RBC Economics is calling for a Fed rate cut, driven by financial market stress, not economic fundamentals. In a research note published today, RBC says that it has revised its outlook for the Fed funds rate, and is now calling for a 50 basis-point rate cut, “as policymakers work to alleviate liquidity concerns that have […]
Selling pressure is more about fear than reality, economist says
Merrill Lynch’s Survey of Fund Managers for August finds that fund managers are reluctant to abandon equities, notwithstanding recent market turbulence.“While fund managers have turned more risk averse in light of global market instability they still believe equities offer value, especially relative to bonds,” it says. In the broadest snapshot of global institutional investor sentiment […]
GDP increased expected to be 2.8% for the year
The number of well-off provinces have dwindled to just one from three, and the province is decisively above average, says Global Insight Inc., in a new note.“During the 1980s, Canada had three solid ‘have’ provinces. Today, Alberta is the only one, though, as B.C.’s standard of living has fallen below the national average, while Ontario’s […]
The recent losses on the Toronto Stock Exchange were driven by unwarranted fears that the U.S. subprime meltdown would seriously impact global growth, finds a new CIBC World Markets report.“Investors followed a circuitous route to link U.S. mortgages to Canadian equities over the past month,” says Avery Shenfeld, senior economist at CIBC World Markets. “Losses […]
Solid growth in exports and investment spending will offset U.S. housing sector slowdown
Canadian GDP growth expected to average around 2.5% in 2007 and 2008
Increasing consumption and slowing production in developing countries support steady ascent in oil prices
More workers will leave labour force than enter it within 10 years