increased

Loading... in technology banking since CIBC’s 2018 acquisition of Wellington Financial, which was led by Mr. McQueen. Rival banks have responded as demand for equity financing and venture debt from the burgeoning tech sector has exploded, fuelled by low interest rates and surging use of e-commerce, software services and health care technologies during the COVID-19 pandemic.


RBC CEO WARNS ‘PERSISTENT INFLATION’ IS BUILDING, DISPUTES CENTRAL BANK FORECASTS

G&M - James Bradshaw (2021-10-14)

Even as Canadian employment has recovered to levels seen before the COVID-19 pandemic

Loading... , employers still face labour shortages that are driving up wages, Mr. McKay said at a virtual event held by the Institute of International Finance (IIF) on Wednesday.


LANDLORD OPPOSES CCAA RESTRUCTURING BY CELEBRITY CHEF MARK MCEWAN

G&M - SUSAN KRASHINSKY ROBERTSON (2021-10-14)

During the lockdowns, the company received government support that included roughly $3.3-million under the federal wage subsidy program, $300,000 in rent subsidies, a $250,000 loan under Business Development Canada’s program for pandemic-affected sectors and a $60,000 loan under the Canada Emergency Business Account (CEBA).


JPMORGAN SMASHES THIRD-QUARTER PROFIT ESTIMATES ON M&A BOOM, WEALTH MANAGEMENT STRENGTH

G&M - ANIRBAN SEN AND ELIZABETH DILTS MARSHALL (2021-10-14)

JPMorgan Chase & Co. 

JPM-N -2.64%decrease   beat analysts’ profit estimates on Wednesday, thanks to record revenue in some investment banking businesses and a sunnier economic outlook that allowed the largest U.S. bank to release money it had set aside for potential loan losses during the coronavirus pandemic.


SIDDALL LOOKS TO PUT CLIENTS’ INTERESTS FIRST AFTER MAJOR LOSSES AT AIMCO

G&M - Jeffrey Jones (2021-10-14)

Evan Siddall sees his first priority as head of Alberta Investment Management Corp. as transforming the culture so clients’ interests are first, and key to that is remembering the lessons from its infamous multibillion-dollar loss on early-pandemic market swings.

Mr. Siddall began as chief executive officer of the provincially owned agency known as AIMCo in July, capping a number of senior staff changes that followed the $2.1-billion loss on market volatility trading in 2020, and the investigation it sparked. Former CEO Kevin Uebelein left the position before his full tenure was up

Loading... .


U.S. INFLATION RATE RISES TO 13-YEAR HIGH OF 5.4%

CBC - CBC (2021-10-14)

Higher prices for food and shelter made up half of the increase in the overall rate, the U.S. Bureau of Labour Statistics said in a release. But the biggest individual category increase was energy, the cost of which has risen by almost 25 per cent in the past year.


'IN COMPLETE DENIAL': MARKETS FAIL TO GRASP SCALE OF GLOBAL INFLATION

FP - Andrea Papuc (2021-10-14)

Markets “are in complete denial,” Every said. “The vast majority are saying ‘it’ll be all good, she’ll be fine, don’t worry, it’s all priced in.’ No it isn’t, it absolutely isn’t.”
The central bank mantra that inflationary pressures are temporary is increasingly in question as supplies of everything from semiconductors to coal fall short of demand. Jitters about a stagflation-like shift in the global economy have already hurt stocks and bonds but some strategists are concerned more losses lie ahead.


'I'M GOING TO LEAD DIFFERENTLY HERE': EVAN SIDDALL ROCKED THE BOAT AT CMHC, BUT LOOKS TO CALM THE WATERS AT AIMCO

FP - Barbara Shector (2021-10-14)

So when he arrived in Edmonton in July as the freshly appointed chief executive of Alberta Investment Management Corp., a traditionally quiet manager of pensions, endowments and government fund assets, that was being buffeted by some controversies of its own, he probably felt right at home.


WELCOME TO BRITAIN, THE BANK SCAM CAPITAL OF THE WORLD

Reuters - Lawrence White and Iain Withers (2021-10-14)

It was an email offering a discount on an electric toothbrush that began the sequence of events that ruined Anna's life.


