Alberta in ‘crisis’ over low oil price: Prime Minister Justin Trudeau

Prime Minister Justin Trudeau says Alberta is in a crisis as the province’s oil is being sold at a discount of about $45 a barrel, but he and some oil company bosses agree there are no easy fixes Ottawa can offer.

“There is no question that folks in Alberta, folks here in Calgary, are living through extremely difficult times. This is very much a crisis,” Trudeau said Thursday, November 22, 2018 following an affordable housing announcement.

“When you have a price differential that’s up around $42, $50 even, that’s a massive challenge to local industry, to the livelihood of a lot of Albertans. I hear that very, very clearly.”

Premier Rachel Notley has said the price gap between Canadian and U.S. crude is costing the Canadian economy $80 million a day.

Hundreds of pro-oil protesters shut down part of the street outside the hotel where Trudeau addressed the Calgary Chamber of Commerce.

Inside, chamber CEO Sandip Lalli grilled Trudeau on what Ottawa intends to do, including possibly investing in moving crude on trains as a stop-gap measure as new market-opening pipelines remain in limbo.

“Currently, the federal government doesn’t have a plan to address the $80 million that’s coming out?” Lalli asked Trudeau in a question-and-answer session.

“You think there’s a super-simple easy answer and there’s not. There’s a multifaceted complex issue and as much as there is a tendency out there in the world to give really simple answers to really complex questions, unfortunately the world doesn’t work like that,” Trudeau replied.

“We need to make sure that we’re moving forward in the right way and that is where actually listening to the experts is sort of the best way to make policy.”

Trudeau said the federal government is doing what it can to get the Trans Mountain pipeline expansion built, which would triple its capacity to carry oil to tankers on the west coast.

The federal government bought Trans Mountain and its expansion project for $4.5 billion last summer only to have the Federal Court of Appeal strike down its approval, citing inadequate Indigenous consultation and failure to consider impacts on marine environment.

Trudeau said the sector should benefit from his government’s announcement Wednesday that companies will be able to immediately write off capital investments.

“The accelerated capital cost allowance doesn’t matter with differentials where they are because nobody’s going to spend any money,” said Canadian Natural Resources Ltd. executive vice-chairman Steve Laut following an energy-boss roundtable with the prime minister.

Laut said Trudeau seemed to appreciate how dire the situation is and was receptive to ideas. But Laut said he’s skeptical a federal investment in crude-by-rail, as the Alberta government has urged, would deliver swift relief.

“I don’t know what more the federal governments can do that companies ourselves can’t do,” Laut said. “Getting (rail) cars is tough to do. It takes time to build these things.”

Alex Pourbaix, CEO of Cenovus Energy Inc., agreed Ottawa’s ability to help narrow the price gap is limited.

“I think the issue that we’ve all been debating is more of a provincial issue,” he said. “It’s very tough for the federal government to solve that one for us.”

‘A giant step forward’: new $10 bill featuring Viola Desmond to enter circulation

Wanda Robson still finds it hard to believe that her big sister is the new face of the $10 bill _ and the first Canadian woman to be featured on a regularly circulating banknote.

The sister of the late Nova Scotia civil rights pioneer and businesswoman Viola Desmond, Robson said the move to include a black woman on the bill is a “giant step forward” in continuing Desmond’s work toward equality.

In an interview, she said she has difficulty putting her excitement into words.

“I’m so grateful and I’m happy,” said Robson, who turns 92 next month. “Those are sort of mundane words, but I’m looking for a word that would describe it, and all I can say is what the kids say today: it’s awesome!”

Robson will make the first purchase with the new bill during a ceremony Monday at the Canadian Museum for Human Rights in Winnipeg, where Bank of Canada governor Stephen Poloz and museum president John Young will officially launch the banknote.

For her first purchase, Robson plans to buy a book co-written by her and Cape Breton University professor Graham Reynolds about Desmond’s life and legacy, and give it to her 12-year-old granddaughter so she can learn more about her great-aunt’s story.

Robson said her granddaughter has shown a longtime interest in Desmond, despite being born decades after her death in 1965.

