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

Canadian real estate and government, March 29

The latest Canadian real estate and government news. Risk of collapse, end of QE and rate rise are some of the issues discussed. Also the governments poor foreign policies on Ukraine are covered.
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FIRE report January 12th

Indigenous banking part 2 a continuation of earlier discussion of First Nations Bank. Other news:-Inflation-M&A under scrutiny-RBC has eyes on Europe
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BOC and reconciliation with Indigenous people

The Bank of Canada and other central banks, in conjunction with indigenous leaders want reconciliation and better economic outcomes for individuals. This video explores what is happening, gives the back story and sets the stage for a more in-depth analysis.
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Nov 26 FIRE report

Inflation and tariffs hit Trudeau in the face. Oil route as new strain goes viral. BNPL benefits questioned and investors open their wallets to receive dividends.
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FSIM FIRE report Nov 23

Duobank/Fairstone merger & Amozon boycott of Visa along with recent banking, insurance and real estate news from Canada.
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Nov 18th FIRE report

The latest financial news from the financial services industry monitor. Insurance companies should know that in 1990 BC flooding devastated the same flood plains as today. This report features coverage of insane inflation, interest rates hikes and the ongoing real estate melt-up.
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Poloz debunked, Nov 12 FIRE report

Poloz is wrong about inflation, university pension funds are out of their league, Home Capital run away, real estate wars and more from the financial services industry monitor.
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Central bank digital currencies: foundational prin

Central bank digital currencies: foundational principles and core features
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Nov 5th FIRE report

Topics todayDividends are backHigher interest rates are comingCOP26: Central bankers making miners richTO real estate melt-up
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FIRE report November 2nd

The latest Canadian FIRE news covering inflation risk and opportunities, Canadian Western bank expansion, governance and stablecoins.
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Canadian real estate February 24

Recap of recent real estate news in Canada. Tiff Macklem and market exuberance, cottage country price appreciation and the rise of lumber prices.
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Real estate: Feb 9, bulls vs bears

Bulls versus the bears, this week in the Canadian real estate industry.
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Feb 1, The Dumb Money Real Estate Vid

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.
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January real estate report 2021

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.
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December 4th real estate report

Taxes are going up, TO condo prices are going down and recreational property up 15% to 40% in the Canadian market.
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Real estate, mortgage debt to income ratio improve

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.
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Real estate: fiscal conservatism/ponzi neoliberali

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.
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Caution for real estate investors, Oct 14th report

October 14th real estate report describing the issues in the market the last two weeks.
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Canadian bank industry overview - part 1

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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Why insurance should partner with flood-claim.com

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

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.
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Current state of fintech in Canada

Mr. Michael R. King, Tangerine Chair in Finance and Co-Director, Scotiabank Digital Banking Lab / Ivey Business School at Western University
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XE.com explains their Big Data and AI strategy.

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.
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Greenpeace urges TD bank boycott

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.
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Insurance flood US vs Can comparison.

This video provides an overview of the main differences between Canada's approach to overland flooding versus the US approach.
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Canadian bank industry overview part 5

Canadian bank overview part 5, medium-large banks. Banks include Manulife, Tangerine and Laurentian Bank.
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Canadian banking industry overview part 4

Canadian banking industry overview of Canadian Tire Bank, Presidents Choice Financial, Equitable Bank, B2B Bank
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Part 3 Canadian bank industry overview

Overview of small-medium size banks in Canada. Banks covered include Versabank, Hollis Bank, Equity Bank and Caisse Populaire Acadienne.
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Canadian banking overview - part 2

Review of small banks including Bridgewater,Vancity Bank, Concentra, Wealth One, Zag...
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Death to bitcoin, long live bitcoin

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

RBC invested $24 million into Wave Technologies and now they will roll out Waves accounting, invoicing, reporting and billing platform to SMEs.
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Deposits have skyrocketed since the start of the p

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.
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About

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

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

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

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Research

abcd

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/GamingEventProposal-printsample--en-final.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_original.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

BANK OF ENGLAND MULLS BIGGEST INTEREST-RATE RISE IN 33 YEARS

FP (2023-02-19)

With prices rising five times faster than the U.K. central bank’s two per cent target and the pound falling almost daily, policy makers led by Bank of England Governor Andrew Bailey are under pressure to step up the pace of monetary tightening.


PENSION FUNDS SUFFER LARGEST INVESTMENT LOSSES SINCE 2008 FINANCIAL CRISIS

G&M - James Bradshaw (2023-02-01)

Canadian defined-benefit pension plans collectively suffered their largest losses since the 2008 financial crisis in 2022, recording a median decline in assets of 10.3 per cent despite a partial recovery in the final months of the year, according to a survey from Royal Bank of Canada RY-T.


OSC NEEDS TO TAKE ACCOUNTABILITY SERIOUSLY OR RISK LOSING PUBLIC CONFIDENCE

G&M - Ken Kivenko (2023-02-01)

In 1994, during the tenure of one of the authors as Ontario Securities Commission chair, the provincial government conferred rule-making authority on the OSC. In return, the commission agreed to a more robust accountability regime, including requirements to publish, for public comment, proposed OSC rules, alternatives considered and a cost-benefit analysis of the proposals.


CPP AND OAS: HOW THE FINANCIAL SUPPORTS AFFECT YOUR RETIREMENT PLANS

G&M - Rosemary Counter (2023-02-01)

Whether retirement is decades away or just around the corner, like most Canadians you’re thinking ahead, and well prepared with all the funds you’ll ever need. Just kidding! Most of us have far less tucked away than we should, something the government knows and plans for accordingly. But what kind of government help can you expect when you turn 65? And will it be enough to live long and prosper? Here, we break down the main financial supports from government.


PAYMENTS FIRM PAYPAL TO LAY OFF 7% OF ITS WORKFORCE TO CUT COSTS

Yahoo Finance - Manya Saini (2023-02-01)

Shares of the payments firm, which lost about 60% of their value last year, were up about 2% in afternoon trading.


INVESTORS NOT WALKING THE TALK WHEN VOTING ON CLIMATE COMMITMENTS: REPORT

Yahoo Finance (2023-02-01)

The report from Investors for Paris Compliance (IPC) looks at the voting records on shareholder proposals by 19 Canadian members of Climate Action 100+, a global coalition with around 700 members representing over $68 trillion in assets under management.


HIGH INTEREST RATES BRINGING BALANCE AFTER YEARS OF HOUSING OVERSPENDING

Yahoo Finance - Kevin Carmichael (2023-02-01)

Population growth and limited supply were responsible for some of the demand that drove housing prices to rare heights over the past decade, but much of it was caused by ultra-low interest rates and a decision by households to pile up dangerous levels of debt. Now, interest rates are higher than some new homebuyers have ever seen, and the housing bubble is deflating.


LEBANON DEVALUES, STILL LEAVES POUND FAR AWAY FROM BLACK MARKET

Yahoo Finance - Dana Khraiche (2023-02-01)

Banque du Liban, the nation’s central bank, on Wednesday set the pound at 15,000 per dollar, devaluing the official rate of 1,500 by 90%, according to people familiar with the matter. It also replaced two separate rates offered on foreign-currency deposits — at 8,000 and 12,000 each — with the new level.


HOMEOWNERS NOW BETTER POSITIONED TO WEATHER A DOWNTURN THAN A DECADE AGO, REPORT ARGUES

FP - Shantaé Campbell (2023-02-01)

The report, released Jan. 31, found that a key metric known as loan-to-value ratio (LTV) — which measures the size of the mortgage relative to the value of a home — has declined to 57 per cent today from 63 per cent in 2012.  A lower LTV is less risky because it means the home owner has greater equity in their home and less debt.
“While challenges certainly exist in today’s high interest rate environment, risk factors for the overall housing market are greatly reduced when homeowners own a larger proportion of their homes,” RE/MAX Canada president Christopher Alexander said. “With half of loan-to-value ratios within the 50- and 60-per cent range in Canadian markets, homeowners are better able to withstand downward pressure on housing values and fewer will find themselves underwater, carrying upside down loans.” 


5 HIGHLIGHTS FROM DAVID ROSENBERG'S 'YEAR OF THE RABBIT' EVENT

Yahoo Finance - Denise Paglinawan (2023-02-01)

“The inflation dragon has been slain,” the head of Rosenberg Research said.

He said it was not surprising that efforts to stimulate demand by the Bank of Canada and the federal government against the background of supply chain shocks caused a burst of inflation, but he argued that even at 18 months, the episode was transitory in economic terms.


