'Take a chill pill': CIBC to Canadian investors

One of Canada’s top economists says investors ought to “take a chill pill” because the country’s economic picture isn’t “as bad as you’re hearing on the streets.

See Full Article

CIBC World Markets Chief Economist Avery Shenfeld writes that, although growth has slowed in emerging markets like China, Russia and Brazil, and Canadian households are highly indebted, those weaknesses are now outweighed by strengths.

For example, the central Bank of Canada’s biggest trading partner, the U.S. Federal Reserve, hiked interest rates in December, indicating strength there. Shenfeld predicts another U.S. interest rate hike is coming in June.

On top of that, Shenfeld writes that Canada’s federal budget – set for March 22 -- is likely to deliver “a larger fiscal boost than was talked about during the federal campaign.”

“The Liberals had campaigned on $10-billion of stimulus which would roughly translate into a $30-billion deficit, but we’re betting on something larger as the outlook for the economy has dimmed since then.”

Shenfeld added the government has “ample fiscal room to stimulate,” noting our 30 per cent federal debt to GDP ratio is far smaller than it is in the U.K., U.S. and Japan.

The report also notes that the loonie has staged a “decent rebound,” which is “helped by dovish Fed talk and a modest firming in crude oil.”

Canada’s main stock index, the S&P/TSX, has been rallying this week. It was up 100 points on the day, at mid-afternoon. The loonie was also up, approaching 75 cents U.S.



Advertisements

Latest Economic News

  • Asian stocks weaker as failure of U.S. health care reform lingers

    Economic CTV News
    SEOUL, Korea, Republic Of - Asian stocks got off to a weak start on Monday as caution among investors prevailed with lingering doubts about the future policy agenda of the new U.S. administration following the health care reform failure. Source
  • Home buyers and tenants leaving B.C.'s Lower Mainland for smaller towns

    Economic CTV News
    POWELL RIVER, B.C. - David Repa recalls the shock he felt sitting down at a bank after selling his Vancouver business in 2013 and realizing for the first time how much of "a joke" his prospects were of owning a home in the city. Source
  • 'We're all hurting': Calgary arts cut to the bone as corporate funds dry up

    Economic CTV News
    Calgary's performing arts scene has become a casualty of corporate cost-cutting as the city's economic doldrums drag into a third year, prompting organizations to band together to seek more municipal support. The energy sector has long been a stalwart patron of the arts in the white-collar heart of the oilpatch. Source
  • Seattle plant failure triggers major sewage spill

    Economic CTV News
    SEATTLE -- Millions of gallons of raw sewage and untreated runoff have poured into the United States' second-largest estuary since a massive sewage treatment plant experienced equipment failures that forced it to stop fully treating Seattle's waste. Source
  • Leaving airline seatbelt sign on for too long could pose risk: expert

    Economic CTV News
    An airline safety expert says plane crews may be unwittingly compromising flight safety by leaving seatbelt signs on too long. Greg Marshall suggests passengers may not see the need to remain buckled up if the signs remain illuminated during a smooth ride or if no one has explained to fliers what's going on. Source
  • Shoppers computer crash and budget zingers: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    If you've been too busy to follow the consumer news this week, here's our cheat sheet. And you can get the Marketplace newsletter in your inbox every week. What you need to know about the budget Source
  • Will NYC invite the 'Fearless Girl' to stay on Wall Street?

    Economic CTV News
    NEW YORK -- Should the "Fearless Girl" stand up to Wall Street's charging bull forever?Scroll down or click here to vote in our poll of the day NEW YORK -- Should the "Fearless Girl" stand up to Wall Street's charging bull forever? Source
  • Russia says oil production cuts may continue to boost prices

    Economic CTV News
    KUWAIT CITY -- Russia's energy minister says there's "94 per cent" compliance on a six-month oil production cut among OPEC members and non-cartel nations, as well as discussions about continuing the cuts to boost crude prices. Source
  • OPEC, non-cartel nations may extend oil cut another 6 months

    Economic CTV News
    KUWAIT CITY -- OPEC members and non-cartel nations are leaving open the possibility of a six-month extension on a deal to reduce oil production, according to a statement Sunday by a committee of ministers from OPEC and other oil-producing nations. Source
  • Iran imposes sanctions on 15 U.S. companies

    Economic CTV News
    TEHRAN, Iran - Iran has imposed sanctions on 15 American companies over their alleged support for Israel, terrorism and repression in the region. A Foreign Ministry statement carried by the state-run IRNA news agency Sunday said the companies are barred from any agreements with Iranian firms and that former and current directors will not be eligible for visas. Source