***** Canada Business News *****

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TSX advances as oil prices rise

Canada's benchmark stock index took a break on Wednesday following the previous session's 1.3 per cent jump, posting a more modest gain as oil prices rose and gold fell.


The S&P/TSX closed at 13,380.70, a gain of 15.55 points, or 0.12 per cent. Six of the 10 sub-indexes rose, led by telecommunications and energy.


Oil gained and gold declined following positive economic news out of the United States on Wednesday. The U.S. economy grew by an annualized rate of 2.6 per cent in the third quarter, the Commerce Department reported, and existing home sales rose 5.6 per cent, according to the National Association of Realtors. Both numbers came in below analysts' estimates.


The Dow Jones industrial average rose 26.33 points to 11,559.49, a gain of 0.23 per cent, and the Nasdaq composite was up 3.87 points, or 0.15 per cent, to 2,671.48.


"We're in a growth environment, so it's time to get out of gold and move into commodities such as oil," Paul Ma, a money manager at McLean & Partners in Calgary, told Bloomberg. "All the global economic data are very supportive of growth this coming year, so people are looking at the usable commodities, not things that are designed to protect against risk such as gold."


The price of crude oil gained 66 cents on Wednesday to close at $90.48 U.S. a barrel on the New York Mercantile Exchange — its best finish since early May. The price of gold fell $1.40 to $1,387.40 U.S. an ounce.


The loonie advanced 32 basis points to 98.60 cents U.S. as the price of oil rose.


"In the big scheme of things, the Canadian dollar remains in a pretty good uptrend," Michael O'Neill, managing director at Knightsbridge Foreign Exchange, told Reuters. "Canada's going to grind higher but there won't be enough gas to push through par (with the U.S. dollar) before year-end."


Canada's junior Venture exchange rose 11.52 points, or 0.53 per cent to 2,167.34.


Energy giant Suncor benefited from the higher price of oil, rising 2.19 per cent to $38.34.


In the telecommunications sector, BCE Inc. rose 2.25 per cent to $35.96.


The Toronto-Dominion Bank gained for a second day after announcing it had agreed to purchase Chrysler Financial Corp. for $6.3 billion U.S.. The bank's share price rose another 0.74 per cent on Wednesday to $73.70. It was a record quarter for U.S. takeovers by Canadian banks, and TD CEO Ed Clark says that bank isn't finished.


"We're not deal junkies, but we keep saying what we're looking for," Clark told Bloomberg. "We want $10 billion (in assets) or less deals; tuck-ins that add to our franchise and meet our strategy."


The materials sub-index was the leading decliner on the TSX. Barrick Gold fell 1.24 per cent to $51.97 and reseller Silver Wheaton was down 3.53 per cent to $36.94.

 

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Earnings rise 4.4 per cent in October from year earlier

OTTAWA — Average weekly earnings by Canadians in non-farm jobs increased 4.4 per cent in October from a year earlier, Statistics Canada said Thursday.


Earnings averaged $863.33 in the month, the federal agency reported, while payrolls were up 1.7 per cent to 14.74 million from a year earlier.


Total hours worked increased 2.4 per cent year-over-year, though there was little change from September. Employees worked an average of 32.9 hours a week in October, a figure that hasn't changed for six months.


"The pace of growth in earnings has been increasing in recent months. October was the third consecutive month in which the year-over-year growth rate was higher than four per cent, the agency said. "Prior to this period, the increase surpassed three per cent for four months in a row. For most of 2009, the rate of growth was below two per cent."


A 0.9 per cent increase in the average hours worked each week between October 2009 and October 2010 accounted for some of the increase in weekly earnings, the agency said, with the rest being attributable to factors including wage growth, changes in the composition of employment, changes in occupations and job experience.


Wage growth in the forestry and mining sectors blasted past the national average, at 14 and 13.6 per cent respectively. Other sectors with significant wage growth included manufacturing, wholesale trade, professional, scientific and technical services and administrative and support services.