END OF EASY-CASH ERA IS GOING TO HURT

Reuters (2023-02-01)

 The end of the easy-cash era is over and its impact yet to be felt on world markets, hopeful that the pain of aggressive rate hikes and high inflation has passed.


ONTARIO TEACHERS’ $181 BILLION PENSION FUND PAUSES PRIVATE CHINA DEALS

Bloomberg - Layan Odeh (2023-02-01)

Ontario Teachers’ Pension Plan, a Canadian fund that manages C$242.5 billion ($181 billion) of assets, has paused direct investing in private assets in China, according to people familiar with the matter. 


TORONTO CONDO SALES ARE UNUSUALLY WEAK, INVESTORS CAPTURE A LARGER SHARE

Better Dwelling (2023-02-01)

The less volatile benchmark price also showed flat movements across TRREB. The condo benchmark fell to $703,000 in December, once again virtually unchanged and just a few bucks off. Not the boom many were hoping for, but at the same time prices are faring better than single-family homes. 


CIFSC RELEASES INAUGURAL LIST OF CANADIAN RESPONSIBLE INVESTING FUNDS

Investment Executive - Melissa Shin (2023-02-01)

The framework classifies the universe of Canadian-listed and domiciled responsible, sustainable and ESG funds into six categories.


GIVEN ALL THE INTEREST IN GICS, HOW ABOUT SOME LOVE FOR ANNUITIES? THEY’RE GUARANTEED, TOO

G&M - Rob Carrick (2023-01-31)

A thought for retirees cringing at their losses in both stocks and bonds last year: Consider the annuity alternative for some of your money.


RISK AVERSION WEIGHS ON CANADIAN DOLLAR AHEAD OF FED RATE DECISION

G&M - Fergal Smith (2023-01-31)

The Canadian dollar CADUSD weakened against its U.S. counterpart on Monday, pulling back from its strongest level in over two months, as investors turned cautious ahead of an expected interest rate hike this week by the Federal Reserve.


BOFA EXPECTS CANADA STOCKS TO CONTINUE TROUNCING THEIR US RIVALS

Yahoo Finance - Geoffrey Morgan (2023-01-31)

“Cash is becoming scarce,” the strategists warned, encouraging investors to own stocks that generate and return cash to shareholders in the face of a possible recession. The bank said it’s easier to find those stocks in Canada’s main index than in the S&P 500.


NIGERIA'S PUSH FOR REDESIGNED CURRENCY CREATES CASH SHORTAGE

Yahoo Finance (2023-01-31)

But the process to replace the old currency notes is “rushed,” and commercial banks don't have enough new cash to give to customers, pushing demand higher than supply, said Ayokunle Olubunmi with Nigeria’s main ratings agency, Agusto and Co.


NORWAY’S WEALTH FUND LOSES 14% AS INFLATION, WAR HIT MARKETS

Yahoo Finance - Kari Lundgren (2023-01-31)

The fund that manages Norway’s fossil wealth lost 14.1% in 2022, equivalent to about $164 billion, according to a statement on Tuesday. It’s the world’s biggest single owner of equities, and its returns highly dependent on market movements.


BIG OIL TO REAP RECORD $200 BILLION PROFIT, POSITIONED TO KEEP SHARE BUYBACKS AND DIVIDEND HIKES COMING

FP - Kevin Crowley and William Mathis (2023-01-31)

Exxon Mobil Corp., Chevron Corp., Shell PLC, TotalEnergies SE and BP PLC reaped almost US$200 billion collectively last year but fears of an economic slowdown, plunging natural gas prices, cost inflation and uncertainty over China’s re-opening are dimming the outlook for 2023.
The five companies are expected to report $198.7 billion in combined 2022 profit in coming days, 50 per cent higher than the previous annual record set more than a decade ago, according to data compiled by Bloomberg. 


CENTRAL BANKS BOUGHT THE MOST GOLD SINCE 1967 LAST YEAR, WGC SAYS

Reuters (2023-01-31)

Central banks added a whopping 1,136 tonnes of gold worth some $70 billion to their stockpiles in 2022, by far the most of any year since 1967, the World Gold Council (WGC) said on Tuesday.


EURO ZONE BANKS TIGHTEN CREDIT BY MOST SINCE DEBT CRISIS, ECB SAYS

Reuters (2023-01-31)

Euro zone banks have tightened companies' access to credit by the most since the 2011 debt crisis and expect to continue doing so as they turn more pessimistic on the economy amid rising borrowing costs, a European Central Bank survey showed on Tuesday.


SWEDBANK'S PROFIT BEATS FORECASTS AS IT RIDES RATE RISES

Reuters - Niklas Pollard (2023-01-31)

Swedish bank Swedbank (SWEDa.ST) reported a bigger-than-expected rise in net profit for the fourth quarter and proposed raising its annual dividend on Tuesday as surging central bank interest rates helped lift interest income.


CANADIANS ARE STILL USING THEIR HOMES AS ATMS, JUST NOT WITH HELOCS

Better Dwelling (2023-01-31)

HELOC debt hit $171.6 billion in November, making a negligible decline of $24 million. Steady growth was still present, with the balance 2.9% (+$4.9 billion) higher than last year. We’ll circle back to why this number is relatively small, but first let’s look at how this compares to recent data.


FED SET TO IMPOSE SMALLER HIKE, MAY HINT OF FEWER INCREASES

Investment Executive - Christopher Rugaber (2023-01-31)

When its latest meeting ends Wednesday, the 19-member policymaking committee is expected to raise its key short-term rate, which affects many business and consumer loans, by a quarter-point. In doing so, it would elevate the rate to a range of 4.5% to 4.75%, its highest level in 15 years. The Fed’s move would follow a half-point rate hike in December and four three-quarter point hikes before that.


FEDERAL GOVERNMENT POSTS $3.6 BILLION DEFICIT BETWEEN APRIL AND NOVEMBER

Investment Executive (2023-01-31)

Public debt charges were up $6.1 billion or 36.8%, which the finance department attributes to rising interest rates and elevated inflation.


NATIONAL BANK CEO LAURENT FERREIRA PREACHES FOCUS, DISCIPLINE AS RIVALS RACE TO BULK UP

G&M - James Bradshaw (2023-01-30)

Laurent Ferreira doesn’t like the world “scale.”


CI FINANCIAL’S GRAND PLANS FOR U.S. EXPANSION LEAVE CANADA BEHIND

G&M - Clare O'Hara (2023-01-30)

Across from the East Hotel, where Miami’s rich, young and beautiful party nightly at a rooftop bar called Sugar, CI Financial Inc. CIX-T chief executive officer Kurt MacAlpine is building the U.S. future of one of Canada’s grandest old asset managers.


IF YOUR BANK ACCENTUATES THE POSITIVE, BAD NEWS MAY FOLLOW

G&M - David Milstead (2023-01-30)

As Canada’s big banks wrapped up their past fiscal year and looked forward into a period of economic uncertainty, they forecast that things were going to be … pretty okay, actually.


CANADA’S LOWEST MORTGAGE RATES AFTER THE BANK OF CANADA’S RATE HIKE

G&M - Abbie Parr (2023-01-30)

Variable mortgage rates just broke a two-decade high. That’s the bad news.


RENT INCREASED MORE THAN 18% LAST YEAR FOR NEW TENANTS, NEW NUMBERS SHOW

CBC - Pete Evans (2023-01-30)

Booming demand for apartments pushed up the price to get one, too, with the average rent hitting $1,258 a month. That was up by 5.6 per cent from the previous year's level, and roughly twice the annual average seen for the past 30 years.


WHY THE BANK OF CANADA CAN'T CUT RATES THIS YEAR, DESPITE WHAT THE MARKET SAYS

Yahoo Finance - Michelle Zadikian (2023-01-30)

On Wednesday, the Bank lifted its benchmark rate by a quarter point to 4.5 per cent and said it's looking to hold off on further hikes for the time being to assess the impact of higher rates on the economy. It's widely thought that interest rate moves take 12-18 months to fully filter through the economy.


GOLDMAN SACHS RESTRUCTURES RUSSIAN ASSET HOLDINGS -RBC, CITING SOURCES

Yahoo Finance (2023-01-30)

Goldman Sachs, which in March said it was winding down its business in Russia, in November said it had reduced its credit exposure to Russia by 9% to $205 million in the third quarter.


BANK OF CANADA EMERGES AS THE TRENDSETTER ON INTEREST RATES

FP - Kevin Carmichael (2023-01-30)

Jean Boivin, the former Bank of Canada deputy governor, was on a video call organized by the Canadian Association of Business Economics a few hours after the central bank issued its conditional pause on interest rate increases this week.


