Canada
column for Sunday, Jan. 25/15
THE CANADIAN REPORT
(c) By
Jim Fox
The rapid collapse of oil prices has prompted the Bank of Canada to cut
its trendsetting interest rate to stabilize the economy.
“The drop in oil prices is unambiguously negative for the Canadian
economy,” central bank governor Stephen Poloz said as the rate fell to 0.75
percent from one percent where it has been for four years.
As
an oil-producing nation – selling more crude to the U.S. than any other country
– the economic impact of cheap fuel threatens Canada’s economic rebound and a
return to a balanced federal budget.
So
far, Canada’s commercial banks have made no move to lower their prime-lending
rate that is still three percent.
The rate cut immediately caused the Canadian dollar to fall by about
three cents from a week ago to the 80-cent US range but it boosted stock
markets.
The Conference Board of Canada predicted plummeting oil prices would
cause a loss of $4.3 billion in the federal government’s current-year income
and a loss of $10 billion in royalties and tax revenues for the provinces.
The federal government is also delaying its budget until April to assess
the situation.
---
An
Alberta Mountie was shot and killed while trying to apprehend a man who had
stolen a truck.
Constable David Wynn, 42, was shot twice as he chased a suspect in the
Apex Casino in St. Albert, north of Edmonton.
The suspect, Shawn Rehn, was found dead in an apparent suicide at a
nearby house.
Wynn, who had been a paramedic in Bridgewater, Nova Scotia before
becoming a Mountie in 2009, is survived by his wife, Shelly, and three sons.
---
News in brief:
- Vancouver
is ranked among the most unaffordable real estate markets in the world – just
behind Hong Kong. The Demographia International Housing Affordability Survey
found Vancouver’s median house price at $704,800 while Toronto’s was $482,900.
Victoria, Kelowna and Fraser Valley were also ranked unaffordable while
Moncton, New Brunswick is Canada's most affordable market.
-
Don Harron, who created the comedic icon Charlie Farquharson, has died at his
Toronto home at age 90. He became known internationally when he appeared for 18
seasons on the U.S. variety show Hee Haw in the 1960s.
-
The Royal Bank of Canada is returning to the United States with a $5.4-billion
deal to acquire City National Corp., based in Los Angeles, to expand its wealth
management business. Royal lost more than $1 billion when it sold its retail
banking segment in the U.S. Southeast in 2011.
---
Facts and figures:
Canada’s dollar has dropped to 80.53 cents U.S. while the U.S. dollar
returns $1.2416 in Canadian funds, before bank exchange fees.
Shaun Osborne of TD Securities said the dollar could fall by another five
cents in the next three to six months.
The
Bank of Canada lowered its key interest rate to 0.75 percent while the
prime-lending rate is unchanged at three percent.
Stock
markets are higher, with the Toronto exchange index at 14,813 points and the TSX
Venture index 676 points.
The average price of a liter of gasoline across Canada is higher at 90.31
cents (Canadian).
Lotto 6-49: (Jan. 21) 3, 15, 17, 35, 44 and 46; bonus 23. (Jan. 17) 9,
15, 21, 27, 35 and 40; bonus 5. Lotto Max: (Jan. 16) 6, 29, 30, 31, 36, 42 and
45; bonus 32.
---
Regional briefs:
-
Prosecutor Lise Archambault said a warrant for the arrest of former Montreal Canadiens’
hockey great Guy Lafleur in 2008 was justified. She spoke at a civil trial
where Lafleur is seeking $2.16 million for his “unjustified” arrest. He was
found guilty in 2009 of giving contradictory testimony at his son’s bail
hearing on sex charges but the conviction was later overturned in an appeal.
-
There are calls in Canada’s western provinces to have border agents inspect
boats of “snowbirds” returning from the U.S. for zebra and quagga mussels.
Scientists at a conference of the Invasive Species Council said the mussels
pose risks to fishing and biodiversity. There’s concern the mussels could
infest British Columbia, Alberta and Saskatchewan.
-30-
Jim Fox can be reached at canadareport@hotmail.com
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