Canadian exporters such as West Fraser Timber Co. are climbing as the central bank’s surprise interest rate reduction weakened the currency, giving the companies an immediate boost while underscoring the deepening risk from the oil-price crash.
While the cut highlighted concerns about the nation’s economic outlook, the benchmark Standard & Poor’s/TSX Composite Index climbed 1.8% yesterday partly on the prospect that a lower Canadian dollar would help companies that price their goods in U.S. dollars. The index rose another 0.6% by 9:38 a.m. on Thursday.
Canada’s stagnating economy could force its central bank to deploy the type of extraordinary stimulus adopted in the U.S., Europe and Japan, according to BlackRock Inc., the world’s biggest money manager.
With a commodity prices collapse that probably sent the country into recession in the first half showing no signs of letting up, the Bank of Canada may need to follow its developed-nation peers with quantitative easing, according to Aubrey Basdeo, BlackRock’s head of Canadian fixed-income.
OTTAWA — It has been just over a year since Benoit Daignault took the reins at Export Development Canada (EDC), the federal agency charged with helping companies fund and expand into new markets.
While much has changed in that time — a domestic economy now struggling to kick-start growth in the midst of an oil-price collapse — the impetus to expand into new markets, not just the United States, must still come from corporate leaders themselves.
It may only be a small country, but the UK is home to some of the biggest YouTubers in the world. From superstar vloggers like Zoella, to superstar singers like Adele, there are a huge amount of Brits with millions of YouTube subscribers whose videos have been viewed — in some cases — billions of times.
Brian Robbins, CEO of automotive and industrial supplier Exco Technologies Ltd., is feeling confident about expanding his company’s business.
Within the last month, Exco has spent more than $20-million opening new facilities in Thailand and Brazil, with another new plant planned for Texas and some “cautious” investment in Canada, Mr. Robbins said. He said there’s solid U.S. demand for Exco’s products and he’s confident the American economy is only going to get better.
The benefit of a weaker currency is beginning to spread through corporate Canada.
Companies such as CGI Group Inc. and DHX Media Ltd., which sell services abroad designed by workers in Canada, are emerging as big winners from the currency’s almost 30 per cent decline in the past three years. Forestry, autos and manufacturing are also getting a lift as they win market share with cheaper products.
While Ottawa agreed in Budget 2013 to extend tax breaks for manufacturers for two years, a request by developers of liquefied natural gas terminals on Canada’s West Coast to receive similar tax savings fell on deaf ears.
Before they start crying foul that the West’s energy industry is being shortchanged relative to the Eastern-based manufacturing sector, developers of the new projects should be reminded that their ask showed poor judgment in the first place.
TORONTO • Limited Brands Inc. investors will find out Wednesday if closing a third of La Senza’s stores over the past year has helped to boost the flagging lingerie chain’s productivity.
But in Canada, retail veterans are more curious about whether Columbus, Ohio-based Limited’s end game is to wind down the once-thriving Canadian banner in favour of its former-U.S. rival-turned-corporate sibling, Victoria’s Secret.
OTTAWA — What’s plaguing corporate Canada?
In recent weeks, Canadian businesses — sitting on historically massive cash reserves — have been under fire for using temporary foreign workers or unpaid interns, and chided by political leaders for failing to raise wages or invest in employee training.
They’ve been maligned even by the traditionally business-friendly Fraser Institute for collecting billions of dollars in so-called corporate welfare for decades.