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☆ Top Canada banks RBC, National Bank's profits dip as bad debt provisions mount
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +2 min

Profit from personal and commercial banking for RBC and National Bank in the quarter grew 5% and 13%, respectively. RBC earmarked C$381 million in provisions for credit losses (PCL), compared with a C$227 million release last year. National Bank reported C$87 million versus a C$41 million release a year ago. Shares of RBC, which agreed to buy HSBC's (HSBA.L) Canadian business on Tuesday, were down 1.4%, while National Bank fell nearly 4%. National Bank, on the other hand, posted an adjusted profit of C$2.08 per share, below analysts' expectation of C$2.24.

☆ Alberta Premier Danielle Smith seeks more autonomy from Canada in new bill
▼ + stars: | 2022-11-29 | by ( Nia Williams | ) www.reuters.com time to read: +2 min

Nov 29 (Reuters) - The government of Canada's main oil-producing province Alberta introduced proposed legislation on Tuesday to resist federal laws it deems harmful to Alberta, fulfilling a controversial promise from new Premier Danielle Smith. If passed, the bill, known as the Alberta Sovereignty Within a United Canada Act, would give the province a legislative framework to defend its jurisdiction in areas such as natural resources, gun control, and health and education. Trudeau avoided commenting directly on the Sovereignty Act when asked by reporters on Tuesday. Smith became premier in early October and promised to introduce the Sovereignty Act as her first piece of legislation. read moreThe government said nothing in the proposed act undermines any existing treaties with First Nations.

The transaction is also fraught with regulatory risks, analysts said, though RBC argues that HSBC's Canada business accounts for just 2% of Canadian banking market share. The finance minister has the authority to impose any terms and conditions, the finance department said in a statement. "This regulatory assessment isn't likely to be completed for some time," Calvin Goldman, former commissioner of Canada's competition bureau, told Reuters, referring to the latest deal. QUICK MOVEDespite the expected regulatory risks, RBC was keen to move quickly. RBC is paying 9.4 times HSBC's 2024 adjusted earnings, which KBW analysts said was a steep price, though offset by savings potentials.

Nov 27 (Reuters) - Top Canadian banks are expected to post a decline in fourth-quarter profits as choppy markets hurt wealth management and a slow deal pipeline dents income from investment banking, offsetting expected gains from business loans. On average, profit for the Big Six banks are expected to drop 4% from last year, hurt by lower investment banking activity. Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO), which have the largest capital markets businesses, are expected to see the biggest hit to profits. "Business lending was particularly strong and aided by strength in balances outside of Canada," KBW analysts Mike Rizvanovic and Abhilash Shashidharan said. National Bank of Canada (NA.TO) and Toronto-Dominion Bank (TD.TO), also among the Big Six, will report earnings on Wednesday and Friday, respectively.

☆ Workers at a boot store are owed almost $360,000 because some wages were paid in gift cards
▼ + stars: | 2022-11-27 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +2 min

A Vancouver store was forced to pay more than $360,000 in damages to staff. Dayton Boots paid some employees half their salaries in the form of gift cards. Dayton director Eric Hutchingame claimed it was a way of paying for employee equipment. Two Dayton employees filed complaints in October 2020 under section 74 of Canada's Employment Standards Act, arguing the company was deducting half their wages and replacing them with store gift cards. The tribunal initially ordered Dayton to pay C$610,417 because it requires employees to be paid in Canadian dollars.

OTTAWA, Nov 23 (Reuters) - Inflation in Canada remains too strong, and higher interest rates will be needed to cool the overheating economy, Bank of Canada Governor Tiff Macklem said in testimony at the House of Commons on Wednesday. "Inflation has come down in recent months, but we have yet to see a generalized decline in price pressures," Macklem said. The Bank of Canada raised rates by 50 basis points last month, lifting the policy rate to 3.75%, the highest since 4% seen in January 2008. Conservative lawmakers pressed Macklem to explain what the bank should have done differently to avoid the spike in inflation. Macklem reiterated that "with hindsight", the bank would have started tightening monetary policy sooner, adding the bank would review how monetary tools have worked during this period.

CNOOC has hired JPMorgan to advise it on a potential exit from its interests in U.S. shale gas assets, which could raise around $2 billion, the sources familiar with the matter said. The sources cautioned that a sale was not guaranteed, and CNOOC could still retain these interests if it did not receive suitable offers or political situations changed swiftly. In the Eagle Ford basin of south Texas, CNOOC's stake is in oil and gas assets owned by U.S. shale driller Chesapeake Energy Corp (CHK.O). While Chesapeake has itself put those assets up for sale, any decision there is not expected to impact CNOOC's plans, one of the sources said. Norway's Equinor (EQNR.OL) is said to be considering buying the stakes in a deal valued between 20 billion and 30 billion Norwegian crowns ($2-3 billion).

