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The traditional relationship between so-called bond proxies like telcos, utilities and REITs, and bonds themselves, has broken down. While these sectors usually lag the broader market when interest rates rise, and lead the market when rates fall, the correlation between bond proxies and the rest of the market is now near zero. Jonathan Golub, chief equity strategist at RBC Capital Markets, pointed out that bond proxies are behaving more like bonds than usual, and in the past year, the group has ...
Scotiabank boosted its second-quarter net income by 30 per cent to $2.06 billion, in a period that saw all of the country’s biggest banks shrug off concerns about high house prices and overstretched borrowers. Scotiabank’s earnings amounted to $1.62 per share, compared with $1.23 per share or $1.58 billion of net income during the second quarter of 2016. The bank had $6.58 billion of revenue during the three-month period ended April 30, compared with $6.59 billion a year ago. All of Canada...
CALGARY • Alberta is spending more money per person through the oil price collapse than Ontario’s government did at the height of the 2008/2009 recession, according to a report released Tuesday. The Vancouver-based Fraser Institute released a report Tuesday comparing deficits in Alberta and Ontario during the two downturns and found the Alberta government is spending 65 per cent more per person than Ontario did. Adjusted for inflation, the report says that Alberta’s government deficits ove...
The campus spirit of shouting down and silencing any opinion you disagree with has spread to the media and non-profit groups. There is nothing improper in news organizations promoting their editorial opinions or endorsing the party of their choice come election time. It is also fair game for publications to hire writers reflecting their editorial mandate and think tanks to hire those who share their vision. But it is another matter to discipline or fire writers, editors or think-tank directors f...
Good morning. Editor Nicole MacAdam (@nicole_mac1) here. Husky green lights a $2.2 billion offshore project in a “motivated” Newfoundland, an economic forecast says the Western provinces are expected to fuel economic growth, and cyber attacks are expected to rise — but few companies are prepared. Happy Tuesday! ‘Motivated’ Newfoundland lands $2.2B Husky project Husky Energy has given the thumbs up to the next big project offshore of Newfoundland and Labrador, showi...
Over the past decade, Ontario emerged as the poster child for poor fiscal management in Canada, due largely to the province’s deep run of deficits. However, thanks to a decade of rapid spending growth and a painful decline in oil prices, Alberta’s current run of deficits is even worse than the biggest deficits in Ontario’s depressing fiscal history. Consider this. Up until the start of Alberta’s recent recession, Ontario’s per-person deficits were more than twice as large as any defic...
Husky Energy Inc. gave the thumbs up Monday to the next big project in Newfoundland and Labrador’s offshore, showing the era of oil megaprojects is far from over — particularly where they are still popular. In an interview Monday, Husky president and CEO Rob Peabody said the attractiveness of the $2.2-billion West White Rose Project improved thanks to cost savings that boosted returns and “very constructive negotiations” with a motivated provincial government. “There were some minor is...
In the great natural resource company shakeout which lasted from 2009 to 2016, Orefinders (V.ORX) was very nearly a casualty. “We actually founded the company in 2012,” said Stephen Stewart Orefinders CEO, “We were not interested in operating a mine. We wanted to explore land we thought was prospective.” The company raised 6 million dollars in 2013 and got to work on its Mirado Gold Project located thirty-five kilometers south-east of the town Kirkland Lake Ontario, a region which is the...
Royal Bank of Canada’s investment arm has launched a new coaching program for LGBT professionals in the capital markets industry in the Greater Toronto area, which the bank says is the first program of its kind in the country. The program, called Common Grounds, has been launched in a partnership with LGBT in Capital Markets, a not-for-profit organization that advances LGBT individuals in the capital markets industry. “There is a tremendous business case for diversity, and this progr...
Through a series of small but decisive steps taken over the past 18 months, Deveron UAS Corp., a drone data services company that focuses on the agriculture sector, is slowly taking flight. The latest development in that steady build came Monday when Deveron announced that it had been given the green light by the Minister of Transport to operate across Canada. Prior to this, Deveron, which started life in 2012 as Deveron Resources and whose major shareholder is Greencastle Resources, had receive...
