Connect with us

Anglais

Hike, cut or stand pat? Bank of Canada decides on interest rates today

Published

on

[ad_1]

The Bank of Canada isn’t expected to change its benchmark interest rate when it reveals its latest decision Wednesday, but that doesn’t mean the bank’s policy-makers think nothing has changed in the country’s economy.

The bank’s rate, known as the target for the overnight rate, is the interest rate it charges retail banks for short-term loans, and it filters down into the rate that Canadian borrowers and savers get on savings accounts, lines of credit and variable rate mortgages.

The central bank will announce its latest rate decision at 10 a.m. ET. CBC News will have live coverage of the decision and a press conference that follows shortly after that.

In October, when the bank last raised its rate to its current level of 1.75 per cent, the central bank justified its decision by noting the various ways in which the economy was humming along. Inflation was on the high end of the range that the bank likes to see in setting monetary policy, and the job market was chugging along.

The price of a barrel of crude had fallen from its highs, but West Texas Intermediate was still trading north of $65 a barrel, and business investment was rounding into form, too. Add it all up, and the economy was on track to grow by about 2.1 per cent this year — enough to justify a modest tinkering of the bank’s rate to more normal levels.

But that was then, and this is now.

Canada’s economy has since shown enough signs of weakness that there’s speculation a cut may be coming sooner or later, and at a bare minimum economists who cover the central bank are downgrading their expectations of just how many hikes may be on the way.

On Tuesday, new numbers from Statistics Canada showed that Canada’s trade deficit doubled to $2.1 billion in November, largely because oil prices plummeted, eating into the export side of the ledger.

And according to Scotiabank economist Derek Holt, « the window on trade conditions will get cloudier yet, » as the U.S. government shutdown potentially affects December trade data and Alberta’s production cuts take down energy exports in January.

If there’s reason for optimism, Holt says, it’s that the slowdown comes on the heels of a « torrid » pace for Canadian exports earlier in the year, so some declines were to be expected. « One issue I’d like to hear the [Bank of Canada] address tomorrow is the extent to which they feel the recent data is due to … pulled forward export demand, » he said. 

Economist Avery Shenfeld with CIBC says the bank is in a tough spot, threading the needle between incorporating lowered expectations, and staying well clear of suggesting a cut might be required.

« We see the tone of the statement being along the lines of ‘we’ll get back to you later,’ rather than ‘we’re all done here, people’ in terms of further interest rate tightening, » Shenfeld said, adding that he expects the bank to stay on the sidelines until April at the earliest.

That’s a similar timeline to the one Robert Dent at Japanese investment bank Nomura Securities Inc. predicts, with a slight hike to two per cent in April followed by another cautious one at the end of the year.

Dent notes that despite some dark clouds on the horizon, Canada’s economy is doing well on a number of other fronts, notably the job market, where the jobless rate dropped to the lowest level on record in November at 5.6 per cent, and even managed to stay there through December, too.

Those data points will be factors the bank will consider, and a reason for the Bank of Canada to stay on the track it has already set for itself.

« The December statement suggests policy-makers remain confident that further rate hikes will be needed, » he said, but « the effect of rising interest rates on overly indebted households, persistently lower crude oil prices and slowing global growth all pose downside risks to the Bank of Canada outlook that may start to be acknowledged more forcefully at the January meeting. »

Bank of Montreal economist Benjamin Reitzes says with the picture looking cloudy, the bank is clearly going to err on the side of caution, but the question is, how much?

« Outside of a couple of decent domestic data points, » he said, « the policy backdrop has deteriorated, driven largely by global economic and financial conditions. Accordingly, expect more caution from Governor Poloz and the Bank to stay on the sidelines for at least the next couple of months. »

While all but one of the 18 economists tracked by Bloomberg think doing nothing is the likeliest outcome, traders in investments known as overnight index swaps think there’s about a one in six chance of a rate cut on Wednesday.

[ad_2]

Source link

قالب وردپرس

Anglais

‘Business as usual’ for Dorel Industries after terminating go-private deal

Published

on

By

MONTREAL — Dorel Industries Inc. says it will continue to pursue its business strategy going forward after terminating an agreement to go private after discussions with shareholders.

« Moving ahead. Business as usual, » a spokesman for the company said in an email on Monday.

A group led by Cerberus Capital Management had previously agreed to buy outstanding shares of Dorel for $16 apiece, except for shares owned by the family that controls the company’s multiple-voting shares.

