Canada column for
Sunday, May 14/17
THE CANADIAN REPORT
(c) By Jim Fox
“Bring it on,”
Canadian leaders suggest as U.S. President Donald Trump moves to renegotiate
the North American Free Trade Agreement.
Foreign Affairs
Minister Chrystia Freeland said Canada will be “good, collaborative constructive
partners who effectively stand up for the national interest.”
It is hoped Canada
will be able to “conclude negotiations quickly,” as well as meet soon with
Trump “trade czar” Robert Lighthizer, she said.
The U.S. plans to
file the required 90-day notice with Congress to renegotiate the pact and start
talks with Canada and Mexico later this year.
The President has
said the U.S. is at a big disadvantage with the current NAFTA deal and wants “massive”
changes in areas including automobiles, dairy, lumber, pharmaceuticals and the
dispute-resolution system.
Canada and the U.S.
already are working on finding ways to eliminate excessive regulations on products
crossing the border between the world’s two largest trading partners.
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Concerns over
growing consumer and business debt along with skyrocketing housing prices have
prompted Moody’s Investors Service to downgrade Canada’s six largest banks.
The change cut TD
Bank’s long-term rating to Aa2, while the other banks fell to A1.
The concerns leave
consumers and banks “more vulnerable to downside risks facing the Canadian
economy than in the past,” said David Beattie, Moody’s senior vice-president.
On a positive note,
the debt rating agency said the banks “maintain strong buffers in terms of
capital and liquidity.”
There is heightened
scrutiny after alternative mortgage lender Home Capital obtained an emergency
$2-billion line of credit when customers began withdrawing deposits from their
high-interest savings accounts.
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News in brief:
- Pierre Beaudoin, a
member of the Quebec family behind the Bombardier transportation empire, has
resigned as executive chairman of the board of directors. The financially
struggling Montreal-based company has come under intense criticism from
shareholders over what they called an excessive compensation package for six
Bombardier executives. Leadership has shifted to Alain Bellemare, president and
chief executive officer.
- Air Canada swill
start its own loyalty rewards program in 2020 and end its association with
Aeroplan. Once the switch is made, flyers can redeem the new points for Air
Canada and Star Alliance flights. They are expected to be able to use up their
Aeroplan points, too, up to and after June 2020.
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Facts and figures:
Canada’s dollar is
lower at 72.92 cents U.S. as the U.S. dollar rose to $1.371 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 mixed, with the Toronto
exchange index down at 15,543 points while the TSX Venture index is up at 789
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: (May 10) 6, 7, 8, 21, 27 and 38;
bonus 23. (May 6) 6, 7, 9, 11, 34 and 38; bonus 8. Lotto Max: (May 5) 11, 14,
20, 22, 26, 35 and 43; bonus 33.
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Regional briefs:
- Massive flooding in
Quebec has rivers and lakes between Gatineau and Montreal at 50-year peaks. More
than 3,000 people were forced from their homes, with hundreds more in Ontario
communities along the Ottawa River. Prime Minister Justin Trudeau pledged the
government’s help with up to 90 percent of the costs of the cleanup and
recovery paid by the Disaster Financial Assistance program.
- There are new
flood risks in British Columbia from rising rivers and creeks. Emergency
officials are telling residents to brace for imminent flooding in Central
Okanagan. There is also a longer-term threat near the shores of Okanagan Lake.
- It was more than
just “peanuts” when DHX Media of Halifax paid $345-million US to take control
of Charlie Brown and Strawberry Shortcake enterprises. The children’s
entertainment company already has Teletubbies, Inspector Gadget and Caillou
brands. Now DHX has an 80 percent controlling interest in Peanuts, approved by creator
Charles Schulz’s widow, Jean Schulz, and 100 percent of Strawberry Shortcake
from Iconix Brand Group Inc.
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Jim Fox can be reached at canadareport@hotmail.com
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