Canadians should start thinking outside the box to boost their investment returns
- We have looked to firms like Mortgage Investment Corporations (MICs), other firms that lend to businesses with loans that are secured in a number of different ways, or those doing factoring with high-quality companies.
- There are several ways to find investments in these areas that are generating returns of 7 per cent to 10 per cent a year that are not correlated to the stock market.
- While most view life insurance as something to cover off risks when you have a mortgage and children, for wealthier individuals who will have a decent sized estate, permanent life insurance is a means to generate tax-free returns that are not connected with the ups and downs of the stock market or real estate.
Theresa May calls off key vote on Brexit deal to avoid huge defeat, source says
- U.K. Prime Minister Theresa May is calling off a crucial vote in Parliament on whether to approve her Brexit deal, according to a person familiar with the situation.
- The vote in the House of Commons to approve the terms of the U.K.’s divorce from the European Union was due to be held on Tuesday evening but is now due to be rescheduled, according to the person who declined to be named.
- It’s still possible that May’s Cabinet will take a different view and push the prime minister to carry on and call the vote as planned for Tuesday evening.
- May’s plan to delay the vote throws the Brexit process into further confusion.
- She is due back in Brussels at a summit of EU on Thursday and is expected to ask for fresh concessions in an attempt to revive the chances of getting her deal through Parliament.
Elon Musk says Tesla may consider buying idle General Motors plants
- Tesla Inc. Chief Executive Officer Elon Musk told CBS’s “60 Minutes” that he may be willing to buy some of the five factories General Motors Co. will idle next year, making him the second rival in two days to step up with possible job-creating moves as GM takes political heat for cutting workers.
- GM CEO Mary Barra was in Washington the past two days meeting with members of Congress about her plans to close five factories in North America and lay off 14,700 workers.
- While Barra was speaking with legislators on Thursday, Fiat Chrysler Automobiles NV said it will reopen one of its idle engine plant in Detroit and build a new Jeep, intensifying the irritation in Congress over GM’s plan to cut jobs.
- Tesla makes the all-electric Model S, Model X and Model 3 at its sole auto plant in California, which it bought from a joint venture operated by GM and Toyota Motor Corp.
The Liberals are crowing about job creation, but beware the devil in the data
- Bill Morneau couldn’t resist attaching himself to Statistics Canada’s latest hiring numbers, which put the jobless rate at 5.6 per cent in November, the lowest in a dataset that dates to 1976.
- Stephen Poloz, the governor of the Bank of Canada, told reporters in Toronto on Dec. 7 that there almost certainly will be job losses as a result of the situation in Alberta’s oil patch.
- One is average hourly wages, which were 1.7 per cent higher in November than a year earlier, the sixth consecutive month that the rate of pay growth slowed.
- Higher post-secondary enrolment rates suggest that a greater number of younger people are choosing school over a paycheque.
- The youth participation rate is especially low in Alberta, suggesting the troubles in the oil patch since prices collapsed in 2014 risk sidelining a generation of workers, said Brendon Bernard, an economist at Indeed, the hiring website.
Cronos shares soar on Altria investment, but deal has some analysts preaching caution
- Big Tobacco’s entry into the Canadian cannabis space is yielding mixed responses from analysts, some of whom are urging investors to view the $2.4-billion investment by Marlboro-maker Altria and licensed cannabis producer Cronos Group with a degree of caution.
- Altria’s 45 per cent investment in Cronos — with an option of increasing its stake to 55 per cent through warrants — sent Cronos’ shares soaring by more than 20 per cent in the first few hours of trading Friday.
- As part of the deal, the tobacco company acquired 146.2 million newly issued shares for $16.25 each, a roughly 15 per cent premium over Cronos’ closing price Thursday evening.
- Cronos is the fourth largest cannabis company by market value, only this week surpassing Aphria Inc. after the shares in the latter plunged following negative reports from a short-sheller.