BLACKROCK REJECTS CALL FOR AUSTRALIA'S CBA TO STOP FOSSIL FUEL FUNDING

Reuters - Paulina Duran (2021-10-14)

BlackRock Inc (BLK.N), the world's largest money manager, voted against a resolution calling for Commonwealth Bank of Australia (CBA) (CBA.AX) to stop financing new fossil fuel projects, it said late on Wednesday.
CBA's largest shareholder said it opposed the resolution, which also asked the bank to publish targets to cut its fossil fuel exposures consistent with net zero greenhouse gas emissions by 2050, because it was overly prescriptive. read more


COLUMBIA BANKING, UMPQUA BANK TO MERGE IN $5 BILLION DEAL

WSJ - Orla McCaffrey and Kimberly Chin (2021-10-14)

Columbia Banking System Inc. and Umpqua Holdings Corp. said Tuesday they would merge in a roughly $5 billion all-stock deal that creates one of the largest based on the West Coast.


A GLOBAL SWISS BANK NAMED TORONTO THE 2ND BIGGEST REAL ESTATE BUBBLE IN THE WORLD

Better Dwelling - Daniel Wong (2021-10-14)

UBS said Toronto real home prices doubled over the past ten years, in part to population growth. In 2018, they observed a housing correction that was restoring some fundamentals. It carried through to 2019, but came to an abrupt stop by year-end. At that point, falling mortgage rates reignited high home price growth. It was helped by the Bank of Canada’s mortgage liquidity injections. Since the pandemic hit, this trend has accelerated even faster. 


PANDEMIC MOTIVATES SOME INSTITUTIONAL INVESTORS TO PUT GREATER EMPHASIS ON ESG

Investment Executive - IE (2021-10-14)

Among the 805 institutional asset owners, investment consultants and professionals surveyed for the fifth annual responsible investment survey, 29% said they’ve placed greater emphasis on ESG considerations due to the Covid-19 pandemic.


QUEBEC PENSION MANAGER AND WESTCAP INVEST $400-MILLION IN CRYPTOCURRENCY LENDING PLATFORM

G&M - Vanmala Subramaniam (2021-10-13)

The Caisse de dépôt et placement du Québec has made its inaugural investment in a cryptocurrency company, even amidst growing scrutiny of the digital-asset world from global regulators.


CANNABIS HAS BEEN LEGAL ALMOST 3 YEARS, YET RETAILERS SAY BANKS ARE SHUTTING THEM OUT

CBC - Joel Ballard (2021-10-13)

She said only two of her members in B.C. were able to access banking services with a traditional bank and that was due to their longstanding business relationships with the bank while operating in other industries.


MACKLEM AIMS TO TAKE BIGGER ROLE ON WORLD STAGE AFTER YEAR OF PUTTING OUT FIRES AT HOME

FP - Kevin Carmichael (2021-10-13)

Does the G20 even still meet? Maybe no one cares, but we probably should. Canada does better when the world’s bullies agree to down swords and respect a common set of rules and norms. Think back to 2008 and 2009. A smallish country’s banking system, apparently the soundest in the world, was still at the mercy of whatever shenanigans they were getting up to in the world’s major financial centres.
Canada has never really had the economic clout necessary to make people take notice, and it’s been a long time since we spent enough on the military to be of much help on security matters. But Ottawa has a tradition of sending technocrats out into the world to help keep the international conversation going, contributing ideas and/or time to efforts that have little direct connection to their day jobs.


WORLD AT RISK OF SUDDEN, STEEP SELLOFFS IN STOCKS, HOUSING MARKET, IMF WARNS

FP - Rich Miller and Jana Randow (2021-10-13)

Ultra-easy monetary policy has led to “pockets of market exuberance and rising financial leverage” that could unwind in disorderly ways and put the economic recovery at risk as credit tightens, the IMF said on Tuesday in its semi-annual Financial Stability Report.


ELECTRIC VEHICLES: IS THE REVOLUTION FINALLY HERE?

FP - Peter Campbell in London and Joe Miller in Munich (2021-10-13)

Demand was rising so quickly that the new targets were a third higher. Today the Volvo-backed company runs around 1,000 test drives a month in the UK alone. Each week, new spaces are booked up within an hour of becoming available.


FESTERING EVERGRANDE CONTAGION WORRIES PUSH CHINA SPREADS TO RECORD

Reuters - Andrew Galbraith (2021-10-13)

Worries over possible spiralling effects of a debt crisis at developer China Evergrande Group (3333.HK) drove Chinese high-yield spreads to record highs on Wednesday, days after the company missed another dollar bond deadline.


U.S. HOUSE VOTES FOR SHORT-TERM DEBT CEILING FIX, AVERTING DEFAULT

Reuters - Susan Cornwell and Richard Cowan (2021-10-13)

The Democratic-controlled U.S. House of Representatives gave final approval on Tuesday to legislation temporarily raising the government's borrowing limit to $28.9 trillion, pushing off the deadline for debt default only until December.


