Canada column for
Sunday, July 15/18
THE CANADIAN REPORT
By Jim Fox
Canadians are
paying more for variable rate mortgages and lines of credit as the central bank
raised its key interest rates over free trade concerns.
The Bank of Canada upped
the rate by 0.25 percent to 1.5 percent, the fourth increase in a year as the
economy heats up with strong employment gains.
Canada’s major
banks followed by increasing their prime-lending rates one quarter of a point
to 3.7 percent.
Bank Governor
Stephen Poloz said the increase was prompted by “the various uncertainties we
face” with trade tensions the biggest issue for the country.
As for U.S. tariffs
on steel and aluminum, there could be difficulties for some industries and
workers but “the effect of these measures on Canadian growth and inflation is
expected to be modest,” he said.
Toronto will boost
its night shift of front-line police officers by 200 through the summer in an
effort to reduce gun violence.
Police Chief Mark
Saunders said officers will be sent to areas needing them by “strategic deployment.”
As well, Mayor John
Tory said there will be additional community programs to help at-risk youth.
This year there
have been 26 deaths and 79 people injured, up from 16 and 70 in 2017.
The $3-million cost
for added officers will be covered by the Ontario government with additional
assistance from the federal and city governments.
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News in brief:
- Canadian-based
Hudson’s Bay Company will no longer sell Ivanka Trump’s clothing line at its department
stores worldwide and has dropped the brand from its website based on its
performance. The move is due to “our regular course of business to remerchandise
offerings and make appropriate changes,” it added. There was no comment on
whether it has anything to do with an ongoing boycott of the brand.
- Toronto
and Vancouver are Canada’s most-expensive cities in Mercer’s annual cost
of living survey. It ranked 375 cities and looked at factors such as costs of
housing, transportation, food, clothing and other expenses. It compares New
York City as the base and ranked the two Canadian cities tied at 109th place.
The most expensive are Hong Kong, Tokyo, Zurich, Singapore and Seoul.
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Facts and figures:
Canada’s dollar has
dropped to 75.98 cents U.S. while the U.S. dollar returns $1.316 in Canadian
funds (bank exchange fees extra).
The Bank of Canada’s key interest rate is up
0.25 percent at 1.5 percent while the prime-lending rate is 3.7 percent.
Stock markets are mixed, with the Toronto
exchange index up at 16,561 points while the TSX Venture index is lower at 725 points.
The average price for gas in Canada has dropped
to $1.329 a liter or $5.05 (Canadian) for a U.S. gallon.
Lotto 6/49: (July 11) 1, 9, 11, 38, 45 and 48; bonus 25.
(July 7) 1, 3, 25, 40, 44 and 47; bonus 2. Lotto Max: (July 6) 1, 11,
20, 32, 41, 42 and 44; bonus 47.
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Regional briefs:
- New Ontario
Premier Doug Ford is ousting the head of the provincial utility Hydro One to
cut costs. Ford said he will also reduce electricity bills by 10 percent and has
prompted chief executive officer Mayo Schmidt, who earned $6 million last year,
to retire. Even so, he will receive $400,000 in compensation, stock options
reports say are worth $10.7 million and an annual pension of about $162,000.
- A Nova Scotia
woman said even though her nephew’s name was on a winning $1.2-million lottery
ticket with hers, he doesn’t deserve half. A feud erupted when Barb Reddick and
nephew Tyrone MacInnis received tax-free cash prizes of $611,319.50 each in the
Chase the Ace lottery in Margaree Forks. Reddick said she will sue MacInnis for
the money. Putting his name with hers was for “good luck,” not half the big prize,
she said.
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Jim Fox can be reached at canadareport@hotmail.com
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