CREDIT UNIONS THAT OFFER HOMEBUYERS WAY AROUND STRESS TESTS SET TO GROW

FP - Barbara Shecter (2023-01-30)

There’s a multi-million-dollar corner of Canada’s financial system where a stringent “stress test” imposed by the Office of the Superintendent of Financial Services was never adopted. It’s already attracting homeowners seeking an easier path to qualify for a mortgage amid rising interest rates and it’s poised to grow further as the spectre of even tougher mortgage qualification rules threaten to push bank loans out of reach for homebuyers.
Provincially regulated credit unions such as Meridian and DUCA are not bound by federal rules, and can choose whether or not to apply OSFI’s strictest qualifying standards for uninsured mortgages, subject to any rules adopted by their provincial regulators.
While the credit union sector has chosen not to widely promote so-called “contract-rate qualification” mortgages — where borrowers are assessed based on actual interest rate they will pay rather than OSFI’s stress test — figures released by Canadian Credit Union Association show the lenders have been steadily picking up business, growing their mortgage books by 4.1 per cent in the second quarter and two per cent in the third quarter of 2022.


INSURERS HIT WITH THOUSANDS OF CLAIMS AS RAINS SOAK NEW ZEALAND

Reuters - Harish Sridharan (2023-01-30)

Major insurers operating in New Zealand including Insurance Australia Group (IAG.AX) and Suncorp Group (SUN.AX) have cumulatively received over 9,000 claims so far following severe storms and flooding in and around the biggest city, Auckland.


IT WON’T TAKE MUCH FOR THE ECB TO CRUSH RATE-CUT BETS NEXT WEEK

Bloomberg - Alice Glendhill (2023-01-30)

The stage is set for a clash between traders betting on interest-rate cuts and Christine Lagarde, who’s ready — once again — to hammer home the need to stamp out inflation. 


62 FUNDCOS RECEIVE FUNDGRADE A+ AWARDS FOR 2022

Investment Executive (2023-01-30)

CI Investments Inc. had the most honoured funds, 39, followed by The Canada Life Assurance Co. (31) and RBC Global Asset Management Inc. (28).


WOCCU GIVES GLOBAL UPDATE ON THE KEY REGULATORY ISSUES FOR CREDIT UNIONS IN 2023

Coop news (2023-01-30)

“International standard setters are beginning to understand the critical role that credit unions play in providing responsible and affordable financial services,” said Andrew Price, Woccu’s senior VP of Aadvocacy and general counsel. “This is a key driver for inclusive and resilient growth around the world. Shaping the regulatory frameworks that help maximise this potential will allow credit unions to be the catalyst for rebuilding coming out of the pandemic and throughout an anticipated global recession.”


BANKS WANT TO PROVE THEY CAN INNOVATE DIGITAL WALLETS, BUT CAN THEY?

Pymnts - Karen Webster (2023-01-30)

One of the worst-kept secrets in payments was finally confirmed last week. That’s when Early Warning Services (EWS) announced its plans to launch a digital bank wallet in the second half of 2023 to challenge PayPal and named a former Mastercard exec as the CEO to lead the initiative. EWS is the digital payments platform owned by Bank of AmericaCapital OneJ.P. MorganPNCTruistU.S. Bank and Wells Fargo. EWS operates the Zelle P2P network.


NETHERLANDS AND JAPAN JOIN US IN RESTRICTING CHIP EXPORTS TO CHINA

The Verge - Jon Porter (2023-01-30)

The new restrictions are expected to prevent the sale of “at least some” of these DUV machines, Bloomberg previously noted, which will further limit the ability of Chinese companies to produce advanced chips and set up production lines. ASML CEO Peter Wennink previously told CNBC that China accounted for around 15 percent of the company’s sales in 2022. 


WASHINGTON HALTS LICENCES FOR US COMPANIES TO EXPORT TO HUAWEI

FT - DEMETRI SEVASTOPULO (2023-01-30)

The move marks the latest prong in Washington’s campaign to curb the tech company, which national security officials believe helps China engage in espionage. The Trump administration imposed severe restrictions on exporting technology to Huawei, but the commerce department had granted licences to some companies for products that were not related to high-speed 5G telecom networks.


EY CAME CLOSE TO UNCOVERING WIRECARD FRAUD IN 2016

FT - Olaf Storbeck (2023-01-30)

EY came close to discovering fraud at the heart of Wirecard in 2016, when the collapsed payments firm’s trustee in Singapore accidentally told the auditor the truth, stating he did not hold any money on its behalf.


CRYPTO ETFS ROAR INTO LIFE WITH EYE-POPPING 2023 RETURNS

FT - Steve Johnson (2023-01-30)

A swarm of cryptocurrency-focused equity exchange traded funds have enjoyed astonishing starts to 2023, chalking up sharp gains rarely seen by diversified stock funds.


MASTERMIND IN JPMORGAN HACK LEFT US FOR ISRAEL, HIS FATHER SAYS

Bloomberg - Helena Bedwell, David Voreacos (2023-01-27)

Gery Shalon, the mastermind of sweeping hacks on the US financial system early last decade, returned to Israel after being allowed to leave US custody two years ago, his father said in an interview broadcast in the Republic of Georgia.


CANADIAN REAL ESTATE PRICES EXPECTED TO FALL FURTHER: BANK OF CANADA

Better Dwelling (2023-01-27)

Canadian home sales are expected to firm, after making a sharp decline. Resales through the MLS in 2022 fell 25.2% compared to the previous year. The volume is now way below the average, and some normalization is reasonable to expect. Home prices have dropped, at least a little, and are likely to attract buyers.


INVESTORS POUR MONEY INTO EMERGING MARKETS AT NEAR-RECORD RATE

FT - Jonathan Wheatley (2023-01-27)

Investors are piling into emerging market stocks and bonds at a near-record rate, as falling inflation and the reopening of China’s sprawling economy help reverse last year’s slide.


THE UK LED THE WORLD IN OPEN BANKING — AND THEN GOT LEFT BEHIND

FT - Helen Thomas (2023-01-27)

Whether open banking has been a success very much depends on who you ask.


BLACKSTONE FACES $5BN OF WITHDRAWAL REQUESTS FROM MORE PROPERTY FUNDS

FT - Antoine Gara (2023-01-27)

Blackstone is facing more than $5bn in redemption requests from another set of property funds, adding to pressure on the world’s largest alternative asset manager as investors try to pull out their cash.


VANGUARD’S NET INFLOWS FALL BY HALF TO $151BN

FT - Chris Flood (2023-01-27)

New cash flows for Vanguard fell by half last year in a slowdown that leaves the world’s second-largest asset manager trailing farther behind its larger rival and closest competitor BlackRock.


HOW DID SAM BANKMAN-FRIED’S ALAMEDA RESEARCH LOSE SO MUCH MONEY?

Forbes - Jeff Kauflin, Emily Mason and Nina Bambysheva (2023-01-27)

A week after the dramatic collapse of Sam Bankman-Fried’s tangled web of crypto companies, countless unanswered questions remain. One of the biggest: How did his trading firm, Alameda Research, apparently lose billions of dollars? Those losses appear to have prompted someone in Bankman-Fried’s operation to improperly transfer customer funds from trading platform FTX to Alameda, a decision that left FTX vulnerable to a withdrawal run that precipitated the sudden bankruptcy.

 


BANK OF AMERICA’S AND CHASE’S DIGITAL WALLET IS DOA (DOOMED ON ANNOUNCEMENT)

Forbes - Ron Shevlin (2023-01-27)

Based on a Wall Street Journal article, CNBC reported some large banks, including Wells Fargo, JPMorgan Chase, and Bank of America are:


BANK OF CANADA PREDICTS FURTHER DIP IN HOME PRICES AFTER DELIVERING QUARTER-POINT RATE HIKE

G&M - Rachelle Younglai (2023-01-26)

The Bank of Canada is predicting home prices will decline further after it raised interest rates Wednesday for the eighth consecutive time, but it expects sales activity to pick up later in the year.


MANULIFE SAYS DEAL WITH CLEVELAND CLINIC MARKS A BIG STEP IN BECOMING A PROVIDER OF PREVENTATIVE HEALTH CARE SOLUTIONS

G&M - Clare O'Hara (2023-01-26)

Manulife Financial Corp. is joining forces with U.S.-owned medical advisory firm Cleveland Clinic Canada in a major step toward expanding the insurer’s role to becoming a provider of preventative health care services for Canadians.


BANK OF CANADA DELIVERS QUARTER-POINT RATE HIKE, SIGNALS PAUSE TO FURTHER INCREASES

G&M - Mark Rendell (2023-01-26)

The Bank of Canada increased interest rates again on Wednesday but said that it expects to hold off on further rate hikes, making it the first major central bank to signal an end to monetary policy tightening.


