Author: Consultant

  • Attorney General Merrick Garland names Jack Smith special counsel in Trump criminal probes

    Attorney General Merrick Garland names Jack Smith special counsel in Trump criminal probes

    • U.S. Attorney General Merrick Garland named former federal prosecutor Jack Smith special counsel for two criminal investigations by the Department of Justice of former President Donald Trump.
    • Smith’s appointment came three days after Trump, a Republican, announced plans to run for president in 2024.
    • One investigation that Smith will handle is currently looking into whether any person, including Trump, unlawfully interferred with the transfer of presidential power following the 2020 election, or the certification of the Electoral College vote in President Joe Biden’s favor on Jan. 6, 2021.
    • The other DOJ probe is focused on whether Trump broke the law and obstructed justice in connection with his removal of hundreds of documents from the White House, which were shipped to his residence at Mar-a-Lago club in Palm Beach, Florida.

    https://www.cnbc.com/2022/11/18/attorney-general-merrick-garland-to-name-special-counsel-in-trump-criminal-probe-report-says.html

  • Economic Calendar: Nov 21 – Nov 25

    Economic Calendar: Nov 21 – Nov 25

    Monday November 21

    Germany PPI

    (8:30 a.m. ET) U.S. Chicago Fed National Activity Index for October.

    ==

    Tuesday November 22

    Euro zone consumer confidence

    (8:30 a.m. ET) Canadian retail sales for September. The Street is forecasting a decline of 0.5 per cent from August.

    (8:30 a.m. ET) Canada’s new housing price index for October. Estimate is a drop of 0.2 per cent month-over-month

    (8:30 a.m. ET) Canadian manufacturing sales for October.

    (8:30 a.m. ET) Canadian wholesale trade for October.

    (11:45 a.m. ET) Bank of Canada Deputy Governor Carolyn Rogers conducts a fireside chat on risks to the stability of the Canadian financial system

    Earnings include: Alimentation Couche-Tard Inc.; Analog Devices Inc.; Best Buy Co. Inc.; Canadian Solar Inc.; Dollar Tree Inc.; George Weston Ltd.; HP Inc.; Medtronic PLC; VMware Inc.; Zoom Video Communications Inc.

    ==

    Wednesday November 23

    Japanese markets closed

    Euro zone PMI

    (8:30 a.m. ET) U.S. initial jobless claims for week of Nov. 19. The estimate is 225,000, up 3,000 from the previous week.

    (8:30 a.m. ET) U.S. durable goods orders for October. The Street expects a rise of 0.4 per cent from September with core orders increasing 0.3 per cent.

    (9:45 a.m. ET) U.S. S&P Global Manufacturing PMI for November.

    (10 a.m. ET) U.S. new home sales for October. The Street is forecasting an annualized rate decline of 5.5 per cent.

    (10 a.m. ET) U.S. University of Michigan Consumer Sentiment Index for November.

    (2 p.m. ET) U.S. Fed minutes for Nov. 1-2 meeting released.

    (4:30 p.m. ET) Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers appear before the House Standing Committee on Finance

    Earnings include: Deere & Co.; Dell Technologies Inc.

    ==

    Thursday November 24

    U.S. markets closed (Thanksgiving)

    Japan PMI, department store sales and machine tool orders

    Germany business climate

    (8:30 a.m. ET) Canada’s Survey of Employment, Payrolls and Hours for September.

    ==

    Friday November 25

    Germany CPI and consumer confidence

    Also: Canada’s Fiscal Monitor for September.

  • NFI Group reports US$42.6-million third-quarter loss, revenue up from year ago

    NFI Group reports US$42.6-million third-quarter loss, revenue up from year ago

    NFI Group Inc. NFI-T +0.69%increase reported a loss of US$42.6-million in its latest quarter compared with a loss of US$15.4-million in the same quarter last year as its revenue edged higher.

    NFI chief executive Paul Soubry says the results reflect the ongoing impacts of unreliable supplier performance, associated production inefficiencies and heightened inflation on input costs.

    The bus maker, which keeps its books in U.S. dollars, says the loss amounted to 56 cents per share for the company’s third quarter compared with a loss of 22 cents per share a year earlier.

    Revenue for the quarter totalled US$514.0-million, up from US$492.0 in its third quarter of 2021.