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Average weekly earnings (including overtime) in October


(Industry % change m/m y/y):


Industrial aggregate 0.0 4.4


Forestry, logging and support 2.2 14.0


Mining and quarrying, and oil and gas extraction 1.0 13.6


Utilities -2.8 -2.0


Construction 0.1 0.3


Manufacturing -0.5 8.5


Wholesale trade 0.9 5.5


Retail trade 1.0 2.4


Transportation and warehousing 0.2 6.6


Information and cultural industries 4.7 8.8


Finance and insurance 1.2 1.4


Real estate and rental and leasing -1.3 6.3


Professional, scientific and technical services 0.3 4.9


Management of companies and enterprises 1.9 0.8


Administrative and support, waste management and remediation services -0.3 4.7


Educational services -1.5 3.3


Health care and social assistance -0.1 3.8


Arts, entertainment and recreation 0.0 6.3


Accommodation and food services -2.5 3.3


Other services (excluding public administration) -1.8 -0.2


Public administration -1.6 1.6


Source: Statistics Canada



Provinces and territories (% change m/m y/y):


Newfoundland and Labrador -0.8 3.3


Prince Edward Island -0.1 0.1


Nova Scotia 0.5 6.3


New Brunswick 0.5 1.3


Quebec -0.8 3.3


Ontario -1.4 4.4


Manitoba 0.8 1.5


Saskatchewan 3.4 7.7


Alberta 1.6 6.6


British Columbia 1.6 3.9


Yukon 0.1 2.2


Northwest Territories 2.1 6.0


Nunavut 3.7 5.7

 

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TSX falls for first time in three sessions

Canada's benchmark stock index slipped on Thursday in a day of choppy trading as the price of crude oil rose and gold fell.


The S&P/TSX closed at 13,371.20, a decline of 9.5 points or 0.07 per cent, after swinging between gains and losses most of the afternoon. Only three of the 10 sub-indexes rose, including energy and materials. It was the first decline for the S&P/TSX in three sessions.


On the New York Mercantile Exchange, oil rose for the fifth straight session, gaining $1.03 to $91.51, its highest level in more than two years. The price of gold fell $6.90 to $1,380.50 U.S..


Oil's performance greased the way for the Canadian dollar, which gained against its U.S. counterpart even as it slipped against other world currencies. The loonie rose 52 basis points to 99.12 cents U.S.


The U.S. dollar-Canadian dollar currency pair "has been less in tune with risk-seeking sentiment," Brian Kim, a currency strategist at UBS AG in Stamford, Connecticut, told Bloomberg. "It's probably the choppiness in the Canadian and U.S. data that's batting around the pair."


That choppy data included a report from Statistics Canada on Thursday that the country's economy grew by 0.2 per cent in October, after a 0.1 per cent decline in September, but less than the 0.3 per cent growth analysts had forecast.


"While certainly an improvement from the summer months, the modest rebound in October shows that the Canadian economy is now struggling to generate any serious momentum after a flashy start to the recovery," said Douglas Porter, deputy chief economist at BMO Capital Markets. "For the expansion to move to the next level, we need the U.S. economy to kick into a higher gear — thankfully, that looks to be precisely the case."


Reports in the U.S. on Thursday showed consumer spending rose in November for a fifth consecutive month, and initial jobless claims declined last week.


The Dow Jones industrial average rose 14 points to 11,573.49, a gain of 0.12 per cent, while the Nasdaq composite index slipped 5.88 points, or 0.22 per cent, to 2,665.60.


Canada's junior Venture exchange gained 8.02 points, or 0.37 per cent to 2,175.36.


Fertilizer producers gained after the U.S. reported a jump in soybean exports. Agrium shares were up 1.7 per cent to $86.87, while Potash Corp. of Saskatchewan rose 1.4 per cent to $145.91.


The TSX's financials sector slipped on Thursday. Bank of Montreal shares fell 1.38 per cent to $57.05 — the bank's share price has dropped 7.7 per cent since last week when it announced it was buying Milwaukee based Marshall & Illsley Corp. Manulife Financial saw its share price fall 1.15 per cent to $17.21.