Detour Gold’s battle with billionaire investor down to the wire — and both sides may claim victory
- U.S. hedge fund billionaire John Paulson’s battle to oust the entire board of directors at Toronto-based Detour Gold Corp.
- It noted that since Paulson first went public with his calls for change at Detour this June, the company has outperformed the S&P/TSX Global Gold Index by 17 per cent after trailing it for several years.
- But Kim, who is leading the campaign for Paulson, switched tacks and in July called for a special shareholder meeting and a vote to replace the entire board of directors.
- Still, neither Glass Lewis nor Institutional Shareholder Services, the other third-party proxy advisor to weigh in, would support plans for a completely new board.
- It recommended support for Detour’s ballot, which called for the removal of two of its directors to be replaced by two of Paulson’s candidates.
Oil is going crazy after OPEC, Russia agree to slash 1.2 million barrels a day
- LONDON — Oil prices jumped more than 5 per cent on Friday as OPEC and its Russia-led allies agreed to slash oil production by more than the market had expected despite pressure from U.S. President Donald Trump to reduce the price of crude.
- But Iran gave OPEC the green light on Friday to reduce oil output by around 0.8 million barrels per day from 2019 after finding a compromise with rival Saudi Arabia over a possible exemption from the cuts, an OPEC source said.
- Oil output from the world’s biggest producers – OPEC, Russia and the United States – has increased by 3.3 million bpd since the end of 2017 to 56.38 million bpd, meeting almost 60 per cent of global consumption.
- The surge is mainly due to soaring U.S. oil production, which has jumped by 2.5 million bpd since early 2016 to a record 11.7 million bpd, making the United States the world’s biggest producer.
Wall Street tumbles again as jitters over U.S., China trade resurface
- Wall Street fell 1.5 per cent on Friday with a drop in technology stocks sparking a turnaround from earlier in the day, as renewed concerns of the China-U.S. trade situation offset the effect of a jump in oil prices and a tepid U.S. jobs report.
- Stock futures pared losses after the jobs report and the three major indexes moved higher shortly after the open.
- The S&P technology and healthcare indexes slid more than 2 per cent, while the five other sectors, including trade-sensitive industrials, were down between 1 per cent and 2 per cent.
- Energy stocks rose 1.10 per cent after crude oil prices jumped as big Middle East producers in OPEC agreed to reduce output to drain global inventories and support the market.
Ontario sacks three Waterfront Toronto board members, including acting CEO, amid Sidewalk Labs controversy
- Ontario Infrastructure Minister Monte McNaughton has fired three provincial government representatives on the board of Waterfront Toronto in response to an auditor general’s report that “shocked” him.
- The three board members who were removed by the province include Waterfront Toronto chair Helen Burstyn, along with Meric S.
- Gertler who is president of the University of Toronto, and Michael Nobrega, former president and CEO of the Ontario Municipal Employees Retirement System, and current board chair for the Ontario Centres of Excellence.
- The firings come at a critical time when Waterfront Toronto is mired in controversy surrounding the Sidewalk Labs project proposed for the city’s eastern waterfront.
- Waterfront Toronto is a federal-provincial-municipal agency that has been leading the project, and McNaughton in his statement said that the Sidewalk project was part of the reason he fired the three provincial board representatives.
Stephen Poloz’s dashboard: The latest charts that matter most to the Bank of Canada
- Stephen Poloz, the Bank of Canada governor, probably only glances at those figures.
- 27, the youth participation rate is an indicator he watches “particularly closely.” You never see that number reported widely.
- If you rely only on a few widely reported figures, your understanding of how the central bank is thinking about the economy will be lacking.
- Fortunately, Poloz and his deputies have been good about discussing the data they use to illuminate the corners of the economy that headline readings miss.
- The Financial Post used those references to create a dashboard of the indicators that we imagine Poloz and his lieutenants are watching as they decide how quickly to raise interest rates.
- When the Bank of Canada says it is “data dependent,” these are many of the indicators on which it relies most.