    On an adjusted basis, NFI says it lost 63 cents per share in its latest quarter compared with an adjusted loss of 16 cents per share in the same quarter last year.

    The company says it is in talks with Export Development Canada, the Manitoba government and other banking syndicate members regarding credit facility covenant relief and potential financing solutions.

  • Keystone oil pipeline issues resolved after storms cause volumes to be cut

    Keystone oil pipeline issues resolved after storms cause volumes to be cut

    The weather issues that prompted TC Energy to declare force majeure on Keystone oil pipeline deliveries this week have been resolved but the company will reduce injections for the rest of November, according to a market source.

    Calgary-based TC said on Tuesday it was curtailing volumes on the 622,000 barrel-per-day (bpd) pipeline after the line was hit by three separate storms between Nov. 4 and Nov. 11. The company did not specific the size or duration of the cut in volumes, but market players estimated it at about 7 per cent.

    The storms caused power failures at two pump stations on the U.S. part of the system and at the Patoka, Illinois, delivery station, causing the pipeline to temporarily shut down, the source said.

    Keystone ships crude from Alberta’s oil sands to the U.S. Midwest and on to the Gulf Coast, and is a key part of Canada’s oil export network.

    The events have been resolved and the pipeline is operational, but the cumulative impacts prompted TC to reduce November injections, he added.

    TC did not respond to a request for comment.

    Western Canadian crude is trading at a discount of about $29 under the U.S. benchmark WTI, due to weak refining demand and months of U.S. strategic reserve releases that have added to competition for heavy Canadian oil.

  • Canada’s annual inflation rate steady at 6.9 per cent in October as gas costs climb

    Canada’s annual inflation rate steady at 6.9 per cent in October as gas costs climb

    Canada’s inflation rate held steady in October after slowing for three months, increasing the likelihood that the Bank of Canada will raise interest rates again in December.

    The Consumer Price Index rose 6.9 per cent in October from a year earlier, matching the inflation rate in September, Statistics Canada said in a report on Wednesday. The result was in line with analyst expectations. On a monthly basis, consumer prices rose 0.7 per cent – just shy of the 0.8-per-cent increase that Bay Street analysts had predicted.

    After hitting a near-four-decade high of 8.1 per cent in June, the annual inflation rate has eased somewhat, largely because gasoline prices have fallen from record highs seen in the aftermath of Russia’s invasion of Ukraine.

    But that dynamic shifted again in October. Gas prices jumped 9.2 per cent from September, which Statscan attributed to a weaker Canadian dollar and announcements of oil production cuts overseas. The increase in gasoline costs offset slowing price growth for other items, such as groceries and travel-related expenses.

    Several analysts were encouraged by the underlying details in Wednesday’s report. For instance, core inflation (excluding food and energy) rose 0.2 per cent in October on a monthly basis, the slowest increase seen this year. Some other short-term indicators also suggest price growth is fading quickly. But inflation remains lofty, meaning the Bank of Canada will likely have to hike rates in December in order to bring it under control.

    “Canadian consumers are obviously still feeling the pinch from high inflation,” said Royce Mendes, head of macro strategy at Desjardins Securities. “However, the underlying trend is slowing and would be consistent with maybe the Bank of Canada hiking rates just once more.”

    The Bank of Canada has raised its benchmark interest rate to 3.75 per cent from a pandemic low of 0.25 per cent in March, in its most aggressive rate-hike campaign in decades. Its next rate decision is on Dec. 7.

    The central bank has said in several public statements that further rate increases will be needed to slow the economy and quell inflation. Financial analysts are divided over whether the bank will hike by 25 or 50 basis points next month. And they have also expressed differing views on where rates will peak in 2023. (There are 100 basis points in a percentage point.)

    “The economy is in excess demand, the job market is too tight, and inflation is too high,” Bank of Canada Governor Tiff Macklem said last week in a speech. “Monetary policy has begun to have an impact, but it will take time for the effects of higher interest rates to spread through the economy and reduce demand and inflation.”

    As borrowing costs have risen, Canada’s housing market has entered a slump. Those taking out loans or renewing their mortgages are facing higher costs that are crimping household budgets. The Statscan report showed that mortgage interest costs rose 11.4 per cent in October over the previous year, the largest increase since early 1991.

