Author: Consultant

  • Canadian dollar hits 19-month low as oil tumbles

    Canadian dollar hits 19-month low as oil tumbles

    The Canadian dollar CADUSD -0.61%decrease weakened to its lowest in 19 months against its U.S. counterpart on Friday as oil prices tumbled and the greenback broadly rallied.

    The loonie was trading 0.5% lower at 1.3020 to the greenback, or 76.80 U.S. cents, after touching its weakest since November 2020 at 1.3078.

    For the week, the currency was down 1.8%, its biggest weekly decline since August last year, as investors worried that aggressive tightening by central banks, including Wednesday’s 0.75 percentage point rate hike by the U.S. Federal Reserve, could derail economic growth.

    “On top of those interest rate concerns, we saw oil take a tumble,” said Darren Richardson, chief operating officer at Richardson International Currency Exchange Inc. “That added fuel to the loonie weakness today.”

    The price of oil, one of Canada’s major exports, tumbled to a four-week low on worries that an economic slowdown could cut demand for energy.

    U.S. crude oil futures settled 6.8% lower at $109.56 a barrel, while the U.S. dollar jumped against a basket of major currencies as the Bank of Japan’s decision to buck the recent wave of tightening weighed on the Japanese yen .

    In domestic data, the pace of Canadian home price growth slowed in May, edging off April’s record high, but prices still rose both on the month and on the year, the National Bank Composite House Price Index showed.

    Canadian government bond yields were higher across the curve, with the 10-year up 3.9 basis points at 3.414%. On Thursday, it touched its highest intraday level in 12 years at 3.664%.

  • Ottawa launches first phase of Canada Greener Home Loan program

    Ottawa launches first phase of Canada Greener Home Loan program

    Ottawa has launched the first phase of its plan to offer interest-free loans to Canadians planning upgrades that will have a significant impact in reducing their home’s environmental footprint.

    The program will provide interest-free loans of up to $40,000 per household to help finance eligible retrofits.

    The first phase is open to eligible homeowners who are applying or have an open application to the Canada Greener Homes Grant.

    The second phase will begin in early September.

    It will expand the eligibility to homeowners who have already received a grant or requested a post-retrofit EnerGuide evaluation, but still have remaining eligible retrofits they are interested in doing, that have not yet started.

    The Canada Greener Homes Loan program is an designed to help up to 175,000 eligible homeowners.

  • Oil Futures Fall Sharply, Settle 6.8% Down At 4-week Low

    Oil Futures Fall Sharply, Settle 6.8% Down At 4-week Low

    Crude oil prices fell sharply on Friday amid mounting fears about a possible global economic recession following severe tightening of policies by several central banks, including the Federal Reserve and the Bank of England.

    The U.S. dollar’s sharp uptick – the dollar index climbed to 105.09, before paring some gains – weighed as well on oil prices. The dollar index surged to a fresh two-decade high of 105.79 earlier in the week.

    Oil prices climbed higher earlier in the session, reacting to news about new U.S. sanctions on Iran and a pledge by China’s cabinet that it will accelerate the implementation of a raft of pro-growth policies to stabilize the world’s second-largest economy.

    West Texas Intermediate Crude oil futures for July ended lower by as much as $8.03 or about 6.8% at $109.56 a barrel, a four-week low. The most active crude oil futures contract shed over 9% in the week, after gaining from seven successive weeks.

    Brent crude futures were down $6.00 or 5.06% at $113.81 a barrel a little while ago.

    A report from Baker Hughes said active oil and gas drilling rigs in the U.S. rose by 7 to 740 in the week, about 57% above year-ago levels.

    Drilling rigs increased by 4 to 584, while gas rigs climbed by three to 154, the report said.

  • Canadian Shares Swinging Between Gains And Losses, Look Headed For Mixed Close

    Canadian Shares Swinging Between Gains And Losses, Look Headed For Mixed Close

    Canadian shares are swinging between gains and losses in cautious trade on Friday, with investors assessing the likely impact of the interest rate hikes by central banks on economic growth.

    Technology, healthcare, communications and consumer discretionary stocks are up with strong gains. Several stocks from real estate and industrials sectors are also up with strong gains. Energy stocks are down sharply.

    The benchmark S&P/TSX Composite Index is up 30.86 points or 0.16% at 19,034.87. The index touched a high of 19,193.97 and a low of 18,787.68.

    Technology stocks Lightspeed Commerce (LSPD.TO) is climbing 8.7%. Magnet Forensics (MAGT.TO), Shopify Inc (SHOP.TO), Tecsys Inc (TCS.TO), Softchoice Corp (SFTC.TO), Kinaxis Inc (KXS.TO) and Hut 8 Mining Corp (HUT.TO) are up 5 to 6.5%.

    In the healthcare section, Aurora Cannabis (ACB.TO) is up 8.75%. Tilray Inc (TLRY.TO), Canopy Growth Corp (WEED.TO), Cronos Group (CRON.TO), Bausch Health Companies (BHC.TO) and Well Health Technologies (WELL.TO) are gaining 2.5 to 4.7%.

