The Canadian dollar rally stalled amid lackluster housing and PMI data. Building permits, printing a 0.4 percent drop, together with Ivey?s purchasing manager?s index, posting the first decline in three months, indicated the Canadian economy is slowing. Construction affordability is beginning to weigh on businesses as mortgage lenders increased regulations to protect themselves from credit defaults.
Upset with the bidding process, Telus Corp. CEO [I]Darren Entwistle refused to make another offer for BCE Inc. [/I]Ontario Teachers Pension Plan currently has a $51.7 billion bid on the table for BCE, trumping Telus?s Initial bid.
http://www.cbc.ca/money/story/2007/08/03/telusbce.html
[I]Source: CBC[/I]
Building permits posted a 0.4 percent decrease versus the 9.8 percent decrease expected. Despite falling from May?s all-time record at 21.4 percent, the June figure is still the second highest print since the inception of the index.
http://www.canada.com/nationalpost/financialpost/story.html?id=0817a0b2-aeb7-41e7-bbe7-edfe1939f87c&k=45570
[I]Source: Financial Post[/I]
Brookfield Asset Management Inc. announced a 13 percent increase in its second quarter earning on rising demand from the housing sector boosting real-estate profitability. Profits rose to $153 million, or 24 cents a share, from $135 million, or 20 cents a share (adjusted for a three- for-two stock split paid in June).
Bloomberg - Are you a robot?
[I]Source: Bloomberg[/I]
[I]Currency Markets: USDCAD[/I]
The Canadian dollar rally stalled amid lackluster housing and PMI data. Building permits, printing a 0.4 percent drop, together with Ivey?s purchasing manager?s index, posting the first decline in three months, indicated the Canadian economy is slowing. Construction affordability is beginning to weigh on businesses as mortgage lenders increased regulations to protect themselves from credit defaults. With subprime scares spilling into Canada , the Canadian dollar fell against the US dollar for the first time in four days to its most recently quoted price of 1.053.
[I]Equity Markets: S&P/TSX Index[/I]
The S&P/TSX index looked at a second week of declines as the US, Canada?s largest partner in trade, reported lower non-farm payrolls. With the US adding 97 thousand jobs in the month of July, down from 137 thousand, investors feared a weakened US economy will impact foreign trade. Telus Corp. led the decline in Canada?s leading index, falling C$2.62 to C$57.77 after announcing a 29 percent decrease in second quarter profit. The S&P/TSX was most recently quoted down 54.34 points to 13,759.28.
[I]Fixed Income Markets: Canadian Government 10-Year Bond[/I]
Government bonds rose as US non-farm payrolls surprised to the downside, blowing off steam from Canadian business sentiment. Investors pulled their money from equities and moved them to safer investments, fearing a US slowdown could impact trade in Canada. The Canadian 10-year bond was most recently quoted at 96.308, yielding 4.46 percent.