EUROPEAN STRIKES, LABOUR UNREST COULD COME TO CANADA IN A WINTER OF DISCONTENT

G&M - Bea Bruske (2023-01-26)

Lockdowns, Russia’s attack on Ukraine, convoy occupations and worker walkouts – last year wasn’t easy.


CANADA EXPECTED TO BUCK TREND OF BIG INVESTMENT BANKING LAYOFFS

Yahoo Finance - Maiya Keidan (2023-01-26)

Yet, Canadian banks have not announced layoffs and some even say they may increase headcount, though dealmaking in the new year is down nearly 50% to $3.2 billion from a year ago, according to Dealogic.


CHRYSTIA FREELAND FINALLY OFFERS PLAN TO HELP BANK OF CANADA COVER ITS LOSSES

FP - Kevin Carmichael (2023-01-26)

“The minister of finance has recently communicated to me that the government intends to introduce legislative amendments that will allow the bank to retain earnings to offset losses,” Macklem said at a press conference in Ottawa. “It will allow, on a temporary basis, the Bank of Canada to retain earnings rather than return them to the government for the purposes of covering losses.”


U.S. INFLATION ROLLER COASTER PROMPTS FRESH LOOK AT LONG-IGNORED MONEY SUPPLY

Yahoo Finance - Michael S. Derby (2023-01-26)

Money-supply purists have long argued that the country's ever-growing stock of money was an inflation powder keg. It's an argument that lost credibility with policymakers in the record-long economic expansion before the pandemic when M2 rose by more than 80% but inflation never rose sustainably above the Fed's 2% target and spent much of that decade notably below it.


SEB BANK BEATS EXPECTATIONS

Reuters - Niklas Pollard (2023-01-26)

Net profit at Sweden's top corporate bank rose to 7.43 billion Swedish crowns ($728.8 million) from 6.20 billion a year earlier, beating a mean forecast of 7.15 billion in a Refinitiv poll of analysts.


WHY QT IS FORCING THE ECB TO RETHINK ITS MONETARY-POLICY LEVERS

Bloomberg - Jana Randow (2023-01-26)

Market ructions are the immediate worry as the European Central Bank prepares to retreat from €5 trillion ($5.4 trillion) of bond holdings, but the exit is raising more fundamental questions about how it will set interest rates over the coming years.


NYSE MAYHEM TRACED TO A STAFFER WHO LEFT A BACKUP SYSTEM RUNNING

Bloomberg - Katherine Doherty (2023-01-26)

More than 700 miles from Wall Street, the New York Stock Exchange’s backup data center on Cermak Road in Chicago is supposed to safeguard US markets, standing by at all hours in case disaster ever strikes the world’s largest venue for trading shares.


SEC SEEKS “SKIN IN THE GAME” FOR SECURITIZATIONS

Investment Executive - James Langton (2023-01-26)

The proposal is designed to ensure that ABS transactions aren’t structured in a way that puts the interests of the underwriters, sponsors, and other parties involved with crafting a transaction, ahead of investors in the vehicles.


BILL PAY IS THE KILLER APP FOR MOBILE WALLETS ... SO FAR

Pymnts (2023-01-26)

In terms of their most popular uses today, we found a statistical dead-heat between bill pay (49.3%) and transfers to/from bank accounts (49.2%), and the study revealed other uses that are making younger demographics particularly fond of this digital innovation.


CONSUMER PROTECTION IS THE NEXT STEP FOR THE BNPL MARKETPLACE

Forbes - Bryce Deeney (2023-01-26)

The accelerated growth of buy now, pay later usage led the global industry to reach a $179.5 billion valuation by mid-2022. Not only are profits surging, but the customer base is also expanding rapidly. Juniper Research recently predicted that BNPL will exceed 900 million users globally by 2027, up from 360 million last year. This 150% anticipated spike highlights the increasing demand by consumers for more low-cost credit solutions and payment flexibility.

BNPL lets consumers break down their purchases into a series of smaller installments. The popularity of this deferred payment plan ultimately comes down to its convenience, transparency and accessibility for those of varying credit histories. The acceleration of e-commerce and the increase of discount shopping occasions such as Prime Day, Black Friday and Cyber Monday have contributed to BNPL’s success in recent years.


MONETARY POLICY REPORT PRESS CONFERENCE OPENING STATEMENT

BOC (2023-01-26)

Two weeks from now, on February 8, we will publish for the first time a more detailed summary of Governing Council’s deliberations. This summary will provide more insight into our decision making, so I can be brief today. But let me say a few words about our economic outlook.


WHAT CANADA’S LOWEST MORTGAGE RATES LOOK LIKE AFTER THE BANK OF CANADA’S RATE HIKE

G&M - Robert Mclister (2023-01-26)

Variable mortgage rates just broke a two-decade high. That’s the bad news.


AS THE BOC TAKES A PAUSE FROM INTEREST RATE HIKES, ALL EYES ARE ON THE LABOUR MARKET

G&M - Nojoud Al Mallees (2023-01-26)

After a series of historic interest rate hikes, economists are left wondering whether job losses are next.


HSBC SHARES BECOME MOST OVERBOUGHT SINCE 1986 AFTER 50% RALLY

Yahoo Finance - John Cheng and Denise Wee (2023-01-26)

A 50% rally has made shares of HSBC Holdings Plc the most overbought in more than three decades, as investors piled back into the retail favorite given a brighter outlook from China’s reopening.


STRIPE HIRES GOLDMAN, JP MORGAN TO EXPLORE LISTING AND PRIVATE SHARE SALE - SOURCES

Yahoo Finance - Krystal Hu, Sneha Bhowmik and Juby Babu (2023-01-26)

The move, communicated to Stripe employees in an internal memo earlier on Thursday, would give them an opportunity to sell shares in the company either to private investors or in a public market, the sources said.


MORTGAGE RENEWALS PUT HOMEOWNERS IN 'PRECARIOUS POSITION'

FP - Larysa Harapyn (2023-01-26)

Leah Zlatkin, Lowest rates expert, Lowestrates.ca, talks with Financial Post’s Larysa Harapyn about how mortgage renewals put homeowners in a ‘precarious position.’


CANADA HAS $300-BILLION CASH BUFFER TO SOFTEN BLOW OF COMING RECESSION, SAYS RBC'S CEO

FP - Pamela Heaven (2023-01-26)

“Unprecedented liquidity” in the market will buoy Canada’s economy as it moves through a modest recession, said the head of the country’s largest bank.


CANADA'S BIG BANKS EXPECTED TO BUCK U.S. LAYOFF TREND, HOLD ONTO STAFF

FP - Maiya Keidan (2023-01-26)

Some of Canada’s top investment banks plan to maintain staffing levels to meet client expectations for the same level of coverage through the ups and downs of business cycles, head hunters and industry executives said.


HONG KONG HOME PRICES DROP 15.6% IN 2022, SNAP 13 YEARS OF GAIN

Reuters (2023-01-26)

Private home prices in Hong Kong, one of the most unaffordable territories in the world, fell 15.6% in 2022 in the first annual drop since 2008, official data showed on Friday.


MORGAN STANLEY PENALIZES EMPLOYEES AS MUCH AS $1 MILLION FOR WHATSAPP BREACHES

Reuters - Lananh Nguyen (2023-01-26)

Morgan Stanley (MS.N) has imposed financial penalties on employees who used messaging platforms such as WhatsApp for company business, according to two sources familiar with the situation.


VISA REVENUE GROWTH SLOWS MORE AS TOUGH ECONOMY SOBERS SPENDING

Reuters - Mehnaz Yasmin (2023-01-26)

Visa Inc's (V.N) revenue growth continued to wind back to pre-pandemic levels in the first quarter as the post-lockdown travel craze ebbed and consumer spending slowed in a tough economy.


BOFA PROMOTES 360 EMPLOYEES TO MANAGING DIRECTORS IN DIVERSITY PUSH

Reuters (2023-01-26)

Bank of America Corp (BAC.N) has promoted 360 employees to managing directors, with more than 50% of them representing women and people of color, a source familiar with the matter told Reuters on Thursday.


BANK OF CANADA’S WAR ON INFLATION GENERATES UNCERTAINTY AMONG INVESTORS

G&M - Tim Shufelt (2023-01-25)

Nearly a year after the Bank of Canada declared war on inflation, investors have no idea what’s coming next.