Canada's railways also declined Thursday on news that GDP growth in October failed to meet expectations. Canadian National Railway shares were down 1.2 per cent to $66.63, while Canadian Pacific Railway shares slid 0.6 per cent to $65.10.

 

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Canada's economy grows in October

OTTAWA — Canada’s economy grew less than expected in October, despite gains in the mining, and oil and gas extraction sectors, Statistics Canada said Thursday.

Gross domestics product —a broad measure of economic performance —rose 0.2 per cent during the month, following a 0.1 per cent decline in September.

“Gains were also posted by real estate agents and brokers, the public sector, wholesale trade and transportation,” the federal agency said. “Conversely, manufacturing, construction, utilities, retail trade as well as the finance and insurance sectors retreated.”

Economists had expected an increase of 0.3 per cent in October, which is the first month of the fourth quarter and was expected to set a trend for the economy at year-end.

The Bank of Canada has forecast growth of 2.6 per cent in the fourth quarter of 2010.

On Wednesday, the International Monetary Fund warned that Canada will see “muted growth” in 2011, after an initially strong rebound from recession in the first half of this year —led by consumer spending as the central bank kept interest rates at historic lows. GDP growth has since slowed to a crawl as the bank allowed borrowing costs to rise marginally and concerns grew over a weak global recovery.

“Household debt has run up to high levels, housing markets are cooling and fiscal stimulus is waning. Risks are tilted to the downside,” the report said. “In the absence of a double-dip recession in the United States and/or a new rapid deterioration of global financial conditions . . . Canada should enjoy a comfortable, if not exuberant, rate of growth in the near term.”

Tame inflation numbers and a disappointing retail sales report earlier this week have raised expectations that the Bank of Canada will hold it trendsetting interest rate at the current level of one per cent until the fragile economy begins to show signs of a sustained recovery.

Statistics Canada said mining and oil and gas extraction was up 2.4 per cent in October. Real estate sales activity rose 5.1 per cent, the third straight monthly gain, and wholesale trade grew 0.5 per cent.

Meanwhile, manufacturing edged down 0.6 per cent in October, while construction declined 0.5 per cent as residential building activity fell 1.7 per cent, and retail trade was down 0.4 per cent.

 

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Harper says 'Canada shone' in 2010

Prime Minister Stephen Harper used his annual recorded holiday message to praise Canada's achievements in 2010.

"It was a year during which Canada shone," he said. "We did ourselves proud."

Harper specifically mentioned the country's performance at the Vancouver Olympic and Paralympic Games, noting that its athletes won a record number of medals.

He also referred to the summer visit of the Queen, and to the G8 and G20 summits in Ontario, "where world leaders adopted Canadian approaches for recovery from the global economic recession."

Canada's "story of achievement will continue in 2011," Harper said, adding that "through prudent fiscal management ... we will help ensure the economic recovery continues to take hold."

He reiterated that Canada's combat role in the NATO-led mission in Afghanistan will also end in 2011.

In November, the government confirmed that at least 950 Canadian military personnel will remain in Afghanistan to help with training, development and aid.



Read more: http://www.cbc.ca/canada/story/2010/12/23/harper-christmas-message.html#ixzz1954IqJY0

 

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'Lacklustre' housing market seen in 2011


Canada had one of the better performing housing markets in 2010 according to a Scotia Economics year-end review, though the outlook for 2011 anticipates a fairly lacklustre year.


Scotia’s Global Real Estate Trends report tracked housing in 12 advanced nations, and found that Canada was one of six countries this year where inflation-adjusted home prices increased.


The report however, also found that this country’s housing market was also one of the most volatile. Factors such as the introduction of the HST in Ontario and British Columbia, expectations of rising interest rates, and changing criteria for mortgage lending all played a part in the volatility.


Looking forward to next year, Scotia Economics is neither optimistic nor pessimistic about housing in Canada.


"Overall, we anticipate a fairly lacklustre year for residential housing, with modestly higher sales volumes and flat inflation-adjusted prices," said Adrienne Warren, senior economist for Scotia Economics, in a release. "The bigger risk likely awaits 2012 when more significant interest rate increases, combined with record high home prices, will notably strain affordability.


