Canada is increasingly on the lips and in the minds of international investors. It is difficult to remember what other time the country has been such a force relative and absolute, “says Warren Lovely, strategist government issues at Macro Strategy Group of CIBC. Foreign investors believe more and more in Canada’s ability to deliver superior results to other countries, according to an economic report from CIBC.
The study by CIBC World Markets has a growing list of strategic benefits that enhance the interest in the country in the global investment portfolios.This is especially Canada’s strength is its advantage in terms of public finances, says Lovely, who first attracted attention to the fact that Canada has much less need to adjust its tax stabilize the debt ratios. The Canadian provinces are in a better position than some American states, they are less likely to cut programs or adopt measures to increase their income and, consequently, they are less at risk regional economies, says Lovely . The fiscal consolidation will reduce borrowing requirements and protect credit ratings from the federal government and provinces.
The study adds that Canada is different from other countries as a leading growth in the developed world, the most recent IMF forecasts put the country lead the G7 in terms of average real GDP growth in 2010 – 2011. In addition, the Canadian banking sector has sufficient capital and regulatory changes require less deep.
However, some obstacles could interfere with the maintenance of Canada’s superior results. The study notes that a slowdown in the U.S. would have consequences for Canada because three quarters of Canadian exports are the path of the United States. Other factors that cloud the economic outlook for Canada is the impact of the persistently strong Canadian dollar on manufacturing, the overheated housing market and high debt of Canadian households.
The North American markets end the week on a positive note. The Toronto stock market rose for the fourth straight session pushed particularly by the publication of data on employment exceeded expectations . The Canadian economy created 93,200 jobs last month , while economists predicted a figure of 20,000. The S & P / TSX has improved by 137.08 points to close the session at 11 570.45 points. The Canadian dollar showed a gain of 0.91 percent, to 96.76 cents U.S. The price of gold rose to $ 13.60 , 1 209.70 U.S. dollars. Oil prices rose for the third straight session barrel finished at $ 76.09 , up 65 cents from the previous day. This is an increase of $ 4.11 from Tuesday close to 6 % .
For its part , the NYSE has firmly entered the week before starting the season results , the Dow Jones gained 0.58% and the Nasdaq 0.97 %. The Dow Jones took 58.73 points to 10,197.72 points and the Nasdaq 21.05 points to 2196.45 points. In Europe , the London Stock Exchange finished up winning back 27.49 points from Thursday’s closing , or 0.54 % to 5 132.94 points. Featured Dax index of the Frankfurt Stock Exchange finished up 0.49 % to 6 065.24 points against 6035.66 points the day before the closing.
Low interest rates and a shortage of properties for sale have resulted in higher prices in Montreal in the second quarter, but increased the number of homes on the market in the third and fourth quarters will lead to price stabilization. According to a study released Wednesday by Royal LePage , house prices have risen sharply over the past year in the metropolitan area .
In the second quarter , the average price of a home walk- in Montreal has increased by 8.7 % over 12 months , reaching $ 255,906 . The price of a standard two- storey home increased 7.5 % to $ 357,833 , while the average price of a standard apartment condominium rose by 8.0 % to 226 $ 048 . While many buyers are made in April and May , while attempting to integrate the market before the expected rise in interest rates, they are now a little less active , says Dominic St – Pierre , Director of Services Royal LePage Real Estate for Quebec .
As the higher number of properties for sale has increased towards the end of the second quarter, price growth slowed in June. According to Mr. St- Pierre , the housing market slowdown is expected in the second half of the year and prices for all housing types in Montreal should remain stable. The market will be balanced until the end of 2010, while the number of properties sold this year should be similar or slightly higher than the results recorded in 2009.
“Right now , we have 24% more sales than the same period last year , ” says Mr. St. Pierre. But this advance will decrease slowly to match the figures from last year. The housing market is expected to slow in July and be more proactive in early September when the first home buyers will be back on the market, he believes. These are buyers who have been most active in the second quarter, while buyers of second or third house have activities towards the end of the quarter. The properties and luxury sectors , such as Mont -Royal, downtown and St. Lawrence, the interest.
