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☆ A bigger pool of American workers could continue to slow inflation even further
▼ + stars: | 2024-03-03 | by ( Bryan Mena | ) edition.cnn.com time to read: +7 min

Now, as the Federal Reserve faces the final stretch of its historic inflation battle, a bigger pool of workers could slow inflation even further. That then begs the question: How much more can better labor supply slow inflation? The US Labor Department releases January figures on job openings, quits, hires and layoffs. The US Labor Department reports the number of new applications for jobless benefits in the week ended March 2. China’s National Bureau of Statistics releases February inflation data.

Persons: Mary Daly, “, ” Sarah House, Michael Gapen, That’s, Jack Bantock, ’, ”, Richard Felton, Thomas, ’ ”, Patrick Harker, Ross, Nordstrom, Michael Barr, Campbell Soup, Foot, Jerome Powell, Loretta Mester Organizations: DC CNN, Federal Reserve, San Francisco Fed, National Association for Business Economics, Labor, CNN, Bank of America, White House’s Council, Economic Advisers, English Premier League, Chelsea, Burnley, Philadelphia Fed, Target, P Global, Institute for Supply Management, US Commerce Department, Abercrombie, Fitch, Financial Services, The Bank of Canada, US Labor Department, Broadcom, Costco, Eagle Outfitters, Potbelly, Banking, Housing, Urban Affairs, European Central Bank, Cleveland Fed, National Bureau of Statistics Locations: Washington, San, Wells, United States, London, JD.com, Kroger, Burlington, DocuSign

☆ Goldman Sachs says the soft landing for the economy is 'on track'
▼ + stars: | 2024-01-29 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Declining inflation rates and consistent growth should create a solid background for stocks and other risky assets, even though some bouts of volatility are likely, according to Goldman Sachs. Broadly speaking, a "soft landing [is] on track," the firm said in a client note in which Goldman market experts said they expect the Federal Reserve soon to make a nod toward an easing in monetary policy that also will be market-positive. "The broad data still points firmly in the direction of easing inflation pressure and resilient growth, especially in the US," wrote Dominic Wilson, senior advisor in Goldman's Global Markets Research Group. But we still think it makes sense to fade those pullbacks and expect US equities and credit to make new highs, as they have been." "This week's FOMC meeting will need to remove the tightening bias to keep March alive, as the [Bank of Canada] did last week, but is unlikely to preview a March cut," Wilson wrote.

Persons: Goldman Sachs, Goldman, Dominic Wilson, Wilson, Michael Bloom Organizations: Federal Reserve, Markets Research, Gross, Bank of, CME Locations: Bank of Canada

☆ Dollar hovers near 6-week high on Fed view; yen edges up after BOJ
▼ + stars: | 2024-01-24 | by ( ) www.cnbc.com time to read: +4 min

The Japanese yen , though, ticked higher as expectations rose for a stimulus exit as soon as March, following hawkish comments from the Bank of Japan on Tuesday. "We have seen ECB (European Central Bank) officials push back on rate cut expectations as well, in line with the Federal Reserve." The dollar declined 0.17% to 148.085 yen, after swinging from as low as 146.99 and as high as 148.70 on Tuesday. The Bank of Canada meets on policy on Wednesday, and is expected to leave its key overnight rate unchanged at a 22-year high of 5%. Traders have unwound bullish positions built up in anticipation of U.S. approval of the country's first spot bitcoin exchange traded fund (ETF).

Persons: Mary Daly, Christopher Waller, James Kniveton, Christine Lagarde's, Sterling, Kazuo Ueda, China's, cryptocurrency, Bitcoin Organizations: Federal Reserve, Bank of Japan, U.S, San Francisco Fed, ECB, European Central Bank, Bank of England, Bank of Canada, Bloomberg, Traders Locations: U.S

☆ Treasury yields pull back as big economic data releases come into view
▼ + stars: | 2024-01-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

ET, the yield on the benchmark 10-year Treasury note was down by around 3.7 basis points at 4.1050% and the yield on the 30-year Treasury bond slipped 3.7 basis points to 4.3418%. U.S. Treasury yields were lower on Wednesday morning as investors brace themselves for two key pieces of economic data in the second half of the week. Two significant pieces of economic data are on the slate this week: a preliminary fourth-quarter gross domestic product growth figure is due on Thursday, followed by the Commerce Department's closely watched personal consumption expenditures price index for December on Friday. Both data points will inform the Federal Reserve as it maps out when and by how much to begin cutting interest rates, which will be a key factor in determining the path of markets and the economy this year. Auctions will be held for $60 billion of 17-week Treasury bills, $61 billion of 5-year notes and $28 billion of 2-year FRNs (floating-rate notes).