Although Canada had one of the stronger housing markets in the report, Australia came out on top. Demand in that country was supported by low unemployment and a tight housing market that kept pressure on prices.


But even housing in Australia is cooling. A grant for homeowners expired earlier this year, while two consecutive interest rate hikes from the Reserve Bank of Australia has added pressure on new homebuyers.


"We anticipate a further slowing in sales and price appreciation in 2011," said Ms. Warren. "While Australia's close trade ties with Asia and resource wealth will continue to underpin a solid pace of domestic activity, higher interest rates will worsen already strained affordability."


The housing situation however looks far less rosy for other countries in the survey. Ireland, Italy, Japan and Spain all saw housing prices fall for 2010, and next year isn’t looking much better. Scotia Economics expects prices to continue to fall in those markets, or to remain flat.


A surprise finding was that the German market, which was flat for 2010 and has been in a slump for the better part of the decade, may finally be starting to recover. Private sector data suggests that export-driven growth in the country, which has bolstered employment and confidence, may be extending its gains to the housing sector.


But broader trends suggest any reversal in German housing may only be temporary.


"Despite expectations of continued healthy economic growth, demographic trends are not supportive of housing demand," said Ms. Warren. "Along with Japan, Germany's population is not only aging, but shrinking. Meanwhile, its home-ownership rate, at roughly 45%, is among the lowest of high-income nations."



Read more: http://www.cbc.ca/fp/story/2010/12/23/4018932.html#ixzz1954uUnTC

 

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Canadians' earnings rise 4.4%

OTTAWA — Average weekly earnings by Canadians in non-farm jobs increased 4.4% in October from a year earlier, Statistics Canada said Thursday.

Earnings averaged $863.33 for the month, the federal agency reported, while payrolls were up 1.7% to 14.74 million from a year earlier.

The average workweek increased 2.4% to 32.9 hours over the past 12 month.

“The pace of growth in earnings has been increasing in recent months. October was the third consecutive month in which the year-over-year growth rate was higher than 4%, the agency said. “Prior to this period, the increase surpassed 3% for four months in a row. For most of 2009, the rate of growth was below 2%.”



Read more: http://www.cbc.ca/fp/story/2010/12/23/4018850.html#ixzz1955AZHai

 

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IMF warns of risks to Canada’s growth

Canada’s economy is facing some serious obstacles, including high levels of household debt and anticipated health-care spending issues, the International Monetary Fund warned in a report Wednesday.

The IMF said Canada will see “muted growth” next year, after riding out the recession in comparatively better shape than its peers. Canada had a strong recovery, especially in the first half of 2010, on the back of widespread consumer spending as the Bank of Canada held interest rates low and credit flowed.

“Household debt has run up to high levels, housing markets are cooling and fiscal stimulus is waning. Risks are tilted to the downside, with a key risk that the global recovery stalls,” the report said. “In the absence of a double-dip recession in the United States and/or a new rapid deterioration of global financial conditions from renewed sovereign credit strains, Canada should enjoy a comfortable, if not exuberant, rate of growth in the near term.”

Douglas Porter, deputy chief economist with BMO Capital Markets, said in his year-end report that Canada scored the second-highest totals on its economic performance indictator after Germany among Group of Seven countries, but the results were nevertheless the weakest since 1994.

“Canada has plenty of areas that require improvement,” he said. “While most of the differences [between Canada and Germany] are slight, the major weak spot for Canada — and this is a relatively new development — is our widening current account deficit, compared with a surplus for Germany.”

Canada scored 81.9 out of 100 on the indicator, compared with Germany’s score of 87.2, based on factors including employment, inflation, budget deficit, current account deficit and credit rating. Canada’s highest grade in the past 40 years was 91.8 in 2007.

The United States scored 74.8 while Italy owned the lowest score at 69.5 on twin deficits, weak credit and high unemployment.

“Italy’s macroeconomic factors are actually the most similar to Canada’s at present, although its lower credit rating, reflecting years of past large budget deficits, puts it in a lower league,” he said.