“She said, ‘You know nan, when I get my first ten dollar bill with aunt Viola on it, I’m going to frame it, and put it on a wall, and never, ever spend it,”’ Robson said.

On Nov. 8, 1946, Desmond was arrested after refusing to leave a whites-only section of the Roseland Theatre in New Glasgow, N.S., in an incident that has since become one of the most high-profile cases of racial discrimination in Canadian history.

It would take 63 years for Nova Scotia to issue Desmond a posthumous apology and pardon.

Robson has spent years educating children and adults alike about how her sister’s case helped shine a light on Canada’s burgeoning civil rights movement.

She said the new bill’s national circulation will lead to even more awareness about Desmond’s story, and the wider issue of racial discrimination in Canada.

“It’s a giant step forward into knowledge about who we are, where we’ve been, and where we’re going,” she said. “There’s still a lot of work to be done, and I really hope that this bill will get not only children, but adults, to say, ‘who is that?’ And then people will be able to pass on what Viola did and the amazing differences she made.”

Desmond was selected to be on the bill after an open call for nominations and a public opinion survey on the Bank of Canada website.

Behind her portrait, the banknote also shows a map of Halifax’s historic north end, home to one of Canada’s oldest black communities and the area where Desmond grew up.

The map includes the stretch of Gottingen Street, where Desmond opened a salon as part of a business that would eventually expand into her own line of cosmetics and a beauty school, which allowed her to mentor black women from across the country.

In recognition of the bill launch, Halifax’s North End Business Association is hosting “Celebrate Viola,” a multi-day event from Wednesday, November 21, 2018 to Sunday, November 24, 2018 that will feature a roundtable discussion about the civil rights movement, an original musical about Desmond’s life, and a tribute concert.

The bill is the first vertically oriented banknote in Canada, and also includes a picture of the Canadian Museum for Human Rights, an excerpt from the Canadian Charter of Rights and Freedoms, and an eagle feather, which the Bank of Canada said represents the “ongoing journey toward recognizing rights and freedoms for Indigenous Peoples in Canada.”

Desmond has received numerous posthumous accolades, including having a Halifax Transit ferry named after her and receiving a star on Canada’s Walk of Fame.

The Millenni-factors: Wealthy Millennials have the will to change the world

A generational shift in attitude is underway when it comes to making a difference, with a majority of affluent Millennials determined to leave their mark on the future. According to a recent TD survey of high-net-worth Canadians, 77 per cent of Millennial respondents believe it’s important to leave a legacy, compared to only 33 per cent of Boomers and 42 per cent of Gen Xers.

These Millenni-factors – wealthy Millennial benefactors – feel they have a duty to leave a legacy (63 per cent). The survey also indicates that other generations of high-net-worth individuals, including Boomers and Gen Xers, are less likely to report the same feelings.

“We are definitely seeing significant changes in attitudes towards leaving a legacy. High-net-worth Millennials stand out among other demographics for their heightened desire to positively impact the world,” says Jo-Anne Ryan, Vice President, Philanthropic Advisory Services at TD Wealth. “This trend indicates that the philanthropic giving landscape in Canada will be reshaped in the years to come, as these Millenni-factors look for ways to put their assets to work to change the world for the better.”

According to the survey, the top three reasons wealthy Millennials may leave all, or part, of their estate to a charitable organization include:

  1. They believe the organization has good intentions (36 per cent)
  2. They support the organization’s mission (34 per cent)
  3. They have a personal connection to the organization (26 per cent)

Although the survey reveals that the majority of Millennial respondents polled have the desire to make a positive difference in the world, it also indicates that half (49 per cent) of them don’t have a will and less than a third have a will that is up to date (31 per cent).

“It doesn’t matter how good your intentions are, if you don’t have a will, they may never come to fruition,” adds Ryan. “For Millennials, and indeed all Canadians who have yet to make a will, it’s never too early for estate planning. The same goes for those who have a will that is not up to date. It is always recommended that you review your will at 3-5-year intervals, or whenever a significant life change takes place.”