In a surprise move, the Canadian government said earlier this month that it had decided to cease issuance of real return bonds (RRBs), citing low demand. That makes them an expensive form of financing for the government, but cost should not be the only consideration, investors say. The median allocation by defined benefit pension plans, a major category, to RRBs was 5.2% in 2021, data covering members of the Pension Investment Association of Canada (PIAC) shows. U.S. Treasury Inflation-Protected Securities (TIPS) could act as a proxy but are not an exact hedge against Canadian inflation. Breakeven rates are the difference between yields on nominal and real return bonds.

☆ TSX falls as commodity stocks weigh
▼ + stars: | 2022-11-17 | by ( Johann M Cherian | ) www.reuters.com time to read: +2 min

ET (1522 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was down 130.67 points, or 0.65%, at 19,827.29, extending losses from the previous session. "I think they're still on track for another hike," said Greg Taylor, portfolio manager at Purpose Investments. IRPR#0BOCWATCHAmong stocks, TC Energy (TRP.TO) said that the weather-related issues that prompted it to halt deliveries through its Keystone oil pipeline have been resolved. Restaurant Brands International (QSR.TO) rose 1.3% after it said that its coffee chain brand Tim Hortons had forged a two-year partnership with Alibaba Group's grocery chain. Reporting by Johann M Cherian in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ TSX dips as lower oil prices pressure energy shares
▼ + stars: | 2022-11-16 | by ( Fergal Smith | Simon Jessop | ) www.reuters.com time to read: +1 min

SummarySummary Companies TSX ends down 36.82 points, or 0.2%, at 19,957.96Energy falls 2.3%; oil settles 1.5% lowerMaterials sector loses 1.3%Restaurant Brands gains 7%TORONTO, Nov 16 (Reuters) - Canada's main stock index fell on Wednesday as lower oil prices weighed on energy shares but gains for consumer-related stocks helped limit the index's decline. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 36.82 points, or 0.2%, at 19,957.96. The Toronto market's energy sector fell 2.3% as oil prices settled 1.5% lower at $85.59 a barrel concerns over rising COVID-19 cases in China. The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.3%, while technology ended 0.7% lower. Shares of Restaurant Brands International Inc (QSR.TO) ended 7% higher, helping drive the consumer discretionary sector to a 1.3% gain.

OTTAWA, Nov 16 (Reuters) - Canada's Prime Minister Justin Trudeau is coming under pressure from populist conservative rivals as the country veers toward a possible recession, with provinces vowing to oppose some of his Liberal government's key policies. New federal Conservative Party leader Pierre Poilievre is leading the charge, blaming Trudeau for skyrocketing inflation and laying responsibility for a housing shortage on "gatekeepers" in Ottawa. Both Alberta and Saskatchewan have lost court bids to overturn federal carbon pricing already. Alberta, Saskatchewan and other conservative-led provinces also oppose an assault-rifle buyback the Trudeau government is promising for next year. ECONOMIC HEADWINDSQuebec is a prime example of historical tension between Ottawa and the provinces.

☆ Ukraine says sniper killed Russian soldier almost 1.7 miles away, which it claims is the second-longest kill on record
▼ + stars: | 2022-11-16 | by ( Mia Jankowicz | ) www.businessinsider.com time to read: +2 min

Ukraine's army claimed on Wednesday to have made the world's second-longest sniper kill. The shot would be roughly three times the height of the Burj Khalifa, the world's tallest building. The 24 seconds of grainy thermal imaging footage show a figure identified by Ukraine's armed forces as "the occupier," suggesting the apparent kill took place in occupied Ukraine. In the post, Ukraine's armed forces gave a nod to British former sniper Craig Harrison as having formerly held the record for second-longest shot, and who the Ukrainian army claims to have nudged into third place. Another pre-existing claim to second place is a kill by an unnamed member of Australia's second commando regiment in 2012, at 1.3 miles, or 2.81 km.