The IMF report supports the federal government’s plan to balance its budget over the medium term, especially in light of concerns about the budgetary impact Canada’s aging population will have on health-care spending. The IMF further called on the provinces to be more open and transparent about the issue.

“Restraint in health-care spending will be an essential ingredient in fiscal stability,” the IMF said. “Left unchecked, growth in health-care spending would put increasing and unsustainable pressure on the fiscal positions of Canada’s governments.”

Jim Flaherty, the federal Minister of Finance, welcomed the IMF’s comments.

“The report provides strong support for our plan to return to budgetary balance and commends the recent decision to extend the deadline on some infrastructure projects,” Mr. Flaherty said in a release. “I also welcome the IMF’s strong endorsement of the government’s policies to promote Canada’s long-term growth prospects, notably infrastructure spending, corporate income tax cuts, and progress towards implementation of a Canadian securities regulator.”

Charles Kramer, the IMF’s mission chief to Canada, expects Canada’s economy to grow 3% in 2010 and 2.25% in 2011.

“The expansion is maturing so we expect some slowdown. We don’t see it necessary to respond [with more stimulus] now,” he said. “What we’d need to see is a substantial deterioration in the outlook, but we don’t expect that now.”

And if the economy demands it, Canada’s central bank does have some room to manoeuvre with interest rates at 1%.

“There’s some room to loosen,” Mr. Kramer said.

Other options include frontloading infrastructure projects and adjusting timelines on corporate tax cuts, he said.

Meanwhile, household debt has moved to almost 144% of disposable income, but Mr. Kramer suggests patience.

“At this point, the appropriate thing to do is wait and see how the credit cycle matures but one option is to take more steps on the mortgage market to rein that in a bit more if it doesn’t decelerate,” he said.



Read more: http://www.cbc.ca/fp/story/2010/12/22/4013848.html#ixzz1955huezv

 

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CMHC is answer to ballooning consumer debt

The big banks and the government are wringing their hands over what to do about ballooning consumer debt levels, a problem they both agree could have potentially disastrous repercussions down the road.

The banks which made most of the loans argue that they've already done what they can to curb credit growth and it's now up to Ottawa to step in.

For his part, Jim Flaherty, the Finance Minister, insists that it was the banks that got themselves into this mess and it's up to them to fix it.

And as the two sides bicker consumers just keep on borrowing, oblivious to the consequences.

But there's an obvious solution, according to Colin Kilgour, a partner at the Kilgour Advisory Group, a boutique financial consultancy in Toronto.

The reason consumers are borrowing so much is that the government has been encouraging them, just as it's also been encouraging the banks to lend. It's called CMHC insurance and the way it works is that Ottawa guarantees virtually all of the risky home loans made by the banks.

The program was originally conceived as a way for low-income Canadians to get mortgages and buy homes.

That's a good thing but it also provides a key benefit to the lenders since it removes risk of default. In effect, CMHC insured home loans are as safe as government bonds and that's allowed the banks to treat them as such.

"What's happened is it's become the major source of bank financing in Canada," said Mr. Kilgour. "At a time when you've got basically a stagnant economy you have free-flowing liquidity to residential credit."

Simply put, loans that would otherwise be regarded as less than top quality are transformed into triple A gold, courtesy of the tax payer.

"If the government wanted to slow down the growth in consumer debt, a hugely effective policy move would be to reduce the cap on the level of mortgages that CMHC is allowed to insure," said Mr. Kilgour.

Consumer debt levels shot up across North America as central banks chopped interest rates, first in response to the dot com collapse and later after the financial crisis.

The situation came to a head in the U.S. starting in 2007 with the subprime mortgage crisis, sparking a massive consumer deleveraging process that is still going on. But Canada never had a mortgage crisis so consumers on this side of the border continued to spend and their debt levels are now at the same place they were in the U.S. immediately prior to the meltdown.

According to Mr. Kilgour, it would be wrong to force the CMHC to shoulder all the responsibility for the situation because it performed a vital function during the crisis, enabling banks to access liquidity at a time when their international peers could not.

Thanks to the government guarantee, Canadian lenders were able to securitize billions of dollars of mortgages and swap them for cash.