For Canadians interested in leaving some or all of their estate to charity, TD offers the following tips:

  • Where There’s a Will…
    – If you haven’t done so before, now may be the time to make a will. A will can help give you control over how your assets will be divided, shaping what your charitable legacy can be. If you are like many high-net-worth Millennials, making a lasting difference is important. A financial advisor can help you maximize the value of charitable donations.
  • When Tomorrow Comes
    – As you assess your options about which organization to leave a bequest, it’s important to think about the causes and charities that matter to you. You may also want to consider how relevant these causes will continue to be in the world of tomorrow. No one can predict the future, but you should spend some time thinking about which long-term change is most important to you.
  • Heir Transparent
    – Talk to your heirs, or those who may assume they will be receiving an inheritance from you. It’s important that you set the expectation that you may be leaving some or all of your estate to a charitable cause. This can help avoid conflict and gives you the opportunity to tell them about the charity(ies) you have chosen and why you believe in its (their) mission.
  • Succession Success
    – If you are an entrepreneur, your business may be part of the legacy you leave behind. In fact, according to the TD survey, only 44 per cent of Canadian company owners, with more than $100,000 in investable assets, have a formalized succession plan for their business. As your business is tied to a reputation you’ve worked hard to maintain, developing a succession plan may help ensure that any future owners of the business continue to live up to your values and philosophies.

About the TD Millenni-factor Survey
TD Bank Group commissioned Environics Research Group to conduct a custom survey of 6,021 Canadians aged 18 and older, which included 593 Canadians with $500K+ in investable assets and 310 Canadian business owners with $100K in investable assets. Responses were collected between February 20 and March 1, 2018.

About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by branches and serves more than 25 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in TD Ameritrade; and Wholesale Banking, including TD Securities. TD also ranks among the world’s leading online financial services firms, with approximately 12 million active online and mobile customers. TD had CDN$1.3 trillion in assets on July 31, 2018. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.

SOURCE TD Bank Group

Text of Bank of Canada interest rate announcement

OTTAWA _ The Bank of Canada raised its key interest rate target Wednesday. Here’s the text of the central bank’s announcement:

The Bank of Canada today increased its target for the overnight rate to 1.75 per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1.5 per cent.

The global economic outlook remains solid. The US economy is especially robust and is expected to moderate over the projection horizon, as forecast in the Bank’s July Monetary Policy Report (MPR). The new US-Mexico-Canada Agreement (USMCA) will reduce trade policy uncertainty in North America, which has been an important curb on business confidence and investment. However, trade conflict, particularly between the United States and China, is weighing on global growth and commodity prices. Financial market volatility has resurfaced and some emerging markets are under stress but, overall, global financial conditions remain accommodative.

The Canadian economy continues to operate close to its potential and the composition of growth is more balanced. Despite some quarterly fluctuations, growth is expected to average about 2 per cent over the second half of 2018. Real GDP is projected to grow by 2.1 per cent this year and next before slowing to 1.9 per cent in 2020.

The projections for business investment and exports have been revised up, reflecting the USMCA and the recently-approved liquid natural gas project in British Columbia. Still, investment and exports will be dampened by the recent decline in commodity prices, as well as ongoing competitiveness challenges and limited transportation capacity. The Bank will be monitoring the extent to which the USMCA leads to more confidence and business investment in Canada.

Household spending is expected to continue growing at a healthy pace, underpinned by solid employment income growth. Households are adjusting their spending as expected in response to higher interest rates and housing market policies. In this context, household credit growth continues to moderate and housing activity across Canada is stabilizing. As a result, household vulnerabilities are edging lower in a number of respects, although they remain elevated.

CPI inflation dropped to 2.2 per cent in September, in large part because the summer spike in airfares was reversed. Other temporary factors pushing up inflation, such as past increases in gasoline prices and minimum wages, should fade in early 2019. Inflation is then expected to remain close to the 2 per cent target through the end of 2020. The Bank’s core measures of inflation all remain around 2 per cent, consistent with an economy that is operating at capacity. Wage growth remains moderate, although it is projected to pick up in the coming quarters, consistent with the Bank’s latest Business Outlook Survey.