BLOCKCHAIN, AI, INTERNET OF THINGS WILL CHANGE BANKING, RBC CEO SAYS

Bloomberg - Kevin Orland (2021-10-13)

Blockchain and digital coins aren’t fully mature yet, but they will continue to evolve, McKay said during a virtual discussion as part of the Sibos financial-services conference. AI, which Royal Bank already has embedded in a trading platform, will expand to more and more decisions, and more data will be affected by machine learning, he said.


CANADIAN BOND YIELDS HIT PRE-PANDEMIC LEVELS, A SIGN HIGHER MORTGAGE RATES ARE NEAR

Better Dwelling - Daniel Wong (2021-10-13)

Canada’s 5-year bond yields surged to the highest level in over a year. The yield hit 1.244% on October 12, 2021, up 13.64 basis points (bps) from 5 days ago. Compared to a month before, yields have now climbed 44.19 bps — nearly a third of the current yield. This is an extremely sharp climb, especially for a recessionary environment. 


CANADA’S REAL ESTATE BUBBLE GREW FASTER THAN ANY G7 COUNTRY IN THE PAST 30 YEARS

Better Dwelling - Stephen Punwasi (2021-10-13)

Canadian residential real estate prices surged at one of the fastest rates on record. Real home prices are up 6.89% in Q2 2021 and are now 25.60% higher than the same quarter a year before. Both the quarterly and annual increases are the largest in the G7 by a wide margin. In fact, annual growth hasn’t been this high in a looong time. 


PROSPECTIVE SUITORS EMERGE FOR BRIDGING FINANCE

Investment Executive - James Langton (2021-10-13)

In the first phase of the bidding process, PwC received 13 non-binding letters of interest that presented a variety of proposals, according to its latest report. The proposals included offers to purchase some or all of Bridging’s assets, investment proposals (offers to restructure, recapitalize, or invest in the business), and so-called hybrid proposals that feature some combination of a sale and investment.


FOR BANKS, GOVERNANCE RISKS REMAIN KEY: FITCH

Investment Executive - James Langton (2021-10-13)

“In pleading guilty, NatWest acknowledges relevant operational failures,” the bank said in a release. “This included weaknesses in some of the bank’s automated systems as well as certain shortcomings in adherence to monitoring and investigations procedures.”


ONTARIO RELEASES NEW PROPOSED SECURITIES LAW FOR COMMENT

Investment Executive - James Langton (2021-10-13)

The Capital Markets Modernization Taskforce recommended adopting the CMA in January as part of a sweeping set of 74 reform recommendations, many of which are included in the proposed legislation.


THE TAMING OF THE CRYPTO

Investment Executive - James Langton (2021-10-13)

A joint notice from the Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) set out guidance on the marketing activities that may put crypto platforms offside with regulators. The notice highlights possible violations, such as making false or misleading claims, using promotional tactics that encourage risky or excessive trading, and failing to supervise the use of social media to communicate with clients and the general public.


CLEARINGHOUSES LEFT IN THE LURCH AS FINANCIAL INDUSTRY BUCKLES UP FOR A ‘NO EQUIVALENCE’ SCENARIO

Bobsguide - Anna Brunetti (2021-10-12)

“We continue to believe that different jurisdictions should adhere to global standards in the first instance – and that would mean that there would be some alignment at a high level […] – that would not be the same as needing to have exactly the same regulatory regime to ensure similar outcomes. 


THE MAJOR TRENDS BANKS ARE ADOPTING TO TACKLE RISK ARCHITECTURE ISSUES

Bobsguide - Supplier article (2021-10-12)

Riding the wave of new technologies, banks are exploring major trends in adopting more efficient risk architectures. Their management clearly understands that having a well-designed risk architecture will allow them to offer a greater service capacity, provide effective, efficient, and agile risk assessment, and enhance their risk analysis. As financial institutions expand into new asset classes and introduce new business strategies, improving their risk architecture will also help them meet potential demands as well as their current needs.


WEALTH A BIGGER FACTOR THAN INCOME IN VANCOUVER HOME SALES, NEW STUDY SUGGESTS

G&M - Rachelle Younglai (2021-10-12)

Now, new data show that a typical buyer in the lowest income quintile, with a median annual income of $29,800, spent a median of $499,000 on a home in 2018, according to the report from Canadian Housing Statistics Program (CHSP).


‘A REMARKABLE MILESTONE’: CANADIAN EMPLOYMENT JUMPS BACK TO PREPANDEMIC LEVELS

G&M - Matt Lundy (2021-10-12)

The country added 157,100 positions last month, building on a gain of 90,200 in August, Statistics Canada said Friday. Hiring was considerably stronger than the 60,000 positions that economists were expecting. The unemployment rate fell to 6.9 per cent from 7.1 per cent.