''LIQUIDITY'' A CRUCIAL AND WIDELY MISUNDERSTOOD DRIVER OF FINANCIAL MARKETS

Macro Compass - Alfonzo Peccatiello (2023-01-25)

Banks use reserves to transact with each other and with the Fed: to settle transactions, buy bonds (!) from each other, and lubricate the biggest funding mechanism in the world – the repo market.


RBC, WALL ST. BANKS FACE CLIMATE DEMANDS FROM NYC PENSIONS, COMPTROLLER

Yahoo Finance - Jeff Lagerquist (2023-01-25)

In a statement on Tuesday, Canada's largest commercial bank was cited with Wall Street peers Bank of America (BAC), Goldman Sachs Group (GS), and JPMorgan Chase (JPM) for "not taking a basic step of setting interim reduction targets that account for total portfolio emissions."


BANK OF CANADA TO RELEASE MEETING SUMMARIES FOR FIRST TIME EVER — BUT IS IT ENOUGH TO IMPROVE TRANSPARENCY?

FP - Stephanie Hughes (2023-01-25)

The Bank of Canada is so poor at documenting what goes on when its leaders sit down to discuss interest rates that it gave itself a failing grade among its peers.
Monetary policy is made behind closed doors for obvious reasons. But in the spirit of transparency, most major central banks release minutes of their deliberations a few weeks after the decision is made. The Federal Reserve in the United States goes so far as to publish full meeting transcripts after five years.
Canada’s central bank does nothing of the sort. The governor might share some words about what was discussed in the opening statement at the quarterly press conference that always follows the release of a revised outlook and an interest-rate decision. That covers four of eight scheduled policy announcements. The other four are followed a day later with a speech by the governor or one of his deputies that updates the central bank’s thinking on the economy. The detail of the policy discussion varies from speech to speech.


BNP PARIBAS FRANKFURT OFFICE SEARCHED IN CUM-EX PROBE

Reuters (2023-01-25)

BNP Paribas said on Wednesday that prosecutors were searching its Frankfurt premises as part of an long-running investigation into a multibillion-euro tax fraud scheme known as "cum-ex" and that it was cooperating fully.


U.S. CARD FIRMS' GROWTH TO MODERATE AS LUXURY BUYING FALTERS

Reuters - NIKET NISHANT AND MANYA SAINI (2023-01-25)

U.S. card companies are expected to post the slowest revenue growth in seven quarters, as consumers tighten their purse strings and avoid spending on luxury and big-ticket items.


EU LAWMAKERS BACK 'PROHIBITIVE' CAPITAL RULES FOR CRYPTOASSETS

Reuters - Huw Jones (2023-01-25)

European Union lawmakers backed a draft law on Tuesday to implement the final leg of post-financial global bank capital rules, adding "prohibitive" requirements to cover risks from cryptoassets.


ECONOMISTS FINALLY HAVE A GOOD EXCUSE FOR BEING WRONG

Bloomberg - Tyler Cowen (2023-01-25)

It is possible, contrary to the predictions of most economists, that the US will get through this disinflationary period and make the proverbial “soft landing.” This should prompt a more general reconsideration of macroeconomic forecasts.


CANADIAN NEW HOME PRICES STALL, STAT CAN MAKES BASELESS BULLISH PRICE FORECAST

Better Dwelling (2023-01-25)

Canadian real estate’s slowdown is finally beginning to show up in new home prices. Statistics Canada (Stat Can) published the December update to its New Housing Price Index (NHPI). The data shows prices stalled and annual growth made its ninth consecutive deceleration. However, the biggest takeaway was the release—with the agency forecasting price growth without any real reason.


MUTUAL FUNDS SAW $44B IN NET REDEMPTIONS LAST YEAR: IFIC

Investment Executive - James Langton (2023-01-25)

The balanced category was hit hardest, with $30.0 billion in net redemptions for 2022, followed by bond funds at $13.8 billion and equity funds with $8.5 billion.


ADVISOR HIT HARDEST IN AMAYA GAMING INSIDER TRADING CASE

Investment Executive - James Langton (2023-01-25)

“We find that Goss’s conduct was among the most serious at issue in these proceedings,” the tribunal said in its decision. “He engaged in insider trading on a large scale, repeatedly, in his own and his family’s accounts, as well as recommending significant trading in client accounts while in possession of [inside information], leading to significant profits.”


BANK OF CANADA LIKELY TO RAISE RATES AGAIN WEDNESDAY — BUT SHOULD IT?

CBC - Pete Evans (2023-01-24)

The Bank of Canada is widely expected to raise its trend-setting interest rate this week by a quarter of a percentage point, which would bring it to 4.5 per cent.


A QUARTER OF CANADIANS THINK PRICES WILL EVENTUALLY FALL. HERE'S WHY THAT'S UNLIKELY

Yahoo Finance (2023-01-24)

Prices for services are driven by wages, he said, which are unlikely to fall given they're sticky nature.


UK DEFICIT SOARS TO RECORD AS INFLATION BOOSTS DEBT PAYMENTS

Yahoo Finance - Philip Aldrick, Tom Rees (2023-01-24)

The budget deficit stood at £27.4 billion ($34 billion), a record for the month and almost triple the £10.7 billion shortfall a year earlier, the Office for National Statistics said Tuesday. Economists had forecast a reading of £17.3 billion.


CRYPTOVERSE: BITCOIN INVESTORS TAKE CONTROL

Reuters - MEDHA SINGH AND LISA PAULINE MATTACKAL (2023-01-24)

Paranoid? The domino downfall of FTX and other crypto custodians is enough to make the most trusting investor grab their bitcoin and shove it under the mattress.


CANADIAN STOCKS HIT HIGHEST SINCE JUNE TO EXTEND DOMINANCE OVER US

Bloomberg - Geoffrey Morgan (2023-01-24)

Canadian stocks rose to their highest level since June 2022 on Monday as investors continue to pile into value stocks amid optimism on China’s reopening. 


CENTRAL BANKERS SHOULD PRIORITIZE GROWTH OVER THEIR PRIDE

Bloomberg - Marcus Ashworth (2023-01-24)

Stop. Look. Listen. Then proceed cautiously. That was the advice we were given as children for crossing the road, and it’s pertinent today for central bankers. After failing to stop consumer prices from accelerating, the risk now is that their pride is dented and they all overtighten to prove their inflation-fighting mettle — pushing us into a deeper recession. Having misread the the global economy for much of the past three years, they should consider pausing their rate increases to avoid compounding the felony.  


FED AND BANK OF CANADA HAVE REASON TO PAUSE HIKES, BMO’S JOYCE SAYS

Bloomberg - Derek Decloet (2023-01-24)

The Federal Reserve and Bank of Canada can afford to pause interest-rate increases now because inflation pressures are easing rapidly, Bank of Montreal strategist Brent Joyce said. 


THE HOUSING MARKET EXPLAINED BY THE FED’S BUBBLE EXPERT

Better Dwelling (2023-01-24)

Is Canada & the US in a real estate bubble? Is this another 2008, or is it actually different this time? We ask US Federal Reserve senior economist Enrique Martínez-García, who works on cutting edge housing bubble research at the Reserve Bank of Dallas.


DISCOUNT BROKERS CAN’T BE SUED OVER PRE-BAN TRAILERS, COURT RULES

Investment Executive - James Langton (2023-01-24)

The Ontario Superior Court of Justice dismissed a proposed class action suit on behalf of investors against many of the major discount brokerages: BMO Investor Line Inc., CIBC Investor Services Inc., Desjardins Securities Inc., HSBC Securities (Canada) Inc., QTrade Securities Inc., Scotia Capital Inc. and TD Waterhouse Canada Inc. The suit alleged that, while the practice of paying trailing commissions to discount brokers wasn’t banned until 2022, it represented a violation of securities law long before that.


LOONIE TO GAIN AS RATE HIKES CEASE: CIBC

Investment Executive - James Langton (2023-01-24)

“We see a broad weakening trend in the U.S. dollar unfolding this year as attention turns to policy tightening in other advanced economies, and the greenback unwinds some of its safe-haven currency bid to come into better alignment with trade fundamentals,” the report said.


THOUSANDS OF PAYPAL USERS VICTIM OF DATA BREACH

Finextra (2023-01-23)

Credential stuffing attacks occur when hackers attempt various account usernames and password pairs that have leaked from various websites, prompting PayPal to urge customers to avoid password recycling and activate two-factor authentication on their accounts.


US ARRESTS CRYPTO EXCHANGE FOUNDER

Finextra (2023-01-23)

Bitzlato majority owner Anatoly Legkodymov, who lives in China, was arrested by the FBI in Miami on Tuesday, accusing him of operating a "high-tech financial hub that, in his own words, catered to 'known crooks'".


