With Japan's public debt about to hit 240% of GDP, Fitch Downgrades Japan's Sovereign Rating
The ratings agency Fitch on Tuesday lowered its assessment of Japan’s sovereign credit to A+, an investment grade just above the likes of Spain and Italy, and criticized Tokyo for not doing more to pare down its burgeoning debt.
OTTAWA — Finance Minister Joe Oliver warned Wednesday the global economy “is fragile” and Canada needs to “stay the course” of lowering taxes.
“Economic and markets volatility in China as well as the debt crisis in Greece further demonstrate that now, more than ever, we must stay the course” for Canada’s economy, he said in a speech Wednesday in Toronto.
“Let me be clear, with greater global economic instability at our shores, Canada must continue with our plan to grow the economy through lower taxes.”
OTTAWA — The risk of a major crisis in Canada’s financial system, and the impact of it would have on all aspects of our economy, doesn’t appear to be getting any bigger — but it’s not getting much better ether.
The Bank of Canada, in what it hails as “an enhanced framework” for gauging the stability of the banking sector, said Thursday that Canada remains robust but still faces “significant vulnerabilities.”
OTTAWA — Where’s the recession?
Like finding Waldo, a lot depends on who’s doing the looking and what they’re looking for. Some can see “red” across the board. For others, nothing seems to jump out and catch their eye — game over.
Since the start of 2015, Canada’s economy has been in a “now-you-see it, now-maybe-you-don’t” recession pattern, with seemingly contradictory data from one week to the next.
Last week, National Bank's Peter Routledge did some “back of the envelope" calculations and determined that Chinese buyers might well have accounted for one-third of all real estate purchased in Vancouver during 2015. Here’s how he came to that rather startling conclusion:
It is only fitting that the next business day following a headline that "Global Futures Slide China Tumbles On Short Selling Boost" we would see China, in an apparent panic, not only cut its RRR by 100 bps to 18.5% - far more than expected and the most since 2008 - but, more importantly, hinted that the Friday regulatory decision to encourage short sales and tighter margin rules on "umbrella trusts" was in no way meant to pop that the Chinese stock bubb
WASHINGTON — Just as the global economy has all but recovered from debt-fueled crises in the United States and Europe, economists have a new worry: China. They see a lending bubble there that threatens global growth unless Beijing defuses it.
That’s the view that emerges from an Associated Press survey this month of 30 economists. Still, the economists remain optimistic that Beijing’s high-stakes drive to reform its economy — the world’s second-largest — will bolster Chinese banks, ease the lending bubble and benefit U.S. exporters in the long run.
Canada struggled in 2013, with its economy lagging the U.S. and Canadian stock returns being among the worst in the developed world. On Monday, the National Post, in partnership with the Canadian Club of Toronto, held its 37th Annual Outlook luncheon to discuss what’s in store for Canada and the global economy in 2014. Some 550 attendees came out to hear a panel that included four senior columnists and editors of the National Post and the Financial Post and Warren Jestin, senior vice president and chief economist of Scotiabank.