Canada column for Sunday, Jan. 22/17
THE CANADIAN REPORT
(c) By Jim Fox
Canada’s dollar
slipped in value after the central bank warned further interest rate cuts are
possible amid uncertainty surrounding U.S. President Donald Trump’s potential protectionist
policies.
Bank of Canada
governor Stephen Poloz said there are concerns about the Canadian economy
deteriorating as the dollar fell more than one cent to below 75 cents U.S.
coupled with falling oil prices.
Another concern were
comments by Trump hinting he might be in favor of a weaker U.S. dollar.
Poloz warned there
would be “material consequences” for trade if protectionist policies come into
effect under Trump between the world’s two largest trading partners.
For now, the central
bank has left its trendsetting interest rate at 0.5 percent where it has been
since July 2015.
A rate cut “remains
on the table” and it will be there as long as downside risks are present, Poloz
said.
Canada’s annual rate
of inflation rose to 1.5 percent last month, up from 1.2 percent in November,
but was a smaller increase than expected as lower food costs helped offset
gasoline price increases.
---
Interest by
Americans in Canadian property with the election of President Donald Trump is growing.
Royal LePage real
estate said U.S. traffic on its website surged 329 percent the day after the
U.S. election and has climbed 210.1 percent year-over-year after Trump’s
victory.
Three-quarters of
the inquiries concerned residential properties, primarily in Ontario, British
Columbia and Quebec.
“With our country’s
ever-growing global reputation as a financially sound, happy and culturally
tolerant place to raise a family, it is not surprising that interest has moved
from a place to play, to a potential place to live and work,” said Royal LePage
president and CEO Phil Soper.
---
News in brief:
- Outspoken
multi-millionaire businessman and TVpersonality Kevin O’Leary has joined the
race seeking the leadership of the Conservative Party. O’Leary, 62, joins packed
field of 14 candidates seeking to succeed former Prime Minister Stephen Harper
whose government was defeated by the Liberals in October 2015. The party will
vote for the leader on May 27.
- Restaurant Brands
International, parent company of Tim Hortons and Burger King, will launch an order-and-payment
app nationwide this spring at its 4,000 outlets. It will allow customers to
order and pay in advance on their smartphones without lining up at a cashier
and follows a similar move by Starbucks. McDonald’s restaurants in Canada also
have self-serve kiosks.
---
Facts and figures:
The Canadian dollar
is lower at 75.11 cents U.S. while the U.S. dollar returns $1.331 Canadian,
before exchange fees.
The Bank of
Canada’s key interest rate is steady at 0.5 percent while the prime-lending
rate is 2.7 percent.
Stock markets are higher,
with the Toronto exchange index at 15,539 points while the TSX Venture index is
798 points.
The average price
for gas in Canada is lower at $1.089 a liter or $4.13 (Canadian) for a U.S.
gallon.
Lotto 6/49: (Jan.
18) 10, 17, 20, 24, 33 and 35; bonus 28. (Jan. 14) 1, 6, 19, 30, 32 and 44;
bonus 33. Lotto Max (Jan. 13) 2, 8, 24, 30, 31, 38 and 40; bonus 42.
---
Regional briefs:
- U.S. wineries are
launching an international trade complaint against British Columbia’s decision
to sell only its wine in grocery stores. “The United States simply seeks equal
opportunities to market our wines, consistent with Canada's international
obligations,” said acting U.S. Agriculture Secretary Michael Scuse.
- Shell plans to
seal two exploration wells off Nova Scotia, saying they don’t have the
potential for “commercial quantities of oil.” It will abandon the Monterey Jack
and Cheshire Deepwater wells, resulting in a setback for the province looking
to tap into offshore riches. Shell still has an option to drill additional
exploration wells if desired.
- New Brunswick and
Sears Canada will be partners in two business centers. The provincial
government will provide about $8.7 million for the centers in Saint John and
Edmundston. They will create about 900 jobs. Sears executive chairman Brandon Stranzl
said the Canada-based teams will help improve customer service now based mostly
in the Philippines.
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Jim Fox can be reached at canadareport@hotmail.com
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