Persons: Jim Reid, Bullard, Reid, that's Organizations: Treasury, U.S, Commerce, Federal Reserve, Deutsche Bank's, Global, Bank of Canada, European Central Bank, St Louis Fed, PMI

☆ Markets tried to fight the Fed on rate cuts. It didn’t work
▼ + stars: | 2024-01-21 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

Now there’s roughly a 50/50 chance that the Fed could either cut rates or hold them steady in March, according to futures. A few developments this past week tempered investors’ optimism, and now the possibility of a rate cut in March could be completely thrown out the window, according to economists. He echoed other Fed officials who’ve recently said that beginning to cut rates in March is just not realistic. In addition to officials’ comments, recent economic data also doesn’t bode well for a March rate cut. Markets are expecting twice as many rate cuts this year than what Fed officials themselves estimated in their latest economic projections released in December.

Persons: ’, Christopher Waller, ”, who’ve, Loretta Mester, “, Mary Daly, it’s, Daly, bode, Waller, ” Bill Adams, ” Daniel Altman, Jerome Powell’s, Donald Trump, Christine Lagarde, couldn’t, Jamie Dimon, Trump, Joe Biden, Bank of America’s Brian Moynihan, OpenAI’s Sam Altman, Johnson, Lockheed Martin, Levi Strauss, Booz Allen Hamilton, CNN’s Elisabeth Buchwald Organizations: CNN Business, Bell, DC CNN — Federal Reserve, Fed, Brookings Institution, ” Cleveland Fed, Bloomberg, ” San Francisco Fed, Fox Business, Commerce Department, Labor Department, Employers, Comerica Bank, CNN, Biden, Trump, Economic, European Central Bank, ”, JPMorgan, Bank of America’s, United Airlines, The Bank of Japan, Netflix, General Electric, Procter, Gamble, Johnson, Verizon, Lockheed, Haliburton, Tesla, IBM, Bank of Canada, Global, American Airlines, Southwest Airlines, Alaska Airlines, Co, Visa, Intel, Mobile, Comcast, Capital, US Commerce Department, Chicago Fed, US Labor Department, American Express, Colgate, Palmolive, Booz, National Association of Realtors Locations: Washington, ” San, East, Iran, Davos, Switzerland, Iowa, Swiss, United States

☆ A 27-year-old freelance writer increased his income by more than 50% in one year. He explains how GPT-4 and other tools help him bring in six-figures working just 3 hours a day.
▼ + stars: | 2023-12-19 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +7 min

Read previewIn 2022, Vancouver-based freelance writer Tony Dong made CA$149,000 working about 30 hours per week. "I was kind of stuck, and the choice was between working more hours and billing more or working more efficiently," the financial writer told Business Insider. AdvertisementThanks to GPT-4 and other tools, Dong managed to increase his income by more than 50% in 2023 — he's on track to earn CA$238,000 (about $180,000) as of December 2023 — while working fewer hours. His process looks very similar to how it did in 2022 — he was also using AI tools last year. At the end of the day, "your job as a writer is to make the editor's job as easy as possible."

Persons: —, Tony Dong, Dong, he's, GPT, It's, I'm, they're Organizations: Service, Bank of, Business, . News, USA, Google, Microsoft Locations: Vancouver, GPT, Grammarly

The moon rises over the Toronto city skyline as seen from Milton, Ontario, Canada, January 23, 2016. REUTERS/Mark Blinch/File Photo Acquire Licensing RightsTORONTO, Dec 4 (Reuters) - Canadian banks had a mixed fourth quarter but a common theme underlining all the reports was the rise in bad loan provisions, signalling that lenders were strapping in for a shaky economy. Impaired loans related to residential mortgages, real estate and construction were also higher from the prior quarter, indicating that the banks were also being cautious when considering underwriting new loans. He noted that despite the mixed results, the banks reported healthy capital levels, giving investors assurance that the banks remain resilient. Reuters Graphics($1 = 1.3559 Canadian dollars)Reporting by Nivedita Balu in Toronto; Editing by Mark PorterOur Standards: The Thomson Reuters Trust Principles.

