Winners and losers across Canada as loonie takes a nosedive

CALGARY -- The loonie fell below the 70-cent U.S. mark Tuesday for the first time in 13 years. In its wake, the rapidly dropping dollar is leaving a roster of winners and losers in Canada.

See Full Article

Here's a look at who is benefiting -- and who is hurting:

Winner: The film industry. Hollywood North, whether it be Vancouver, Toronto, or some of the up-and-coming markets like Calgary, is booming. Peter Leitch, president of North Shore Studios and chairman of the Motion Picture Production Industry Association of B.C., says American studios are increasingly heading to Canada to take advantage of the low dollar.

"That does make Canada one of the top choices of places to come to," said Leitch. "A few years ago when it was at par, it was quite a challenge to attract business."

He said the boost to the film industry is helping fill some of the gaps from the resource sector.

"It's a great alternative when other parts of the economy are struggling. I mean, we're hiring people from the oil and gas industry to help rig some of our sets."

Loser: Snowbirds. Canadians planning their winter escape to the southern U.S. will be feeling the pinch as their money won't stretch as far. Travellers are likely to cut back their trips and spend less while enjoying the warmer climes.

Winner: The cattle industry. Canada exported about $1.5 billion in beef products to the U.S. last year. Brian Perillat, senior analyst at cattle market research outfit Canfax, says the high U.S. dollar has helped keep Canadian beef prices up even as the U.S. market has started to retreat.

"As the (Canadian) dollar goes down, it certainly helps our prices relative to the U.S.," said Perillat.

"Basically every time the loonie drops a cent, on average our calf prices go up about five cents a pound, holding all other things consistent."

Loser: Pro sports teams. If you think buying a pair of shoes in the U.S. hurts, try signing a multimillion-dollar contract with an NHL, NBA or Major League Baseball star.

Winner: Tourism. Canada's tourist hotspots are getting a boost from Americans heading north of the border as well as Canadians opting to take so-called staycations.

"We've got a lot of drive traffic coming across the border," said Sarah Morden, a spokeswoman for B.C. ski resort Whistler Blackcomb. "It's just kind of a no-brainer really. We're not that far from Washington state and we've got great snow and a low Canadian dollar."

The Conference Board of Canada says overnight travel from the U.S. increased about seven per cent last year and is expected to rise another 3.3 per cent this year.

Loser: Consumers. Be prepared to pay more for anything imported, including food. The University of Guelph's Food Institute estimates the average Canadian household spent an additional $325 on food in 2015 and is expected see an additional increase of about $345 this year because of the low dollar.

Winner: The mining sector. Vancouver mining company Teck Resources credits the low Canadian dollar for helping the company weather the downturn in commodity prices, with the company able to sell its copper and coal at U.S. prices while pay operating costs in Canadian.



Advertisements

Latest Economic News

  • U.S. economic growth weakened to 0.7 per cent in first quarter

    Economic CBC News
    The U.S. economy turned in the weakest performance in three years in the January-March quarter as consumers sharply slowed their spending. The result underscores the challenge facing President Donald Trump in achieving his ambitious economic growth targets. Source
  • Trump tower fated not to rise in Indonesian isle of the gods

    Economic CTV News
    TANAH LOT, Indonesia -- Thousands of people flock daily to the centuries-old, sacred Hindu temple at Tanah Lot, a rock formation that juts into the Indian Ocean. An island at high tide and flanked by sheer cliffs, it's among Bali's most photographed sites, particularly for the mesmerizing sunsets that transform the waters into a shimmering orange vista. Source
  • Exxon's 1Q profit more than doubles on higher oil prices

    Economic CTV News
    IRVING, Texas -- Exxon more than doubled its profit in the first quarter as rising crude prices magnified the cost cuts made by the company as energy prices tumbled. The Irving, Texas, company earned $4.01 billion, or 95 cents per share, for the three month period, up from $1.81 billion, or 43 cents per share, a year earlier. Source
  • Imperial Oil reports $333M Q1 earnings, raises dividend to 16 cents

    Economic CTV News
    CALGARY - Imperial Oil (TSX:IMO) is reporting first-quarter earnings that reversed a loss in the same period of last year but fell short of analyst expectations. The Calgary-based oil producer and refiner says net income was $333 million or 39 cents per share in the three months ended March 31, boosted by a gain of $151 million on the sale of former refinery lands in Mississauga, Ont. Source
  • Home Capital director quits, citing potential conflict

    Economic CTV News
    TORONTO -- The chief executive of HOOPP has resigned as a director of Home Capital Group and its subsidiaries, citing a potential conflict of interest following the pension fund's decision to provide $2 billion of credit to the mortgage company. Source
  • German airlines to scrap requirement for 2 people in cockpit

    Economic CTV News
    BERLIN -- Germany's aviation association says the country's airlines have decide to scrap rules requiring two people in the cockpit at the same time, implemented after a Germanwings pilot is believed to have crashed his own plane in France two years ago. Source
  • Apple cuts off payments, Qualcomm slashes expectations

    Economic CTV News
    NEW YORK -- Qualcomm slashed its profit expectations Friday by as much as a third after saying that Apple is refusing to pay royalties on technology used in the iPhone. Its shares hit a low for 2017. Source
  • Canadian GDP flat in February after hot start to 2017

    Economic CTV News
    OTTAWA - Canadian economic growth took a pause in February after the break-neck pace seen at the start the year. Statistics Canada says gross domestic product was unchanged in February. The result matched the expectations of economists, according to Thomson Reuters. Source
  • Trump seeks to expand offshore drilling

    Economic CTV News
    WASHINGTON -- Working to dismantle his predecessor's environmental legacy, U.S. President Donald Trump plans to sign an executive order Friday that could lead to the expansion of drilling in the Arctic and Atlantic oceans. With one day left to rack up accomplishments before he reaches his 100th day in office, Trump will order his interior secretary to review an Obama-era plan that dictates which locations are open to offshore drilling, with the goal of the new administration to expand…
  • Trump signs order to expand ocean oil drilling

    Economic CTV News
    U.S. President Donald Trump has signed an executive order that will roll back restrictions on oil drilling in the Arctic. Trump says at a White House signing ceremony, "Today, we're unleashing American energy and clearing the way for thousands and thousands of high-paying energy jobs. Source