BANK OF CANADA EXPECTED TO DELIVER FINAL QUARTER-POINT RATE HIKE AS INFLATION COOLS

G&M - Mark Rendell (2023-01-23)

The Bank of Canada is widely expected to deliver a final quarter-point interest rate increase on Wednesday before pausing its historic monetary policy tightening cycle.


MARKET RECOVERY HINGES ON QUICK INFLATION DROP

WSJ - Matt Grossman (2023-01-23)

Behind this year’s improved start for markets lies a broad wager that inflation will soon post a once-in-a-generation decline.


AMAZON, FACING QUESTIONS OVER WORKPLACE SAFETY, ALSO PROBED ON BANK DEALINGS

WSJ - Richard Vanderford (2023-01-23)

The U.S. government is looking into whether Amazon.com Inc. might have misled lenders about its workplace safety record to obtain credit, using a law stemming from the savings-and-loan crisis in a legal move a lawyer for the company called “unprecedented.”


BANKS PLAN PAYMENT WALLET TO COMPETE WITH PAYPAL, APPLE PAY

WSJ - Annamaria Androitis (2023-01-23)

Big banks are teaming up to launch a digital wallet that people can use to shop online.


STRIPE SCORES MAJOR AMAZON DEAL

Finextra (2023-01-23)

Stripe has become a strategic payments partner for Amazon in the US, Europe, and Canada, processing a "significant" portion of the tech giant's total payments volume across its businesses, including Prime, Audible, Kindle, Amazon Pay, Buy With Prime, and more.


BANK OF CANADA TO HIKE RATES, LEAVE DOOR OPEN FOR MORE: BMO

Better Dwelling (2023-01-23)

Canadian markets have begun discussing rate cuts, and that’s a reason we might not see one this year. BMO Capital Markets wrote to investors over the weekend, outlining their expectations for a rate hike this week. Their forecast currently sees the Bank of Canada (BoC) hitting pause after the next hike, but they warn it might not be the top. Strong fundamentals, inflationary risks, and market expectations may fuel future hikes.


MICROSOFT CANADA’S IRISH OWNERSHIP OFFERS A GLIMPSE INTO MULTINATIONALS’ TAX STRATEGIES

G&M - Josh O'Kane (2023-01-23)

Microsoft Canada MSFT-Q became owned by an Irish affiliate in its 2021 fiscal year, according to documents that offer a rare glimpse at how its multinational parent company has taken advantage of Ireland as a tax haven.


OSC BANS FIVE PEOPLE FROM MARKETS OVER TRADING PRIOR TO AMAYA DEALS

G&M - David Milstead (2023-01-23)

Ontario regulators have handed down financial penalties and market bans for five men who committed illegal insider trading involving multiple stock trades prior to two acquisitions by Amaya Gaming Group Inc. in 2014.


QUEBEC’S FIERA CAPITAL REPLACES CEO WITH FOUNDER JEAN-GUY DESJARDINS IN SURPRISE SUCCESSION REVERSAL

G&M - Nicolas Van Praet (2023-01-23)

Fiera Capital Corp.,one of Canada’s largest independent money managers, is parting ways with chief executive officer Jean-Philippe Lemay only one year into his tenure, and replacing him with the company’s founder.


HOW THE LIBERALS’ MULTIBILLION-DOLLAR TECH PLAN CREATED ‘CHAOS’ INSTEAD OF GROWTH

G&M - Sean Silcoff, Josh O'kane (2023-01-22)

Innovation programs, critics say, have been overly politically driven with an attempt to cover too many regions and sectors, and designed by bureaucrats with outdated or underdeveloped notions of how to create economic growth in a knowledge economy.


CANADIAN INSURER SUN LIFE INKS $193 MILLION DEAL WITH HK'S DAH SING

Yahoo Finance (2023-01-22)

Sun Life-Asia President Ingrid Johnson added at the time that the market in Hong Kong "was very encouraging with the emergence of sales".


CITADEL MAKES $16 BILLION TO TOP PAULSON’S ‘GREATEST TRADE EVER’

Yahoo Finance - Nishant Kumar (2023-01-22)

“The largest gains were once again made by the large multistrategy hedge funds like Citadel, DE Shaw and Millennium,” LCH Chairman Rick Sopher said in a statement. “The strong gains they have generated in recent years reflect their increasing dominance in strategies which do not depend on rising asset prices, and their substantial size.”


EURO NEARS NINE-MONTH PEAK AS ECB HAWKS LET FLY

Yahoo Finance - Wayne Cole (2023-01-22)

The euro crept ahead to $1.0870 and nearer its recent nine-month peak of $1.08875. A break there would open the way to a spike top from last April at $1.0936.


A MENTAL HEALTH CRISIS IN CANADA IS FUELLING BILLIONS IN LOSSES FOR EMPLOYERS

FP - Victoria Wells (2023-01-22)

Employee mental health is “strained,” said Paula Allen, global leader and senior vice-president, research and total well-being, at Lifeworks Inc., a unit of Telus Corp.’s health division. Almost half of all employees report being more sensitive to stress, and 34 per cent are considered high risk for mental-health impacts, meaning depression or anxiety are interfering with their lives, according to the human resources company’s latest research.


THE BIG BANKS WANT THEIR LUCRATIVE LENDING BACK

Yahoo Finance - Shannon D. Harrington (2023-01-22)

Private credit is now a $1.4 trillion industry. It has funded acquisitions of companies like Stamps.com and big-data firm Information Resources Inc. Now many of those banks want back in the action.


INDIA'S YES BANK REPORTS SURPRISE 80% PLUNGE IN QUARTERLY PROFIT

Reuters (2023-01-22)

India's Yes Bank (YESB.NS) reported a surprise 80% plunge in quarterly profit on Saturday as provisions for bad loans increased.


INDIA ICICI BANK’S PROFIT JUMPS 34% IN OCTOBER-DECEMBER

Reuters (2023-01-22)

India's ICICI Bank (ICBK.NS) on Saturday reported a 34.2% increase in net profit for the October-December quarter, on the back of improved revenues and healthy loan growth.


FEDS SEIZED NEARLY $700 MILLION FROM FTX FOUNDER BANKMAN-FRIED

Reuters - Dietrich Knauth (2023-01-22)

Federal prosecutors have seized nearly $700 million in assets from FTX founder Sam Bankman-Fried in January, largely in the form of Robinhood stock, according to a Friday court filing.


BRAZIL AND ARGENTINA ARE DISCUSSING WHETHER TO COMBINE CURRENCIES

Bloomberg - Daniel Carvalho and Maya Averbuch (2023-01-22)

Argentina and Brazil are in the preliminary stages of renewing discussions on forming a common currency for financial and commercial transactions, reviving an often-discussed plan that would face numerous political and economic hurdles. 


WHAT THE US DEBT-CEILING BATTLE MEANS FOR YOUR MONEY

Bloomberg - Erik Wasson, Claire Ballentine and Suzanne Woolley (2023-01-22)

Treasury Secretary Janet Yellen has declared that the US has hit its federal debt limit, kicking off an intense political battle that puts the global financial system at risk.


BANKS PREPARE FOR DEEPEST JOB CUTS SINCE THE FINANCIAL CRISIS

FT - Owen Walker, Katie Martin (2023-01-22)

Banks are gearing up for the biggest round of job cuts since the global financial crisis, as executives come under pressure to slash costs following a collapse in investment banking revenues. The lay-offs — which are expected to be in the tens of thousands across the sector — reverse the mass hirings banks made over the past few years and the reluctance to fire staff during the Covid-19 pandemic. “The job cuts that are coming are going to be super brutal,” said Lee Thacker, owner of financial services headhunting firm Silvermine Partners. “It’s a reset because they over-hired over the past two to three years.” Banks including Credit Suisse, Goldman Sachs, Morgan Stanley and Bank of New York Mellon have begun to cut more than 15,000 jobs in recent months, and industry watchers expect others to follow suit, emboldened by the headline-grabbing plans already announced. “We’ve seen some warning shots from the US,” said Thomas Hallett, an analyst at Keefe, Bruyette & Woods. “Investors need to see management acting on cost and trying to maintain a reasonable return profile. The Europeans will tend to follow the US banks.” Ana Arsov, co-head of global banking at Moody’s, said she expected the job cuts to be less severe than during the financial crisis, but heavier than the collapse in the markets after the dotcom crash in 2000. “What we are seeing is a catch-up of normal bank lay-offs that were put on pause over the past few years,” she said. “We will see trimming in European franchises, but not as big as at US banks.”  Bank executives said Goldman’s eye-catching lay-offs — part of its biggest cost-cutting drive since the financial crisis that includes everything from corporate jets to bonuses — had set a precedent that other banks would look to follow.


