Canada Fx Debt-c$ Firms But Kept To A Range By U.s. Budget Woes

You must enter the verification code below to send. Invalid entry: Please type the verification code again. October 3, 2013, 11:25 a.m. ET Canada Hot Stocks: BlackBerry, BNK Petroleum, Cequence, Imax Text Among the companies whose shares are making notable moves in Thursday’s session are BlackBerry Ltd. (BBRY), BNK Petroleum Ltd. (BKX.T), Cequence Energy Ltd. (CQ.T) and Imax Corp. (IMAX). BlackBerry ($7.87, down 1.2%) shares are back in negative territory after getting a boost Wednesday from news it’s drawn the interest of distressed-investing specialists including Cerberus Caiptal Management LP. BNK Petroleum (C$1.51, up 24%), in an update on its Caney oil shale operations in Oklahoma, said the Hartgraves 5-3H well has averaged 1,200 barrels of oil equivalent a day in the four days leading up to Wednesday. It said the early production “is more constant and twice as good as the best and previously drilled and fracture stimulated Caney well.” Cequence Energy (C$1.61, up 3.9%) said a unit of Canada Pension Plan Investment Board has agreed to invest C$60 million in unsecured five-year notes of the company, and may invest another C$60 million at a future date.

Canada Hot Stocks: BlackBerry, BNK Petroleum, Cequence, Imax

Investors were concerned about what impact the impasse will have on the still-fragile economic recovery. Analysts said a shutdown that drags on longer than a few days will start to bite into economic growth in the United States, Canada’s biggest trading partner. Still, without a resolution or other catalyst, the Canadian dollar was seen sticking to recent levels. Following a brief spike after the U.S. Federal Reserve’s decision to stand pat on its economic stimulus, the Canadian dollar has been trading in a tight range since late September. “We’ll call it the eye of the storm,” said Jack Spitz, managing director of foreign exchange at National Bank Financial in Toronto. “There’s plenty of volatility around us, but it seems to be having a self-mitigating impact on dollar-Canada dollar.” The Canadian dollar was at C$1.0324, or 96.86 U.S. cents, stronger than Wednesday’s close of C$1.0332, or 96.79 U.S. cents. In the longer-term, the Canadian dollar is expected to lose ground against its U.S. counterpart in coming months, though economists forecast the currency will be more resilient than previously anticipated, a Reuters poll found. The median forecast of more than 50 economists and currency strategists was for the Canadian dollar to trade at C$1.030 to the U.S.

Canada’s Macklem Curbs Growth Forecast on Elusive Exports

We have from time to time seen capital flows and theres no doubt that they also tend to boost the currency, Macklem said. From a monetary policy perspective, we certainly have been taking into account where the exchange rate is, and thats an important reason why monetary conditions in this country have remained highly stimulative. Revised Projections The banks revised projections come after Statistics Canada reported Aug. 30 second-quarter growth at a 1.7 percent annualized pace, above the 1 percent the central bank had forecast. Todays update brings the bank more in line with forecasts by private-sector economists, who are predicting a 2.1 growth rate this quarter, and an average of 2.4 percent over the next six quarters, according to Bloomberg surveys. Macklems speech didnt refer to the economy nearing a tipping point, which was the major theme of a Sept. 18 speech by Poloz in Vancouver . Poloz said the Bank of Canada was projecting a solid pace of export growth that will lead to a broadly based increase in investment and provide incentives for new businesses to form. Growth is expected to accelerate in 2014 as demand for exports and investment spending gain momentum, Macklem said, while cautioning that there is a risk that this rotation is delayed further. With potential output growth estimated to be about 2 percent, the nations economy needs to expand by at least 2.5 percent in order to begin absorbing the current material degree of slack, Macklem said. Slower Growth Canada has averaged annualized quarterly growth rates of 1.3 percent since the start of 2012, down from 3 percent in 2010 and 2011, according to Statistics Canada data. Because the central bank anticipates household and government spending together to contribute about 1.5 percentage points of growth, net exports and business investment will need to add at least 1 percentage point to the nations expansion, he said. That means together exports and investment need to grow by at least about 4 percent after taking into account their import content, Macklem said. In the past year, next exports and investment made no contribution to growth. Stronger exports will bolster confidence and foster new capacity-building investment, reversing a trend of low capital spending, Macklem said. Investment Pick-up Investment is unlikely to accelerate until businesses are confident that demand is picking up, Macklem said in the speech, which also outlined the global economic outlook. Macklem said the recovery in U.S.

Canada’s rich better off now than before recession: BMO

REUTERS/Mark Blinch “You never want a serious crisis to go to waste,” said U.S. President Barack Obamas former chief-of-staff Rahm Emanuel during the darkest days of the 2008 recession, the fiscal collapse that ushered in a global recession, cratered the stock market and all but wiped out three of the worlds top investment banks in the process. As we know though, investors are a resilient bunch, particularly the wealthiest ones . We were reminded again of that with the just-released survey by BMO Harris Bank, which polled high-net worth individuals in Canada and the U.S., the majority of whom are richer today than they were five years ago when the North American economy tanked, and nearly took down the global banking system in the process. For BMO’s purposes, high-net worth is defined as Canadians with more than $1 million to play with in the market. Of those interviewed, only 11 per cent say they were worse off today than in 2008. High-net-worth Canadians clearly feel they have bounced back well from the 2008 downturn and are fairly upbeat about what the future has in store for Canadas economy, Alex Dousmanis-Curtis, senior vice-president and head of BMO Private Banking, said on Thursday in a release. That kind of optimism among the affluent is fairly astounding if you think back to the fall of 2008, or to some of the books, articles and movies that came out almost immediately afterward. The sense of doom was palatable. Retirement savings were wiped out. Snow-bird investors watched as properties in Florida and Arizona carried mortgages so deeply underwater that walking away seemed the only sensible move. Private schools across Toronto were forced to turn their worries and fears into open houses and aggressive marketing campaigns, the better to staunch the risk of withdrawals. And yet as Emanuel advised, when much seemed lost, savvy investors with a little depth still in their pockets saw this as a great time to begin buying again, snapping up stocks, bonds and properties that were hastily dumped in the great swing downward. And while everything that falls does not someday go up, experienced hands know all too well that markets are cyclical, and that eventually the tide will come back in. To no surprise, it has roared back a bit more forcefully in the U.S., where the BMO Harris poll shows that 61 per cent of Americans feel better off today than before the recession, compared to only 54 per cent in Canada.

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