Given all of these factors, Governing Council agrees that the policy interest rate will need to rise to a neutral stance to achieve the inflation target. In determining the appropriate pace of rate increases, Governing Council will continue to take into account how the economy is adjusting to higher interest rates, given the elevated level of household debt. In addition, we will pay close attention to global trade policy developments and their implications for the inflation outlook.

Information note

The next scheduled date for announcing the overnight rate target is December 5, 2018. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on January 9, 2019.

Survey: Paying With Taps And Apps Leaves Some Feeling Disconnected From Their Money

With mobile apps on your smartphone, and tap-and-go debit and credit cards, it’s never been faster or easier to pay for things. This has led to some of us feeling disconnected from our money, according to new research commissioned by MARU in partnership with Tangerine Bank.

“Apps and taps for payment are becoming such a way of life that some Canadians feel they’re not as strongly connected to their money,” said Mark Nicholson, Vice President of Client Experience at Tangerine. “One in five (20 per cent) of our survey respondents, feel that way. And on top of the lost connection to money, a large majority of Canadians with a bank account – 71 per cent – wish they could save more money each month, and almost half (47 per cent) say they’re worried about their financial future.”

Younger Canadians are especially concerned, with 70 per cent of those age 18-24 saying they’re worried about their financial future (compared to a 46 per cent average for all other age groups). Thirty per cent of younger respondents, age 18-24, say they’re unsure that they’ll be able to pay off their debts, versus just 17.5 per cent among other age groups.

Among some of the other findings, the national survey found that only 37 per cent set a budget every month and stick to it. When asked where their monthly spending goes, respondents listed phone, internet, TV, transportation, utilities and rent as part of their monthly spending.

To help Canadians focus on saving and keep better track of their spending, Tangerine has introduced two new features on its mobile app and online banking: Goals and Left to SpendGoals lets users establish one or multiple savings priorities, like a vacation or a new car, set up regular contributions, and provides real-time updates on progress being made. Left to Spend monitors regular expenses like rent or mortgage payments, car payments, insurance etc., and calculates how much disposable income you have “left to spend” in each month or pay period.

“Debt remains an issue, with loan and debt payments taking the third largest chunk of monthly spending (20 per cent), after rent or mortgage payments and other types of spending such as groceries. So we think it’s more important than ever to offer features like Goals and Left to Spend to help Canadians better keep track of their everyday spending to help with their long term financial goals,” said Nicholson.

The survey found almost three-quarters of Canadians (71 per cent) use online banking to track their spending, with almost one-third (27 per cent) using mobile banking apps.

“Information is power, especially when it comes to managing spending and achieving savings goals,” said Brenda Rideout, President and CEO. “While technology makes it easier to spend than ever before, it also empowers Canadians to manage their money. These new features are designed to make it easier for Tangerine Clients to keep fully up to date on spending and saving.”

On a positive note, the survey found that Canadians are finding ways to save. According to the survey, four in ten Canadians save money most months, with a similar number saying they save money every single month. Typical monthly savings are up to $250, with retirement, emergencies and vacations making up the top three things Canadians are saving for.

ABOUT THE SURVEY
From August 31st to September 4th 2018 Maru/Blue executed an online survey of 1,000 randomly selected Canadian adults with an active bank account who are Maru Voice Canada panelists. Among them were respondents in the following age groups: 18-24 (n=33), 25-34 (n=222), 35-44 (n=176), 45-54 (n=233), and 55+ (n=336). For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 3%, 19 times out of 20. Discrepancies in or between totals are due to rounding.