‘NIGHTMARE’: COLLAPSE OF LEADING CRYPTO LENDER TRAPS INVESTORS

FT - Nikou Asgari (2023-01-22)

David* is constantly lying to his mother. When she asks about the savings he is managing for her, he tells her not to worry. In reality, the $100,000 “nest egg” from the sale of her house is trapped at a crypto lending company. “If I tell her, she’s going to have a heart attack,” says the 37-year-old from New York. “This was her everything.” Eager to avoid rising inflation eroding his mother’s life savings, the television director last year placed the money with Gemini, the crypto exchange founded by the Winklevoss twins.


WINKLEVOSS TWINS AND THEIR CRYPTO EXCHANGE GEMINI SUED FOR FRAUD OVER INTEREST ACCOUNTS

LA Times - Joe Schneider (2023-01-22)

Gemini Trust Co. and its founders, Tyler and Cameron Winklevoss, were sued by investors who say the crypto asset exchange sold interest-bearing accounts that it failed to register as securities.


PWC SEES OFF DELOITTE TO RETAIN HSBC AUDIT WORTH UP TO $1BN

FT - Michael O’Dwyer,d Stephen Morris (2023-01-22)

PwC has retained the most valuable audit contract on the London Stock Exchange after overcoming a challenge from Deloitte to sign off the accounts of HSBC until 2034. HSBC announced on Friday that it had decided to reappoint PwC following a tender process that was required because the Big Four firm will have served for 10 years by the time it signs the 2024 accounts. PwC and Deloitte were the final two firms in HSBC’s marathon tendering process that effectively began when the bank informally contacted accounting firms in 2021, according to people familiar with the process.


GOOGLE PARENT TO LAY OFF 12,000 WORKERS IN LATEST BLOW TO TECH SECTOR

Yahoo Finance - Jeffrey Dastin (2023-01-20)

Google's parent Alphabet Inc is eliminating about 12,000 jobs, or 6% of its workforce, the company said Friday, in the latest cuts to shake the technology sector.


HOUSING'S HARD STOP SPELLS TROUBLE AHEAD FOR THE ECONOMY

FP - Peter Hall (2023-01-20)

This is as plain on the street as it is in the numbers. Units are listing for longer. Bidding wars are now rare. Prices are tumbling. Housing dominates conversations at the community centre, the water cooler, networking events, social media and of course, conference Q&As.
Housing is like an economic funny bone. First and foremost, it’s likely the one asset in the system we can all relate to. Second, most of the average Canadian’s wealth is tied up in it. Third, there was a rush of home purchases in the past two years as prices surged and buyers feared getting left behind. Purchases at the peak — especially by first-time buyers — are the most vulnerable to a correction. Fourth, consumer debt is among the highest in the Organization for Economic Co-operation and Development (OECD) countries at 185 per cent of income, and has surged by 29 percentage points since 2007. Most of that is mortgage debt.


'MUCH WORSE BEFORE IT GETS BETTER': WHY THERE'S NO QUICK FIX TO CANADA'S HOUSING SUPPLY WOES

fp - Shantaé Campbell (2023-01-20)

Figures released Jan. 17 by the Canada Mortgage and Housing Corporation (CMHC) showed urban housing starts actually declined year-over-year in 2022, falling a little over one per cent to 240,590 units.
Though the CMHC noted starts remained at an elevated level as compared to recent years, they are a far cry from the levels needed to even put a dent in the shortage the national housing agency identified in June, when it found 3.5 million additional new housing units would be needed by 2030 to improve affordability. That would equate to more than a doubling of the current pace. Even the more modest increases of 30 to 50 per cent that the CMHC later found the labour force could support in a best-case scenario in some provinces seems a long way off.


CAISSE DE DEPOT AMONG FOUR CANADIAN COMPANIES TO MEET WITH MEXICO'S PRESIDENT TO RESOLVE ENERGY DISPUTE

FP (2023-01-20)

Mexican President Andres Manuel Lopez Obrador said he met with representatives of four Canadian firms on Wednesday and resolved their problems, after agreeing to see them at talks with Canadian Prime Minister Justin Trudeau earlier this month.
The four in question were pension fund La Caisse de depot et placement du Quebec, ATCO Ltd., Northland Power Inc., and Canadian Solar Inc., according to an official familiar with the matter.


SUN LIFE NEARS DEAL WITH BANKING GROUP DAH SING THAT WILL BOOST INSURER'S PRESENCE IN HONG KONG

FP - Manuel Baigorri (2023-01-20)

The Canadian insurer has emerged as the likeliest partner for Dah Sing after beating out rival bidders, the people said, asking not to be identified because the matter is private. The so-called bancassurance agreement could be valued at about US$200 million, the people said.


HOW THE BOJ'S NEW YIELD-CONTROLLING TOOL WORKS

Reuters - Leika Kihara (2023-01-20)

The Bank of Japan this week crafted a new weapon to defend its yield cap and extend the lifespan of its yield control policy, without having to ramp up bond buying and dry up already thinning market liquidity.


SNB’S JORDAN SAYS RETURNING INFLATION TO 2% IS NOT THAT EASY

Bloomberg - Bastian Benrath (2023-01-20)

Global wage pressure and a greater willingness by companies to charge consumers more means that getting inflation back to 2% won’t be easy, said Swiss National Bank President Thomas Jordan. 


CANADIAN MORTGAGE DEBT GRINDS TO A HALT AFTER HITTING OVER $2 TRILLION

Better Dwelling (2023-01-20)

Monthly growth showed a minor improvement, but it’s fairly anemic for Canada. November’s growth (0.3%) was slightly higher than October (+0.2%), but not by much. Outside of these two months, monthly growth hasn’t been this low since 2019.


TD SAYS BARBARA HOOPER TO LEAD CANADIAN BUSINESS BANKING

Investment Executive (2023-01-20)

He said Hooper, who will take on the transitional role of chief operating officer of the business banking division starting Feb. 6, has spent more than a decade in client-facing leadership positions with the wholesale bank as part of a more than 25-year career with TD.


CREDIT CARD DEBT HITS RECORD HIGH

Investment Executive - James Langton (2023-01-20)

However, credit card debt rose by 0.9% in the month to a new high, topping its previous peak in February 2020, just before Covid-19 hit.


FP CANADA NAMES TOP PERFORMERS OF LATEST CFP EXAM

Investment Executive (2023-01-20)

“Congratulations to Brian, Ikhlas and Chantelle on their impressive achievement,” Tashia Batstone, president and CEO of FP Canada, said in a release. “We at FP Canada commend you on your performances on the CFP exam and wish you continued success in your financial planning careers.”


“THERE WERE DEFINITELY TIMES WHERE I PAINTED A ROSIER PICTURE THAN THINGS TRULY WERE,” FRANK’S FOUNDER AND FORMER CEO SAID MONTHS BEFORE JP MORGAN BOUGHT HER STARTUP FOR $175 MILLION.

Forbes - Iain Martin (2023-01-20)

Charlie Javice, the young founder and former CEO of Frank, pulled off a master stroke: Selling her fintech startup to JP Morgan Chase for $175 million. “It’s not every day that an entrepreneur gets her fairytale new beginning (not ending!),” she wrote on LinkedIn at the time.


CANADIAN BANKS WORKING ON MAJOR TAKEOVER DEALS ARE FACING DELAYS AND CLIMBING COSTS

G&M - Stefanie Marotta (2023-01-19)

Bank of Montreal’s BMO-T major takeover of California-based Bank of the West has received the final green light from U.S. regulators, shifting the attention to another pending deal by Toronto-Dominion Bank TD-N that will expand its footprint further south of the border.


TD APPOINTS NEW HEAD OF CANADIAN BUSINESS BANKING

G&M - Stefanie Marotta (2023-01-19)

Canadian business banking head Paul Douglas will leave the position at the end of April after about 19 years leading the division. Stepping into the role is head of treasury and enterprise strategy Barbara Hooper.


MICROSOFT, AMAZON SET TO ERASE 28,000 JOBS AS TECH SLUMP DEEPENS

FP (2023-01-19)

Both companies said the painful measures were necessary to offset slowing sales and a possible recession that has made customers more cautious. The tech industry benefited during the pandemic from a surge in demand for computers, phones, software and goods ordered online, leading to a frenetic pace of hiring. Salesforce Inc. announced earlier this month that it would cut about 10 per cent of its workforce after acknowledging that its workforce nearly tripled in the past four years. Facebook parent Meta Platforms Inc. announced widespread job cuts last fall, and beleaguered social network Twitter Inc. has slashed about half its workforce.