But Dorel chief executive Martin Schwartz said the Montreal-based maker of car seats, strollers, bicycles and home furniture pulled the plug on a deal on the eve of Tuesday’s special meeting after reviewing votes from shareholders.

“Independent shareholders have clearly expressed their confidence in Dorel’s future and the greater potential for Dorel as a public entity, » he said in a news release.

Dorel’s board of directors, with Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel recused, unanimously approved the deal’s termination upon the recommendation of a special committee.

The transaction required approval by two-thirds of the votes cast, and more than 50 per cent of the votes cast by non-family shareholders.

Schwartz said enhancing shareholder value remains a top priority while it stays focused on growing its brands, which include Schwinn and Mongoose bikes, Safety 1st-brand car seats and DHP Furniture.

Dorel said the move to end the go-private deal was mutual, despite the funds’ increased purchase price offer earlier this year.

It said there is no break fee applicable in this case.

Montreal-based investment firm Letko, Brosseau & Associates Inc. and San Diego’s Brandes Investment Partners LP, which together control more than 19 per cent of Dorel’s outstanding class B subordinate shares voiced their opposition to the amended offer, which was increased from the initial Nov. 2 offer of $14.50 per share.

« We believe that several minority shareholders shared our opinion, » said Letko vice-president Stephane Lebrun, during a phone interview.

« We are confident of the long-term potential of the company and we have confidence in the managers in place.”

Continue Reading

Anglais

Pandemic funds helping Montreal businesses build for a better tomorrow

Published

on

By

Many entrepreneurs have had to tap into government loans during the pandemic, at first just to survive, but now some are using the money to better prepare their businesses for the post-COVID future.

One of those businesses is Del Friscos, a popular family restaurant in Dollard-des-Ormeaux that, like many Montreal-area restaurants, has had to adapt from a sit-down establishment to one that takes orders online for takeout or delivery.

“It was hard going from totally in-house seating,” said Del Friscos co-owner Terry Konstas. “We didn’t have an in-house delivery system, which we quickly added. There were so many of our employees that were laid off that wanted to work so we adapted to a delivery system and added platforms like Uber and DoorDash.”

Helping them through the transition were emergency grants and low-interest loans from the federal and provincial governments, some of which are directly administered by PME MTL, a non-profit business-development organization established to assist the island’s small and medium-sized businesses.

Konstas said he had never even heard of PME MTL until a customer told him about them and when he got in touch, he discovered there were many government programs available to help his business get through the downturn and build for the future. “They’ve been very helpful right from day one,” said Konstas.

“We used some of the funds to catch up on our suppliers and our rents, the part that wasn’t covered from the federal side, and we used some of it for our new virtual concepts,” he said, referring to a virtual kitchen model which the restaurant has since adopted.

The virtual kitchen lets them create completely different menu items from the casual American Italian dishes that Del Friscos is known for and market them under different restaurant brand names. Under the Prasinó Soup & Salad banner, they sell healthy Greek options and their Stallone’s Sub Shop brand offers hearty sandwiches, yet the food from both is created in the same Del Friscos kitchen.

Continue Reading

Anglais

Downtown Montreal office, retail vacancies continue to rise

Published

on

By

Some of downtown Montreal’s key economic indicators are heading in the wrong direction.

Office and retail vacancies in the city’s central core continued to climb in the fourth quarter of 2020, according to a quarterly report released Thursday by the Urban Development Institute of Quebec and the Montréal Centre-Ville merchants association. The report, whose first edition was published in October, aims to paint a socio-economic picture of the downtown area.

The survey also found office space available for sublet had increased during the fourth quarter, which may foreshadow even more vacancies when leases expire. On the residential front, condo sales fell as new listings soared — a sign that the downtown area may be losing some of its appeal to homeowners.

“It’s impossible not to be preoccupied by the rapid increase in office vacancies,” Jean-Marc Fournier, the former Quebec politician who now heads the UDI, said Thursday in an interview.

Still, with COVID-19 vaccinations set to accelerate in the coming months, “the economic picture is bound to improve,” he said. “People will start returning downtown. It’s much too early to say the office market is going to disappear.”

Public health measures implemented since the start of the pandemic almost a year ago — such as caps on office capacity — have deprived downtown Montreal of more than 500,000 workers and students. A mere 4,163 university and CEGEP students attended in-person classes in the second quarter, the most recent period for which figures are available. Border closures and travel restrictions have also brought tourism to a standstill, hurting hotels and thousands of local businesses.