INSURER CO-OPERATORS GROUP BRANCHES OUT TO INVESTMENT SECTOR WITH LAUNCH OF MUTUAL FUND BUSINESS

G&M - Clare O'Hara (2021-10-12)

Property and casualty insurer the Co-operators Group Ltd.

CCS-PR-C-T +0.20%increase    has expanded into the investment sector with the launch of its own mutual fund division that will offer clients funds from some of Canada’s largest independent asset managers.


GLOBAL CORPORATE TAX OVERHAUL ADVANCES AS 136 NATIONS SIGN ON

FP - Leigh Thomas (2021-10-12)

After years of missed deadlines and wrangling over how to handle global tech firms such as Facebook Inc. and Alphabet Inc.’s Google, Friday’s deal included a 15 per cent minimum rate for corporations and the main parameters of how much profits of multinationals would be taxed in more countries: 25 per cent of profits over a 10 per cent margin.


SILICON VALLEY BANK EXPANDING INTO QUEBEC WITH THIRD CANADIAN OFFICE

FP - Stefanie Marotta (2021-10-12)

The California-based bank, which has US$163 billion in assets, is launching it’s third Canadian office in Montreal. The city ranked second in venture capital deals with $953 million in the first half of 2021, according to the Canadian Venture Capital & Private Equity Association.


EVERGRANDE MISSES 3RD ROUND OF BOND COUPON PAYMENTS, INTENSIFYING CONTAGION FEARS

Reuters - Clare Jim and Andrew Galbraith (2021-10-12)

Some bondholders said they did not receive coupon payments totalling $148 million on Evergrande's April 2022, April 2023 and April 2024 notes due by 0400 GMT on Tuesday, following two other payments it missed in September.


WE MAY VISIT YOU AT HOME, BRITISH FINANCIAL WATCHDOG WARNS BANK STAFF

Reuters - Huw Jones (2021-10-12)

Britain's financial watchdog warned banks and investment firms on Monday it could swoop on staff who work from home to check they are not harming customers or markets.


JANET YELLEN’S ABOVE-THE-FRAY APPROACH IS PUT TO A POLITICAL TEST

Bloomberg - Saleha Mohsin (2021-10-12)

President-elect Joe Biden chose former Federal Reserve Chair Janet Yellen to lead the U.S. Department of the Treasury for her gravitas, quiet consensus building, and attention to data—qualities that served her well during a decades-long central banking career. Democrats and Republicans alike laud her judgment.


DEPARTURE OF DEAN MANJURIS WON’T IMPACT GROWTH GOALS, RICHARDSON SAYS

Investment Executive - Katie Keir (2021-10-12)

Manjuris’s departure was noted in a brief internal memo this week by Kish Kapoor, president and CEO of Richardson Wealth parent company RF Capital Group Inc.


OSFI SUMMARIZES RESPONSES TO ITS CLIMATE RISK DISCUSSION PAPER

OSFI - OSFI (2021-10-12)

For FRFIs, OSFI agrees guidance on climate-related risks should be principles-based and consider the Canadian context as well as international developments. Furthermore, any such guidance would be best informed by results from the Bank of Canada-OSFI joint pilot project on climate risk scenarios, for which stakeholders can expect further communication later this year. Taking these factors into account, OSFI expects to communicate next steps on its climate-related policy work early next year.


IMF CUTS GLOBAL GROWTH FORECAST, SAYS CENTRAL BANKS MUST BE VIGILANT ON INFLATION

G&M - Mark Rendell (2021-10-12)

Central banks should be prepared to act quickly if inflation proves to be more persistent than expected, the International Monetary Fund said Tuesday.


HIGH INFLATION COULD BE ‘A LITTLE MORE PERSISTENT’ THAN EXPECTED, BOC’S MACKLEM SAYS

G&M - Mark Rendell (2021-10-08)

Bank of Canada governor Tiff Macklem says high inflation could be “a little more persistent” than the central bank previously thought, while the economic recovery could take longer than expected.