BREXIT LIFTS NUMBER OF MILLION-EURO-A-YEAR BANKERS IN EU, WATCHDOG SAYS

Reuters - Huw Jones (2023-01-19)

More Brexit-related relocations from London and rise in trading increased the number of bankers earning more than a million euros a year in the European Union by more than 40% in 2021, the bloc's banking watchdog said on Thursday.


USAIN BOLT SEEKS MISSING $12.7 MLN FROM JAMAICA INVESTMENT FIRM

Reuters - Kate Chappell (2023-01-19)

Olympic champion Usain Bolt is seeking to recover more than $12.7 million that disappeared from his account with a Jamaican investment firm and is willing to take the case to court if necessary, Bolt's attorney said.


CANADIAN REAL ESTATE PRICES TO CONTINUE FALLING IN THE NEAR-TERM: RBC

Better Dwelling (2023-01-19)

Canadian residential real estate sales might be approaching a floor, after plummeting. RBC points to a 25% drop in home sales in 2022, reversing the gains made since 2020. Sharper drops were seen in British Columbia (-35%), and Ontario (-32%). More affordable provinces like Alberta (-1.8%) fared better, partially due to the energy boom. It’s hard to see a further decline in home sales, especially without a dent in employment data.


RATE HIKES HAVE BEGUN TO QUELL U.S. INFLATION: FED’S MESTER

Investment Executive - Christopher Rugaber (2023-01-19)

Mester, who has been president of the Cleveland Fed for eight years, didn’t say how large a rate hike she favored when the Fed’s next meeting ends on Feb. 1. Most economists expect the central bank to announce a smaller quarter-point hike. But Mester noted that the economy and the financial markets “were able to handle” the half-point hike that the Fed carried out in mid-December.


JACINDA ARDERN: NEW ZEALAND PM QUITS CITING BURNOUT

BBC - Tiffanie Turnbull (2023-01-19)

Ms Ardern was often seen as a political star globally, opinion polls suggest she was increasingly unpopular at home.


U.S. REGULATORS APPROVE BMO’S TAKEOVER OF BANK OF THE WEST

G&M - Stefanie Marotta (2023-01-18)

Bank of Montreal has received the final regulatory approval required to takeover California-based Bank of the West from BNP Paribas, creating the 15th largest commercial bank in the United States.


INFLATION RATE EASES TO 6.3% AS BANK OF CANADA CONSIDERS NEW RATE HIKE

G&M - Matt Lundy (2023-01-18)

Canada’s inflation rate eased in December alongside a steep drop in gasoline prices, an encouraging sign for the Bank of Canada as it considers further increases in interest rates.


'DOUBLE WHAMMY' HAS CANADIANS MORE CONCERNED ABOUT DEBT THAN EVER, SURVEY FINDS

Yahoo Finance - Denise Paglinawan (2023-01-18)

The survey, conducted by firm Ipsos Group S.A., said more Canadians, 49 per cent of those surveyed, regret the amount of debt they’ve taken on in life, while 44 per cent are confident in their ability to cover all of their living expenses in the next year without going further into debt.


BONUSES WILL ‘ABSOLUTELY’ FALL, SAYS JPMORGAN’S CO-HEAD OF INVESTMENT BANKING

Yahoo Finance - Marion Dakers and Francine Lacqua (2023-01-18)

“All banks pay for performance, so if the performance isn’t there, the compensation isn’t going to be there,” the firm’s global investment-banking co-head who also oversees Europe, the Middle East and Africa said in a Bloomberg Television interview at Davos on Wednesday.


CANADIAN PENSION FUNDS INCONSISTENT ON CLIMATE POLICY, WATCHDOG GROUP SAYS

FP - Barbara Shecter (2023-01-18)

A split has emerged among Canada’s large pension funds when it comes to managing the energy transition, with funds such as the Caisse de dépôt et placement du Québec pledging to sell off oil producing assets while Alberta Investment Management Corp. is staunchly against divestment.
So it is perhaps not surprising that Shift, a charity organization that tracks retirement funds and how their investments address climate change, found “a high level of inconsistency” among Canada’s largest pensions when it comes to the “urgency, detail, transparency and ambition for managing climate-related risks.”
Overall, based on a report card released on Jan. 18 that measured climate policies based on the credibility of their targets and international best practices, Shift concluded that Canadian pension managers that collectively oversee more than $4 trillion need to do far more work to meet their fiduciary obligations to invest in the best long-term interests of plan members “in a world that limits global heating to 1.5 degrees Celsius.”


CORRECTION? WHAT CORRECTION? THIS CITY MIGHT HAVE THE STRONGEST HOUSING MARKET IN CANADA

FP - Pamela Heaven (2023-01-18)

“Alberta is calling,” says the campaign launched by former premier Jason Kenney in August to attract young and skilled workers from other parts of the country to the western province.


U.S. BANK REGULATOR WEIGHING GIVING MORE INSIGHT INTO ITS SUPERVISORY PROCESS- ACTING HEAD

Reuters (2023-01-18)

The OCC’s escalation framework includes four levels to compel banks to fix issues, starting with a non-public supervisory finding and intensifying to an enforcement action and eventually a growth restriction if the regulator finds that deficiencies have still not been addressed, Hsu said.


THAT GIANT SUCKING SOUND IS THE EXIT FROM US STOCKS

Bloomberg - John Authers (2023-01-18)

About turn. The US and its stock market have led the rest of the planet ever since going into the financial crisis in 2008. Now, with startling swiftness, big investors believe the trend is at last about to reverse. 


CANADIAN HOUSEHOLDS SEE A BIG DROP IN REAL WAGES AHEAD: BANK OF CANADA

Better Dwelling (2023-01-18)

Canadian households continue to see higher inflation in the coming months. They expect prices to rise 7.2% over the next 12-months according to the Q4 2022 survey. This is a slight increase from the 7.1% expected in the previous quarter, and a big jump from the 4.9% a year ago. In short, they don’t see moderation in the coming year—they see inflation continuing at this pace. 


DESPITE INFLATION SLOWING IN DECEMBER, BOC STILL EXPECTED TO HIKE RATES

Investment Executive - Nojoud Al Mallees (2023-01-18)

The country’s annual inflation rate peaked in the summer at 8.1% and has been slowly decelerating since. In November, the annual inflation rate was 6.8%.


GLOBAL OIL DEMAND SET TO REACH RECORD HIGH AS CHINA REOPENS, IEA SAYS

FT - Tom Wilson (2023-01-18)

Global oil demand is set to rise to an all-time high in 2023 as China relaxes its Covid-19 restrictions in a move that may push crude prices higher in the second half of the year, according to the International Energy Agency.


WHAT'S BEHIND CANADA'S DRASTIC NEW ALCOHOL GUIDANCE

BBC - Holly Honderich (2023-01-18)

If you must drink at all, two drinks maximum each week is deemed low-risk by the government-backed guidance.


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BANK OF ENGLAND MULLS BIGGEST INTEREST-RATE RISE IN 33 YEARS

FP (2023-02-19)

With prices rising five times faster than the U.K. central bank’s two per cent target and the pound falling almost daily, policy makers led by Bank of England Governor Andrew Bailey are under pressure to step up the pace of monetary tightening.


PENSION FUNDS SUFFER LARGEST INVESTMENT LOSSES SINCE 2008 FINANCIAL CRISIS

G&M - James Bradshaw (2023-02-01)

Canadian defined-benefit pension plans collectively suffered their largest losses since the 2008 financial crisis in 2022, recording a median decline in assets of 10.3 per cent despite a partial recovery in the final months of the year, according to a survey from Royal Bank of Canada RY-T.


OSC NEEDS TO TAKE ACCOUNTABILITY SERIOUSLY OR RISK LOSING PUBLIC CONFIDENCE

G&M - Ken Kivenko (2023-02-01)

In 1994, during the tenure of one of the authors as Ontario Securities Commission chair, the provincial government conferred rule-making authority on the OSC. In return, the commission agreed to a more robust accountability regime, including requirements to publish, for public comment, proposed OSC rules, alternatives considered and a cost-benefit analysis of the proposals.


CPP AND OAS: HOW THE FINANCIAL SUPPORTS AFFECT YOUR RETIREMENT PLANS

G&M - Rosemary Counter (2023-02-01)

Whether retirement is decades away or just around the corner, like most Canadians you’re thinking ahead, and well prepared with all the funds you’ll ever need. Just kidding! Most of us have far less tucked away than we should, something the government knows and plans for accordingly. But what kind of government help can you expect when you turn 65? And will it be enough to live long and prosper? Here, we break down the main financial supports from government.