Global Scans · Canada · Weekly Summary

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WHAT'S NEXT?: The U.S. and Canada's new governments will have their work cut out dealing with potential changes to their trade agreements while simultaneously Canada will be anxious to implement CETA with the EU.

• Any securities issuable under the LIFE Exemption will not be subject to a hold period in accordance with applicable Canadian securities laws. Sophic Capital
• Despite the challenges of bringing foreign chains to Canada, a new entrant could fill some of the gaps Canadians face when it comes to choice and price. MarketScreener
• If Canada's economy continues to expand, there will be less pressure on the Bank of Canada to lower interest rates. investing.com
• Canada's economy is closely intertwined with its giant southern neighbour and US economic strength has spilled into Canada and could continue to do so into 2024. investing.com
• Some FMIs have the potential to pose systemic risk to Canada's financial system, in that the inability of one participant to meet its obligations to the FMI could, by transmitting financial problems through the FMI, cause other participants to be unable to meet their obligations. Bank of Canada
• Canada and the United States have recently strengthened their pledges by joining a coalition of more than 100 countries committed to making their economies achieve net zero emissions by 2050. Bank of Canada
• $1.5 billion over five years to improve marine safety and responsible shipping, protect Canada's marine environment, and create new opportunities for Indigenous and coastal communities. Transport Canada
• Transport Canada will continue to modernize its marine safety and security regulatory and oversight frameworks by advancing amendments to various regulations. Transport Canada
• Within IG credit, decent levels of spread can be generated across markets such as Australia, the UK and Canada, which creates better yield opportunities than holding long-dated sovereign bonds. Nikko AM Global Site
• An adverse shock to the Canadian economy would make it more difficult for households to service their debt and could also reduce their net worth and their access to credit. Bank of Canada
• The Bank of Canada closely tracks the characteristics of mortgage originations to assess the evolution of household debt vulnerabilities. Bank of Canada
• As age, rot, and climate change threaten transportation infrastructure, Transport Canada is looking for ways to identify and monitor performance issues at early stages. Transport Canada
• Transport Canada will be putting in place a safety campaign to help end unsafe practices in the air-taxi sector. Transport Canada
• Clean electricity is increasingly understood as critical to meeting Canada's climate targets - Canadian Climate Institute modelling has shown that every conceivable pathway to decarbonization will require substantial electrification in virtually every sector of the Canadian economy. Canada's National Observer
• A countering force could come from inflation and the Bank of Canada: If the resulting return of activity occurs too fast and too strong for comfort, whereby upward pressure on prices reintroduces inflationary pressures, the Bank of Canada might consider hiking again. The Globe and Mail
• With the Bank of Canada likely to ease policy ahead of the Fed in 2024, Canada's dollar is expected to trend weaker early in the year limiting the weakening of exports. Deloitte Insights
• As the global economy absorbs the impact of higher interest rates and central banks pivot to an easier policy stance, demand for Canada's exports is expected to recover in the second half of the year after a soft start. Deloitte Insights
• About one-third of Canadian households have a mortgage, and the Bank of Canada's analysis showed that almost half of mortgages will have renewed at higher rates by the end of 2023, climbing to two-thirds by the end of 2024. Deloitte Insights
• The expected grain import shortages from both Ukraine and Russia should support agriculture and the export of all types of grain and food products from both Canada and the United States. International Railway Journal
• The Bank of Canada is expected to keep its policy interest rate steady at 5% for the fourth consecutive time since July. The Globe and Mail
• Tech growth in Canada will lag behind the U.S., as the federal government plans a 3.2% reduction in science and technology budgets for 2024. it World Canada

Last updated: 07 February 2024