☆ TC Energy says Keystone oil pipeline system to curtail volumes
▼ + stars: | 2022-11-15 | by ( ) www.reuters.com time to read: +1 min

Companies TC Energy Corp FollowNov 15 (Reuters) - Canada's TC Energy (TRP.TO) on Tuesday said the Keystone oil pipeline system will be required to curtail volumes due to a series of recent severe weather-related impacts to system facilities. TC Energy did not share any details on the duration of the curtailment, citing it as customer confidential information. Keystone ships Canadian crude from Alberta to the U.S. Midwest and on to the Gulf Coast, and is a key part of Canada's oil export network. The company in October said it would temporarily increase capacity on its Keystone pipeline for a couple of months from November for testing operations on the system. Reporting by Swati Verma in Bengaluru; Editing by Mark Porter and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ In a tech downturn, breakout stars of venture capital are going abroad to hunt for funding. Here's why.
▼ + stars: | 2022-11-14 | by ( Melia Russell | ) www.businessinsider.com time to read: +9 min

The flow of capital motivated more investors to split from established firms and raise their own funds, but it hasn't always been easy. For years they've gone abroad to raise capital from limited partners, mostly wealthy individuals and family offices. This isn't new territory for international investors. He continues to use his personal wealth to back startups and venture funds mostly stateside, including Sequoia Capital, Andreessen Horowitz, and Brianne Kimmel's Worklife Ventures. Even those with ties to international investors may struggle to raise funds as fears of a global recession escalate.

☆ Canadian dollar slides as crypto selloff spooks investors
▼ + stars: | 2022-11-09 | by ( Fergal Smith | Rocky Swift | ) www.reuters.com time to read: +2 min

The loonie weakened 0.7% to 1.3520 per greenback, or 73.96 U.S. cents, after trading in a range of 1.3412 to 1.3541. Investors fretted about the financial health of major cryptocurrency exchange FTX, with some questioning whether a rescue deal from bigger rival Binance would materialize. Investors were shifting focus to U.S. inflation data on Thursday for clues on the path of future interest rate hikes by the Federal Reserve. Its governor, Tiff Macklem, is due on Thursday to give a speech on the evolution of the Canadian labour market. Canadian government bond yields eased across a flatter curve, with the 10-year down 5.8 basis points at 3.421%.

☆ Canadian dollar dips as investors weigh U.S. midterm vote
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +2 min

Summary Canadian dollar dips 0.1% against the greenbackLoonie trades in a range of 1.3414 to 1.3466Price of U.S. oil falls 0.5%Canadian bond yields trade mixed across curveTORONTO, Nov 9 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday, pulling back from a seven-week high, as oil prices fell and investors awaited the results of the closely watched U.S. midterm elections. Global equity markets (.WORLD) dipped and the U.S. dollar (.DXY) rose against a basket of major currencies as control of the U.S. Congress and Democratic President Joe Biden's agenda was unclear after the midterm vote. U.S. crude prices were down 0.5% at $88.45 a barrel, while the Canadian dollar weakened 0.1% to 1.3440 to the greenback, or 74.40 U.S. cents, after trading in a range of 1.3414 to 1.3466. BoC Governor Tiff Macklem is due on Thursday to give a speech on the evolution of the Canadian labour market. Canadian government bond yields were mixed across the curve, with the 10-year up half a basis point at 3.484%.

☆ Education workers agree to end strike in Canada's Ontario
▼ + stars: | 2022-11-07 | by ( Ismail Shakil | ) www.reuters.com time to read: +2 min

OTTAWA, Nov 7 (Reuters) - Striking education sector workers in Canada's most populous province agreed to return to work after the Ontario government on Monday offered to rescind a controversial law that imposed a contract on the workers and outlawed strikes. The Ontario government's offer to repeal the law was hailed as a victory by workers, which include educational assistants, secretaries and library workers. "I'm glad CUPE has agreed to withdraw its strike action so kids can return to class," Ford said in a tweet. "We'll be back at the table to negotiate a fair deal — for students, parents, workers and taxpayers." Reporting by Ismail Shakil in Ottawa; editing by Deepa Babington, Grant McCool and Richard ChangOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of Canada focus on more timely inflation data lowers overshoot risk
▼ + stars: | 2022-11-07 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

Inflation tends to be reported on a year-over-year basis to smooth out fluctuations that occur in shorter-term measures. Some forecasters expect Canada's economy to dip into recession next year along with a downturn in global activity. Twelve-month rates include price growth that occurred much earlier in the year, economists explain. Inflation is likely to be more persistent after it spread from goods prices into slower-moving items, such as wages and services. Still, the BoC has opened the door to slowing the pace of tightening to more normal steps of 25 basis points.

