Bank of Canada Sr. Dep. Governor Macklem Toronto Speech (Text)
government began a partial shutdown for the first time in 17 years, potentially putting up to 1 million workers on unpaid leave, closing national parks and stalling medical research projects. * Silvio Berlusconi on Monday faced dissent within his People of Freedom Party, complicating his plans to bring down Prime Minister Enrico Letta’s coalition government. * Euro zone factory activity grew for the third month running in September as stronger demand enabled manufacturers to raise prices for the first time since mid-2012, a survey showed. * JPMorgan Chase & Co’s possible $11 billion settlement of government mortgage probes has been complicated by a dispute with the Federal Deposit Insurance Corp over responsibility for losses at the former Washington Mutual Inc, said people familiar with the matter. * Warren Buffett’s Berkshire Hathaway Inc will receive Goldman Sachs Inc stock worth nearly $2.15 billion on Tuesday through warrants acquired as part of a deal originally signed during the depths of the 2008 financial crisis. MARKET SNAPSHOT * Canada stock futures traded up 0.19 percent * U.S. stock futures , , were up around 0.26 percent to 0.29 percent * European shares, were up * Thomson Reuters-Jefferies CRB Index : 285.3334; fell 0.27 percent * Gold futures : $1,317.1; fell 0.71 percent * US crude : $102.21; fell 0.12 percent * Brent crude : $108.04; fell 0.3 percent * LME 3-month copper : $7,215.75; fell 1.18 percent CANADIAN STOCKS TO WATCH * Intact Financial Corp : The property and casualty insurer said it will take catastrophe losses of C$199 million in the third quarter due mainly to a series of bad weather events and a fiery train derailment that devastated the town of Lac-Megantic, Quebec in early July. ANALYSTS’ RECOMMENDATIONS Following is a summary of research actions on Canadian companies reported by Reuters. * Brookfield Office Properties Inc : CIBC cuts to rating sector performer from sector outperformer after Brookfield Property Partners announced a proposal to acquire “any or all” Brookfield Office Properties shares outstanding. * Genivar Inc : Raymond James raises price target to C$30 from C$27 following a slew of positive data points for the company and the engineering services industry. * Niko Resources Ltd : Canaccord Genuity cuts rating to hold from buy and target price to C$6 from C$13.50 on financing concerns which were recently highlighted by the company’s delinquency on rig payments.
This makes productivity particularly hard to predict. But looking ahead, stronger exports should encourage more investment and this, in turn, should increase productivity. As firms fully utilize existing capital, productivity can be expected to rise. And new investment typically embodies new technologies, so as this new investment comes on line, workers will have more and better capital to work with. Better tools help make workers more productive, which should improve our competitiveness. Our product mix The third factor is what we export — our product mix. Here, there are two forces at play, which have been moving in opposite directions. From 2000 to 2007, strong growth in advanced and emerging economies created strong global demand for machinery and equipment and consumer goods . This shift in the composition of global demand did not play to Canadas strengths. Machinery and equipment and consumer goods are a smaller proportion of our exports than in the average world export basket. Commodities, on the other hand, have worked in the other direction.