ABOUT TANGERINE BANK
Tangerine is a direct bank that delivers simplified everyday banking to Canadians. With over 2 million Clients and close to $38 billion in total assets, we are Canada’s leading direct bank. Tangerine offers banking that is flexible and accessible, products and services that are innovative, fair fees, and award-winning Client service. From no-fee daily chequing and high-interest savings accounts, a Credit Card, GICs, RSPs, TFSAs, mortgages and mutual funds through its subsidiary, Tangerine Investment Funds Ltd., Tangerine has the everyday banking products Canadians need. With over 1,000 employees in Canada, our presence extends beyond our website and Mobile Banking app to our Café locations, Pop-Up locations, Kiosks and 24/7 Contact Centres. Tangerine was launched as ING DIRECT Canada in 1997. In 2012 it was acquired by Scotiabank, and operates independently as a wholly-owned subsidiary.

Tangerine was recently selected as ‘Best of Show’ winner at the 2018 Finovate Fall Conference for their Left to Spend and Goals features. Finovate brings together more than 1,200 financial services professionals, investors and Fintech enthusiasts to celebrate the cream of the crop in the Fintech world.

SOURCE Tangerine

 

Alterna offers emergency loans to Ottawa and Gatineau residents affected by tornadoes

Alterna Savings is offering emergency interest-free loans to their members affected by the tornadoes that took place in the Ottawa and Gatineau regions on Friday, September 21st. Alterna has also donated$50,000 to the Red Cross and hopes that other local businesses will be inspired to give generously.

“Extreme weather, like the two tornadoes that touched down in Ottawa and Gatineau, have been devastating and left others in hardship. We know that when disasters strike, not everyone has access to ready cash to handle the immediate expenses of either repairing damage to their homes or replacing homes completely torn from their foundation,” said Rob Paterson, President and CEO of Alterna. “To help, members can access up to $5,000 in credit if they need financial assistance right away and can take advantage of the first 90 days without interest. After 90 days, a low-interest base rate will apply on terms of 2-5 years, with the option to pre-pay at any time without penalty. Interested applicants will need to visit a branch to review terms and conditions before signing.”

“It can take some time for insurance to pay out, and not all homeowners even have home insurance that covers damage resulting from tornadoes and other extreme weather. The 90-day interest-free grace period gives people time to make financial arrangements,” said Paterson.

Alterna Savings has a strong history of helping members and communities at a grassroots level – a legacy which began over 110 years ago when Alterna became Ontario’s first credit union. Recent examples include providing support for federal employees impacted by Phoenix payroll issues and creating emergency loans for residents affected by the 2017 Ontario and Quebec spring floods.

“It’s about helping to support our communities, and we’re here to help”, says Paterson. “With many homes left in ruins, we are particularly concerned about what people need today in order to feel safe. Even if someone isn’t an Alterna member, we’re happy to talk.”

Those affected by the Ottawa and Gatineau tornadoes are encouraged to call 1-877-560-0100 to set up an appointment at one of the Alterna branches and to confirm branch availability. Alterna Savings serves communities across Ontario and in the Gatineau region of Quebec.

You can find a list of branches at Alterna.ca.

About the Alterna Financial Group

The Alterna Financial Group (Alterna) is celebrating 110 years of being the good in banking! Alterna is made up of Alterna Savings and Credit Union Limited and its wholly-owned subsidiary, Alterna Bank. Together, we have over $7.13 billion in assets under administration. Our members and customers benefit from industry leading online brokerage and investment management services and have access to the largest surcharge-free ATM network in Canada, with over 3,700 ATMs to serve them.

Alterna Savings has been charting new directions to help Ontarians and achieve their financial dreams and build strong, vibrant communities for more than a century. As the first full-service, member-owned co-operative financial institution outside Quebec, Alterna Savings shares our expertise with more than 158,000 members through a network of 32 credit union branches across Ontario, including our federated partner Peterborough Community Savings, a division of Alterna Savings and Credit Union Ltd.

Alterna Bank is one of the most innovative banks in Canada and the first to offer all Canadians an end-to-end digital mortgage experience. Customers also get fully-digital financial services that include our highly competitive high-interest eChequing, eSavings, RRSP and TFSA products available online and through mobile banking.

For more information please visit www.alterna.ca and www.alternabank.ca and connect with us on https://twitter.com/alternasavings.

SOURCE Alterna Savings and Credit Union

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