U.S.

What U.S. government shutdown means for GDP, markets

Update on Jan. 22, 2018, at 2 p.m.: A Senate agreement has reopened the U.S. federal government. The U.S. government has been shut down since midnight on Friday—and that could negatively affect growth in Q1, says TD senior economist Leslie Preston in a weekly economics report. The last 16-day shutdown lowered real GDP by 0.3 […]

By Staff, with files from The Associated Press |January 22, 2018

2 min read

Industry

Goldman Sachs posts nearly US$2B loss from new tax law

Goldman Sachs posted a US$1.93-billion loss in the fourth quarter, the investment bank said Wednesday, as the bank had to record more than US$4 billion in charges related to the new tax law. It was the bank’s first quarterly loss in more than six years. (All figures are in U.S. dollars.) Goldman had a net […]

By Ken Sweet, The Associated Press |January 17, 2018

2 min read

Market Insights

Where to watch U.S. corporates

If you’re looking for U.S. tax cuts to contribute to market outperformance, you might be disappointed, as valuations are already high. Read: U.S. tax changes and market valuations See how Trump’s tax bill has affected two big banks Still, taking a close look at how tax changes affect U.S. corporates could pay off. “Investors need […]

By Staff |January 17, 2018

2 min read

Economic Indicators

Time to short the potentially volatile loonie, report says

Expect the Canadian dollar to fall back to mid-70-cent range

By Staff |January 15, 2018

2 min read

Strong business sentiment supports January rate hike

Business sentiment remains positive, reveals the Bank of Canada’s business outlook survey (BOS), and that supports the potential for a rate hike next week. Read: Rates to rise starting next week: big five banks The BOS indicator, which summarizes the main survey responses, has almost returned to its summer peak. “In particular, strong expected input […]

By Staff |January 8, 2018

4 min read

Expect growth until late 2020: Desjardins

The economic cycle is long in the tooth, but growth in Canada and the U.S. should remain strong until 2020, forecasts Desjardins in an outlook report. The bank forecasts strong growth in 2018 and 2019, but, thereafter, “there will be greater risk of an economic slowdown as the current cycle matures.” The result: monetary tightening […]

By Staff |December 18, 2017

2 min read

5 economic trends to watch in 2018

BMO economists confidently offer the following five trends to watch in 2018—”confidently” because the economists scored eight out of 10 on their forecasts and stretch calls for 2017. The five trends are listed below, as itemized by BMO chief economist Douglas Porter in an economics report. 1. Alberta bonds will outperform. The province had the […]

By Staff |December 18, 2017

2 min read

How U.S. tax reform threatens Canadian corporates

The new year is expected to bring tax relief to American businesses. And that’s bad news for business north of the border. For tax rates, “the American system will go from being much more punitive to closer in line with Canada’s—likely a bit below for non-energy companies [and] higher for oil and gas producers,” says […]

By Staff |December 14, 2017

2 min read