Persons: Mark Blinch, Verecan, Colin White, Dave McKay, Mike Archibald, Nivedita Balu, Mark Porter Organizations: REUTERS, Rights, Reuters, Bank of Canada, BOC, Royal Bank of Canada, CIBC, National Bank, Scotiabank, BMO, RBC, Reuters Graphics Reuters, AGF Investments, Reuters Graphics, Thomson Locations: Toronto, Milton , Ontario, Canada

☆ National Bank of Canada's fourth-quarter profit jumps on capital markets strength
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: +1 min

The National Bank of Canada logo is seen outside of a branch in Ottawa, Ontario, Canada, February 14, 2019. REUTERS/Chris Wattie/File Photo Acquire Licensing RightsDec 1 (Reuters) - National Bank of Canada (NA.TO) reported a rise in fourth-quarter profit on Friday, as a strong performance at its capital markets unit helped offset the hit from bigger provisions. NBC's adjusted net interest income, the difference between what banks earn on loans and pay out on deposits, slumped about 35.1% to C$825 million. Its financial markets segment, however, posted an adjusted net income of C$289 million, up 42%, driven by strength in capital markets and global markets businesses. The bank's adjusted net income rose to C$867 million ($641.13 million), or C$2.44 per share, for the three months ended Oct. 31, from C$738 million, or C$2.08 per share, a year earlier.

Persons: Chris Wattie, Arasu Kannagi Basil, Shilpi Majumdar Organizations: National Bank of Canada, REUTERS, Thomson Locations: Ottawa , Ontario, Canada, Montreal, Bengaluru

☆ BoC to cut rates starting in Q2 2024, house prices seen flat in 2024: Reuters poll
▼ + stars: | 2023-11-30 | by ( Mumal Rathore | ) www.reuters.com time to read: +4 min

Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. But Macklem also said "right now, it is not time to start thinking about cutting interest rates." Interest rate futures are pricing the first rate cut in March, earlier than the poll prediction. "Accompanying labour market weakness should put downward pressure on inflation and prompt the Bank of Canada to cut the policy rate around of the spring of 2024," they wrote. That was despite several government measures announced in the latest Fall Economic Statement to boost housing supply and help lenders dealing with homeowners at risk amid high interest rates.

Persons: Blair Gable, Macklem, It's, Avery Shenfeld, Robert Hogue, Sebastian Mintah, Mumal Rathore, Ross Finley, Tomasz Janowski Organizations: Bank of Canada, REUTERS, Reuters, BoC, U.S . Federal, Barclays, CIBC Capital Markets, of Canada, RBC, Desjardins, Moody's, Thomson Locations: Ottawa , Ontario, Canada, BENGALURU, stagnate

☆ Canada's TD Bank's fourth-quarter profit falls on higher provisions
▼ + stars: | 2023-11-30 | by ( ) www.reuters.com time to read: +1 min

Nov 30 (Reuters) - TD Bank Group (TD.TO) reported a fall in its fourth-quarter profit on Thursday, as Canada's second-largest lender set aside more rainy-day funds to cover for potential sour loans. Peer Scotiabank (BNS.TO), which kicked off the Canadian banks' earnings season on Tuesday, also earmarked higher funds to prepare for potential loan losses, dragging its profit down. TD's net interest income - the difference between what banks earn on loans and pay out on deposits - fell nearly 1.8%, to C$7.49 billion. The lender's personal and commercial business posted a 1% decrease in net income, while the U.S. retail unit dipped 17%. The bank's adjusted net income fell to C$3.51 billion ($2.58 billion), or C$1.83 per share, for the three months ended Oct. 31, from C$4.07 billion, or C$2.18 per share, a year earlier.