Seventy per cent of downtown workers carried out their professional activities at home more than three days a week during the fourth quarter, the report said, citing an online survey of 1,000 Montreal-area residents conducted last month.

Continue Reading

Chat

Sex2 semaines ago

Dix films avec des scènes de sexe non simulées qui ont fait polémique

Sex2 semaines ago

Sexe et cannabis : mélange miraculeux ou poison pour le couple ?

Sex2 semaines ago

Chantage émotionnel, dénigrement, harcèlement sexuel : Une jeune scientifique écrit aux comités nationaux d’éthique

Sex2 semaines ago

10 films sur le sexe et le plaisir pour oublier la distanciation sociale

Sex2 semaines ago

Les meilleurs sextoys pour le clitoris

Sex2 semaines ago

Dua Lipa, la reine du melting-pop qui allège le quotidien confiné de ses millions de fans

Sex2 semaines ago

Une série d’ici primée à l’étrange

Technologie3 semaines ago

TELUS adopte une nouvelle promesse de marque

Technologie3 semaines ago

La tech agricole Farmers Edge entre en Bourse à 18 fois ses revenus

Technologie3 semaines ago

NEC Canada accueille Combat Networks en tant que revendeur officiel de UNIVERGE® BLUE CLOUD SERVICES

Technologie3 semaines ago

La relance économique sera verte dans le Bas-Saint-Laurent

Technologie3 semaines ago

Ottawa injecte 2,75 milliards $ pour électrifier la flotte d’autobus au pays

Technologie3 semaines ago

L’entreprise montréalaise Native Touch fait l’acquisition du studio Candy Banners

Actualités3 semaines ago

Lionbridge conclut la vente de sa division d’intelligence artificielle (IA) à TELUS International

Actualités3 semaines ago

Le rôle stratégique et essentiel des métaux rares pour la santé

Actualités3 semaines ago

«Crypto-art» : l’œuvre numérique de la chanteuse Grimes vendue 6 millions de dollars

Actualités3 semaines ago

Un rapport révèle des inégalités pour les femmes de couleur dans les postes de direction canadiens qui font écho au secteur de la technologie

Actualités3 semaines ago

La demande de main-d’œuvre des startups canadiennes montre des signes de reprise au quatrième trimestre: rapport

Actualités3 semaines ago

En attendant la fibre optique

Affaires4 semaines ago

L’Alberta demande à Ottawa d’investir des milliards dans la capture du carbone

Anglais2 années ago

Body found after downtown Lethbridge apartment building fire, police investigating – Lethbridge

Styles De Vie2 années ago

Salon du chocolat 2018: les 5 temps forts

Anglais2 années ago

This B.C. woman’s recipe is one of the most popular of all time — and the story behind it is bananas

Santé Et Nutrition2 années ago

Gluten-Free Muffins

Anglais2 années ago

27 CP Rail cars derail near Lake Louise, Alta.

Anglais2 années ago

Man facing eviction from family home on Toronto Islands gets reprieve — for now

Santé Et Nutrition2 années ago

We Try Kin Euphorics and How to REALLY Get the Glow | Healthyish

Anglais2 années ago

Ontario’s Tories hope Ryan Gosling video will keep supporters from breaking up with the party

Anglais2 années ago

A photo taken on Toronto’s Corso Italia 49 years ago became a family legend. No one saw it — until now

Anglais3 années ago

Condo developer Thomas Liu — who collected millions but hasn’t built anything — loses court fight with Town of Ajax

Styles De Vie3 années ago

Renaud Capuçon, rédacteur en chef du Figaroscope

Anglais2 années ago

This couple shares a 335-square-foot micro condo on Queen St. — and loves it

Mode2 années ago

Paris : chez Cécile Roederer co-fondatrice de Smallable

Anglais2 années ago

Ontario Tories argue Trudeau’s carbon plan is ‘unconstitutional’

Styles De Vie2 années ago

Ford Ranger Raptor, le pick-up roule des mécaniques

Affaires2 années ago

Le Forex devient de plus en plus accessible aux débutants

Anglais2 années ago

100 years later, Montreal’s Black Watch regiment returns to Wallers, France

Technologie2 années ago

YouTube recommande de la pornographie juvénile, allègue un internaute

Anglais2 années ago

Trudeau government would reject Jason Kenney, taxpayers group in carbon tax court fight

Anglais2 années ago

Province’s push for private funding, additional stops puts Scarborough subway at risk of delays

Trending