☆ Canadian dollar forecasts cut as BoC trails Fed on peak-rate bets - Reuters poll
▼ + stars: | 2022-11-02 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

The currency has weakened over 7% against the U.S. dollar since the start of 2022. It was then expected to rally to 1.31 in a year, versus 1.30 expected in last month's poll. "That implied spread between terminal rates in Canada and the United States will probably have to widen out further and that could take the U.S. dollar higher across the board including against the Canadian dollar." Investors are betting on a terminal rate, or peak level for interest rates, from the BoC in the coming months of 4.25%. "We see less interest in investing money back into the ground in the oil patch when oil prices are high and so there's less room (for the currency) to fall when oil prices are low."

☆ Bank of Canada sets out path for regulating digital payment providers
▼ + stars: | 2022-11-02 | by ( Julie Gordon | ) www.reuters.com time to read: +2 min

OTTAWA, Nov 2 (Reuters) - The Bank of Canada on Wednesday said it would take a flexible, risk-based approach in its nascent role as a digital payment regulator, aiming to ensure confidence in the safety and reliability of the fast-growing electronic payment segment. The central bank became the regulator for payment service providers (PSPs) like card networks, digital wallets and money transfer services under Canadian law last year. "We’re not going to use a blanket supervisory approach to the task at hand," Rob Morrow, Bank of Canada's executive director of Retail Payments Supervision, said in a prepared speech. "We will take a risk-based approach that will focus on end-user impacts and the efficiency of payment services." The Bank of Canada estimates more than 2,500 entities will fall under its supervision once the rules come into force.

Canada now expects to welcome 465,000 new permanent residents in 2023, up 4% from a previous target, and 485,000 in 2024, up 7.5%. "This year's immigration levels plan will help businesses find the workers they need," said Fraser in a statement. He added the new targets would also allow Canada to fulfil commitments to help those fleeing violence and war in their home countries. A record number of Canadians are now retiring, hastening a mass exodus of Canada's most highly skilled workers and leaving businesses scrambling. In a statement on Tuesday, the Business Council of Canada called for "bolder targets" in economic immigration.

☆ Morning Bid: Full of energy
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +3 min

Global stocks just won't lie down, doggedly clinging to hopes that central banks will ease off the policy brakes or that China might ease COVID curbs, just as energy firms reap massive windfall profits. Everything from central bank speculation, big rotations of equity sectors and talk of yearend seasonal flows in a U.S. election year are all cited. And after a downbeat start to the week, stocks jumped back yet again on Tuesday - even on some pretty thin reasoning. Underperforming Hong Kong and China stocks surged late in the day, with the former closing up more than 5%, after social media chatter that China was planning some reopening from strict COVID curbs in March. Energy sector earnings show clear winners from the year's Ukraine-related price shock.

☆ BoC's Macklem: No threat to independence of Canada's central bank - report
▼ + stars: | 2022-10-30 | by ( ) www.reuters.com time to read: +2 min

read more"I do not have any concerns about the bank's independence being under threat," Macklem was quoted saying in an interview with The Canadian Press. The remarks were published online on Sunday but the interview was conducted on Wednesday, The Canadian Press said. Canada, with its pricey homes and top of the G7 household debt levels, is particularly sensitive to higher interest rates, with fears mounting the BoC's aggressive hikes will trigger a recession. In his interview with The Canadian Press, Macklem acknowledged: "Lots of people are giving us advice on what we should do." And it's at times like this, that when it's difficult, that you see the value of the independence of central banks," he told The Canadian Press.

U.S. consumer spending has remained strong, rising more than expected in September, despite underlying inflation pressures continuing to bubble. "If you look at stocks and asset prices, you would probably expect the Fed to be already easing by now," Gurevich said. read moreHowever, Anita Gupta, head of equity strategy at Emirates NBD, told the forum it was "too early" to draw conclusions for other central banks from this move. "If you're going downhill and pushing your foot on the accelerator, it's going to be very hard to break," Gurevich said. "I feel it's already too late for them to stop deflation and a recessionary cycle."

Some, like fossil fuel-burning Saskatchewan and Alberta, say the federal government's plan for a 2035 net-zero grid is unrealistic. The challenges Canada faces underline how difficult meeting net-zero electrification goals will be globally. Reuters GraphicsUnlike Canada, the United States has a federal electricity regulator and mostly delivers power through regionally integrated systems, which may make it more nimble to transform the grid. Provinces regulate Canada's electricity utilities, but the federal government has some jurisdiction over the environment. The Alberta Electric System Operator in June estimated it would cost an additional C$44 billion to C$52 billion ($38.18 billion) to meet Ottawa's 2035 net-zero mandate.

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