Persons: Arasu Kannagi Basil, Shilpi Majumdar, Pooja Desai Organizations: Bank Group, Bank of Canada, PCL, Scotiabank, Thomson Locations: U.S, Bengaluru

TD said it would be challenging to meet its medium-term adjusted earnings growth target range of 7%-10% in the new fiscal year. It reported adjusted earnings of C$1.83 per share, 7 Canadian cents shy of estimates. RBC reported adjusted earnings of C$2.78 per share, comfortably beating expectations of C$2.62, according to LSEG data. CIBC also beat profit expectations as it set aside smaller-than-expected loan provisions and is slashing costs through a 5% reduction in its workforce, or about 2,400 jobs. The lender, Canada's fifth biggest, reported adjusted earnings of C$1.57 per share, compared with expectations of C$1.53.

Persons: Mark Blinch, Gabriel Dechaine, Kelvin Tran, Victor Dodig, Dave McKay, Niket, Balu, Arasu Kannagi Basil, Shinjini Ganguli, Kirsten Donovan, Mark Porter Organizations: Royal Bank of Canada, REUTERS, Canadian Imperial Bank of Commerce, RBC, National Bank, CIBC, TD Bank, Bank Nova Scotia, Bank of Montreal, Scotiabank, Tuesday, Thomson Locations: Toronto, dealmaking, PCLs, Canada, United States, U.S, Bengaluru

OTTAWA, Nov 30 (Reuters) - The Canadian economy unexpectedly contracted at an annualized rate of 1.1% in the third quarter, data showed on Thursday, avoiding a recession but showing growth stumbling ahead of next week's interest-rate decision. The economy avoided slipping into a technical recession - defined as two consecutive quarter-on-quarter contractions - because second-quarter GDP data was revised up to a 1.4% gain from an initial report of a 0.2% decline, Statistics Canada said. The BoC has remained on the sidelines since July after lifting its benchmark interest rate to a 22-year high of 5% to tame inflation. "The bottom line is that the economy is still sputtering along," said Royce Mendes, head of macro strategy at Desjardins Group. Real GDP most likely edged up 0.2% in October after a 0.1% gain in September, Statscan said.

Persons: Doug Porter, Royce Mendes, Bipan Rai, Statscan, Ismail Shakil, Steve Scherer, Dale Smith, Divya Rajagopal, Fergal Smith, Mark Porter Organizations: OTTAWA, Bank of Canada's, Statistics, BMO Capital Markets, Canadian, U.S ., BoC, Desjardins Group, Bank of Canada, Bank, CIBC Capital Markets, Thomson Locations: Canadian, Statistics Canada, North America, Ottawa, Toronto

A sign for The Bank of Nova Scotia, operating as Scotiabank, in Toronto, Ontario, Canada December 13, 2021. The lender said earnings in the 2024 fiscal year to Oct. 31 would be impacted by "slowing economic growth across its markets and increasing regulatory capital requirements" but it would also benefit from interest-earning assets. "We expect a challenging environment will persist for consumers and businesses," Chief Risk Officer Phil Thomas told analysts, citing muted Canadian economic growth, continued inflationary pressures and uncertain prospects for rate cuts. Finance chief Raj Viswanathan said deposit and loan growth were also expected to moderate from 2023 levels, noting savings levels have started coming down in Canada with inflation at multi-year highs, leaving consumers with less cash in hand. Its efforts to streamline operations resulted in a restructuring charge of C$258 million, Scotiabank said.

Persons: Carlos Osorio, Phil Thomas, Raj Viswanathan, Mike Rizvanovic, Scott Thomson, Niket, Balu, Krishna Chandra Eluri, Tomasz Janowski Organizations: The Bank of, Scotiabank, REUTERS, Bank of Nova, Finance, Bank of Canada, Thomson Locations: The Bank of Nova Scotia, Toronto , Ontario, Canada, Bank of Nova Scotia, Bengaluru, Toronto

☆ 3 things to watch in the stock market as Street aims to extend winning streak
▼ + stars: | 2023-11-25 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

(Treasury yields tend to move inversely to stock prices; as yields fall investors seeking better returns move money back into the stock market). The chipmaker once again came into its quarterly print with super-high expectations on the Street, but once again exceeded them . For this reason, we put more emphasis on monthly economic releases, such as the aforementioned personal spending report. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

Persons: Dow, Estee Lauder, Einstein, Jim Cramer's, Jim Cramer, Jim, Locker, Jeff Greenberg Organizations: Nasdaq, Federal Reserve, Treasury, Nvidia, Apple, TJX, Bank of Nova, Elbit Systems, Intuit, Hewlett Packard Enterprise, Hormel, Kroger, KR, Academy Sports, TD Bank, Royal Bank of Canada, Dell Technologies, Bank of Montreal, BMO, Jim Cramer's Charitable, CNBC, Universal, Getty Locations: Bank of Nova Scotia, AMBA