    Rents, meanwhile, rose 4.7 per cent over the past year, marking the ninth consecutive month they have done so. The rental market is under pressure from strong population growth, home affordability challenges and decades without enough apartment construction.

    Consumers saw a reprieve of sorts at the supermarket. Grocery prices climbed at an annual rate of 11 per cent, slowing from 11.4 per cent in September. Still, prices are growing near the highest rates in several decades. And the increases have been hefty for some staples: Over the past year, pasta prices have risen by 45 per cent, lettuce by 30 per cent and soup by 18 per cent.

    Despite the recent moderation in general prices, paycheques continuing to lag behind inflation. In October, average hourly wages rose 5.6 per cent from a year earlier. This means the average worker is experiencing a decline in their purchasing power, leading many unions to bargain for better pay.

    Mr. Macklem has recently warned that the labour market is overheating, and that unemployment will need to rise to help ease inflation. More than 100,000 jobs were created in October, erasing all the positions that were lost this summer. The unemployment rate held at 5.2 per cent, among the lowest seen in nearly five decades of comparable data. In this hiring environment, companies will often have to raise wages substantially to recruit workers.

    “The tightness in the labour market is a symptom of the general imbalance between demand and supply that is fuelling inflation and hurting all Canadians,” Mr. Macklem said last week.

    Labour groups have frequently criticized Mr. Macklem for what they perceive as him blaming workers for high inflation, rather than focusing on policy decisions or the corporate sector’s role in pricing.

    Mr. Mendes projects the Bank of Canada will hike its policy rate once more in December, by 25 basis points, which would be the bank’s smallest move since March. This, he said, would come as a relief to households, many of which are highly indebted. He also cited risks for variable-rate mortgage holders, who are immediately affected by every increase in borrowing rates.

    “For that reason, I think the Bank of Canada probably needs to be very cautious on taking rates materially higher,” he said. “And given that inflation is co-operating, they probably can step down to just a 25-basis-point rate increase.”

  • Xi confronts Trudeau at G-20, says private conversation was ‘leaked’ to media: ‘Not appropriate’

    Xi confronts Trudeau at G-20, says private conversation was ‘leaked’ to media: ‘Not appropriate’

    Chinese Communist Party President Xi Jinping took a stern tone with Canadian Prime Minister Justin Trudeau at the G-20 world meeting in Indonesia on Wednesday, complaining of “inappropriate” leaks to the press. 

    The confrontation followed Canadian government sources‘ discussion of the world leaders’ conversation on the sidelines of the G-20 on Tuesday, where Trudeau reportedly voiced “serious concerns” about Chinese attempts to influence the country.

    “Everything we discussed has been leaked to the papers. That’s not appropriate,” Xi told Trudeau in an informal conversation at the G-20, according to video shot by a Canadian pool reporter. “And that’s not the way the conversation was conducted.”

  • Higher TFSA contribution limit and lower taxes are among the rare upsides of high inflation

    Higher TFSA contribution limit and lower taxes are among the rare upsides of high inflation

    Canadians are about to get a small consolation prize for suffering through soaring living costs, as inflation results in bigger benefits and lower taxes for many.

    One example? The annual contribution limit for the tax-free savings account is set to rise to $6,500 in 2023, up from $6,000 in 2022. That’s an extra $500 a year Canadians can save and invest in their TFSAs to enjoy tax-free returns.

    And as the government recalculates income thresholds for both benefits and taxes based on an unusually high inflation measure, Canadians can look forward to several other outsized changes in 2023 that will benefit their wallets. The added financial oomph, while limited, is designed to cushion the hit from fast-growing prices, said David Field, a certified financial planner and founder of Papyrus Planning.

    For higher-income earners and retirees, the bigger boost will likely come in the form of lower income taxes and more opportunities to shelter savings from tax, Mr. Field said. For those in the middle and lower-end of the income spectrum the financial boost will likely come mostly through more generous benefits and higher income threshold to qualify for them, he added.

    The planned inflation adjustment for next year is 6.3 per cent, up from 2.4 per cent in 2022 and just 1 per cent in 2021, according to the Canada Revenue Agency. When it comes to personal income taxes, this will result in an effective tax break for many Canadians whose wages have not kept up with inflation, Mr. Field noted.

