News: Canadian Headlines

The USDCAD fell today after the Canadian dollar reached a three week low yesterday of 92.94 US cents. The CAD rebounded as sentiment of interest rate hikes moved from the FED to the BoC.


Catalyst Asset Management proposed a stock-swap for BCE Inc. Incentives offered by Catalyst included keeping BCE Inc. under Canadian ownership and leaving its headquarters in Montreal. As part of their deal, Catalyst would give common shares and subordinated debt securities of Bidco, a venture company created by Catalyst, to BCE shareholders. Catalyst?s offer came as Telus Corp. continued talks of a takeover with its rival company.
http://www.cbc.ca/money/story/2007/06/22/catalystbce.html
[I]Source: CBC[/I]
RBC predicts Canadian economic expansion would hold steady through the rest of the year, but that growth would begin to moderate at the beginning of 2008. They forecasted that "[while] overall economic growth will remain robust, the trade sector will continue to weigh on growth as the strong Canadian dollar boosts imports and restrains exports."
http://www.canada.com/nationalpost/financialpost/story.html?id=207e5c47-a9d3-4b1e-9081-203e99393129&k=98354
[I]Source: Financial Post[/I]
TSX opened lower this morning as talks over what could be Canada?s biggest buyouts continued. Negotiations of acquisitions of companies Alcan Inc. and BCE Inc. continued, leading the S&P/TSX down over 20 points.
http://www.bloomberg.com/apps/news?pid=20601082&sid=aTRLI2az9j1I&refer=canada
[I]Source: Bloomberg[/I]
[B]Currency[/B]
The USDCAD fell today after the Canadian dollar reached a three week low yesterday of 92.94 US cents. The CAD rebounded as sentiment of interest rate hikes moved from the FED to the BoC. Interest rate futures see a relatively small chance of a rate hike come July, though there is far greater speculation of a boost a few months down the line. The USDCAD was most recently quoted down at 1.067.


[B]Equity
[/B]The Toronto Stock Exchange?s main index dipped 100 points amid weakening commodities and credit scares in the US. The energy sector fell 1.1% and the raw-materials sector fell 0.8%, dragging the index along with them. The TSX index was driven down together with the US?s Dow Jones Industrial Index by sub-prime credit scares and high US Treasury bond yields. The S&P/TSX was most recently quoted down 159.91 points at 13,935.82.


[B]Fixed Income[/B]
The 10-yr yield rose today as there was still strong speculation that the Bank of Canada will raise interest rates to control their above target inflation rate. The higher yield drove the price of the 10-yr down, leaving it at its most recently quoted price of 95.085. The benchmark 2-yr Canadian bond began to conform to the US equivalent benchmark as their spread thinned to 26 basis points, raising the 2-yr bond?s appeal.