With the Canadian economy showing signs of a slowdown, money markets are pricing in the first interest rate cuts since March 2020 as soon as April, which would bring down mortgage costs. Still, more home buyers took out fixed-rate mortgages in September compared with a year ago, eschewing variable rate mortgages where the interest rate varies based on current market rates. Since then, the central bank has raised the key interest rate to a 22-year high of 5% in July. The share of fixed rate loans among five-year and three-year mortgages rose to 68% in August compared with 32% a year ago. In the first three weeks of November, 79% of mortgage seekers in Canada opted for a fixed mortgage, said Hanif Bayat, CEO of financial data firm Wowa Leads.

Persons: you've, Macklem, Sophie Tremblay, Hanif Bayat, Wowa, Carolyn Rogers, Rogers, Ryan Sims, William Coyle, Nivedita Balu, Denny Thomas, Deepa Babington Organizations: TORONTO, Bank, Bank of Canada, Montreal, NEW, National Bank analysts, BoC, The Mortgage Group Inc, Bank of, Thomson Locations: Canada, Niagara, Huntsville, Toronto

☆ Bank of Canada says rates may now be at peak, excess demand now gone
▼ + stars: | 2023-11-22 | by ( ) www.reuters.com time to read: +3 min

Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. The Bank of Canada (BoC) - seeking to control soaring inflation - hiked rates 10 times between March of last year and July 2023, pushing them up to a 22-year high of 5.00%. "Higher interest rates are squeezing many Canadians, but these rates are relieving price pressures," Macklem said. "To return to low inflation and stable growth in the years ahead, we need these higher interest rates and slow growth in the short term," he added. Some 60% of mortgage holders have yet to renew their home loans at higher rates, the BoC says.

Persons: Blair Gable, Steve Scherer, David Ljunggren OTTAWA, Macklem, David Ljunggren Organizations: Bank of Canada, REUTERS, BoC, Saint, Saint John Region Chamber of Commerce, CBC, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Saint John, Atlantic, New Brunswick, Reuters Ottawa

☆ Morning Bid: AI buzzes but market shrugs at Nvidia beat
▼ + stars: | 2023-11-22 | by ( ) www.reuters.com time to read: +5 min

A trader works on the floor of the New York Stock Exchange shortly before the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020. Remarkably, Nvidia managed to vault the sky-high bar for quarterly earnings, revenue and projections yet again in its latest update overnight. Bond volatility (.MOVE) has also fallen to two-month lows, while currency market 'vol' (.DBCVIX) is plumbing 20-month lows. CONCERN OVER HOME SALES, HOLIDAY SEASON SALESNews of a drop in U.S. existing home sales last month to a 13-year low was perhaps as important as the Fed minutes - as was warnings from more major U.S. retailers, this time Best Buy and Nordstrom, about sticky holiday season sales and the need for discounting. The dollar (.DXY) was a touch higher on Wednesday, meantime, with most overseas stock markets firmer too.

Persons: Lucas Jackson, Mike Dolan, thrall, OpenAI, Sam Altman, Changpeng Zhao, October's, Jeremy Hunt's, underperformed, Jeremy Hunt, Bernadette Baum Organizations: New York Stock Exchange, REUTERS, U.S, Nvidia, Federal, Nordstrom, University of Michigan, Bank of Canada, Treasury, Deere, Reuters Graphics Reuters, Thomson, Reuters Locations: New York, U.S, Gaza, China, yearend, York, Beijing

☆ Morning Bid: Nvidia shares take bumpy ride after hours
▼ + stars: | 2023-11-22 | by ( ) www.reuters.com time to read: +3 min

The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo Acquire Licensing RightsA look at the day ahead in European and global markets from Wayne Cole. The early focus was on Nvidia (NVDA.O), which in AI tech terms is the only company selling shovels during a gold rush. Volumes were so large and orders so backlogged that the price was - unusually - still moving erratically hours into the Asian day. A Reuters poll showed 10 of 19 economists looked for a rise, while market pricing is leaning against a move.