In connection with the crisis, Ottawa vastly expanded the program, allowing the banks to insure and sell more than $100-billion of home loans.

But as financial markets returned to normal the level, government support declined only slightly.

For the first time the amount of outstanding mortgage backed securities passed the $300-billion mark earlier this year, more than double the amount at the start of 2007.

2010 issuance is expected to reach $100-billion, the third highest level in history.

The banks love it because it's risk free business, and investors love it for the same reason.

The problem is that it's encouraging banks to lend at a time when they need to put their foot on the brake.

According to Mr. Kilgour, what needs to happen is for the CMHC to reduce the amount of insurance it provides.

Without that, "there’s no motivation for the banks to tighten up on lending – since they know that by the time the stuff hits the fan, much of their risk will be off the table," said Mr. Kilgour.



Read more: http://www.cbc.ca/fp/story/2010/12/23/4019930.html#ixzz19560GTIz

 

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Economy grows less than forecast

OTTAWA — The Canadian economy rebounded in October after shrinking in the previous month, Statistics Canada said Thursday, as robust gains in mining and oil and gas extraction, coupled with slight improvements in real estate, offset declines in manufacturing and retail.

However, the 0.2% month-over-month gain was just below market expectations for a 0.3% boost, and prompted some economists to begin trimming back growth expectations for fourth-quarter economic activity. Since April, month-over-month growth in economic activity has averaged less than 0.1%, after ending 2009 and beginning 2010 with a bang.

“Despite the miss relative to the consensus forecast, the report indicates that the economy rallied back after [economic] output was steady or fell in two of the three months of the third quarter,” said Dawn Desjardins, assistant chief economist at Royal Bank of Canada.

Royal Bank had projected 2.9% annualized growth for the October-to-December period, but Ms. Desjardins said the October reading indicated fourth-quarter expansion more in line with 2.25%.

“Even with the economy growing slightly slower than we thought, the data still validates our assumption that the slowing trend in growth that began in the spring is coming to an end,” Ms. Desjardins said.

BMO Capital Markets also said it would scale back fourth-quarter expectations as a result of the October GDP report, from a 2.5% annualized advance to something closer to 2.2%.

October represents the first month of data for the fourth quarter, which is expected to show a better result after a disappointing 1% annualized advance in the July-to-September period. The Bank of Canada had projected 2.6% growth for the fourth quarter, while other private-sector economists expect output to grow in the low 2% range.

Still, market reaction was muted, with the Canadian dollar up slightly, as were yields on Canadian bonds.

And as the Canadian data were released, U.S. figures for November showed further encouraging signs: personal income rose 0.3%, slightly ahead of expectations; consumer spending increased for a fifth straight month, and was revised higher for October; and new claims for jobless benefits dropped.

October’s economic gains in Canada were largely broad-based, with 11 of 18 sector posting growth. By far, however, the standout performer was mining and oil and gas extraction, which as a grouping surged 2.4%.

Oil and gas extraction advanced 1.3%, almost entirely on the strength of natural gas, Statistics Canada said. Support activities for mining and oil and gas extraction rebounded strongly, 9.9%, from a September decline, the data agency added, as unfavourable weather had hampered rigging activities. Pipeline transportation also increased.

Mixed signals emerged in the housing market. An increase in the resale market in several parts of the country led to a 5.1% rise in the output of real estate agents and brokers, marking a third consecutive monthly gain. However, construction declined 0.5% in October as residential building construction fell.

Also acting as a drag in October was manufacturing, which saw a substantial 2.3% decline in the production of non-durable goods.

Overall, the October results are an improvement from the summer months, said Douglas Porter, deputy chief economist at BMO Capital Markets. “[But] the modest rebound in October shows that the Canadian economy is now struggling to generate any serious momentum after a flashy start to the recovery. For the expansion to move to the next level, we need the U.S. economy to kick into a higher gear — thankfully, that looks to be precisely the case.”



Read more: http://www.cbc.ca/fp/story/2010/12/23/4018776.html#ixzz1956Pwff7

 

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Average weekly earnings rise again

The average weekly pay of employees — excluding farm workers — rose 4.4 per cent to $863.33 in October from the same month in the previous year, Statistics Canada said Thursday.