    Consumer discretionary stocks Mty Food Group (MTY.TO), Canada Goose Holdings (GOOS.TO), Restaurant Brands International (QSR.TO) and Magna International (MG.TO) are up 3 to 4.5%.

    In the communications sector, Telus Corp (T.TO) is up 4.5%, Rogers Communications (RCI.B.TO) is gaining 2.7% and Shaw Communications (SJR.B.TO) is rising 2%. BCE Inc (BCE.TO) and Cogeco Communications (CCA.TO) are up 1.3% and 1%, respectively.

    Energy stocks Vermilion Energy (VET.TO), Nuvista Energy (NVA.TO), Whitecap Resources (WCP.TO), Crescent Point Energy (CPG.TO), MEG Energy (MEG.TO), Enerplus Corp (ERF.TO), Arc Resources (ARX.TO) and Parex Resources (PXT.TO) are down 6 to 7%.

    On the economic front, data from Statistics Canada showed the Raw Materials Price Index in Canada surged 37.4% year-on-year in May of 2022, following a 38.3% rise in April. On monthly basis, the raw materials price index increased 2.5% in May, rebounding from a 2.1% fall in April.

    Producer prices in Canada jumped 1.7% month-over-month in May of 2022, picking up from a 0.8% increase in April. Producer prices in Canada increased 15% in May of 2022 over the same month in the previous year, the data showed.

  • Ukraine moves closer to joining the EU; Zelenskky says historic decision will help to defeat Russia

    Ukraine moves closer to joining the EU; Zelenskky says historic decision will help to defeat Russia

    The European Commission, the executive arm of the EU, has proposed that Ukraine become a membership candidate to join the bloc — the first step on a long road to EU membership.

    Commission President Ursula von der Leyen said Friday that Ukraine should be welcomed by Europe.

    It comes shortly after some of the most powerful EU leaders traveled to Ukraine’s capital city of Kyiv in a show of solidarity with the war-ravaged country.

    Serhiy Haidai, the head of Luhansk’s regional administration region, says the number of Russian bombings in Ukraine is “rising daily.”

    Russian forces are continuing to launch ground assaults on the strategically important Donbas city of Severodonetsk in an attempt to establish control.

  • Elon Musk sued for $258-billion over alleged Dogecoin pyramid scheme

    Elon Musk sued for $258-billion over alleged Dogecoin pyramid scheme

    Elon Musk was sued for $258 billion on Thursday by a Dogecoin investor who accused him of running a pyramid scheme to support the cryptocurrency.

    In a complaint filed in federal court in Manhattan, plaintiff Keith Johnson accused Musk, electric car company Tesla Inc. TSLA-Q -8.54%decrease and space tourism company SpaceX of racketeering for touting Dogecoin and driving up its price, only to then let the price tumble.

    Musk is CEO of both Tesla and SpaceX.

    “Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading,” the complaint said. “Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement.”

    The complaint also aggregates comments from Warren Buffett, Bill Gates and others questioning the value of cryptocurrency.

    Tesla, SpaceX and a lawyer for Musk did not immediately respond to requests for comment.

    A lawyer for Johnson did not immediately respond to requests for comment on what specific evidence his client has or expects to have that proves Dogecoin is worthless and the defendants ran a pyramid scheme.

    Johnson is seeking $86 billion in damages, representing the decline in Dogecoin’s market value since May 2021, and wants it tripled.

    He also wants to block Musk and his companies from promoting Dogecoin and a judge to declare that trading Dogecoin is gambling under federal and New York law.

    The complaint said Dogecoin’s selloff began around the time Musk hosted the NBC show “Saturday Night Live and, playing a fictitious financial expert on a “Weekend Update” segment, called Dogecoin “a hustle.”

    Tesla in February 2021 said it had bought $1.5 billion of bitcoin and for a short time accepted it as payment for vehicles.

    Dogecoin traded at about 5.8 cents on Thursday, down from its May 2021 peak of about 74 cents.

  • Children’s hospitals across Canada reporting high rates of admissions as viruses return

    Children’s hospitals across Canada reporting high rates of admissions as viruses return

    Hospitals across the country are seeing a record number of children visiting emergency departments,and the reason has everything to do with the particular moment we are in during the pandemic, health experts say.

    “What we’re seeing now is completely unprecedented patient volumes for this time of year, and unprecedented patient volumes almost ever. Normally these types of numbers are reserved for the Christmas holidays when family doctors’ offices are shut down,” said Dr. Daniel Rosenfield, staff physician in the division of emergency medicine at the Hospital for Sick Children in Toronto.

    “All these viruses that were basically dormant for two years in kids are now just exploding,” he said, referring to viruses that typically afflict children in the winter, such as influenza, rhinovirus and respiratory syncytial virus.

    They had been held at bay by pandemic measures such as masking and physical distancing. Now that more people are interacting in larger numbers and not wearing masks, these viruses are “back with a vengeance,” Dr. Rosenfield said.