Persons: Wayne Cole, Changpeng Zhao, Zhao, didn't, Hunt, ECB's Centeno, Elderson, Mester, Macklem, Edmund Klamann Organizations: NVIDIA, Handout, REUTERS, Nvidia, Treasury, Fed Bank of Cleveland, Bank of Canada, Thomson Locations: Santa Clara , California, Wayne, China, Sweden's

OTTAWA, Nov 21 (Reuters) - Canada's annual inflation rate eased more than expected to 3.1% in October and core inflation measures edged down to their lowest levels in about two years, data showed on Tuesday, likely closing the door to further rate hikes. The Bank of Canada (BoC) targets 2% annual inflation. "If the door wasn't already shut to additional rate hikes, it now should be." The bank projects inflation to hover around 3.5% until mid-2024, before trickling down to its 2% target in late 2025. Dragging the annual inflation rate in October was a 7.8% drop in gasoline prices, which benefited from comparison with a price surge in October 2022.

Persons: Royce Mendes, Simon Harvey, Chrystia Freeland, Justin Trudeau's, Ismail Shakil, Steve Scherer, Dale Smith, Fergal Smith, Divya Rajagopal, Chizu Organizations: OTTAWA, Reuters, Statistics, Bank of Canada, BoC, CPI, Desjardins Group, Canadian, Justin Trudeau's Liberal, Thomson Locations: Statistics Canada, Europe, Canada, Ottawa, Toronto

☆ Canada to add spending for housing amid slow growth and high debt payments
▼ + stars: | 2023-11-21 | by ( Steve Scherer | ) www.reuters.com time to read: +3 min

Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland attends the Canada-CARICOM Summit in Ottawa, Ontario, Canada October 18, 2023. Housing Minister Sean Fraser on Monday confirmed the government is considering such a measure. Many Canadians are dealing with higher living costs and housing affordability has emerged as the main criticism against the government. Freeland has promised to use the FES to try to boost housing supply and to help Canadians struggling with inflation. The Bank of Canada hiked rates to a 22-year high of 5.00% between March of last year and July of this year.

Persons: Finance Chrystia Freeland, Blair Gable, Chrystia Freeland, Justin Trudeau's, Freeland, Derek Holt, Holt, Sean Fraser, Trudeau, Pierre Poilievre, Steve Scherer, Matthew Lewis Organizations: Finance, Canada, CARICOM, REUTERS, OTTAWA, Canada Finance, Justin Trudeau's Liberal, Scotiabank, Canadian Broadcasting Corp, Toronto Star, Housing, Monday, Conservative, Bank of Canada, Reuters, Thomson Locations: Ottawa , Ontario, Canada, FES, United States, Ottawa

☆ Downturn in Canada's economy seen deepening if US growth fades
▼ + stars: | 2023-11-20 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

The Canadian central bank expects that the economy will avoid a recession, and last month forecast growth of 0.8% for both the third and fourth quarters. Since then, preliminary data has indicted a shallow economic contraction for a second straight quarter in the third quarter. Analysts say that if U.S. activity slows, then the Canadian economy could shrink in the current quarter as well. BMO projects that U.S. growth will slow to 0.9% in the fourth quarter and that Canada's economy will shrink 1%. The potential for further weakening in the Canadian economy is already evident in money markets.

Persons: Chris Helgren, Karl Schamotta, Sal Guatieri, Stephen Brown, Brown, Fergal Smith, Jonathan Oatis Organizations: Roberts Bank, REUTERS, Rights TORONTO, Bank of, BoC, BMO Capital Markets, Federal Reserve Bank, Atlanta's, BMO, North, Capital Economics, Thomson Locations: Delta, British Columbia, Canada, United States, Bank of Canada, Canadian, U.S, sniffles, North America

Chinese Yuan and U.S. dollar banknotes are seen in this illustration taken March 10, 2023. The surge in their borrowing from Chinese banks has catapulted the yuan past the euro into becoming the second-biggest currency used in global trade finance, providing a fillip to Beijing's ambitions to internationalize the yuan. "Panda bonds are steadily promoting the renminbi's function as a funding currency", the People's Bank of China (PBOC) said a report last month. German automaker Volkswagen Group (VOWG_p.DE) told Reuters it will use its inaugural 1.5 billion yuan panda bond proceeds only for its onshore China business. ($1 = 7.2421 Chinese yuan renminbi)Reporting by Samuel Shen and Rae Wee Editing by Vidya Ranganathan and Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

