Press Digest-canada-sept 23

Canada PM says Merkel win ‘a great victory’

Atlanta Fed President Dennis Lockhart , a backer of bond purchases who also spoke in New York, warned of slowing job creation. The central bank on Sept. 18 unexpectedly maintained the $85 billion in monthly asset purchases it uses to encourage growth and cap borrowing costs. Repositioning Markets Within this brave new world, Canada probably does better until the Fed blinks, Brad Schruder a director of foreign exchange at Bank of Montreal, said by phone from Toronto. Despite retail sales being a decent number to watch for economic activity, I think the Canadian data isnt really what youre keying off of. Youre keying off a unified message from the Fed officials this week and a repositioning of global markets. Traders are trimming bets the Bank of Canada will raise interest rates next year, suggesting policy makers may follow their counterparts at the Fed in lowering growth forecasts as a slower U.S. expansion threatens to delay a long-awaited export boost. Rate Expectations The yield on March 2014 bankers acceptances contracts, a gauge of short-term interest rate expectations, fell to a four-month low of 1.28 percent. Fed Chairman Ben S. Bernanke cited worse-than-expected economic indicators for prompting officials last week to lower forecasts for the year and refrain from slowing monetary stimulus. Overnight index swaps shows traders are pricing in about six basis points in tightening by July, down from 20 the day before the Fed meeting. Implied volatility for three-month options on Canadas dollar versus its U.S. counterpart rose to 6.27 percent, from 6.13 percent last week, the lowest point in four months. The measure is used to set option prices and gauge the expected pace of currency swings. The average for this year is 6.8 percent.

“I want to congratulate Angela Merkel. It’s a great victory,” Harper said during a joint press conference with visiting Italian Prime Minister Enrico Letta. The Canadian prime minister noted that he and Merkel are the only two leaders of the Group of Seven industrialized nations who are still in office after sweeping to power in the mid-2000s. “Her victory is a strong personal victory and really an historic one,” Harper said, “And I look forward to speaking to Angela in the next few hours to congratulate her personally.” It was Merkel and her conservative Christian Democrats’ third consecutive election win. Letta at the end of a two-day official visit to Canada repeated an earlier statement calling the defeat of Germany’s upstart anti-euro party AfD a win for Europe. “The success of an anti-euro party in Germany would have been a catastrophe for Europe and Italy and, for global cooperation,” he said. “That didn’t happen and that’s a very good thing.” During his visit, Lette discussed with Harper the economy and trade, notably ongoing Canada-EU free trade talks. Italy is Canada’s 10th largest trading partner. Lette told reporters Italy must push privatization, as it looks to attract more foreign investment. He also invited Harper to visit his country in the first half of next year.

Canada Dollar Gains First Time in Three Days Before Retail Sales

Reuters has not verified these stories and does not vouch for their accuracy. THE GLOBE AND MAIL * Canada has bolstered diplomatic security and issued warnings to visitors in Kenya after the bloody hostage-taking in Nairobi. “At current, we’re obviously still on high alert for our diplomatic staff and we’re going to take every reasonable measure we can to secure their safety,” Canada’s foreign minister, John Baird, said on Sunday in Toronto at an unrelated appearance. () * With suburban growth around rail lines a “reality,” it’s up to provinces, municipalities and railways to make sure busy crossings are safe, Canada’s federal transport minister, Lisa Raitt, says. Looming federal regulations for level or at-grade crossings are meant to help local governments and railway companies strike deals on building improved rail crossings where they see fit, but Raitt says regulations won’t give Ottawa a bigger role. () * The Progressive Conservatives have prepared a proposal for Ontario’s Liberal government that would see at least eight new laws passed this fall – a bid to seize control of the province’s policy agenda in the buildup to an election expected next year. The Tories will offer to help fast-track several of Premier Kathleen Wynne’s bills, plus at least three of their own, party sources told the Globe and Mail on Sunday. () Reports in the business section: * BlackBerry Ltd’s latest business plan follows the same handbook used by scores of distressed companies before it. The strategy: simplify the business, drop certain product lines and cut costs mercilessly. * The Oregon coast could play a key role in helping to get Western Canada’s vast natural gas reserves out of the ground and on to ships destined for Asian countries that need it. At least two companies, Oregon LNG and Calgary-based Veresen Inc , are proposing to build liquefied natural gas terminals in Oregon for which Canadian natural gas would be the primary supply source.

Canada records second rout of FIBA Americas tournament, beating Chile 93-51

Shona Thorburn added 18 points, while Justine Colley finished with 16. Gaucher (formerly Kim Smith) also had a team-high six rebounds and three steals. The Canadians, who cruised by Jamaica 75-37 in their opener on Sunday, are tied with Cuba atop Group A. They had their way with Chile on Tuesday, racing out to a 28-10 lead after one quarter and taking a 49-19 advantage into the dressing room at halftime. Canada led 66-41 with a quarter left to play. Chile, with previous losses to Venezuela and Cuba, dropped to 0-3 on the tournament. The Canadians face Venezuela on Tuesday, and then wrap up round-robin play versus Cuba on Wednesday. Canada needs to finish in the top three in order to qualify for the 2014 FIBA world championship. The Canadian women have appeared in the previous two world tournaments, in 2006 and 2010. Sports & Recreation WASHINGTON (AP) House Republicans are far less ambitious this week in their demands for spending cuts to erase new debt issued to pay the government’s bills than they were during a budget battle two years ago. Associated Press QINGDAO, China (AP) China’s richest man plans to spend 50 billion yuan ($8.2 billion) to build the country’s version of Hollywood in the northeastern city of Qingdao. Associated Press