October was the third month in a row with an average gain over four per cent. Before August, there were four months with a three per cent increase. The rate was below two per cent for most of 2009, Statistics Canada said.

Who makes what: a sample of average weekly earnings in October 2010
Industry Earnings % change from October 2009
Mining, oil and gas $1,754.69 +13.6
Manufacturing $976.79 + 8.5
Retail $508.64 + 2.4
Finance $1,059.70 + 1.4
Public Administration $1,102.78 + 1.6
All industries $863.33 + 4.4
Source: Statistics Canada
The trend points to an improving economy.

But the October gain is not all due to higher wages. And there are big regional and industry variations.

Some of the growth was attributable to a small increase in the average number of hours worked per week, to 32.9. Other factors include changes in employment by industry (as, for example, 20,000 workers entered the high-paying oil and gas industry over 12 months), occupation changes within industries, seniority (new hires usually make less than experienced workers) and wage increases.

Only two provinces — Alberta and Ontario — and three territories were above the national average. Ontario was just over the national average at $889.84, while Alberta was far ahead at $1,012.54. Wages in the territories ranged from $916.94 in Nunavut to $1,220.52 in the Northwest Territories.

Mining and oil and gas, the top weekly wage, reported a big year-over-year increase of 13.6 per cent. About 190,000 people are employed in that industry. Retail, the single biggest occupation with more than 1.8 million workers, reported a below-average increase and workers there make less than a third of the average mining and oil and gas wage.

Total non-farm payroll employment is up 1.7 per cent or 241,100 people to 14.7 million employees over the year.



Read more: http://www.cbc.ca/money/story/2010/12/23/average-weekly-earnings-canada-october.html#ixzz1957iNQdw

 

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Just in time for the holidays: Gas prices on the rise

Drivers across North America are getting an unwelcome Christmas present this year -- a quick rise in prices at the gas pump.

Across Ottawa, drivers were paying around $1.16/litre for regular gasoline on Thursday. At this time last year, average gas prices in the capital were $.95/litre.

"It's not cool," said driving instructor Alex Pape in Ottawa. "Everything's just too expensive, especially with being on the road all the time."

The higher prices are hitting taxi drivers particularly hard.

"Most of the money they make they give to gas companies or the taxi companies," said Amrik Singh of the Ontario Taxi Union. "So they go home with almost nothing."

In Toronto, the cost of a regular litre of gas rose 2.1 cents overnight Wednesday to $1.13.

But prices have spiked more dramatically in Montreal, where they reached $123.9/litre for regular unleaded fuel -- a jump of $0.10/litre since Wednesday night.

According to one analyst, the dramatic fluctuation in that city is the sign of a healthy local market.

"It is true that Montreal motorists have had to face increases and higher margins during this same period, but at least the market adjusts more quickly," said Sophie Gagnon, a spokesperson for CAA-Quebec. "In the course of a week, it is thus possible to fill up at prices closer to market indicators."

The same thing has been happening south of the border, where the national average price per gallon of regular gasoline surpassed US$3 on Thursday -- the first time that has happened at Christmas.

Average prices in the U.S. rose close to a cent and a half per gallon overnight Wednesday, to US$3.01, according to AAA, Wright Express and Oil Price Information Service. American gas prices were $0.14/gallon higher compared to a month ago, and $0.43/gallon above where they were at this time in 2009.

The cost of gasoline tends to fall later in the year once the summer driving season wraps up. But this year gasoline prices continued to creep higher, from around $80 per barrel in August to $93.58 on Thursday -- its highest level in more than two years.

The falling U.S. dollar may also be partly to blame. Because oil is traded in American currency it is becoming more affordable for investors to buy, as foreign currencies rise compared to the greenback.

 

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Canada's housing market one of global top performers

TORONTO — Scotia Economics says Canada's housing market turned in one of the best, but also one of the most volatile, performances among advanced countries in 2010.