Persons: Yuan, Dado Ruvic, Fiona Lim, Lim, SWIFT, Mercedes, Yuan internationalisation, Mark Williams, It's, Maybank's Lim, Williams, Samuel Shen, Rae Wee, Vidya Ranganathan, Kim Coghill Organizations: REUTERS, Rights, BMW, Crédit Agricole S.A, National Bank of Canada, People's Bank of China, Standard Chartered Bank, Bank of China's, Volkswagen Group, Reuters, Benz Group, Capital Economics, Thomson Locations: Rights SHANGHAI, SINGAPORE, China, Hong Kong, Asia, Russia, Argentina, Pakistan, Nigeria

Experts say Trudeau's carbon pricing scheme, known as the carbon tax, works well and cannot be easily replaced. Even the left-leaning New Democrats, who support Trudeau's government in parliament and have previously defended the carbon tax, are calling for the exemption. Analysts said the carbon tax carve-out is another example of inconsistent policy. CARBON TAX REBATEThe carbon tax is intended to discourage use of fossil fuels and accelerate a switch to clean energy, but the recent carve-out underlines how fragile climate policy is in the face of pressing political calculations. In September, Bank of Canada governor Tiff Macklem said the carbon tax contributes about 0.15 percentage points to the inflation rate, which was 3.8% that month.

Persons: Justin Trudeau, Jessica Lee, Richard Brooks, Brooke, Brooks, Chris Severson, Baker, Pierre Poilievre, clobber Trudeau, Shachi Kurl, Angus Reid, Kurl, Jonathan Wilkinson, Wilkinson, Macklem, Trudeau, Robert Asselin, Asselin, Nia Williams, Steve Scherer, Josie Kao Organizations: Canada's, Ontario Chamber, Economic Summit, REUTERS, Rights Ottawa, Canadian, Provincial, New Democrats, Pembina Institute, Liberal, Conservative, Angus Reid Institute, Atlantic, Natural Resources, Reuters, Bank of Canada, Business Council of Canada, The Business Council, Thomson Locations: Toronto , Ontario, Canada, Ottawa

☆ Bank of Canada: era of very low rates is likely over, people and firms must adjust
▼ + stars: | 2023-11-09 | by ( ) www.reuters.com time to read: +2 min

Senior Deputy Governor of the Bank of Canada Carolyn Rogers takes part in a news conference, announcing an interest rate decision in Ottawa, Ontario, Canada January 25, 2023. Rogers said she wanted "to stress the importance of adjusting proactively to a future where interest rates may be higher than they've been over the past 15 years". The bank increased rates 10 times between March 2022 and this July to tame inflation that peaked at more than 8% last year. However, economists expect the central bank to start easing interest rates as soon as April and money markets see them coming down around mid-year. (Reporting by Steve Scherer, editing by David Ljunggren)((Reuters Ottawa bureau, david.ljunggren@tr.com))Keywords: CANADA CENBANK/Our Standards: The Thomson Reuters Trust Principles.

Persons: Bank of Canada Carolyn Rogers, Blair Gable, Steve Scherer, David Ljunggren OTTAWA, Carolyn Rogers, Advocis, Rogers, they've, David Ljunggren Organizations: Bank of Canada, REUTERS, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Ukraine, Israel, Advocis Vancouver, West Coast, Reuters Ottawa

☆ Some Bank of Canada governors saw likely need for higher rates - minutes
▼ + stars: | 2023-11-08 | by ( ) www.reuters.com time to read: +3 min

Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. "Some members felt that it was more likely than not that the policy rate would need to increase further to return inflation to target," the minutes read. The minutes went on to say that the council decided to be "patient" and leave rates on hold. "They agreed to revisit the need for a higher policy rate at future decisions with the benefit of more information," the minutes said. The bank increased rates 10 times between March 2022 and this July, with inflation peaking at more than 8% last year.

Persons: Blair Gable, Steve Scherer, David Ljunggren OTTAWA, Macklem, David Ljunggren Organizations: Bank of Canada, REUTERS, Bank of Canada's, BoC, CBC, Reuters, Thomson Locations: Ottawa , Ontario, Canada, Reuters Ottawa

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