    It comes at a time when emergency departments typically see a spike in childhood injuries: As more children get out on their bikes or climb trees, there are higher numbers of sprains, fractures and other trauma that send them to emergency rooms. Add to that the fact that many families don’t have a primary care physician, or may not be able to see their family doctor right away, and it is no wonder emergency departments are being overwhelmed.

    “What’s happening here is the displaced viral season. The viral mountain has moved on top of the natural seasonal injury and accident mountain and they’re happening at the same time,” said Alex Munter, CEO of CHEO, a pediatric hospital and research centre in Ottawa. As well, many people are unable to access care elsewhere, he said. “It just feels like a bit of a perfect storm.”

    Last month,CHEO reported its busiest May in the hospital’s 48-year history, with an average of 228 emergency department visits per day. Some days that number climbed as high as 300, Mr. Munter said. It was the second-busiest month ever for the hospital, behind the record of 248 visits per day to the emergency department on average set in December, 2019.

    The Hospital for Sick Children saw a 12-per-cent increase inin-person visits to its emergency room last month compared to May, 2019. When factoring in visits to the hospital’s Virtual Urgent Care platform, an online tool to get medical advice remotely,that number jumped to 38 per cent.

    McMaster Children’s Hospital in Hamilton averaged 140 patient visits per day in May, 2019; that number was up to 185 visits per day last month and shows no signs of slowing down, said Dr. Christopher Sulowksi, chief of the pediatric emergency department.

    A spokesperson for B.C. Children’s Hospital said its emergency department is also experiencing high volumes, but did not providefurther data.

    McMaster Children’s Hospital is seeing higher than usual numbers of children coming to the emergency department with sprains, fractures and other injuries, and Dr. Sulowski wondered if some children are more eager to be playing outside and might have lost some skills in the past two years. Both CHEO and the Hospital for Sick Children say the visits for injuries typical of this time of year are not higher than previous years.

    It’s the viruses spreading among children that are unusual, Dr. Sulowksi said.

    “It’s shocking for us when we look at some of the test results we get back and we’re seeing influenza,” he said. “That’ssomething that just in the Northern Hemisphere in Ontario here at McMaster is unheard of for the month of June.”

    The reason is likely because of pandemic measures and our changing behaviours, Dr. Sulowski said.

    “We had universal masking and for the most part everyone was masking and schools were requiring masking and so everything just kind of got pushed back. We didn’t eradicate the viruses, I think we just kind of held them at bay with masks,” he said.

    The viruses currently circulating have symptoms very similar to COVID-19, and so it’s no wonder worried parents head to the hospital, Dr. Rosenfield said.

    “They’re the ones that cause runny nose, coughs, colds, vomiting, diarrhea, all the stuff that would send a parent to the emergency department in the middle of the night,” he said.

    Worried parents should know that while a fever is a sign of infection, most can be dealt with at home, and that it is a fever’s duration that is of most concern, Dr. Sulowski said.

    “Once you get in to three, five, six days of fever, that’s when we start to worry a lot more,” he said.

    To help ease the burden on emergency room visits, several hospitals have created online portals to help guide parents’ decision making, such as McMaster’s www.needadoc.ca and the Hospital for Sick Children’s Virtual Urgent Care platform.

  • Oil edges down as demand concerns weigh, heading for weekly fall

    Oil edges down as demand concerns weigh, heading for weekly fall

    Oil prices edged lower on Friday and were on track for a weekly decline as interest rate hikes from major central banks fueled worries about a sharp economic slowdown.

    Brent crude was down 56 cents, or 0.5%, to $119.25 a barrel at 1204 GMT, and U.S. West Texas Intermediate (WTI) crude fell 78 cents, or 0.7%, to $116.81.

    Brent was on track for its first weekly dip in five weeks, and U.S. crude for its first decline in eight weeks, in line with a fall in equity markets amid fears of a possible recession as several central banks delivered big rate hikes.

    “The influence of the macro environment has started to take over from oil specific fundamentals in recent days,” said Investec’s head of commodities Callum Macpherson.

    “Consistent with the broader market pre-occupation with rates and inflation, the oil market narrative may now turn to focus more on affordability, rather than on supply.”

    Both contracts had risen by more than $1 earlier in the session as U.S. sanctions on Chinese and Emirati companies and on a network of Iranian firms that help export Iran’s petrochemicals lent some support to oil prices.

    The U.S. government said while it is pursing diplomacy to revive a nuclear deal with Iran, it will continue to use sanctions to limit exports of oil, oil products, and petrochemicals from Iran.

    Analysts estimate that a deal and the consequent lifting of sanctions on Iran’s energy sector could add up to 1 million barrels of oil per day to global markets.

    “The market has been watching negotiations between the West and Iran in anticipation of a revival of the nuclear deal in recent months. This brought back into focus the ongoing supply side issues in the market,” ANZ Research analysts said in a note.

    The global oil market continues to show signs of “turbulence,” Russian Deputy Prime Minister Alexander Novak said on Friday, blaming the uncertainties over oil production recovery in Libya, Iran and Venezuela and a lack of energy infrastructure.