Canadian Economic News

[Smallc]

Global Insight predicts 100,000 jobs lost.

http://ca.news.yahoo.com/s/capress/081111/national/economy

I expect some places like Ontario and Quebec will be hit the hardest.

I expect that most of the losses will come in Ontario, BC, and Quebec. I think that places like Manitoba and Saskatchewan will be largely spared, provided that oil doesn't fall far below $50 and that the commodity market hits a bottom in the near future, something it should do..

[jdobbin]

The stock market and commodities market continue to slide downward steeply.

Oils has slid down to $57 a barrel.

http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories

Stock markets plunged steeply near midday as commodity prices, financial shares and overall confidence eroded even as governments made new attempts to calm fears.

Toronto's S&P/TSX composite index accelerated its losses and fell 352.47 points to 9,071.53, following a 265-point loss Tuesday.

The TSX energy sector dropped 4.7 per cent as the price of crude oil continued to fall. Light sweet crude for December delivery was down $2.36 at US$56.97 a barrel on the New York Mercantile Exchange.

Some analysts are saying if oil hit $50 a barrel, it is going to start idling some major projects.

[geoffrey]

Some analysts are saying if oil hit $50 a barrel, it is going to start idling some major projects.

Major projects are already starting to idle. CNRL and PetCan have both scaled back major projects. CNRL from $4b this year to just $500m next. Ouch!

I'm starting to look for work a little further west now. Not that I'm worried about my job. But Alberta is in for a rough ride the next couple of years.

[jdobbin]

Major projects are already starting to idle. CNRL and PetCan have both scaled back major projects. CNRL from $4b this year to just $500m next. Ouch!

I'm starting to look for work a little further west now. Not that I'm worried about my job. But Alberta is in for a rough ride the next couple of years.

How far west? UAE?

[Smallc]

How far west? UAE?

I was wondering the same thing. This should affect BC badly too. From what I have heard, Saskatchewan and Manitoba will do quite well through this. Sask will have trouble if oil goes below $45, Manitoba if other commodities fall too much.

[geoffrey]

How far west? UAE?

They are going to hurt too in UAE.

I'm actually in process of some job stuff in Vancouver... we'll see. I think I like their economy more than Calgary's in the next few years. The new royalty program is moving resources to BC from here. Who knows. I want to go to a city that is more based on intellectual capital than resources. It's been good in Calgary, but that's looking bleak now from here.

Now if only they didn't have such disgusting taxes!

[jdobbin]

They are going to hurt too in UAE.

Oil is the UAE is simpler to get at than tar.

I'm actually in process of some job stuff in Vancouver... we'll see. I think I like their economy more than Calgary's in the next few years. The new royalty program is moving resources to BC from here. Who knows. I want to go to a city that is more based on intellectual capital than resources. It's been good in Calgary, but that's looking bleak now from here.

And Vancouver looks good?

Now if only they didn't have such disgusting taxes!

UAE has good taxes.

Just don't go swimming in the nude.

Edited November 14, 2008 by jdobbin

[jdobbin]

Oil continues to slide.

http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories

Fears of a prolonged recession in developing countries and weak crude demand sent oil prices drifting below US$55 a barrel Tuesday.

Dow Jones fell 2.3% Monday and the Asian and European markets collapsed again as well.

The market is up in Canada for the beginning on Tuesday perhaps looking for some bargains but the news is still full of instability south of the border.

Parliament opens in the next day and it is clear that the economy will dominate over most other issues. As much as Harper says he doesn't want a package for the auto industry, it is increasingly looking like he might have to do just that if the States has one.

[jdobbin]

Oil has slipped below $50, the first time since 2005.

http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories

The headline price of crude oil has dipped below US$50 a barrel as anxiety intensifies about the global economy.

Crude briefly went as low as US$49.91 a barrel on the New York Mercantile Exchange, trading later in the morning at US$50.40, down $3.22 on the day.

The front-month Nymex contract has not been below $50 since May 2005, according to CNBC's MarketWatch.

All of this is cutting into Alberta's budget surplus.

http://www.thestar.com/News/Canada/article/540218

A day after announcing a big drop in its projected budget surplus, Alberta said yesterday it will roll back part of a contentious royalty hike to encourage drilling in the sagging energy industry.

Premier Ed Stelmach said the global chill on credit and capital markets created an urgent need for action in Alberta.

"The overriding factor is the world has changed and this is all about creating Alberta jobs," he said.

