David Dodge: “we are shooting ourselves in the foot”
- David Dodge, past Governor of the Bank of Canada, says there are currently two issues: “One, we in Canada have been shooting ourselves in the foot. Number two, the world outside is changing and creating a number of uncertainties for investment in Canada, both public and private investment.”
- Dodge warns that Canada is losing ground when it comes to global competitiveness.
- Regulatory uncertainty and U.S. tax cuts are deterring investments into Canada.
- Suncor CEO Steve Williams said Canada is no longer a good place to invest and warned that regulatory confusion has led to an “exodus” of big energy players from Canada’s oil sands.
- Canada’s real GDP rose 0.4% in February M/M, vs 0.3% estimate, largest increase since May 2017.
- Alberta’s GDP grew 4.9% Y/Y, fastest expansion among the provinces.
- BC expanded by 3.9%, fastest since 2005. ON rose 2.8% in 2017.
- BoC Governor Stephen Poloz expects the nation’s high household debt levels will persist, reiterating that rates will continue to rise.
- Realtors say cannabis cultivation inside houses may cause mold, fungus, and property damage.
- Members of the Senate’s Aboriginal Peoples Committee recommend holding back on legalizing cannabis for up to a year to address harmful effects on Indigenous communities.
- In 2017, 5 million Canadian’s aged 15-64 spent close to $6 billion on cannabis (medical and non-medical use), around $1,200/person.
- Highest per capita consumption was 27.1 grams in NS, 24.6 in BC, 24.1 in AB.
U.S. employment data
- U.S. added 164,000 jobs in April vs 193,000 expected.
- Unemployment rate 3.9% vs 4.1% (first time below 4% since December 2000).
- Average hourly earnings up 2.6% Y/Y vs 2.7% expected.
- AB currently needs between 100,000 to 300,000 bpd of new pipeline space.
- AB has oil rail terminal loading capacity of about 600,000 bpd and is currently shipping about 100,000 bpd due to rail backlog.
- Gasoline prices in Vancouver reached $1.62/ltr ($4.77/gallon), highest in North America.
- Vancouverites pay more than any other major oil-producing country except Norway.
- Russia’s crude shipments to Europe were down 19% in 2018 Y/Y to 1.86 million bpd, offset by increase in shipments to China by 43% in Q1 to 750,000 bpd.
- Whistler’s benchmark property prices surpassed those of Vancouver, making it Canada’s craziest housing market. Townhouse $1 million, detached $1.67 million.
- India has joined the U.S. and China as one of the world’s top 5 biggest military spenders.
- Federal Reserve officials left interest rates unchanged, acknowledging inflation is close to target.
- Kraft Heinz Co. is issuing a limited number of digital tokens called Bacoins exchangeable for the company’s bacon. A Bacoin is traded for 11 slices of bacon.
- Facebook unveils its plan to add a dating service, which is built with privacy in mind.
- Iran has the technical capability to enrich uranium to a higher level than it could before the multinational nuclear deal was reached.