Bombardier’s ongoing five-year restructuring campaign is on track to significantly improve operating margins, according to a BMO analyst who is upgrading the stock despite the turnaround plan’s high degree of risk. Fadi Chamoun raised the Quebec-based company’s rating from perform to outperform and said the 2020 valuation could surpass $5.00 if management is successful with the  plan, which aims to improve productivity while reducing costs and focusing on key product dev...
TORONTO — The benefits of Ontario’s renewed economic growth are not shared evenly across the province, Premier Kathleen Wynne said Monday as she planned to announce a raise to minimum wage as well as much anticipated changes to labour laws. Wynne and Labour Minister Kevin Flynn are scheduled to make the announcements Tuesday morning. “Now that we have an economy that really is doing so well, and is leading, we can now distribute that well-being a bit better,” she told The...
As hackers find more ways to compromise computers — from phishing to malicious web pages to taking advantage of user carelessness — and cyber-criminals go from pranksters or individual hackers to well-oiled commercial organizations that may even be funded by nation-states, security vendors are developing increasingly sophisticated technologies to help their customers fight back. With the proliferation of attacks, security companies are being forced to search for new solutions as cyber-c...
Two of the most common mistakes people make when investing are extrapolating past performance into the future and putting all of their eggs in one basket. Canadians are no different. In fact, we think they have recently been more prone to making these errors than people in other developed nations. Take a look at our economy for example, which is shaping up to be one driven primarily by real estate and a debt-heavy consumer. The Canadian housing boom is something to be marvelled at, with our home...
CALGARY – Canada’s three most westerly provinces will lead the country in real GDP growth this year as a result of increasing oil production and rising housing prices, the Conference Board of Canada predicts. The Conference Board released growth forecasts for each province Monday, which showed that Alberta’s economy will grow 3.3 per cent next year – the highest growth rate in the country – followed by 2.5 per cent real GDP growth in both Saskatchewan and British Columbia. While a rebo...
WINNIPEG/MONTREAL — Canadian rail shippers are urging Ottawa to intervene in a looming strike at Canadian National Railway Co, the country’s largest railroad, fearing that a shut-down would immediately damage business. The union representing CN’s 3,000 Canadian conductors has set a strike deadline of Tuesday at 4 a.m. EDT (0800 GMT) after the railroad announced new work rules during negotiations to replace an expired contract. It would be the first strike by CN conductors, or train...
PARIS — Global sales of personal luxury goods will grow by a stronger- than-expected 2 to 4 per cent at constant exchange rates in 2017, as higher spending in Europe and China outpace weakness in the United States and southeast Asia, a report showed on Monday. In 2017, total revenue in the sector that includes watches, jewelry, clothes, shoes and leather goods will rise to 254 billion to 259 billion euros (US$284 billion to $289.25 billion) from 249 billion euros in 2016, the study by consulta...
To compile this article, we interviewed Amir Surhangi, head of the carrier messaging program at Google, and Upinder Saini, vice-president of wireless product management at Rogers. What is RCS? Short for Rich Communication Services (alternatively known as Advanced Messaging), RCS is a next-generation SMS messaging protocol. It allows users to take advantage of a number of features that were previously exclusive to over-the-top messaging apps like WhatsApp and iMessage. For instance...
“Sell in May and go away” is perhaps the oldest saw on Wall Street, but it appears there’s no shortage of U.S. mutual funds doing exactly that this year. After all, the S&P 500 has delivered a total return, including reinvested dividends, of 10.8 per cent over the last six months, essentially capturing all of the average rolling 12-month total return on the index since 1990, so why not cash in? Indeed, political drama and high valuations are clearly driving some investors t...
I completely missed the Conservative leadership excitement Saturday. I spent all day in a hotel meeting room in Vancouver talking to 25 Canadian journalists about economics. It’s a Fraser Institute initiative built on the belief that if Canadian journalists better understand economics then so, eventually, will their readers, listeners and viewers, and in the long run that will produce better public policy. It’s a leap of faith, admittedly. The Fraser Institute normally sets great sto...