In its year-end real estate report, Scotia Economics says global residential real estate markets experienced a modest but uneven recovery this year, supported by ultra-low interest rates and gradually improving economic conditions.

Canada was among six of 12 countries studied that saw home prices increase.

Prices in the U.S. and Germany were flat, while those in Ireland, Italy, Japan and Spain fell.

The Canadian real estate market experienced an unusually active winter and spring prompted by pent-up demand coming out of the recession that gave way to an unusually soft summer.

The bank predicts a more subdued Canadian market in 2011 as interest rates remain near historical lows amid an uncertain global economy.

 

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Nearly every working Canadian poised to pay more income and payroll taxes

OTTAWA — Most working Canadians will pay more both in income and payroll taxes in 2011, with Ontarians, British Columbians and Nova Scotians the hardest hit, the Canadian Taxpayers Federation says in a study released Tuesday.


The nationwide hikes are largely due to an increase in employment insurance and the Canadian Pension Plan, said Derek Fildebrandt, the federation's national research director.


"EI and CPP are the common villains," he said. "Everybody across the country is going to suffer from the government's decision to create all these new programs they want to fund through the EI fund."


The federation's annual new year tax change calculations, which were based on several income and family scenarios adjusted to inflation, found there will be a national average two per cent increase in 2011 over 2010.


Traditionally, the federation's calculations have predicted some winners and some losers, depending on individuals' income level, family scenarios and the province in which they live, Fildebrandt said. But this year, that trend has been bucked.


"This year, everyone loses," Fildebrandt said. "Although, some more than others.


"In every province, family and income scenario, our research finds that the government's take from inflation-adjusted incomes will increase, in some cases, substantially."


Federal payroll tax increases, effective Jan. 1, will affect almost every Canadian worker — but those living in provinces with rates of inflation above the national average will see even bigger increases.


Ontario, for example, will see the largest increase, with an average 4.3 per cent increase seen in the scenarios the federation analyzed. A single-income family in Ontario earning $45,000 in 2010 looks poised for a 5.1 per cent increase on the taxable portion of the income — or $389. A double-income family earning $80,000 will be paying 3.5 per cent more on the taxable portion of that income — or $590 — the calculations show.


British Columbians appear set to experience the second-largest hike in the country, with an average increase of 2.9 per cent.


The average increase in Nova Scotia will be 2.8 per cent, according to the study. A double-income family earning $60,000 in that province, will see a 2.9 per cent hike on the taxable amount they owe, meaning they will pay $345 more.


"The federal government likes to talk about stimulus a lot," Fildebrandt said. "But normally, stimulus is just code word for borrowing money and spending it on road signs and hockey arenas . . . The best and only kind of stimulus that works is tax cuts."

 

[saki]

Economic growth expected to slow in 2011

Canada's economy faces subdued growth in the new year as an initial strong rebound from the recession shifts into a more sluggish expansion, a prominent business group says.

In its outlook for 2011, the Canadian Chamber of Commerce said "more prudent spending" by Canadians is a factor in the country's slowing economic growth. Gross domestic product expanded by 2.3 per cent in the second quarter of 2010 and only one per cent in the third quarter.

"The Canadian economy is chugging along, but not at full steam," chamber CEO Perrin Beatty said.

The chamber also expects the Bank of Canada to stay on the sidelines, leaving key lending rates as they are, until next summer. It predicts the overnight target interest rate will reach two per cent by year-end 2011 and three per cent by year-end 2012.

Canadians working to repair their own financial situations and get debt under control will cause the economy to grow at an average annual rate of less than 2.5 per cent in 2011, the chamber said in the report.

A cooling housing market, wobbly U.S. economy and the winding down of government stimulus cash will all contribute to the muted growth, the chamber said.

Meanwhile, the higher Canadian dollar and soft demand from the United States will curb demand for exports, while import growth is also expected to slow as domestic spending moderates.

"We believe Canada's relatively strong fundamentals—an enviable fiscal position, a strong banking system, widening interest rate differentials and favourable commodity prices—will save the loonie from excessive downside pressures. These forces should hold the Canadian dollar near and slightly above parity in 2011 and 2012," Beatty said.