The royalty hikes were set to take effect Jan. 1. But under Stelmach's announcement yesterday, there will be $1.8 billion in royalty savings over five years for new oil and natural gas wells that meet drilling criteria. Alberta officials stressed the move is a temporary incentive.

Nationally, the media companies are the among the first of the service industries to begin cutting back drastically in Canada.

http://www.theglobeandmail.com/servlet/sto...PStory/Business

Corus Entertainment Inc. has joined the growing list of broadcasters that are slashing costs amid a slowdown in advertising spending, following similar moves by CTV Inc. and CanWest Global Communications Corp. in recent days.

The owner of specialty television stations such as YTV, Treehouse and CMT stopped short of cutting jobs but has told staff that discretionary spending - from new cellphones to company Christmas parties - is being cut as advertising dollars dwindle in a tight economy.

Such measures are sweeping the corporate landscape as companies confront the reality of having to balance budgets in the face of a downturn that is expected to deepen in 2009.

Meanwhile, stocks continue to decline this Thursday.

North American stocks resumed their decline early Thursday after a major sell-off in overseas markets as fears about a global recession were fanned by concerns over possible deflation, with most commodity prices also continuing to fall.

The Toronto Stock Exchange's main index, the S&P/TSX composite, was down 190.58 points, or 2.24 per cent, to 8,299.98 - adding to its losses following more than a four cent plunge on Wednesday.

It is the first time since 1970-1971 that a government has slipped from surplus to deficit.

So much for the absolutist statements on never running a deficit. The previous spending and ill considered tax cuts to the GST is responsible for slipping into recession.

http://www.theglobeandmail.com/servlet/sto...y/politics/home

IHS Global Insight Canada managing director Dale Orr said Mr. Flaherty and the Conservatives should have taken better precautions against a deficit, noting they cut some rainy-day cushions and drove program spending up 13.8 per cent in their first two years.

It's also hard to find an economist who supports the Conservatives' decision to forgo $11-billion of annual revenue and cut the goods and services tax by two points, instead of using that fiscal room for productivity-enhancing, broad-based income-tax cuts.

It is going to be hard for Canadians to find satisfaction from a combination of deficit spending, poor economic performance and personal hardship. Of course, the Tories could always blame the Liberals for this.

[blueblood]

Oil has slipped below $50, the first time since 2005.

http://www.ctv.ca/servlet/ArticleNews/stor...?hub=TopStories

All of this is cutting into Alberta's budget surplus.

http://www.thestar.com/News/Canada/article/540218

Nationally, the media companies are the among the first of the service industries to begin cutting back drastically in Canada.

http://www.theglobeandmail.com/servlet/sto...PStory/Business

Meanwhile, stocks continue to decline this Thursday.

It is the first time since 1970-1971 that a government has slipped from surplus to deficit.

So much for the absolutist statements on never running a deficit. The previous spending and ill considered tax cuts to the GST is responsible for slipping into recession.

http://www.theglobeandmail.com/servlet/sto...y/politics/home

It is going to be hard for Canadians to find satisfaction from a combination of deficit spending, poor economic performance and personal hardship. Of course, the Tories could always blame the Liberals for this.

in 1970-71, which gov't was in power?

How do tax cuts and gov't spending contribute to a recession. Sorry that's completely wrong. All gov't spending and tax cuts do is make for an unbalanced budget. The United States is a perfect example of this.

The only thing the tories will blame the Liberals for is pet project spending and high taxes like they always do. The recession has to do with US lawmakers forcing banks to give shady loans to poor people.

Nice try if PMPM got re-elected or Dion got in and kept their promises, we'd probably be in worse shape.

[jdobbin]

in 1970-71, which gov't was in power?

The Liberals. The same party that ended the deficit.

How do tax cuts and gov't spending contribute to a recession. Sorry that's completely wrong. All gov't spending and tax cuts do is make for an unbalanced budget. The United States is a perfect example of this.

Didn't say it contributed to a recession. I said it contributed it to a deficit in a downturn in the economy.

The only thing the tories will blame the Liberals for is pet project spending and high taxes like they always do. The recession has to do with US lawmakers forcing banks to give shady loans to poor people.

Nice try if PMPM got re-elected or Dion got in and kept their promises, we'd probably be in worse shape.

Dion didn't get in and Harper owns this deficit. He inherited a surplus and now he will give Canada a deficit. How many years of deficit are ardent Tories prepared to support? Probably 10 or more years and they will blame the Liberals all the while.

Edited November 20, 2008 by jdobbin