    The top federal tax rate of 33 per cent will apply to taxable income above $235,675. That is up from $221,708 this year. The 29-per-cent rate will kick in at $165,430, up from $155,625. The 26-per-cent tax rate will start at income above $106,717, compared with $100,392 for 2022. And the threshold for the 20.5-per-cent rate will begin at $53,359, instead of $50,197. The lowest federal income tax rate of 15 per cent applies to taxable income below those levels.

    As a result of the adjustment, many taxpayers whose earnings haven’t kept pace with inflation will see more of their income taxed at lower rates, with the biggest change in dollar terms happening at the top of the income ladder. For top earners, nearly $14,000 more will be eligible to be taxed at 29 per cent rather than 33 per cent.

    Another notable increase applies to the income level beyond which retirees would have to repay part or all of their Old Age Security pension. That threshold starting in 2023 will rise to $86,912, up more than $5,000 from the current $81,761.

    The change will give retirees more room to make taxable withdrawals from registered accounts, such as registered retirement income funds, without triggering the OAS clawback, Aaron Hector, a certified financial planner and private wealth advisor at CWB Wealth, said in an e-mail.

    Also, choppy financial markets this year mean many retirees have seen the value of their investments decline, which will result in lower minimum mandatory annual withdrawals from their RRIFs in 2023, Mr. Hector noted. That, along with the higher OAS repayment threshold, mean there are likely to be fewer Canadians exposed to the OAS clawback next year, he said.

    The higher clawback threshold comes in addition to larger OAS payments, which are adjusted for inflation every three months, resulting in a “double-boon” for recipients of the pension benefit, Mr. Field said.

    Other benefits affected by the inflation adjustments are the Canada Child Benefit (CCB) and the GST/HST tax credit, a tax-free payment that lower-income households receive every three months to help offset the sales taxes they pay.

    The maximum CCB amount is set to rise from $583 to almost $620 a month for each child under age six and from almost $492 to nearly $523 a month for each child between six and 17. The income thresholds at which phase-out of the benefits begins are also higher for 2023. However, the reset in payment amounts won’t take effect until July, after tax season, as is the case for other income-tested benefit programs.

    Also in July, the maximum GST/HST rebate is set to rise to $325 for individuals, up from $306. Earlier this month Ottawa sent out an extra one-time GST credit payment to eligible Canadians to help relieve the financial pressures they’re facing from inflation. The lump-sum payment was the product of a bill introduced by the Liberal government that became law in October with bipartisan support.

  • Global population hits 8 billion as growth poses more challenges for the planet

    Global population hits 8 billion as growth poses more challenges for the planet

    he world’s population will reach 8 billion people on Tuesday, representing a “milestone in human development” before birth rates start to slow, according to a projection from the United Nations.

    In a statement, the UN said the figure meant 1 billion people had been added to the global population in just 12 years.

    “This unprecedented growth is due to the gradual increase in human lifespan owing to improvements in public health, nutrition, personal hygiene and medicine. It is also the result of high and persistent levels of fertility in some countries,” the UN statement read.

    Middle-income countries, mostly in Asia, accounted for most of the growth over the past decade, gaining some 700 million people since 2011. India added about 180 million people, and is set to surpass China as the world’s most populous nation next year.

    But even while the global population reaches new highs, demographers note the growth rate has fallen steadily to less than 1% per year. This should keep the world from reaching 9 billion people until 2037. The UN projects the global population will peak at around 10.4 billion people in the 2080s and remain at that level until 2100.

    Most of the 2.4 billion people to be added before the global population peaks will be born in sub-Saharan Africa, according to the UN, marking a shift away from China and India.

    https://www.cnn.com/2022/11/15/world/global-population-8-billion-un-intl-hnk/index.html

    https://www.cnbc.com/2022/11/15/world-population-reaches-8-billion-people-with-india-expected-to-surpass-china-.html?recirc=taboolainternal

  • Amazon reportedly plans to lay off about 10,000 employees starting this week

    Amazon reportedly plans to lay off about 10,000 employees starting this week

    • Amazon is planning to lay off approximately 10,000 employees in corporate and technology roles beginning this week, according to a report from The New York Times.
    • The cuts would be the largest in the company’s history and would primarily impact Amazon’s devices organization, retail division and human resources, according to the report.

    https://www.cnbc.com/2022/11/14/amazon-reportedly-plans-to-lay-off-about-10000-employees-starting-this-week.html