ANALYST SEE BUYING OPPORTUNITY IN LAGGING CANADIAN BANK STOCKS

G&M - Scott Barlow (2021-10-08)

“Canadian bank stocks have materially underperformed their U.S. peers over the past few months. A move that is not fully explained by fundamentals, creating what we view as an attractive buying opportunity. Over the past three months the gap in relative performance is 948 bps, with 624 bps coming over the past month as U.S. banks rallied strongly on the back of the most recent Fed announcement. From a valuation perspective the Canadian DSIBs are now trading at 10.7x 2022 consensus EPS versus 13.6x times for the large money-center U.S. banks, a discount of 21% ... Canadian banks delivered another strong quarter this summer (on average EPS was 11% better than consensus in Q3), that in many ways was more impressive than what the large US banks reported. Canadian results continue to be underpinned by a still booming mortgage market and a robust recovery in commercial loan growth even as US banks continue to see pressure on loan balances … The Rate Picture is Positive on Both Sides of the Border”


CANADIANS CAN BE CONFIDENT BANK OF CANADA WILL KEEP INFLATION UNDER CONTROL, GOVERNOR SAYS

G&M - Video (2021-10-08)

Bank of Canada governor Tiff Macklem wants to assure Canadians the central bank will work to keep inflation rates in the country under control amid pandemic-fueled price increases, supply issues.


CHINESE PROPERTY BONDS, SHARES SLUMP AS EVERGRANDE ANGST SPREADS

Reuters - Andrew Galbraith and Vidya Ranganathan (2021-10-08)

Bonds and shares issued by Chinese developers slumped on Friday as onshore markets returned from a week-long holiday with few clues as to how regulators propose to contain the contagion from cash-strapped China Evergrande Group's debt problems.


U.S. BANKS EXPECTED TO REPORT MIXED Q3 RESULTS, IFFY LOAN OUTLOOK

Reuters - David Henry (2021-10-08)

The largest U.S. lenders are expected to report moderately higher third-quarter profits next week as pandemic-related accounting adjustments that had doubled their earnings earlier this year taper off and business starts to return to normal.


FRENCH WATCHDOG CHIEF CALLS FOR BAN ON 'PAYMENT FOR ORDER FLOW' IN EU STOCK MARKET

Reuters - Huw Jones (2021-10-08)

"Payment for order flow," a practice critics say has fuelled bouts of frenzied retail share trading on Wall Street, should be banned in the European Union, France's stock market regulator said on Thursday.


BORIS JOHNSON’S HOUSING HEADACHES AREN’T OVER YET

Bloomberg - Therese Raphael (2021-10-08)

For a week that ended with a crowd-pleasing speech from the Conservative Party leader but little new policy substance, there was one notable exception. U.K. Prime Minister Boris Johnson’s government seems to have done a U-turn on its controversial “once in a generation” reforms to Britain’s house-building plan announced in August 2020. Whatever comes from the policy rethink will have implications both for Britain’s housing market and possibly the Tories’ political fortunes.


CANADIAN REAL ESTATE WILL SEE SUPPORT FROM POLICIES, BUT CORRECTION RISKS PERSIST: BMO

Better Dwelling (2021-10-08)

“Benchmark prices, which had been decelerating, sped up in August, as new listings are not keeping pace with robust demand,” he said, referring to national prices. “Prices have surged 21% in the past year, near the top of the global charts.”


News feed


Displayed data is for demo purposes. To login or subscribe for full access, click here.

CANADIAN TECH FIRM LIGHTSPEED WALLOPED BY SHORT-SELLER ATTACK

CBC - Pete Evans (2021-12-30)

On Wednesday, Spruce Point Management, an American short-selling investment firm with a history of targeting Canadian companies, put out a lengthy report on Montreal-based Lightspeed Inc., alleging the company has covered up "massive inflation" of how many customers it has, how much money it makes from them, and how much growth potential it has.


AMID BIDDING WARS, BUYERS ARE OMITTING HOME INSPECTIONS. HERE’S WHY THAT’S DANGEROUS

G&M - Robert Mclister (2021-10-22)

In the past 18 months, multiple home inspection companies have seen their volumes drop by 50 per cent, particularly in hot markets, said Alan Carson, chief executive officer of home inspection firm Carson Dunlop, and a 43-year industry veteran.


BITCOIN ENERGY CRITICS SHOULD CHECK THEIR OWN FOOTPRINTS FIRST

FP - Ethan Lou (2021-10-22)

Walch, who had taught the subject in her Law of Money class, responded, “Fair question.”


CANADIAN BANK DIVIDENDS ARE POISED TO RISE — A LOT

FP - Rob Wessel (2021-10-22)

Canadian bank dividends, in our view, are poised to rise — a lot. In August, before Q3 earnings season, we argued there was no policy rationale for the continuing moratorium on dividend increases. At the time, earnings and capital were already at all-time highs. Moreover, the banks had set aside an enormous amount, approximately $21.4 billion, of allowances against performing loans, courtesy of the new provision accounting adopted in 2018. This huge reserve represents a powerful firewall against unexpected losses. There has literally never been a time in Canadian bank history where the sector was in a stronger position to pay dividends.