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Roubini keen on Canada debt Nouriel Roubini, the New York University economist who gained notoriety for predicting the financial crisis, says Canadian government debt will hold haven status along with German and U.S. credit amid the market volatility.
"It is going to be a period of economic and financial fragility," Mr. Roubini told a conference in France yesterday. "The short-term and long-term debt of countries not yet subject to sovereign debt concern will be havens."
Mr. Roubini also projected that global economic growth will slow as government austerity measures kick in, but he does not expect a double dip recession.
He added that the next few months will bring more volatility. "It's a pretty ugly picture," Mr. Roubini said, according to reports. "The macro news from the U.S., Europe, Japan and even China is disappointing. Credit spreads will widen."
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Nickel flat after Vale tentative deal Nickel prices dipped just 0.1 per cent in London today, falling $20 (U.S.) or 0.1 per cent to $18,780 a ton, showing little movement after the tentative settlement to a long and bitter strike against Vale SA in northern Ontario. If union members vote this week to accept the tentative five-year labour contract, the almost year-long dispute will end. The strikebound nickel mines in Sudbury represent about 4 per cent of the global supply.
Related: Vale reaches tentative deal with Sudbury miners
Taseko shares plunge Shares of Taseko Mines Ltd. sank today in the wake of a negative decision by a federal review panel Friday on its $800-million Prosperity copper-gold project in the B.C. interior. The panel ruled that the mine would have "significant adverse environmental effects" in several areas, including fish, grizzly bears and the use of land for traditional purposes by first nations. The environmental review did not assess economic benefits, and it's now up to Prime Minister Stephen Harper to decide if the project goes ahead.
Related: Harper to decide fate of B.C. mine
BP Gulf oil spill costs mount The costs of the Gulf of Mexico oil spill disaster continue to rise. BP PLC said today its costs have now topped $3-billion (U.S.) as it scrambles to try to stop the leak caused by the explosion on the Deepwater Horizon drilling rig in late April. BP's costs include $147-million to settle 47,000 claims. BP shares were climbing today in trading in London.
"Oil company BP is one of the day's biggest risers so far, up by around 2.5 per cent," said IG Index senior sales trader Yusuf Heusen. "This is following on from press reports at the weekend that it is looking for sizeable investors - possibly a sovereign wealth fund - to take a strategic investment in the company and act as a white knight to fend off any unwanted hostile takeover."
Bolstering the speculation were comments from Shokri Ghanem, chairman of Libya's national oil company, who told Dow Jones his country's sovereign wealth fund should invest in BP given the plunge in its stock price since the Gulf troubles began.
Shokri Ghanem, chairman of Libya's Nation Oil Co. said he will recommend buying a stake in BP to the Libyan Investment Authority, or LIA, the North African state's sovereign wealth fund.
"BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the [Libyan Investment Authority]" he said. "It's a good opportunity for bargain hunters."
Read
- BP costs for spill pass $3-billion
- Relief wells under review at NEB
- Gulf seafood's image tainted by spill
- A Canadian solution to the Gulf oil spill
Hot IPO market expected in China China could boast the world's hottest market for initial public offerings this year, projections by PricewaterhouseCoopers indicate. A new forecast suggests 300 new listings this year, compared to 99 in 2009, and proceeds of some 500-billion yuan, or almost $75-billion U.S.
In Canada, PwC said, the value of new issues in the second quarter reached $2.4-billion (Canadian), up sharply from $464.7-million in the first quarter but "short of what could have been a banner quarter when a number of potential new issues were either delayed or withdrawn."
There were 16 new issues in the quarter, similar to the showing in the first three month but up from seven a year earlier.
"The uneven progress of the Canadian IPO market is typical of an early stage recovery, and the recent volatility has compounded the situation," PwC said.
Markets eye Friday jobs report Investors are waiting to see if the labour market in Canada continues to bounce back smartly from the depths of the recession, particularly given the weak showing in the United States on Friday. Job creation has been one of the brighter lights of the recovery, though economists expect growth to slow somewhat. Statistics Canada reports Friday on how the jobs market fared in June. Some comments:
CIBC World Markets: "The turnaround in the Canadian labour market has been stunning to say the least. The average of 31,000 new jobs added per month since August is impressive not just in size but mostly in its composition, with the private sector and full-time occupations accounting for the bulk of the gains. With the economic recovery on firmer ground here, it's difficult to argue against another month of job gains. Our call of 10,000 net new jobs for the month of June reflects the healthy state of the economy while acknowledging that we're still due for a giveback from April's seemingly outsized gains in employment. June's job gains should, nonetheless, leave the unemployment rate steady at 8.1 per cent."
Toronto-Dominion Bank: " The Canadian labour market has had a remarkable run lately, with the economy adding jobs in eight of the last 10 months at an average pace of 30,000 jobs per month. This positive momentum in labour market activity is expected to continue in June when a further 30,000 jobs are expected to be added to Canadian payrolls. This will be the slowest pace of employment growth since the turn of the year, reflecting the moderation in Canadian economic activity in [the second quarter]following the blistering pace of economic growth in the prior two quarters. Employment in the goods-producing sector is expected to decline for the second straight month on account of employment losses in construction and manufacturing industries. All of the job gains are expected to come from the service-producing side of the economy, with a temporary boost expected to come from hiring related to G20 and G7 activities during the month."
BMO Nesbitt Burns: "Canadian employment has been a pillar of strength during the recovery, with almost 310,000 net new jobs added from July 2009 to May of this year, or a healthy 31,000 per month. While the hiring likely continued in June, recent evidence that the Canadian economic recovery is downshifting suggests that the gain could be below the average seen so far during the recovery - we're looking for 13,000 new jobs in June. Since the employment recovery began, the service sector has accounted for about three quarters of the net job creation, with health care (+87,000) and professional services (+73,000) seeing the strongest gains. On the goods side, manufacturing has shed jobs (-12,000) while construction employment has roared (+83,000) on the back of a hot housing market and government stimulus projects."
Related: Job creation still anemic in U.S.
Queen's costs fall amid recession The cost to Britain of the Queen's official duties fell in the latest fiscal year to £38.2-million, a cut of about 12 per cent from a year earlier, Buckingham Palace said today. Sir Alan Reid, the keeper of the privy purse, pointed out that the royal household is "acutely aware of the difficult economic climate" and took action to cut costs. "We are implementing a headcount freeze and reviewing every vacancy," he added.
The accounts, which came as the Queen visits Canada, showed the overall costs were the equivalent of 62 pence per person, down 7 pence. "The annual publication of the royal accounts is usually an occasion for the palace to claim the head of state costs the equivalent of a pint of milk or a loaf of bread for each person in the country - but officials today avoided such comparisons to say that the total cost was the equivalent of 62 pence per head of population," noted The Guardian.
Related: Too-close-for-comfort encounters with the Queen
In picutres: A royal day at the races
From today's Report on Business