The conclusion of a final agreement between the Government of Quebec and the 475,000 government employees, represented by the Common Front , is good news . The previous round of negotiations we were accustomed to psychodrama , conflict , invective and leverage penalizing users of public services . None of this has seriously happened since the start of negotiations in autumn 2009. The process went smoothly and we must congratulate the players.
A negotiated settlement was far preferable to second special law. We can not enact the conditions of work indefinitely . Across regions and in our cities, public employees can better devote their energies to the services they render. The social climate should be better to leave , which should encourage the development and prosperity.
The Government had also committed to a compensation framework established at the outset of these negotiations . It is hoped that the implementation of this agreement, all costs associated , including salaries and are linked to substantive provisions such as new hires, are consistent with requests made by the Federation of Chambers of Commerce of Quebec pre-budget consultations . We ask because management of public finance and frugal a public service that also contributes to increased productivity.
After the recession and in the midst of strenuous exercise of fiscal consolidation , which involves the near future a new effort by taxpayers, the government has managed to maintain a reasonable wage increase to a total of 6% 5. inflation clause should add 1% to the total in 2015. At a time when other provinces and even other developed countries, freeze the salaries of their employees This offer, accepted by the unions , appear to some generous, But should help maintain the purchasing power of imposing a quota of employees. The novel proposed formulas for inflation or permitting the payment of additional sums in recent years of a five -year agreement , if the Economic growth is the appointment are also welcome. They confirm that private enterprise has long been known that there can be no sharing of wealth if there is no creation of wealth . They are , after all, so that the public finally understands that he can be ahead of the parade , but linked to the conditions prevailing in the private sector.
Guest post by: Francoise Bertrand
A graduate in sociology from the University of Montreal and holds a Masters in Environmental Studies from York University in Toronto , Ms. Bertrand has over 30 years of experience leading large organizations.
Job creation has been very strong in Canada in June while the unemployment rate fell below 8% for the first time since January 2009. The economy created 93,200 jobs in June, which is far superior to some 20,000 expected by economists . This increase has resulted in reduced unemployment to 7.9 % , down 0.2% on the month of May , Statistics Canada reported Friday. In Quebec , employment increased by 30,400 , bringing the unemployment rate to 7.8 % , down 0.2 %. Significantly, he has virtually created many full -time positions part time.
Quebec was ranked first in all provinces in terms of job growth since July 2009 , the rate of growth in this area having
to 3.0 % for creation of 117,000 jobs, said the federal agency. Domestically, significant increases in employment were recorded in the services sector , particularly in wholesale and retail, with 21,600 more workers.Business services , services to buildings and other support services , as well as those in health care and social assistance have also participated in the creation of jobs.
Employment edged up 11,000 in construction. The industry still posted growth rates highest of all major industry groups since July 2009, up 8.3 % or 94,000 jobs. The private sector has contributed to the creation of 51,900 jobs in June, and the self-employed , 25 600. In the public sector , it has 15,700 more jobs.
Since July 2009, the number of private sector employees rose by 3.3% , while the public sector rose 2.6 %. Men aged 25-54 years have received the bulk of the growth in employment in June , followed by those aged 55 and over and youth aged 15-24 years. The number of students aged 20-24 in employment increased by 63,000 in June 2010 compared with same month a year earlier, so their unemployment rate fell 3.7 % to 10.3 %.
The province of Ontario has been the champion of the creation of jobs nationally, with growth of 60,300 jobs . The unemployment rate remains higher than in Quebec , at 8.3% . It is down 0.6 % on the month of May. Employment declined in Newfoundland and Labrador, as well as New Brunswick. The employment data give a boost to the Canadian dollar , which gained 0.78 percent to 96.75 U.S. cents at 7:46 .
